FY 2020

Annual Financial Report

National Government

Volume I
EXECUTIVE SUMMARY
 EXECUTIVE SUMMARY

Legal Framework

The Commission on Audit (COA) prepares the Annual Financial Report (AFR) for the National
Government (NG) in compliance with its mandate under the 1987 Philippine Constitution and
Presidential Decree (P.D.) No. 1445, otherwise known as the Government Auditing Code of
the Philippines.

Section 4, Article IX-D of the 1987 Philippine Constitution states that the COA shall submit to
the President and the Congress, within the time fixed by law, an annual report covering the
financial condition and operation of the Government, its subdivisions, agencies, and
instrumentalities, including government-owned or controlled corporations, and non-
governmental entities subject to its audit, and recommend measures necessary to improve their
effectiveness and efficiency. It shall submit such other reports as may be required by law.

Section 41 (1) of P.D. No. 1445 also requires the Commission to submit the annual financial
report on the financial condition and results of operation of all agencies of the government
which shall include recommendations of measures necessary to improve the efficiency and
effectiveness of these agencies.

The Government Accountancy Office of the Government Accountancy Sector (GAS) prepares
the AFR for the NG. The Report follows the International Public Sector Accounting Standards
reporting framework as adopted under COA Resolution No. 2014-003 dated January 24, 2014
and COA Resolution No. 2017-006 dated April 26, 2017.

The financial statements (FSs) were prepared based on COA Circular No. 2020-001 dated
January 8, 2020 prescribing the Revised Chart of Accounts (Updated 2019).

Objectives

This AFR provides essential information on the financial position, financial performance,
changes in net assets/equity, cash flows, and comparison of budget and actual amounts of
NGAs. It also provides information on appropriations, allotments, obligations, disbursements,
unreleased appropriations, and unobligated balances, as well as the summary of the results of
audit, specifically audit opinions on the fairness of presentation of the FSs and significant audit
recommendations on economy, efficiency, and effectiveness of operation of NGAs.

The financial information serves as useful tool for the President, as overall head of the
government; the Congress, in the promulgation of laws and in performing its oversight function
in the budget process; other oversight government agencies; and heads of agencies, for sound
decision towards efficient and effective utilization of government resources, and delivery of
services to the public.

The AFR also caters to the information needs of the public, in consonance with the fiscal policy
of improved transparency and public accountability.

i
Contents

The AFR is composed of two volumes. Volume I is composed of the following parts:

Part Particulars
I Financial Highlights
II Appropriations, Allotments, Obligations, Disbursements, and Balances
(including Off-Budgetary Funds)
III Current Surplus of the National Government
IV Financial Statements
V National Government Debt
VI Summary of Audit Opinions
VII Significant and Common Audit Observations and Recommendations
VIII Consolidated Audit Observations on Gender and Development

Volume II presents the detailed FSs of the NG by department, including pertinent supporting
schedules by agency.

Financial Highlights

The aggregate amount of the NG’s assets, liabilities and net assets/equity for FY 2020
amounted to P7.296 trillion, P10.529 trillion, and negative P3.234 trillion, respectively. In
comparison with FY 2019 balances, total assets increased by P1.134 trillion or 18.40 percent,
total liabilities increased by P2.096 trillion or 24.86 percent, and the negative balance of net
assets/equity decreased by P962.69 billion or 42.39 percent.

For FY 2020, total revenue of the NG amounted to P2.848 trillion, posting a decrease of
P360.79 billion or 11.24 percent from FY 2019 of P3.208 trillion. Total current operating
expenses of P3.611 trillion increased by P575.16 billion or 18.95 percent compared to previous
year’s amount of P3.036 trillion, resulting in a deficit from current operations of P763.37
billion. A net deficit of P667.74 billion was realized after adding the net financial
assistance/subsidy from/(to) NGAs and financial assistance from LGUs and GOCCs of P6.33
billion, other non-operating income of P131.61 billion, and losses of P42.31 billion to the
deficit from current operations of P763.37 billion. The net deficit of P667.74 billion registered
a decrease in surplus of P971.52 billion compared to the surplus of P303.77 billion in FY 2019.

Net cash provided by financing activities in FY 2020 amounted to P1.795 trillion while net
cash used in operating and investing activities amounted to P486.95 billion and P540.15 billion,
respectively, resulting in a net increase in cash and cash equivalents of P768.29 billion. After
adding the negative effects of exchange rate changes of P15.47 billion and the beginning
balance of P691.59 billion, the cash and cash equivalents of the NG at the end of FY 2020
amounted to P1.444 trillion.

For FY 2020, the final targeted receipts of P5.893 trillion increased by P958.50 billion
compared to the original targeted receipts of P4.934 trillion. However, actual receipts of P5.573
trillion was lower by P319.74 billion than the final targeted receipts of P5.893 trillion.

The final budgeted payments of P5.116 trillion increased by P1.209 trillion from the original
budgeted payments of P3.907 trillion. Actual payments of P4.311 trillion was lower by P804.94
billion than the final budgeted payments of P5.116 trillion.

ii
Appropriations, Allotments, Obligations, Disbursements, and Balances

For FY 2020, the NG had total appropriations of P5.379 trillion; total allotments of P5.089
trillion, leaving an unreleased appropriations of P289.08 billion. Of the total allotments, P9.74
million was to cover prior year’s overdraft. The obligations incurred totaled P4.872 trillion, of
which P19.07 billion was not covered by allotments. Disbursements reported totaled P4.316
trillion, leaving unpaid obligations of P556.67 billion.

For foreign-assisted projects (FAPs) the appropriations and allotments posted at P117.32
billion and P93.04 billion, respectively. The total appropriations was funded from loan
proceeds of P88.25 billion and the government counterpart of P29.07 billion.

For COVID-19 response, the NG appropriated P601.83 billion and released allotments of
P505.90 billion, leaving an unreleased appropriations of P95.96 billion. Obligations incurred
totaled P460.08 billion, of which P406.00 billion was disbursed thus, leaving unpaid
obligations of P54.08 billion.

Off-Budgetary Funds

These funds represent collections of agencies authorized by law and deposited in government
depository banks and are used for expenditures which are not part of the National Expenditure
Program. For FY 2020, it has a total approved budget of P76.75 billion and total utilizations of
P47.90 billion, of which P38.13 billion was disbursed thus, leaving an unutilized budget of
P28.85 billion, and unpaid utilizations of P9.76 billion.

Current Surplus

For FY 2020, the net balance of the Current Surplus of the NG of P2.082 trillion consists of
the Unappropriated Surplus of P2.129 trillion and overdraft in allotments of P46.87 billion.

National Government Debt

At December 31, 2020, the outstanding balance of the NG debt totaled P9.797 trillion
composed of domestic borrowings of P6.697 trillion or 68.35 percent, and foreign borrowings
of P3.100 trillion or 31.65 percent. Domestic borrowings increased by P1.567 trillion or 30.56
percent compared to the FY 2019 amount of P5.129 trillion due to the floatation of Treasury
Bonds with maturity periods of 3, 5, 7, 10, and 20 years and issuance of Treasury Bills. Foreign
borrowings increased by P487.07 billion or 18.64 percent over the previous year’s P2.613
trillion.

Financial Statements

The combined FSs presented in this Report were taken from the FY 2020 and restated FY 2019
FSs of 317 NGAs and the Special Account in the General Fund (SAGF) maintained by 6 GCs
namely: Cultural Center of the Philippines (CCP), National Tobacco Administration (NTA),
Philippine Coconut Authority (PCA), Philippine Rice Research Institute (PRRI), Tourism
Promotions Board (TPB), and Development Bank of the Philippines (DBP).

Not included in this Report are the FSs of the Bangsamoro Autonomous Region in Muslim
Mindanao (BARMM), which received an allotment of P3.76 billion from Special Purpose Fund

iii
– Pension and Gratuity Fund of current year’s appropriations and unobligated continuing
appropriations of P5.52 billion. The AFR for Local Government included the FSs of BARMM
pursuant to R. A. No. 11054 dated July 27, 2018, “An Act Providing for the Organic Law for
the Bangsamoro Autonomous Region in Muslim Mindanao, Repealing for the Purpose
Republic Act No. 6734, Entitled "An Act Providing for An Organic Act for the Autonomous
Region in Muslim Mindanao," As Amended by R.A. No. 9054, Entitled "An Act to Strengthen
and Expand the Organic Act for the Autonomous Region in Muslim Mindanao."

This Report presents consolidated FSs for all funds, as the audited FSs of the NGAs were
presented as consolidated for all funds.

Summary of Audit Opinions, and Significant and Common Audit

Observations and Recommendations

This Report includes a summary of the results of audit conducted on each NGA. Specifically,
it presents a summary of audit opinions on the FSs, and significant and common audit
observations and corresponding audit recommendations, including those pertaining to the audit
of gender and development, towards efficient and effective operations of the NGAs. The audit
opinion rendered on the fairness of presentation of the FSs of each NGA was a representation
and responsibility of the auditor concerned.

Methodology

The data on appropriations, allotments, obligations, disbursements, and balances were based
on the quarterly Statements of Appropriations, Allotments, Obligations, Disbursements, and
Balances (SAAODB) (FAR No. 1) submitted by 316 NGAs and seven GCs that received
allotments from the NG or maintaining SAGF, namely: CCP, NTA, PCA, PRRI, TPB, Land
Bank of the Philippines and DBP.

The appropriations, allotments, and unreleased appropriations contained in FAR No. 1 were
reconciled with the Registry of Appropriations and Allotments maintained per agency by COA,
and with the FY 2020 appropriations, allotment releases, and balances posted in the Department
of Budget and Management (DBM) website. Discrepancies noted were communicated with the
DBM and/or agencies concerned.

Obligations incurred by the NGAs and GCs were analyzed to determine whether such were
duly covered by allotments. Overdrafts in allotments noted and the corresponding
disbursements were confirmed with the budget officers and accountants, and communicated to
COA auditors of agencies concerned. Disbursements were also analyzed to determine whether
these were within the amount obligated.

The data on off-budgetary funds were based on the quarterly Statements of Approved Budget,
Utilizations, Disbursements, and Balances (FAR No. 2) submitted by 148 NGAs which were
authorized to maintain Retained Income Funds and Revolving Funds. Utilizations by the
NGAs were analyzed to determine whether such were duly covered by approved budget and in
compliant with the authorization granted. Disbursements were also analyzed to determine
whether these were within the amount utilized. Discrepancies noted were communicated with
the agencies concerned.

iv
The Statement of Current Surplus was based on the SAAODB, and the quarterly Report of
Revenue and Other Receipts (FAR No. 5). Revenue/income collected, which are not authorized
to be used are reviewed whether remitted to the Bureau of the Treasury (BTr). Discrepancies
noted for actual revenue collected and remitted to the BTr were communicated with the
agencies concerned.

The NG Debts were based on the review and analysis of the following reports submitted by the
BTr Debt Monitoring and Analysis Division (DMAD): (a) Status Reports of Guaranteed
External Debt Securities; (b) Status Reports of Guaranteed External Loans; (c) Status Reports
of NG Direct External Loans; (d) Schedule of Commitment Fees; (e) Summary of NG Debt
Service Expenditures; (f) Monthly Detail of Growth of NG Assumed Domestic Liabilities; and
(g) Monthly Detail of Growth of NG Direct and Guaranteed Liabilities – Other Domestic.
Discrepancies noted were communicated with the BTr-DMAD.

Financial information were obtained from the FSs of 317 NGAs and 6 GCs maintaining SAGF.
There were three additions, two for the NGAs namely: National Commission of Senior
Citizens, and Philippine Space Agency under the Executive Offices; and one GC, the DBP
under the Department of Finance. However, there were two reductions due to the integration
of the FSs of the abolished Pasig River Rehabilitation Commission with the Department of
Environment and Natural Resources, and of the BARMM with the local government.

Trial Balances (TBs) and FSs were submitted by the agencies to the COA-GAS through the
Annual Financial Reporting System (AFRS), a web-based application system to facilitate
online submission of the Pre-Closing Trial Balances, FSs, and Statement of Management’s
Responsibility for Financial Statements. In addition, the agencies submitted printed and/or
electronic copies of their TBs and FSs. The COA-GAS analyzed the individual FSs and
reconciled them with the audited FSs, reconciled the budgetary information with the DBM,
verified deficiencies noted with agencies concerned, and prepared the consolidated FSs by
department and for the entire NG. Intra-agency and inter-agency accounts, to a great extent,
were eliminated based on the combined FSs of the NGAs.

All amounts presented in this Report are expressed in Philippine peso, rounded off to the
nearest thousands, unless otherwise stated. The difference between the totals and sum of
components presented in the tables is due to rounding off.

Guide to Users

For enhanced financial reporting and greater transparency, the electronic copy of this Report
as well as the complete details of the notes to FSs, and the audit opinions, audit observations
and recommendations presented in the individual Annual Audit Reports on the NGAs are
published in the COA website (http://www.coa.gov.ph).

v
 TABLE OF CONTENTS
VOLUME I

Part Particulars Page

I FINANCIAL HIGHLIGHTS
 Financial Position 1
 Financial Performance 7
 Changes in Net Assets/Equity 11
 Cash Flows 11
 Comparison of Budget and Actual Amounts 12

II APPROPRIATIONS, ALLOTMENTS, OBLIGATIONS,

DISBURSEMENTS AND BALANCES
 Budget for Fiscal Year 2020 14
 Appropriations, Allotments, Obligations, and Disbursements for FY 2020 15
 Appropriations 16
 Allotments 20
 Unreleased Appropriations 25
 Obligations 30
 Overdraft in Allotments 31
 Unobligated Allotments 34
 Disbursements 36
 Unpaid Obligations 37
 Appropriations and Allotments for Foreign-Assisted Projects 39
 Coronavirus Disease 2019 (COVID-19) Response 42
 Off-Budgetary Funds 52

III CURRENT SURPLUS OF THE NATIONAL GOVERNMENT 60

IV FINANCIAL STATEMENTS
 Statement of Financial Position - FY 2020 and FY 2019 Restated 63
 Statement of Financial Performance - FY 2020 and FY 2019 Restated 64
 Statement of Cash Flows - FY 2020 and FY 2019 Restated 65
 Statement of Changes in Net Assets/Equity – FY 2020 and FY 2019 Restated 66
 Statement of Comparison of Budget and Actual Amounts 67
 Notes to Financial Statements 68

V NATIONAL GOVERNMENT DEBT 192

 TABLE OF CONTENTS
VOLUME I

Part Particulars Page

VI SUMMARY OF AUDIT OPINIONS 199

VII SIGNIFICANT AND COMMON AUDIT OBSERVATIONS AND

RECOMMENDATIONS 269

VIII CONSOLIDATED AUDIT OBSERVATIONS ON GENDER AND

DEVELOPMENT 423

IX ANNEX 442
 LIST OF TABLES
Table
Particulars Page
No.

I.A.1 Comparative Current Assets, FYs 2020 and 2019 2

I.A.2 Comparative Non-Current Assets, FYs 2020 and 2019 4

I.A.3 Comparative Current Liabilities, FYs 2020 and 2019 5

I.A.4 Comparative Non-Current Liabilities, FYs 2020 and 2019 6

I.A.5 Comparative Net Assets/Equity, FYs 2020 and 2019 6

I.A.6 Comparative Components of Net Assets/Equity, FYs 2020

and 2019 6

I.B.1 Comparative Financial Performance, FYs 2020 and 2019 7

I.B.2 Comparative Composition of Tax Revenue, FYs 2020 and

2019 8

I.B.3 Comparative Composition of Non-Tax Revenue,

FYs 2020 and 2019 9

I.B.4 Comparative Current Operating Expenses,

FYs 2020 and 2019 10

I.B.5 Comparative Assistance/Subsidy From (To) NGAs and

Assistance from LGUs and GOCCs, FYs 2020 and 2019 10

I.C.1 Changes in Net Assets/Equity, FY 2020 11

I.E.1 Comparison of Budget and Actual Amounts, FY 2020 13

II.1 Annual Budget, FYs 2011-2020 14

II-2 Comparative Appropriations, Allotments, Obligations,

Disbursements and Balances, FYs 2020 and 2019 15

II-3 Transfers to Pooled Balances, by Source, FY 2020 17

II-4 Status of Release of Pooled Balances, By Source, FY 2020 17

II-5 Comparative Appropriations by Source, FYs 2020 and 2019 18

II-6 Appropriations of Top Ten Departments/Offices, FY 2020 20

II-7 Comparative Allotments by Source, FYs 2020 and 2019 21

II-8 Allotments from Special Purpose Fund by Source, FY 2020 22

 LIST OF TABLES
Table
Particulars Page
No.

II-9 Allotment Releases for Government Corporations, by

Purpose for FY 2020 23

II-10 Top Ten Departments/Offices with Highest Allotments,

FY 2020 25

II-11 Unreleased Appropriations by Source, by Allotment Class,

FY 2020 26

II-12 Unreleased Appropriations from Special Purpose Funds,

by Source, by Allotment Class, FY 2020 27

II-13 Top Ten Departments/Offices with Highest Unreleased

Appropriations, FY 2020 28

II-14 Comparative Unreleased Appropriations by Source,

FYs 2020 and 2019 29

II-15 Comparative Obligations, by Source, FYs 2020 and 2019 31

II-16 Top Ten Departments/Offices with Highest Obligations,

FY 2020 31

II-17 Departments/Office with Overdraft in Allotments, FY 2020 32

II-18 Unobligated Allotments by Source, by Class, FY 2020 34

II-19 Comparative Unobligated Allotments, by Source, FYs 2020

and 2019 35

II-20 Top Ten Departments/Offices with Unobligated Allotments,

FY 2020 36

II-21 Disbursement by Allotment Class, by Source, FY 2020 37

II-22 Disbursement of Top Ten Departments/Offices, FY 2020 37

II-23 Unpaid Obligations by Source, by Class, FY 2020 38

II-24 Top Ten Department/Office Unpaid Obligations, FY 2020 39

II-25 Appropriations for Foreign-Assisted Projects, by

Department/Office, by Source, by Allotment Class, FY 2020 40

II-26 Allotments for Foreign-Assisted Projects, by

Department/Office, by Source, by Allotment Class, FY 2020 41
 LIST OF TABLES
Table
Particulars Page
No.

II-27 Unreleased Appropriations for Foreign-Assisted Projects, by

Department/Office, by Source, by Allotment Class, FY 2020 42

II-28 Sources of the New General Appropriations and Continuing

Appropriations, FY 2020 43

II-29 Detailed Funding for COVID-19 Response by Source, by

Allotment Class, FY 2020 43

II-30 Transfers to Pooled Balances, by Source, by Allotment

Class, FY 2020 44

II-31 Unreleased and Unobligated Appropriations Transferred to

Pooled Balances, by Department/Office/Special Purpose
Fund, by Appropriation Act, FY 2020 45

II-32 Additional Appropriations for COVID 19 Response Sourced

from Unobligated ASB, by Source, by Department/Office,
by Allotment Class, FY 2020 46

II-33 Appropriations, Allotments, Obligations and Disbursements,

by Source, by Allotment Class, FY 2020 47

II-34 Status of Pooled Balances, by Source, by Allotment Class,

FY 2020 48

II-35 Appropriations, Allotments, Obligations and Disbursements,

by Department/Office, FY 2020 50

II-36 Unobligated Allotments by Department/Office, FY 2020 51

II-37 Unpaid Obligations, by Department/Office, FY 2020 52

II-38 Approved Budget, Utilizations, Disbursements,

Unutilized Budget, and Unpaid Utilizations, by Source,
FY 2020 53

II-39 Approved Budget, by Source, by Department/Office,

by Expense Classification, FY 2020 54

II-40 Utilizations, by Source, by Department/Office, by Expense

Classification, FY 2020 55

II-41 Disbursements, by Source, by Department/Office, by

Expense Classification, FY 2020 57

II-42 Unutilized Budget, by Source, by Department/Office,

FY 2020 58
 LIST OF TABLES
Table
Particulars Page
No.

II-43 Unpaid Utilizations, by Source, by Department/Office,

FY 2020 59

III.1 Current Surplus of the National Government, FY 2020 61

V-1 Outstanding Balances of NG Debt, FY 2011 - FY 2020 193

V-2 Comparative Outstanding Balances of National Government

Debt, FYs 2020 and 2019 193

V-3 Comparative Domestic Debt Availments and Issuances,

FYs 2020 and 2019 194

V-4 Comparative Foreign Debt Availments, FYs 2020 and 2019 195

V-5 Comparative Domestic Debt Repayments and Redemptions,

FYs 2020 and 2019 196

V-6 Comparative Foreign Debt Repayments, FYs 2020 and 2019 196

V-7 Comparative Other Debt Service Expenditures of the

National Government, FYs 2020 and 2019 197

V-8 Commitment Fees by Department/Office, FY 2020 and

FY 2019 197
 LIST OF CHARTS

Chart
Particulars Page
No.

I.A.1 Comparative Financial Position, FYs 2020 and 2019 1

I.A.2 Composition of Current Assets, FY 2020 2

I.A.3 Composition of Non-Current Assets, FY 2020 3

I.A.4 Composition of Current Liabilities, FY 2020 5

I.B.1 Comparative Total Revenue, FYs 2020 and 2019 8

I.D.1 Comparative Cash Flows, by Activity, FYs 2020 and 2019 12

II-1 Trend Analysis of Appropriations, Allotments and

Obligations, FYs 2011-2020 16

II-2 Comparative Appropriations by Allotment Class, FYs 2020

and 2019 19

II-3 Comparative Allotments by Class, FYs 2020 and 2019 21

II-4 Comparative Obligations, by Allotment Class, FYs 2020

and 2019 30

II-5 Appropriations, Allotments, Obligations, Disbursements and

Balances, FY 2020 42

II-6 Approved Budget, by Expense Classification, FY 2020 53

II-7 Utilizations, by Expense Classification, FY 2020 55

II-8 Disbursements, by Expense Classification, FY 2020 56

V-1 NG Debt Growth, FY 2011 – FY 2020 192

LIST OF ACRONYMS
 LIST OF ACRONYMS

Acronym Particulars
ADA Advice to Debit Account
AFP-CES Armed Forces of the Philippines-Commissary and Exchange
Services
AFR Annual Financial Report
AGDBs Authorized Government Depository Banks
ALGU Assistance to Local Government Units
APT Asset Privatization Trust
ARAAOD Annual Report on Appropriations, Allotments, Obligations
and Disbursements
ARF Agrarian Reform Fund
ASB Agency Specific Budget
BARMM Bangsamoro Autonomous Region in Muslim Mindanao
BFAR Bureau of Fisheries and Aquatic Resources
BFARs Budget and Financial Accountability Reports
BFP Bureau of Fire Protection
BHOA Bayanihan to Heal as One Act
BI Bureau of Immigration
BIR Bureau of Internal Revenue
BOC Bureau of Customs
BOI Board of Investments
BSF Bond Sinking Fund
BSGC Budgetary Support to Government Corporations
BSP Banko Sentral ng Pilipinas
BTr Bureau of the Treasury
CB-BOL Central Bank-Board of Liquidators
CHED Commission on Higher Education
CO Capital Outlay
COA Commission on Audit
COR Cash Operations Report
COVID Corona Virus Disease
CSO Civil Society Organization
CTA Court of Tax Appeals
DA Department of Agriculture
DBP Development Bank of the Philippines
DENR Department of Environment and Natural Resources
DepEd Department of Education
DFA Department of Foreign Affairs
DICT Department of Information and Communications
Technology
DILG Department of the Interior and Local Government
DND Department of National Defense
DOE Department of Energy
 LIST OF ACRONYMS

Acronym Particulars
DOF Department of Finance
DOH Department of Health
DOJ Department of Justice
DOLE Department of Labor and Employment
DOTr Department of Transportation
DPWH Department of Public Works and Highways
DSWD Department of Social Welfare and Development
DTI Department of Trade and Industry
EO Executive Order
ERC Energy Regulatory Commission
FAPs Foreign Assisted Projects
FAR Financial Accountability Report
FinEx Financial Expenses
Forex Foreign Exchange
FY Fiscal Year
GAA General Appropriations Act
GARO General Allotment Release Order
GCs Government Corporations
GFIs Government Financial Institutions
GHQ-AFP General Headquarters-Armed Forces of the Philippines
GOCCs Government Owned or Controlled Corporations
GSIS Government Service Insurance System
IBRD International Bank for Reconstruction and Development
IPO Intellectual Property Office
IRA Internal Revenue Allotment
LBP Land Bank of the Philippines
LGUs Local Government Units
LRA Land Registration Authority
MAF Modification Adjustment Form
MDFO Municipal Development Fund Office
MDS Modified Disbursement System
MGSB Mines and Geoscience Bureau
MIGA Multilateral Investment Guarantee Agency
MMDA Metropolitan Manila Development Authority
MOOE Maintenance and Other Operating Expenses
MPBF Miscellaneous Personnel Benefits Fund
NBC National Budget Circular
NBDB National Book Development Board
NBI National Bureau of Investigation
NCCA National Commission for Culture and the Arts
NDC National Development Company
 LIST OF ACRONYMS

Acronym Particulars
NDRRMF National Disaster Risk Reduction and Management Fund
NEDA National Economic and Development Authority
NG National Government
NGAs National Government Agencies
NGCS National Government Collection System
NGDS National Government Disbursement System
NGOs Non-Government Organizations
NHA National Housing Authority
NPO National Printing Office
NTC National Telecommunications Commission
OEO Other Executive Offices
OP Office of the President
OSEC Office of the Secretary
OWWA Overseas Workers Welfare Administration
PA Philippine Army
PAF Philippine Air Force
PAGCOR Philippine Amusement and Gaming Corporation
PCC Philippine Carabao Center
PCGG Presidential Commission on Good Government
PCOO Presidential Communications Operations Office
PCSO Philippine Charity Sweepstakes Office
PET Presidential Electoral Tribunal
PhilHealth Philippine Health Insurance Corporation
Philvocs Philippine Institute of Volcanology and Seismology
PMO Privatization and Management Office
PN Philippine Navy
PNB Philippine National Bank
PNP Philippine National Police
PNCC Philippine National Construction Corporation
POEA Philippine Overseas Employment Administration
PPE Property, Plant and Equipment
PRA Philippine Reclamation Authority
PS Personnel Services
PSA Philippine Statistics Authority
PUP Polytechnic University of the Philippines
PVAO Philippine Veterans Affairs Office
R.A. Republic Act
RAOD Registry of Allotments, Obligations and Disbursements
RAPAL Registry of Appropriations and Allotments
RATSPF Registry of Appropriations and Transfers for Special
Purpose Funds
 LIST OF ACRONYMS

Acronym Particulars
RDFB Registry of Domestic and Foreign Borrowings
RFU Regional Field Unit
ROA Registry of Overdraft in Allotments
ROPA Real and Other Properties Acquired
ROW Right of Way
RR Registry of Revenue
SAAB Statements of Appropriations, Allotments and Balances
SAAODB Statement of Appropriations, Allotments, Obligations,
Disbursements and Balances
SAGF Special Account in the General Fund
SARO Special Allotment Release Order
SCBAA Statement of Comparison of Budget and Actual Amounts
SCF Statement of Cash Flows
SCNA/E Statement of Change in Net Assets/Equity
SCP Supreme Court of the Philippines
SEC Securities and Exchange Commission
SFPer Statement of Financial Performance
SFPos Statement of Financial Position
SGF Special Guaranty Fund
SPF Special Purpose Fund
SSF Securities Stabilization Fund
SSP Sariling Sikap Program
SUCs State Universities and Colleges
T-Bills Treasury Bills
T-Bonds Treasury Bonds
TESDA Technical Education and Skills Development Authority
TOP Treasurer of the Philippines
TRA Tax Remittance Advice
TUP Technological University of the Philippines
UP University of the Philippines
UPS University of the Philippines System
VMMC Veterans Memorial Medical Center
 PART I
FINANCIAL
HIGHLIGHTS
 PART I – FINANCIAL HIGHLIGHTS

A. FINANCIAL POSITION
The Statement of Financial Position (SFPos) shows the assets and liabilities, classified as
current and non-current, and the net assets/equity of the National Government (NG).

The total assets and liabilities of the NG as at December 31, 2020 posted at P7.296 trillion and
P10.529 trillion, respectively, resulting in a negative net assets/equity of P3.233 trillion.
Compared to FY 2019, total assets increased by P1.134 trillion or 18.40 percent, liabilities
increased by P2.097 trillion or 24.86 percent, and negative net assets/equity decreased by
P962.69 billion or 42.39 percent. Chart I.A.1 shows the comparative financial position of the
NG as at December 31, 2020 and December 31, 2019.

Chart I.A.1 Comparative Financial Position

FYs 2020 and 2019
(in billion pesos)

₱7,295.58
ASSETS
₱6,161.75

₱10,529.46
LIABILITIES
₱8,432.95

(₱3,233.88)
NET ASSETS
(₱2,271.20)

(4,000.00) (2,000.00) 0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00

as at December 31, 2020 as at December 31, 2019

ASSETS – P7.296 trillion

Total assets of P7.296 trillion is composed of current assets of P2.162 trillion and non-current
assets of P5.133 trillion.

Current Assets – P2.162 trillion

Current assets of P2.162 trillion comprised 29.64 percent of the total assets. It increased by
P847.70 billion or 64.48 percent from the previous year total of P1.315 trillion. The increase
in current assets was a result of the increments in all its components: cash and cash equivalents
– P632.39 billion or more than 194 times, investments – P52.65 billion or 62.01 percent,
receivables – P87.57 billion or 9.19 percent, inventories – P51.86 billion or 45.66 percent, and
other current assets – P23.23 billion or 13.94 percent. Table I.A.1 shows the comparative
current assets for FYs 2020 and 2019.

1
 Table I.A.1 Comparative Current Assets
FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020
(Restated) (Decrease) Decrease
Cash and Cash Equivalents 629,130.13 (3,257.29) 632,387.42 19,414.52
Investments 137,555.14 84,903.65 52,651.49 62.01
Receivables 1,040,377.49 952,809.35 87,568.14 9.19
Inventories 165,444.43 113,585.71 51,858.72 45.66
Other Current Assets 189,915.97 166,681.83 23,234.14 13.94
Total 2,162,423.16 1,314,723.25 847,699.90 64.48

Total current assets substantially consist of receivables and cash and cash equivalents at 48.11
percent and 29.09 percent, respectively. The biggest components of receivables are inter-
agency receivables of P730.33 billion or 70.20 percent, other receivables accounts of P154.24
billion or 14.83 percent, and loans and receivables accounts of P137.58 billion or 13.22 percent.

Total cash and cash equivalents of P629.13 billion is net of the negative balances of cash-
treasury/agency deposit accounts totaling P561.45 billion. Actual cash and cash equivalents
amounted to P1.191 trillion composed of: cash on hand – P3.59 billion, cash in bank-local
currency – P845.79 billion, and cash in bank-foreign currency – P297.73 billion, and cash
equivalents – P43.47 billion.

Chart I.A.2 presents the composition of current assets.

Chart I.A.2 Composition of Current Assets

FY 2020
(in billion pesos)

Cash and Cash

Equivalents
₱ 629.13
29.09%

Other Current
Assets
₱ 189.92
8.78%

Receivables
₱ 1,040.38
48.11%
Inventories
₱ 165.44
7.65%

Investments
₱ 137.56
6.36%

2
Investments of P137.56 billion largely consist of investments in sinking fund and in time
deposits at P101.03 billion or 73.45 percent and P34.90 billion or 25.37 percent, respectively.
Other component of investments are financial assets held to maturity of P1.62 billion which
registered a decrease of P689.15 million or 29.85 percent due to the decrease of investments in
treasury bills-local.

Non-Current Assets – P5.133 trillion

Non-current assets of P5.133 trillion accounted for 70.36 percent of the total assets. It is largely
composed of property, plant and equipment (PPE) of P3.630 trillion or 70.73 percent, and
investments of P1.169 trillion or 22.78 percent. Chart I.A.3 shows the composition of non-
current assets.

Chart I.A.3 Composition of Non-Current Assets

FY 2020
(in billion pesos)

₱1,169.49
22.78%
₱185.24
3.61%

₱132.13
2.57%

₱11.08
0.22%

₱3,630.52 ₱2.53
70.73% 0.05%

₱2.17
0.04%

Property, Plant and Equipment Investments

Receivables Other Non-Current Assets
Intangible Assets Investment Property

Non-current assets increased by P286.12 billion or 5.90 percent compared to FY 2019 of

P4.847 trillion. The increment was the net result of the following: increase in PPE – P185.99
billion or 5.40 percent, increase in investments – P115.36 billion or 10.94 percent, increase in
intangible assets – P897.60 million or 8.82 percent, increase in biological assets – P355.05
million or 19.56 percent, increase in investment property – P205.26 million or 8.83 percent,
decrease in receivables – P14.39 billion or 7.21 percent and decrease in other non-current assets
– P2.30 billion or 1.71 percent.

Table I.A.2 shows the comparison of non-current assets for FYs 2020 and 2019.

3
 Table I.A.2 Comparative Non-Current Assets
FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020
(Restated) (Decrease) Decrease
Investments 1,169,487.87 1,054,123.07 115,364.79 10.94
Receivables 185,236.44 199,624.48 (14,388.04) 7.21
Investment Property 2,530.47 2,325.21 205.26 8.83
Property, Plant and Equipment 3,630,518.15 3,444,529.89 185,988.26 5.40
Biological Assets 2,170.46 1,815.40 355.05 19.56
Intangible Assets 11,076.41 10,178.80 897.60 8.82
Other Non-Current Assets 132,132.19 134,433.61 (2,301.42) 1.71
Total 5,133,151.99 4,847,030.48 286,121.51 5.90

Of the net value of PPE of P3.630 trillion, P1.541 trillion or 42.44 percent pertained to
construction in progress, of which P1.361 trillion was for infrastructure assets. The
construction in progress for infrastructure assets for FY 2020 decreased by P124.92 billion or
8.41 percent considerably due to the prioritization of the funding requirements for Covid-19
emergency programs and projects, and completion of construction of infrastructure projects.
The net value of infrastructure assets for FY 2020 increased by P201.67 billion or 25.35 percent
compared to previous year’s net value of P795.67 billion.

The increase in investments in the amount of P115.36 billion was a net result of the following:
increase in sinking fund – P127.06 billion or 22.23 percent, increase in investments in
government-owned or controlled corporations – P12.81 billion or 5.08 percent, increase in
investment in joint ventures – P27.45 million or 119.61 percent, decrease in financial assets-
others – P15.15 billion or 6.87 percent, and decrease in financial assets held to maturity – P9.37
billion or 95.00 percent.

LIABILITIES – P10.529 trillion

Total liabilities for FY 2020 of P10.529 trillion registered an increase of P2.097 trillion or
24.86 percent compared to P8.433 trillion in FY 2019. It is composed of current liabilities of
P2.330 trillion or 22.13 percent and non-current liabilities of P8.200 trillion or 77.87 percent.

Current Liabilities – P2.330 trillion

Total current liabilities of P2.330 trillion posted an increment of P794.81 billion or 51.78
percent compared to the total current liabilities in FY 2019 of P1.535 trillion. This was
significantly due to the increase in financial liabilities of P794.28 billion or 60.95 percent. The
notable increase in financial liabilities was a net result of the following: increase of
bills/bonds/loans payable – P777.03 billion or 84.34 percent, increase in payables – P18.41
billion or 4.85 percent, and decrease in tax refunds payable – P1.16 billion or 47.33 percent.
Table I.A.3 shows the comparative current liabilities for FYs 2020 and 2019.

4
 Table I.A.3 Comparative Current Liabilities
FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020
(Restated) (Decrease) Decrease
Financial Liabilities 2,097,509.87 1,303,234.75 794,275.12 60.95
Inter-Agency Payables 57,094.31 58,238.93 (1,144.62) 1.96
Intra-Agency Payables 1,138.47 448.13 690.34 154.05
Trust Liabilities 110,541.81 115,356.70 (4,814.89) 4.17
Deferred Credits/Unearned Income 5,574.62 4,884.16 690.46 14.14
Provisions 122.70 55.58 67.12 120.77
Other Payables 57,740.09 52,689.38 5,050.71 9.59
Total 2,329,721.88 1,534,907.63 794,814.26 51.78

Of the total financial liabilities of P2.097 trillion, bills/bonds/loans payable of P1.698 trillion
accounts for 80.97 percent. It includes the treasury bills payable of P949.48 billion or 55.91
percent and the current portion of bonds payable and loans payable, both foreign and domestic,
totalling P748.89 billion or 44.09 percent, of which P748.74 billion or 99.98 percent was
reported by the BTr, the agency mandated to manage, control and service the public debt of the
NG. Chart I.A.4 shows the composition of current liabilities.

Chart I.A.4 Composition of Current Liabilities

FY 2020
(in billion pesos)

₱110.54
₱57.74
4.74%
2.48%

₱57.09
2.45%
₱5.57
₱2,097.51 0.24%
90.03%

₱1.14
0.05%

Financial Liabilities
Inter-Agency Payables
Provisions
₱0.12
0.01%
Trust Liabilities Other Payables
Deferred Credits/Unearned Income Intra-Agency Payables

Non-Current Liabilities – P8.200 trillion

Non-current liabilities in FY 2020 registered an increase of P1.302 trillion or 18.87 percent

compared to the FY 2019 of P6.898 trillion. The net increase was due to the increases of the
balances of the following components: financial liabilities – P1.300 trillion or 19.02 percent,
trust liabilities – P1.42 billion or 22.65 percent, provisions – P290.88 million or 23.93 percent,
and other payables – P1.93 billion or 6.38 percent. However, this was offset by the decrease in
deferred credits/unearned income of P1.95 billion or 8.03 percent. Table I.A.4 shows the
comparison of non-current liabilities for FYs 2020 and 2019.

5
 Table I.A.4 Comparative Non-Current Liabilities
FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020 Decrease
(Restated) (Decrease)
Financial Liabilities 8,135,963.42 6,835,960.73 1,300,002.69 19.02
Trust Liabilities 7,667.39 6,251.62 1,415.77 22.65
Deferred Credits/Unearned Income 22,349.64 24,300.44 (1,950.80) 8.03
Provisions 1,506.33 1,215.46 290.88 23.93
Other Payables 32,247.36 30,312.89 1,934.47 6.38
Total 8,199,734.15 6,898,041.14 1,301,693.00 18.87

Of the total financial liabilities of P8.136 trillion, bills/bonds/loans payable of P8.135 trillion
accounts for 99.99 percent, consisting of the non-current portion of bonds payable of P6.882
trillion or 84.59 percent, and loans payable of P1.254 trillion or 15.41 percent, both foreign and
domestic.

NET ASSETS/EQUITY – (P3.234 trillion)

Total assets of P7.296 trillion less total liabilities of P10.529 trillion resulted in a negative
balance of P3.234 trillion in equity of the NG in FY 2020. This year’s negative equity posted
a decrease of P962.69 billion or 42.39 percent compared to the negative balance of P2.271
trillion in FY 2019. Table I.A.5 shows the comparative components of net assets/equity for
FYs 2020 and 2019.

Table I.A.5 Comparative Net Assets/Equity

FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020 Decrease
(Restated) (Decrease)
Total Assets 7,295,575.14 6,161,753.73 1,133,821.41 18.40
Total Liabilities 10,529,456.03 8,432,948.77 2,096,507.26 24.86
Net Assets/Equity (3,233,880.89) (2,271,195.03) (962,685.85) 42.39

The FY 2020 negative equity of P3.233 trillion is composed of accumulated deficit of P3.287
trillion, and unrealized gain from changes in the fair value of financial assets of P53.34 billion.
Table I.A.6 shows the comparative components of net assets/equity for FYs 2020 and 2019.

Table I.A.6 Comparative Components of Net Assets/Equity

FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020 Decrease
(Restated) (Decrease)
Government Equity (3,287,224.37) (2,294,270.55) (992,953.81) 43.28
Accumulated Surplus/(Deficit) (3,287,224.37) (2,294,270.55) (992,953.81) 43.28
Unrealized Gain/(Loss) 53,343.48 23,075.52 30,267.96 131.17
Net Assets/Equity (3,233,880.89) (2,271,195.03) (962,685.85) 42.39

6
 B. FINANCIAL PERFORMANCE
The Statement of Financial Performance (SFPer) presents the revenue and gains from various
sources, expenses incurred including losses from various transactions, net financial
assistance/subsidy and the surplus/(deficit) during the year.

For FY 2020, total revenue of the NG amounted to P2.848 trillion, posting a decrease of
P360.79 billion or 11.24 percent from the FY 2019 of P3.208 trillion. Current operating
expenses totaling P3.611 trillion, increased by P575.16 billion or 18.95 percent compared to
previous year’s amount of P3.036 trillion. Total revenue of P2.848 trillion less current
operating expenses of P3.611 trillion resulted in a deficit from current operations of P763.37
billion, a decrease of P935.95 billion from the FY 2019 surplus of P172.58 billion. A net deficit
of P667.74 billion was realized after adding the net financial assistance/subsidy from/(to)
NGAs, LGUs and GOCCs of P6.33 billion, other non-operating income of P131.61 billion, and
losses of P42.31 billion to deficit from current operations of P763.37 billion. The net deficit of
P667.74 billion registered a decrease in surplus of P971.52 billion compared to the surplus of
P303.77 billion in FY 2019. Table I.B.1 presents the comparative financial performance of the
NG for FYs 2020 and 2019.

Table I.B.1 Comparative Financial Performance

FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020
(Restated) (Decrease) Decrease
Revenue 2,847,558.45 3,208,344.77 (360,786.33) 11.24
Less: Current Operating Expenses 3,610,927.51 3,035,763.81 575,163.69 18.95
Surplus/(Deficit ) from Current Operations (763,369.06) 172,580.96 (935,950.02) 542.32
Net Assistance/Subsidy From/(To) NGAs,
LGUs and GOCCs 6,329.30 51,325.66 (44,996.36) 87.67
Other Non-Operating Income 131,610.21 100,953.85 30,656.36 30.37
Losses (42,313.89) (21,086.09) (21,227.80) 100.67
Surplus/(Deficit) for the period (667,743.44) 303,774.38 (971,517.82) 319.82

Revenue – P2.848 trillion

The total revenue for FY 2020 of P2.848 trillion declined by P360.79 billion or 11.24 percent
compared to FY 2019 of P3.208 trillion. Of the total revenue, P2.505 trillion or 87.97 percent
pertains to tax revenue, while P342.61 billion or 12.03 percent pertains to non-tax revenue.
Chart I.B.1 shows the comparison of revenue for FYs 2020 and 2019.

7
 Chart I.B.1 Comparative Total Revenue
FYs 2020 and 2019
(in billion pesos)

3,000.00 ₱2,841.98

2,500.00 ₱2,504.95

2,000.00

1,500.00

1,000.00

500.00 ₱342.61 ₱366.36

-
Tax Revenue Non Tax Revenue

2020 2019

Of the total tax revenue, the Bureau of Internal Revenue (BIR) and the Bureau of Customs
(BOC) reported collections of P1.954 trillion or 78.00 percent, and P534.82 billion or 21.35
percent, respectively. As a result of the Covid-19 pandemic, the BIR and the BOC collections
for FY 2020 dipped by P229.27 billion or 10.50 percent, and P105.81 billion or 16.52 percent,
respectively.

The top five sources of tax revenue are: income tax – P1.003 trillion or 40.04 percent, business
tax – P812.13 billion or 32.42 percent, excise tax – P427.11 billion or 17.05 percent,
documentary stamp tax – P125.78 billion or 5.02 percent, and import duties – P69.79 billion
or 2.79 percent.

Table I.B.2 shows the comparative composition of tax revenue for FYs 2020 and 2019.

Table I.B.2 Comparative Composition of Tax Revenue

FYs 2020and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020 Decrease
(Restated) (Decrease)
Tax Revenue-Individual and Corporations 1,003,182.08 1,099,455.43 (96,273.34) 8.76
Tax Revenue-Property 24,364.40 38,087.57 (13,723.17) 36.03
Tax Revenue-Goods and Services 1,309,054.61 1,507,921.54 (198,866.92) 13.19
Tax Revenue-Others 164,094.21 190,775.02 (26,680.82) 13.99
Tax Revenue-Fines and Penalties 4,252.80 5,744.35 (1,491.55) 25.97
Total Tax Revenue 2,504,948.10 2,841,983.90 (337,035.80) 11.86

The total non-tax revenue of P342.61 billion is composed of service and business income of
P281.62 billion or 82.20 percent, shares, donations and grants of P59.52 billion or 17.37
percent, and gains of P1.48 billion or 0.43 percent. Non-tax revenue for FY 2020 posted a
decrease of P23.75 billion or 6.48 percent compared to P366.36 billion in FY 2019. The net
decrease was a result of the following: decrease in service income – P26.30 billion or 29.73
percent, decrease from shares – P36.70 billion or 40.40 percent, decrease in grants of P35.95

8
million or 33.26 percent, increase in business income of P37.43 billion or 20.56 percent,
increase in donations of P1.30 billion or 32.61 percent, and increase in gains of P560.02 million
or 60.98 percent.

Among all the components of non-tax revenue, only the following sources registered increases:
service income-spectrum usage fees – P300.04 million or 6.42 percent, business income-net
sales – P291.03 million or 31.02 percent, dividend income – P60.10 billion or 112.42 percent,
share from internal revenue collections – P58.48 million or 12.75 percent, donations in kind –
P1.78 billion or 64.13 percent, gain from changes in fair value less cost to sell of biological
assets due to price change – P652.89 thousand or almost three times, and gain on initial
recognition of agricultural produce – P17.19 million or 101.72 percent.

Table I.B.3 shows the comparative composition of non-tax revenue for FYs 2020 and 2019.

Table I.B.3 Comparative Composition of Non-Tax Revenue

FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020
(Restated) (Decrease) Decrease
Service and Business Income 281,615.82 270,490.27 11,125.55 4.11
Service Income 62,158.73 88,459.54 (26,300.80) 29.73
Business Income 219,457.08 182,030.73 37,426.35 20.56
Shares, Grants and Donations 59,516.19 94,952.29 (35,436.10) 37.32
Shares 54,139.88 90,844.24 (36,704.36) 40.40
Donations 5,304.17 3,999.96 1,304.21 32.61
Grants 72.14 108.10 (35.95) 33.26
Gains 1,478.33 918.31 560.02 60.98
Total Non-Tax Revenue 342,610.34 366,360.87 (23,750.53) 6.48

Current Operating Expenses – P3.611 trillion

The current operating expenses of P3.611 trillion in FY 2020 increased by P575.16 billion or
18.95 percent compared to P3.036 trillion in FY 2019. The components are: personnel services
(PS) of P1.212 trillion or 33.56 percent, maintenance and other operating expenses (MOOE)
of P1.876 trillion or 51.96 percent, financial expenses (FinEx) of P402.05 billion or 11.13
percent, and non-cash expenses of P120.90 billion or 3.35 percent.

The increase in the total current operating expenses was a result of the increases in all of the
above components: PS of P81.12 billion or 7.17 percent, MOOE of P468.87 billion or 33.32
percent, FinEx of P10.54 billion or 2.69 percent, and non-cash expenses of P14.63 billion or
13.77 percent. Of the substantial net increase in MOOE of P468.87 billion, P457.26 billion or
97.52 percent was due to the surge in assistance, budgetary support and subsidies to local
government units (LGUs), government owned or controlled corporations (GOCCs), non-
government organizations/civil society organizations (NGOs/CSOs) and individuals and
institutions other than government agencies or NGOs/CSOs for government
programs/projects/activities, especially for the Covid-19 pandemic response.

Table I.B.4 shows the comparison of current operating expenses for FYs 2020 and 2019.

9
 Table I.B.4 Comparative Current Operating Expenses
FYs 2020 and 2019
(in billion pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020
(Restated) (Decrease) Decrease
Personnel Services 1,211,877.25 1,130,760.42 81,116.84 7.17
Maintenance and Other Operating Expenses 1,876,092.55 1,407,219.64 468,872.90 33.32
Financial Expenses 402,054.03 391,514.85 10,539.18 2,69
Non-Cash Expenses 120,903.68 106,268.90 14,634.77 13.77
Total Current Operating Expenses 3,610,927.51 3,035,763.81 575,163.69 18.95

Net Assistance/Subsidy From/(To) NGAs, LGUs and GOCCs – P6.33 billion

Net assistance/subsidy from NGAs, LGUs and GOCCs of P6.33 billion consists of: net subsidy
to national government of P1.26 billion, assistance from local government units of P4.24
billion, and assistance from government owned or controlled corporations of P3.35 billion. The
FY 2020 net assistance/subsidy of P6.33 billion posted a decrease of P45.00 billion or 87.67
percent compared to FY 2019 of P51.33 billion. Table I.B.5 shows the comparative
assistance/subsidy from/(to) NGAs and assistance from LGUs and GOCCs.

Table I.B.5 Comparative Assistance/Subsidy From/(To) NGAs,

and Assistance from LGUs and GOCCs
FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars 2019 Increase/ Increase/
2020
(Restated) (Decrease) Decrease
Net Subsidy from/(to) National Government (1,263.15) 47,587.36 (48,850.51) 102.65
Assistance/Subsidy from National Government 19,301.50 52,978.10 (33,676.60) 63.57
Subsidy from National Government - 50,557.69 (50,557.69) 100.00
Subsidy from Other Funds 85.71 578.59 (492.88) 85.19
Subsidy from Central Office 18,444.44 736.87 17,707.57 2,403.09
Subsidy from Regional Offices/Staff Bureaus 771.34 1,104.95 (333.61) 30.19
Less: Assistance/Subsidy to NGAs 20,564.65 5,390.75 15,173.90 281.48
Subsidy to National Government Agencies 15,244.70 - 15,244.70 100.00
Subsidy to Regional Offices/Staff Bureaus 3,434.75 2,852.86 581.89 20.40
Subsidy to Operating Units 1,508.58 2,328.80 (820.22) 35.22
Subsidy to Other Funds 376.61 209.08 167.53 80.13
Assistance from Local Government Units 4,244.50 3,680.36 564.14 15.33
Assistance from Government-Owned or
Controlled Corporations 3,347.95 57.94 3,290.01 5,677.99
Net Assistance/Subsidy from/(to) NGAs, LGUs
and GOCCs 6,329.30 51,325.66 (44,996.36) 87.67

10
 C. CHANGES IN NET ASSETS/EQUITY
The Statement of Changes in Net Assets/Equity (SCNA/E) reflects the elements affecting the
changes in the government equity and unrealized gain/(loss) at the end of the year.

The restated negative balance as at January 1, 2020 of the net assets/equity amounted to P2.271
trillion. After deducting the deficit for the period of P667.74 billion and other adjustments of
P294.94 billion, the net assets/equity as at December 31, 2020 resulted in a negative balance
of P3.234 trillion. It is composed of accumulated deficit of P3.287 trillion, and unrealized gain
from changes in the fair value of financial assets of P53.34 billion. Table I.C.1 shows the
changes in net assets/equity for FY 2020.

Table I.C.1. Changes in Net Assets/Equity

FY 2020
(in million pesos)

Government Unrealized
Equity Gain/(Loss) from
Net
Particulars Changes in the Fair
Assets/Equity Accumulated
Value of Financial
Surplus/(Deficit)
Assets
Restated Balance, January 1 (2,271,195.03) (2,294,270.55) 23,075.52
Add/(Deduct):
Changes in Net Assets/Equity for the Fiscal Year
Surplus/(Deficit) for the Period (667,743.44) (667,743.44) -
Others (294,942.41) (325,210.37) 30,267.96
Balance, December 31 (3,233,880.89) (3,287,224.37) 53,343.48

D. CASH FLOWS
The Statement of Cash Flows (SCF) prepared using the direct method, shows the cash inflows
and outflows from operating, investing and financing activities.

Net cash provided by financing activities in FY 2020 amounted to P1.795 trillion, while net
cash used in operating activities and investing activities amounted to P486.95 billion and
P540.15 billion, respectively, resulting in a net increase in cash and cash equivalent of P768.29
billion. After adding the negative effects of exchange rate changes of P15.47 billion and the
beginning balance of P691.59 billion, the cash and cash equivalents of the NGAs at the end of
FY 2020 amounted to P1.444 trillion.

The FY 2020 ending balance of P1.444 trillion differed by P815.28 billion with the total cash
and cash equivalents of P629.13 billion in the Statement of Financial Position. The difference
represents the following: (1) cash and cash equivalents which were included in the Sinking
Fund of P70.66 billion and Investments in Time Deposits of P32.93 billion under Investments;
and (2) the credit balances of the Cash-Treasury/Agency Deposit, Special Account of P655.75
billion, and Cash-Treasury/Agency Deposit, Trust of P55.94 billion, which are all reported in
the books of the BTr NG.

The comparative inflows and outflows, by activity, for FYs 2020 and 2019 are shown in Chart
I.D.1.

11
 Chart I.D.1 Comparative Cash Flows, by Activity
FYs 2020 and 2019
(in billion pesos)

4,500.00 ₱4,420.42

4,000.00 ₱3,894.52 ₱3,908.93 ₱3,892.92

₱3,538.62
3,500.00

3,000.00
₱2,625.03
2,500.00
₱2,048.00
2,000.00 ₱1,814.46

1,500.00
₱993.20
1,000.00 ₱820.70

500.00 ₱280.55
₱209.39
-
Inflows Outflows Inflows Outflows Inflows Outflows

Operating Activities Investing Activities Financing Activities

2020 2019

E. COMPARISON OF BUDGET AND ACTUAL AMOUNTS

The Statement of Comparison of Budget and Actual Amounts (SCBAA) presents the original
and final targets of receipts versus the actual amounts collected as well as the original and final
budgets versus the actual amounts paid.

The SCBAA presents the receipts and payments classified into budgeted amounts (original and
final) and the actual amounts on comparable basis. The final budgeted amounts are compared
with the actual amounts on comparable basis to get the difference or variance.

For FY 2020, the final targeted receipts of P5.893 trillion increased by P958.50 billion
compared to the original targeted receipts of P4.934 trillion. However, actual receipts of P5.573
trillion was lower by P319.74 billion compared to the final targeted receipts of P5.893 trillion.

The final budgeted payments of P5.116 trillion increased by P1.209 trillion from the original
budgeted payments of P3.907 trillion. However, actual payments of P4.311 trillion was lower
by P804.94 billion than the final budgeted payments of P5.116 trillion.

Table I.E.1 shows the comparison of budget and actual amounts for FY 2020.

12
 Table I.E.1. Comparison of Budget and Actual Amounts
FY 2020
(in million pesos)

Budgeted Amounts Actual Amounts Difference

Particulars on Comparable Final Budget
Original Final
Basis and Actual
RECEIPTS
Tax Revenue 3,332,283.41 2,438,296.89 2,511,165.28 72,868.39
Service and Business Income 113,316.65 370,731.89 242,348.74 (128,383.15)
Shares, Grants and Donations 68,249.39 66,955.74 40,726.65 (26,229.08)
Gains 4.12 22.54 18.97 (3.57)
Others 1,420,485.68 3,016,831.35 2,778,840.98 (237,990.37)
Total Receipts 4,934,339.25 5,892,838.42 5,573,100.63 (319,737.79)
PAYMENTS
Personal Services 1,017,442.37 1,237,047.10 1,187,654.19 49,392,.91
Maintenance and Other Operating
Expenses 1,417,362.53 2,154,792.18 1,818,557.34 336,234.83
Capital Outlays 1,090,416.72 760,658.75 324,615.70 436,043.05
Financial Expenses 381,998.32 381,799.74 399,218.33 (17,418.59)
Debt Service (Principal
Amortization) - 582,088.00 581,395.62 692.38
Total Payments 3,907,219.95 5,116,385.77 4,311,441.18 804,944.58

13
 PART II
APPROPRIATIONS,
ALLOTMENTS,
OBLIGATIONS,
DISBURSEMENTS
AND BALANCES
 PART II – APPROPRIATIONS, ALLOTMENTS,
OBLIGATIONS, DISBURSEMENTS, AND BALANCES

Budget for Fiscal Year 2020

With the goal of supporting the continuing journey of the Duterte Administration to a more
peaceful and progressive Philippines, the approved budget under Republic Act (R.A.) No.
11465, the General Appropriations Act (GAA) for FY 2020 amounted to P3.066 trillion higher
by P289.27 billion or 10.42 percent from FY 2019 budget of P2.777 trillion.

From FYs 2011 to 2020, the Annual Budget increased at an average rate of 13.48 percent.
Table II-1 shows the annual budget of the National Government (NG) from FYs 2011 to 2020.

Table II-1 Annual Budget

FYs 2011 - 2020
(in million pesos)

Fiscal General Increase/(Decrease)

Appropriations
Year Appropriations Act Amount Percent
2020 R.A. No. 11465 3,066,514.47 289,267.18 10.42
2019 R.A. No. 11260 2,777,247.29 (84,280.26) 2.95
2018 R.A. No. 10964 2,861,527.55 362,040.60 14.48
2017 R.A. No. 10924 2,499,486.95 360,882.36 16.87
2016 R.A. No. 10717 2,138,604.60 275,779.94 14.80
2015 R.A. No. 10651 1,862,824.65 254,321.57 15.81
2014 R.A. No. 10633 1,608,503.08 240,273.93 17.56
2013 R.A. No. 10352 1,368,229.16 123,035.89 9.88
2012 R.A. No. 10155 1,245,193.27 244,805.51 24.47
2011 R.A. No. 10147 1,000,387.76

The approved budget is composed of Programmed New Appropriations of P2.850 trillion and
Unprogrammed Appropriations of P216.30 billion. Unprogrammed appropriations represent
standby authority to be released only when revenue collections in any one of the identified
revenue sources exceed targets per Budget of Expenditures and Sources of Financing or when
new foreign loans or grants are received.

The programmed and unprogrammed amounts in the GAA underwent revisions to address the
COVID-19 response, in view of the enactment of the Bayanihan to Heal as One Act (BHOA),
under R.A. No. 11469 dated March 24, 2020, “An Act Declaring the Existence of a National
Emergency Arising from the Corona Virus Disease 2019 (COVID-19) Situation and a National
Policy in Connection Therewith, and Authorizing the President of the Republic of the
Philippines for a Limited Period and Subject to Restrictions, to Exercise Powers Necessary and
Proper to Carry Out the Declared National Policy and for Other Purposes.”

In addition, special appropriations of P155.97 billion was provided under R. A. No. 11494
dated July 27, 2020 “An Act Providing for COVID-19 Response and Recovery Interventions
and Providing Mechanisms to Accelerate the Recovery and Bolster the Resiliency of the
Philippine Economy, Providing Funds Therefor, and For Other Purposes.”

14
Appropriations, Allotments, Obligations, and Disbursements
for FY 2020
For FY 2020, the NG had a total appropriations of P5.379 trillion and allotments of P5.089
trillion, leaving an unreleased appropriations of P289.08 billion. The obligations incurred
totaled P4.872 trillion of which P4.853 trillion was covered by allotments, and P19.07 billion
not covered by allotments. Disbursements reported totaled P4.316 trillion leaving P556.67
billion in unpaid obligations. Table II-2 presents the comparative appropriations, allotments,
obligations, disbursements, and balances for FYs 2020 and 2019.

Table II-2 Comparative Appropriations, Allotments, Obligations,

Disbursements and Balances
FYs 2020 and 2019
(in million pesos)

Amount Increase/(Decrease)
Particulars
FY 2020 FY 2019 Amount Percent
Appropriations 5,378,550.23 4,582,170.86 796,379.37 17.38
Allotments 5,089,466.50 4,331,045.76 758,420.74 17.51
Allotments 5,089,456.76 4,331,045.76 758,411.00 17.51
Allotments to Cover Prior
Year Overdraft 9.74 - 9.74 100.00
Obligations 4,872,414.03 4,104,756.74 767,657.29 18.70
Covered by Allotments 4,853,342.21 4,077,685.10 775,657.11 19.02
Overdraft in Allotments 19,071.82 27,071.64 (7,999.82) 29.55
Disbursements 4,315,742.69 3,580,679.72 735,062.97 20.53
Covered by Allotments 4,296,778.40 3,553,611.50 743,166.90 20.91
Overdraft in Allotments 18,964.29 27,068.22 (8,103.93) 29.94
Unreleased Appropriations 289,083.73 251,125.10 37,958.63 15.12
Unobligated Allotments 236,114.54 253,360.66 (17,246.11) 6.81
Unpaid Obligations 556,671.35 524,077.02 32,594.32 6.22

From FY 2011 to FY 2020, the appropriations, allotments and obligations increased at an

average rate of 9.41 percent, 10.05 percent, and 10.63 percent, respectively. Chart II-1 shows
the trend analysis of appropriations, allotments and obligations from FY 2011 to FY 2020.

15
 Chart II-1 Trend Analysis of Appropriations,
Allotments and Obligations
FYs 2011 - 2020
(in billion pesos)

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Appropriations 2,408.79 2,529.56 2,818.39 3,077.57 3,507.80 3,758.93 4,113.29 4,285.77 4,582.17 5,378.55
Allotments 2,161.40 2,379.41 2,573.71 2,729.82 3,146.83 3,429.17 3,797.85 4,152.93 4,331.05 5,089.47
Obligations 1,997.29 2,196.11 2,228.80 2,227.53 2,554.02 2,894.61 3,466.16 3,949.75 4,104.76 4,872.41

Appropriations – P5.379 trillion

Appropriations are authorizations made by law or legislative enactment directing payment
out of the government funds under specified conditions or for specific purposes.

New General Appropriations are the authorizations for incurring obligations during a
specified budget year as listed in the GAA.

Automatic Appropriations are the authorizations programmed annually or for some other
period prescribed by law, by virtue of outstanding legislation which does not require periodic
action by Congress.

Continuing Appropriations are authorizations to support obligations for a specified purpose

or project, even when these obligations are incurred beyond the budget year.

The FY 2020 total appropriations of P5.379 trillion by source, consists of current year
appropriations of P5.023 trillion, and continuing appropriations of P355.49 billion.

The current year’s appropriations of P5.023 trillion consists of the new GAA of 3.062 trillion
(net of P4.73 billion Unprogrammed Appropriations – Support to Infrastructure Projects and
Social Programs reprogrammed to R.A. 11494), automatic appropriations of P1.805 trillion,
and special appropriations of P155.97 billion. The new GAA includes the appropriations for
foreign-assisted projects of P117.32 billion.

16
The continuing appropriations of P355.49 billion were from the unreleased appropriations and
unobligated allotments of P221.53 billion and P133.96 billion, respectively.

The withdrawn unobligated balances from current and continuing appropriations totaling
P57.24 billion together with the unreleased balances of P259.69 billion were transferred to the
Pooled Balances to address the COVID-19 Pandemic response funding requirements based on
the emergency powers granted to President Duterte under the BHOA, R.A. No. 11469.

The total pooled appropriations of P316.93 billion were sourced from the new general
appropriations of P266.47 billion and continuing appropriations of P50.46 billion.

Table II-3 shows the sources of appropriations of Pooled Balances.

Table II-3 Transfers to Pooled Balances, by Source

FY 2020
(in million pesos)

Unreleased Unobligated Transfer to

Source
Appropriations Allotments Pooled Balances
Total 259,690.92 57,236.82 316,927.74
Personnel Services 1,609.99 156.73 1,766.72
Maintenance and Other Operating Expenses 45,573.73 31,209.53 76,783.27
Financial Expenses 0.90 178.92 179.83
Capital Outlay 212,506.30 25,691.63 238,197.93
New General Appropriations – R.A. No 11465 226,968.95 39,503.51 266,472.46
Personnel Services 648.11 24.43 672.54
Maintenance and Other Operating Expenses 37,642.63 24,327.68 61,970.31
Financial Expenses 0.40 - 0.40
Capital Outlay 188,677.81 15,151.39 203,829.20
Continuing Appropriations – R.A. No. 11260 32,721.98 17,733.31 50,455.28
Personnel Services 961.88 132.30 1,094.18
Maintenance and Other Operating Expenses 7,931.10 6,881.85 14,812.95
Financial Expenses 0.50 178.92 179.43
Capital Outlay 23,828.49 10,540.24 34,368.72

From the Pooled Balances, P313.49 billion were transferred and released to the implementing
agencies for priority programs and projects for COVID-19, leaving an unreleased balance of
P3.44 billion. Table II-4 shows the status of release of pooled balances, by source.

Table II-4 Status of Release of Pooled Balances, by Source

FY 2020
(in million pesos)

Pooled Net Pooled

Source Modification Releases
Balances Balance

Total 316,927.74 - 313,491.07 3,436.67

Personnel Services 1,766.72 758.50 (2,525.22) -
Maintenance and Other Operating Expenses 76,783.27 224,228.64 (297,651.64) 3,360.26
Financial Expenses 179.83 (179.83) - -
Capital Outlay 238,197.93 (224,807.31) (13,314.21) 76.41
New General Appropriations – R.A. No 11465 266,472.46 - (263,112.20) 3,360.26
Personnel Services 672.54 137.09 (809.63) -
Maintenance and Other Operating Expenses 61,970.31 190,378.30 (248,988.36) 3,360.26
Financial Expenses 0.40 (0.40) - -
Capital Outlay 203,829.20 (190,515.00) (13,314.21) -

17
 Pooled Net Pooled
Source Modification Releases
Balances Balance

Continuing Appropriations – R.A. No. 11260 50,455.28 - (50,378.87) 76.41

Personnel Services 1,094.18 621.41 (1,715.59) -
Maintenance and Other Operating Expenses 14,812.95 33,850.33 (48,663.29) -
Financial Expenses 179.43 (179.43) - -
Capital Outlay 34,368.72 (34,292.31) - 76.41

The Special Appropriations of P155.97 billion were sourced from the unutilized automatic
appropriations, and excess revenue collections, as certified by the Bureau of the Treasury
(BTr).

Table II-5 shows the comparative appropriations by source for FYs 2020 and 2019.

Table II-5 Comparative Appropriations by Source

FYs 2020 and 2019
(in million pesos)

Amount Increase/(Decrease)
Source
FY 2020 FY 2019 Amount Percent
Current Year’s Appropriations 5,023,056.41 4,317,373.41 705,683.00 16.35
New General Appropriations 3,061,788.54 2,777,247.29 284,541.25 10.25
Agency Specific Budget 2,336,378.72 2,153,948.42 182,430.29 8.47
Special Account in the General
Fund 10,000.00 9,000.00 1,000.00 11.11
Special Purpose Funds 712,049.57 614,298.87 97,750.70 15.91
Pooled Balances (Net of Transfers) 3,360.26 3,360.26 100.00
Automatic Appropriations 1,805,300.60 1,540,126.11 265,174.48 17.22
Special Appropriations 155,967.27 155,967.27 100.00
Continuing Appropriations 355,493.82 264,797.45 90,696.37 34.25
Unreleased Appropriations 221,534.03 98,681.75 122,852.28 124.49
Unobligated Allotments 133,959.79 166,115.71 (32,155.92) 19.36
Total 5,378,550.23 4,582,170.86 796,379.37 17.38

The components of FY 2020 appropriations, by allotment class, are: Personnel Services (PS) –
P1.262 trillion, Maintenance and Other Operating Expenses (MOOE) – P2.334 trillion,
Financial Expenses (FinEx) – P381.80 billion, and Capital Outlay (CO) – P1.401 trillion. Chart
II-2 presents the comparative appropriations by allotment class for FYs 2020 and 2019.

18
 Chart II-2 Comparative Appropriations by Allotment Class
FYs 2020 and 2019
(in billion pesos)

2,500.00
₱2,333.56

2,000.00

₱1,658.83

1,500.00 ₱1,401.40 ₱1,372.72

₱1,261.79
₱1,188.19

1,000.00

500.00 ₱381.80 ₱362.43

-
PS MOOE FinEx CO

FY 2020 FY 2019

The appropriations for PS of P1.262 trillion represented 23.46 percent of the total budget. This
increased by P73.60 billion or 6.19 percent compared to the FY 2019 of P1.188 trillion. The
amounts appropriated for PS were for payment of wages, salary increases, benefits, and other
allowances of government civilian and military personnel; payment of pension of military and
uniformed personnel, as well as civilian personnel; filling of unfilled positions in the
government; and payment of contractual and casual personnel.

The appropriations for MOOE of P2.334 trillion constituted 43.39 percent of the total budget
for FY 2020, which registered P674.73 billion or 40.68 percent more than the FY 2019 amount
of P1.659 trillion. The appropriations for MOOE covered the requirements for the day-to-day
operations of the government, funding for priority programs and projects that benefit the
people, such as the Pantawid Pamilyang Pilipino Program, Universal Health Care, Universal
Access to Quality Tertiary Education and K-to-12 Program, allocations to local government
units, and subsidies to government corporations.

Appropriations for FinEx of P381.80 billion were intended for payment of interests on
domestic and foreign loans, including funds for management supervision/trusteeship fees,
interest expenses, guarantee fees, bank charges and commitment fees, and other financial
charges incurred in owning or borrowing assets or properties. Compared to the FY 2019
amount of P362.43 billion, the FY 2020 appropriations for FinEx increased by P19.37 billion
or 5.34 percent.

The appropriations for CO of P1.401 trillion comprised 26.06 percent of the total budget. It is
allocated for funding the Administration’s flagship Build, Build, Build Program including the
construction of roads, airports, bridges, dams, irrigation and power works, schools and
hospitals, among others, loan outlays, equity contributions to government corporations, capital

19
transfers to LGUs, and other capital outlays. The appropriations for CO increased by P28.68
billion or 2.09 percent compared to the previous year amount of P1.373 trillion.

Table II-6 presents the top ten departments/offices with the highest appropriations for FY 2020.

Table II-6 Appropriations of Top Ten Departments/Offices

FY 2020
(in million pesos)

Percent
Department/Office/Particulars Amount
Distribution
Finance 2,154,382.39 40.06
Education 561,488.31 10.44
Public Works and Highways 506,044.27 9.41
Social Welfare and Development 378,464.72 7.04
Interior and Local Government 304,008.48 5.65
National Defense 270,536.58 5.03
Health 205,179.58 3.81
Transportation 121,410.72 2.26
Agriculture 91,928.14 1.71
Other Executive Offices 87,641.98 1.63
Other Departments/Offices 444,582.80 8.27
Unreleased Appropriations - Special Purpose
Funds, Special Appropriations and Pooled
Balances 252,882.25 4.70
Special Purpose Funds 156,956.04
Special Appropriations 92,489.54
Pooled Balances 3,436.67
Total 5,378,550.23 100.00

The Department of Finance (DOF) reported the highest amount of appropriations of P2.154
trillion representing 40.06 percent of the total appropriations, of which P962.50 billion or 44.68
percent was for debt service, and P648.92 billion or 30.12 percent for Internal Revenue
Allotments (IRA) for release to LGUs through the Bureau of the Treasury (BTr). The
Department of Education (DepEd) and Department of Public Works and Highways (DPWH)
followed with P561.49 billion and P506.04 billion, respectively.

Allotments – P5.089 trillion

Allotments are authorizations issued by the DBM to NGAs and government corporations
(GCs) maintaining Special Account in the General Fund (SAGF) to incur obligations for
specified amounts contained in legislative appropriations in the form of budget releasing
documents.

For FY 2020 total allotments of P5.089 trillion, P4.855 trillion or 95.40 percent came from
current year’s appropriations, and P233.93 billion or 4.60 percent from continuing
appropriations. Of the allotments from current year’s appropriations, P2.987 trillion or 61.51
percent was funded from the new general appropriations, P1.805 trillion or 37.18 percent from
automatic appropriations, and P63.48 billion or 1.31 percent from special appropriations. The
allotments from the new general appropriations includes allotments for foreign-assisted
projects of P93.04 billion.

20
Of the allotments from continuing appropriations, P99.97 billion was sourced from unreleased
appropriations, while P133.96 billion from extended allotments of prior year’s unobligated
allotments. Table II-7 shows the comparative allotments by source for FYs 2020 and 2019.

Table II-7 Comparative Allotments by Source

FYs 2020 and 2019
(in million pesos)

Amount Increase/ (Decrease)

Source
FY 2020 FY 2019 Amount Percent
Current Year’s Appropriations 4,855,532.96 4,123,909.91 731,623.05 17.74
New General Appropriations 2,986,754.64 2,583,783.80 402,970.84 15.60
Agency Specific Budget 2,307,800.12 2,085,729.07 222,071.05 10.65
Special Account in the General
Fund 9,974.54 9,000.00 974.54 10.83
Special Purpose Funds 668,979.98 489,054.73 179,925.26 36.79
Automatic Appropriations 1,805,300.60 1,540,126.11 265,174.48 17.22
Special Appropriations 63,477.73 - 63,477.73 100.00
Continuing Appropriations 233,933.54 207,135.85 26,797.69 12.94
Unreleased Appropriations 99,973.75 41,020.14 58,953.61 143.72
Unobligated Allotments 133,959.79 166,115.71 (32,155.92) 19.36
Total 5,089,466.50 4,331,045.76 758,420.74 17.51

The components of FY 2020 allotments by class are as follows: PS – P1.227 trillion or 24.12
percent, MOOE – P2.144 trillion or 42.12 percent, FinEx – P381.80 billion or 7.50 percent,
and CO – P1.336 trillion or 26.26 percent. Among the components, the allotments for MOOE
registered the highest increase at P621.74 billion or 40.85 percent, of which P459.11 billion or
73.84 percent was released for the COVID-19 response priority programs and projects. Chart
II-3 presents the comparative allotments by class for FYs 2020 and 2019.

Chart II-3 Comparative Allotments by Class

FYs 2020 and 2019
(in billion pesos)

2,500.00

₱2,143.69
2,000.00

₱1,521.95
1,500.00
₱1,336.48 ₱1,293.74
₱1,227.49
₱1,152.93

1,000.00

500.00 ₱381.80 ₱362.43

-
PS MOOE FinEx CO

FY 2020 FY 2019

21
The total allotments from the current year’s new general appropriations of P2.987 trillion
comprise: Agency Specific Budget (ASB) of P2.308 trillion or 77.27 percent; SAGF for the
Rice Competitiveness Enhancement Fund of P9.97 billion or 0.33 percent; and Special Purpose
Funds of P668.98 billion or 22.40 percent.

Special Purpose Funds (SPFs) represent disaggregated and lump-sum funds allocated for
specific purposes. Disaggregated SPFs refer to the funds that are already broken down into
allocations for specific agencies, programs and projects, such as: Allocation to Local
Government Units, Budgetary Support to Government Corporations, Pension and Gratuity
Fund and Miscellaneous Personnel Benefits Fund. Lump-sum SPFs, on the other hand, are
funds that are yet to be disaggregated and/or can only be implemented when certain conditions
are met, such as: National Disaster Risk Reduction and Management Fund and Contingent
Fund.

Allocation to Local Government Units (ALGU). Subsidy given to local governments to

implement their priority programs and projects. This includes the Local Government Support
Fund and special share of the LGUs in the proceeds of other national taxes.

Budgetary Support to Government Corporations (BSGC). Financial assistance to 49

government corporations in the form of equities and/or subsidies.

Pension and Gratuity Fund (PGF). Payment for civil servants’ pension, retirement and
terminal leave benefits, and separation pay.

Miscellaneous Personnel Benefits Fund (MPBF). Funds for the creation of new positions,
filling of authorized positions, and other personnel related expenses.

National Disaster Risk Reduction and Management Fund (NDRRMF). Emergency funds to be
used for rehabilitation and aid to communities and areas affected by natural and human-induced
disasters.

Contingent Fund. Funding for urgent and/or new projects and activities of government agencies
and corporations that need to be implemented or paid for during the fiscal year.

The breakdown of allotments from SPFs is presented in Table II-8.

Table II-8 Allotments from Special Purpose Fund by Source

FY 2020
(in million pesos)

Amount
Continuing Appropriations
Fund Current Year’s
Total Unreleased Unobligated
Appropriations
Appropriations Allotments
Budgetary Support to GOCCs 183,412.10 183,382.73 29.38 -
Allocation to Local Government Units 101,249.37 99,999.17 1,002.40 247.80
a. Metropolitan Manila Development
Authority 3,997.74 3,730.55 - 247.19
b. Special Shares of LGUs in the
Proceeds of National Taxes 26,206.22 26,015.27 190.95 -
c. Local Government Support Fund 65,562.69 64,777.63 785.06 -

22
 Amount
Continuing Appropriations
Fund Current Year’s
Total Unreleased Unobligated
Appropriations
Appropriations Allotments
d. Barangay Officials Death Benefits
Fund 27.41 0.40 26.39 0.62
e. Bangsamoro Autonomous Region in
Muslim Mindanao 5,475.31 5,475.31 - -
Contingent Fund 22,269.74 7,246.28 10,338.72 4,684.74
Miscellaneous Personnel Benefits Fund
(MPBF) 56,715.95 56,381.41 2.40 332.15
National Disaster Risk Reduction and
Management Fund (NDRRMF)/
Calamity Fund 26,643.50 17,659.35 6,014.50 2,969.65
Pension and Gratuity Fund (PGF) 116,450.71 116,066.80 - 383.90
Unprogrammed Appropriations 188,656.67 188,244.25 - 412.42
Support for Infrastructure Projects
and Social Programs 97,949.33 97,536.91 - 412.42
Budgetary Support to GOCCs 51,850.00 51,850.00 - -
Support to Foreign-Assisted Projects 17,823.94 17,823.94 - -
National Identification System 1,000.00 1,000.00 - -
Pension and Gratuity 20,033.39 20,033.39 - -
Total 695,398.04 668,979.98 17,387.39 9,030.67

Among the components of the SPFs, the biggest amounts were released from: a) BSGC –
P183.41 billion or 26.38 percent; b) Unprogrammed Appropriations – P188.66 billion or 27.13
percent; c) PGF – P116.45 billion or 16.75 percent; and d) ALGU – P101.25 billion or 14.56
percent. The BSGC of P183.41 billion comprised: budgetary support of P181.90 billion or
99.17 percent, equity investments of P1.51 billion or 0.83 percent, and tax subsidy of P284.44
thousand to government corporations.

Of the budgetary support to GCs, the Philippine Health Insurance Corporation (PhilHealth)
received the highest subsidy of P71.34 billion to accommodate beneficiaries of the Universal
Health Care Program.

Table II-9 presents the list of GCs with allotment releases for budgetary support, equity
investments and tax subsidy from NG.

Table II-9 Allotment Releases for Government Corporations,

by Purpose for FY 2020
(in million pesos)

Amount
Government Corporation Budgetary Equity Tax
Total
Support Investment Subsidy
Philippine Health Insurance Corporation 71,344.82 71,344.82 - -
Land Bank of the Philippines 36,488.00 36,488.00 - -
National Irrigation Administration 35,329.69 35,329.69 - -
Bases Conversion and Development Authority 10,293.49 10,293.49 - -
National Food Authority 5,600.00 5,600.00 - -
Philippine Crop Insurance Corporation 3,500.00 3,500.00 - -
National Housing Authority 3,030.16 3,030.16 - -
National Electrification Administration 1,993.91 1,993.63 - 0.28
Small Business Corporation 1,500.00 1,500.00 - -
Philippine Heart Center 1,432.02 1,432.02 - -

23
 Amount
Government Corporation Budgetary Equity Tax
Total
Support Investment Subsidy
Philippine Fisheries Development Authority 1,425.77 1,425.77 - -
Philippine Children’s Medical Center 1,197.65 1,197.65 - -
Philippine Coconut Authority 1,085.44 1,085.44 - -
National Power Corporation 1,021.34 1,021.34 - -
National Kidney and Transplant Institute 908.14 908.14 - -
Subic Bay Metropolitan Authority 770.82 770.82 - -
National Home Mortgage Finance Corporation 650.00 650.00 - -
Philippine Rice Research Institute 625.56 625.56 - -
Philippine Postal Corporation 500.26 500.26 - -
Home Guaranty Corporation 500.00 - 500.00 -
Trade and Investment Development Corporation
of the Philippines 500.00 - 500.00 -
Lung Center of the Philippines 435.19 435.19 - -
Development Academy of the Philippines 412.29 412.29 - -
Social Housing Finance Corporation 325.00 325.00 - -
Philippine Institute for Development Studies 290.86 290.86 - -
Cultural Center of the Philippines 281.71 281.71 - -
Center for International Trade Expositions and
Missions 250.63 250.63 - -
People’s Television Network, Inc. 250.54 250.54 - -
National Dairy Authority 239.84 239.84 - -
Authority of the Freeport Area of Bataan 203.68 - 203.68
Zamboanga City Special Economic Zone
Authority 185.28 41.17 144.11 -
Light Rail Transit Authority 184.15 184.15 - -
Philippine Institute of Traditional and Alternative
Health Care 128.79 128.79 - -
Cagayan Economic Zone Authority 126.71 - 126.71 -
Aurora Pacific Economic Zone and Freeport
Authority 85.07 45.07 40.00 -
Intercontinental Broadcasting Corporation 77.77 77.77 - -
Philippine Tax Academy 76.46 76.46 - -
Southern Philippines Development Authority 75.57 75.57 - -
Credit Information Corporation 43.99 43.99 - -
Philippine Center for Economic Development 30.79 30.79 - -
Tourism Infrastructure and Enterprise Zone
Authority 10.00 10.00 - -
Total 183,412.10 181,897.32 1,514.50 0.28

Total allotments from automatic appropriations amounted to P1.805 trillion of which, a total
of P1.611 trillion or 89.26 percent were for debt service and IRA amounting to P962.50 billion
and P648.92 billion, respectively. Allotments for debt service consists of P582.09 billion and
P380.41 billion for payment of principal and interest, respectively. Allotments for automatic
appropriations includes also the following: BARMM Block Grant – P63.63 billion; Retirement
and Life Insurance Premium – P55.45 billion; Tax Expenditure Fund (Customs Duties and
Taxes) – P33.42 billion; Net Lending to Government Owned and/or Controlled Corporations
– P22.11 billion; Special Account in the General Fund – P17.00 billion; Grants and Donations
– P1.54 billion; Military Camp Sales Proceeds Fund – P179.52 million, and AFP
Modernization Program – P548.30 million.

The total allotments from continuing appropriations of P233.93 billion, sourced from
unreleased appropriations of P99.97 billion or 42.74 percent and unobligated allotments of

24
P133.96 billion or 57.26 percent are composed of: ASB of P207.50 billion, SPFs of P26.42
billion, and automatic appropriations of P9.94 million. The total allotments from unreleased
appropriations of P99.97 billion includes P9.74 million allotments to cover the prior year’s
overdraft of the National Telecommunications Commission under the Department of
Information and Communications Technology (DICT).

By allotment class, the allotments from continuing appropriations comprised of: PS – P17.61
billion, MOOE – P139.15 billion, FinEx – P216.13 million, and CO – P76.95 billion.

The DOF reported the highest amount of allotments of P2.154 trillion, representing 42.33
percent of the total allotments, of which P962.50 billion or 44.68 percent was for debt service,
and P648.92 billion or 30.12 percent for IRA released to LGUs through the BTr. The DepEd
and DPWH followed with P555.76 billion and P502.33 billion, respectively.

Table II-10 presents the top ten departments/offices with the highest allotments for FY 2020.

Table II-10 Top Ten Departments/Offices with Highest Allotments

FY 2020
(in million pesos)

Percent
Department/Office/Particulars Amount
Distribution
Finance 2,154,192.58 42.33
Education 555,756.79 10.92
Public Works and Highways 502,328.93 9.87
Social Welfare and Development 378,446.98 7.44
Interior and Local Government 298,828.08 5.87
National Defense 268,723.49 5.28
Health 201,019.50 3.95
Transportation 120,208.35 2.36
Agriculture 88,207.17 1.73
Other Executive Offices 86,362.70 1.70
Other Departments/Offices 435,391.92 8.55
Total 5,089,466.50 100.00

Unreleased Appropriations – P289.08 billion

Unreleased appropriations represent the balance of the total appropriations for the year over
the total allotments released to various NGAs.

The FY 2020 unreleased appropriations totaled P289.08 billion, composed of P34.30 billion or
11.87 percent for PS, P189.87 billion or 65.68 percent for MOOE, P1.01 million for FinEx,
and P64.91 billion or 22.45 percent for CO. Table II-11 presents the detailed unreleased
appropriations by source and by allotment class.

25
 Table II-11 Unreleased Appropriations by Source, by Allotment Class
FY 2020
(in million pesos)

Unreleased
Source Appropriations Allotments
Appropriation
Grand Total 5,378,550.23 5,089,466.50 289,083.73
PS 1,261,790.06 1,227,487.33 34,302.73
MOOE 2,333,559.22 2,143,688.66 189,870.56
FinEx 381,799.75 381,798.74 1.01
CO 1,401,401.21 1,336,491.78 64,909.43
Current Year’s Appropriations 5,023,056.41 4,855,532.96 167,523.45
PS 1,217,273.25 1,209,876.20 7,397.05
MOOE 2,128,017.13 2,004,536.11 123,481.02
FinEx 381,583.61 381,582.60 1.01
CO 1,296,182.41 1,259,538.04 36,644.37
New General Appropriations 3,061,788.54 2,986,754.64 75,033.91
Agency Specific Budget 2,336,378.72 2,307,800.12 28,578.60
PS 968,242.43 960,846.26 7,396.17
MOOE 769,924.22 757,677.27 12,246.95
FinEx 1,171.61 1,170.60 1.01
CO 597,040.45 588,105.98 8,934.46
Special Account in the General Fund 10,000.00 9,974.54 25.47
MOOE 3,900.00 3,894.42 5.58
CO 6,100.00 6,080.12 19.88
Special Purpose Funds 712,049.57 668,979.98 43,069.59
PS 192,504.60 192,503.71 0.89
MOOE 461,062.01 445,683.33 15,378.68
CO 58,482.96 30,792.94 27,690.02
Pooled Balances 3,360.26 - 3,360.26
MOOE 3,360.26 - 3,360.26
Automatic Appropriations 1,805,300.60 1,805,300.60 -
PS 56,525.95 56,525.95 -
MOOE 753,534.57 753,534.57 -
FinEx 380,412.00 380,412.00 -
CO 614,828.07 614,828.07 -
Special Appropriations 155,967.27 63,477.73 92,489.54
PS 0.27 0.27 -
MOOE 136,236.07 43,746.53 92,489.54
CO 19,730.93 19,730.93 -
Continuing Appropriations 355,493.82 233,933.54 121,560.28
PS 44,516.80 17,611.13 26,905.67
MOOE 205,542.08 139,152.55 66,389.54
FinEx 216.13 216.13 -
CO 105,218.80 76,953.74 28,265.07
Unreleased Appropriations 221,534.03 99,973.75 121,560.28
PS 36,013.69 9,108.02 26,905.67
MOOE 138,100.79 71,711.25 66,389.54
CO 47,419.55 19,154.48 28,265.07
Agency Specific Budget 90,183.77 82,586.36 7,597.41
PS 15,126.34 9,108.02 6,018.32
MOOE 66,134.42 65,922.63 211.79
CO 8,923.01 7,555.71 1,367.30
Special Purpose Funds 131,273.85 17,387.39 113,886.45
PS 20,887.35 - 20,887.35
MOOE 71,966.37 5,788.63 66,177.74
CO 38,420.12 11,598.76 26,821.36
Pooled Balances 76.41 - 76.41
CO 76.41 - 76.41
Unobligated Allotments 133,959.79 133,959.79 -
PS 8,503.11 8,503.11 -
MOOE 67,441.29 67,441.29 -
FinEx 216.13 216.13 -
CO 57,799.26 57,799.26 -

26
 Unreleased
Source Appropriations Allotments
Appropriation
Agency Specific Budget 124,919.18 124,919.18 -
PS 7,781.38 7,781.38 -
MOOE 63,570.18 63,570.18 -
FinEx 216.13 216.13 -
CO 53,351.50 53,351.50 -
Special Purpose Funds 9,030.67 9,030.67 -
PS 716.10 716.10 -
MOOE 3,871.11 3,871.11 -
CO 4,443.45 4,443.45 -
Automatic Appropriations 9.94 9.94 -
PS 5.63 5.63 -
CO 4.31 4.31 -
Total 5,378,550.23 5,089,466.50 289,083.70

For FY 2020, the SPFs posted an unreleased appropriations of P156.96 billion of which,
P130.26 billion or 82.99 percent pertained to Unprogrammed Appropriations. The unreleased
appropriations from SPFs, by source are shown in Table II-12.

Table II-12 Unreleased Appropriations from

Special Purpose Funds by Source, by Allotment Class
FY 2020
(in million pesos)

Current Year Continuing

Particulars Total Appropriations Appropriations
R. A. No. 11465 R. A. No. 11260
Budgetary Support to GOCCs 2,023.16 1,951.41 71.74
Maintenance and Other Operating Expenses 1,933.16 1,861.41 71.74
Capital Outlays 90.00 90.00 -
Allocation to Local Government Units 8,898.68 6,570.34 2,328.34
Maintenance and Other Operating Expenses 8,527.32 6,198.98 2,328.34
Capital Outlays 371.36 371.36 -
A. Metropolitan Manila Development Authority 371.36 371.36 -
Capital Outlay 371.36 371.36 -
B. Special Shares of LGUs in the Proceeds of
National Taxes 4,900.68 3,078.06 1,822.63
Share in the Utilization and Development of
National Wealth under R.A. Nos. 7160 and
9513 1,293.07 1,280.63 12.44
Share in the Gross Income Taxes paid by all
Businesses and Enterprises within the
ECOZONES pursuant to R.A. No. 7922 13.73 8.70 5.03
Share in Incremental Collections from Value
Added Tax pursuant to R.A. Nos. 7643 and
8424 3,577.18 1,787.91 1,789.27
Share in Value Added Tax in Lieu of Franchise
Tax pursuant to R.A. No. 6632, as amended
by R.A. No. 7953 and R.A. No. 6331, as
amended by R.A. No. 8407 2.07 0.81 1.26
Share in 2% Special Privilege Tax pursuant to
R.A. No. 7156 14.62 - 14.62
C. Local Government Support Fund (MOOE) 1,419.10 1,181.18 237.92
D. Special Shares of LGUs in the Proceeds of Fire
Code Fees (MOOE) 615.46 365.46 250.00
E. Barangay Officials Death Benefits Fund(MOOE) 67.39 49.60 17.79
F. Bangsamoro Autonomous Region in Muslim
Mindanao (MOOE) 1,524.69 1,524.69 -

27
 Current Year Continuing
Particulars Total Appropriations Appropriations
R. A. No. 11465 R. A. No. 11260
Contingent Fund 5,753.72 5,753.72 -
Maintenance and Other Operating Expenses 5,640.36 5,640.36 -
Capital Outlays 113.36 113.36 -
Miscellaneous Personnel Benefits Fund 4,548.38 197.36 4,351.02
Personnel Services 4,155.81 0.68 4,155.13
Maintenance and Other Operating Expenses 392.57 196.67 195.89
National Disaster Risk Reduction and Management Fund 5,346.88 5,135.44 211.43
Maintenance and Other Operating Expenses 1,564.48 1,353.26 211.22
Capital Outlays 3,782.39 3,782.18 0.21
Pension and Gratuity Fund 127.99 127.99 -
Maintenance and Other Operating Expenses 127.99 127.99 -
Unprogrammed Appropriations/Fund 130,257.23 23,333.32 106,923.91
Personnel Services 16,732.43 0.20 16,732.22
Maintenance and Other Operating Expenses 63,370.54 - 63,370.54
Capital Outlays 50,154.26 23,333.12 26,821.15
Support to Foreign-Assisted Projects 50,731.16 23,333.12 27,398.04
Maintenance and Other Operating Expenses 826.90 - 826.90
Capital Outlays 49,904.26 23,333.12 26,571.15
Risk Management Program (MOOE) 6,272.51 - 6,272.51
General Fund Adjustments for the Share of the
ARMM pursuant to R.A. No. 9054 (MOOE) 229.82 - 229.82
General Fund Adjustments for Forex Fluctuation 200.00 - 200.00
Maintenance and Other Operating Expenses 150.00 - 150.00
Capital Outlays 50.00 - 50.00
Refund of the Service Development Fee for the
Right to Develop the Nampedai Property in
Tokyo, Japan (MOOE) 210.58 - 210.58
Prior Year’s LGU Shares (MOOE) 422.48 - 422.48
Provision for Payment of Arrears of LTO-IT
Service (MOOE) 8,258.26 - 8,258.26
For Payment of Pension Arrearages (PS) 11,732.22 - 11,732.22
Pension and Gratuity (PS) 0.20 0.20 -
Northrail-Southrail Linkage Project Phase I –
Payment of Outstanding Obligations (CO) 200.00 - 200.00
Implementation of the Proposed National
Government Rightsizing Program (PS) 5,000.00 - 5,000.00
Rice Competitiveness Enhancement Fund (MOOE) 1,000.00 - 1,000.00
For the Implementation of the Organic Law for the
Bangsamoro Region in Muslim Mindanao
(MOOE) 28,000.00 - 28,000.00
For the Implementation of the Universal Health
Care (MOOE) 18,000.00 - 18,000.00
Total 156,956.04 43,069.59 113,886.45

The DepEd, DILG and DOH topped the departments/offices with unreleased appropriations of
P5.73 billion, P5.18 billion and P4.16 billion, respectively. Table II-13 shows the unreleased
balances of appropriations of top ten departments/offices for FY 2020.

Table II-13 Top Ten Departments/Offices with Highest Unreleased Appropriations

FY 2020
(in million pesos)

Percent
Department/Office/Particulars Amount
Distribution
Education 5,731.51 1.98
Interior and Local Government 5,180.40 1.79
Health 4,160.08 1.44

28
 Percent
Department/Office/Particulars Amount
Distribution
Agriculture 3,720.96 1.29
Public Works and Highways 3,715.34 1.29
State Universities and Colleges 3,317.50 1.15
Environment and Natural Resources 2,424.51 0.84
National Defense 1,813.09 0.63
Other Executive Offices 1,279.28 0.44
Transportation 1,202.38 0.42
Other Departments/Offices 3,656.42 1.26
Unreleased Appropriations for Special Purpose
Funds, Pooled Balances and Special
Appropriations 252,882.25 87.48
Special Purpose Funds 156,956.04
Pooled Balances 3,436.67
Special Appropriations 92,489.54
Total 289,083.73 100.00

The balance of current year’s appropriations of P167.52 billion, comprised of the new general
appropriations of P75.03 billion and special appropriations of P92.49 billion, was reverted at
the end of the fiscal year pursuant to Section 60 of the General Provisions of R.A. No. 11465,
the GAA for FY 2020.

However, the unreleased balances of the new GAA of P51.67 billion consisting of ASB -
P28.58 billion, SPFs (net of UA) – P19.74 billion and Pooled Balances – P3.36 billion, were
restored together with the unreleased special appropriations of P92.49 billion as continuing
appropriations effective February 2, 2021. This is in accordance with the guidelines issued by
the DBM under National Budget Circular No. 585 dated January 26, 2021 pursuant to R. A.
No. 11519 dated December 29, 2020, “An Act Extending the Availability of the
Appropriations under Republic Act No. 11494, Otherwise Known as the “Bayanihan to
Recover as One Act” until June 30, 2021, and R. A. No. 11520 dated December 29, 2020 “An
Act Extending the Availability of the 2020 Appropriations to December 31, 2021, Amending
for the Purpose Section 60 of the General Provisions of R.A. 11465 or the General
Appropriations Act of Fiscal Year 2020”.

As shown in Table II-14 the unreleased current years appropriations decreased by P25.94 billion or
13.41 percent, while the unreleased continuing appropriations increased by P63.90 billion or 110.82
percent.

Table II-14 Comparative Unreleased Appropriations by Source

FYs 2020 and 2019
(in million pesos)

Amount Increase/ (Decrease)

Source
FY 2020 FY 2019 Amount Percent
Current Year Appropriations 167,523.45 193,463.49 (25,940.04) 13.41
New General Appropriations 75,033.91 193,463.49 (118,429.59) 61.22
Agency Specific Budget 28,578.60 68,219.35 (39,640.75) 58.11
Special Account in the General Fund 25.47 - 25.47 100.00
Special Purpose Funds 43,069.59 125,244.15 (82,174.56) 65.61
Pooled Balances (Net of Transfers) 3,360.26 - 3,360.26 100.00
Special Appropriations 92,489.54 - 92,489.54 100.00

29
 Amount Increase/ (Decrease)
Source
FY 2020 FY 2019 Amount Percent
Continuing Appropriations 121,560.28 57,661.60 63,898.68 110.82
Agency Specific Budget 7,597.41 2,155.92 5,441.50 252.40
Special Purpose Funds 113,886.45 55,505.68 58,380.77 105.18
Pooled Balances (Net of Transfers) 76.41 - 76.41 100.00
Total 289,083.73 251,125.10 37,958.63 15.12

Obligations – P4.872 trillion

Obligations are acts of duly authorized officials which bind the government to the immediate
or eventual payment of a sum of money. Obligations may also be referred to as commitments
that encompass possible future liabilities based on current contractual agreements.

For FY 2020, the total obligations incurred amounted to P4.872 trillion, which represents 95.74
percent of the total allotments of P5.089 trillion. Of the total obligations, P4.853 trillion or
99.61 percent was covered by allotments, while P19.07 billion was not covered by allotments.

The total obligations consists of P1.218 trillion or 25.00 percent for PS, P1.991 trillion or 40.86
percent for MOOE, P399.57 billion or 8.20 percent for FinEx, and P1.264 trillion or 25.94
percent for CO. Chart II-4 shows the comparative obligations by allotment class for FYs 2020
and 2019.

Chart II-4 Comparative Obligations, by Allotment Class

FYs 2020 and 2019
(in billion pesos)

2,400.00

₱1,990.72
2,000.00

1,600.00
₱1,412.63
₱1,218.03 ₱1,264.09
1,200.00 ₱1,142.58 ₱1,160.91

800.00

₱399.57 ₱388.64
400.00

-
PS MOOE FinEx CO

FY 2020 FY 2019

The total obligations registered an increment of P767.66 billion or 18.70 percent over the
previous year figure of P4.105 trillion. It consists of P4.669 trillion or 95.83 percent charged
to current year appropriations, and P203.35 billion or 4.17 percent to continuing appropriations.
The charges to the current year appropriations includes P48.74 billion sourced from the special

30
appropriations under R.A. No. 11494. Table II-15 shows the obligations, by source for FYs
2020 and 2019.

Table II-15 Comparative Obligations, by Source

FYs 2020 and 2019
(in million pesos)

Amount Increase/ (Decrease)

Source
FY 2020 FY 2019 Amount Percent
Current Year Appropriations 4,669,064.00 3,953,004.76 716,059.23 18.11
New General Appropriations 2,803,644.83 2,397,402.13 406,242.70 16.95
Agency Specific Budget 2,168,155.30 1,933,420.89 234,734.41 12.14
Special Account in the General
Fund 9,124.79 3,119.75 6,005.04 192.48
Special Purpose Funds 626,364.70 460,861.48 165,503.26 35.91
Automatic Appropriations 1,816,679.44 1,555,602.24 261,076.80 16.78
Special Appropriations 48,739.73 - 48,739.73 100.00
Continuing Appropriations 203,350.04 151,751.98 51,598.06 34.00
Unreleased Appropriations 89,234.62 34,359.26 54,875.36 159.71
Unobligated Allotments 114,115.41 117,392.72 (3,277.30) 2.79
Total 4,872,414.03 4,104,756.74 767,657.29 18.70

The DOF, DepEd and DPWH reported the highest obligations with P2.132 trillion or 43.76
percent, P533.67 billion or 10.95 percent, and P467.43 billion or 9.59 percent, respectively.
The DOF obligations includes P980.03 billion for debt service and P648.92 billion for IRA.

Table II-16 shows the top ten departments/offices with highest obligations incurred for FY
2020.

Table II-16 Top Ten Departments/Offices with Highest Obligations

FY 2020
(in million pesos)

Percent
Department/Office Amount
Distribution
Finance 2,132,127.70 43.76
Education 533,674.79 10.95
Public Works and Highways 467,432.22 9.59
Social Welfare and Development 347,294.13 7.13
Interior and Local Government 293,745.54 6.03
National Defense 260,071.04 5.34
Health 176,547.50 3.62
Transportation 115,960.31 2.38
Agriculture 81,034.14 1.66
Other Executive Offices 71,802.30 1.47
Other Departments/Offices 392,724.36 8.06
Total 4,872,414.03 100.00

Overdraft in Allotments – P19.07 billion

Overdraft in allotments are obligations incurred by NGAs not covered by allotments or in

excess of allotments.

31
For FY 2020, total obligations of P19.07 billion was not covered with allotments. This
comprised of PS – P551.88 million, MOOE – P86.14 thousand, FinEx – P18.23 billion, and
CO – P292.73 million.

Table II-17 shows the list of NGAs with incurred overdraft in allotments.

Table II-17 Departments/Office with Overdraft in Allotments

FY 2020
(in thousand pesos)

Department/Office Total PS MOOE FinEx CO

Finance 18,229,869.56 1,745.81 - 18,227,123.76 1,000.00
Bureau of the Treasury 18,228,123.76 - - 18,227,123.76 1,000.00
Bureau of Local Government and
Finance 1,745.81 1,745.81 - - -
Transportation 449,156.20 449,156.20 - - -
Philippine Coast Guard 449,156.20 449,156.20 - - -
Public Works and Highways 293,261.87 1,532.63 - - 291,729.24
Office of the Secretary 293,261.87 1,532.63 - - 291,729.24
Congress of the Philippines 37,286.85 37,286.85 - - -
House of Representatives 29,977.70 29,977.70 - - -
Senate of the Philippines 6,952.49 6,952.49 - - -
Commission on Appointment 356.67 356.67 - - -
Health 37,066.52 37,066.52 - - -
Office of the Secretary 36,829.04 36,829.04 - - -
National Nutrition Council 237.48 237.48 - - -
Social Welfare and Development 14,078.06 14,078.06 - - -
Office of the Secretary 12,022.21 12,022.21 - - -
Presidential Commission for the Urban
Poor 1,820.15 1,820.15
Council for the Welfare of Children 103.19 103.19
Juvenile Justice and Welfare Council 66.72 66.72 - - -
National Commission for Indigenous
People 65.79 65.79 - - -
Trade and Industry 4,636.50 4,550.36 86.14 - -
Technical Education and Skills
Development Authority 3,106.46 3.020.32 86.14 - -
Cooperative Development Authority 1,512.50 1,512.50 - - -
Construction Industry Authority of the
Philippines 17.53 17.53 - - -
Science and Technology 3,796.40 3,796.40 - - -
Philippine Council for Industry and
Energy and Emerging Technology
Research and Development 2,221.73 2,221.73 - - -
Office of the Secretary 1,194.64 1,194.64 - - -
Philippine Council for Health Research
and Development 273.17 273.17 - - -
Philippine Atmospheric, Geophysical
and Astronomical Services
Administration 106.86 106.86 - - -
Education 2,015.25 2,015.25 - - -
National Council for Children’s
Television 2,015.25 2,015.25 - - -
National Defense 525.95 525.95 - - -
Veterans Memorial Medical Center 525.95 525.95 - - -
National Economic Development
Authority 127.30 127.30 - - -
Philippine Statistics Authority 127.30 127.30 - - -
Total 19,071,820.46 551,881.33 86.14 18,227,123.76 292,729.24

32
Personnel Services – P551.88 million

Of the overdraft in PS of P551.88 million, P454.32 million was incurred for payment of salaries
and wages, allowances, hazard and overtime pay, service recognition incentive, terminal leave
benefits and other personnel benefits, while P97.56 million pertained to obligations for
government share in the RLIP of regular and casual/contractual employees, and newly
hired/recruited/promoted uniformed and non-uniformed/civilian personnel. The overdrafts
were incurred due to the deficiency in the amount of budget proposed by some agencies, late
submission to the DBM of the certification of actual unobligated balances and request for
additional funds to cover deficiencies, failure to prepare the required Modification Adjustment
Forms (MAFs), and non-recognition of sub-allotments from the regional office by some of the
operating units.

Of the overdraft in PS for RLIP of P97.56 million, P44.20 million was incurred due to the
remittance of the employers’ share to Government Service Insurance System (GSIS) by NGAs
despite the issuance by the DBM of Circular Letter Nos. 2020-6 and 2020-7 which provide that
the DBM will withdraw the allotments of agencies for RLIP thru the issuance of negative
General Allotment Release Order (GARO) and will directly remit to the GSIS the government
share in the RLIP contribution of all departments, bureaus and agencies of the NG for the period
April 1, 2020 to December 31, 2020.

Maintenance and Other Operating Expenses - P86.14 thousand

The overdraft in MOOE of P86.14 thousand was incurred by the schools under the Technical
Education and Skills Development Authority in Region VIII due to failure to prepare a MAF
to modify its savings from MOOE for payment of retirees’ incentives, other professional
services, repairs and maintenance of machinery and equipment, and traveling expenses.

Financial Expenses - P18.23 billion

The overdraft in FinEx of P18.23 billion for debt service being administered by the BTr was
due to the deficiency in the amounts released by the DBM for payment of interest expenses.
The DBM used the amounts in the BTr's Cash Operations Report (COR) which are net of
discounts. Discounts on the issuances of Treasury Bills are recognized only upon maturity.

Capital Outlay - P292.73 million

Of the P292.73 million overdraft in CO, the DPWH incurred P291.73 million due to the receipt
from the DBM of the negative Special Allotment Release Orders (SAROs) withdrawing
allotments for specific projects which were already obligated by the District Engineering
Offices in Regions I and V in the amount of P246.58 million and P45.15 million, respectively.

The remaining overdraft in CO of P1.00 million represents the deficiency in the amount
released by the DBM to BTr for the net lending requirements to government corporations
reported under BSGC. The DBM used the amounts in the BTr's COR which are rounded in
million pesos.

33
Unobligated Allotments – P236.11 billion

Unobligated allotments refer to the variance between total allotments, excluding allotments
to cover prior year’s overdraft, and obligations covered by allotments.

The FY 2020 unobligated allotments amounting to P236.11 billion consists of: PS – P10.01
billion or 4.24 percent, MOOE – P152.96 billion or 64.78 percent, FinEx – P458.60 million or
0.19 percent and CO – P72.68 billion or 30.78 percent. Table II-18 shows the unobligated
allotments by source and by class.

Table II-18 Unobligated Allotments by Source, by Class

FY 2020
(in million pesos)
Obligations
Unobligated
Source Allotments Covered by
Allotments
Allotments
Grand Total 5,089,456.76 4,853,342.21 236,114.54
PS 1,227,487.33 1,217,480.99 10,006.33
MOOE 2,143,688.66 1,990,723.74 152,964.92
FinEx 381,798.74 381,340.14 458.60
CO 1,336,482.03 1,263,797.34 72,684.69
Current Year’s Appropriations 4,855,532.96 4,649,992.18 205,540.78
PS 1,209,876.20 1,202,624.16 7,252.04
MOOE 2,004,536.11 1,868,432.19 136,103.92
FinEx 381,582.60 381,153.38 429.22
CO 1,259,538.04 1,197,782.45 61,755.60
New General Appropriations 2,986,754.64 2,802,898.70 183,855.94
Agency Specific Budget 2,307,800.12 2,167,409.25 140,390.87
PS 960,846.26 956,406.45 4,439.81
MOOE 757,677.27 673,244.53 84,432.74
FinEx 1,170.60 741.38 429.22
CO 588,105.98 537,016.89 51,089.09
Special Account in the General Fund 9,974.54 9,124.79 849.75
MOOE 3,894.42 3,552.36 342.06
CO 6,080.12 5,572.42 507.69
Special Purpose Funds 668,979.98 626,364.66 42,615.32
PS 192,503.71 189,915.62 2,588.10
MOOE 445,683.33 408,971.62 36,711.71
CO 30,792.94 27,477.42 3,315.52
Automatic Appropriations 1,805,300.60 1,798,353.75 6,946.84
PS 56,525.95 56,302.10 223.86
MOOE 753,534.57 750,021.62 3,512.94
FinEx 380,412.00 380,412.00 -
CO 614,828.07 611,618.03 3,210.04
Special Appropriations 63,477.73 48,739.73 14,738.00
PS 0.27 - 0.27
MOOE 43,746.53 32,642.05 11,104.48
CO 19,730.93 16,097.67 3,633.25
Continuing Appropriations 233,923.80 203,350.04 30,573.76
PS 17,611.13 14,856.83 2,754.30
MOOE 139,152.55 122,291.55 16,861.00
FinEx 216.13 186.76 29.37
CO 76,943.99 66,014.90 10,929.10
Unreleased Appropriations 99,964.01 89,234.62 10,729.38
PS 9,108.02 7,417.88 1,690.14
MOOE 71,711.25 63,928.24 7,783.01
CO 19,144.73 17,888.51 1,256.23
Agency Specific Budget 82,576.61 75,904.78 6,671.83
PS 9,108.02 7,417.88 1,690.14
MOOE 65,922.63 61,745.25 4,177.37
CO 7,545.97 6,741.65 804.32

34
 Obligations
Unobligated
Source Allotments Covered by
Allotments
Allotments
Special Purpose Funds 17,387.39 13,329.84 4,057.55
MOOE 5,788.63 2,182.99 3,605.64
CO 11,598.76 11,146.85 451.91
Unobligated Allotments 133,959.79 114,115.41 19,844.38
PS 8,503.11 7,438.95 1,064.15
MOOE 67,441.29 58,363.31 9,077.98
FinEx 216.13 186.76 29.37
CO 57,799.26 48,126.39 9,672.87
Agency Specific Budget 124,919.18 106,079.34 18,839.84
PS 7,781.38 7,187.96 593.41
MOOE 63,570.18 54,762.55 8,807.62
FinEx 216.13 186.76 29.37
CO 53,351.50 43,942.06 9,409.43
Special Purpose Funds 9,030.67 8,036.07 994.59
PS 716.10 250.99 465.12
MOOE 3,871.11 3,600.76 270.36
CO 4,443.45 4,184.33 259.12
Automatic Appropriations 9.94 - 9.94
PS 5.63 - 5.63
CO 4.31 - 4.31

For FY 2020, total unobligated allotments of P236.11 billion consist of P205.54 billion or 87.05
percent from current year’s appropriations, and P30.57 billion or 12.95 percent from continuing
appropriations. Of the unobligated allotments from current year’s appropriations, P183.86
billion or 89.45 percent was funded from the new general appropriations, P6.95 billion or 3.38
percent from automatic appropriations, and P14.74 billion or 7.17 percent from special
appropriations.

This year’s unobligated balance decreased by P17.25 billion or 6.81 percent compared to the
previous year’s amount of P253.36 billion due to the implementation of priority programs and
projects for COVID-19 response.

Table II-19 shows the comparative unobligated allotments by source for FYs 2020 and 2019.

Table II-19 Comparative Unobligated Allotments, by Source

FYs 2020 and 2019
(in million pesos)

Amount Increase/ (Decrease)

Source
FY 2020 FY 2019 Amount Percent
Current Year’s Appropriations 205,540.78 197,976.79 7,563.99 3.82
New General Appropriations 183,855.94 186,604.81 (2,748.87) 1.47
Agency Specific Budget 140,390.87 152,523.75 (12,132.88) 7.95
Special Account in the General
Fund 849.75 5,880.25 (5,030.00) 85.55
Special Purpose Funds 42,615.32 28,200.81 14,414.52 51.11
Automatic Appropriations 6,946.84 11,371.98 (4,425.14) 38.91
Special Appropriations 14,738.00 - 14,738.00 100.00
Continuing Appropriations 30,573.76 55,383.87 (24,810.11) 44.80
Unreleased Appropriations 10,729.38 6,660.88 4,068.50 61.08
Unobligated Allotments 19,844.38 48,722.99 (28,878.61) 59.27
Total 236,114.54 253,360.66 (17,246.11) 6.81

35
Pursuant to Section 60 of the General Provisions of R.A. No. 11465, the GAA for FY 2020,
the unobligated balance for FY 2020 of P236.11 billion was reverted to the unappropriated
surplus of the general fund.

However, such provision was amended by R.A. No.11519 and R. A. No. 11520 which extended
the availability of appropriations under R.A. No 11494 and R.A. No. 11465 until June 30, 2021
and December 31, 2021, respectively. Thus, the unobligated balances from the special
appropriations R.A. No. 11494 of P14.74 billion and the new general appropriations R. A. No.
11465 of P183.01 billion, were restored as continuing appropriations effective February 2,
2021 as implemented under NBC No. 585 dated January 26, 2021. The unobligated balance of
the new general appropriations of P183.01 billion consists of the unobligated balances from
ASB – P140.39 billion and SPFs – P42.62 billion.

For FY 2020, the DOF, DPWH, and DSWD reported the highest amounts of unobligated
balances of P40.29 billion, P35.19 billion, and P31.17 billion, respectively.

Table II-20 shows the top ten departments/offices with unobligated allotments for FY 2020.

Table II-20 Top Ten Departments/Offices with Unobligated Allotments

FY 2020
(in million pesos)

Percent
Department/Office/Particulars Amount
Distribution
Finance 40,294.75 17.07
Public Works and Highways 35,189.98 14.90
Social Welfare and Development 31,166.94 13.20
Health 24,509.06 10.38
Education 22,084.02 9.35
Other Executive Offices 14,560.40 6.17
National Defense 8,652.98 3.66
Agriculture 7,173.03 3.04
Congress of the Philippines 6,949.14 2.94
Interior and Local Government 5,082.54 2.15
Other Departments/Offices 40,451.72 17.13
Total 236,111.54 100.00

Disbursements – P4.316 trillion

Disbursements represent the actual amounts spent or paid during a given period in currency,
thru issuance of checks/Advice to Debit Account (ADA)/Tax Remittance Advice (TRA), direct
payment abroad thru withdrawal application from the loan account, and outright deductions
from claims.

For FY 2020, total disbursements posted at P4.316 trillion, representing 88.58 percent of the
total obligations of P4.872 trillion, of which P4.184 trillion was for payment of obligations
from current year’s appropriations, and P132.20 billion from continuing appropriations.

The disbursements by allotment class comprise of: PS – P1.191 trillion or 27.60 percent,
MOOE – P1.819 trillion or 42.15 percent, FinEx – P399.22 billion or 9.25 percent, and CO –

36
P906.27 billion or 21.00 percent. Table II-21 show the disbursements by source and by
allotment class.

Table II-21 Disbursement by Allotment Class, by Source

FY 2020
(in million pesos)

Current Year Continuing

Allotment Class Total
Appropriations Appropriations
Total 4,315,742.69 4,183,543.29 132,199.40
PS 1,191,317.54 1,178,423.04 12,894.51
MOOE 1,818,932.44 1,721,353.00 97,579.44
FinEx 399,218.83 399,102.99 115.35
CO 906,274.36 884,664.26 21,610.10

The DOF, DepEd, and DSWD reported the highest amounts of disbursements for payment of
FY 2020 obligations at P2.010 trillion, P492.67 billion and P315.23 billion, respectively. The
DOF disbursements include P980.03 billion for debt service and P648.92 billion for IRA.

Table II-22 presents the disbursement of top ten departments/offices for FY 2020.

Table II-22 Disbursement of Top Ten Departments/Offices

FY 2020
(in million pesos)

Percent
Department/Office/Particulars Amount
Distribution
Finance 2,009,868.61 48.66
Education 492,670.40 11.42
Social Welfare and Development 315,228.52 7.30
Interior and Local Government 283,409.53 6.57
Public Works and Highways 251,942.42 5.84
National Defense 229,396.41 5.32
Health 141,959.49 3.29
State Universities and Colleges 59,284.99 1.37
Other Executive Offices 56,196.30 1.30
Agriculture 52,925.38 1.23
Other Departments/Offices 332,864.64 7.71
Total 4,315,742.69 100.00

Unpaid Obligations – P556.67 billion

Unpaid Obligations represent the balance between total obligations and total disbursements.

For FY 2020, total unpaid obligations of the NG amounted to P556.67 billion or 11.42 percent
of the total obligations of P4.872 trillion. The unpaid obligations consists of: PS – P26.72
billion or 4.80 percent, MOOE – P171.79 billion or 30.86 percent, FinEx – P348.93 million or
0.06 percent and CO – P357.82 billion or 64.28 percent.

Of the total unpaid obligations, P485.52 billion are obligation from the current year’s
appropriations and P71.15 billion from the continuing appropriations.

37
Table II-23 presents the breakdown of unpaid obligations by allotment class, by source.

Table II-23 Unpaid Obligations by Source, by Class

FY 2020
(in million pesos)

Unpaid
Source Obligations Disbursements
Obligations
Grand Total 4,872,414.03 4,315,742.69 556,671.35
PS 1,218,032.88 1,191,317.54 26,715.33
MOOE 1,990,723.82 1,818,932.44 171,791.38
FinEx 399,567.26 399,218.33 348.93
CO 1,264,090.07 906,274.36 357,815.71
Current Year’s Appropriations 4,669,064.00 4,183,543.29 485,520.71
PS 1,203,176.04 1,178,423.04 24,753.01
MOOE 1,868,432.28 1,721,353.00 147,079.27
FinEx 399,380.50 399,102.99 277.52
CO 1,198,075.17 884,664.26 313,410.91
New General Appropriations 2,803,644.83 2,338,979.66 464,665.17
Agency Specific Budget 2,168,155.30 1,764,618.54 403,536.76
PS 956,860.69 938,783.26 18,077.42
MOOE 673,244.62 568,895.80 104,348.82
FinEx 741.38 463.86 277.52
CO 537,308.62 256,475.62 280,833.00
Special Account in the General Fund 9,124.79 3,426.69 5,698.09
MOOE 3,552.36 2,515.70 1,036.66
CO 5,572.42 910.99 4,661.43
Special Purpose Funds 626,364.72 570,934.42 55,430.32
PS 189,915.70 184,680.89 5,234.81
MOOE 408,971.62 378,611.30 30,362.32
CO 27,477.42 7,642.24 19,835.19
Automatic Appropriations 1,816,679.44 1,805,968.67 10,710.77
PS 56,399.66 54,958.89 1,440.77
MOOE 750,021.62 746,691.75 3,329.87
FinEx 398,639.13 398,639.13 -
CO 611,619.03 605,678.91 5,940.13
Special Appropriations 48,739.73 38,594.96 10,144.76
MOOE 32,642.05 24,638.45 8,003.60
CO 16,097.67 13,956.51 2,141,16
Continuing Appropriations 203,350.04 132,199.40 71,150.64
PS 14,856.83 12,894.51 1,962.32
MOOE 122,291.55 95,579.44 24,712.11
FinEx 186.76 115.35 71.41
CO 66,014.90 21,610.10 44,404.80
Unreleased Appropriations 89,234.62 65,304.73 23,929.90
PS 7,417.88 5,687.75 1,730.13
MOOE 63,928.24 53,656.60 10,271.64
CO 17,888.51 5,960.38 11,928.13
Agency Specific Budget 75,904.78 59,358.54 16,546.24
PS 7,417.88 5,687.75 1,730.13
MOOE 61,745.25 51,575.24 10,170.02
CO 6,741.65 2,095.56 4,646.10
Special Purpose Funds 13,329.84 5,946.19 7,383.66
MOOE 2,182.99 2,081.36 101.62
CO 11,146.85 3,684.82 7,282.03
Unobligated Allotments 114,115.41 66,894.67 47,220.74
PS 7,438.95 7,206.76 232.19
MOOE 58,363.31 43,922.84 14,440.46
FinEx 186.76 115.35 71.41
CO 48,126.39 15,649.72 32,476.67
Agency Specific Budget 106,079.34 62,039.99 44,039.35
PS 7,187.96 6,961.42 226.54
MOOE 54,762.55 41,338.92 13,423.63
FinEx 186.76 115.35 71.41
CO 43,942.06 13,624.30 30,317.77

38
 Unpaid
Source Obligations Disbursements
Obligations
Special Purpose Funds 8,036.07 4,854.69 3,181.39
PS 250.99 245.34 5.65
MOOE 3,600.76 2,583.93 1,016.83
CO 4,184.33 2,025.42 2,158.91
Automatic Appropriations 0.00 0.00 0.00
PS 0.00 0.00 0.00

The following departments/offices reported the highest unpaid obligations: DPWH – P215.49
billion or 38.71 percent, DOTr – P73.09 billion or 13.13 percent, and DepEd – P41.00 billion
or 7.37 percent. Table II-24 shows the top ten departments/offices with unpaid obligations.

Table II-24 Top Ten Department/Office Unpaid Obligations

FY 2020
(in million pesos)

Percent
Department/Office/Particulars Amount
Distribution
Public Works and Highways 215,489.80 38.71
Transportation 73,091.09 13.13
Education 41,004.39 7.37
Health 34,592.01 6.21
Finance 32,259.09 5.79
Social Welfare and Development 32,065.61 5.76
National Defense 30,674.63 5.51
Agriculture 28,108.76 5.05
Other Executive Offices 15,606.00 2.80
Interior and Local Government 10,336.00 1.86
Other Departments/Offices 43,443.96 7.80
Total 556,671.35 100.00

Part VI, Volume II of this Report presents The Statement of Appropriations, Allotments,
Obligations, Disbursements and Balances for FY 2020, by department/office and by agency.

Appropriations and Allotments for Foreign-Assisted Projects

For FY 2020, the appropriations and allotments for foreign-assisted projects (FAPs) posted at
P117.32 billion and P93.04 billion, respectively. The total appropriations of P117.32 billion
were funded from the loan proceeds of P88.25 billion and the government counterpart of
P29.07 billion.

Appropriations – P117.32 billion

Of the total current year appropriations for FAPs, P73.51 billion or 62.66 percent was
appropriated under the ASB of the implementing departments/agencies concerned, and P43.81
billion or 37.34 percent from the following SPFs: UA-SFAPs – P41.16 billion, BSGC – P2.30
billion and ALGU – P355.34 million.

The DOTr received the highest amount of P55.57 billion, followed by the DPWH and DOH
with P21.90 billion and P6.57 billion, respectively.

39
Table II-25 shows the appropriations for FAPs, by department/office, by source, and by
allotment class.

Table II-25 Appropriations for Foreign-Assisted Projects,

by Department/Office, by Source, by Allotment Class
FY 2020
(in million pesos)

Maintenance
Personnel and Other Capital
Department/Office Total
Services Operating Outlay
Expenses
Current Year Appropriations 117,324.46 32.48 14,906.68 102,385.31
Agency Specific Budget 73,510.91 32.48 6,898.98 66,579.46
Transportation 47,719.62 - 3,297.01 44,422.62
Public Works and Highways 20,057.66 - - 20,057.66
Agriculture 2,489.01 - 1,009.59 1,479.42
Environment and Natural Resources 1,178.37 - 563.92 614.44
Social Welfare and Development 1,000.00 - 1,000.00 -
Agrarian Reform 960.02 22.48 936.15 1.39
Trade and Industry 60.88 - 56.95 3.93
Other Executive Offices 28.56 10.00 18.56 -
Interior and Local Government 16.80 - 16.80 -
Special Purpose Funds 43,813.55 - 8,007.70 35,805.85
Unprogrammed Appropriations - SFAPs 41,157.06 - 5,706.55 35,450.51
Unallocated 23,333.12 - - 23,333.12
Transportation 7,848.95 - - 7,848.95
Health 6,573.91 - 4,202.98 2,370.94
Public Works and Highways 1,844.47 - - 1,844.47
Social Welfare and Development 673.21 - 673.21 -
Finance 617.19 - 617.19 -
Trade and Industry 207.99 - 165.08 42.91
Other Executive Office 58.21 - 48.08 10.13
Budgetary Support to GOCCs 2,301.15 - 2,301.15 -
Finance 2,301.15 - 2,301.15 -
National Irrigation Administration 2,293.15 - 2,293.15 -
Philippine Rice Research Institute 8.00 - 8.00 -
Allocation to Local Government Units -
MMDA 355.34 - - 355.34
Total 117,324.46 32.48 14,906.68 102,385.31

Allotments – P93.04 billion

Of the amount appropriated, P93.04 billion or 79.30 percent was released to the implementing
departments/agencies broken down by allotment class as follows: PS – P22.48 million, MOOE
– P14.42 billion, and CO – P78.60 billion.

Among the departments/offices, the DOTr received the highest allotments of P55.49 billion,
followed by the DPWH and DOH with P21.52 billion and P6.57 billion, respectively.

Table II-26 shows the allotments for FAPs, by department/office, by source, and by allotment
class.

40
 Table II-26 Allotments for Foreign-Assisted Projects,
by Department/Office, by Source, by Allotment Class
FY 2020
(in million pesos)

Maintenance
Personnel and Other Capital
Department/Office Total
Services Operating Outlay
Expenses
Current Year Appropriations 93,038.72 22.48 14,416.68 78,599.57
Agency Specific Budget 72,558.29 22.48 6,408.98 66,126.84
Transportation 47,645.58 - 3,297.01 44,348.57
Public Works and Highways 19,679.08 - - 19,679.08
Agriculture 2,489.01 - 1,009.59 1,479.42
Environment and Natural Resources 1,178.37 - 563.92 614.44
Social Welfare and Development 1,000.00 - 1,000.00 -
Agrarian Reform 460.02 12.48 446.15 1.39
Trade and Industry 60.88 - 56.95 3.93
Other Executive Offices 28.56 10.00 18.56 -
Interior and Local Government 16.80 - 16.80 -
Special Purpose Funds 20,480.43 - 8,007.70 12,472.73
Unprogrammed Appropriations - SFAPs 17,823.94 - 5,706.55 12,117.39
Transportation 7,848.95 - - 7,848.95
Health 6,573.91 - 4,202.98 2,370.94
Public Works and Highways 1,844.47 - - 1,844.47
Social Welfare and Development 673.21 - 673.21 -
Finance 617.19 - 617.19 -
Trade and Industry 207.99 - 165.08 42.91
Other Executive Office 58.21 - 48.08 10.13
Budgetary Support to GOCCs 2,301.15 - 2,301.15 -
Finance 2,301.15 - 2,301.15 -
National Irrigation Administration 2,293.15 - 2,293.15 -
Philippine Rice Research Institute 8.00 - 8.00 -
Allocation to Local Government Units -
MMDA 355.34 - - 355.34
Total 93,038.72 22.48 14,416.68 78,599.57

Unreleased Appropriations – P24.28 billion

The unreleased balance of appropriations for FAPs of P24.28 billion represents the difference
between the total appropriations of P117.32 billion and the total allotments of P93.04 billion.
Table II-27 presents the unreleased appropriations by department/office, by source, and by
allotment class.

41
 Table II-27 Unreleased Appropriations for Foreign-Assisted Projects,
by Department/Office, by Source, by Allotment Class
FY 2020
(in million pesos)

Maintenance
Personnel and Other Capital
Department/Office Total
Services Operating Outlay
Expenses
Current Year Appropriations 24,285.74 10.00 490.00 23,785.74
Agency Specific Budget 952.62 10.00 490.00 452.62
Agrarian Reform 500.00 10.00 490.00 -
Public Works and Highways 378.58 - - 378.58
Transportation 74.04 - - 74.04
Special Purpose Funds 23,333.12 - - 23,333.12
Unprogrammed Appropriations - SFAPs 23,333.12 - - 23,333.12
Unallocated 23,333.12 - - 23,333.12
Total 24,285.74 10.00 490.00 23,785.74

The Statement of Appropriations, Allotments and Balances (SAAB) for FAPs are presented
in Part VI, Volume II of this Report.

Coronavirus Disease 2019 (COVID-19) Response

Appropriations, Allotments, Obligations, Disbursements, and Balances

For FY 2020, the NG had a total appropriations for COVID-19 response of P601.83 billion,
allotments of P505.90 billion, leaving an unreleased appropriations of P95.93 billion. The
obligations incurred posted at P460.08 billion, leaving an unobligated balance of allotments of
P45.83 billion. Disbursements reported totaled P406.00 billion, leaving an unpaid obligations
of P54.08 billion. Chart II-5 shows the appropriations, allotments, obligations and
disbursements for COVID-19 in FY 2020.

Chart II-5 Appropriations, Allotments, Obligations, Disbursements and Balances

FYs 2020
(in billion pesos)
700.00
₱601.83
600.00
₱505.90
500.00 ₱460.08
₱406.00
400.00

300.00

200.00
₱95.93
100.00 ₱45.83 ₱54.08

-
Appropriations Allotments Obligations
Disbursements Unreleased Appropriations Unobligated Allotments
Unpaid Obligations

42
Source of Funding

The FY 2020 total appropriations for COVID-19 response of P601.83 billion, consists of
current year’s new general appropriations of P393.76 billion, continuing appropriations of
P52.10 billion, and special appropriations of P155.97 billion. Table II-28 shows the sources of
the new general appropriations and continuing appropriations.
Table II-28 Sources of the New General Appropriations and Continuing Appropriations
FY 2020
(in million pesos)

Amount
Particulars Current Continuing
Total
Appropriations Appropriations
Pooled Balances 266,472.46 50,455.28 316,927.74
Additional funds from NGAs Unobligated
Balances – Agency Specific Budget 20,634.80 1,648.48 22,283.28
Additional funds from Special Purpose Funds 106,652.23 - 106,652.23
Total Funds from the New General
Appropriations and Continuing Appropriations 393,759.49 52,103.76 445,863.25

Table II-29 shows the detailed funding for COVID-19 response by source, by allotment class.

Table II-29 Detailed Funding for COVID-19 Response by Source, by Allotment Class
FY 2020
(in million pesos)

Amount
Particulars Current Continuing
Total
Appropriations Appropriations
Transfers to Pooled Balances 266,472.46 50,455.28 316,927.74
Personnel Services 672.54 1,094.18 1,766.72
Maintenance and Other Operating Expenses 61,970.31 14,812.95 76,783.27
Financial Expenses 0.40 179.43 179.83
Capital Outlay 203,829.20 34,368.72 238,197.93
Modifications - - -
Personnel Services 137.09 621.41 758.50
Maintenance and Other Operating Expenses 190,378.30 33,850.33 224,228.64
Financial Expenses (0.40) (179.43) (179.83)
Capital Outlay (190,515.00) (34,292.31) (224,807.31)
Adjusted Pooled Balances 266,472.46 50,455.28 316,927.74
Personnel Services 809.63 1,715.59 2,525.22
Maintenance and Other Operating Expenses 252,348.62 48,663.28 301,011.90
Financial Expenses - - -
Capital Outlay 13,314.21 76.41 13,390.62
Agency Specific Budget 222,571.31 50,455.28 273,026.60
Personnel Services 809.63 1,715.59 2,525.22
Maintenance and Other Operating Expenses 211,447.48 48,663.28 260,110.76
Financial Expenses - - -
Capital Outlay 10,314.21 - 10,390.62
Special Purpose Funds 43,901.14 - 43,901.14
Personnel Services - - -
Maintenance and Other Operating Expenses 40,901.14 - 40,901.14
Financial Expenses - - -
Capital Outlay 3,000.00 - 3,000.00
Additional funds from NGAs Unobligated Balances –
Agency Specific Budget 20,634.80 1,648.48 22,283.28
Personnel Services 35.00 - 35.00
Maintenance and Other Operating Expenses 19,398.26 1,647.98 21,046.24
Financial Expenses 0.20 - 0.20
Capital Outlay 1,201.34 0.50 1,201.84

43
 Amount
Particulars Current Continuing
Total
Appropriations Appropriations
Additional funds from Special Purpose Funds 106,652.23 - 106,652.23
Personnel Services 1,708.88 - 1,708.88
Maintenance and Other Operating Expenses 96,663.39 - 96,663.39
Capital Outlay 8,279.96 - 8,279.96
Total Funds from the New GAA and Continuing
Appropriations 393,759.49 52,103.76 445,863.25
Personnel Services 2,553.51 1,715.59 4,269.10
Maintenance and Other Operating Expenses 368,410.27 50,311.26 418,721.53
Financial Expenses 0.20 - 0.20
Capital Outlay 22,795.51 76.91 22,872.42
Special Appropriations - R.A. 11494 155,967.27 - 155,967.27
Personnel Services 0.27 - 0.27
Maintenance and Other Operating Expenses 136,236.07 - 136,236.07
Financial Expenses - - -
Capital Outlay 19,730.93 - 19,730.93
Total Funds for COVID-19 Response 549,726.76 52,103.76 601,830.52
Personnel Services 2,553.78 1,715.59 4,269.36
Maintenance and Other Operating Expenses 504,646.34 50,311.26 554,957.61
Financial Expenses 0.20 - 0.20
Capital Outlay 42,526.44 76.91 42,603.35

Based on the emergency powers granted to President Duterte under the Bayanihan to Heal as
One Act (BHOA), R.A. No. 11469, the unobligated balances from current and continuing
appropriations totaling P50.46 billion were withdrawn and the unreleased appropriations of
P266.47 billion were transferred to the pooled balances to address the COVID 19 pandemic
response funding requirements. Table II-30 shows the transfers to pooled balances, by source
and by allotment class.

Table II-30 Transfers to Pooled Balances, by Source, by Allotment Class

FY 2020
(in million pesos)

Transfer to
Unreleased Unobligated
Source Pooled
Appropriations Allotments
Balances
Total 259,690.92 57,236.82 316,927.74
Personnel Services 1,609.99 156.73 1,766.72
Maintenance and Other Operating Expenses 45,573.73 31,209.53 76,783.27
Financial Expenses 0.90 178.92 179.83
Capital Outlay 212,506.30 25,691.63 238,197.93
New General Appropriations – R.A. No 11465 226,968.95 39,503.51 266,472.46
Personnel Services 648.11 24.43 672.54
Maintenance and Other Operating Expenses 37,642.63 24,327.68 61,970.31
Financial Expenses 0.40 - 0.40
Capital Outlay 188,677.81 15,151.39 203,829.20
Continuing Appropriations – R.A. No. 11260 32,721.98 17,733.31 50,455.28
Personnel Services 961.88 132.30 1,094.18
Maintenance and Other Operating Expenses 7,931.10 6,881.85 14,812.95
Financial Expenses 0.50 178.92 179.43
Capital Outlay 23,828.49 10,540.24 34,368.72

Table II-31 shows the unobligated allotments withdrawn and unreleased appropriations
transferred to Pooled Balances, by department/office/special purpose fund, by appropriation
act.

44
 Table II-31 Unreleased and Unobligated Appropriations Transferred to Pooled Balances, by
Department/Office/Special Purpose Fund, by Appropriation Act
FY 2020
(in million pesos)

New General Appropriations – Continuing Appropriations –

Department/Office/
R.A. No. 11465 R.A. No. 11260
Special Purpose Fund
Unreleased Unobligated Total Unreleased Unobligated Total
Office of the President 28.09 - 28.09 - 1,045.65 1,045.65
Office of the Vice President 12.25 50.71 62.96 - 6.79 6.79
Agrarian Reform - 382.20 382.20 - 36.71 36.71
Agriculture 2,848.54 2,437.08 5,285.62 - 168.99 168.99
Budget and Management - 5.09 5.09 17.20 84.80 102.00
Education 10,428.47 5,908.59 16,337.06 514.13 2,564.10 3,078.23
State Universities and Colleges 7,693.10 1,975.48 9,668.58 21.11 405.90 427.01
Energy - 140.43 140.43 - - -
Environment and Natural
Resources 464.64 1,436.80 1,901.44 - 74.21 74.21
Finance 1,763.92 228.75 1,992.66 - 256.22 256.22
Foreign Affairs 802.58 1,365.29 2,167.86 63.00 859.66 922.66
Health - 33.10 33.10 - 0.08 0.08
Human Settlements and Urban
Development 250.50 24.10 274.60 - - -
Information and
Communications Technology 6,190.92 196.26 6,387.18 1.466.67 117.62 1,584.28
Interior and Local Government 3,441.61 2,884.10 5,725.71 1,034.39 2,126.83 3,161.22
Justice 94.30 340.50 434.80 25.20 135.58 160.78
Labor and Employment 23.22 138.57 161.80 253.97 8.60 262.57
National Defense 9,866.81 2,671.13 12,537.94 9,480.47 575.32 10,055.79
Public Works and Highways 147,288.78 3,217.73 150,506.51 10,651.14 3,382.93 14,034.07
Science and Technology - 1,279.20 1,279.20 - 135.78 135.78
Social Welfare and
Development 91.85 240.70 332.56 999.24 202.92 1,202.16
Tourism 827.40 792.38 1,619.78 22.09 154.57 176.67
Trade and Industry 4,053.00 1,092.78 5,145.78 - 3.25 3.25
Transportation and
Communications 8,837.32 7,645.76 16,483.08 2,294.23 4,137.84 6,432.07
National Economic
Development Authority 484.31 246.00 730.31 - 38.73 38.73
Philippine Communications
Operations Office 25.00 161.30 186.30 13.32 31.02 44.34
Legislative- Executive
Development Advisory
Council 0.25 0.03 0.28 - - -
Civil Service Commission - 15.79 15.79 - 2.60 2.60
Commission on Human Rights 37.00 2.66 39.66 - - -
Other Executive Offices 15,243.50 534.52 15,778.02 1,555.94 897.88 2,453.82
Total, Departments/ Offices 220,797.37 38,847.00 255,644.37 28,412.10 17,454.56 45,866.66
Special Purpose Funds 6,171.58 4,656.50 10,828.09 4,309.88 278.75 4,588.63
Budgetary Support to
Government Corporations 5,495.13 - 5,495.13 56.22 211.76 267.98
Assistance to Local Government
Units 676.45 4,656.50 5,332.96 4,253.66 66.99 4,320.65
Metropolitan Manila
Development Authority 676.45 4,656.50 5,332.96 - 66.99 66.99
Special Shares of LGUs in the
Proceeds of National Taxes - - - 4,252.80 - 4,252.80
Bangsamoro Autonomous
Region in Muslim Mindanao - - - 0.86 - 0.86
Grand Total 226,968.95 39,503.51 266,472.46 32,721.98 17,733.31 50,455.28

45
In addition to the pooled balances of P316.93 billion, P22.28 billion sourced from the current
year’s unobligated Agency Specific Budget (ASB) of the NGAs were also used to augment the
funding requirements for the priority programs and projects for COVID-19 response. Table II-
32 shows the additional funding sourced from the unobligated ASB, by source, by
department/office, by allotment class.

Table II-32 Additional Appropriations for COVID 19 Response Sourced from Unobligated
ASB, by Source, by Department/Office, by Allotment Class
FY 2020
(in million pesos)

Amount
Source/Department/Office
Total PS MOOE FinEx CO
Grand Total 22,283.28 35.00 21,046.24 0.20 1,201.84
Current Year’s Appropriations 20,634.80 35.00 19,398.26 0.20 1,201.34
New General Appropriations 20,634.80 35.00 19,398.26 0.20 1,201.34
Agency Specific Budget 20,634.80 35.00 19,398.26 0.20 1,,201.34
Education 703.74 - 703.74 - -
Health 305.00 - 100.00 - 205.00
Labor and Employment 5,065.39 - 5,065.19 0.20 -
Defense 341.43 - 209.75 - 131.67
Public Works and Highways 864.67 - - - 864.67
Science and Technology 53.23 - 53.23 - -
Social Welfare and Development 13,098.35 35.00 13,063.35 - -
Trade and Industry 203.00 - 203.00 - -
Continuing Appropriations 1,648.48 - 1,647.98 - 0.50
Agency Specific Budget 1,648.48 - 1,647.98 - 0.50
Education 490.33 - 490.33 - -
Labor and Employment 15.00 - 15.00 - -
Defense 128.09 - 128.09 - -
Social Welfare and Development 964.56 - 964.56 - -
Other Executive Offices 50.50 - 50.00 - 0.50

Moreover, P106.65 billion from the current year’s SPFs were also released to augment the
COVID-19 response funding requirements. The releases from SPFs are: MPBF – P1.71 billion,
NDRRMF – P6.04 billion, UA-Support for Infrastructure Projects and Social Programs –
P97.53 billion, and UA-Support to FAPs – P1.38 billion.

The Special Appropriations of P155.97 billion were sourced from the unutilized automatic
appropriations, and excess revenue collections, as certified by the Bureau of the Treasury
(BTr).

Appropriations – P601.83 billion

The FY 2020 total appropriations for COVID-19 response of P601.83 billion, consists of the
current year’s appropriations of P549.73 billion, and continuing appropriations of P52.10
billion. Current year’s appropriations comprises of new general appropriations of P393.76
billion, and special appropriations of P155.97 billion, while continuing appropriations includes
unreleased appropriations of P51.43 billion, and extended unobligated allotments of P668.92
million. The components of appropriations for COVID-19 response by allotment class are: PS
– P4.27 billion, MOOE – P554.96 billion, FinEx of P0.20 million, and CO – P42.60 billion.

46
Table II-33 shows the appropriations, allotments, obligations and disbursements, by source and
by allotment class.

Table II-33 Appropriations, Allotments, Obligations and Disbursements,

by Source, by Allotment Class
FY 2020
(in million pesos)

Amount
Source
Appropriations Allotments Obligations Disbursements
Grand Total 601,830.52 505,904.30 460,078.48 405,996.61
PS 4,269.36 4,269.36 1,712.63 1,219.64
MOOE 554,957.61 459,107.80 422,201.25 383,701.63
FinEx 0.20 0.20 0.20 -
CO 42,603.35 42,526.94 36,164.40 21,075.34
Current Year’s Appropriations 549,726.76 453,876.96 411,416.87 366,238.54
PS 2,553.78 2,553.78 35.00 -
MOOE 504,646.35 408,796.54 375,217.77 345,163.53
FinEx 0.20 0.20 0.20 -
CO 42,526.44 42,526.44 36,163.90 21,075.01
New General Appropriations 393,759.49 390,399.23 362,677.14 327,643.58
PS 2,553.51 2,553.51 35.00 -
MOOE 368,410.27 365,050.01 342,575.72 320,525.07
FinEx 0.20 0.20 0.20 -
CO 22,795.51 22,795.51 20,066.23 7,118.50
Agency Specific Budget 239,845.86 239,845.86 220,597.58 192,641.97
PS 844.63 844.63 35.00 -
MOOE 227,485.48 227,485.48 209,763.32 190,617.34
FinEx 0.20 0.20 0.20 -
CO 11,515.54 11,515.54 10,799.06 2,024.62
Special Purpose Funds 150,553.37 150,553.37 142,079.56 135,001.61
PS 1,708.88 1,708.88 - -
MOOE 137,564.53 137,564.53 132,812.39 129,907.73
CO 11,279.96 11,279.96 9,267.17 5,093.88
Pooled Balances 3,360.26 - - -
MOOE 3,360.26 - - -
Special Appropriations 155,967.27 63,477.73 48,739.73 38,594.96
PS 0.27 0.27 - -
MOOE 136,236.07 43,746.53 32,642.05 24,638.45
CO 19,730.93 19,730.93 16,097.67 13,956.51
Continuing Appropriations 52,103.76 52,027.35 48,661.61 39,758.08
PS 1,715.59 1,715.59 1,677.63 1,219.64
MOOE 50,311.26 50,311.26 46,983.48 38,538.11
CO 76.91 0.50 0.50 0.33
Unreleased Appropriations 51,434.84 51,358.43 48,054.51 39,485.11
PS 1,715.59 1,715.59 1,677.63 1,219.64
MOOE 49,642.84 49,642.84 46,376.88 38,265.47
CO 76.41 - - -
Agency Specific Budget 51,358.43 51,358.43 48,054.51 39,485.11
PS 1,715.59 1,715.59 1,677.63 1,219.64
MOOE 49,642.84 49,642.84 46,376.88 38,265.47
Pooled Balances 76.41 - - -
CO 76.41 - - -
Unobligated Allotments 668.92 668.92 607.10 272.96
MOOE 668.42 668.42 606.60 272.63
CO 0.50 0.50 0.50 0.33
Agency Specific Budget 668.92 668.92 607.10 272.96
MOOE 668.42 668.42 606.60 272.63
CO 0.50 0.50 0.50 0.33

47
Allotments – P505.90 billion

The total allotments for COVID-19 response of P505.90 billion, consists of the releases from
the current year’s appropriations of P453.88 billion or 89.72 percent and from continuing
appropriations of P52.03 billion or 10.28 percent. Of the allotments from current year’s
appropriations, P390.40 billion came from the new general appropriations, and P63.48 billion
from special appropriations, while the allotted continuing appropriations of P52.03 billion was
funded from the unreleased appropriations of P51.36 billion, and the extended unobligated
allotments of P668.92 million.

Of the total allotments of P390.40 billion from the current year’s new general appropriations,
P239.85 billion or 61.44 percent was ASB, and P150.55 billion or 38.56 percent was SPFs.
The allotments from SPFs of P150.55 billion were released from: BSGC – P1.00 billion,
ALGU-Local Government Support Fund – P37.11 billion, Contingent Fund – P600.06 million,
MPBF – P1.71 billion, NDRRMF – P6.04 billion, UA-SIPSP – P97.53 billion, and UA-SFAPs
– P6.57 billion.

The components of the total allotments for COVID-19 response by allotment class are: PS –
P4.27 billion, MOOE – P459.11 billion, FinEx – P0.20 million, and CO – P42.53 billion.

Unreleased Appropriations – P95.93 billion

The difference between the total appropriations of P601.83 billion and the total allotments of
P505.90 billion represents the unreleased appropriations of P95.93 billion, of which P95.85
billion was from the current appropriations, and P76.41 million from continuing
appropriations. The unreleased balance of appropriations from the current year’s appropriations
consists of the balances from pooled balances of P3.36 billion and special appropriations of
P92.49 billion. The unreleased continuing appropriations from pooled balances of P76.41
million under R.A. 11260 was reverted to the unappropriated surplus of the general fund.

Table II-34 shows the status of pooled balances, by source and by allotment class.

Table II-34 Status of Pooled Balances, by Source, by Allotment Class

FY 2020
(in million pesos)

Transfer to/
Pooled Net Pooled
Source Releases to
Balances Balances
NGAs
Total 316,927.74 (313,491.07) 3,436.67
Personnel Services 2,525.22 (2,525.22) -
Maintenance and Other Operating Expenses 301,011.90 (297,651.64) 3,360.26
Financial Expenses - - -
Capital Outlay 13,390.62 (13,314.21) 76.41
New General Appropriations – R.A. No 11465 266,472.46 (263,112.20) 3,360.26
Personnel Services 809.63 (809.63) -
Maintenance and Other Operating Expenses 252,348.62 (248,988.36) 3,360.26
Financial Expenses - - -
Capital Outlay 13,314.21 (13,314.21) -
Continuing Appropriations – R.A. No. 11260 50,455.28 (50,378.87) 76.41
Personnel Services 1,715.59 (1,715.59) -
Maintenance and Other Operating Expenses 48,663.28 (48,663.29) -
Financial Expenses - - -
Capital Outlay 76.41 - 76.41

48
Pursuant to Section 60 of the General Provisions of R.A. No. 11465, the GAA for FY 2020,
the unreleased balance for FY 2020 of P95.85 billion was reverted to the unappropriated
surplus of the general fund.

However, such provision was amended by R.A. No.11519 and R. A. No. 11520 which extended
the availability of appropriations under R.A. No 11494 and RA. No. 11465 until June 30, 2021
and December 31, 2021, respectively. Thus, the unreleased balances from the special
appropriations R.A. No. 11494 of P92.49 billion and the new general appropriations R. A. No.
11465 of P3.36 billion, were restored as continuing appropriations effective February 2, 2021
as implemented under NBC No. 585 dated January 26, 2021.

Obligations – P460.08 billion

Total obligations for COVID-19 response in FY 2020 posted at P460.08 billion, representing
90.94 percent of the total allotments of P505.90 billion. Of the total incurred obligations,
P411.42 billion or 89.42 percent was from the current year’s appropriations, and P48.66 billion
or 10.58 percent from continuing appropriations. The obligations from current year’s
appropriations consist of new general appropriations of P362.68 billion, and special
appropriations of P48.74 billion, while the obligations from continuing appropriations of
P48.66 billion comprised of obligations from the unreleased appropriations of P48.05 billion,
and extended unobligated allotments of P607.10 million.

The components of obligations by allotment class are: PS – P1.71 billion, MOOE – P422.20
billion, FinEx – P0.20 million, and CO – P36.16 billion.

Disbursements – P406.00 billion

Total disbursements for COVID-19 response in FY 2020 registered at P406.00 billion,

accounting for 88.25 percent of the total obligations of P460.08 billion. Of the total
disbursements, P366.24 billion or 90.21 percent was for payment of obligations charged to
current year’s appropriations, while P39.76 billion or 9.79 percent for obligations charged to
continuing appropriations. The disbursements from current year’s appropriations were for
obligations charged to new general appropriations of P327.64 billion, and special
appropriations of P38.59 billion, while from continuing appropriations of P39.76 billion, for
obligations pertaining to the unreleased appropriations of P39.48 billion, and from extended
unobligated allotments of P272.96 million.

The components of disbursements by allotment class are: PS – P1.22 billion, MOOE – P383.70
billion, and CO – P21.08 billion.

Appropriations, Allotments, Obligations and Disbursements,

by Department/Office

Among the departments/offices, the DSWD reported the highest amounts of appropriations and
allotments, obligations and disbursements for the implementation of the Social Amelioration
Programs at P217.42 billion, P201.93 billion, and P185.01 billion, respectively. The DOF
ranked second for the implementation of priority programs and projects of various LGUs for
COVID-19 response and to cover the NG subsidy to some government corporations. Ranking
third is the DOH for the implementation of the COVID-19 Emergency Health Response
Project, which includes the procurement of COVID-19 vaccines. The DA ranked fourth for the

49
implementation of various programs/activities/projects under the Agriculture Stimulus
Package, and the DOLE ranked fifth for the implementation of the COVID-19 Adjustment
Measures Program (CAMP) and Repatriation Programs for the Overseas Filipino Workers,
Tulong Pangkabuhayan para sa Ating Disadvantaged/Displaced Workers (TUPAD) Program,
and various programs and projects to mitigate the adverse impact of COVID-19.

Table II-35 shows the appropriations, allotments, obligations and disbursements, by

department/office.

Table II-35 Appropriations, Allotments, Obligations and Disbursements,

by Department/Office
FY 2020
(in million pesos)

Amount
Department/Office
Appropriations Allotments Obligations Disbursements
Social Welfare and Development 217,417.09 217,417.09 201,934.35 185,010.55
Finance 101,047.18 101,047.18 100,340.83 100,329.83
Health 77,293.14 77,293.14 65,002.43 53,298.34
Agriculture 34,680.22 34,680.22 31,657.27 17,643.32
Labor and Employment 28,982.89 28,982.89 25,194.57 24,593.04
Education 16,405.19 16,405.19 10,514.33 4,927.88
Transportation 10,309.01 10,309.01 10,308.61 9,651.82
Public Works and Highways 6,279.92 6,279.92 5,192.44 2,793.69
Interior and Local Government 4,306.66 4,306.66 3,856.92 3,629.82
Other Executive Offices 3,530.50 3,530.50 1,563.24 1,481.35
National Defense 3,056.18 3,056.18 2,537.79 1,521.22
Trade and Industry 1,303.00 1,303.00 1,029.27 687.22
Foreign Affairs 825.09 825.09 484.20 125.49
State Universities and Colleges 415.00 415.00 408.99 249.82
Science and Technology 53.23 53.23 53.23 53.23
Sub-Total, Departments/Offices 505,904.30 505,904.30 460,078.48 405,996.61
Unreleased Pooled Balances 3,436.67 - - -
Unreleased Special Appropriations 92,489.54 - - -
Grand Total 601,830.52 505,904.30 460,078.48 405,996.61

Unobligated Allotments – P45.83 billion

The unobligated allotments amounting to P45.83 billion represents the difference between the
total allotments of P505.90 billion and total obligations of P460.08 billion. The unobligated
allotments were from the current year’s appropriations of P42.46 billion, and from continuing
appropriations of P3.37 billion. Of the current year’s unobligated allotments, P27.72 billion
was from the new general appropriations, and P14.74 billion from the special appropriations.
Of the unobligated continuing appropriations, P3.30 billion was from the unreleased
appropriations, and P61.82 million from the extended unobligated allotments. The components
of unobligated allotments are: PS – P2.56 billion, MOOE – P36.91 billion, and CO – P6.36
billion.

The unobligated continuing appropriations of P3.37 billion under R.A. 11260 was reverted to
the unappropriated surplus of the general fund.

50
Pursuant to Section 60 of the General Provisions of R.A. No. 11465, the GAA for FY 2020,
the unobligated balance for FY 2020 of P45.83 billion was reverted to the unappropriated
surplus of the general fund.

However, such provision was amended by R.A. No.11519 and R. A. No. 11520 which extended
the availability of appropriations under R.A. No 11494 and RA. No. 11465 until June 30, 2021
and December 31, 2021, respectively. Thus, the unobligated balances from the special
appropriations RA No. 11494 of P14.74 billion and the new general appropriations R. A. No.
11465 of P27.72 billion, were restored as continuing appropriations effective February 2, 2021
as implemented under NBC No. 585 dated January 26, 2021. The unobligated balance of the
new general appropriations of P27.72 billion consists of the unobligated balances from ASB –
P19.25 billion and SPFs – P8.47 billion.

The DSWD and DOH reported the highest amounts of unobligated balances at P15.48 billion
and P12.29 billion, respectively. Table II-36 shows the unobligated allotments, by department/
office.

Table II-36 Unobligated Allotments by Department/Office

FY 2020
(in million pesos)

Amounts
Department/Office Unobligated
Allotments Obligations
Allotments
Social Welfare and Development 217,417.09 201,934.35 15,482.73
Health 77,293.14 65,002.43 12,290.71
Agriculture 34,680.22 31,657.27 3,022.95
Labor and Employment 28,982.89 25,194.57 3,788.32
Education 16,405.19 10,514.33 5,890.86
Public Works and Highways 6,279.92 5,192.44 1,087.48
Other Executive Offices 3,530.50 1,563.24 1,967.26
Finance 101,047.18 100,340.83 706.35
National Defense 3,056.18 2,537.79 518.39
Interior and Local Government 4,306.66 3,856.92 449.74
Trade and Industry 1,303.00 1,029.27 273.73
Foreign Affairs 825.09 484.20 340.89
State Universities and Colleges 415.00 408.99 6.01
Transportation 10,309.01 10,308.61 0.41
Science and Technology 53.23 53.23 0.00
Total 505,904.30 460,078.48 45,825.83

Unpaid Obligations – P54.08 billion

For FY 2020, the unpaid obligations for COVID-19 response amounted to P54.08 billion or
11.75 percent of the total obligations of P460.08 billion. The unpaid obligations were from the
current year’s appropriations of P45.18 billion, and from continuing appropriations of P8.90
billion. Of the current year’s appropriations, P35.03 billion was for obligations from the new
general appropriations, and P10.14 billion from the special appropriations. Of the continuing
appropriations, P8.57 billion was from the unreleased appropriations, and P334.13 million from
the extended unobligated allotments. The components of unpaid obligations by allotment class
are: PS – P492.99 million, MOOE – P38.50 billion, FinEx– P200.00 thousand, and CO –
P15.09 billion.

51
The DSWD and DA reported the highest amounts of unpaid obligations at P16.92 billion and
P14.01 billion, respectively. Table II-37 shows the unpaid obligations, by department/office.

Table II-37 Unpaid Obligations, by Department/Office

FY 2020
(in million pesos)

Amounts
Department/Office Unpaid
Obligations Disbursements
Obligations
Social Welfare and Development 201,934.35 185,010.55 16,923.80
Agriculture 31,657.27 17,643.32 14,013.95
Health 65,002.43 53,298.34 11,704.09
Education 10,514.33 4,927.88 5,586.46
Public Works and Highways 5,192.44 2,793.69 2,398.76
National Defense 2,537.79 1,521.22 1,016.57
Transportation 10,308.61 9,651.82 656.78
Labor and Employment 25,194.57 24,593.04 601.54
Foreign Affairs 484.20 125.49 358.72
Trade and Industry 1,029.27 687.22 342.05
Interior and Local Government 3,856.92 3,629.82 227.10
State Universities and Colleges 408.99 249.82 159.17
Other Executive Offices 1,563.24 1,481.35 81.88
Finance 100,340.83 100,329.83 11.00
Science and Technology 53.23 53.23 -
Total 460,078.48 405,996.61 54,081.86

Off-Budgetary Funds
Off-budgetary Funds refers to collections of agencies authorized by law and deposited in
government depository banks. These funds are used for expenditures which are not part of the
National Expenditure Program. Off-Budgetary Funds are categorized into retained income fund
(RIF) and revolving fund (RF).

As a general rule, all fees, charges, assessments, and other receipts or revenue collected by
departments, offices and agencies of the NG, and as such rates as are now or may be approved
by the appropriate approving authority, shall be deposited to the National Treasury as income
of the GF pursuant to Section 44, Chapter 5, Book VI of Executive Order (E.O.) No. 292, s.
1987, “Instituting the Administrative Code of 1987”, and Section 65 of Presidential Decree
(P.D.) No. 1445 or the Government Auditing Code of the Philippines. However, there are
revenue which are authorized by the Congress to be retained or to be constituted as RIF and
RF, to be deposited in an authorized government depository bank and to be utilized in
accordance with Special Provisions in the GAA for the agency concerned and the rules and
regulations as may be prescribed by the Permanent Committee, composed of the Secretary of
the DOF as Chairman, and the Secretary of DBM and the Chairperson of the Commission on
Audit (COA) as members.

RIF are collections authorized by law to be used directly by NGAs for their operations or for
specific purposes. RF are receipts derived from: (a) rentals for the use of buildings and facilities
or from fees imposed for board and lodging to be used for the MOOE or CO requirements of
said buildings and facilities, subject to the guidelines issued by the agency concerned and to

52
budgeting, accounting and auditing rules and regulations; and (b) other business-type activities
of NGAs including sale of products, which are authorized by law or by the Permanent
Committee to be utilized for the operational expenses of said business-type activities, subject
to the conditions prescribed under the Special Provision of the GAA for the agency concerned
and the rules and regulations as may be prescribed by the Permanent Committee. RF are self-
perpetuating and self-liquidating. All authorized utilizations or expenditures incurred for the
operations of the foregoing activities shall be charged against the RF. In no case shall said fund
be used for the payment of discretionary and representation expenses.

Approved Budget, Utilizations, Disbursements, and Balances

For FY 2020, the NG had a total approved budget of P76.75 billion and utilizations of P47.90
billion, leaving an unutilized budget of P28.85 billion. Disbursements reported totaled P38.13
billion leaving P9.76 billion in unpaid utilizations. Table II-38 shows the approved budget,
utilizations, disbursements, unutilized budget and unpaid utilizations, by source.

Table II-38 Approved Budget, Utilizations, Disbursements,

Unutilized Budget, and Unpaid Utilizations, by Source
FY 2020
(in million pesos)

Retained Income Fund Revolving Fund Total

Particulars
Amount Percent Amount Percent Amount
Approved Budget 64,140.01 83.57 12,609.67 16.43 76,749.68
Utilizations 41,454.90 86.55 6,440.21 13.45 47,895.11
Disbursements 32,993.42 86.52 5,138.60 13.48 38,132.02
Unutilized Budget 22,685.11 78.62 6,169.46 21.38 28,854.57
Unpaid Utilizations 8,461.48 86.67 1,301.61 13.33 9,763.09

Approved Budget – P76.75 billion

The approved budget of P76.75 billion for FY 2020 was sourced from RIF of P64.14 billion
or 83.57 percent, and RF of P12.61 billion or 16.43 percent. Chart II-6 shows the breakdown
of the approved budget by expense classification.

Chart II-6 Approved Budget, by Expense Classification

FY 2020
(in billion pesos)

FinEx
₱0.00
(0.00%)

CO
MOOE ₱17.92
₱48.41 (23.35%)
(63.07%)

PS
₱10.42
(13.58%)

Note: FinEx amount and percent are less than P0.01 billion and 0.01 percent, respectively

53
Of the approved budget sourced from RIF, SUCs reported the highest amount of P28.41 billion
representing 44.29 percent, followed by the DOH with P19.55 billion or 30.48 percent. Of the
approved budget sourced from RF, the DOH reported the highest amount of P3.40 billion or
26.96 percent, followed by the SUCs with P2.33 billion or 18.47 percent. Table II-39 shows
the approved budget by source, by department/office, by expense classification.

Table II-39 Approved Budget, by Source, by Department/Office,

by Expense Classification
FY 2020
(in million pesos)

Percent
PS MOOE FinEx CO Total
Department/Office Distri-
(in million pesos) bution
Grand Total 10,419.19 48,407.61 1.05 17,921.83 76,749.68 100.00
% Distribution 13.58 63.07 0.00 23.35 100.00

Retained Income Fund 9,060.72 39,186.93 1.03 15,891.33 64,140.01 83.57

100.00
State Universities and Colleges 4,162.66 14,691.61 1.03 9,551.15 28,406.44 44.29
Health 0.70 14,382.53 - 5,169.20 19,552.43 30.48
Labor and Employment 9.62 5,107.18 - 23.39 5,140.19 8.01
Metropolitan Manila
Development Authority 2,072.60 2,128.70 - 631.30 4,832.60 7.53
The Judiciary 1,671.36 731.81 - 20.07 2,423.24 3.78
Other Executive Offices 0.55 1,110.65 - 323.66 1,434.86 2.24
Finance 739.21 435.09 - 49.39 1,223.69 1.91
Trade and Industry 404.02 405.94 - 9.93 819.89 1.28
Environment and Natural
Resources - 113.75 - 42.87 156.62 0.24
National Defense - 79.68 - 70.37 150.05 0.23

Revolving Fund 1,358.47 9,220.67 0.03 2,030.50 12,609.67 16.43

100.00
Health - 3,368.25 - 31.76 3,400.01 26.96
State Universities and Colleges 169.82 1,090.61 - 1,069.02 2,329.45 18.47
National Economic and
Development Authority - 1,328.37 - - 1,328.37 10.53
Budget and Management 384.51 328.74 - 350.77 1,064.02 8.44
Trade and Industry 0.55 883.91 - 26.59 911.05 7.23
Agriculture - 546.71 - 161.01 707.73 5.61
Foreign Affairs 424.49 220.62 0.03 49.70 694.84 5.51
Presidential Communications
Operations Office 212.27 215.00 - 170.64 597.91 4.74
Justice - 516.01 - - 516.01 4.09
Education - 301.48 - 104.74 406.22 3.22
Civil Service Commission 156.62 123.45 0.00 13.23 293.30 2.33
Environment and Natural
Resources - 74.74 - 40.88 115.62 0.92
Tourism 10.07 52.88 - 1.31 64.26 0.51
Finance - 60.00 - - 60.00 0.48
Commission on Audit 0.15 50.70 - 5.92 56.77 0.45
National Defense - 17.44 - 4.57 22.02 0.17
Public Works and Highways - 19.46 - - 19.46 0.15
Social Welfare and Development - 16.16 - - 16.16 0.13
Information and
Communications Technology - 5.29 - - 5.29 0.04
Other Executive Offices - 0.85 - 0.35 1.20 0.01

Note: 0.00 represents amount less than 5,000

54
Utilizations – P47.90 billion

Of the approved budget, utilizations for FY 2020 totaled P47.90 billion or 62.40 percent, of
which P41.45 billion or 86.55 percent was from RIF while P6.44 billion or 13.45 percent was
from RF. Chart II-7 shows utilizations, by expense classification.

Chart II-7 Utilizations, by Expense Classification

FY 2020
(in billion pesos)

MOOE
₱31.66
(66.09%)

PS
₱8.28
(17.28%) CO
₱7.96
(16.62%) FinEx
₱0.00
(0.00%)

Note: FinEx amount and percent are less than P0.01 billion and 0.01 percent, respectively

The three departments/offices with highest utilizations are as follows: DOH – P16.07 billion,
SUCs – P15.14 billion, and MMDA – P3.85 billion. Table II-40 shows budget utilization, by
source, by department/office, by expense classification.

Table II-40 Utilizations, by Source, by Department/Office,

by Expense Classification
FY 2020
(in million pesos)

Percent
PS MOOE FinEx CO Total
Department/Office Distri-
(in million pesos) bution
Grand Total 8,278. 37 31,656.24 0.65 7,959.85 47,895.11 100.00
% Distribution 17.28 66.09 0.00 16.62 100.00

Retained Income Fund 7,372.73 26,629.18 0.65 7,452.34 41,454.90 86.55

100.00
State Universities and
Colleges 2,860.63 7,874.38 0.65 3,779.10 14,514.77 35.01
Health 0.70 11,305.56 - 2,731.28 14,037.54 33.86
Metropolitan Manila
Development Authority 1,714.85 1,631.73 - 505.36 3,851.94 9.29
Labor and Employment 2.25 3,376.75 - - 3,379.00 8.15
The Judiciary 1,671.36 625.17 - 5.84 2,302.37 5.55
Other Executive Offices 0.55 1,110.65 - 323.66 1,434.86 3.46
Finance 739.18 336.28 - 10.68 1,086.14 2.62
Trade and Industry 383.21 214.26 - 2.52 599.99 1.45
National Defense - 71.73 - 70.19 141.92 0.34
Environment and Natural
Resources - 82.66 - 23.72 106.39 0.26

55
 Percent
PS MOOE FinEx CO Total
Department/Office Distri-
(in million pesos) bution
Revolving Fund 905.64 5,027.06 0.00 507.50 6,440.21 13.45
100.00
Health - 2,030.82 - 5.74 2,036.56 31.62
Trade and Industry 0.55 836.06 - 20.89 857.51 13.31
State Universities and
Colleges 118.95 329.21 - 180.25 628.41 9.76
Presidential
Communications
Operations Office 173.67 211.40 - 170.64 555.71 8.63
Justice - 516.01 - - 516.01 8.01
Agriculture - 398.93 - 72.22 471.15 7.32
Budget and Management 232.75 121.59 - 11.84 366.18 5.69
Foreign Affairs 222.24 105.61 - 0.35 328.21 5.10
Civil Service Commission 147.25 93.20 0.00 10.05 250.50 3.89
Education - 151.58 - 4.68 156.26 2.43
Environment and Natural
Resources - 45.33 - 22.22 67.55 1.05
Tourism 10.07 52.88 - 1.31 64.26 1.00
National Economic and
Development Authority - 59.32 - - 59.32 0.92
Commission on Audit 0.15 50.70 - 5.92 56.77 0.88
National Defense - 13.90 - 1.35 15.25 0.24
Finance - 8.18 - - 8.18 0.13
Information and
Communications
Technology - 1.01 - - 1.01 0.02
Public Works and
Highways - 0.94 - - 0.94 0.01
Social Welfare and
Development - 0.38 - - 0.38 0.01
Other Executive Offices - - - 0.03 0.03 0.00

Note: 0.00 represents amount less than 5,000

Disbursements – P38.13 billion

Of the budget utilizations of P47.90 billion for FY 2020, disbursements totaled P38.13 billion
or 79.62 percent. The breakdown of disbursements, by expense classification, is shown in Chart
II-8.

Chart II-8 Disbursements, by Expense Classification

FY 2020
(in billion pesos)

MOOE
₱26.41 FinEx
(69.25%) ₱0.00
(0.00%)
CO
₱3.78
PS (9.91%)
₱7.95
(20.84%)

Note:FinEx amount and percent are less than P0.01 billion and 0.01 percent, respectively

56
As shown in Table II-41, total disbursements of P38.13 billion for FY 2020 was composed of
RIF of P32.99 billion or 86.52 percent and RF of P5.14 billion or 13.48 percent. Of the
disbursements pertaining to RIF, the SUCs reported the highest amount of P11.04 billion,
followed by the DOH of P10.56 billion. For RF, the DOH reported the highest disbursements
of P1.38 billion, followed by DTI of P837.91 million.

Table II-41 Disbursements, by Source, by Department/Office,

by Expense Classification
FY 2020
(in million pesos)

Percent
PS MOOE FinEx CO Total
Department/Office Distri-
(in million pesos) bution
Grand Total 7,946.21 26,406.39 0.65 3,778.77 38,132.02 100.00
% Distribution 20.84 69.25 0.00 9.91 100.00

Retained Income Fund 7,066.15 22,426.57 0.65 3,500.05 32,993.42 86.52

100.00
State Universities and Colleges 2,679.61 6,597.88 0.65 1,758.17 11,036.31 33.45
Health 0.70 9,233.03 - 1,328.05 10,561.78 32.01
Labor and Employment 2.25 3,276.18 - - 3,278.43 9.94
Metropolitan Manila
Development Authority 1,619.17 1,366.25 - 84.12 3,069.55 9.30
The Judiciary 1,671.36 621.81 - 5.64 2,298.81 6.97
Finance 726.19 297.37 - 1.70 1,025.27 3.11
Other Executive Offices 0.06 727.72 - 265.12 992.89 3.01
Trade and Industry 366.81 183.87 - 2.44 553.13 1.68
Environment and Natural
- 70.23 - 18.90 89.13 0.27
Resources
National Defense - 52.23 - 35.90 88.13 0.27

Revolving Fund 880.06 3,979.82 0.00 278.72 5,138.60 13.48

100.00
Health - 1,376.60 - - 1,376.60 26.79
Trade and Industry 0.55 817.43 - 19.92 837.91 16.31
Presidential Communications
170.23 143.66 - 142.80 456.69 8.89
Operations Office
Agriculture - 362.71 - 52.58 415.29 8.08
Justice - 411.24 - - 411.24 8.00
State Universities and Colleges 104.52 232.31 - 22.56 359.39 6.99
Budget and Management 225.26 93.60 - 11.84 330.70 6.44
Foreign Affairs 222.24 105.61 - 0.35 328.21 6.39
Civil Service Commission 147.05 89.67 0.00 9.53 246.24 4.79
Education - 144.16 - 2.23 146.39 2.85
Tourism 10.07 52.88 - 1.31 64.26 1.25
Environment and Natural
- 43.78 - 13.28 57.07 1.11
Resources
Commission on Audit 0.15 48.50 - 1.05 49.70 0.97
National Economic and
- 33.31 - - 33.31 0.65
Development Authority
National Defense - 13.82 - 1.27 15.09 0.29
Finance - 8.18 - - 8.18 0.16
Information and
Communications Technology - 1.01 - - 1.01 0.02
Public Works and Highways - 0.94 - - 0.94 0.02
Social Welfare and
Development - 0.38 - - 0.38 0.01

Note: 0.00 represents amount less than 5,000

57
Unutilized Budget – P28.85 billion

Of the P76.75 billion approved budget for FY 2020, P28.85 billion or 37.60 percent remained
unutilized, of which P22.69 billion or 78.62 percent and P6.17 billion or 21.38 percent
pertained to RIF and RF, respectively. The SUCs reported the highest amount of unutilized
budget of P13.89 billion for RIF and also P1.70 billion for RF. Unutilized budget, by source,
by department/office, is presented in Table II-42.

Table II-42 Unutilized Budget, by Source, by Department/Office

FY 2020
(in million pesos)

Approved Unutilized Percent of

Utilizations Percent Unutilized to
Department/Office Budget Budget
Distribution Approved
(in million pesos) Budget
Grand Total 76,749.68 47,895.11 28,854.57 100.00 37.60

Retained Income Fund 64,140.01 41,454.90 22,685.11 78.62 35.37

State Universities and Colleges 28,406.44 14,514.77 13,891.67 48.90
Health 19,552.43 14,037.54 5,514.90 28.21
Labor and Employment 5,140.19 3,379.00 1,761.19 34.26
Metropolitan Manila Development
Authority 4,832.60 3,851.94 980.66 20.29
Trade and Industry 819.89 599.99 219.90 26.82
Finance 1,223.69 1,086.14 137.55 11.24
The Judiciary 2,423.24 2,302.37 120.87 4.99
Environment and Natural Resources 156.62 106.39 50.23 32.07
National Defense 150.05 141.92 8.13 5.42
Other Executive Offices 1,434.86 1,434.86 0.00 0.00

Revolving Fund 12,609.67 6,440.21 6,169.46 21.38 48.93

State Universities and Colleges 2,329.45 628.41 1,701.04 73.02
Health 3,400.01 2,036.56 1,363.46 40.10
National Economic and Development
Authority 1,328.37 59.32 1,269.05 95.53
Budget and Management 1,064.02 366.18 697.84 65.59
Foreign Affairs 694.84 328.21 366.63 52.76
Education 406.22 156.26 249.96 61.53
Agriculture 707.73 471.15 236.57 33.43
Trade and Industry 911.05 857.51 53.54 5.88
Finance 60.00 8.18 51.82 86.37
Environment and Natural Resources 115.62 67.55 48.07 41.58
Civil Service Commission 293.30 250.50 42.79 14.59
Presidential Communications
Operations Office 597.91 555.71 42.19 7.06
Public Works and Highways 19.46 0.94 18.51 95.15
Social Welfare and Development 16.16 0.38 15.78 97.62
National Defense 22.02 15.25 6.76 30.72
Information and Communications
Technology 5.29 1.01 4.27 80.81
Other Executive Offices 1.20 0.03 1.17 97.29
Justice 516.01 516.01 - 0.00
Tourism 64.26 64.26 - 0.00
Commission on Audit 56.77 56.77 - 0.00

Note: 0.00 represents amount less than 5,000

Unpaid Utilizations – P9.76 billion

Of the utilized budget of P47.90 billion as at year-end, P9.76 billion or 20.38 percent remained
unpaid, of which P8.46 billion or 86.67 percent and P1.30 billion or 13.33 percent pertained

58
to RIF and RF, respectively. The SUCs reported the highest unpaid utilizations of P3.48
billion for RIF while DOH reported P659.96 million for RF, as shown in Table II-43.

Table II-43 Unpaid Utilizations, by Source, by Department/Office

FY 2020
(in million pesos)

Unpaid Percent of
Utilizations Disbursements Percent Unpaid to
Department/Office Utilizations
Distribution Utilized
(in million pesos) Budget
Grand Total 47,895.11 38,132.02 9,763.09 100.00 20.38

Retained Income Fund 41,454.90 32,993.42 8,461.48 86.67 20.41

State Universities and Colleges 14,514.77 11,036.31 3,478.46 23.96
Health 14,037.54 10,561.78 3,475.76 24.76
Metropolitan Manila Development
Authority 3,851.94 3,069.55 782.39 20.31
Other Executive Offices 1,434.86 992.89 441.96 30.80
Labor and Employment 3,379.00 3,278.43 100.57 2.98
Finance 1,086.14 1,025.27 60.87 5.60
National Defense 141.92 88.13 53.79 37.90
Trade and Industry 599.99 553.13 46.86 7.81
Environment and Natural Resources 106.39 89.13 17.26 16.22
The Judiciary 2,302.37 2,298.81 3.56 0.15

Revolving Fund 6,440.21 5,138.60 1,301.61 13.33 20.21

Health 2,036.56 1,376.60 659.96 32.41
State Universities and Colleges 628.41 359.39 269.02 42.81
Justice 516.01 411.24 104.77 20.30
Presidential Communications
Operations Office 555.71 456.69 99.03 17.82
Agriculture 471.15 415.29 55.86 11.86
Budget and Management 366.18 330.70 35.48 9.69
National Economic and Development
Authority 59.32 33.30 26.02 43.86
Trade and Industry 857.51 837.91 19.60 2.29
Environment and Natural Resources 67.55 57.07 10.48 15.51
Education 156.26 146.39 9.87 6.32
Commission on Audit 56.77 49.70 7.06 12.45
Civil Service Commission 250.50 246.24 4.26 1.70
National Defense 15.25 15.09 0.16 1.05
Other Executive Offices 0.03 - 0.03 100.00
Information and Communications
Technology 1.01 1.01 0.00 0.18
Finance 8.18 8.18 - 0.00
Foreign Affairs 328.21 328.21 - 0.00
Public Works and Highways 0.94 0.94 - 0.00
Social Welfare and Development 0.38 0.38 - 0.00
Tourism 64.26 64.26 - 0.00

Note: 0.00 represents amount less than 5,000

Part VI, Volume II of this Report presents The Statement of Approved Budget, Utilizations,
Disbursements and Balances for FY 2020, by department/office, by fund, and by expense
classification.

59
 PART III
CURRENT SURPLUS
OF THE NATIONAL
GOVERNMENT
 PART III – CURRENT SURPLUS OF THE NATIONAL
GOVERNMENT

Legal Framework
Section 2 (1), Article IX-D of the 1987 Philippine Constitution mandates the Commission on
Audit to “keep the general accounts of the Government x x x.”

The Commission as mandated by the Constitution performs a limited accounting function. The
Government Accountancy Sector (GAS) is in charge of the actual performance of this
constitutionally mandated duty.

The phrase “general accounts” mentioned in the Charter refers to the books of the
Unappropriated Surplus of the General Fund (GF) of the National Government (NG) now being
maintained thru the following registries prescribed under COA Resolution No. 2014-022 dated
September 12, 2014:

Registry
Registry of Revenue (RR)
Registry of Domestic and Foreign
Borrowings (RDFB)
Registry of Appropriations and
Allotments (RAPAL)
Registry of Appropriations and
Transfers for Special Purpose Funds
(RATSPFs)
Contents
 revenues generated by the national government
agencies (NGAs) that accrue to the GF,
including grants based on the verified
Quarterly Report on Revenue and Other
Receipts
 domestic and foreign loans of the NG based on
the verified Quarterly Report of Domestic and
Foreign Borrowings from the NGAs and
Bureau of the Treasury (BTr)
 appropriations of the agency based on the
General Appropriations Act (GAA) and other
appropriations laws
 allotments released by the Department of
Budget and Management (DBM) to the various
agencies of the government out of the
authorized appropriations
 appropriations and releases of allotments
pertaining to Special Purpose Funds (SPFs)
 transfer from one agency to another,
modification/realignment/augmentation, and
withdrawal of appropriations and allotments
based on the Special Allotment Release Orders
(SAROs), budget documents/letter authority
received from the DBM
 unreleased appropriations
 appropriations for the SPF based on the GAA
 transfer of appropriations for SPF to the
departments/agencies concerned based on the
SAROs/budget documents issued by the DBM

60
 Registry
Registry of Allotments, Obligations
and Disbursements (RAOD)
Registry of Overdraft in Allotments
(ROA)
Contents
 obligations incurred and paid by the agencies
out of the released allotments based on the
verified Budget and Financial Accountability
Reports (BFARs)
 unobligated balances of allotments
 unpaid obligations (due and demandable and
not yet due and demandable)
 obligations incurred by the agencies but not
covered by allotments based on verified
BFARs

The amounts of appropriations and allotments in the RAPAL and RATSPF are reconciled
periodically with the data of the DBM and with the NGAs quarterly BFARs prescribed in COA-
DBM Joint Circular No. 2019-1 dated January 1, 2019.

At the end of the year, based on the Registries, the GAS prepares the overall Statement of
Appropriations, Allotments, Obligations, Disbursements, and Balances (SAAODB) and the
Statement of Current Surplus (SCS), which form part of the Annual Financial Report (AFR)
for the NG.

Current Surplus of the National Government

The Current Surplus of the NG is the net balance of the combined figures of the following
components: Unappropriated Surplus, Unreleased Continuing Appropriations, Unobligated
Continuing Appropriations, and Overdraft in Allotments. Table III-1 shows the details of
current surplus components.

Table III.1 Current Surplus of the National Government

FY 2020
(in million pesos)

Unreleased Unobligated
Total Current Unappropriated Overdraft in
Description Continuing Continuing
Surplus Surplus Allotments
Appropriations Appropriations
Beginning Balances 1,381,117.98 1,032,383.96 193,463.49 183,066.51 (27,795.99)
Adjustments/ Transfers - 21,045.93 28,070.54 (49,106.72) (9.74)
Adjusted Beginning Balance 1,381,117.98 1,053,429.89 221,534.03 133,959.79 (27,805.73)
Revenue 2,797,261.90 2,797,261.90 - - -
Borrowings 2,775,838.73 2,775,838.73 - - -
Issuance of Bills 470,953.01 470,953.01 - - -
Issuance of Bonds 1,880,312.03 1,880,312.03 - - -
Loan Proceeds 424,573.68 424,573.68 - - -
Sub-totals 6,954,218.60 6,626,530.51 221,534.03 133,959.79 (27,805.73)
Obligations (4,872,414.03) (4,649,992.18) (89,234.62) (114,115.41) (27,805.73)
Sub-total 2,081,804.57 1,976,538.34 132,299.41 19,844.38 (46,877.55))
Allotments to cover prior
years overdraft - - (9.74) - 9.74
Reversion of Continuing
Appropriations - 152,134.04 (132,289.66) (19,844.38) -
Ending Balances 2,081,804.57 2,128,672.37 - - (46,867.81)

61
Unappropriated Surplus – P2.129 trillion

The Unappropriated Surplus is composed of various transactions that transpired during the
year, such as: revenue earned, proceeds from issuance of bills and bonds, availment of loans,
obligations incurred, and adjustments/transfers and reversions of unreleased and unobligated
continuing appropriations.

The ending balance of P2.129 trillion consists of: beginning balance – P1.032 trillion, net
adjustments/transfers – P21.05 billion, revenue – P2.797 trillion, borrowings – P2.776 trillion,
obligations covered by allotments from current year’s appropriations – P4.650 trillion, and
reversions of unreleased and unobligated continuing appropriations – P152.13 billion.

Unreleased Continuing Appropriations

The unreleased continuing appropriations refers to the unreleased balance of the total
appropriations for which no comprehensive release and allotment release orders were issued
by the DBM.

The beginning balance of P193.46 billion pertained to the unreleased balance of R. A. No.
11260, the GAA for FY 2019. The unreleased continuing appropriations balance registered a
zero balance at year-end brought about by the following: adjustments – P28.07 billion,
obligations – P89.23 billion, allotments to cover prior year’s overdraft – P9.74 million, and
reversions to the unappropriated surplus – P132.29 billion.

Unobligated Continuing Appropriations

This component of the Current Surplus pertains to the released portion of appropriations which
remained unexpended or unobligated at the end of the year.

From the beginning balance of P183.07 billion, the unobligated continuing appropriations
registered a zero balance at year-end brought about by the following: adjustments in the
beginning balance – P49.11 billion, obligations – P114.12 billion, and reversions to the
unappropriated surplus – P19.84 billion.

Overdraft in Allotments – P46.87 billion

Overdraft in allotments are obligations incurred by NGAs not covered by allotments or in

excess of allotments.

Total overdraft in allotments of P46.87 billion consists of obligations not covered by allotments
for the current year of P19.07 billion, and balances of prior years overdraft of P27.80 billion,
broken down as follows: FY 2012 - P81.59 million, FY 2013 – P3.26 million, FY 2014 –
P148.53 million, FY 2015 – P8.71 million, FY 2016 – P217.11 million, FY 2017 – P177.56
million, FY 2018 – P87.59 million, and FY 2019 – P27.07 billion.

The breakdown of overdraft in allotments incurred by department/office and by agency is

shown in Schedule 3, Volume II of this Report.

62
 PART IV
FINANCIAL
STATEMENTS
 Republic of the Philippines
National Government
Statement of Financial Position
As at December 31, 2020
(in thousand pesos)

2019
Note 2020 (Restated)

ASSETS
Current Assets
Cash and Cash Equivalents 4 629,130,131.65 (3,257,290.89)
Investments 5 137,555,135.63 84,903,646.69
Receivables 6 1,040,377,489.59 952,809,354.09
Inventories 7 165,444,428.36 113,585,709.47
Other Current Assets 8 189,915,971.07 166,681,834.71
Total Current Assets 2,162,423,156.30 1,314,723,254.07

Non-Current Assets
Investments 9 1,169,487,865.03 1,054,123,072.05
Receivables 10 185,236,443.09 199,624,483.59
Investment Property 11 2,530,474.21 2,325,214.70
Property, Plant and Equipment 12 3,630,518,148.74 3,444,529,890.98
Biological Assets 13 2,170,457.91 1,815,403.02
Intangible Assets 14 11,076,406.50 10,178,805.36
Other Non-Current Assets 15 132,132,190.43 134,433,609.76
Total Non-Current Assets 5,133,151,985.91 4,847,030,479.46

TOTAL ASSETS 7,295,575,142.21 6,161,753,733.53

LIABILITIES
Current Liabilities
Financial Liabilities 17 2,097,509,873.76 1,303,234,748.39
Inter-Agency Payables 18 57,094,311.46 58,238,932.37
Intra-Agency Payables 19 1,138,474.88 448,131.84
Trust Liabilities 20 110,541,812.66 115,356,699.86
Deferred Credits/Unearned Income 21 5,574,619.22 4,884,155.87
Provisions 22 122,703.37 55,580.01
Other Payables 23 57,740,087.94 52,689,377.64
Total Current Liabilities 2,329,721,883.30 1,534,907,625.97

Non-Current Liabilities
Financial Liabilities 24 8,135,963,418.45 6,835,960,730.00
Trust Liabilities 25 7,667,389.15 6,251,617.82
Deferred Credits/Unearned Income 26 22,349,638.97 24,300,443.94
Provisions 27 1,506,335.03 1,215,458.46
Other Payables 28 32,247,364.29 30,312,891.44
Total Non-Current Liabilities 8,199,734,145.89 6,898,041,141.65

TOTAL LIABILITIES 10,529,456,029.19 8,432,948,767.62

NET ASSETS (3,233,880,886.98) (2,271,195,034.09)

NET ASSETS/EQUITY
Government Equity (3,287,224,366.83) (2,294,270,554.77)
Accumulated Surplus/(Deficit) (3,287,224,366.83) (2,294,270,554.77)

Unrealized Gain/(Loss) 53,343,479.85 23,075,520.68

NET ASSETS/EQUITY 30 (3,233,880,886.98) (2,271,195,034.09)

Difference between the totals and sum of components is due to rounding off
The above statement should be read in conjunction with the accompanying notes.

63
 Republic of the Philippines
National Government
Detailed Statement of Financial Performance
For the Year Ended December 31, 2020
(in thousand pesos)

2019
Note 2020 (Restated)

Revenue
Tax Revenue 31 2,504,948,102.21 2,841,983,901.41
Service and Business Income 32 281,615,818.08 270,490,269.46
Shares, Donations and Grants 33 59,516,192.53 94,952,294.98
Gains 34 1,478,333.19 918,308.91
Total Revenue 2,847,558,446.01 3,208,344,774.75

Less: Current Operating Expenses

Personnel Services 35 1,211,877,254.05
Maintenance and Other Operating Expenses 36 1,876,092,545.24
Financial Expenses 37 402,054,033.44
Non-Cash Expenses 38 120,903,675.00
Total Current Operating Expenses 3,610,927,507.73
1,130,760,417.20
1,407,219,641.88
391,514,852.92
106,268,901.91
3,035,763,813.91

Surplus/(Deficit) from Current Operations (763,369,061.72) 172,580,960.84

Net Assistance/Subsidy 39 6,329,302.50 51,325,658.41

Other Non-Operating Income 40 131,610,211.23 100,953,850.34
Losses 41 (42,313,894.15) (21,086,088.98)
Surplus/(Deficit) for the period (667,743,442.14) 303,774,380.61

Difference between the totals and sum of components is due to rounding off
The above statement should be read in conjunction with the accompanying notes.

64
 Republic of the Philippines
National Government
Statement of Cash Flows
For the Year Ended December 31, 2020
(in thousand pesos)

2019
Notes 2020 (Restated)
Cash Flows From Operating Activities
Cash Inflows 42
Collection of Income/Revenues 2,692,808,057.78 3,093,746,941.44
Receipt of Assistance from Other NGAs, LGUs and GOCCs 4,473,782.51 7,150,104.43
Collection of Receivables 151,803,299.84 55,794,531.34
Receipt of Inter-Agency Fund Transfers 91,578,206.45 56,132,064.23
Trust Receipts 364,390,129.42 68,461,089.84
Other Receipts 48,338,465.65 30,916,695.95
Adjustments 541,126,000.19 596,724,638.63
Total Cash Inflows 3,894,517,941.84 3,908,926,065.86
Cash Outflows 43
Payment of Expenses 1,103,348,221.29 1,039,358,440.72
Purchase of Inventories 59,362,236.94 53,278,266.73
Purchase of Semi-Expendable Machinery, Equipment, Furniture,
Fixtures and Books 173,741.55 36,130.09
Purchase of Consumable Biological Assets 581,273.58 141,694.39
Grant of Cash Advances 101,081,642.55 94,610,250.10
Prepayments 14,778,731.03 13,351,970.81
Payment of Deposits 16,564,369.95 33,435,596.06
Payment of prior years' accounts payables for operating expenses 94,029,400.17 87,567,259.43
Payment of tax refunds payable 157,758.50 665,214.40
Remittance of Personnel Benefit Contributions and Mandatory Deductions 288,514,301.87 334,584,755.89
Grant of Financial Assistance/Subsidy 1,215,076,694.44 914,733,537.01
Release of Inter-Agency Fund Transfers 292,881,343.98 94,085,629.68
Other Disbursements 504,113,419.02 112,654,673.91
Adjustments 202,259,443.61 760,111,594.42
Total Cash Outflows 3,892,922,578.48 3,538,615,013.63
Net Cash Provided by (Used in) Operating Activities (486,946,782.36) 370,311,052.23
Cash Flows from Investing Activities
Cash Inflows 44
Proceeds from Sale of Investment Property 10.44 -
Proceeds from Sale/Disposal of Property, Plant and Equipment 217,648.04 37,147.38
Proceeds from Sale of Stocks/Bonds/Marketable Securities and
Other Investments 130,476,733.66 95,319,192.07
Receipt of Cash Dividends 89,683,439.32 52,687,180.28
Proceeds from Matured/Return of Investments 58,915,596.68 59,555,750.41
Collection of Long-Term Loans 1,256,042.11 1,790,878.30
Proceeds from Sale of Other Assets 5,415.66 3,586.32
Total Cash Inflows 280,554,885.92 209,393,734.76
Cash Outflows 45
Purchase/Construction of Investment Property 156,661.16 6,273.58
Purchase/Construction of Property, Plant and Equipment 516,244,100.34 677,819,892.86
Investments 302,037,149.18 310,940,791.34
Purchase of Bearer Trees, Plants and Crops 7.10 -
Purchase of Bearer Biological Assets 13,922.18 37,536.44
Purchase of Intangible Assets 323,222.08 470,694.90
Grant of loans 1,927,569.72 3,927,044.16
Total Cash Outflows 820,702,631.76 993,202,233.28
Net Cash Provided by (Used in) Investing Activities (540,147,745.85) (783,808,498.51)
Cash Flows from Financing Activities
Cash Inflows 46
Proceeds from issuance of bills and bonds 4,020,818,186.06 1,936,215,659.58
Proceeds from Domestic and Foreign Loans 399,597,789.61 111,789,130.82
Total Cash Inflows 4,420,415,975.67 2,048,004,790.39
Cash Outflows 47
Payment of Long-Term Liabilities 637,601,710.88 90,331,843.29
Redemption of Bills/Bonds Issued 1,657,983,678.89 1,402,154,142.38
Payment of interest expenses (BTR NG Debt and other NGAs with
domestic and foreign loans) 92,541.17 108,493.72
Payment for other financial expenses/charges (BTr NG only) 329,355,465.54 321,863,897.85
Total Cash Outflows 2,625,033,396.48 1,814,458,377.24
Net Cash Provided by (Used in) Financing Activities 1,795,382,579.19 233,546,413.16
Increase(Decrease) in Cash and Cash Equivalents 768,288,050.98 (179,951,033.13)
Effects of Exchange Rate Changes on Cash and Cash Equivalents 48 (15,471,164.08) (6,380,089.64)
Cash and Cash Equivalents, January 1, 49.1 691,593,087.40 877,924,210.16
Cash and Cash Equivalents, December 31 49.2 1,444,409,974.29 691,593,087.40

Difference between the totals and sum of components is due to rounding off
The above statement should be read in conjunction with the accompanying notes.

65
 Republic of the Philippines
National Government
Statement of Changes in Net Assets/Equity
For the Year Ended December 31, 2020
(in thousand pesos)

2019
Notes 2020 (Restated)

Balance at January 1 30.1 (2,271,195,034.09) (1,730,255,902.20)

Add/(Deduct):
Changes in accounting policy - 271,079.00
Prior period errors - (665,375,473.32)
Other Adjustments - 19,602,847.21
Restated Balance (2,271,195,034.09) (2,375,757,449.30)

Add/(Deduct):
Changes in Net Assets/Equity for the Fiscal Year 30.2
Surplus/(Deficit) for the Period (667,743,442.14) 303,774,380.61
Others (294,942,410.75) (199,211,965.39)
Balance at December 31 (3,233,880,886.98) (2,271,195,034.09)

Difference between the totals and sum of components is due to rounding off
The above statement should be read in conjunction with the accompanying notes.

66
 Republic of the Philippines
National Government
Statement of Comparison of Budget and Actual Amounts
For the Year Ended December 31, 2020
(in thousand pesos)

Budgeted Amount Actual Amounts on Differrence Final

Original Final Comparable Basis Budget and Actual
RECEIPTS
Tax Revenue 3,332,283,406.20 2,438,296,891.02 2,511,165,279.91 72,868,388.89
Service and Business Income 113,316,651.00 370,731,894.00 242,348,742.83 (128,383,151.18)
Shares, Grants and Donations 68,249,392.80 66,955,738.21 40,726,654.41 (26,229,083.80)
Gains 4,122.00 22,545.31 18,972.02 (3,573.29)
Others 1,420,485,678.00 3,016,831,349.15 2,778,840,977.62 (237,990,371.54)
Non-Operating Income/Revenues 20,362,678.00 12,988,349.15 3,002,251.10 (9,986,098.05)
Loan Proceeds (Foreign Loans) 160,655,000.00 495,882,000.00 424,573,683.38 (71,308,316.62)
Issuance of Bills (Domestic) 48,000,000.00 48,000,000.00 470,953,009.85 422,953,009.85
Issuance of Bonds 1,191,468,000.00 2,459,961,000.00 1,880,312,033.29 (579,648,966.71)
Domestic 998,968,000.00 2,170,230,000.00 1,561,527,336.29 (608,702,663.71)
Foreign 192,500,000.00 289,731,000.00 318,784,697.00 29,053,697.00
Total Receipts 4,934,339,250.00 5,892,838,417.69 5,573,100,626.78 (319,737,790.92)
PAYMENTS
Personnel Services 1,017,442,374.21 1,237,047,097.48 1,187,654,189.46 49,392,908.02
Maintenance and Other Operating Expenses 1,417,362,531.61 2,154,792,177.31 1,818,557,345.10 336,234,832.22
Capital Outlays 1,090,416,720.26 760,658,748.42 324,615,696.35 436,043,052.07
Financial Expenses 381,998,322.19 381,799,745.29 399,218,334.37 (17,418,589.08)
Debt Service (Principal Amortization) - 582,088,000.00 581,395,618.33 692,381.67
Total Payments 3,907,219,948.27 5,116,385,768.50 4,311,441,183.60 804,944,584.89
NET RECEIPTS/PAYMENTS 1,027,119,301.73 776,452,649.20 1,261,659,443.17 (1,124,682,375.81)

Difference between the totals and sum of components is due to rounding off

67
 Republic of the Philippines
National Government
Notes to Combined Financial Statements
For the Year Ended December 31, 2020

1. GENERAL INFORMATION

The 2020 Annual Financial Report (AFR) for the National Government (NG) presents
the combined financial statements (FSs) submitted by 317 agencies, including the State
Universities and Colleges (SUCs). Of these agencies, 247 operate as stand-alone, while
70 have staff bureaus, regional offices (ROs), and operating units (OUs)/field offices
(FOs), of which 22 adopt a centralized accounting system and 48 a decentralized
accounting system. The AFR also includes the Special Accounts in the General Fund
(SAGF) maintained by six government corporations (GCs). The list of these agencies
and their registered office addresses is shown in Annex A.

Detailed disclosures on FSs for each National Government Agency (NGA) are not
presented in this Report. Readers interested in the detailed disclosures may refer to the
audited FSs contained in the Annual Audit Reports on individual NGAs that are posted
in the Commission on Audit (COA) website http://coa.gov.ph.

2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION OF FSs

As stated in the Statement of Management Responsibilities for FSs signed by the heads
of agencies, the FSs were prepared in conformity with the International Public Sector
Accounting Standards (IPSAS), and with generally accepted state accounting
principles. To a great extent, the agencies complied with the provisions of the
Government Accounting Manual prescribed under COA Circular No. 2015-007 dated
October 22, 2015.

The FSs comprise the Statement of Financial Position (SFPos), Statement of Financial
Performance (SFPer), Statement of Changes in Net Assets/Equity (SCNA/E),
Statement of Cash Flows (SCF), Statement of Comparison of Budget and Actual
Amounts (SCBAA), and the Notes to FSs.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1. Basis of accounting

The combined FSs were prepared on an accrual basis in accordance with

applicable IPSAS except in the case of taxes and related fines and penalties
which are recognized when collected or when these are measurable and legally
collectible.

3.2. Combination/Consolidation

The combined FSs cover the FSs submitted by fund cluster, as follows:

68
 a. Regular Agency Fund;
b. Foreign Assisted Projects Fund;
c. Special Account-Locally Funded/Domestic Grants Fund;
d. Special Account-Foreign Assisted/Foreign Grants Fund;
e. Internally Generated Funds;
f. Business Related Funds; and
g. Trust Funds.

Inter-agency account balances of due from and due to NGAs, subsidy from and
subsidy to NGAs were eliminated in the overall consolidation except for
unmatched balances which were discussed in the succeeding pages of this
Report.

3.3. Presentation of financial statements

This Report presents on a comparative basis the FSs for FY 2020 and Restated
FSs for FY 2019 to enable stakeholders to easily identify material
changes/variances between reporting periods. Accounts used for both periods
conform with the Revised Chart of Accounts (Updated 2019) prescribed under
COA Circular No. 2020-001 dated January 8, 2020.

3.4. Correction of prior years’ errors

Except when the specific or cumulative effect of the misstatements are

impracticable to determine, material misstatements committed prior to FY 2020
were recognized in the FY 2019 FSs.

Prior years’ errors affecting the assets and liabilities were corrected using the
related accounts, while those affecting the income and expense accounts were
adjusted directly to the Accumulated Surplus/(Deficit) account.

3.5. Changes in accounting estimates and policies

The agencies apply the prospective application in recognizing the effects of

changes in accounting estimates; as such, the changes are included in the surplus
or deficit. On the other hand, the retrospective application is used to effect
changes in accounting policy, except when application is impractical, wherein
the prospective application is used.

3.6. Cash and cash equivalents

Cash comprises cash on hand and cash in bank. Cash in bank is composed of
current and savings accounts in Philippine peso and foreign currencies. Cash
equivalents are short-term and highly liquid investments with original maturity
of three months or less from date of acquisition, which are readily convertible
to known amounts of cash and subject to insignificant risk of changes in value.

Petty Cash Fund (PCF) is set up for the recurring petty expenses of an agency
for one month. It is maintained on an imprest system wherein replenishment is

69
 charged to the appropriate expense accounts. The PCF is kept separately from
the other cash advances, and is not used for payment of regular expenses such
as rentals, inventory items for stock and other disbursements which should be
paid through checks and/or Advice to Debit Account (ADA).

3.7. Financial assets

a. Initial recognition

Financial assets are recognized by an agency when it becomes a party to the

contractual provisions of the instrument. A financial asset is measured
initially at its fair value, plus transaction costs that are directly attributable
to the acquisition or issue in the case of financial asset not measured at fair
value through surplus or deficit.

Financial assets within the scope of IPSAS 29-Financial Instruments:

Recognition and Measurement, are classified as: (1) financial assets at fair
value through surplus or deficit; (2) held-to-maturity investments; (3) loans
and receivables; or (4) available-for-sale financial assets, as appropriate.
The classification of financial assets at initial recognition depends on the
purpose for which the financial assets are bought and held. Management
decides on their initial classification at the time of initial recognition.

b. Subsequent measurement

The subsequent measurement of financial assets depends on their

classification. After initial recognition, agencies measure financial assets,
including derivatives that are assets, at their fair values, without any
deduction for transaction costs it may incur on sale or other disposal, except
for the following financial assets:

i. Loans and receivables and held-to-maturity investments measured at

amortized cost using the effective interest method; and
ii. Investments in equity instruments that do not have a quoted market
price in an active market and whose fair value cannot be reliably
measured, and derivatives that are linked to and must be settled by
delivery of such unquoted equity instruments, which are measured at
cost.

c. Impairment

An agency assesses at each reporting date whether there is objective

evidence that a financial asset or a group of financial assets is impaired. A
financial asset or a group of financial assets is deemed impaired if there is
objective evidence of impairment as a result of one or more events that
has/have occurred after the initial recognition of the asset and that loss event
has an impact on the estimated future cash flows of the financial asset or the
group of financial assets that can be reliably estimated. Evidence of
impairment includes the following:

70
 i. The debtor or a group of debtors is experiencing significant financial
difficulty;
ii. Default or delinquency in interest or principal payments;
iii. The probability that debtors will enter bankruptcy or other financial
reorganization; and
iv. Observable data indicates a measurable decrease in estimated future
cash flows (e.g., changes in arrears or economic conditions that correlate
with defaults).

d. Derecognition

An agency derecognizes a financial asset or, where applicable, a part of a

financial asset or part of a group of similar financial assets when:

i. the contractual rights to the cash flows from the financial asset have
expired or are waived; and
ii. an agency has transferred its contractual rights to receive the cash flows
of the financial assets, or retains the contractual rights to receive the
cash flows of the financial assets but assumes a contractual obligation
to pay the cash flows to one or more recipients in an arrangement that
meets the conditions set forth in IPSAS 29-Financial Instruments:
Recognition and Measurement; and either an agency has:

1) transferred substantially all the risks and rewards of ownership of

the financial asset; or
2) neither transferred nor retained substantially all the risks and
rewards of ownership of the financial asset, but has transferred the
control of the asset.

e. Financial assets at fair value through surplus or deficit

Financial assets at fair value through surplus or deficit include financial

assets held for trading and financial assets designated upon initial
recognition at fair value through surplus or deficit. Financial assets are
classified as held for trading if they are acquired for the purpose of selling
or repurchasing in the near term.

Changes in fair value of non-derivative financial assets designated as

available-for-sale are reported in the SCNA/E.

f. Financial assets held to maturity

Non-derivative financial assets with fixed or determinable payments and

fixed maturities are classified as held-to-maturity when the agency has the
positive intention and ability to hold it to maturity.

After initial measurement, held-to-maturity investments are measured at

amortized cost using the effective interest method, less impairment.
Amortized cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are integral part of the effective interest

71
 rate. The losses arising from impairment are recognized in surplus or deficit.

Bond premiums or discounts on bond investments are added or deducted

from the Investments in Bonds account and are being amortized over the life
of the securities as adjustment to the payable account.

3.8. Inventories

Inventories are initially recognized and measured at cost which include

purchase price, import duties and taxes, freight, handling and other costs
directly attributable to the acquisition of the finished goods, materials and
services as well as other costs incurred in bringing the inventories to their
present location and condition. Inventories acquired through non-exchange
transactions (for no cost or for a nominal cost) are measured at fair value at the
date of acquisition.

Inventories are recognized as expense when issued for utilization or

consumption in the ordinary course of operation using the weighted average
method.

Inventories are also tested for impairment. Inventories are said to be impaired if
the cost of inventories held for sale is higher than the net realizable value or the
cost of inventories held for distribution or consumption is higher than the
current replacement cost. The difference between the cost and net realizable
value/current replacement cost shall be recognized as an expense in the financial
statement.

3.9. Semi-expendable Property

Semi-expendable property are tangible items costing below the capitalization

threshold of P15,000.00, to be used in the operations of the agency and not
intended for resale in the ordinary course of business. Its expected life is more
than one accounting period, and are recognized as expense upon issuance to
end-users. Repairs and maintenance are recognized as expense in the period
they are incurred.

3.10. Investment Property

Investment property is either land or building or part of a building or both, held

to earn rentals or for capital appreciation, or both.

a. Initial recognition

Investment property is measured initially at cost, including transaction

costs. Such costs do not include start-up costs, abnormal waste, or initial
operating losses incurred before the investment property achieves the
planned level of occupancy. The carrying amount includes the replacement
cost of components of an existing investment property at the time that cost
is incurred if the recognition criteria are met.

72
 Investment property acquired through non-exchange transaction is
measured at fair value at the date of acquisition.

b. Subsequent measurement

Subsequent to initial recognition, investment property is measured using the

cost model and is depreciated over its estimated useful life using the
straight-line method. Useful life of investment property is consistent with
the useful life of similar PPE. Investment property is also tested for
impairment and impairment losses are also recognized when appropriate. In
the case of Investment Property, Building, impairment is a loss in the future
economic benefit over and above the systematic recognition of loss of the
asset’s future economic benefit through depreciation. After recognition of
an impairment loss, the depreciation charge of the investment property is
adjusted in future periods to allocate the asset’s revised carrying amount
over its remaining useful life.

c. Derecognition

Investment property is derecognized upon disposal or when it is

permanently withdrawn from use or no future economic benefits are
expected from its disposal. The difference between the net disposal proceeds
and the carrying amount of the asset is recognized in surplus or deficit in the
period of derecognition. Transfer to and from investment property is made
only when there is a change in use of the asset.

3.11. Property, Plant and Equipment

PPE are tangible items costing P15,000.00 and above that are held for use in the
production or supply of goods or services, for rental to others, or for
administrative purposes; and are expected to be used during more than one
period and not intended for resale in the ordinary course of business. PPE
include land, land improvements, buildings and other structures, machinery and
equipment, transportation equipment, furniture, fixtures and books, leasehold
improvements, and other PPE including specialized military equipment,
infrastructure assets, and heritage assets.

a. Initial recognition

PPE are initially recognized at cost. Cost includes the purchase price,
including import duties and non-refundable taxes, after deducting trade
discounts and rebates, and expenditures directly attributable to the
acquisition of the asset. When PPE is acquired through a non-exchange
transaction or for no or nominal consideration, it is initially measured at its
fair value.

b. Subsequent measurement

After initial recognition, PPE, except land, are stated at cost less
accumulated depreciation and impairment losses. Land is measured at cost

73
 less accumulated impairment losses. Significant parts of the PPE purchased
at required intervals are recognized as individual assets with specific useful
lives. Likewise, when a major repair/replacement is done, its cost is
recognized in the carrying amount of the PPE as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are
recognized as expense in the surplus or deficit in the period in which they
are incurred.

c. Depreciation

PPE are depreciated over their useful lives using the straight-line method
after assigning a residual value of at least five percent. The estimation of the
useful life of the asset is a matter of judgment based on the experience of
the agency with similar assets following the life spans prescribed by the
COA. Significant parts of the PPE purchased at required intervals are
depreciated over their specific useful lives. For simplicity and to avoid
proportionate computation, the depreciation is for one month if the PPE is
available for use on or before the 15th of the month. However, if the PPE is
available for use after the 15th of the month, depreciation starts in the
succeeding month.

d. Impairment

PPE are assessed at each reporting date to determine the existence of

impairment. Impairment loss on a PPE is recognized if the carrying amount
is greater than its estimated recoverable amount or recoverable service
amount. After recognition of an impairment loss, the depreciation charge of
the PPE is adjusted in future periods to allocate the asset’s revised carrying
amount over its remaining useful life.

e. Derecognition

PPE and/or any significant part of a PPE is derecognized upon disposal or

when no future economic benefits or service potential is expected from its
continued use. Any gain or loss arising from derecognition of the asset is
included in surplus or deficit.

3.12. Construction in progress

Construction in Progress (CIP) is stated at cost. While the construction is in

progress, the project costs are accrued based on the contractor’s
accomplishment reports and billings. These represent costs incurred for
technical services and capital works program contracted by the agencies to
facilitate the implementation of projects. While the construction of the project
is in progress, no provision for depreciation is recognized.

CIP is transferred to the appropriate asset account when the construction or

installation and related activities necessary to prepare the asset for its intended
use have been completed, and the asset is ready for service.

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3.13. Leases

a. Operating lease – lessee’s books

Lease payments under operating lease are recognized as expense on a

straight-line basis over the lease term unless another systematic basis is
representative of the time pattern of the lessee’s benefit.

b. Operating lease – lessor’s books

Lease revenue from operating lease is recognized on a straight-line basis

over the lease term unless another systematic basis is representative of the
time pattern in which benefits derived from the lease assets are diminished.
Initial direct costs, such as finder’s fees and legal expenses, incurred in
negotiating and arranging the operating lease agreement are added to the
carrying amount of the leased asset and recognized as expense over the lease
term on the same basis as the lease revenue. Contingent rents are recognized
as revenue in the period in which they are earned.

Leased assets are depreciated consistent with the lessor’s normal

depreciation policy for similar assets.

c. Finance lease – lessee’s books

Assets held under a finance lease are capitalized at the commencement of

the lease at the fair value of the leased property or, if lower, at the present
value of the minimum lease payment. The associated liability is recognized
at the inception of the lease which is measured at the present value of the
future minimum lease payments at initial recognition.

Lease payments are apportioned between reduction of the lease liability and
finance charges. A constant rate of interest on the remaining balance of the
liability shall be applied. Finance charges are recognized as finance costs in
surplus or deficit.

Assets under a finance lease are depreciated over their useful lives, however,
if there is no reasonable certainty that the lessee obtains ownership of the
asset at the end of the lease term, the asset is depreciated over the shorter of
the estimated useful life of the asset and the lease term.

d. Finance lease – lessor’s books

The lessor recognizes Finance Lease Receivable at an amount equal to the

net investment in the lease and finance revenue based on a pattern reflecting
a constant periodic rate of return on the net investment in the lease. Initial
direct costs such as commissions, legal fees, and internal costs are included
in the initial measurement of the Finance Lease Receivable, and reduce the
amount of revenue recognized over the lease term.

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3.14. Intangible assets

An intangible asset is an identifiable non-monetary asset without physical

substance.

a. Initial recognition

Intangible asset is recognized when it is identifiable, when it is probable that

the expected future economic benefits or service potential that are
attributable to the asset will flow to the agency, and when the cost or fair
value of the asset can be measured reliably.

Intangible asset acquired through purchase or by separate acquisition is

initially recognized at cost which includes non-refundable taxes and other
directly attributable costs. The cost of intangible asset acquired in a non-
exchange transaction is its fair value at the time of acquisition. The cost of
internally generated intangible asset, excluding capitalized development
costs, is recognized in surplus or deficit. No intangible asset arising from
research (or from the research phase of an internal project) is recognized.
Expenses on research (or on the research phase of an internal project) is
recognized as expense when incurred. Expenditure on intangible asset is
recognized as expense when it is incurred unless it forms part of the cost
that meets the recognition criteria of an intangible asset.

b. Subsequent measurement

After initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment loss. The useful life
of the intangible asset is assessed as either finite or indefinite. Those with
finite lives are amortized over their useful lives using the straight-line
method. The amortization expense is recognized in surplus or deficit.

Intangible assets with indefinite useful lives are not amortized but are
required to be tested for impairment at least annually or whenever there is
an indication of impairment. An intangible asset is impaired when its
carrying amount is greater than the estimated recoverable amount or
recoverable service amount. Amortization begins when the intangible asset
is available for use and ceases at the earlier of the date that the asset is
classified as held for sale and the date that the asset is derecognized.

Gains or losses arising from derecognition of an intangible asset are

measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in surplus or deficit.

3.15. Financial liabilities

a. Initial recognition

Agencies recognize financial liabilities in their respective books of accounts

when they become party to the contractual provisions of the instrument. A

76
 financial liability is measured initially at its fair value, plus transaction costs
that are directly attributable to the acquisition or issue in the case of financial
liability not measured at fair value through surplus or deficit.

Financial liabilities within the scope of IPSAS 29 are classified as:

(1) financial liabilities at fair value through surplus or deficit; and
(2) loans and borrowings, as appropriate. Agencies’ financial liabilities
include trade and other payables, loans and borrowings.

b. Subsequent measurement

After initial recognition, agencies measure financial liabilities at amortized

cost using the effective interest method except for:

i. financial liabilities at fair value through surplus or deficit. Such

liabilities, including derivatives that are liabilities, are measured at fair
value except for a derivative liability that is linked to and must be
settled by delivery of an unquoted equity instrument whose fair value
cannot be reliably measured, which shall be measured at cost;
ii. financial liabilities that arise when a transfer of a financial asset does
not qualify for derecognition or when the continuing involvement
approach applies.

Amortized cost is calculated by taking into account any discount or premium

on acquisition and fees or costs that are integral part of the effective interest
rate.

c. Financial liabilities at fair value through surplus or deficit

Financial liabilities at fair value through surplus or deficit include financial

liabilities held for trading and financial liabilities designated upon initial
recognition at fair value through surplus or deficit. Financial liabilities are
classified as held for trading if these are acquired for the purpose of selling
or repurchasing in the near term.

d. Loans and borrowings

After initial recognition, interest bearing loans and borrowings are

subsequently measured at amortized cost using the effective interest
method. Gains or losses arising from the derecognition of the liabilities as
well as through the effective interest method amortization process are
recognized in surplus or deficit. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are
integral part of the effective interest rate. Bond discounts and premiums on
the issuance of foreign and domestic treasury bonds and bond exchanges are
amortized over the remaining life of the bonds.

e. Derecognition

A financial liability is derecognized when the obligation specified in the

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 contract expires or is discharged, cancelled or waived.

When an existing financial liability is replaced by another from the same

lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and recognition of a new liability. The
difference between the carrying amount of a financial liability (or a part of
a financial liability) extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liability
assumed, is recognized in surplus or deficit.

3.16. Provisions

Provisions are liabilities of uncertain timing and amount. Provisions are

recognized when agencies have present obligations (legal or constructive) at the
reporting date as a result of a past event, it is probable that an outflow of
resources embodying economic benefits or service potential will be required to
settle the obligation, and a reliable estimate can be made of the amount of
obligation. Provision is recognized at the best estimate of the expenditure to
settle the obligation. Best estimate is an amount that an agency would rationally
pay to settle the obligation at the reporting date or to transfer it to a third party.
Best estimate is usually based on costs incurred by an agency and not on the
transfer price to a third party which could include a margin. Further, the risks
and uncertainties that inevitably surround many events and circumstances are
taken into account in reaching the best estimates of a provision. The expense
relating to any provision is recognized in surplus or deficit.

3.17. Contingent Assets/Liabilities

a. Contingent Assets

Contingent assets are not recognized in the books of accounts but details of
a possible asset whose existence is contingent on the occurrence or non-
occurrence of one or more uncertain future events not wholly within the
control of the NG are disclosed in the Notes to the FSs.

Contingent assets are assessed continually to ensure that developments are

appropriately reflected in the financial statements. If it has become virtually
certain that an inflow of economic benefits will arise and the value of such
benefits can be measured reliably, the asset and income shall be recognized
in the financial statements.

b. Contingent Liabilities

Contingent liabilities are not recognized in the books of accounts but are
disclosed in the Notes to FSs, unless the possibility of an outflow of
resources embodying economic benefits or service potential is remote.

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3.18. Revenue from non-exchange transactions

a. Recognition of assets from non-exchange transactions

An inflow of resources from a non-exchange transaction, other than services

in-kind, that meets the definition of an asset is recognized as an asset if it is
probable that the future economic benefits or service potential associated
with the asset will flow to the agency; and if the fair value of the asset can
be measured reliably. An asset acquired through a non-exchange transaction
is initially measured at fair value at the date of acquisition.

b. Recognition and measurement of revenue from non-

exchange transactions

An inflow of resources from a non-exchange transaction recognized as an

asset is recognized as revenue, except to the extent that a liability was also
recognized in respect of the same inflow.

As the recipient agency satisfies the present obligation recognized as a

liability in respect of an inflow of resources from a non-exchange
transaction recognized as an asset, the carrying amount of the liability
recognized is reduced and an amount of revenue equal to that reduction is
recognized.

Revenue from a non-exchange transaction is measured at the amount of the

increase in net assets recognized by the agency, unless a corresponding
liability is recognized.

c. Measurement of liabilities on initial recognition from

non-exchange transactions

The amount recognized as a liability in a non-exchange transaction is the

best estimate of the amount required to settle the present obligation at the
reporting date.

d. Taxes

Taxes and the related fines and penalties are recognized when collected or
when these are measurable and legally collectible. The related refunds that
are measurable and legally due to the taxpayers are deducted from the
recognized tax revenue if refunds are done during the year the taxes are
collected.

e. Fees and fines not related to taxes

Revenue from fees and fines, except those related to taxes, is recognized
when earned and when the asset recognition criteria are met.

Deferred income is recognized instead of revenue if there is a related

condition attached that would give rise to a liability to repay the amount.

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 Other non-exchange revenue is recognized when it is probable that the
future economic benefits or service potential associated with the asset will
flow to the agency and the fair value of the asset can be measured reliably.

f. Gifts and donations

Assets and revenue from gifts and donations are recognized when it is
probable that the future economic benefits or service potential will flow to
the agency and when the fair value of the assets can be measured reliably.

Goods in-kind are recognized as assets when the goods are received, or
when there is a binding arrangement to receive the goods. If goods in-kind
are received without condition, revenue is recognized immediately. If
conditions are attached, a liability is recognized, which is reduced as
revenue is recognized when the conditions are satisfied.

Gifts and donations including goods in-kind are initially measured at fair
value as at the date of acquisition, which is ascertained by reference to an
active market, or by appraisal. An appraisal of the value of an asset is
normally undertaken by a member of the valuation profession who holds a
recognized and relevant professional qualification. For many assets, the fair
value is ascertained by reference to quoted prices in an active and liquid
market.

g. Services in-kind

Services in-kind are not recognized as asset nor revenue considering the
complexity of the determination and recognition of asset and revenue and
the eventual recognition of expenses.

3.19. Revenue from exchange transactions

a. Measurement

Revenue from exchange transactions is measured at the fair value of the

consideration received or receivable. Revenue is recognized when it is
probable that the future economic benefits or service potential will flow to
the agency and when these benefits can be measured reliably.

b. Rendition of services

Revenue from the rendition of services is recognized by reference to the

stage of completion when the outcome of the transaction can be estimated
reliably. The stage of completion is measured by reference to labor hours
incurred as at reporting date as a percentage of total estimated labor hours.

When the contract outcome cannot be measured reliably, revenue is

recognized only to the extent that the expenses incurred are recoverable.

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 c. Sale of goods

Revenue from the sale of goods is recognized when the significant risks and
rewards of ownership are transferred to the buyer, usually upon delivery of
the goods and when the amount of revenue can be measured reliably and
when it is probable that future economic benefits or service potential
associated with the transaction will flow to the agency.

d. Interest income

Interest income is accrued using the effective yield method. The effective
yield discounts estimated future cash receipts through the expected life of
the financial asset to that asset’s net carrying amount. The method applies
this yield to the outstanding principal to determine interest income for each
period.

e. Dividends

Dividends or similar distributions are recognized when the agency’s right to

receive payment is established.

f. Rental Income

Rental income arising from operating leases on investment properties is

accounted for on a straight-line basis over the lease terms and included in
revenue.

3.20. Foreign currency transactions

Transactions in foreign currencies are recorded in Philippine peso based on

Bangko Sentral ng Pilipinas (BSP) exchange rate prevailing at the date of the
transaction. Foreign currency denominated monetary assets and liabilities at the
reporting date are restated based on BSP Weighted Average Rate published on
the first working day of the following month in the BSP Reference Exchange
Rate Bulletin. Any difference in the revaluation of assets and liabilities is
recognized as a gain or loss on foreign exchange.

3.21. Budget information

The annual budget is prepared on a cash basis and is published in the DBM
website.

To enable comparability between budget and actual results, both budgeting and
reporting systems must be prepared under similar assumptions allowing easy
understanding and assessment. The symmetry is fundamental as it determines
accountability for implementing the budget as authorized.

The SCBAA is prepared as an additional component of the FSs, as the budget

and the FSs were not prepared on a comparable basis. The SCBAA presents the
original and final budget, and the actual receipts and payments. Explanatory

81
 comments on the overall growth/decline of the budget including details of
overspending/underspending are provided in the notes to FSs.

4. CASH AND CASH EQUIVALENTS

The total Cash and Cash Equivalents as at December 31, 2020 is composed of the
following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Cash on Hand 3,588,149 3,286,641
Cash in Bank-Local Currency 845,793,191 311,585,263
Cash in Bank-Foreign Currency 297,733,982 146,854,600
Cash Equivalents 43,466,404 55,465,063
Sub-Total 1,190,581,726 517,191,566
Less: Treasury/Agency Cash Accounts (561,451,595) (520,448,857)
Total 629,130,132 (3,257,291)

4.1. Cash on Hand

Cash on Hand consists of Cash-Collecting Officers and Petty Cash amounting

to P3.19 billion and P398.74 million, respectively.

a. Cash-Collecting Officers

Cash-Collecting Officers represents the sum of money received by

authorized collecting officers but remained unremitted/undeposited to the
National Treasury or to authorized government depository banks (AGDBs)
as at the reporting date. Unremitted/undeposited collections were reported
by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 991,670 31.09
Social Welfare and Development 585,163 18.35
State Universities and Colleges 440,863 13.82
Finance 247,964 7.77
Justice 241,792 7.58
Transportation 173,953 5.45
Health 155,336 4.87
Energy 66,840 2.10
Information and Communication Technology 52,647 1.65
Foreign Affairs 48,762 1.53
Sub-total 3,004,991 94.22
Other Departments/Offices 184,414 5.78
Total 3,189,404 100.00

b. Petty Cash

This refers to the unexpended portion of PCF still in the possession of petty
cash custodians as at the reporting date. The departments/offices which

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 reported balances of Petty Cash are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Interior and Local Government 64,864 16.27
Social Welfare and Development 62,779 15.74
Health 51,789 12.99
Education 48,626 12.19
State Universities and Colleges 40,418 10.14
Transportation 27,300 6.85
National Defense 17,913 4.49
Other Executive Offices 13,422 3.37
Commission on Elections 8,499 2.13
Agriculture 6,752 1.69
Sub-total 342,364 85.86
Other Departments/Offices 56,380 14.14
Total 398,745 100.00

4.2. Cash in Bank-Local Currency

Cash in Bank-Local Currency is composed of the following accounts:

2019
2020
Particulars (Restated)
(in thousand pesos)
Bangko Sentral ng Pilipinas 515,376,162 28,124,516
Current Account 272,146,655 210,996,625
Savings Account 58,270,374 72,464,122
Total 845,793,191 311,585,263

a. Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas

This pertains to the deposits made with the BSP. This includes deposits
recognized by BTr for the collections remitted by various agencies,
proceeds from the issuances/flotations and maturities of treasury bills (T-
Bills) and treasury bonds (T-Bonds), and fund transfers from other cash
accounts of the BTr.

b. Cash in Bank-Local Currency, Current Account

Cash in Bank-Local Currency, Current Account pertains to the deposits

made by agencies to AGDBs for income authorized to be used under
specific laws and trust receipts authorized under specific contracts and
agreements. The departments/offices maintaining peso deposits in current
account with AGDBs are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 41,807,570 15.36
Finance 39,557,170 14.54
Budget and Management 33,475,293 12.30
Office of the President 32,970,657 12.12
Health 18,135,184 6.66
National Defense 14,086,592 5.18

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 Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 12,943,854 4.76
Education 11,498,736 4.23
Trade and Industry 8,278,829 3.04
Transportation 8,025,578 2.95
Sub-total 220,779,464 81.13
Other Departments/Offices 51,367,191 18.87
Total 272,146,655 100.00

c. Cash in Bank-Local Currency, Savings Account

The peso savings accounts in local currency maintained with AGDBs were
reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 25,977,766 44.58
Finance 24,703,394 42.39
State Universities and Colleges 2,802,867 4.81
National Defense 1,467,566 2.52
Budget and Management 860,465 1.48
Labor and Employment 606,951 1.04
Health 432,159 0.74
Presidential Communications Operations Office 407,835 0.70
Trade and Industry 207,498 0.36
Justice 184,800 0.32
Sub-total 57,651,301 98.94
Other Departments/Offices 619,073 1.06
Total 58,270,374 100.00

4.3. Cash in Bank-Foreign Currency

Cash in Bank-Foreign Currency is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Bangko Sentral ng Pilipinas 279,565,154 130,034,744
Current Account 9,898,979 9,415,496
Savings Account 8,269,849 7,404,359
Total 297,733,982 146,854,600

a. Cash in Bank-Foreign Currency, Bangko Sentral ng Pilipinas

This refers to the deposits of the BTr with the BSP for the collections from
agencies, proceeds from borrowings and grants, and proceeds from
maturities on investments in foreign currencies.

b. Cash in Bank-Foreign Currency, Current Account

Cash in Bank-Foreign Currency, Current Account refers to foreign currency

deposits of agencies implementing foreign-assisted projects and those

84
 authorized by a regulation or by the lending/donor institution to maintain
Special Account/Imprest Account/Working Fund. The total foreign
currency deposits in current account maintained with AGDBs was reported
by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Foreign Affairs 9,125,009 92.18
State Universities and Colleges 655,847 6.63
Labor and Employment 68,077 0.69
Finance 49,936 0.50
Environment and Natural Resources 110 0.00
Total 9,898,979 100.00

The amount of P9.13 billion reported by the Department of Foreign Affairs

(DFA) pertains to the cash in bank retained at foreign service posts (FSPs)
as working funds.

c. Cash in Bank-Foreign Currency, Savings Account

This pertains to foreign currency deposits of agencies implementing

foreign-assisted projects and those authorized to maintain Special
Accounts/Imprest Accounts. The departments/offices with foreign currency
deposits in savings accounts with AGDBs are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 3,695,841 44.69
Energy 1,042,041 12.60
Finance 1,028,406 12.44
Transportation 550,401 6.66
Foreign Affairs 353,993 4.28
Public Works and Highways 297,384 3.60
Social Welfare and Development 296,067 3.58
Labor and Employment 250,550 3.03
State Universities and Colleges 179,430 2.17
Commission on Audit 165,164 2.00
Sub-total 7,859,276 95.04
Other Departments/Offices 410,573 4.96
Total 8,269,849 100.00

Cash in Bank-Foreign Currency, Savings Account recognized by the

Department of Agriculture (DA) refers to cash received by the offices and
bureaus under the DA and Bureau of Fisheries and Aquatic Resources for
the implementation of various foreign-assisted projects.

The balances reported by the Department of Energy (DOE) were foreign

currency deposits maintained with the Philippine National Bank (PNB) of
P891.23 million and with the Banco de Oro (BDO) of P150.81 million. The
deposits with the PNB represent the partial credit guarantee component of
the Electric Cooperative System Loss Reduction Project which is currently
in escrow. The amount maintained with BDO is intended for the “Capacity
Building to Remove Barriers to Renewable Energy Development” Project

85
 funded under the Global Environmental Facility Fund. This project was
initially implemented in 2003 and concluded in 2012. The said trust fund,
however, has not yet been turned over to the BTr as at December 31, 2020.

Other Notes on Local and Foreign Currency Deposits

As at December 31, 2020, Cash in Bank recognized by the BTr for the account of the
NG amounted to P856.35 billion. This comprises deposits in local currency of P575.75
billion, and in foreign currencies of P280.59 billion. The BTr reported that dormant
accounts amounting to P600.48 million were identified from these deposits subject to
verification and request for write-off, if applicable. The total Cash in Bank of P856.35
billion is composed of the following:
Amount
Particulars
(in thousand pesos)
Free balances 516,850,224
Modified Disbursement System (MDS) seed money 26,069,739
Restricted accounts 309,540,529
Project loan/grant proceeds 3,886,763
Total 856,347,256

Free balances pertain to the amounts available for use for NG operations. Details are as
follows:

Amount
Particulars
(in thousand pesos)
Treasurer of the Philippine (TOP) Treasury Single Account (TSA) 206,912,768
BSP-Foreign Currency Deposit (FCD) Dollar Account 164,330,512
BSP-FCD Yen Account 675,564
BSP-Foreign Currency Time Deposit (FCTD) Dollar Account 112,666,953
LBP-Savings Accounts 1,635,619
LBP-LCCA 999,108
LBP-FCD Dollar Account 846,176
UCPB-Savings Accounts 20,014,898
Authorized Agent Banks-BIR 5,665,240
Authorized Agent Banks-BOC 2,448,373
Various accounts 655,012
Total 516,850,224

The MDS Seed Money refers to the portion of cash reserved to pay expenditures
charged against MDS accounts. This is being replenished daily by the BTr upon request
by Authorized Servicing Banks (ASBs). The MDS Seed Money is composed of the
following accounts:

Amount
Particulars
(in thousand pesos)
Land Bank of the Philippines-MDS 24,323,164
Development Bank of the Philippines-MDS 1,682,232
Philippine Veterans Bank-MDS 64,343
Total 26,069,739

Restricted accounts represent special/sinking funds, managed funds and escrow

accounts. These consist of the following accounts:

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 Amount
Particulars
(in thousand pesos)
TSA NG Bond Sinking Fund (BSF) 296,980,535
TSA NG Special Guaranty Fund (SGF) 343,591
TSA Securities Stabilization Fund (SSF) 3,286,327
TSA Foreign Swiss Deposit 2,806,297
TSA Presidential Commission on Good Government (PCGG) Escrow 1,523,039
TSA NCCA 918,676
TSA Metropolitan Waterworks and Sewerage System SRF 378,754
LBP SA PD Agro Industry Modernization Credit & Financing Program 879,512
TFCA2 Fund 1,454,316
LBP-Small Business Wage Subsidy 361,759
Various accounts 607,724
Total 309,540,529

Project loan/grant proceeds refer to the amounts earmarked for utilization by various
implementing agencies, as follows:

Amount
Particulars
(in thousand pesos)
BSP-Peso Deposits (various) 2,026,211
BSP-Foreign Currency Deposits (various) 1,860,044
LBP-Foreign Currency Deposits (various) 509
Total 3,886,763

4.4. Cash Equivalents

Cash Equivalents is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Treasury Bills 899,049 793,395
Time Deposits-Local Currency 31,776,616 40,596,888
Time Deposits-Foreign Currency 10,790,739 14,074,779
Total 43,466,404 55,465,063

a. Treasury Bills

Treasury Bills (T-Bills) represents placements made by the National

Museum of the Philippines (NMP), University of the Philippines System
(UPS) and Department of Labor and Employment (DOLE) amounting to
P597.57 million, P162.00 million and P139.48 million, respectively. The T-
Bills held by the NMP are investments, including interests earned,
authorized under NM Resolution No. 2-2019 dated January 30, 2019. The
T-Bills of UPS pertains to the balance of UP-Los Baños maintained with the
LBP and DBP. On the other hand, the T-Bills of DOLE are in accordance
with the memorandum of agreement entered into by the department and the
LBP, which consists of the balances of the Social Amelioration Program
funds including interests accrued therefrom.

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 b. Time Deposits- Local Currency

This pertains to authorized placements of cash in local currency with

AGDBs for a specific period of time. Time deposits in local currency
maintained with AGDBs was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 26,625,881 83.79
Budget and Management 3,500,000 11.01
The Judiciary 1,232,282 3.88
Trade and Industry 153,005 0.48
Transportation 133,321 0.42
Agrarian Reform 70,810 0.22
Education 60,000 0.19
Finance 1,303 0.00
National Defense 15 0.00
Total 31,776,616 100.00

c. Time Deposits- Foreign Currency

This represents placements of cash in foreign currency with AGDBs for a

specific period of time. The total time deposits in foreign currency
maintained with AGDBs was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 10,741,695 99.55
State Universities and Colleges 49,044 0.45
Total 10,790,739 100.00

4.5. Treasury/Agency Cash Accounts

Treasury/Agency cash accounts consists of the following:

2019
2020
Account (Restated)
(in thousand pesos)
Cash-Treasury/Agency Deposit, Special Account
(Reported by NGAs except the BTr-NG) 114,094,209 93,629,504
Less: BTr-NG Credit Balance (655,748,917) (608,930,897)
Sub-Total (541,654,708) (515,301,393)
Cash-Treasury/Agency Deposit, Trust
(Reported by NGAs except the BTr-NG) 36,147,427 36,239,318
Less: BTr-NG Credit Balance (55,944,313) (41,386,783)
Sub-Total (19,796,886) (5,147,464)
Total (561,451,595) (520,448,857)

The Cash-Treasury/Agency Deposit cash accounts are reciprocal accounts in

the books of the BTr-NG and other NGAs, and should have been reconciled and
eliminated at the end of the year. For FY 2020, the BTr-NG Books reported
credit balances of Cash-Treasury/Agency Deposit, Special Account and Cash-
Treasury/Agency Deposit, Trust in the amount of P655.75 billion and P55.94
billion, respectively. Other NGAs reported debit balances of P114.09 billion,

88
and P36.15 billion for the same accounts, respectively. However, the non-
reconciliation of these accounts by the BTr-NG and other NGAs resulted in the
net credit balance of Cash-Treasury/Agency Deposit, Special Account of
P541.65 billion and Cash-Treasury/Agency Deposit, Trust of P19.80 billion,
thereby understating the total cash and cash equivalents of the NG by P561.45
billion. The BTr, therefore, requires all agencies concerned to provide copies of
Statement of Account and Utilization Reports to identify discrepancies and
effect adjustments, if appropriate.

The departments/offices with balances of Cash-Treasury/Agency Deposit

accounts are as follows:

Treasury/ Treasury/
Agency Agency
Total Percent
Department/Office Deposit, Deposit,
to Total
Special Trust
(in thousand pesos)
Transportation 68,114,913 1,536,400 69,651,312 46.36
Justice 8,448,668 3,066,217 11,514,885 7.66
Interior and Local Government 9,125,074 1,301,521 10,426,595 6.94
Agriculture 9,138,271 244,515 9,382,786 6.25
Finance 4,283,388 4,485,027 8,768,415 5.84
Public Works and Highways - 8,594,667 8,594,667 5.72
National Defense 3,652,239 1,652,176 5,304,415 3.53
Energy 3,891,155 - 3,891,155 2.59
Labor and Employment 2,237,348 1,400,470 3,637,818 2.42
Health 1,381,809 1,814,496 3,196,305 2.13
Sub-Total 110,272,864 24,095,488 134,368,352 89.43
Other Departments/Offices 3,821,345 12,051,939 15,873,283 10.57
Total (Debit Balance) 114,094,209 36,147,427 150,241,636 100.00
BTr-NG (credit balance) (655,748,917) (55,944,313) (711,693,230)
Total (541,654,708) (19,796,886) (561,451,595)

a. Cash-Treasury/Agency Deposit, Special Account

This account refers to the collections of various NGAs pertaining to SAGF

that were remitted to the BTr. This includes, among others, the remittances
of the Department of Transportation for the collections under Motor Vehicle
Users’ Charge Fund and Seat Belt Use Fund amounting to P67.29 billion.
This also comprises the receipts of the LRA under the DOJ of P8.42 billion
representing the 20 percent share of the LRA from land registration fees
under Presidential Decree (P.D.) No. 1529. Also forming part of Cash-
Treasury/Agency Deposit, Special Account are remittances of the DILG
comprising the collections of the Bureau of Fire Protection from fees and
fines specified under Republic Act (R.A.) No. 9514 amounting to P9.13
billion.

The complete list of SAGF maintained by NGAs and their individual UACS
codes can be accessed through the UACS manual prescribed under COA-
DBM-DOF Joint Circular No. 2013-1 dated August 6, 2013, and through
the UACS website (http://www.uacs.gov.ph).

89
 b. Cash-Treasury/Agency Deposit, Trust

This account is used to recognize the remittances of collections of NGAs for

trust receipts and trust funds. This includes, among others, inter-agency fund
transfers, collections of security deposits, and receipts from
grants/donations with term of one year or less.

5. INVESTMENTS

The current portion of NG investments comprises the following accounts:

2019
2020
Particulars (Restated)
(in thousand pesos)
Financial Assets at Fair Value through Surplus or Deficit 920 920
Financial Assets-Held to Maturity 1,619,792 2,308,945
Sinking Fund 101,034,662 82,593,782
Investments in Time Deposits 34,899,762 -
Total 137,555,136 84,903,647

5.1. Financial Assets at Fair Value through Surplus or Deficit

This represents the Philippine Normal University’s investments in preferred

stocks and other deposits to Manila Electric Company.

5.2. Financial Assets-Held to Maturity

Financial Assets-Held to Maturity is composed of the following accounts:

2019
2020
Particulars (Restated)
(in thousand pesos)
Investments in Treasury Bills-Local 859,933 1,534,174
Investments in Treasury Bonds-Local 759,859 774,771
Total 1,619,792 2,308,945

a. Investments in Treasury Bills-Local

This pertains to money invested in T-Bills with 91 days and above maturity
issued by the NG thru the BTr. The total Investments in Treasury Bills-Local
was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 799,514 92.97
State Universities and Colleges 58,500 6.80
Trade and Industry 1,918 0.22
Total 859,933 100.00

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 b. Investments in Treasury Bonds-Local

Investments in Treasury Bonds-Local represents the retail treasury bonds

acquired by the UPS and University of Northern Philippines amounting to
P735.09 million and P24.77 million, respectively.

5.3. Sinking Fund

The balance of P101.03 billion reported by the BTr consists of investments in

time deposits and T-Bills, and BSF set aside to cover redemption of issued and
outstanding bonds of LBP-Agrarian Reform Fund (ARF). Details are as
follows:

Amount
Particulars
(in thousand pesos)
BSF-FCTD-Dollar (DBP) 26,521,791
BSF-FCTD-Dollar (LBP) 19,134,329
BSF-Securities (T-Bills) 30,346,422
DBP-BSF-TD 25,000,000
LBP- ARF BSF 32,120
Total 101,034,662

5.4. Investments in Time Deposits

Investments in Time Deposits comprises the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Investments in Time Deposits-Local Currency 17,725,157 -
Investments in Time Deposits-Foreign Currency 17,174,604 -
Total 34,899,762 -

a. Investments in Time Deposits-Local Currency

This includes authorized placements in time deposits of cash in local

currency with AGDBs for a period of 91 days or more, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 15,798,001 89.13
DBP 52 0.00
LBP 15,797,949 89.13
Trade and Industry 1,810,065 10.21
DBP 838,238 4.73
LBP 971,827 5.48
Agriculture 117,091 0.66
LBP 80,294 0.45
UCPB 36,797 0.21
Total 17,725,157 100.00

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 b. Investments in Time Deposits-Foreign Currency

This includes authorized placements in time deposits of cash in foreign

currency with AGDBs for a period of 91 days or more. These investments
are reported by the following departments/offices:

Amount Percent
Department/Office/AGDBs
(in thousand pesos) to Total
Finance 17,132,491 99.75
DBP-Dollar 2,422,403 14.10
DBP-Dollar Escrow 259,589 1.51
LBP-Dollar 14,281,257 83.15
PNB-Dollar 169,242 0.99
Trade and Industry 42,113 0.25
LBP-Dollar 42,113 0.25
Total 17,174,604 100.00

6. RECEIVABLES

Current Receivables outstanding as at yearend aggregated to P1.040 trillion, net of

Allowance for Impairment of P9.61 billion. These receivables are composed of the
following:

2019
2020
(Restated)
Allowance
Particulars Gross for Carrying Carrying
Amount Impairme Amount Amount
nt
(in thousand pesos)
Loans and Receivable Accounts 145,207,049 7,625,410 137,581,639 156,651,424
Lease Receivables 474,374 25,451 448,924 468,663
Inter-Agency Receivables 731,314,824 981,514 730,333,309 698,971,484
Intra-Agency Receivables 17,769,541 - 17,769,541 12,589,027
Other Receivables 155,219,622 975,546 154,244,076 84,128,756
Total 1,049,985,410 9,607,920 1,040,377,490 952,809,354

6.1. Loans and Receivable Accounts

This group of accounts is composed of the following:

2019
2020
(Restated)
Allowance
Particulars Gross for Carrying Carrying
Amount Impairme Amount Amount
nt
(in thousand pesos)
Accounts Receivable 35,628,556 3,613,252 32,015,304 29,016,320
Notes Receivable 309,994 52,207 257,787 250,698
Loans Receivable-Government- 15,973,816 1,325,374 14,648,442 4,983,344
Owned or Controlled Corporations
Loans Receivable-Local Government 201,688 8,851 192,837 9,674,156
Units

92
 2019
2020
(Restated)
Allowance
Particulars Gross for Carrying Carrying
Amount Impairme Amount Amount
nt
(in thousand pesos)
Interests Receivable 70,262,427 59,393 70,203,034 75,040,322
Dividends Receivable - - - 22,019,742
Tax Receivable 412,691 412,691 -
Receivables from Joint Ventures - - - 2
Loans Receivable-Others 22,417,877 2,566,332 19,851,545 15,666,839
Total 145,207,049 7,625,410 137,581,639 156,651,424

a. Accounts Receivable

Accounts Receivable arising from regular trade and business transactions

amounted to P32.02 billion, net of Allowance for Impairment of P3.61
billion. The departments/offices with balances of Accounts Receivable, Net
are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 12,331,449 38.52
Health 6,991,226 21.84
State Universities and Colleges 5,726,486 17.89
Information and Communication Technology 3,375,526 10.54
Energy 1,486,802 4.64
Environment and Natural Resources 825,224 2.58
Justice 275,632 0.86
Presidential Communications Operations Office 210,709 0.66
Trade and Industry 168,960 0.53
Agriculture 167,149 0.52
Sub-total 31,559,164 98.58
Other Departments/Offices 456,140 1.42
Total 32,015,304 100.00

The Accounts Receivable of the DOF includes claims of the BTr under
LBP-ARF for the land acquired by agrarian reform beneficiaries in
accordance with the provisions of Republic Act (R.A.) No. 3844, R.A. No.
9700, R.A. No. 6657, Presidential Decree (P.D.) No. 27, Executive Order
(E.O.) No. 228, E.O. No. 229 and Letter of Instruction No. 1180A. It also
includes dues from landowners/farmers/beneficiaries/cooperatives arising
from land transfer claim and other loan related transactions, and portion of
the contract price of sold real and other properties acquired (ROPA) in
settlement of ARF funded loans. Details are as follows:

Gross Allowance for Carrying

Particulars Amount Impairment Amount
(in thousand pesos)
Agrarian Reform Receivable 14,743,998 2,340,742 12,403,257
Claims from Landowners, etc. 10,700 10,062 638
Contract Receivable – Sold ROPA 172 - 172
Total 14,754,870 2,350,804 12,404,067

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b. Notes Receivable

The current portion of Notes Receivable of P257.79 million, net of

Allowance for Impairment of P52.21 million, was reported by the following
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 249,491 96.78
Agriculture 5,225 2.03
Science and Technology 2,917 1.13
State Universities and Colleges 155 0.06
Total 257,787 100.00

The Notes Receivable of P249.49 million, net of Allowance for Impairment

of P12.54 million, reported by the DOH pertains to the promissory notes
issued by several patients for services rendered to them by different
government hospitals.

The balance of the DA of P5.23 million, net of Allowance for Impairment

of P39.67 million, represents the receivables of the Philippine Council for
Agriculture and Fisheries (PCAF) and the Philippine Fiber Industry
Development Authority (PhilFIDA). The amount of P37.92 million which
was reported by PCAF as totally impaired represents receivables from
Victoria Multi-Purpose Cooperative since 1998 for sales under contract of
10,139.93 metric tons of urea fertilizer-commodity grants provided under
the United States Public Law 480 Title I Program. The balance of P5.23
million, net of Allowance for Impairment of P1.74 million, reported by the
PhilFiDA pertains to the dormant accounts of Imperial Textile Mills and
Atlas Development Corporation which are subject of request for authority
to write off.

c. Loans Receivable-Government-Owned
or Controlled Corporations

Loans Receivable-Government-Owned or Controlled Corporations pertains

to credits/loans in foreign or local currency extended by the NG to the
GFIs/GOCCs covered by loan agreements. The following
departments/offices reported balances of this account as at yearend:

Amount Percent to
Department/Office
(in thousand pesos) Total
Finance 12,893,950 88.02
Agriculture 1,623,324 11.08
Agrarian Reform 122,973 0.84
Energy 8,196 0.06
Total 14,648,442 100.00

d. Loans Receivable-Local Government Units

This refers to the credit extended to local government units covered by loan
agreements. Among the departments/offices of the NG, the following

94
 reported balances of this account:

Amount Percent
Department/ Office
(in thousand pesos) to Total
Agriculture 192,604 99.88
State Universities and Colleges 233 0.12
Total 192,837 100.00

Loans granted by DA to LGUs are composed of loans in the form of 4-wheel

tractors, irrigation pumps and warehouses with a repayment period of 5-10
years. These also include loans granted to LGUs under the Agricultural
Competitiveness Enhancement Fund (ACEF).

e. Interests Receivable

This represents accrued interests on advances and investments. Interests

Receivable expected to be collected within the next 12 months from the
reporting date was reported by the following departments/offices:

Amount Percent
Department/ Office
(in thousand pesos) to Total
Finance 69,206,025 98.58
Other Departments/Offices 997,009 1.42
Total 70,203,034 100.00

The amount of P69.21 billion reported by the DOF consists mainly of

interests recognized by the BTr on NG advances of P57.24 billion, Treasurer
of the Philippines FCTD of P249.49 million, and in various time deposits,
government securities and managed funds of P11.71 billion. This also
includes the interest earned from LBP-ARF of P11.54 million.

f. Dividends Receivables

The Dividends Receivable from GOCCs/GFIs pursuant RA 7656 or the

GOCC dividend law amounting to P22.02 billion as at December 31, 2019
were collected in FY 2020 in line with the implementation of Bayanihan to
Heal as One Act.

g. Tax Receivable

Tax receivables of P412.69 million are reported by the Bureau of Internal

Revenue Regions 3 (Tuguegarao, Cagayan), 11 (Iloilo City) and 14 (Eastern
Visayas).

h. Loans Receivable-Others

Loans, net of allowance for impairment of P2.57 billion, granted to

recipients other than GOCCs and LGUs were reported by the following
departments/offices:

95
 Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 12,429,704 62.61
Education 5,193,351 26.16
Other Departments/Offices 2,228,490 11.23
Total 19,851,545 100.00

Loans recognized by the DA are those granted to beneficiaries of ACEF,

Western Visayas “in life” Program, and Comprehensive Agrarian Reform
Program (CARP), and those loans granted to farmers and cooperatives in
the form of post-harvest equipment, facilities, shallow tube wells, open
surface sources and other farm supplies and equipment. These also include
the unpaid portion of ACPC loans to cooperatives which are due and
demandable.

6.2. Lease Receivable

The current portion of Lease Receivable consists of Operating Lease Receivable

and Finance Lease Receivable of P363.68 million and P85.25 million,
respectively.

a. Operating Lease Receivable

Rental income from lease of assets which remained uncollected as at

yearend were reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 188,246 51.76
State Universities and Colleges 76,322 20.99
Other Executive Offices 36,460 10.03
Environment and Natural Resources 20,064 5.52
National Defense 18,673 5.13
Tourism 13,795 3.79
Education 8,738 2.40
Transportation 1,279 0.35
Science and Technology 102 0.03
Total 363,678 100.00

b. Finance Lease Receivable

The PMO reported the total Finance Lease Receivable of P71.20 million
and P14.05 million from the Provincial Government of Abra and Triplex
Enterprises, Incorporated, respectively.

6.3. Inter-Agency Receivables

The details of this group of accounts are presented below:

96
 2019
2020
Particulars (Restated)
(in thousand pesos)
Due from National Government Agencies 45,318,091 35,710,451
Due from Government-Owned or Controlled Corporations 631,014,389 628,014,622
Due from Local Government Units 54,000,830 35,246,412
Total 730,333,309 698,971,484

a. Due from National Government Agencies

This represents the advances/fund transfers to NGAs for the procurement of

goods and services as authorized by law and for the implementation of
various programs/projects under specific contracts and agreements, and
other receivables from agencies.

The balance of Due from National Government Agencies account was

netted against the balance of Due to National Government Agencies account
to eliminate the effect of inter-agency transactions for the NG as a whole.
However, some agencies failed to reconcile such accounts, thereby resulting
in residual balance of P45.32 billion for FY 2020, details as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Due from National Government Agencies 171,042,035 114,679,971
Less: Allowance for Impairment (26,207) (9,759)
Book Value 171,015,828 114,670,212
Less: Due to National Government Agencies 125,697,738 78,959,762
Difference 45,318,091 35,710,451

The unliquidated/unpaid portion of inter-agency advances/fund transfers

were reported by the following departments/offices:

Due from NGAs Due to NGAs

Department/Office
(in thousand pesos)
Health 40,331,822 2,178,618
Other Executive Offices 32,683,667 1,008,997
Budget and Management 2,254,027 30,818,445
Finance 2,623,740 27,764,217
Transportation 17,470,882 8,995,900
Science and Technology 20,037,386 5,285,852
Public Works and Highways 2,457,693 22,609,977
State Universities and Colleges 8,431,374 12,036,109
Agriculture 8,652,163 2,283,121
National Defense 3,039,461 5,885,600
Sub-total 137,982,216 118,866,836
Other Departments/Offices 33,033,613 6,830,902
Total 171,015,828 125,697,738

b. Due from Government-Owned or Controlled Corporations

Due from Government-Owned or Controlled Corporations refers to

advances for the purchase of goods/services as authorized by law, fund

97
 transfers to the GCs for implementation of projects, guarantee fees for NG-
guaranteed loans of Government Financial Institutions (GFIs)/GCs, NG
advances for debt service payments on NG-relent or guaranteed loans of
GFIs/GCs and other receivables from GFIs/GCs. Unliquidated/unpaid
portion of this account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 522,603,971 82.82
Agriculture 25,903,751 4.11
Transportation 16,680,474 2.64
National Defense 13,425,782 2.13
Health 12,482,882 1.98
Social Welfare and Development 9,605,800 1.52
Public Works and Highways 6,075,516 0.96
Interior and Local Government 4,595,942 0.73
Commission on Audit 3,881,493 0.62
Trade and Industry 3,703,837 0.59
Sub-Total 618,959,448 98.09
Other Departments/Offices 12,054,941 1.91
Total 631,014,389 100.00

Due from Government-Owned or Controlled Corporations recognized by

the DOF is composed primarily of receivables of the BTr for the account of
the NG. Details are as follows:

Amount
Particulars
(in thousand pesos)
1. NG’s refinancing of BSP advances/payments on liabilities
– Central Bank-Board of Liquidators (CB-BOL) 274,228,654
2. NG advances in behalf of GCs/GFIs for their foreign and
domestic obligations (principal, interest and other charges) 199,606,944
3. Guarantee fee receivables from GCs/GFIs 31,319,476
4. NG share on revenue of PAGCOR 1,357,354
5. Passenger terminal fees and NG share on revenue of
GOCCs 8,690
6. NG advances for assumed GCs/GFIs guaranteed
obligations 1,766,852
7. Dormant accounts subject to verification and consequently
will be requested for write-off 6,507,161
8. Overdue accounts from Loans Receivable which were
reclassified to Due from GOCCs 2,726,669
9. Balance of loans outlay released to LBP under the Agrarian
Reform Loans 1,235,038
10. NG Receivable from BSP on International Monetary Fund
remuneration on the reserve tranche 1,188,366
11. LBP-ARF Clearing Account with the LBP for ARF
collections 151,927
12. Others 74,332
Total 520,171,464

c. Due from Local Government Units

This represents balances of funds transferred to LGUs for purchase of

goods/services as authorized by law, fund transfers to the LGUs for

98
 implementation of projects, share from LGUs’ income, and other
receivables. The departments/offices with balances of this account are the
following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 13,372,549 24.76
Agriculture 12,798,454 23.70
Health 9,011,183 16.69
Labor and Employment 4,594,342 8.51
Transportation 3,426,641 6.35
Interior and Local Government 3,054,795 5.66
Other Executive Offices 1,831,867 3.39
Public Works and Highways 1,739,255 3.22
Education 815,005 1.51
Environment and Natural Resources 813,719 1.51
Sub-Total 51,457,810 95.29
Other Departments/Offices 2,543,020 4.71
Total 54,000,830 100.00

Due from LGUs reported by the DSWD includes community grants to

various barangays, and funds given to provinces/municipalities/cities for the
implementation of various social and human development programs. On the
other hand, funds transferred by the DA to LGUs are intended for the
implementation of infrastructure and post-harvest facility projects such as
farm-to-market roads, small water impounding projects, and repair and
rehabilitation of existing irrigation system. These are also intended to carry
out National Livestock Program, tramline projects being implemented by
Philippine Center for Postharvest Development and Mechanization
(PhilMech) and other community-based projects involving agriculture and
fisheries.

6.4. Intra-Agency Receivables

Intra-Agency Receivables refers to reciprocal accounts within the agency

between the Central Office, Staff Bureaus, ROs and OUs. Components of this
account are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Due from Central Office 2,172 157,938
Due from Regional Offices 7,317,915 5,449,486
Due from Operating Units/Field Units 10,175,321 6,523,510
Due from Other Funds 274,133 458,093
Total 17,769,541 12,589,027

Effects of intra-agency transactions were eliminated during consolidation.

Agencies match related transactions to eliminate in full their account balances.
As at yearend, however, unmatched balances were reported by the following
departments/offices:

99
 Amount Percent
Department/Office
(in thousand pesos) to Total
Education 12,397,459 69.77
Agriculture 1,502,558 8.46
Public Works and Highways 1,068,963 6.02
Foreign Affairs 733,928 4.13
Agrarian Reform 733,623 4.13
Health 539,402 3.04
National Defense 211,525 1.19
State Universities and Colleges 207,748 1.17
Information and Communication Technology 135,191 0.76
Labor and Employment 125,510 0.71
Sub-Total 17,655,909 99.36
Other Departments/Offices 113,632 0.64
Total 17,769,541 100.00

6.5. Other Receivables

Details of this group of accounts are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Receivables-Disallowances/Charges 8,841,479 8,902,348
Due from Officers and Employees 1,720,225 1,808,406
Due from Non-Government Organizations/ People’s 28,751,099 14,711,537
Organizations
Other Receivables 114,931,273 58,706,465
Total 154,244,076 84,128,756

a. Receivables-Disallowances/Charges

This refers to disallowances/charges imposed by the auditors due from

public and private agencies or individuals which have become final and
executory. As at yearend, the balance of this account was reported by the
following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,957,339 22.14
National Defense 1,285,408 14.54
Public Works and Highways 1,243,166 14.06
Interior and Local Government 635,138 7.18
Agriculture 603,935 6.83
Agrarian Reform 595,085 6.73
Education 448,731 5.08
State Universities and Colleges 420,989 4.76
Health 290,658 3.29
Information and Communication Technology 245,871 2.78
Sub-total 7,726,320 87.39
Other Departments/Offices 1,115,159 12.61
Total 8,841,479 100.00

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b. Due from Officers and Employees

This includes claims from officers and employees for overpayment of

salaries and other personnel benefits, operating expenses, cash shortages,
losses of assets and other bills. The following departments/offices reported
outstanding claims from their officers and employees:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 726,225 42.22
Health 192,280 11.18
State Universities and Colleges 109,304 6.35
Environment and Natural Resources 102,831 5.98
Foreign Affairs 97,722 5.68
Justice 87,252 5.07
The Judiciary 73,269 4.26
Agriculture 62,695 3.64
Finance 47,562 2.76
Education 47,418 2.76
Sub-total 1,546,558 89.90
Other Departments/Offices 173,667 10.10
Total 1,720,225 100.00

c. Due from Non-Government Organizations/People’s Organizations

Unliquidated portion of advances granted to Non-Government

Organizations (NGOs)/People’s Organizations (POs) for the
implementation of various government programs/projects were reported by
the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 19,015,783 66.14
Agriculture 2,107,480 7.33
Science and Technology 2,090,593 7.27
Social Welfare and Development 2,034,446 7.08
Education 1,212,890 4.22
Labor and Employment 642,358 2.23
Agrarian Reform 477,245 1.66
Environment and Natural Resources 451,635 1.57
Health 187,341 0.65
Trade and Industry 185,782 0.65
Sub-total 28,405,551 98.80
Other Departments/Offices 345,547 1.20
Total 28,751,099 100.00

d. Other Receivables

This represents receivables from other debtors not falling under any of the
specific receivable accounts. The following departments/offices reported
balances of this account:

101
 Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 48,953,020 42.59
The Judiciary 30,001,094 26.10
Finance 11,665,769 10.15
Commission on Audit 5,243,890 4.56
Science and Technology 4,036,167 3.51
Commission on Elections 3,805,509 3.31
Office of the Ombudsman 3,583,069 3.12
National Defense 1,165,686 1.01
Energy 959,135 0.83
Civil Service Commission 905,235 0.79
Sub-total 110,318,574 95.99
Other Departments/Offices 4,612,699 4.01
Total 114,931,273 100.00

7. INVENTORIES

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Inventory Held for Sale 3,370,157 2,394,859
Inventory Held for Distribution 77,729,893 49,035,159
Inventory Held for Manufacturing 2,864,933 2,400,396
Inventory Held for Consumption 63,629,737 44,019,309
Semi-Expendable Machinery and Equipment 5,681,585 4,206,370
Semi-Expendable Furniture, Fixtures and Books 12,168,123 11,529,616
Total 165,444,428 113,585,709

7.1. Inventory Held for Sale

a. Merchandise Inventory

This refers to the cost of goods purchased or acquired which are intended
for sale in the ordinary course of business. It includes supplies and materials,
drugs and medicines, agricultural produce, ammunitions, property and
equipment, among others. As at yearend, the balance of merchandise
inventory was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 1,414,698 41.98
Budget and Management 1,051,177 31.19
National Defense 629,504 18.68
State Universities and Colleges 262,734 7.80
Sub-total 3,358,113 99.64
Other Departments/Offices 12,044 0.36
Total 3,370,157 100.00

Merchandise Inventory of the DOH pertains to drugs and medicines,

medical, dental, laboratory and other related inventories that are held for
sale by the pharmacies of different government hospitals.

102
 Inventory reported by the DBM consists of inventories of the Procurement
Service after deducting shortages and write-down caused by damage and
obsolescence.

7.2. Inventory Held for Distribution

This group of accounts is composed of items/supplies for distribution, as

follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Food Supplies 103,757 86,716
Welfare Goods 2,311,027 1,865,041
Drugs and Medicines 21,143,522 16,564,505
Medical, Dental and Laboratory Supplies 14,366,001 3,471,438
Agricultural and Marine Supplies 14,514,744 8,389,205
Agricultural Produce 167,283 80,366
Textbooks and Instructional Materials 662,799 508,936
Construction Materials 105,776 102,294
Property and Equipment 20,912,445 14,168,392
Other Supplies and Materials 3,442,539 3,798,265
Total 77,729,893 49,035,159

Inventories held for distribution were reported by the following

departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 41,223,958 53.03
Agriculture 23,880,903 30.72
National Defense 7,280,439 9.37
Social Welfare and Development 2,289,288 2.95
Education 1,266,559 1.63
Agrarian Reform 1,066,087 1.37
Public Works and Highways 281,649 0.36
Trade and Industry 175,626 0.23
Transportation 86,552 0.11
Environment and Natural Resources 55,058 0.07
Sub-total 77,606,118 99.84
Other Departments/Offices 123,775 0.16
Total 77,729,893 100.00

Total Inventory Held for Distribution reported by the DOH is composed of

drugs and medicines, and medical, dental and laboratory supplies, welfare
goods, property and equipment, textbooks and other instructional materials for
distribution to patients, hospitals and health facilities.

7.3. Inventory Held for Manufacturing

This group of accounts is composed of the following:

103
 2019
2020
Particulars (Restated)
(in thousand pesos)
Raw Materials Inventory 1,675,699 1,395,969
Work-in-Process Inventory 409,693 323,310
Finished Goods Inventory 779,542 681,116
Total 2,864,933 2,400,396

The departments/offices which reported balances of Inventories Held for

Manufacturing are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 1,975,450 68.95
Transportation 663,124 23.15
Presidential Communications Operations Office 142,997 4.99
State Universities and Colleges 83,150 2.90
Health 213 0.01
Total 2,864,933 100.00

The Government Arsenal of the DND reported Raw Materials Inventory of

P1.13 billion, Work-in-Process Inventory of 96.21 million and Finished Goods
Inventory of P750.74 million. The Finished Goods Inventory consists of
manufactured assorted ammunitions for delivery to the different DND offices.

7.4. Inventory Held for Consumption

This refers to the costs of purchase/acquisition of inventory intended for

consumption in the regular operations of an agency. Balance of inventories held
for consumption consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Office Supplies 5,576,556 4,461,636
Accountable Forms, Plates, and Stickers 3,391,154 2,556,847
Non-Accountable Forms 179,738 170,020
Animal/Zoological Supplies 67,905 45,403
Food Supplies 482,406 447,295
Drugs and Medicines 4,797,906 2,938,201
Medical, Dental, and Laboratory Supplies 7,475,238 4,369,586
Fuel, Oil and Lubricants 3,610,343 2,351,808
Agricultural and Marine Supplies 1,955,858 1,642,216
Textbooks and Instructional Materials 1,042,869 894,267
Military, Police, and Traffic Supplies 13,526,272 8,032,638
Chemical and Filtering Supplies 64,050 32,597
Construction Materials 4,405,315 4,380,581
Agricultural Produce - 28
Aquaculture Produce - 35
Other Supplies and Materials 17,054,127 11,696,153
Total 63,629,737 44,019,309

Inventories held for consumption were reported by the following

departments/offices:

104
 Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 27,109,231 42.60
Health 11,201,013 17.60
Transportation 6,918,966 10.87
Education 3,275,164 5.15
Agriculture 2,627,332 4.13
Commission on Elections 1,939,964 3.05
Public Works and Highways 1,886,602 2.96
State Universities and Colleges 1,787,416 2.81
Interior and Local Government 1,313,697 2.06
Social Welfare and Development 1,065,809 1.68
Sub-Total 59,125,194 92.92
Other Departments/Offices 4,504,543 7.08
Total 63,629,737 100.00

The balance of the DND pertains mostly to the unused supplies reported by the
Philippine Army (PA), Philippine Air Force (PAF) and General Headquarters,
Armed Forces of the Philippines (GHQ, AFP). The unconsumed supplies of the
PA were composed mainly of military, police and traffic supplies such as
ammunitions, explosives, magazines and other firearm accessories.

7.5. Semi-Expendable Machinery and Equipment

This refers to machinery and equipment purchased/acquired with unit cost of

less than P15,000.00. It is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Machinery 169,146 98,587
Office Equipment 437,212 444,360
Information and Communications Technology Equipment 1,568,363 1,187,435
Agricultural and Forestry Equipment 10,268 8,406
Marine and Fishery Equipment 11,311 9,876
Communications Equipment 93,446 63,502
Disaster Response and Rescue Equipment 203,812 115,503
Military, Police and Security Equipment 69,512 64,437
Medical Equipment 194,321 125,749
Printing Equipment 17,196 8,233
Sports Equipment 49,718 18,604
Technical and Scientific Equipment 2,431,283 1,693,016
Construction Equipment 131 5,734
Other Equipment 425,865 362,929
Total 5,681,585 4,206,370

Semi-Expendable Machinery and Equipment which remained unissued or at

hand at yearend were reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 3,765,693 66.28
Health 306,022 5.39

105
 Amount Percent
Department/Office
(in thousand pesos) to Total
Interior and Local Government 290,789 5.12
State Universities and Colleges 217,850 3.83
Commission on Elections 123,712 2.18
Agriculture 111,365 1.96
The Judiciary 100,275 1.76
Environment and Natural Resources 96,057 1.69
Public Works and Highways 93,943 1.65
National Defense 79,415 1.40
Sub-Total 5,185,120 91.26
Other Departments/Offices 496,465 8.74
Total 5,681,585 100.00

7.6. Semi-Expendable Furniture, Fixtures and Books

This refers to furniture, fixtures and books purchased/acquired with unit cost of
less than P15,000.00. It is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Furniture and Fixtures 4,427,988 5,019,660
Books 7,740,135 6,509,956
Total 12,168,123 11,529,616

Semi-Expendable Furniture, Fixtures and Books were reported by the following

departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 11,062,821 90.92
State Universities and Colleges 331,846 2.73
Health 79,582 0.65
The Judiciary 76,397 0.63
Finance 64,303 0.53
Public Works and Highways 62,684 0.52
Interior and Local Government 54,162 0.45
Commission on Elections 51,597 0.42
National Defense 49,686 0.41
Agriculture 43,836 0.36
Sub-Total 11,876,914 97.61
Other Departments/Offices 291,209 2.39
Total 12,168,123 100.00

8. OTHER CURRENT ASSETS

This comprises advances, prepayments and deposits paid in anticipation of future

performance of services, receipt of goods, incurrence of expenditures or the receipt of
other assets. Other Current Assets is composed of the following:

106
 2019
2020
Particulars (Restated)
(in thousand pesos)
Advances 16,338,352 13,273,778
Prepayments 122,136,227 105,886,340
Deposits 44,139,679 47,521,717
Deferred Discount on Treasury Bill and Bonds 7,302,714 -
Total 189,915,971 166,681,835

8.1. Advances

This pertains to unliquidated cash advances granted to accountable officers or

employees for payment of operating expenses of operating/field units and FSPs
not maintaining complete set of books of accounts, salaries, wages, honoraria,
allowances and other personnel benefits, or expenses for official travel, local or
abroad. The advances as at yearend account is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Advances for Operating Expenses 5,594,400 4,180,866
Advances for Payroll 1,384,412 1,232,165
Advances to Special Disbursing Officers 8,390,953 6,818,904
Advances to Officers and Employees 968,586 1,041,843
Total 16,338,352 13,273,778

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 4,597,319 28.14
Social Welfare and Development 3,179,137 19.46
Labor and Employment 1,820,986 11.15
Commission on Elections 1,574,832 9.64
Interior and Local Government 834,627 5.11
Agriculture 596,409 3.65
Trade and Industry 553,422 3.39
Justice 552,241 3.38
State Universities and Colleges 527,827 3.23
Health 405,837 2.48
Sub-total 14,642,637 89.62
Other Departments/Offices 1,695,714 10.38
Total 16,338,352 100.00

The total unliquidated advances recognized by the DepEd is composed

mainly of cash advances granted to school heads to support their regular
operating requirements.

8.2. Prepayments

Prepayments represents the cash paid in advance for goods or services, as

follows:

107
 2019
2020
Particulars (Restated)
(in thousand pesos)
Advances to Contractors 115,696,016 95,129,797
Rent 531,691 523,682
Registration 2,517 3,235
Interest - 5,707,683
Insurance 1,436,042 1,641,677
Subscription 50,614 26,384
Other Prepayments 4,419,347 2,853,882
Total 122,136,227 105,886,340

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 52,121,969 42.68
Public Works and Highways 47,633,324 39.00
National Defense 8,652,332 7.08
Health 4,784,575 3.92
State Universities and Colleges 1,532,247 1.25
Budget and Management 1,293,636 1.06
Education 1,261,219 1.03
Finance 945,068 0.77
Interior and Local Government 683,848 0.56
Agriculture 657,355 0.54
Sub-total 119,565,572 97.90
Other Departments/Offices 2,570,655 2.10
Total 122,136,227 100.00

8.3. Deposits

This pertains to deposits paid by the agencies for opening letters of credit, for
containers and other similar items, for deposits made to guarantee compliance
with the terms of an agreement, among others. This is composed of the
following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Deposit on Letters of Credit 27,050,792 31,998,558
Guaranty Deposits 13,923,752 12,500,521
Other Deposits 3,165,135 3,022,638
Total 44,139,679 47,521,717

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 30,061,303 68.10
Agriculture 6,156,472 13.95
Commission on Elections 4,923,421 11.15
Transportation 600,865 1.36
Public Works and Highways 506,092 1.15

108
 Amount Percent
Department/Office
(in thousand pesos) to Total
Science and Technology 427,382 0.97
Foreign Affairs 398,844 0.90
Health 331,809 0.75
Budget and Management 309,379 0.70
State Universities and Colleges 104,620 0.24
Sub-total 43,820,188 99.28
Other Departments/Offices 319,491 0.72
Total 44,139,679 100.00

9. INVESTMENTS

The non-current portion of NG investments comprises the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Financial Assets-Held to Maturity 493,044 9,867,898
Financial Assets-Others 205,495,986 220,648,688
Investments in GOCCs 264,840,868 252,031,689
Investments in Joint Venture 50,400 22,950
Sinking Fund 698,607,566 571,551,847
Total 1,169,487,865 1,054,123,072

9.1. Financial Assets-Held to Maturity

Investments in Treasury Bonds–Local represents the entire Financial

Assets-Held to Maturity. Three departments/offices reported this account,
as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Trade and Industry 217,142 44.04
Education 141,902 28.78
National Economic Development Authority 134,000 27.18
Total 493,044 100.00

TESDA reported this account under DTI which pertains to the TESDA
Development Fund which is recorded in the Sariling Sikap Program (SSP).

Among the agencies of the DepEd, only the National Book Development
Board (NBDB) reported this account which represents the balance of
NBDB-Trust Fund that are maintained in the investment management
account with LBP.

9.2. Financial Assets-Others

This group of accounts is composed of the following:

109
 2019
2020
Particulars (Restated)
(in thousand pesos)
Investments in Stocks 160,447,530 172,904,275
Investments in Bonds 5,332,401 5,673,015
Other Investments 39,716,055 42,071,398
Total 205,495,986 220,648,688

The departments/offices which reported Financial Assets – Others are as

follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 172,929,226 84.15
Labor and Employment 17,722,336 8.62
State Universities and Colleges 13,551,556 6.59
Other Executive Offices 388,495 0.19
Agriculture 235,944 0.11
Science and Technology 229,099 0.11
Agrarian Reform 177,580 0.09
Trade and Industry 122,661 0.06
Social Welfare and Development 100,000 0.05
Office of the President 23,140 0.01
Sub-total 205,480,036 99.99
Other Departments/Offices 15,950 0.01
Total 205,495,986 100.00

Among the agencies under the DOF, the BTr and PMO reported the highest
balance of P172.52 billion or 99.76 percent and P405.68 million or 0.23
percent, respectively.

The total amount reported by the BTr is comprised of Investment in Stocks

– P159.93 billion, Investment in Bonds – P4.66 billion, and Other
Investments – P7.94 billion.

The Investment in Stocks of the BTr consists of NG subscriptions to the

capital stocks of international financial institutions, as follows:

Amount
Particulars
(in thousand pesos)
ASEAN Infrastructure Fund (AIF) 720,315
Asian Development Bank 2,479,734
ADB Credit Guarantee and Investment Facility 1,038,214
Asian Infrastructure Investment Bank 9,402,512
International Bank for Reconstruction and Development (IBRD) 3,411,317
International Development Association 1,296,088
International Finance Corporation 50,877
International Fund for Agricultural Development 115,250
International Monetary Fund 141,324,799
Multilateral Investment Guarantee Agency 84,136
Total 159,923,243

110
 9.3. Investments in GOCCs

The total Investments in GOCCs of P264.84 billion was reported solely by the
DOF–BTr, details of which are as follows:

Amount
Particulars
(in thousand pesos)
NG equity in stock GCs 132,827,975
NG equity in non-stock GCs 122,898,727
NG equity in non-stock GCs which were already defunct 9,114,166
Total 264,840,868

9.4. Investments in Joint Venture

Negros Oriental State University reported P50.40 million.

9.5. Sinking Fund

The balance of the Sinking Fund of P698.61 billion was reported entirely by the
DOF–BTr which includes NG–issued securities, details of which are as follows:

Amount
Particulars
(in thousand pesos)
Bond Sinking Funds-Securities (Bonds) 628,123,343
Bond Sinking Funds-Securities (ROP) 70,484,223
Total 698,607,566

10. RECEIVABLES

Total non-current Receivables of the NG is composed of the following:

2019
2020
(Restated)
Allowance
Particulars Gross Carrying Carrying
for
Amount Amount Amount
Impairment
(in thousand pesos)
Loans and Receivable Accounts 170,060,175 165,199 169,894,976 183,477,481
Lease Receivables 15,373,615 32,148 15,341,467 16,147,002
Total 185,433,790 197,347 185,236,443 199,624,484

10.1. Loans and Receivable Accounts

This group of accounts consists of the following:

2019
2020
(Restated)
Particulars Gross Allowance for Carrying Carrying
Amount Impairment Amount Amount
(in thousand pesos)
Notes Receivable 137,012,596 111 137,012,485 137,012,596
Loans Receivable-Government-Owned or
Controlled Corporations 32,751,784 - 32,751,784 46,332,778

111
 2019
2020
(Restated)
Particulars Gross Allowance for Carrying Carrying
Amount Impairment Amount Amount
(in thousand pesos)
Loans Receivable-Local Government
Units 11,600 - 11,600 15,424
Interests Receivable 4,260 - 4,260 4,260
Loans Receivable-Others 279,936 165,089 114,847 112,424
Total 170,060,175 165,199 169,894,976 183,477,481

The departments/offices which reported Loans and Receivable Accounts are

as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 169,780,240 99.93
Trade and Industry 93,886 0.06
State Universities and Colleges 20,850 0.01
Total 169,894,976 100.00

The Loans and Receivable Accounts of the DOF is reported mainly by BTr
which refers to a promissory note issued by the CB–BOL in favor of the
TOP in substitution for the frozen/retained deposits in the CB–BOL.
Issuance of a new promissory note in support of this balance had been
requested from the CB–BOL. Also, this pertained to loans outlays to GCs
(cash and constructive cash). Accordingly, when the GCs are unable to pay
their loans, the NG advances payment to the creditors in behalf of GCs
debiting the account Due from Government–Owned or Controlled
Corporations for the total amount paid (principal plus interest and other
charges) and crediting Loans Receivable-Government-Owned or Controlled
Corporations for the principal portion only.

10.2. Lease Receivables

This group of accounts consists of the following:

2019
2020
(Restated)
Allowance
Particulars Gross Carrying Carrying
for
Amount Impairment Amount Amount
(in thousand pesos)
Operating Lease Receivable 972,224 32,148 940,076 940,077
Finance Lease Receivable 14,401,391 - 14,401,391 15,206,926
Total 15,373,615 32,148 15,341,467 16,147,002

The balance for Operating Lease Receivable was reported by DOTr–Proper

and DOF–PMO of P910.83 million and P29.25 million, respectively.

The balance for Finance Lease Receivable is reported solely by DOF–PMO,

details are as follows:

112
 Amount
Particulars
(in thousand pesos)
G. Holdings, Inc. 241,702
Philnico Mining and Industrial Corporation 14,114,367
Social Housing Finance Corporation 45,322
Total P14,401,391

11. INVESTMENT PROPERTY

This refers to investments in land and buildings and is composed of the following:

2019
2020
(Restated)
Particulars Gross Accumulated Carrying Carrying
Amount Depreciation Amount Amount
(in thousand pesos)
Investment Property, Land 2,410,857 8,526 2,402,332 2,182,356
Investment Property, Buildings 297,697 171,655 126,042 142,798
Construction in Progress-Investment
Property, Buildings 2,101 - 2,101 61
Total 2,710,655 180,181 2,530,474 2,325,215

11.1. Investment Property, Land

The departments/offices which reported Investment Property, Land are as

follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 2,025,680 84.32
Environment and Natural Resources 187,127 7.79
State Universities and Colleges 172,080 7.16
Health 17,445 0.73
Total 2,402,332 100.00

The BTr–NG reported P2.03 billion net of receivables from the PMO, which
pertains to the value of reclaimed land transferred by the Philippine National
Construction Corporation (PNCC). The portion of the Land equivalent to
P1.52 billion was part of the Asset Privatization Trust’s (APT’s) recovery
from the PNCC account while the portion equivalent to P510.00 million was
DOF’s proportionate right which was assigned to BTr.

The balance reported by DENR–Proper refers to patrimonial properties that

were previously recorded as Other Assets.

Among the SUCs, UPS reported a balance of P166.85 million.

11.2. Investment Property, Buildings

The following departments/offices reported this account:

113
 Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 109,011 86.49
Trade and Industry 13,337 10.58
Education 3,693 2.93
Total 126,042 100.00

Among the SUCs, 12 tertiary schools led by the Catanduanes State College,
Southern Luzon State University, and Central Mindanao University
reported balances of Investment Property, Buildings.

The DTI–Philippine Trade Training Center reported P13.3 million, net of

accumulated depreciation of P128.30 million, which pertains to the acquired
building with an area of 3,032 square meter used for rental of facilities.

11.3. Construction in Progress-Investment Property, Buildings

Amount Percent
Department/Office
(in thousand pesos) to Total
Trade and Industry 930 44.28
State Universities and Colleges 817 38.88
National Defense 354 16.83
Total 2,101 100.00

Among the agencies of DTI, only TESDA reported this account.

The Aklan State University and Central Mindanao University reported

P755.94 thousand or 92.53 percent and P61 thousand or 7.47 percent,
respectively.

12. PROPERTY, PLANT AND EQUIPMENT

This is composed of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Land 412,937,592 - 797 412,936,795 407,482,300
Land Improvements 30,319,886 5,285,221 510,546 24,524,119 20,456,983
Infrastructure Assets 2,007,480,692 1,010,137,038 71 997,343,583 795,672,246
Buildings and Other Structures 447,976,141 116,158,737 48,701 331,768,704 268,054,404
Machinery and Equipment 376,500,513 170,131,335 90,532 206,278,647 180,243,733
Transportation Equipment 160,726,882 71,545,464 23,456 89,157,961 76,469,048
Furniture, Fixtures and Books 18,409,395 9,006,574 2,728 9,400,092 9,714,447
Leased Assets 3,132,119 704,080 - 2,428,039 2,462,816
Leased Assets Improvements 734,956 412,038 - 322,918 329,101
Heritage Assets 1,963,002 278,486 - 1,684,516 1,472,207
Service Concession Tangible
Assets 19,424,860 9,992,809 - 9,432,051 10,975,528
Other Property, Plant and
Equipment 9,215,189 4,688,128 70,641 4,456,419 4,394,063

114
 2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Construction in Progress 1,540,784,305 - - 1,540,784,305 1,666,803,014
Total 5,029,605,532 1,398,339,911 747,472 3,630,518,149 3,444,529,891

COA Circular No. 2020-006 dated January 31, 2020 prescribes the guidelines
on the derecognition of PPE classified as non-existing/missing.

12.1. Land

This refers to the Land account reported by following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 209,667,160 50.77
Finance 57,386,033 13.90
Social Welfare and Development 40,461,037 9.80
State Universities and Colleges 24,745,945 5.99
Health 19,356,087 4.69
Transportation 18,779,274 4.55
Education 16,017,834 3.88
Interior and Local Government 9,437,537 2.29
Foreign Affairs 3,144,934 0.76
Public Works and Highways 3,047,874 0.74
Sub-total 402,043,712 97.36
Other Departments/Offices 10,893,083 2.64
Total 412,936,795 100.00

The amount reported by DND was shared by the following: PAF – P78.91
billion or 37.64 percent; PA – P74.49 billion or 35.53 percent and GHQ-AFP –
P47.99 billion or 22.89 percent.

12.2. Land Improvements

The total Land Improvements is composed of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Land Improvements, Aquaculture
Structures 1,330,024 480,447 34 849,543 270,790
Land Improvements, Reforestation
Projects 15,414,481 - 506,163 14,908,318 11,189,712
Other Land Improvements 13,575,381 4,804,773 4,349 8,766,259 8,996,482
Total 30,319,886 5,285,221 510,546 24,524,119 20,456,983

This was reported by the following departments/offices:

115
 Amount Percent
Department/Office
(in thousand pesos) to Total
Environment and Natural Resources 15,296,370 62.37
Public Works and Highways 3,060,838 12.48
State Universities and Colleges 1,798,299 7.33
National Defense 1,092,875 4.46
Agriculture 959,371 3.91
Congress of the Philippines 626,889 2.56
Science and Technology 389,514 1.59
Health 331,708 1.35
Education 286,124 1.17
Social Welfare and Development 100,385 0.41
Sub-total 23,942,374 97.63
Other Departments/Offices 581,746 2.37
Total 24,524,119 100.00

Of P15.30 billion balance reported by DENR, the DENR –Proper reported

P14.90 billion which represents land improvements reforestation projects;
P342.98 million pertains to other land improvements, and P35.18 million
represents land improvements aquaculture structures.

12.3. Infrastructure Assets

This is composed of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Road Networks 1,558,462,748 850,726,972 28 707,735,747 594,698,649
Flood Control Systems 418,475,207 153,754,660 - 264,720,547 181,614,792
Sewer Systems 162,716 35,628 - 127,088 89,921
Water Supply Systems 3,294,646 391,276 - 2,903,370 2,023,143
Power Supply Systems 2,381,137 840,334 43 1,540,760 1,241,084
Communications Networks 1,269,065 751,309 - 517,757 388,203
Seaport Systems 2,090,120 310,380 - 1,779,740 1,009,292
Airport Systems 7,254,406 2,325,563 - 4,928,843 4,289,579
Parks, Plazas and
Monuments 1,046,667 394,966 - 651,701 674,399
Other Infrastructure
Assets 13,043,979 605,949 - 12,438,030 9,643,183
Total 2,007,480,692 1,010,137,038 71 997,343,583 795,672,246

The departments/offices that reported this group of accounts are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 972,358,833 97.49
Metropolitan Manila Development Authority 9,532,215 0.96
Transportation 4,668,272 0.47
Agriculture 3,433,254 0.34
National Defense 2,082,451 0.21
Environment and Natural Resources 1,834,094 0.18
State Universities and Colleges 1,155,607 0.12
Education 1,136,985 0.11

116
 Amount Percent
Department/Office
(in thousand pesos) to Total
Health 521,720 0.05
Information and Communication Technology 191,173 0.02
Sub-total 996,914,603 99.96
Other Departments/Offices 428,980 0.04
Total 997,343,583 100.00

Of the P972.36 billion reported balance by DPWH, P702.22 billion pertains

to Road Networks.

12.4. Buildings and Other Structures

This is composed of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Buildings 121,495,995 41,080,292 21,549 80,394,153 70,008,887
School Buildings 243,040,891 51,056,108 7,860 191,976,923 149,562,615
Hospitals and Health Centers 37,239,165 8,673,066 10,547 28,555,552 22,679,651
Markets 34,486 14,755 - 19,731 30,757
Slaughterhouses 1,493 1,322 - 171 123
Hostels and Dormitories 2,993,794 650,444 1,120 2,342,229 1,558,001
Other Structures 43,170,318 14,682,749 7,624 28,479,945 24,214,370
Total 447,976,141 116,158,737 48,701 331,768,704 268,054,404

The departments/offices which reported balances of this group of accounts

are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 154,658,093 46.62
State Universities and Colleges 50,200,304 15.13
Health 28,857,245 8.70
Public Works and Highways 23,182,183 6.99
National Defense 14,487,648 4.37
Interior and Local Government 13,166,382 3.97
Agriculture 7,741,516 2.33
Finance 6,326,034 1.91
Science and Technology 5,763,056 1.74
Environment and Natural Resources 4,748,788 1.43
Sub-total 309,131,248 93.18
Other Departments/Offices 22,637,456 6.82
Total 331,768,704 100.00

The amount reported by DepEd consists of completed school building

projects.

12.5. Machinery and Equipment

This group of accounts is composed of the following:

117
 2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Machinery 5,585,419 2,546,091 762 3,038,566 2,966,512
Office Equipment 20,627,009 12,138,348 9,397 8,479,264 8,237,469
Information and Communications
Technology Equipment 96,364,727 46,259,820 17,125 50,087,783 46,426,218
Agricultural and Forestry Equipment 3,537,853 1,247,924 2,275 2,287,654 1,367,732
Marine and Fishery Equipment 276,731 117,346 32 159,353 183,505
Airport Equipment 41,471 38,041 - 3,430 4,012
Communication Equipment 29,412,333 15,286,882 2,671 14,122,781 12,675,720
Construction and Heavy Equipment 18,849,875 7,281,529 5,756 11,562,590 8,481,335
Disaster Response and Rescue
Equipment 15,002,106 8,526,520 32 6,475,554 4,602,411
Military, Police and Security Equipment 49,969,757 18,491,769 777 31,477,211 26,332,245
Medical Equipment 54,232,054 21,294,307 8,357 32,929,390 25,903,993
Printing Equipment 654,780 360,708 - 294,072 278,731
Sports Equipment 582,428 240,717 77 341,634 304,333
Technical and Scientific Equipment 55,267,880 20,712,231 39,544 34,516,104 32,402,044
Other Machinery and Equipment 26,096,090 15,589,103 3,727 10,503,261 10,077,470
Total 376,500,513 170,131,335 90,532 206,278,647 180,243,733

Balances of these group of accounts were reported by the following

departments/ offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 35,553,087 17.24
Education 32,074,196 15.55
Health 30,862,208 14.96
Interior and Local Government 23,129,945 11.21
State Universities and Colleges 19,778,468 9.59
Public Works and Highways 15,507,820 7.52
Science and Technology 8,651,149 4.19
Agriculture 7,448,744 3.61
Finance 4,358,840 2.11
Environment and Natural Resources 3,867,201 1.87
Sub-total 181,231,658 87.86
Other Departments/Offices 25,046,988 12.14
Total 206,278,647 100.00

The top three agencies under DND which reported P33.29 billion are the
GHQ–AFP – P22.64 billion, PA – P6.86 million and PN – P3.79 million.

12.6. Transportation Equipment

This group of accounts consists of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Motor Vehicles 51,250,368 29,164,606 13,015 22,072,747 20,543,507
Aircrafts and Aircrafts Ground
Equipment 54,297,887 20,744,748 - 33,553,139 34,878,377
Watercrafts 54,668,351 21,411,679 10,123 33,246,549 20,736,318

118
 2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Other Transportation Equipment 510,275 224,432 318 285,525 310,846
Total 160,726,882 71,545,464 23,456 89,157,961 76,469,048

The balances of this accounts were reported by the following departments/

offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 52,116,212 58.45
Transportation 17,191,425 19.28
Interior and Local Government 5,951,510 6.68
Public Works and Highways 4,321,817 4.85
Agriculture 1,755,216 1.97
Environment and Natural Resources 1,270,427 1.42
State Universities and Colleges 1,239,543 1.39
Health 1,024,239 1.15
Education 604,893 0.68
Social Welfare and Development 346,646 0.39
Sub-total 85,821,929 96.26
Other Departments/Offices 3,336,032 3.74
Total 89,157,961 100.00

The balance reported under the DND was mainly reported by GHQ-AFP
amounting to P44.54 billion or 85.45 percent.

12.7. Furniture, Fixtures and Books

This group of accounts is composed of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Furniture and Fixtures 15,915,043 7,358,943 2,286 8,553,814 8,791,312
Books 2,494,352 1,647,632 442 846,278 923,134
Total 18,409,395 9,006,574 2,728 9,400,092 9,714,447

The total of this group of accounts was reported by the following

departments/ offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 3,452,984 36.73
State Universities and Colleges 1,965,844 20.91
Public Works and Highways 583,616 6.21
Science and Technology 421,058 4.48
Agriculture 398,828 4.24
Finance 360,350 3.83
The Judiciary 327,606 3.49

119
 Amount Percent
Department/Office
(in thousand pesos) to Total
Health 242,913 2.58
Trade and Industry 185,367 1.97
Environment and Natural Resources 173,741 1.85
Sub-total 8,112,306 86.30
Other Departments/Offices 1,287,786 13.70
Total 9,400,092 100.00

Of the P3.45 billion reported by DepEd, the DepEd–Proper reported P3.29

billion or 95.22 percent.

12.8. Leased Assets

Leased Assets is a group of accounts used in the books of the lessee under a
finance lease to recognize the value of an asset being leased. This group of
accounts consist of the following:

2019
2020
(Restated)
Particulars Gross Accumulated Carrying Carrying
Amount Depreciation Amount Amount
(in thousand pesos)
Leased Assets, Land 1,030,395 - 1,030,395 969,276
Leased Assets, Buildings and Other Structures 1,242,759 377,686 865,074 882,280
Leased Assets, Machinery and Equipment 834,358 315,971 518,386 598,468
Leased Assets, Transportation Equipment 18,810 6,995 11,816 10,366
Other Leased Assets 5,797 3,429 2,368 2,426
Total 3,132,119 704,080 2,428,039 2,462,816

The balances of this accounts were reported by the following departments/

offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 858,818 35.37
Foreign Affairs 752,475 30.99
Health 511,566 21.07
Transportation 206,563 8.51
Labor and Employment 76,791 3.16
Other Executive Offices 11,816 0.49
Social Welfare and Development 4,103 0.17
State Universities and Colleges 2,255 0.09
Trade and Industry 1,658 0.07
Environment and Natural Resources 1,476 0.06
Sub-total 2,427,520 99.98
Other Departments/Offices 519 0.02
Total 2,428,039 100.00

The BIR reported this entire amount for the DOF.

12.9. Leased Assets Improvements

Leased Assets Improvements refers to the cost of improvements and alterations

made on assets under operating lease which are used for government operations

120
 or for commercial and/or income generating purposes. These group of accounts
consists of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Leased Assets Improvements, Land 36,421 17,655 - 18,766 16,262
Leased Assets Improvements,
Buildings 654,454 368,713 - 285,741 297,543
Other Leased Assets Improvements 44,082 25,670 - 18,411 15,297
Total 734,956 412,038 - 322,918 329,101

The total of this group of accounts was reported by the following

departments/ offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Foreign Affairs 81,505 25.24
Other Executive Offices 49,770 15.41
Commission on Human Rights 46,187 14.30
Agriculture 31,857 9.87
Commission on Elections 26,496 8.21
Trade and Industry 16,006 4.96
National Economic Development Authority 14,420 4.47
Transportation 12,986 4.02
Environment and Natural Resources 11,154 3.45
Labor and Employment 6,111 1.89
Sub-total 296,491 91.82
Other Departments/Offices 26,428 8.18
Total 322,918 100.00

12.10. Heritage Assets

This group of PPE pertains to buildings such as museums, old churches,

cathedrals and mosques no longer used for worship, works of arts and other
archeological specimens, such as monuments and sculptures held and preserved
by the government for cultural and historical significance. This is composed of
the following:

2019
2020
(Restated)
Particulars Gross Accumulated Carrying Carrying
Amount Depreciation Amount Amount
(in thousand pesos)
Historical Buildings 771,913 13,274 758,639 606,858
Works of Arts and Archeological Specimens 546,714 9,157 537,557 531,889
Other Heritage Assets 644,375 256,054 388,320 333,460
Total 1,963,002 278,486 1,684,516 1,472,207

The departments/offices which reported balances of this accounts are as

follows:

121
 Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 694,193 41.21
Education 679,247 40.32
National Defense 162,431 9.64
State Universities and Colleges 102,232 6.07
Tourism 39,225 2.33
Finance 2,992 0.18
Commission on Audit 2,613 0.16
Congress of the Philippines 1,200 0.07
Foreign Affairs 361 0.02
Justice 10 0.00
Sub-total 1,684,504 100.00
Other Departments/Offices 12 0.00
Total 1,684,516 100.00

12.11. Service Concession-Tangible Assets

This refers to assets covered by service concession arrangements.

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Losses Amount Amount
(in thousand pesos)
Service Concession- Power
Supply Systems 3,173 1,475 - 1,697 -
Other Service Concession
Assets 19,421,688 9,991,334 - 9,430,354 10,975,528
Total 19,424,860 9,992,809 - 9,432,051 10,975,528

The amount reported by DepED of P9.43 billion pertains to the cost of other
service concession assets recognized as result of an arrangement entered by
Public-Private Partnership for School Infrastructure Projects, PSIP I and II.

12.12. Other Property, Plant and Equipment

Details of this group of accounts are as follows:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Depreciation Amount Amount
Losses
(in thousand pesos)
Work/Zoo Animals 529,918 117,940 6,464 405,515 322,067
Growing Work/Zoo and/or Other
Animals - - - - 11,501
Other Property, Plant and Equipment 8,685,271 4,570,189 64,178 4,050,904 4,060,495
Total 9,215,189 4,688,128 70,641 4,456,419 4,394,063

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 910,269 20.43
Health 734,437 16.48

122
 Amount Percent
Department/Office
(in thousand pesos) to Total
Science and Technology 406,518 9.12
Transportation 376,894 8.46
Education 272,796 6.12
National Defense 239,182 5.37
Interior and Local Government 214,188 4.81
Trade and Industry 209,866 4.71
Commission on Elections 157,262 3.53
Other Executive Offices 146,663 3.29
Sub-total 3,668,075 82.31
Other Departments/Offices 788,344 17.69
Total 4,456,419 100.00

Of the balance reported by SUCs, the top three highest are Philippine
Merchant Maritime Academy – P251.73 million or 27.65 percent, UPS –
P68.17 or 7.49 percent, and TUP – P66.17 or 7.27 percent.

12.13. Construction in Progress

Construction in Progress represents the ongoing projects undertaken by various

government agencies which include the contract cost and the related expenses.
This account will be reclassified to the appropriate asset account upon
completion of the project. This is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Construction in Progress-Land Improvements 25,016,028 26,840,312
Construction in Progress-Infrastructure Assets 1,360,667,840 1,485,591,354
Construction in Progress-Buildings and Other Structures 155,088,091 154,347,487
Construction in Progress-Leased Assets Improvements 12,345 23,861
Total 1,540,784,305 1,666,803,014

The departments/offices with balances of Construction in Progress are as

follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 1,332,655,403 86.49
Transportation 53,848,567 3.49
Education 27,273,143 1.77
Environment and Natural Resources 26,613,122 1.73
Health 24,949,580 1.62
State Universities and Colleges 22,271,220 1.45
Agriculture 19,419,380 1.26
National Defense 7,092,899 0.46
Interior and Local Government 4,689,144 0.30
Agrarian Reform 4,342,406 0.28
Sub-total 1,523,154,864 98.86
Other Departments/Offices 17,629,440 1.14
Total 1,540,784,305 100.00

123
13. BIOLOGICAL ASSETS

This group of accounts is composed of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Carrying Carrying
Impairment
Amount Losses Amount Amount
(in thousand pesos)
Bearer Biological Assets 778,201 840 777,361 660,238
Consumable Biological Assets 1,393,097 - 1,393,097 1,155,165
Total 2,171,297 840 2,170,458 1,815,403

13.1. Bearer Biological Assets

The following comprise this account:

2019
2020
(Restated)
Accumulated
Particulars Gross Carrying Carrying
Impairment
Amount Losses Amount Amount
(in thousand pesos)
Breeding Stocks 398,289 161 398,128 404,181
Livestock 219,409 - 219,409 106,972
Trees, Plants and Crops 142,650 663 141,987 130,905
Aquaculture 15,069 15 15,054 14,637
Other Bearer Biological Assets 2,784 - 2,784 3,543
Total 778,201 840 777,361 660,238

The departments/offices with balance of this account are shown below.

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 526,375 67.71
State Universities and Colleges 196,377 25.26
Agrarian Reform 38,436 4.94
Trade and Industry 6,319 0.81
Justice 4,191 0.54
Education 2,418 0.31
National Defense 1,695 0.22
Environment and Natural Resources 1,243 0.16
Social Welfare and Development 154 0.02
Health 154 0.02
Total 777,361 100.00

The DA reported balance of P526.38 million pertains to DA–Proper –

P453.34 million or 86.12 percent, Philippine Carabao Center (PCC) –
P65.09 million or 12.37 percent, and BFAR P7.94 million or 1.51 percent.

13.2. Consumable Biological Assets

This group of accounts consists of the following:

124
 2019
2020
(Restated)
Accumulated
Particulars Gross Carrying Carrying
Impairment
Amount Amount Amount
Losses
(in thousand pesos)
Livestock Held for Consumption/
Sale/Distribution 1,382,370 - 1,382,370 1,137,262
Trees, Plants and Crops Held for
Consumption/Sale/Distribution 7,654 - 7,654 15,428
Other Consumable Biological Assets 3,073 - 3,073 2,475
Total 1,393,097 - 1,393,097 1,155,165

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 1,367,182 98.14
State Universities and Colleges 25,093 1.80
Trade and Industry 374 0.03
Environment and Natural Resources 322 0.02
Education 121 0.01
Social Welfare and Development 4 0.00
Total 1,393,097 100.00

The balance reported by the DA was contributed by the DA–Proper and

PCC of P1.31 billion or 95.67 percent and P59.24 million or 4.33 percent,
respectively. The amount for the DA–Proper represents purchases/sales of
various animals and crops for dispersal to LGUs and beneficiaries of
accounts made by RFUs.

14. INTANGIBLE ASSETS

This group of accounts is composed of the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Amortization Amount Amount
Losses

(in thousand pesos)

Intangible Assets 16,928,659 6,440,093 270,466 10,218,100 9,611,294
Development in Progress 858,306 - - 858,306 567,512
Total 17,786,965 6,440,093 270,466 11,076,406 10,178,805

14.1. Intangible Assets

This group of accounts consists of the following:

125
 2019
2020
(Restated)
Accumulated
Particulars Gross Accumulated Carrying Carrying
Impairment
Amount Amortization Amount Amount
Losses
(in thousand pesos)
Patents 9,281 40 - 9,241 9,165
Computer Software 12,889,873 6,300,267 270,466 6,319,140 5,819,121
Websites 2,635 1,507 - 1,128 1,231
Copyrights 6,790 6,447 - 342 662
Other Intangible Assets 4,020,080 131,832 - 3,888,248 3,781,115
Total 16,928,659 6,440,093 270,466 10,218,100 9,611,294

The departments/offices which reported Intangible Assets, are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 3,543,536 34.68
Environment and Natural Resources 1,178,547 11.53
Education 993,599 9.72
Information and Communication Technology 804,084 7.87
Transportation 738,974 7.23
The Judiciary 661,929 6.48
Public Works and Highways 501,213 4.91
Agriculture 470,993 4.61
State Universities and Colleges 218,787 2.14
Trade and Industry 207,408 2.03
Sub-total 9,319,070 91.20
Other Departments/Offices 899,030 8.80
Total 10,218,100 100.00

Among the agencies of the DOF, the BTr-NG reported the highest amount
of P2.77 billion or 78.26 percent pertaining to the PNR Air Rights
transferred to the NG as partial payment made by
HGC/PHILGUARANTEE’s for its outstanding NG advances through
dacion en pago on April 8, 2019. This was identified as a vital component
of the NG’s NLEX-SLEX Connector Road Project covering the vertical
space of 10.5 meters above the grade level of the PNR Railway Used Area,
within the lands occupied by the PNR Right-of-Way (ROW) from the
junction of Samson Road in Caloocan City and ending at Sen. Gil Puyat
Avenue in Makati City.

DepEd–Proper reported balance pertains to copyright authorization fee of

Horizon: Music and Arts appreciation for young Filipinos from grade 10
learner’s materials and teachers guide paid to Tawid Publication.

14.2. Development in Progress

This group of accounts consists of the following:

126
 2019
2020
Particulars (Restated)
(in thousand pesos)
Development in Progress-Patents/Copyrights 125,877 125,877
Development in Progress-Computer Software 702,091 402,326
Development in Progress-Websites 1,428 285
Development in Progress-Other Intangible Assets 28,910 39,024
Total 858,306 567,512

The departments/offices which reported balances of this account are as

follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 299,186 34.86
Science and Technology 139,690 16.28
Budget and Management 100,000 11.65
Metropolitan Manila Development Authority 86,679 10.10
Environment and Natural Resources 74,851 8.72
Energy 49,099 5.72
Trade and Industry 36,987 4.31
State Universities and Colleges 21,751 2.53
Other Executive Offices 13,497 1.57
Information and Communications Technology 12,160 1.42
Sub-Total 833,900 97.16
Other Departments/Offices 24,406 2.84
Total 858,306 100.00

The balance for the DOF was recognized by the BTr which pertains to the
on-going project for the modernization of Auction and Registry Systems for
the Government Securities of the BTr. This account includes the on-going
project for the development and implementation on the New NGAS and the
enhancement and implementation of the New National Government
Collection System (NGCS) and the New National Government
Disbursement System (NGDS) of the BTr.

15. OTHER NON-CURRENT ASSETS

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Prepayments 6,084,164 5,851,510
Deposits 23,966,311 25,240,522
Other Assets 102,081,716 103,341,578
Total 132,132,190 134,433,610

15.1. Prepayments

The total Prepayments of P6.08 billion is broken down as follows:

127
 2020 2019 (Restated)
Particulars
(in thousand pesos)
Advances to Contractors 5,649,355 5,460,093
Prepaid Rent 90,281 67,566
Prepaid Registration 354 318
Prepaid Insurance 22,747 13,448
Prepaid Subscription 3,876 -
Other Prepayments 317,550 310,085
Total 6,084,164 5,851,510

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 5,236,493 86.07
Public Works and Highways 218,554 3.59
State Universities and Colleges 207,613 3.41
National Economic Development Authority 197,391 3.24
Finance 109,822 1.81
Social Welfare and Development 48,470 0.80
Environment and Natural Resources 29,625 0.49
Trade and Industry 9,031 0.15
The Judiciary 7,117 0.12
Other Executive Offices 7,111 0.12
Sub-total 6,071,227 99.79
Other Departments/Offices 12,937 0.21
Total 6,084,164 100.00

For the DND, the GHQ–AFP, PA, and PN reported P5.18 billion or 98.97
percent, P46.86 million or 0.89 percent, and P7.03 million or 0.13 percent,
respectively.

15.2. Deposits

This group of accounts includes the following:

2020 2019 (Restated)

Particulars
(in thousand pesos)
Deposit on Letters of Credit 21,409,752 20,843,719
Guaranty Deposits 2,512,801 4,352,921
Other Deposits 43,758 43,882
Total 23,966,311 25,240,522

The departments/offices which reported this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 18,161,743 75.78
Interior and Local Government 4,699,225 19.61
Transportation 753,621 3.14
Agriculture 105,823 0.44
Trade and Industry 105,133 0.44
Finance 47,617 0.20
State Universities and Colleges 27,615 0.12

128
 Amount Percent
Department/Office
(in thousand pesos) to Total
National Economic Development Authority 14,547 0.06
Social Welfare and Development 13,832 0.06
Other Executive Offices 12,712 0.05
Sub-total 23,941,869 99.90
Other Departments/Offices 24,442 0.10
Total 23,966,311 100.00

Among the agencies of the DND, the GHQ–AFP reported P18.09 billion or
99.63 percent of the account Deposit on Letters of Credit representing
deposits with AGDBs for the purchase of firearms, ammunitions, vehicular
and communication requirements of the AFP contracted with foreign
suppliers and the cost of freight forwarding.

The PNP reported the amount for DILG which represents marginal deposits
made with AGDB in favor of local/foreign suppliers through their local
representatives. These deposits are intended for procurement of various
military and police equipment.

15.3. Other Assets

This group of accounts includes the following:

2019
2020
(Restated)
Accumulated
Particulars Gross Carrying Percent
Impairment
Amount Losses Amount to Total
(in thousand pesos)
Acquired Assets 67,848,746 - 67,848,746 67,932,835
Foreclosed Property/Assets 8,468 - 8,468 8,145
Forfeited Property/Assets 252,721 - 252,721 253,799
Confiscated Property/Assets 1,612,860 1,003 1,611,857 1,585,079
Abandoned/Surrendered Property/ Assets 15,724,642 25,246 15,699,395 15,703,122
Other Assets 16,803,684 143,156 16,660,528 17,858,599
Total 102,251,121 169,405 102,081,716 103,341,578

a. Acquired Assets

Of the P67.85 billion total Acquired Assets, the DOF–BTr reported P67.74
billion or 99.87 percent, details as follows:

Amount
Particulars (in thousand
pesos)
1. Part of the transferred assets under Proclamation No. 50 wherein
disposition and sale are being handled by PMO and National Power
Corporation (NPC), which were reclassified from Other PPE
account. These assets are not restated in their realizable value since
it is the PMO and NPC which have direct knowledge of the assets.
BTr had already requested the PMO for updated listings of the
remaining assets for reconciliation with NG’s books 56,342,172
2. Part of the transferred assets from DBP, PNB and Philippine
Guarantee and Investment Corporation in the form of financial
assets 4,629,764

129
 Amount
Particulars (in thousand
pesos)
3. Real and other properties obtained and transferred by the CB-BOL
to the ROP through the BTr as partial settlement of the liability of
CB-BOL to the NG 4,337,717
4. Equity in the PNCC transferred by GFIs to NG 1,262,561
5. NG holdings in the capital stock of Philippine Air Lines pursuant
to Administrative Order No. 242 dated October 21, 1991 and
Proclamation No. 50 dated December 8, 1986 687,750
6. Real and Other Properties Acquired (ROPA) transferred by Al-
Amanah Islamic Investment Bank of the Philippines to NG in
exchange for a corresponding reduction in NG deposits 340,786
7. Value of real property known as Boracay Mansion per COA’s
appraisal as of March 14, 2008 which was ordered forfeited in favor
of the Government by the Sandiganbayan in its Decision dated
September 12, 2007 142,918
8. Nominal value of National Development Company (NDC)’s shares
of stocks in FILSYN which was transferred to the NG pursuant to
Settlement Agreement between NDC and NG/PMO dated
December 30, 2003 0
Total 67,743,668

b. Foreclosed Property/Assets

Of the total Foreclosed Property/Assets, only the BTr of DOF reported this
account amounting to P8.09 million which pertains to ROPA net of
corresponding accumulated depreciation and allowance for probable losses
in settlement of loans funded by the ARF.

c. Forfeited Property/Assets

The total Forfeited Property/Assets pertained to the following property

forfeited by the BIR as payment of tax debts:

Amount
Particulars
(in thousand pesos)
1. Land 236,174
2. Other Structures 75
3. Office Equipment 5,401
4. Other Property, Plant and Equipment 14
5. Shares of Stock/Stock Certificates 11,056
Total 252,720

d. Confiscated Property/Assets

The confiscated property/assets for which ownership has been finally

decided in favor of the government are reported by the following
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Justice 1,030,010 63.90
Environment and Natural Resources 306,028 18.99
Finance 267,569 16.60

130
 Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 7,629 0.47
Trade and Industry 399 0.02
Agriculture 131 0.01
Information and Communications Technology 91 0.01
Total 1,611,857 100.00

The balance for DOJ pertained to the jewelry collections that were
confiscated/ surrendered to PCGG. The amount used in recognizing these
assets in the books of PCGG was based on Sotheby’s appraisal in March
2003.

The DENR–Proper reported the entire amount for DENR which includes
the value of confiscated/seized forest products, conveyance tools,
compliments and equipment decided by court to be in favor of the
government.

The BOC and BTr reported the balance for this account for DOF.

e. Abandoned/Surrendered Property/Assets

This was mainly reported by the DOJ–PCGG at P15.70 billion which

pertains to assets and properties voluntarily surrendered, assigned, ceded,
and waived as ill-gotten wealth, through settlement or after judicial
determination.

f. Other Assets

The departments/offices with balances of Other Assets account are as

follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 6,236,856 37.43
Agriculture 2,457,431 14.75
State Universities and Colleges 1,374,178 8.25
Health 1,364,481 8.19
Public Works and Highways 1,254,844 7.53
Trade and Industry 919,082 5.52
Science and Technology 584,267 3.51
Justice 523,420 3.14
Education 397,607 2.39
Environment and Natural Resources 282,113 1.69
Sub-total 15,394,279 92.40
Other Departments/Offices 1,266,249 7.60
Total 16,660,528 100.00

For DOF Other Assets, the BTr reported P3.99 billion or 63.96 percent consisting
of the following:

131
 Amount
Particulars (in thousand
pesos)
1. SMPC shares owned by the NDC which were transferred to the NG
to settle NDC’s obligations pursuant to MOA among DOF, BTr,
PMO and NDC dated December 18, 2015 3,930,363
2. Other Bonds 54,994
3. Appraised value as of November 10, 2005 of diamonds in the
Treasury vault deposited by various government agencies which
were escheated in favor of the ROP per Court Order dated May 5,
1997 2,143
4. Obsolete Fixed Assets, LBP-ARF 1,391
Total 3,988,891

Of the balance of the DA, the DA–Proper reported P1.70 billion or 69.17
percent pertaining to obsolete and unserviceable assets awaiting final
disposition as well as those assets still serviceable but are no longer being
used.

The UPS reported P1.03 billion or 75.21 percent of the total SUCs which
consists of items in transit, which was reclassified under Other Assets.

16. CONTINGENT ASSET

The DOF–BTr disclosed the Contingent Assets account which includes

unclaimed bank account balances from various banks that have not yet decided
by court for escheat. The amount of unclaimed balances from various banks
based on Unclaimed Balances Report from the Law and Litigation Division, is
as follows:

Particulars Original Currency Philippine Peso

Philippine Peso PHP 3,817,944,082.74 3,817,944,082.74

U.S. Dollar USD 4,166,569.63 200,082,840.20
Japanese Yen JPY 10,238,634.37 4,768,702.10
European Euro EUR 66,842.75 3,929,184.36
U.K Pound GBP 7,615.60 499,484.98
Australian Dollar AUD 11,405.32 421,725.05
Singaporean Dollar SGD 2,864.00 104,104.27
New Zealand Dollar NZD 2,872.00 99,161.83
Chinese Yuan CNH 3,903.64 28,827.09
Total 4,027,878,112.62

The amount disclosed is subject to adjustment as the concerned BTr unit is still
in the process of updating the records pertaining to unclaimed balances.

132
17. FINANCIAL LIABILITIES

Financial Liabilities is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Payables 397,852,450 379,443,683
Bills/Bonds/Loans Payable 1,698,365,239 921,337,736
Tax Refunds Payable 1,292,184 2,453,329
Total 2,097,509,874 1,303,234,748

17.1. Payables

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Accounts Payable 194,823,029 166,541,245
Due to Officers and Employees 20,235,596 19,766,915
Internal Revenue Allotment Payable 1,067 103
Notes Payable 74,976,316 84,547,085
Interest Payable 99,894,727 98,858,293
Operating Lease Payable 1,080,576 1,073,398
Finance Lease Payable 342,407 394,952
Awards and Rewards Payable 857,934 857,756
Service Concession Arrangements Payable 5,381,626 7,397,897
Payables to Joint Ventures 259,173 6,040
Total 397,852,450 379,443,683

a. Accounts Payable

This account represents unpaid obligations arising from the normal course
of trade and business operation. The departments/offices which reported
balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 86,309,052 44.30
Public Works and Highways 30,952,388 15.89
Education 15,966,752 8.20
State Universities and Colleges 12,098,100 6.21
Health 9,488,209 4.87
Agriculture 5,589,413 2.87
Social Welfare and Development 4,706,324 2.42
Budget and Management 3,862,370 1.98
Other Executive Offices 3,151,546 1.62
Trade and Industry 3,069,891 1.58
Sub-Total 175,194,045 89.92
Other Departments/Offices 19,628,984 10.08
Total 194,823,029 100.00

The balance of the DOTr was reported substantially by the DOTr – Proper

133
 in the amount of P85.84 billion or 99.45 percent.

Of the total for the DepEd, the DepEd – Proper recognized P15.88 billion
or 99.46 percent, while for the SUCs, the UPS was the highest with P7.58
billion or 62.63 percent. For the DOH, the DOH – Proper reported a
significant amount of P9.48 billion or 99.87 percent.

b. Due to Officers and Employees

This account represents unpaid claims of officers and employees for

salaries, benefits and other emoluments including authorized
reimbursements. The departments/offices which reported balances of this
account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 6,140,484 30.34
Interior and Local Government 3,401,893 16.81
National Defense 2,374,393 11.73
Health 1,759,934 8.70
Justice 1,077,097 5.32
Social Welfare and Development 893,655 4.42
State Universities and Colleges 863,888 4.27
Finance 778,879 3.85
The Judiciary 569,831 2.82
Public Works and Highways 365,869 1.81
Sub-Total 18,225,924 90.07
Other Departments/Offices 2,009,672 9.93
Total 20,235,596 100.00

The DepEd – Proper mainly reported the amount of P6.14 billion or 99.96
percent. Of the total for DILG, the PNP reported P2.84 billion or 83.45
percent. Of the total for DND, the PA and PN reported P1.64 billion and
P599.83 million or 69.11 percent and 25.26 percent, respectively.

c. Internal Revenue Allotment Payable

The DOF – BTr reported entirely the P1.07 million representing IRA of
various LGUs that was reverted to the BTr due to closure of their accounts.
This amount shall be transferred to their new depository bank account in CY
2021.

d. Notes Payable

Only the DOF – BTr reported P74.98 billion which represents promissory
notes issued to BSP, IMF, and Multilateral Investment Guarantee Agency
(MIGA) for payment of subscription to the capital stocks of IMF and MIGA.

e. Interest Payable

The balance of this account was reported by the following departments/

offices:

134
 Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 99,840,000 99.95
State Universities and Colleges 54,727 0.05
Total 99,894,727 100.00

The balance reported by the DOF – BTr pertains to the accrued interest on
the re-issuance of T-Bonds and outstanding NG debt.

f. Operating Lease Payable

The amount of P1.08 billion reported by the DOTr – Proper represents

payable to the National Housing Authority (NHA) pertaining to the lease
contract of land rented by the MRT3 Depot located in North Avenue corner
EDSA in Quezon City.

g. Finance Lease Payable

This account represents liability arising from a finance lease contract. The
balance of this account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 206,160 60.21
Finance 89,874 26.25
Labor and Employment 35,332 10.32
Other Executive Offices 6,210 1.81
Transportation 3,366 0.98
Trade and Industry 881 0.26
Environment and Natural Resources 540 0.16
Education 44 0.01
Total 342,407 100.00

The balance of P206.16 million for DOH – Proper represents liability for
leased equipment.

For the DOF, the BIR reported the entire amount which pertains to contract
with lessors, the LBP Leasing Corporation and the Philippine Reclamation
Authority (PRA).

h. Awards and Rewards Payable

This account represents awards granted for civic or professional

achievement and rewards to informers for the receipt of reliable information
leading to successful arrest/capture of fugitives, seizure/confiscation of
smuggled goods, or collection/recovery of unpaid taxes/surcharges/fines/
penalties.

Among the departments/offices, the BOC of the DOF reported P857.76

million or 99.98 percent.

135
 i. Service Concession Arrangements Payable

This account represents liability arising from unconditional obligation of the

government to make series of payments to the operator upon recognition of
service concession assets.

Only the DepEd – Proper reported this account with a balance of P5.38
billion relative to its Public-Private Partnership for School Infrastructure
Project.

j. Payables to Joint Ventures

This account represents amounts payable to joint ventures which was

reported by the NPO under PCOO.

17.2. Bills/Bonds/Loans Payable

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Treasury Bills Payable 949,478,800 486,170,300
Bonds Payable-Domestic 507,666,313 288,709,170
Bonds Payable-Foreign 181,803,158 85,336,711
Loans Payable-Domestic 939,614 910,230
Loans Payable-Foreign 58,477,354 60,211,325
Total 1,698,365,239 921,337,736

a. Treasury Bills Payable

This account represent issuances of T-Bills to eligible dealers of government

securities, GFIs/GCs, LGUs, tax exempt institutions and other entities
through auction, over the counter or tap method. The BTr reported the total
T-Bills Payable of the NG.

b. Bonds Payable-Domestic

This pertains to flotations of peso-denominated bonds reported by the

following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 507,666,311 100.00
Agriculture 2 0.00
Total 507,666,313 100.00

The BTr reported the balance of the DOF which includes the Agrarian
Reform bonds of P10.02 billion representing the outstanding 10/25-year
bonds issued by the LBP on behalf of the NG to pay landowners for their
agricultural landholdings covered by the Agrarian Reform Program.

136
 c. Bonds Payable-Foreign

This account refers to offshore flotations of foreign currency-denominated

bonds.

The balance of P181.80 billion was reported by the BTr.

d. Loans Payable-Domestic

This account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 792,500 84.34
State Universities and Colleges 70,404 7.49
Metropolitan Manila Development Authority 70,116 7.46
Agriculture 3,538 0.38
Other Executive Offices 3,056 0.33
Total 939,614 100.00

The BTr reported the balance for the DOF which consists of NG assumed
obligation from the DBP and PNB of P442.50 million and P350.00 million,
respectively.

Among the SUCs, the Polytechnic University of the Philippines (PUP)

reported the highest amount of P33.43 million or 47.48 percent which
pertained to the loan from the Government Service Insurance System
(GSIS) for the purchase of the Condotel-Hostel in Manila.

The balance reported by the MMDA consists of loans from DBP and LBP
originally intended for the conversion of Makati Hotel into MMDA
building.

e. Loans Payable-Foreign

The balance of P58.48 billion was reported by the BTr.

17.3. Tax Refunds Payables

The departments/offices which reported balances of this account are as

follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,204,198 93.19
State Universities and Colleges 45,552 3.53
The Judiciary 19,650 1.52
Health 11,897 0.92
Office of the President 1,922 0.15
Education 1,882 0.15
Trade and Industry 1,299 0.10
Office of the Ombudsman 1,101 0.09

137
 Amount Percent
Department/Office
(in thousand pesos) to Total
Information and Communications Technology 983 0.08
Social Welfare and Development 896 0.07
Sub-Total 1,289,378 99.78
Other Departments/Offices 2,806 0.22
Total 1,292,184 100.00

Of the total for DOF, the BOC reported substantially the amount of P1.18
billion or 98.06 percent. For SUCs, the UPS reported P40.97 million which
includes over-withheld taxes due for refund to permanent and retired
employees. For The Judiciary, the SCP reported P19.65 million which
includes over-withheld taxes due for refund to Lower Courts officials and
personnel.

18. INTER-AGENCY PAYABLES

18.1. Inter-Agency Payables

This group of accounts is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Due to BIR 13,239,844 7,992,423
Due to GSIS 9,706,545 7,476,660
Due to Pag-IBIG 601,834 743,388
Due to PhilHealth 1,362,467 1,169,428
Due to GOCCs 27,783,354 32,859,166
Due to LGUs 4,400,268 7,997,867
Total 57,094,311 58,238,932

a. Due to BIR

This account represents taxes withheld from salaries of officers and

employees, and from payments to suppliers and service providers for
remittance to BIR by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 4,513,722 34.09
Public Works and Highways 2,493,172 18.83
National Defense 1,070,010 8.08
Health 839,883 6.34
Education 765,222 5.78
State Universities and Colleges 651,807 4.92
The Judiciary 458,653 3.46
Transportation 375,771 2.84
Congress of the Philippines 245,496 1.85
Interior and Local Government 192,227 1.45
Sub-Total 11,605,962 87.66
Other Departments/Offices 1,633,882 12.34

138
 Amount Percent
Department/Office
(in thousand pesos) to Total
Total 13,239,844 100.00

For the DOF, the BTr recognized P4.23 billion or 93.68 percent which
represents the withholding tax dues on the issuance of government
securities, interests on government securities, transaction fees, loan
repayments by GOCCs, unremitted taxes withheld from salaries of
personnel and from payment to suppliers.

The DPWH reported unremitted taxes withheld of P2.49 billion or 18.83

percent of the total Due to BIR.

b. Due to GSIS

This account represents the employees’ premium payments and other

payables for remittance to the GSIS by the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 8,606,265 88.66
State Universities and Colleges 253,500 2.61
Health 205,531 2.12
Finance 110,783 1.14
Justice 87,692 0.90
Interior and Local Government 62,485 0.64
Commission on Elections 45,288 0.47
Other Executive Offices 44,085 0.45
Public Works and Highways 41,864 0.43
Metropolitan Manila Development Authority 38,690 0.40
Sub-Total 9,496,184 97.83
Other Departments/Offices 210,361 2.17
Total 9,706,545 100.00

The DepEd – Proper reported the balance of P8.60 billion.

The Judiciary reported an abnormal/negative balance of P53.52 million

The balance of The Judiciary was due to negative balance of SCP offset by
the positive balances of other agencies as shown below:

Amount
Department/Office
(in thousand pesos)
Supreme Court of the Philippines (60,039)
Presidential Electoral Tribunal 3,188
Sandiganbayan 2,460
Court of Appeals 846
Court of Tax Appeal 20
Total (53,525)

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c. Due to Pag-IBIG

This account represents withheld employees’ premium payments and other

payables for remittance to the Home Development Mutual Fund by the
following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 385,681 64.08
State Universities and Colleges 35,706 5.93
Health 29,433 4.89
Justice 27,054 4.50
National Defense 21,469 3.57
Metropolitan Manila Development Authority 15,158 2.52
Public Works and Highways 14,700 2.44
Interior and Local Government 11,211 1.86
Other Executive Offices 9,258 1.54
Agriculture 8,572 1.42
Sub-Total 558,243 92.76
Other Departments/Offices 43,592 7.24
Total 601,834 100.00

The DepEd – Proper reported the balance of P385.56 million.

The Judiciary reported an abnormal/negative balance of P0.35 million. The

balance of The Judiciary was due to negative balance of SCP offset by the
positive balances of other agencies as shown below:

Amount
Department/Office
(in thousand pesos)
Supreme Court of the Philippines (957)
Presidential Electoral Tribunal 6
Sandiganbayan 492
Court of Appeals 107
Court of Tax Appeal 1
Total (352)

d. Due to PhilHealth

This account represents withheld employees’ premium payments for

remittance to PhilHealth by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 1,107,441 81.28
National Defense 53,646 3.94
Health 49,915 3.66
State Universities and Colleges 30,614 2.25
Interior and Local Government 25,886 1.90
The Judiciary 24,020 1.76
Transportation 9,266 0.68
Finance 7,984 0.59
Social Welfare and Development 6,753 0.50
Justice 6,222 0.46

140
 Amount Percent
Department/Office
(in thousand pesos) to Total
Sub-Total 1,321,748 97.01
Other Departments/Offices 40,719 2.99
Total 1,362,467 100.00

e. Due to GOCCs

The balance of this account was reported by the following

departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 19,954,471 71.82
Foreign Affairs 2,740,247 9.86
Public Works and Highways 1,798,848 6.47
Health 816,770 2.94
Transportation 653,692 2.35
Budget and Management 628,426 2.26
National Defense 512,836 1.85
State Universities and Colleges 153,877 0.55
Agriculture 85,529 0.31
Energy 76,638 0.28
Sub-Total 27,421,335 98.70
Other Departments/Offices 362,018 1.30
Total 27,783,354 100.00

Of the balance for the DOF, the BTr reported P19.94 billion, details as
follows:

Amount
Particulars
(in thousand pesos)
1. Managed funds and escrow account held by NG for BSF, Debt 1,965,795
Repayment Fund and other GCs
2. Remittances of GCs 2,516,728
3. Philippine Coconut Authority collections (122,266)
4. Balance of proceeds from the drawing of USD120 million 133,299
Performance Bond/Irrevocable Standby Letter of Credit put
up by the Maynilad Water Services, Inc. to secure its
concessions fee liabilities with Metropolitan Waterworks and
Sewerage System
5. NG payable to BSP representing IMF revaluation of the 15,294,117
Special Drawing Rights in Philippine Peso with BSP
6. Advances made by LBP for the account of LBP-ARF 147,525
Total 19,935,199

The Judiciary reported an abnormal/negative balance of P0.86 million. The

balance of The Judiciary was due to negative balance of SCP offset by the
positive balances of other agencies as shown below:

141
 Amount
Department/Office
(in thousand pesos)
Supreme Court of the Philippines (863)
Court of Appeals 7
Total (856)

f. Due to LGUs

This account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Energy 3,269,956 74.31
Commission on Elections 199,836 4.54
Public Works and Highways 137,118 3.12
Budget and Management 128,984 2.93
Agriculture 128,130 2.91
State Universities and Colleges 111,990 2.55
Education 101,869 2.32
Social Welfare and Development 85,232 1.94
Metropolitan Manila Development Authority 78,525 1.78
Health 72,651 1.65
Sub-Total 4,314,291 98.05
Other Departments/Offices 85,977 1.95
Total 4,400,268 100.00

The balance reported by the DOE represents the subsidy to various host
communities in accordance with Energy Regulation No. 1-94. Rule 29 of
the Implementing Rules and Regulations of R.A. No. 9136, otherwise
known as the Electric Power Industry Reform Act of 2001 requiring
Generating Facilities and/or energy resource development facilities that
provide financial benefits of one centavo per kilowatt-hour of their
electricity sales. These funds are maintained as trust funds to be used for the
implementation of electrification, development and livelihood and
reforestation, watershed management, health and/or environment
enhancement projects to the host communities.

19. INTRA-AGENCY PAYABLES

This group of accounts is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Due to Central Office 221,152 162,007
Due to Regional Offices 414,039 3,988
Due to Operating Units 287,114 56,138
Due to Other Funds 216,170 225,999
Total 1,138,475 448,132

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20. TRUST LIABILITIES

20.1. Trust Liabilities

This pertains to amounts held in trust for specific purposes, accounted as

follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Trust Liabilities 56,824,420 51,531,026
Trust Liabilities-Disaster Risk Reduction and
Management Fund 279,658 328,537
Bail Bonds Payable 630,868 643,206
Guaranty/Security Deposits Payable 51,759,090 61,567,096
Customers' Deposits Payable 1,043,551 1,285,642
Trust Liabilities-Disallowances/Charges 4,226 1,191
Total 110,541,813 115,356,700

a. Trust Liabilities

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 22,956,167 40.40
State Universities and Colleges 12,011,739 21.14
Education 4,856,592 8.55
Labor and Employment 4,277,584 7.53
Trade and Industry 3,766,569 6.63
Interior and Local Government 2,546,053 4.48
Health 1,046,616 1.84
Agrarian Reform 993,108 1.75
Finance 949,751 1.67
Public Works and Highways 746,363 1.31
Sub-Total 54,150,543 95.29
Other Departments/Offices 2,673,878 4.71
Total 56,824,420 100.00

Of the total balance for The Judiciary, the SCP reported P21.72 billion or
94.62 percent.

b. Trust Liabilities-Disaster Risk Reduction and Management Fund

The departments reported balances of this account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 131,600 47.06
National Defense 127,960 45.76
Agriculture 18,032 6.45
Labor and Employment 1,930 0.69
Education 105 0.04
Finance 30 0.01
Total 279,658 100.00

143
 The DSWD – Proper reported the amount of P131.60 million which pertains
to cash donations received for the recovery and rehabilitation of victims of
various disasters and calamities.

The balance of the DND which was reported by the Office of the Civil
Defense pertains to the amount received from both local and foreign sources
intended for victims of calamities.

c. Bail Bonds Payable

This pertains to liability arising from the receipt of cash bond of persons
who are in the custody of law to guarantee their appearance in court at the
appointed day and time or the compliance with the conditions of the bond.
This also includes immigration bonds required from foreign nationals
charged with crimes or violations of the Philippine laws.

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 516,475 81.87
Justice 114,392 18.13
Total 630,868 100.00

Of the amount under The Judiciary, the Sandiganbayan, Court of Appeals

and SCP reported P322.97 million or 62.53 percent, P181.39 million or
35.12 percent and P12.12 million or 2.35 percent, respectively. The balance
of the DOJ was reported by the BI.

d. Guaranty/Security Deposits Payable

This pertains to liability arising from receipt of cash or cash equivalents to

guarantee performance of the terms of the contract by the contractor which
are refundable after the fulfillment of the purpose of the bond or forfeiture
for failure to comply with the purpose of the bond.

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 34,640,504 66.93
Finance 3,605,528 6.97
Health 2,623,306 5.07
Education 2,049,258 3.96
State Universities and Colleges 1,591,933 3.08
National Defense 1,297,153 2.51
Transportation 1,155,846 2.23
Environment and Natural Resources 1,139,399 2.20
Agriculture 888,581 1.72
Interior and Local Government 479,722 0.93
Sub-Total 49,471,229 95.58
Other Departments/Offices 2,287,861 4.42
Total 51,759,090 100.00

144
 The amount reported by the DPWH represents 10 percent retention fees
from contractors’ billings, and bidders and performance bonds posted by
suppliers.

e. Customers’ Deposits Payable

The following departments/offices reported balances of this account:

Amount Percent
Department/Office (in thousand to Total
pesos)
The Judiciary 882,774 84.59
Presidential Communications Operations Office 116,511 11.16
State Universities and Colleges 22,256 2.13
Environment and Natural Resources 6,421 0.62
Justice 5,653 0.54
Health 3,362 0.32
Public Works and Highways 1,778 0.17
Agrarian Reform 1,396 0.13
Education 1,030 0.10
Agriculture 569 0.05
Sub-Total 1,041,749 99.83
Other Departments/Offices 1,802 0.17
Total 1,043,551 100.00

The balance for The Judiciary was reported by the SCP which represents
LC’s Sheriffs Trust Fund collections. It is the amount deposited by a litigant
with the clerk of court upon filing of the complaint to defray the actual travel
expenses of the sheriff, process server or other court-authorized persons in
the service of the summons, subpoena, and other court process that would
be issued relative to the trial of the case.

f. Trust Liabilities-Disallowances/Charges

The following departments/offices reported balances of this account:

Amount Percent
Department/Office (in thousand to Total
pesos)
Trade and Industry 2,085 49.34
Science and Technology 1,246 29.48
Transportation 720 17.03
State Universities and Colleges 175 4.14
Total 4,226 100.00

Of the amount under DTI, the BOI and IPO reported P1.73 million or 82.74
percent, P181.39 and P0.36 million or 17.26 percent, respectively. The
balance of the DOST was reported by the PHIVOLCS.

145
21. DEFERRED CREDITS/UNEARNED INCOME

21.1. Deferred Credits/Unearned Income

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Other Deferred Credits 5,177,724 4,810,495
Unearned Revenue-Investment Property 36 30
Other Unearned Revenue 396,859 73,630
Total 5,574,619 4,884,156

a. Other Deferred Credits

This account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,873,911 36.19
State Universities and Colleges 1,455,998 28.12
National Defense 701,223 13.54
Health 664,100 12.83
Agriculture 145,747 2.81
Education 114,782 2.22
Environment and Natural Resources 86,127 1.66
Interior and Local Government 57,366 1.11
Agrarian Reform 16,685 0.32
Other Executive Offices 14,691 0.28
Sub-Total 5,130,629 99.09
Other Departments/Offices 47,095 0.91
Total 5,177,724 100.00

Of the total DOF, the BTr reported P1.57 billion or 83.88 percent as follows:

Amount
Particulars
(in thousand pesos)
Accrued interest on 10-year and 25-year bonds payable, LBP-ARF 459,951
Interest increment on PD No. 27 and EO No. 228 claims, LBP-ARF 1,111,800
Total 1,571,751

b. Unearned Revenue-Investment Property

Among the agencies of the NG, only the University of Southeastern

Philippines under SUCs reported this account with a total of P36 thousand
which pertained to advances from lessees for rental of commercial stalls.

c. Other Unearned Revenue

This account represents other income/revenue received in advance. The

departments/offices which reported balances of this account are as follows:

146
 Amount Percent
Department/Office
(in thousand pesos) to Total
Health 137,001 34.52
Finance 116,933 29.46
State Universities and Colleges 98,989 24.94
Science and Technology 15,912 4.01
Trade and Industry 14,768 3.72
Agriculture 6,036 1.52
Other Executive Offices 5,529 1.39
Environment and Natural Resources 984 0.25
Education 261 0.07
Tourism 218 0.06
Sub-Total 396,631 99.94
Other Departments/Offices 229 0.06
Total 396,859 100.00

The amount reported by the DOH – Proper represents income already

collected but not yet earned. For the DOF, the SEC and BTr reported
P116.58 million or 99.70 percent and P0.35 million or 0.30 percent
respectively. The amount reported by the DOF – SEC consists of
registration fees collected with pending applications or unissued certificates
at year-end.

22. PROVISIONS

22.1. Provisions

This group of accounts is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Leave Benefits Payable 17,136 18,743
Retirement Gratuity Payable 10,015 11,774
Other Provisions 95,552 25,063
Total 122,703 55,580

a. Leave Benefits Payable

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 16,498 96.27
National Economic and Development Authority 352 2.06
Office of the President 286 1.67
Total 17,136 100.00

The balance of the SUCs was reported by the TUP, while for the NEDA, the
amount was reported by Office of the Director General.

147
 b. Retirement Gratuity Payable

Among the agencies of the NG, only the DepEd – Proper and DOH – Proper
reported this account of P9.87 million and P0.15 million, respectively.

c. Other Provisions

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 58,251 60.96
National Defense 37,195 38.93
Education 105 0.11
Trade and Industry 2 0.00
Total 95,552 100.00

Among the SUCs, the Tarlac College of Agriculture, Benguet State

University and Philippine Merchant Marine Academy reported this account
with an amount of P56.40 million, P1.79 million, and P58 thousand,
respectively. Under the DND, the Philippine Air Force (PAF) and Armed
Forces of the Philippines-Commissary and Exchange Services (AFP-CES)
recognized P20.00 million or 53.77 percent and P17.20 million or 46.23
percent, respectively. The PAF recognized this amount in connection with
procurement of parcels of land on account at Iloilo International Airport
while for AFP-CES represents reserve for contingency claim by civilian
employees.

23. OTHER PAYABLES

23.1. Other Payables

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 25,352,700 43.91
Education 9,049,889 15.67
Commission on Elections 5,556,686 9.62
Justice 4,172,830 7.23
Health 3,206,057 5.55
Transportation 2,326,806 4.03
Finance 2,151,675 3.73
Public Works and Highways 985,969 1.71
Foreign Affairs 713,262 1.24
Agriculture 614,061 1.06
Sub-Total 54,129,935 93.75
Other Departments/Offices 3,610,153 6.25
Total 57,740,088 100.00

148
 Of the total amount for SUCs, the UPS reported P21.63 billion or 85.33 percent,
of which P9.19 billion was recognized in the books of UP Diliman.

The DepEd – Proper reported the amount of P9.05 billion or 99.95 percent
which includes balances of trust liability accounts of operating units and
amounts payable to private lending institutions and insurance companies for
loan repayments and insurance premiums deducted from salaries of employees.

24. FINANCIAL LIABILITIES

Financial Liabilities is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Payables 614,786 709,676
Bills/Bonds/Loans Payable 8,135,348,632 6,835,251,054
Total 8,135,963,418 6,835,960,730

24.1. Payables

Payables consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Notes Payable - 25
Interest Payable 102,994 102,994
Finance Lease Payable 511,793 606,658
Total 614,786 709,676

a. Interest Payable

The Philippine Drug Enforcement Agency under OEO reported this account
which pertains to interest for the assumed obligations due to NHA for the
transferred land situated in East Triangle Quezon City where the National
Office was located by virtue of E.O. No. 227 dated July 14, 2003.

b. Finance Lease Payable

Among the agencies of the NG, the DOF, specifically the BIR reported the
amount of P486.06 million or 94.97 percent of the total which pertains to
lease payments under the finance lease contract payable by the Bureau to
the lessors, LBP Leasing Corporation and PRA. The DOLE – Proper
reported the amount of P25.74 million or 5.03 percent which represents the
lease-purchase agreement entered into with DBP Leasing Corporation per
MOA dated May 31, 2012.

24.2. Bills/Bonds/Loans Payable

This group of accounts is composed of the following:

149
 2019
2020
(Restated)
Accounts Gross Bond Issue Carrying Carrying
Premium Discount
Amount Cost Amount Amount
(in thousand pesos)
Bonds Payable-
Domestic 5,238,655,828 42,307,726 (1,933,111) (233,953) 5,278,796,490 4,370,057,975
Bonds Payable-
Foreign 1,606,535,099 1,352,444 (3,961,470) (1,155,805) 1,602,770,268 1,535,280,280
Loans Payable-
Domestic 295,394 - - - 295,394 351,680
Loans Payable-
Foreign 1,253,486,480 - - - 1,253,486,480 929,561,118
Total 8,098,972,801 43,660,170 (5,894,581) (1,389,758) 8,135,348,632 6,835,251,054

a. Bonds Payable-Domestic

The DOF – BTr reported this account which represents domestic bond
flotations with maturity period of more than one year.

b. Bonds Payable-Foreign

The DOF – BTr reported this account which pertains to offshore bond
flotations of the ROP with maturity period of more than one year.

c. Loans Payable-Domestic

Among the NGs, only SUCs reported the entire amount of domestic loans
payable. The PUP topped the SUCs with P204.07 million or 69.08 percent
of the total. This pertains to the non-current portion of the loan from the
GSIS for the purchase of the condotel-hostel located in Manila.

d. Loans Payable-Foreign

The balance of this account was reported by two departments, as follows:

Amount Percent
Department
(in thousand pesos) to Total
Finance 1,253,390,423 99.99
Foreign Affairs 96,057 0.01
Total 1,253,486,480 100.00

The balance for DOF – BTr reported the amount of P1.253 trillion. The
balance for DFA – Proper represents the Foreign Currency Deposit Unit
loan granted by PNB, London for the acquisition of property at Suffolk
Street, London on April 10, 2006 which serves as the Philippine Chancery
authorized per UK-369-OUA-2006 dated July 12, 2006. The loan is payable
in 13 years in 52 equal installments due every quarter.

150
25. TRUST LIABILITIES

25.1. Trust Liabilities

The total Trust Liabilities consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Trust Liabilities 5,276,634 4,530,598
Bail Bonds Payable 82,754 134,403
Guaranty/Security Deposits Payable 2,298,867 1,578,334
Customers' Deposits Payable 9,134 8,282
Total 7,667,389 6,251,618

a. Trust Liabilities

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 3,632,783 68.85
National Defense 554,116 10.50
Transportation 329,221 6.24
Labor and Employment 243,941 4.62
State Universities and Colleges 156,780 2.97
Other Executive Offices 136,788 2.59
Interior and Local Government 69,515 1.32
Office of the Ombudsman 57,131 1.08
Science and Technology 42,743 0.81
Public Works and Highways 28,359 0.54
Sub-Total 5,251,376 99.52
Other Departments/Offices 25,258 0.48
Total 5,276,634 100.00

The balance for DOF, which was reported by the BOC represents amount
held in trust for specific purpose.

b. Bail Bonds Payable

Among the agencies of the NG, only The Judiciary, specifically the Court
of Tax Appeals (CTA) and Presidential Electoral Tribunal (PET) reported
the amount of P46.91 million or 56.69 percent and P35.84 million or 43.31
percent, respectively. This pertains to cash bond deposits and/or received in
trust from various petitioners. These are trust receipts, which will be
returned to concerned petitioners upon written order of the Court.

c. Guaranty/Security Deposits Payable

The departments/offices with balances of this account are as follows:

151
 Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 984,188 42.81
Finance 280,286 12.19
Public Works and Highways 275,110 11.97
Justice 241,913 10.52
National Economic and Development Authority 126,523 5.50
National Defense 108,390 4.71
State Universities and Colleges 96,627 4.20
Social Welfare and Development 84,919 3.69
The Judiciary 21,169 0.92
Trade and Industry 18,222 0.79
Sub-Total 2,237,347 97.32
Other Departments/Offices 61,520 2.68
Total 2,298,867 100.00

The amount reported by the DOTr – Proper pertains to the

bidders/performance bonds collected from contractors/suppliers and 10%
retention on the contract price as warranty for the procurement of goods and
performance of services.

d. Customers’ Deposits Payable

This account representing the cash deposits from customers for

goods/services was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 3,728 40.81
State Universities and Colleges 2,551 27.92
National Defense 1,871 20.49
Social Welfare and Development 984 10.78
Total 9,134 100.00

The amount for DOF was reported by the PMO which refers to deposit on
the sale of Al Amanah Islamic Bank properties. For the SUCs, the amount
was reported by the PUP which represents advances made by
concessionaires and tenants of Hasmin Hostel.

26. DEFERRED CREDITS/UNEARNED INCOME

26.1. Deferred Credits/Unearned Income

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Deferred Service Concession Revenue 940 940
Other Deferred Credits 22,344,713 24,299,366
Other Unearned Revenue 3,986 138
Total 22,349,639 24,300,444

152
a. Deferred Service Concession Revenue

Among the agencies of the NG, only the Philippine Overseas Employment
Administration (POEA) under DOLE reported this account which pertains
to advance deposits for space rental at POEA building.

b. Other Deferred Credits

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 21,708,818 97.15
Justice 273,428 1.22
State Universities and Colleges 163,047 0.73
Agriculture 97,985 0.44
Transportation 90,088 0.40
Sub-Total 22,333,367 99.95
Other Departments/Offices 11,346 0.05
Total 22,344,713 100.00

Of the balance for the DOF, PMO reported P15.03 billion or 69.25 percent
arising from the installment sale of transferred assets. The BIR reported
P5.12 billion or 23.58 percent representing issued Tax Credit Certificates by
the various BIR issuing offices and DOF one-stop-shop to the taxpayers in
acknowledgement of approved tax credit.

The BTr also reported P1.56 billion or 7.17 percent, details of which are as
follows:

Amount
Particulars
(in thousand pesos)
1. Proceeds from ROP’s issuance of Debt Exchange Warrants
which entitles the holders during exercise period to tender
dollar/euro bonds and receives in exchange a peso
denominated treasury bonds. 1,471,585
2. Contra account in setting up the receivable from DBP and
PMO 44,612
3. Converted balance under Fund 105 which had remained
dormant for over 30 years and was already requested for
write-off 566
4. Capitalized interest and other charges, LBP-ARF 38,732
Total 1,555,496

153
 c. Other Unearned Revenue

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 3,128 78.46
National Defense 842 21.13
Trade and Industry 16 0.41
Total 3,986 100.00

Of the amount for SUCs, the Quirino State College, Visayas State
University and Isabela State University reported P3.02 million or 96.41
percent, P70 thousand or 2.25 percent and P42 thousand or 1.35 percent,
respectively.

For DND – VMMC, the amount reported pertains to unearned revenue from
Smart Communications Inc. for the advance rental of facility.

27. PROVISIONS

27.1. Provisions

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Pension Benefits Payable 1,492,383 1,215,449
Other Provisions 13,952 9
Total 1,506,335 1,215,458

a. Pension Benefits Payable

Among the NGAs, only the DND – PVAO reported the total amount of
P1.49 billion representing pension benefits payable to pensioners/
beneficiaries.

b. Other Provisions

Among the NGAs, only the Camarines Sur Polytechnic Colleges under
SUCs reported the total amount of P13.95 million.

154
28. OTHER PAYABLES

28.1. Other Payables

The following departments/offices reported balances of Other Payables:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 29,496,368 91.47
Transportation 1,647,363 5.11
Justice 721,070 2.24
State Universities and Colleges 218,518 0.68
National Defense 47,050 0.15
Sub-Total 32,130,370 99.64
Other Departments/Offices 116,995 0.36
Total 32,247,364 100.00

The DSWD – Proper reported the amount of P29.50 billion which represents
the payroll deductions for remittance to the Social Welfare Employees Multi-
Purpose Cooperative, Mutual Benefit Association, Social Welfare Employees
Association of the Philippines, Project to Supplement Personnel Economic
Resources, healthcard, and other individual creditors/suppliers which include
service providers/suppliers of Crisis Intervention Unit clients. This also includes
the set-up of unpaid cash grants for Pantawid Pamilyang Pilipino Program
beneficiaries, collections from repayment of seed capital provided to Self-
employment Assistance Revolving Settlement Fund and Tindahan Natin
Project.

29. CONTINGENT LIABILITIES

The contingent liabilities of the NG as disclosed by the DOF – BTr are as follows:

Foreign Domestic Total

Particulars Currency
(in thousand pesos)
NG Direct Guarantee on USD 4,161,011 - 4,161,011
GCs Loans PHP 199,815,928 254,286,736 454,102,664
GFI Guarantee Assumed by USD 85,566 - 85,566
NG per Proclamation 50 PHP 4,108,954 136,069 4,245,023
USD 4,246,577 - 4,246,577
Total
PHP 203,924,882 254,422,805 458,347,687

The guaranteed loans by government corporations are as follows:

Foreign Domestic Total

Particulars
(in thousand pesos)
Bases Conversion and Development Authority 18,644,039 - 18,644,039
Development Bank of the Philippines 46,219,805 36,826 46,256,632
Land Bank of the Philippines 25,669,399 - 25,669,399
Light Rail Transit Authority 2,605,663 - 2,605,663
Local Water Utilities Administration 2,036,344 - 2,036,344
Manila International Airport Authority 9,381 732,342 741,722
Metropolitan Waterworks and Sewerage System 8,168,462 - 8,168,462

155
 Foreign Domestic Total
Particulars
(in thousand pesos)
National Development Corporation - 99,243 99,243
National Food Authority - 78,920,000 78,920,000
National Home Mortgage Finance Corporation - 10,799,954 10,799,954
National Power Corporation 519,350 - 519,350
Philippine Economic Zone Authority 78,961 - 78,961
Philippine Export-Import Credit
Agency (TIDCORP) 37,900 - 37,900
Philippine National Bank 4,071,054 - 4,071,054
Philippine National Railways 1,047,611 - 1,047,611
Philippine Ports Authority 2,768,428 - 2,768,428
Power Sector Assets and Liabilities
Management Corporation 86,236,928 163,834,440 250,071,368
Small Business Guarantee and
Finance Corporation 754,420 - 754,420
Subic Bay Metropolitan Authority 4,903,734 - 4,903,734
Tourism Infrastructure and Enterprises
Zone Authority 153,406 - 153,406
Total 203,924,882 254,422,805 458,347,687

30. CHANGES IN NET ASSETS/EQUITY

The SCNAE presents the net assets/equity of the NG after considering the restated
ending balance of FY 2019, changes in equity as a result of the agencies’ operations for
FY 2020, and other adjustments, detailed as follows:

2019
2020
(Restated)
Unrealized
Accumulated Gain/(Loss) from
Particulars Net Net
Surplus/ Changes in the
Assets/Equity Assets/Equity
(Deficit) Fair Value of
Financial Assets
(in thousand pesos)
Balance at January 1 (2,271,195,034) (2,294,270,555) 23,075,521 (1,730,255,902)
Add/(Deduct):
Changes in Accounting Policy - - - 271,079
Prior Period Errors - - - (665,375,473)
Other Adjustments - - - 19,602,847
Restated Balance (2,271,195,034) (2,294,270,555) 23,075,521 (2,375,757,449)
Add/(Deduct):
Changes in Net Assets/Equity
for the Fiscal Year
Surplus/(Deficit) for the Period (667,743,442) (667,743,442) - 303,774,381
Others (294,942,411) (325,210,370) 30,267,959 (199,211,965)
Balance at December 31 (3,233,880,887) (3,287,224,367) 53,343,480 (2,271,195,034)

30.1. Balance at January 1, 2020

The beginning balance of net assets/equity is the restated ending balance as at

December 31, 2019.

156
30.2. Changes in Net Assets/Equity for the Fiscal Year

a. Surplus/(Deficit) for the Period

This is the result of the operations of the NG as reflected in the Statement

of Financial Performance.

b. Others

i. Unrealized Gain/(Loss) from Changes in the Fair Value of Financial

Assets

Below are the departments/office that reported other adjustments on this

account.

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 53,213,985 99.76
Other Executive Offices 120,054 0.22
State Universities and Colleges 5,362 0.01
Education 4,079 0.01
Total 53,343,480 100.00

The other adjustment of DOF was reported by the BTr-NG. This pertains
to changes in the fair value of financial assets of BSF, SGF, and SSF
investments in government securities which are classified as available-
for-sale financial assets and NG holdings in the capital stocks of
Philippine Airlines.

Among the agencies under the OEO, only the NCCA reported other
adjustments. This pertains to the increase in fair value of the funds
managed by the BTr for T-Bills and T-Bonds. The amounts for the SUCs
and the DepEd were reported by the Mindanao State University (MSU)
and NBDB, respectively. The balance for NBDB pertains to the net
amount of unrealized gain/loss resulting from the investments under the
National Book Development Board Trust Fund account managed by the
LBP.

ii. Transfers of assets to other agencies and other adjustments.

This pertains to the direct adjustments made to the Net Assets/Equity,

such as transfers of PPE to and from one unit of the agency to another,
to and from local government units and government corporations.

157
 The following departments/offices reported the adjustments:

Amount Percent
Department/Office
(in thousand pesos) to Total
Positive Adjustments
Finance 57,104,395 58.76
Education 25,363,028 26.10
National Defense 12,009,742 12.36
Other Departments/Offices 2,710,122 2.79
Sub-Total 97,187,286 100.00
Negative Adjustments
Public Works and Highways (323,539,311) 76.60
Other Departments/Offices (98,858,345) 23.40
Sub-Total (422,397,656) 100.00
Net Other Adjustments (325,210,370)

31. TAX REVENUE

This group of accounts is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Tax Revenue-Individual and Corporation
Income Tax 1,003,112,705 1,099,198,588
Immigration Tax 69,378 256,838
Total Tax Revenue-Individual and 1,003,182,083 1,099,455,426
Corporation
Tax Revenue-Property
Estate Tax 1,811,375 2,721,124
Donors Tax 2,358,189 3,281,736
Capital Gains Tax 20,194,833 32,084,710
Total Tax Revenue-Property 24,364,398 38,087,570
Tax Revenue-Goods and Services
Import Duties 69,794,774 83,392,154
Excise Tax 427,109,821 450,280,970
Business Tax 812,129,853 974,232,061
Tax on Forest Products 20,166 16,352
Total Tax Revenue-Goods and Services 1,309,054,614 1,507,921,536
Tax Revenue-Others
Documentary Stamp Tax 125,780,213 138,459,050
Motor Vehicles Users' Charge 16,076,185 17,813,960
Other Taxes 22,237,810 34,502,014
Total Tax Revenue-Others 164,094,208 190,775,024
Tax Revenue-Fines and Penalties
Tax Revenue-Fines and Penalties-Taxes on
Individual and Corporation 1,853,083 2,063,183
Tax Revenue-Fines and Penalties-Property Taxes 285,859 459,767
Tax Revenue-Fines and Penalties-Taxes on
Goods and Services 547,733 730,449
Tax Revenue-Fines and Penalties-Other Taxes 1,566,125 2,490,946
Total Tax Revenue-Fines and Penalties 4,252,800 5,744,346
Total Tax Revenue 2,504,948,102 2,841,983,901

158
 31.1. Tax Revenue–Individual and Corporation

The DOF-BIR reported the Income Tax, while the DOJ-Bureau of Immigration
(BI) reported the Immigration Tax.

31.2. Tax Revenue–Property

The DOF-BIR reported the property tax. Property tax is composed of Capital
Gains Tax, Donors Tax, and Estate Tax.

31.3. Tax Revenue–Goods and Services

The DOF-BIR and BOC reported collections on import duties, excise taxes, and
business taxes amounting to P774.90 billion and P534.14 billion, respectively.
DENR-Proper reported the collections on taxes on forest products.

31.4. Tax Revenue–Others

Of the total tax revenue-others of P164.09 billion, the DOF-BIR reported

P147.45 billion collections from documentary stamp tax of P125.29 billion, and
other taxes of P22.16 billion. The Department of Transportation (DOTr)
reported revenues from Motor Vehicle Users’ Charge of P16.08 billion.

31.5. Tax Revenue–Fines and Penalties

DOF-BIR reported P4.04 billion or 94.93 percent, while the balance of P215.52
million or 5.07 percent was contributed by the DOF-BOC and DOTr-Proper.

32. SERVICE AND BUSINESS INCOME

The composition of this group of accounts is as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Service Income
Permit Fees 1,511,342 2,490,860
Registration Fees 12,353,200 17,593,614
Registration Plates, Tags and Stickers Fees 691,784 917,224
Clearance and Certification Fees 3,470,493 5,503,869
Franchising Fees 84,217 154,145
Licensing Fees 3,089,264 4,910,373
Supervision and Regulation Enforcement Fees 4,303,942 4,770,225
Spectrum Usage Fees 4,970,223 4,670,187
Legal Fees 1,568,707 3,355,457
Inspection Fees 909,058 1,039,395
Verification and Authentication Fees 1,327,309 3,126,418
Passport and Visa Fees 3,288,523 8,191,092
Processing Fees 3,057,374 7,293,274
Fines and Penalties-Service Income 1,512,561 2,266,633
Other Service Income 20,020,737 22,176,771
Total Service Income 62,158,735 88,459,538

159
 2019
2020
Particulars (Restated)
(in thousand pesos)
Business Income
School Fees 13,349,793 13,762,679
Affiliation Fees 63,687 77,611
Examination Fees 432,337 1,332,472
Seminar/Training Fees 683,067 1,267,358
Rent/Lease Income 1,298,321 1,472,198
Communications Network Fees 607 7,094
Transportation System Fees 263,598 1,213,154
Road Network Fees 4,812 18,767
Waterworks System Fees 1,868 3,566
Power Supply System Fees 884 1,336
Landing and Parking Fees 387 2,310
Income from Hostels/Dormitories and Other Like
Facilities 202,163 585,642
Slaughterhouse Operation 403 725
Income from Printing and Publication 77,948 82,717
Sales Revenue 34,967,274 18,639,248
Sales Discounts (140,387) (180,327)
Cost of Sales (33,597,663) (17,520,728)
Net Sales 1,229,224 938,193
Hospital Fees 18,378,843 20,510,500
Guarantee Income 4,318,298 4,507,790
Fidelity Insurance Income 1,131,460 1,173,167
Dividend Income 113,567,438 53,463,439
Interest Income 59,100,828 71,557,901
Share in the Profit of Joint Ventures 375,083 600,824
Fines and Penalties-Business Income 326,975 646,622
Service Concession Revenue 21,211 24,740
Other Business Income 4,627,849 8,779,928
Total Business Income 219,457,083 182,030,732
Total Service and Business Income 281,615,818 270,490,269

32.1. Service Income

The departments/offices which reported significant amount of Service Income

are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Justice 12,649,609 20.35
Information and Communications Technology 7,915,067 12.73
Finance 6,912,719 11.12
Transportation 6,658,900 10.71
Public Works and Highways 5,292,860 8.52
Interior and Local Government 4,097,104 6.59
Foreign Affairs 4,072,278 6.55
Labor and Employment 2,447,144 3.94
Trade and Industry 1,710,266 2.75
The Judiciary 1,650,289 2.65
Sub-total 53,406,236 85.92
Other Departments/Offices 8,752,499 14.08
Total 62,158,735 100.00

160
 The amount reported by the DOJ was mostly contributed by the LRA and the
BI at P6.26 billion or 49.47 percent and P5.84 billion or 46.16 percent,
respectively. Under the DICT, the NTC reported P7.91 billion or 99.94 percent.

The top components of this group of accounts are the following:

a. Registration Fees represents 19.87 percent of the total service income, of

which the biggest amount was reported by the following
departments/offices: DOJ-LRA – P6.26 billion, DOF-SEC – P1.66 billion
and DOF-BIR – P1.08 billion;

b. Clearance and Certification Fees represents 5.58 percent of the total, the
biggest of which was reported by the following department/offices: DOF-
BIR – P1.09 billion, DOJ-BI – P845.51 million, DOJ-NBI – P435.16
million, DILG-PNP – P290.39 million, and DOTr-Maritime Industry
Authority (MARINA) – P211.59 million;

c. Supervision and Regulation Enforcement Fees represents 6.92 percent, of

which P1.84 billion was contributed by the DICT-NTC, followed by DOTr
amounting to P1.39 billion, and OEO-ERC of P802.11 million;

d. Spectrum Usage Fees represents 8.00 percent. The DICT-NTC solely

collected the fees; and

e. Other Service Income had the biggest share of 32.21 percent of the total
service income, which was reported substantially by the following
departments/offices: DPWH – P5.25 billion, DOJ-BI – P3.08 billion, DILG-
Bureau of Fire Protection (BFP) – P2.53 billion, DOF-BOC – P1.48 billion,
and COA – P1.47 billion.

32.2. Business Income

The departments/offices which reported this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 179,294,552 81.70
Health 17,392,060 7.93
State Universities and Colleges 16,452,310 7.50
Labor and Employment 1,724,733 0.79
Trade and Industry 890,739 0.41
Budget and Management 877,708 0.40
Environment and Natural Resources 766,860 0.35
National Defense 420,803 0.19
Education 339,156 0.15
Justice 232,539 0.11
Sub-total 218,391,460 99.51
Other Departments/Offices 1,065,623 0.49
Total 219,457,083 100.00

161
 Of the total business income of the DOF, the BTr NG reported P176.49 billion
or 98.44 percent consisting of: Dividend Income – P113.55 billion; Interest
Income – P55.84 billion; Guarantee Income – P4.32 billion; Other Business
Income – P2.46 billion; Transportation System Fees – P263.60 million;
Rent/Lease Income – P61.21 million; and Fines and Penalties-Business Income
– P0.13 million.

Other sources of business income with significant amount were Hospital Fees
and School Fees of P18.38 billion or 8.38 percent and P13.35 billion or 6.08
percent, respectively. Total collections of Hospital Fees were contributed
mostly by the DOH-Proper of P17.18 billion and SUCs-UPS (Philippine
General Hospital) of P835.54 million. Total School Fees were reported mainly
by the following SUCs: Cavite State University – P782.09 million, Batangas
State University – P594.23 million, and Cebu Technological University –
P496.22 million.

33. SHARES, GRANTS AND DONATIONS

The components of this group of accounts are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Shares 54,139,878 90,844,239
Share from National Wealth 22,968,704 32,692,546
Share from PAGCOR/PCSO 29,910,158 54,708,845
Share from Earnings of GOCCs 744,035 2,984,344
Share from Internal Revenue Collections 516,981 458,504
Donations 5,304,173 3,999,960
Donations in Cash 737,033 1,217,314
Donations in Kind 4,567,141 2,782,647
Grants 72,141 108,096
Grants in Cash 20,440 20,357
Grants in Kind 51,701 87,739
Total 59,516,193 94,952,295

33.1. Share from National Wealth

Share from National Wealth represents government’s share on royalties,

production share on service contracts and other similar income from the
exploration, development and utilization of natural resources.

Of the total Share from National Wealth, DOE reported a significant amount of
P21.20 billion, and the balance of P1.77 billion was shared by the DENR-Proper
and MGSB.

33.2. Share from PAGCOR/PCSO

This account represents share of government agencies from receipts of

PAGCOR and Philippine Charity Sweepstakes Office (PCSO), detailed as
follows:

162
 Amount Percent
Department/Office
(in thousand pesos) to Total
Office of the President 14,500,000 48.48
Finance 14,187,252 47.43
Bureau of the Treasury-NG 14,187,252 47.43
Other Executive Offices 1,134,246 3.79
Philippine Sports Commission 810,551 2.71
Philippine Drug Enforcement Agency 215,400 0.72
Dangerous Drugs Board 108,295 0.36
Interior and Local Government 87,587 0.29
Philippine National Police 87,587 0.29
Health 1,073 0.01
Total 29,910,158 100.000

33.3. Share from Earnings of GOCCs

Share from Earnings of GOCCs represents mandatory/statutory shares of

government agencies from earnings of GOCCs other than PAGCOR and PCSO.
The recipient departments/offices are as follows:
Amount Percent
Department/Office
(in thousand pesos) to Total
Finance-BTr NG 487,435 65.51
Other Executive Offices 186,947 25.13
National Commission for Culture and the Arts 186,473 25.06
Dangerous Drugs Board 474 0.06
Tourism 69,653 9.36
Total 744,035 100.000

33.4. Share from Internal Revenue Collections

Share from Internal Revenue Collections represents the share of Metropolitan

Manila Development Authority (MMDA) amounting to P516.98 million.

33.5. Donations in Cash

The recipient departments/offices are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 242,567 32.91
National Defense 205,324 27.86
State Universities and Colleges 186,469 25.30
Health 48,806 6.62
Education 13,891 1.88
Interior and Local Government 13,195 1.79
Labor and Employment 11,419 1.55
Social Welfare and Development 10,648 1.44
Other Executive Offices 1,698 0.23
Environment and Natural Resources 1,340 0.18
Sub-total 735,358 99.77
Other Departments/Offices 1,675 0.23
Total 737,033 100.00

163
 For the DOF, the BTr NG reported the highest donations in cash of P239.63
million or 98.79 percent. Under the DND, the Veterans Memorial Medical
Center (VMMC) contributed P168.34 million or 81.99 percent. For the SUCs,
the Cavite State University and Northern Negros State College of Science and
Technology reported the highest amount of P59.79 million or 32.06 percent and
P54.57 million or 29.26 percent, respectively.

33.6. Donations in Kind

The recipient departments/offices are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 1,681,452 36.82
Health 1,511,701 33.10
National Defense 376,002 8.23
State Universities and Colleges 250,506 5.48
Metropolitan Manila Development Authority 186,552 4.08
Interior and Local Government 175,054 3.83
Social Welfare and Development 98,612 2.16
Commission on Human Rights 62,520 1.37
Transportation 57,828 1.27
Science and Technology 42,880 0.94
Sub-total 4,443,107 97.28
Other Departments/Offices 124,034 2.72
Total 4,567,141 100.00

The DepEd and DOH reported the amount of P1.68 billion and P1.51 billion,
respectively. Under the DND, VMMC reported the highest amount of P168.65
million or 44.85 percent, followed by Philippine Navy of P149.88 million or
39.86 percent.

33.7. Grants in Cash

The recipient departments/offices are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 14,921 73.00
Other Executive Offices 5,293 25.89
Trade and Industry 226 1.11
Total 20,440 100.00

For the SUCs, the Sorsogon State College reported the highest amount of
P14.87 million or 99.66 percent. Under the OEO, the Film Development
Council of the Philippines reported P4.33 million or 81.91 percent. For the DTI,
the amount of P0.23 million was solely reported by TESDA.

33.8. Grants in Kind

The recipient departments/offices are as follows:

164
 Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 25,305 48.94
Trade and Industry 19,209 37.15
National Economic and Development Authority 4,114 7.96
State Universities and Colleges 2,038 3.94
Other Executive Offices 1,036 2.00
Total 51,701 100.00

The DSWD-Proper, DTI-TESDA and NEDA-PSA reported the amount of

P25.30 million, P19.21 million and P4.11 million, respectively. For the SUCs,
the Ilocos Sur Polytechnic State College reported the highest amount of P1.93
million, followed by Don Mariano Marcos Memorial State University of P0.11
million. Under the OEO, the National Commission for Culture and the Arts-
Proper and National Library of the Philippines reported P0.93 million and P0.10
million, respectively.

34. GAINS

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Gain on Sale of Investments (for BTr NG) 1,377,183 802,888
Gain on Initial Recognition of Biological Assets 14,313 14,929
Gain on Sale of Biological Assets 10,251 9,950
Gain from Changes in Fair Value Less Cost to Sell of
Biological Assets Due to Physical Change 27,692 53,390
Gain from Changes in Fair Value Less Cost to Sell of
Biological Assets Due to Price Change 887 234
Gain on Sale of Agricultural Produce 13,920 20,019
Gain on Initial Recognition of Agricultural Produce 34,087 16,898
Total 1,478,333 918,309

Of the total gains, the DOF reported the highest amount at P1.38 billion or 93.16
percent, followed by DA at P60.87 million or 4.12 percent.

35. PERSONNEL SERVICES

The details are shown below:

2019
2020
Particulars (Restated)
(in thousand pesos)
Salaries and Wages 637,920,194 589,949,577
Other Compensation 311,709,313 285,196,552
Personnel Benefit Contributions 71,355,709 61,707,881
Other Personnel Benefits 190,892,038 193,906,407
Total 1,211,877,254 1,130,760,417

165
As shown in the following table, the DepEd was the biggest spending department for
PS.

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 424,621,764 35.04
Interior and Local Government 258,701,537 21.35
National Defense 191,305,932 15.79
Health 59,849,456 4.94
State Universities and Colleges 51,349,207 4.24
Budget and Management 41,942,035 3.46
The Judiciary 33,997,977 2.81
Justice 19,837,610 1.64
Transportation 15,276,337 1.26
Public Works and Highways 13,464,215 1.11
Sub-total 1,110,346,069 91.62
Other Departments/Offices 101,531,185 8.38
Total 1,211,877,254 100.00

35.1. Salaries and Wages

Of the total salaries and wages, 96.92 percent was paid to regular civilian
employees and uniformed personnel, 3.02 percent to casual/contractual
personnel, and the remaining balance to substitute teachers as shown in the
following table:

2019
2020
Particulars (Restated)
(in thousand pesos)
Salaries and Wages – Regular 618,246,249 574,624,925
Salaries and Wages - Casual/Contractual 19,242,456 15,324,652
Salaries and Wages - Substitute Teachers 431,489 -
Total 637,920,194 589,949,577

The breakdown by departments/offices is shown below:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 296,017,056 46.40
Interior and Local Government 104,203,855 16.34
National Defense 62,348,111 9.77
Health 34,762,336 5.45
State Universities and Colleges 33,514,828 5.25
The Judiciary 13,127,183 2.06
Justice 12,728,163 2.00
Public Works and Highways 9,975,288 1.56
Transportation 8,322,576 1.31
Finance 7,197,942 1.13
Sub-total 582,197,337 91.26
Other Departments/Offices 55,722,857 8.74
Total 637,920,194 100.00

Among the agencies that reported the highest salaries and wages are: DepEd-
Proper – P295.84 billion or 99.94 percent, DILG-PNP – P84.63 billion or 81.22
percent, and the DND-PA – P39.80 billion or 63.84 percent.

166
35.2. Other Compensation

The details are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Personal Economic Relief Allowance (PERA) 41,029,974 40,081,253
Representation Allowance (RA) 2,290,151 2,238,642
Transportation Allowance (TA) 2,015,134 1,964,947
Clothing/Uniform Allowance 11,612,233 11,630,169
Subsistence Allowance 26,994,274 25,597,182
Laundry Allowance 387,190 365,350
Quarters Allowance 2,237,009 2,198,469
Productivity Incentive Allowance 548,405 1,037,401
Overseas Allowance 6,383,992 6,417,264
Honoraria 2,892,924 3,531,118
Hazard Pay 18,383,132 11,944,333
Longevity Pay 32,933,696 31,183,337
Overtime and Night Pay 1,234,078 2,167,449
Year End Bonus 63,177,766 63,419,455
Cash Gift 8,471,571 8,259,920
Mid-Year Bonus 27,617,942 7,707,844
Other Bonuses and Allowances 63,499,841 65,452,419
Total 311,709,313 285,196,552

The departments/offices which reported this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 99,014,155 31.77
Interior and Local Government 82,781,150 26.56
National Defense 50,607,880 16.24
Health 20,268,943 6.50
State Universities and Colleges 13,494,651 4.33
Foreign Affairs 5,510,343 1.77
Transportation 5,001,014 1.60
Justice 4,874,713 1.56
The Judiciary 4,520,245 1.45
Public Works and Highways 2,538,675 0.81
Sub-total 288,611,770 92.59
Other Departments/Offices 23,097,543 7.41
Total 311,709,313 100.00

The DepEd-Proper reported P98.96 billion or 99.94 percent. For the DILG, the
PNP recognized P70.49 billion or 85.15 percent and PA of the DND shared
P33.04 billion or 65.29 percent.

35.3. Personnel Benefit Contributions

The details are as follows:

167
 2019
2020
Particulars (Restated)
(in thousand pesos)
Retirement and Life Insurance Premiums 58,048,549 50,227,868
Pag-IBIG Contributions 2,380,704 2,278,941
PhilHealth Contributions 8,534,659 6,987,667
Employees Compensation Insurance Premiums 2,115,609 2,097,036
Provident/Welfare Fund Contributions 276,189 116,369
Total 71,355,710 61,707,881

The departments/offices which reported this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Budget and Management 40,738,314 57.09
Education 18,028,484 25.27
Interior and Local Government 2,249,423 3.15
Health 1,946,380 2.73
State Universities and Colleges 1,703,362 2.39
National Defense 1,486,501 2.08
The Judiciary 566,763 0.79
Finance 521,538 0.73
Social Welfare and Development 462,595 0.65
Justice 389,569 0.55
Sub-total 68,092,930 95.43
Other Departments/Offices 3,262,780 4.57
Total 71,355,710 100.00

The DBM-Proper reported P40.72 billion or 99.95 percent, DepEd-Proper –

P18.02 billion or 99.94 percent, and DILG-PNP – P1.76 billion or 78.24
percent.

35.4. Other Personnel Benefits

The details of this account are the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Pension Benefits 124,333,488 126,617,290
Retirement Gratuity 8,026,868 8,066,865
Terminal Leave Benefits 22,415,661 23,960,241
Other Personnel Benefits 36,116,021 35,262,011
Total 190,892,038 193,906,407

This group of accounts was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 76,863,440 40.27
Interior and Local Government 69,467,109 36.39
The Judiciary 15,783,786 8.27
Education 11,562,069 6.06
Health 2,871,797 1.50

168
 Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 2,636,365 1.38
Justice 1,845,164 0.97
Transportation 1,725,029 0.90
Congress of the Philippines 1,111,507 0.58
Commission on Audit 1,088,850 0.57
Sub-total 184,955,117 96.89
Other Departments/Offices 5,936,921 3.11
Total 190,892,038 100.00

The DND-GHQ reported P59.59 billion or 77.53 percent, and the DILG-PNP
with P59.10 billion or 85.08 percent.

36. MAINTENANCE AND OTHER OPERATING EXPENSES

The details of MOOE are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Traveling Expenses
Traveling Expenses (remove) 16,111,842
7,463,926 14,952,902
16,327,796
Training and Scholarship Expenses 22,876,260 31,287,194
Supplies and Materials Expenses 95,414,845 87,142,600
Utility Expenses 13,280,168 16,566,623
Communication Expenses 6,038,704 5,871,214
Awards/Rewards and Prizes 572,037 838,907
Survey, Research, Exploration and Development Expenses 920,784 1,921,512
Demolition/Relocation and Desilting/Dredging Expenses 212,549 450,365
Generation, Transmission and Distribution Expenses 12,678 10,218
Confidential and Intelligence Expenses 8,893,193 9,195,300
Extraordinary and Miscellaneous Expenses 6,826,589 4,694,119
Professional Services 31,937,679 30,394,644
General Services 26,638,750 19,287,050
Repairs and Maintenance 26,271,229 34,514,109
Assistance, Budgetary Support and Subsidies 1,476,368,579 1,019,107,613
Taxes, Insurance Premiums and Other Fees 45,602,821 33,160,217
Labor and Wages 3,329,842 4,099,265
Other Maintenance and Operating Expenses 103,431,913 92,350,896
Total 1,876,092,545 1,407,219,642

The departments/offices which reported this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,195,357,329 63.72
Social Welfare and Development 267,792,920 14.27
Education 77,505,125 4.13
Health 50,998,881 2.72
Other Executive Offices 36,860,073 1.96
National Defense 33,471,887 1.78
Labor and Employment 29,532,743 1.57
Interior and Local Government 26,452,510 1.41
Agriculture 21,533,282 1.15

169
 Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 20,923,377 1.12
Sub-total 1,760,428,127 93.83
Other Departments/Offices 115,664,418 6.17
Total 1,876,092,545 100.00

36.1. Traveling Expenses

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Traveling Expenses-Local 6,796,177 13,689,743
Traveling Expenses-Foreign 667,748 2,638,053
Total 7,463,925 16,327,796

These expenses are reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 948,636 12.71
Labor and Employment 781,909 10.48
Social Welfare and Development 708,023 9.49
National Defense 537,759 7.21
Environment and Natural Resources 488,106 6.54
Health 465,363 6.24
Congress of the Philippines 449,330 6.02
Agriculture 425,767 5.70
Interior and Local Government 334,265 4.48
National Economic and Development Authority 301,409 4.04
Sub-total 5,440,567 72.89
Other Departments/Offices 2,023,358 27.11
Total 7,463,925 100.00

The DepEd-Proper reported P945.48 million or 99.67 percent, and the DOLE-
OWWA with P730.51 million or 93.43 percent.

36.2. Training and Scholarship Expenses

The details are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Training Expenses 7,660,716 19,948,397
Scholarship Grants/Expenses 15,215,544 11,338,797
Total 22,876,260 31,287,194

The departments/offices which reported this account are the following:

170
 Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 8,219,674 35.93
Trade and Industry 5,385,235 23.54
Education 1,661,134 7.26
Science and Technology 1,202,694 5.26
Interior and Local Government 1,097,551 4.80
State Universities and Colleges 1,094,712 4.79
Agriculture 998,160 4.36
National Defense 773,820 3.38
Health 725,345 3.17
National Economic and Development Authority 570,232 2.49
Sub-total 21,728,556 94.98
Other Departments/Offices 1,147,704 5.02
Total 22,876,260 100.00

The OEO-CHED reported P8.12 billion or 98.80 percent, and the DTI-TESDA
with P4.97 billion or 92.27 percent.

36.3. Supplies and Materials Expenses

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Office Supplies Expenses 16,705,964 13,201,460
Accountable Forms Expenses 2,170,715 5,138,359
Non-Accountable Forms Expenses 25,282 61,664
Animal/Zoological Supplies Expenses 258,031 258,524
Food Supplies Expenses 9,750,347 9,680,761
Welfare Goods Expenses 1,753,117 1,147,379
Drugs and Medicines Expenses 8,652,761 8,251,481
Medical, Dental and Laboratory Supplies Expenses 13,318,917 9,935,397
Fuel, Oil and Lubricants Expenses 7,767,709 10,944,376
Agricultural and Marine Supplies Expenses 6,420,599 3,669,432
Textbooks and Instructional Materials Expenses 4,810,831 2,841,976
Military, Police and Traffic Supplies Expenses 1,239,631 1,382,547
Chemical and Filtering Supplies Expenses 106,278 140,569
Semi-Expendable Machinery and Equipment
Expenses 3,769,096 2,925,549
Semi-Expendable Furniture, Fixtures and Books
Expenses 1,388,772 2,030,263
Agricultural Produce Expenses 757 -
Other Supplies and Materials Expenses 17,276,039 15,532,865
Total 95,414,845 87,142,600

The departments/offices which reported this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 24,864,011 26.06
Health 20,448,991 21.43
Interior and Local Government 14,584,401 15.29
National Defense 9,469,648 9.93

171
 Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 7,024,079 7.36
State Universities and Colleges 3,191,552 3.35
Public Works and Highways 2,535,850 2.66
Justice 2,131,668 2.23
Social Welfare and Development 2,020,401 2.12
Transportation 1,973,858 2.07
Sub-total 88,244,459 92.49
Other Departments/Offices 7,170,386 7.51
Total 95,414,845 100.00

Among the agencies that reported significant balances are: DepEd-Proper –

P24.85 billion or 99.93 percent, DOH-Proper – P20.44 billion or 99.94 percent,
and DILG-PNP – P8.58 billion or 58.86 percent.

36.4. Utility Expenses

The details are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Water Expenses 2,664,724 3,033,737
Electricity Expenses 10,602,659 13,515,076
Gas/Heating Expenses 6,955 6,915
Other Utility Expenses 5,829 10,895
Total 13,280,167 16,566,623

The following departments/offices reported the utility expenses account:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 2,195,564 16.53
National Defense 2,094,592 15.77
Health 1,874,184 14.11
State Universities and Colleges 1,672,230 12.59
Interior and Local Government 1,349,074 10.16
Transportation 462,216 3.48
Finance 385,004 2.90
Agriculture 360,909 2.72
The Judiciary 257,702 1.94
Environment and Natural Resources 252,205 1.90
Sub-total 10,903,680 82.11
Other Departments/Offices 2,376,487 17.89
Total 13,280,167 100.00

The DepEd-Proper reported P2.15 billion or 97.94 percent. For the DND, the
PA reported the highest amount of P593.50 million or 28.33 percent, followed
by GHQ of P568.49 or 27.14 percent and PAF of 402.32 million or 19.21
percent. The DOH-Proper reported P1.87 billion or 99.91 percent.

172
36.5. Communication Expenses

The details of the account are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Postage and Courier Services 316,043 421,566
Telephone Expenses 2,799,729 2,474,828
Internet Subscription Expenses 2,737,908 2,585,120
Cable, Satellite, Telegraph and Radio Expenses 185,024 389,700
Total 6,038,704 5,871,214

This group of accounts was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 1,250,949 20.72
State Universities and Colleges 638,215 10.57
National Defense 554,530 9.18
Interior and Local Government 396,525 6.57
Science and Technology 291,770 4.83
Health 271,854 4.50
Finance 238,989 3.96
Transportation 224,471 3.72
Environment and Natural Resources 221,570 3.67
Agriculture 211,215 3.50
Sub-total 4,300,088 71.21
Other Departments/Offices 1,738,616 28.79
Total 6,038,704 100.00

The DepEd-Proper reported P1.25 billion or 99.63 percent.

36.6. Awards/Rewards and Prizes

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Awards/Rewards Expenses 358,429 647,321
Prizes 213,426 190,979
Indemnities 182 607
Total 572,037 838,907

The following departments/offices reported this account:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 178,639 31.23
Other Executive Offices 141,510 24.74
Agriculture 101,609 17.76
Science and Technology 57,055 9.97
Health 24,393 4.26

173
 Amount Percent
Department/Office
(in thousand pesos) to Total
Education 20,416 3.57
Interior and Local Government 13,106 2.29
National Defense 9,178 1.60
Trade and Industry 6,169 1.08
Social Welfare and Development 5,001 0.87
Sub-total 557,075 97.38
Other Departments/Offices 14,962 2.62
Total 572,037 100.00

Among the agencies, the SUCs-UPS reported the highest amount of P112.78
million or 63.13 percent, and the OEO-Philippine Racing Commission with
P103.83 million or 73.37 percent.

36.7. Survey, Research, Exploration and Development Expenses

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Survey Expenses 466,975 860,859
Research, Exploration and Development Expenses 453,809 1,060,653
Total 920,784 1.921,512

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 654,973 71.13
Education 71,574 7.77
Agrarian Reform 66,168 7.19
State Universities and Colleges 38,708 4.20
National Economic Development Authority 37,929 4.12
Other Executive Offices 19,100 2.07
Environment and Natural Resources 18,517 2.01
National Defense 5,200 0.57
Science and Technology 4,742 0.52
Health 1,623 0.18
Sub-total 918,534 99.76
Other Departments/Offices 2,250 0.24
Total 920,784 100.00

The DPWH-Proper reported P654.97 million.

174
36.8. Demolition/Relocation and Desilting/Dredging Expenses

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Demolition and Relocation Expenses 66,835 11,301
Desilting and Dredging Expenses 145,714 439,064
Total 212,549 450,365

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Metropolitan Manila Development Authority 145,557 68.48
Public Works and Highways 65,374 30.76
Health 901 0.42
National Defense 346 0.16
Environment and Natural Resources 157 0.07
Education 125 0.06
Agriculture 88 0.04
Total 212,549 100.00

36.9. Generation, Transmission and Distribution Expenses

Of the total P12.68 million, Mindanao State University System and Isabela State
University reported P12.53 million or 99.14 percent and P0.11 million or 0.86
percent, respectively.

36.10. Confidential and Intelligence Expenses

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Confidential Expenses 3,640,051 2,820,304
Intelligence Expenses 5,253,142 6,374,996
Total 8,893,193 9,195,300

The departments/offices which reported this account are the following:

Confidential Intelligence Percent

Department/Office Total
Expenses Expenses to Total
Office of the President 2,322,000 2,250,000 4,572,000 51.41
National Defense 35,500 1,908,408 1,943,908 21.86
Interior and Local Government 60,600 862,824 923,424 10.38
Other Executive Offices 674,361 219,400 893,761 10.05
Justice 272,429 - 272,429 3.06
Information and Communications
Technology 100,000 - 100,000 1.12
Finance 60,625 - 60,625 0.68

175
 Confidential Intelligence Percent
Department/Office Total
Expenses Expenses to Total
Foreign Affairs 30,500 - 30,500 0.34
Metropolitan Manila Development
Authority 25,000 - 25,000 0.28
Social Welfare and Development 20,000 - 20,000 0.23
Sub-total 3,601,015 5,240,632 8,841,647 99.42
Other Departments/Offices 39,036 12,510 51,546 0.58
Total 3,640,051 5,253,142 8,893,193 100.00

36.11. Extraordinary and Miscellaneous Expenses

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Congress of the Philippines 6,130,363 89.80
The Judiciary 289,434 4.24
State Universities and Colleges 49,542 0.73
Labor and Employment 39,589 0.58
Other Executive Offices 33,398 0.49
Sub-total 6,542,326 95.84
Other Departments/Offices 284,263 4.16
Total 6,826,589 100.00

36.12. Professional Services

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Legal Services 273,140 711,149
Auditing Services 59,888 133,722
Consultancy Services 5,798,767 7,059,652
Other Professional Services 25,805,884 22,490,121
Total 31,937,679 30,394,644

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 7,595,514 23.78
Social Welfare and Development 4,810,215 15.06
Agriculture 2,620,480 8.21
Environment and Natural Resources 2,554,649 8.00
State Universities and Colleges 2,394,037 7.50
Public Works and Highways 1,611,516 5.05
Trade and Industry 1,182,829 3.70
Congress of the Philippines 1,042,737 3.26
Transportation 999,043 3.13
Other Executive Offices 943,775 2.96
Sub-total 25,754,795 80.64
Other Departments/Offices 6,182,884 19.36
Total 31,937,679 100.00

176
36.13. General Services

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Environment/Sanitary Services 3,188,718 2,222,102
Janitorial Services 3,878,680 3,689,155
Security Services 6,601,627 5,924,958
Other General Services 12,969,724 7,450,835
Total 26,638,749 19,287,050

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 3,319,291 12.46
National Economic Development Authority 3,254,145 12.22
Metropolitan Manila Development Authority 3,013,159 11.31
Education 2,873,765 10.79
Interior and Local Government 2,742,476 10.30
Health 2,438,317 9.15
Transportation 1,196,894 4.49
Environment and Natural Resources 853,218 3.20
Trade and Industry 741,061 2.78
Finance 717,711 2.69
Sub-total 21,150,037 79.40
Other Departments/Offices 5,488,712 20.60
Total 26,638,749 100.00

36.14. Repairs and Maintenance

The details of this account are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Repairs and Maintenance-
Investment Property 2,479 171
Land Improvements 134,648 207,576
Infrastructure Assets 6,452,193 11,157,596
Buildings and Other Structures 7,688,987 9,117,709
Machinery and Equipment 2,767,645 2,818,320
Transportation Equipment 8,673,134 10,278,838
Furniture and Fixtures 111,283 107,778
Leased Assets 170,323 435,617
Leased Assets Improvements 40,105 18,787
Restoration and Maintenance-Heritage Assets 86,826 213,356
Semi-Expendable Machinery and Equipment 41,655 32,628
Semi-Expendable Furniture, Fixtures and Books 12,283 45,557
Others 3,263 2,185
Other Property, Plant and Equipment 86,403 77,991
Total 26,271,229 34,514,109

177
 The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 7,356,180 28.00
National Defense 6,774,899 25.79
Education 4,058,870 15.45
Transportation 3,038,251 11.57
Interior and Local Government 1,231,945 4.69
State Universities and Colleges 757,732 2.88
Agriculture 519,682 1.98
Health 453,302 1.73
Finance 435,301 1.66
Environment and Natural Resources 375,419 1.43
Sub-total 25,001,582 95.17
Other Departments/Offices 1,269,647 4.83
Total 26,271,229 100.00

The DPWH-Proper reported P7.36 billion. Under the DND, the PAF reported
the highest of P3.63 billion or 53.64 percent, followed by PN-P1.53 billion or
22.63 percent and PA-P1.25 billion or 18.40 percent. The DepEd-Proper
reported P4.06 billion or 99.92 percent.

36.15. Assistance, Budgetary Support and Subsidies

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Assistance to Local Government Units 129,183,598 57,660,313
Budgetary Support to Government-Owned or
Controlled Corporations 340,131,905 219,159,451
Assistance to Non-Government Organizations/Civil
Society Organizations 436,709 667,364
Internal Revenue Allotment 648,918,447 575,525,477
Subsidies-Others 357,697,921 166,095,008
Total 1,476,368,579 1,019,107,613

a. Assistance to Local Government Units

The Assistance to LGUs was reported mainly by the DOF-BTr NG of

P114.85 billion or 88.91 percent consisting of special shares of LGUs from
the proceeds of National Taxes – P13.53 billion, Local Government Support
Fund – P101.29 billion, and Pension and Gratuity Fund – P0.03 million.

b. Budgetary Support to Government-Owned or Controlled Corporations

This account was reported mainly by the DOF-BTr NG, which was
distributed to 45 GCs as follows:

178
 Amount Percent
Particulars
(in thousand pesos) to Total
1. National Food Authority 66,900,000 19.83
2. Philippine Health Insurance Corporation 62,397,310 18.49
3. Social Security System 45,638,400 13.53
4. National Irrigation Administration 36,740,110 10.89
5. Land Bank of the Philippines 36,488,000 10.81
6. National Electrification Administration 23,180,243 6.87
7. Light Rail Transit Authority 21,481,286 6.37
8. National Housing Authority 18,140,573 5.38
9. Philippine Deposit Insurance Corporation 3,285,293 0.97
10. Philippine Crop Insurance Corporation 3,163,826 0.94
11. National Power Corporation 1,688,891 0.50
12. Small Business Corporation 1,500,000 0.45
13. Bases Conversion and Development Authority 1,490,128 0.44
14. Philippine Coconut Authority 1,486,423 0.44
15. Philippine Heart Center 1,424,023 0.42
16. Philippine National Railways 1,186,218 0.35
17. Philippine Fisheries Development Authority 1,170,436 0.35
18. Philippine Children’s Medical Center 1,045,523 0.31
19. Subic Bay Metropolitan Authority 947,946 0.28
20. National Kidney and Transplant Institute 908,138 0.27
21. Development Academy of the Philippines 755,687 0.22
22. People's Television Network, Inc. 705,109 0.21
23. Philippine Rice Research Institute 625,556 0.19
24. International Centre for Settlement of
Investment Disputes 576,000 0.17
25. Philippine Postal Corporation 500,256 0.15
26. National Home Mortgage Finance Corporation 463,365 0.14
27. Lung Center of the Philippines 435,682 0.13
28. National Dairy Authority 431,992 0.13
29. Social Housing Finance Corporation 387,489 0.12
30. Local Water Utilities Administration 379,800 0.11
31. Cultural Center of the Philippines 357,248 0.11
32. Philippine Institute for Development Studies 290,864 0.09
33. Center for Int'l. Trade Expositions & Missions 250,631 0.07
34. Government Service Insurance System 235,012 0.07
35. Intercontinental Broadcasting Corporation 198,063 0.06
36. Philippine Institute of Traditional &
Alternative Health Care 146,290 0.04
37. Southern Philippines Development Authority 129,294 0.04
38. Credit Information Corporation 66,194 0.02
39. Tourism Infrastructure and Enterprise
Zone Authority 61,750 0.02
40. Aurora Pacific Economic Zone and
Freeport Authority 45,067 0.01
41. Zamboanga City Special Economic
Zone Authority 41,168 0.01
42. Cagayan Economic Zone Authority 31,472 0.01
43. Philippine Center for Economic Development 30,791 0.01
44. Philippine Tax Academy 17,964 0.01
45. Philippine Ports Authority 2,931 0.00
Total 337,428,440 100.00

c. Assistance to NGOs/CSOs

Of the total, the top five departments which reported the highest assistance
to NGOs/CSOs are: DOH - P91.63 million or 20.98 percent; DOLE –

179
 P73.34 million or 16.79 percent, OEO – P65.81 million or 15.07 percent;
DENR – P49.26 million or 11.28 percent; and DAR – P40.51 million or 9.28
percent.

d. Internal Revenue Allotment

This represents the annual share of LGUs from national internal revenue
taxes. For FY 2020, the DOF-BTr NG reported a total of P648.92 billion
IRA for LGUs.

e. Subsidies-Others

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 254,864,957 71.25
Finance 40,776,736 11.40
Education 32,475,789 9.08
Labor and Employment 19,018,022 5.32
National Defense 2,801,455 0.78
Health 2,237,517 0.63
Interior and Local Government 2,031,558 0.57
Agriculture 1,003,805 0.28
Foreign Affairs 860,775 0.24
Agrarian Reform 416,527 0.12
Sub-total 356,487,140 99.66
Other Departments/Offices 1,210,781 0.34
Total 357,697,921 100.00

The DSWD-Proper reported P254.86 billion, P73.40 billion of which are

cash grants for Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries.

36.16. Taxes, Insurance Premiums and Other Fees

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Taxes, Duties and Licenses 42,980,886 29,230,108
Fidelity Bond Premiums 434,522 425,083
Insurance Expenses 2,187,413 3,505,026
Total 45,602,821 33,160,217

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 36,881,693 80.88
National Defense 4,227,199 9.27
Transportation 2,283,012 5.01
Health 523,754 1.15

180
 Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 277,354 0.61
Public Works and Highways 221,168 0.49
Education 206,125 0.45
Interior and Local Government 187,544 0.41
Social Welfare and Development 129,632 0.28
Environment and Natural Resources 97,576 0.21
Sub-total 45,035,057 98.75
Other Departments/Offices 567,764 1.25
Total 45,602,821 100.00

36.17. Labor and Wages

Of the total labor and wages of P3.33 billion, the top five departments which
reported the highest amount are: DPWH – P1.08 billion or 32.45 percent; DA –
P896.97 million or 26.94 percent; SUCs – P467.71 million or 14.05 percent;
DSWD – P231.93 million or 6.97 percent; and DepEd – P222.29 million or 6.68
percent.

36.18. Other Maintenance and Operating Expenses

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Advertising, Promotional and Marketing Expenses 1,546,704 3,217,981
Printing and Publication Expenses 4,307,649 2,311,535
Representation Expenses 4,670,013 6,456,068
Transportation and Delivery Expenses 1,163,943 1,460,287
Rent/Lease Expenses 14,084,013 15,231,240
Membership Dues and Contributions to
Organizations 2,158,796 1,948,251
Subscription Expenses 2,318,463 1,938,541
Donations 43,782,859 36,451,254
Litigation/Acquired Assets Expenses 45,526 353,897
Loss on Guaranty 1,136,668 1,276,597
Legal Defense Expense - 7,409
Bank Transaction Fee 481,807 371,854
Other Maintenance and Operating Expenses 27,735,471 21,325,982
Total 103,431,913 92,350,896

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 23,448,845 22.67
Finance 13,471,041 13.02
Office of the President 9,970,908 9.64
Transportation 7,848,442 7.59
Labor and Employment 7,296,279 7.05
Agriculture 5,935,809 5.74
Education 5,917,319 5.72

181
 Amount Percent
Department/Office
(in thousand pesos) to Total
Congress of the Philippines 5,842,103 5.65
Health 4,750,818 4.59
National Defense 3,200,397 3.09
Sub-total 87,681,960 84.77
Other Departments/Offices 15,749,953 15.23
Total 103,431,913 100.00

The OEO-CHED reported P19.30 billion or 82.33 percent, while for DOF-
MDFO reported P10.09 billion or 74.94 percent and the OP-Proper reported
P9.97 billion.

37. FINANCIAL EXPENSES

Total financial expenses represented 11.13 percent of the total current operating
expenses. The details are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Management Supervision/Trusteeship Fees - 37
Interest Expenses 400,762,415 390,292,320
Bank Charges-Loans/Borrowings 8,710 541,760
Commitment Fees 335,717 240,909
Other Financial Charges 947,192 439,827
Total 402,054,033 391,514,853

The DOF-BTr NG reported P401.86 billion or 99.98 percent.

38. NON-CASH EXPENSES

The details of this account are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Depreciation 117,355,389 104,266,310
Amortization 1,430,658 1,186,794
Impairment Loss 1,969,755 721,008
Losses 147,873 94,790
Total 120,903,675 106,268,902

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 70,639,996 58.43
National Defense 10,012,437 8.28
Education 9,654,137 7.98
Health 5,619,891 4.65

182
 Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 5,076,712 4.20
Interior and Local Government 4,137,348 3.42
Transportation 2,508,296 2.07
Metropolitan Manila Development Authority 1,957,551 1.62
Agriculture 1,837,566 1.52
Environment and Natural Resources 1,522,263 1.26
Sub-total 112,966,198 93.43
Other Departments/Offices 7,937,477 6.57
Total 120,903,675 100.00

The DPWH-Proper reported P70.64 billion, and for DND, GHQ-AFP with P6.39
billion or 63.83 percent.

38.1. Depreciation

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Depreciation-
Investment Property 7,400 5,450
Land Improvements 445,564 852,002
Infrastructure Assets 68,921,798 62,197,018
Buildings and Other Structures 11,585,288 9,975,678
Machinery and Equipment 23,639,257 19,739,611
Transportation Equipment 9,697,285 8,472,593
Furniture, Fixtures and Books 871,973 857,924
Leased Assets 124,746 118,703
Leased Assets Improvements 47,848 47,134
Heritage Assets 8,821 1,613
Service Concession Assets 1,545,485 1,545,283
Bearer Biological Assets - 8,103
Other Property, Plant and Equipment 459,923 445,199
Total 117,355,389 104,266,310

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 70,457,888 60.04
National Defense 9,923,708 8.46
Education 9,045,396 7.71
Health 5,433,124 4.63
State Universities and Colleges 4,944,244 4.21
Interior and Local Government 4,111,530 3.50
Transportation 2,323,496 1.98
Agriculture 1,716,559 1.46
Science and Technology 1,442,816 1.23
Environment and Natural Resources 1,303,203 1.11
Sub-total 110,701,963 94.33
Other Departments/Offices 6,653,426 5.67
Total 117,355,389 100.00

183
 Among the agencies, DPWH-Proper reported the highest amount of P70.46
billion followed by DND-GHQ – P6.36 billion or 64.13 percent, and DepEd-
Proper – P8.95 billion or 98.90 percent.

38.2. Amortization

Of the total amortization of P1.43 billion, the top five departments which
reported the highest amount are: DepEd – P602.85 million or 42.14 percent;
DOTr – P163.91 million or 11.46 percent; DPWH – P126.38 million or 8.83
percent; The Judiciary – P119.63 million or 8.36 percent; and DOF – P87.95
million or 6.15 percent.

38.3. Impairment Loss

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Impairment Loss-
Loans and Receivables 398,349 250,875
Lease Receivables 3,504 3,666
Investments in Joint Venture - 15,406
Other Receivables 1,069,178 206,455
Inventories 8,190 27,583
Investment Property 15 50,026
Property, Plant and Equipment 444,742 122,242
Biological Assets 582 5,210
Intangible Assets 995 4,608
Other Assets 44,199 34,937
Total 1,969,755 721,008

The departments/offices which reported this account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Metropolitan Manila Development Authority 952,218 48.34
Trade and Industry 191,537 9.72
Environment and Natural Resources 186,229 9.45
Health 169,749 8.62
State Universities and Colleges 102,869 5.22
National Defense 72,587 3.69
Agriculture 62,962 3.20
Public Works and Highways 55,729 2.83
Energy 49,055 2.49
Finance 46,168 2.34
Sub-total 1,889,103 95.91
Other Departments/Offices 80,652 4.09
Total 1,969,755 100.00

38.4. Losses

This group of accounts consists of the following:

184
 2019
2020
Particulars (Restated)
(in thousand pesos)
Loss on Sale of Investments (for BTr NG) 119,191 27,867
Loss on Sale of Biological Assets 1,993 8,139
Loss on Sale of Agricultural Produce 924 21
Loss on Initial Recognition of Biological Assets 16 -
Loss from Changes in Fair Value Less Costs to
Sell of Biological Assets Due to Physical
Change 25,251 58,697
Loss from Changes in Fair Value Less Costs to
Sell of Biological Assets Due to Price Change 499 66
Total 147,873 94,790

Of the total losses, DOF reported P119.19 million or 80.60 percent.

39. NET ASSISTANCE/SUBSIDY

The balance of P6.33 billion in net assistance/subsidy is the total between the net
assistance/subsidy to NGAs of P1.26 billion and assistance/subsidy from LGUs and
GOCCs of P7.59 billion. The details are as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Assistance/Subsidy from NGAs
Subsidy from National Government - 50,557,692
Subsidy from Other Funds 85,712 578,595
Subsidy from Central Office 18,444,442 736,867
Subsidy from Regional Office/Staff Bureaus 771,342 1,104,948
Total Assistance/Subsidy from NGAs 19,301,497 52,978,102
Less: Assistance/Subsidy to NGAs
Subsidy to NGAs 15,244,696 -
Subsidy to Regional Offices/Staff Bureaus 3,434,755 2,852,864
Subsidy to Operating Units 1,508,584 2,328,801
Subsidy to Other Funds 376,615 209,081
Total Assistance/Subsidy to NGAs 20,564,651 5,390,746
Net Assistance/Subsidy from/(to) NGAs (1,263,154) 47,587,356
Assistance/Subsidy from LGUs and GOCCs
Assistance from Local Government Units 4,244,501 3,680,359
Assistance from Government-Owned or Controlled
Corporations 3,347,955 57,943
Total Assistance/Subsidy from LGUs and GOCCs 7,592,457 3,738,303
Net Assistance/Subsidy 6,329,303 51,325,658
Subsidy to NGAs represents replenishments made by BTr to AGDBs for negotiated
MDS checks and other payments on accounts of NGAs. This includes the
replenishments of MDS checks issued in FY 2019 but presented for encashment only
in FY 2020.

Of the total Assistance from LGUs, MMDA reported P3.94 billion or 92.87 percent.
The account represents the five percent share of the MMDA from the annual gross
revenue of the LGUs, net of the IRA pursuant to R.A. No. 7921, which was withheld

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 by the DBM from the LGUs’ IRA pursuant to Section 10 of R.A. No. 7924.

Of the total Assistance from GOCCs, DOF reported P3.26 billion or 97.40 percent.

40. OTHER NON-OPERATING INCOME

This group of accounts consists of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Sale of Assets
Sale of Garnished/Confiscated/Abandoned/Seized Goods
and Property 583,720 353,858
Reversal of Impairments
Reversal of Impairments 6,388 8,348
Gains 128,415,336 97,944,038
Gain on Foreign Exchange (FOREX) 127,735,272 96,331,712
Gain on Sale of Investment Property 0 -
Gain on Sale of Property, Plant and Equipment 5,440 512,032
Gain on Sale of Unserviceable Property 17,262 19,337
Other Gains 657,361 1,080,958
Miscellaneous Income 2,604,767 2,647,606
Proceeds from Insurance/Indemnities 59,440 92,005
Miscellaneous Income 2,545,327 2,555,602
Total 131,610,211 100,953,850

40.1. Sale of Assets

The DOF-BOC reported P583.19 million or 99.91 percent of the total sale of
garnished/confiscated/abandoned/seized goods and property.

40.2. Reversal of Impairments

Of the total reversal, the DOST reported P2.52 million or 39.46 percent
followed by SUCs of P2.23 million or 34.86 percent and DOH of P1.61 million
or 25.23 percent.

40.3. Gains

Of the total gains, the DOF reported substantial amount of P127.76 billion or
99.49 percent comprised of the following: Gain on Foreign Exchange (FOREX)
– P127.24 billion; Gain on Sale of Property, Plant and Equipment – P0.25
million; Gain on Sale of Unserviceable Property – P0.06 million; and Other
Gains – P518.93 million.

41. LOSSES

The details of non-operating losses are as follows:

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 2019
2020
Particulars (Restated)
(in thousand pesos)
Loss on Foreign Exchange (FOREX) 41,561,325 19,064,524
Loss on Sale of Property, Plant and Equipment 73,974 73,419
Loss on Sale of Assets 10,767 57,058
Loss of Assets 163,269 100,857
Loss on Sale of Unserviceable Property 5,568 -
Other Losses 498,990 1,790,231
Total 42,313,894 21,086,089

The departments/offices which reported other losses are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 41,285,507 97.57
Agriculture 263,130 0.62
Foreign Affairs 215,947 0.51
Environment and Natural Resources 121,607 0.29
Transportation 112,460 0.27
Sub-total 41,998,651 99.26
Other Departments/Offices 315,243 0.74
Total 42,313,894 100.00

The DOF-BTr NG reported P41.28 billion consisting of Loss on FOREX – P40.84

billion and Other Losses – P437.39 million.

42. CASH INFLOWS FROM OPERATING ACTIVITIES

The cash inflows from operating activities were from the following sources:

2019
2020
Particulars (Restated)
(in thousand pesos)
Collection of Income/Revenues 2,692,808,058 3,093,746,941
Receipt of Assistance from Other NGAs, LGUs and GOCCs 4,473,783 7,150,104
Collection of Receivables 151,803,300 55,794,531
Receipt of Inter-Agency Fund Transfers 91,578,206 56,132,064
Trust Receipts 364,390,129 68,461,090
Other Receipts 48,338,466 30,916,696
Total Cash Inflows 3,353,391,942 3,312,201,427
Adjustments 541,126,000 596,724,639
Adjusted Cash Inflows 3,894,517,942 3,908,926,066

The adjustments consist of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Restoration of cash for cancelled/lost/stale checks/ADA 6,145,833 2,082,059
Restoration of cash for unreleased checks (for commercial
checks) 2,236,366 1,586,471
Other adjustments - inflow 532,743,802 593,056,108

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 2019
2020
Particulars (Restated)
(in thousand pesos)
Total 541,126,000 596,724,639

43. CASH OUTFLOWS FROM OPERATING ACTIVITIES

The cash outflows from operating activities were used for the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Payment of Expenses 1,103,348,221 1,039,358,441
Purchase of Inventories 59,362,237 53,278,267
Purchase of Semi-Expendable Machinery, Equipment,
Furniture, Fixtures and Books 173,742 36,130
Purchase of Consumable Biological Assets 581,274 141,694
Grant of Cash Advances 101,081,643 94,610,250
Prepayments 14,778,731 13,351,971
Payment of Deposits 16,564,370 33,435,596
Payment of prior years' accounts payables for operating
expenses 94,029,400 87,567,259
Payment of tax refunds payable 157,759 665,214
Remittance of Personnel Benefit Contributions and
Mandatory Deductions 288,514,302 334,584,756
Grant of Financial Assistance/Subsidy 1,215,076,694 914,733,537
Release of Inter-Agency Fund Transfers 292,881,344 94,085,630
Other Disbursements 504,113,419 112,654,674
Total Cash Outflows 3,690,663,135 2,778,503,419
Adjustments 202,259,444 760,111,594
Adjusted Cash Outflows 3,892,922,579 3,538,615,013

44. CASH INFLOWS FROM INVESTING ACTIVITIES

Total cash inflows from investing activities is composed of the following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Proceeds from Sale of Investment Property 10 -
Proceeds from Sale/Disposal of Property, Plant and Equipment 217,648 37,147
Proceeds from Sale of Stocks/Bonds/Marketable Securities
and Other Investments 130,476,734 95,319,192
Receipt of Cash Dividends 89,683,439 52,687,180
Proceeds from Matured/Return of Investments 58,915,597 59,555,750
Collection of Long-Term Loans 1,256,042 1,790,878
Proceeds from Sale of Other Assets 5,416 3,586
Total 280,554,886 209,393,733
Of the total cash inflows from investing activities, DOF ranked the highest at P274.67
billion or 97.90 percent. Of this amount, DOF-BTr NG reported P269.05 billion or
97.95 percent, generated from the following: proceeds from sale of
stocks/bonds/marketable securities and other investments – P130.04 billion or 48.34
percent; receipt of cash dividends – P89.67 billion or 33.33 percent; proceeds from

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 matured investments – P48.44 billion or 18.00 percent; and collection of long-term
loans of P891.84 million or 0.33 percent.

45. CASH OUTFLOWS FROM INVESTING ACTIVITIES

Total cash outflows from investing activities of P820.70 billion was utilized for the
following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Purchase/Construction of Investment Property 156,661 6,274
Purchase/Construction of Property, Plant and Equipment 516,244,100 677,819,893
Investments 302,037,149 310,940,791
Purchase of Bearer Trees, Plants and Crops 7 -
Purchase of Bearer Biological Assets 13,922 37,536
Purchase of Intangible Assets 323,222 470,695
Grant of loans 1,927,570 3,927,044
Total 820,702,632 993,202,233

Of the total cash outflows from investing activities, P436.16 billion or 53.14 percent
was reported by DPWH for the purchase/construction of property, plant and equipment,
and purchase of intangible assets. Next to DPWH are DOF and DOTr with P301.19
billion or 36.70 percent and P18.77 billion or 2.29 percent, respectively.

Of the P302.04 billion Investments, P299.55 billion or 99.18 percent was reported by
the DOF which consisted of P286.74 billion or 95.72 percent for investment in
stocks/bonds/marketable securities, and P12.81 billion or 4.28 percent for investment
in GOCCs/GFIs.

Of the five departments/offices which reported grant of loans, DepEd reported the
highest amount of P909.99 million or 47.21 percent, followed by DOF and DA of
P859.17 million or 44.57 percent, and P141.97 million or 7.37 percent, respectively.

46. CASH INFLOWS FROM FINANCING ACTIVITIES

The DOF reported entirely the total cash inflows from financing activities of P4.420
trillion, detailed as follows:

2019
2020
Particulars (Restated)
(in thousand pesos)
Proceeds from issuance of bills and bonds 4,020,818,186 1,936,215,660
Proceeds from Domestic and Foreign Loans 399,597,790 111,789,131
Total 4,420,415,976 2,048,004,791

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47. CASH OUTFLOWS FROM FINANCING ACTIVITIES

Total cash outflows from financing activities of P2.625 trillion was utilized for the
following:

2019
2020
Particulars (Restated)
(in thousand pesos)
Payment of Long-Term Liabilities 637,601,711 90,331,843
Redemption of Bills/Bonds Issued 1,657,983,679 1,402,154,142
Payment of interest expenses (BTR NG Debt and other
NGAs with domestic and foreign loans) 92,541 108,494
Payment for other financial expenses/charges (BTr NG) 329,355,466 321,863,898
Total 2,625,033,397 1,814,458,377

Cash outflows from financing activities was reported substantially by the DOF of
P2.625 trillion or 99.99 percent, as follows: P637.55 billion or 24.29 percent for
payment of long-term liabilities; P1.658 trillion or 63.16 percent for redemption of bills
and bonds issued; and P329.45 billion or 12.55 percent for payment of interest expenses
and other financial charges.

48. EFFECTS OF EXCHANGE RATE CHANGES ON CASH

AND CASH EQUIVALENTS

The net loss from the exchange rate changes on cash and cash equivalents of P15.47
billion, which resulted from the conversion of foreign currencies to local currency
during the year, decreased the balance of cash and cash equivalents.

Two departments/offices reported gains totaling P29.60 million, of which DPWH

contributed the highest amount of P27.51 million or 92.94 percent followed by SUCs
of P2.09 million or 7.06 percent.

On the other hand, 14 departments/offices reported losses totaling P15.50 billion

summarized as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 15,206,491 98.10
Agriculture 169,020 1.09
Social Welfare and Development 51,478 0.33
Labor and Employment 26,726 0.17
Justice 11,361 0.07
Sub-total 15,465,076 99.76
Other Departments/Offices 35,690 0.24
Total 15,500,766 100.00

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49. CASH AND CASH EQUIVALENTS

49.1. Beginning Balance

The beginning balance of Cash and Cash Equivalents for FY 2019 was restated
to P691.59 billion from previous year’s FY 2019 balance of P689.73 billion.
The decrease of 1.99 billion pertains to the cash balance of BARMM which is
excluded in this AFR in view of its incorporation in the FY 2020 AFR for Local
Government.

49.2. Ending Balance

The FY 2020 ending balance of Cash and Cash Equivalents amounting to

P1.444 trillion shown in the SCF differed by P815.28 billion from the balance
of P629.13 billion shown in the SFPos. The difference is due to the cash portion
of the sinking fund and investments in time deposits which are classified as
investments in the books of the DOF-BTr NG amounting to P103.59 billion,
and treasury/agency cash accounts of the BTr NG temporarily closed to
accumulated surplus/(deficit) account in the amount of P711.69 billion.

191
 PART V

NATIONAL
GOVERNMENT DEBT
 PART V – NATIONAL GOVERNMENT DEBT

Introduction
The implementation of various capital development projects and programs is one of the
essential strategies to operationalize the government’s thrust of stabilizing the economy. The
National Government (NG) budget is formulated to turn our vision for social reform into a
tangible reality. This requires the implementation of various infrastructures, socio-economic
and capital development projects to be financed by the national revenues. To finance the
budget deficit or gap between revenues and spending, the NG resorts to borrowings. The NG
debt is sourced either from domestic borrowings or from foreign borrowings. Domestic
borrowings consist of certificates of indebtedness through issuance of T-Bills and T-Bonds
by the Treasury. Foreign borrowings are funds sourced from multilateral, bilateral and
commercial contracts with external creditors and usually include bonds and loans directly
contracted and those contracted and relent to GCs.

The Treasury carried out its financing program to meet the funding requirements of the
National Government which was heightened by the pandemic response and recovery
measures. For FY 2020, the NG raised a total of P2.741 trillion in borrowings plus P540
billion direct provisional advances in October 2020 from the Bangko Sentral ng Pilipinas.
This bridge financing fortified the government’s fiscal position for cash and debt
management purposes while funding the response for the COVID-19 pandemic. Of the total,
73% or P1.999 trillion came from domestic sources while 27% or P742.41 billion was
sourced from international markets. The Treasury was able to repay all the facilities extended
by the BSP by the end of 2020.

Over the ten-year period, the country’s NG debt has grown with an average of 8.12 percent.
Chart V-1 shows the NG debt trend by source over the ten-year period from 2011 to 2020.

Chart V-1 NG Debt Growth

FY 2011 to FY 2020
(in billion pesos)

8,000.00
6,696.58
7,000.00
6,000.00 4,778.43
5,129.23
4,442.78
5,000.00 3,815.81 3,877.61 3,935.85
3,460.82 3,728.33
4,000.00 2,860.60
3,000.00
2,000.00 3,100.41
2,515.26 2,613.34
2,082.29 1,972.13 1,942.28 2,068.06 2,157.71 2,212.41
1,000.00 1,914.88
-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Foreign Domestic

192
The outstanding balance of NG debt increased by P2.054 trillion or 26.53 percent from last
year’s balance of P7.743 trillion. This significant increase marks the highest over the past 10
years. Table V-1 shows the Outstanding Balances of NG Debt for the FY 2011-2020.

Table V-1 Outstanding Balances of NG Debt

FY 2011 – FY 2020
(in billion pesos)

Amount Percent
Year
Domestic Foreign Total Increase Increase
2020 6,696.58 3,100.41 9,796.99 2,054.42 26.53
2019 5,129.23 2,613.34 7,742.57 448.87 6.15
2018 4,778.43 2,515.26 7,293.70 638.51 9.59
2017 4,442.78 2,212.41 6,655.19 561.63 9.22
2016 3,935.85 2,157.71 6,093.56 147.89 2.49
2015 3,877.61 2,068.06 5,945.67 214.97 3.75
2014 3,815.81 1,914.88 5,730.70 60.09 1.06
2013 3,728.33 1,942.28 5,670.61 237.66 4.37
2012 3,460.82 1,972.13 5,432.95 490.06 9.91
2011 2,860.60 2,082.29 4,942.89 - -

FY 2020 NG Debt
The NG debt consists of domestic borrowings of P6.697 trillion or 68.35 percent and foreign
borrowings of P3.100 trillion or 31.65 percent. Domestic borrowings increased by P1.567
trillion or 30.56 percent compared to the FY 2019 amount of P5.129 trillion due to the
floatation of T-Bonds and issuance of T-Bills. Foreign borrowings increased by P487.07
billion or 18.64 percent over the previous year’s P2.613 trillion. Table V-2 shows the details
of comparative outstanding balances of NG debt for FYs 2020 and 2019.

Table V-2 Comparative Outstanding Balances of National Government Debt

FYs 2020 and 2019
(in million pesos)

Amount
Particulars Increase Percent
FY 2020 FY 2019
(Decrease)
Domestic 6,696,579.66 5,129,227.34 1,567,352.32 30.56
Bonds Payable 5,746,308.36 4,642,264.54 1,104,043.82 23.78
Fixed Rate Treasury Bond 2,759,429.60 2,351,517.30 407,912.30 17.35
Retail Treasury Bonds 1,918,636.06 1,290,591.97 628,044.09 48.66
Benchmark bonds 977,655.44 909,298.02 68,357.42 7.52
Onshore 10 year bonds 24,010.50 25,401.00 (1,390.50) (5.47)
Treasury Bonds (CB-BOL) 56,560.85 54,961.02 1,599.83 2.91
Domestic Uncertificated Treasury
Bonds - 0.03 (0.03) (100.00)
Agrarian Reform Bonds 10,015.92 10,495.21 (479.29) (4.57)
Treasury Bills 949,478.80 486,170.30 463,308.50 95.30
CB-BOL 166,432.30 166,432.30 - -
Regular 783,046.50 319,738.00 463,308.50 144.90
Loans Payable 792.50 792.50 - -
DBP Assumed Loans 442.50 442.50 - -
Loans Payable – Domestic (PNB) 350.00 350.00 - -

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 Amount
Particulars Increase Percent
FY 2020 FY 2019
(Decrease)
Foreign 3,100,413.52 2,613,344.89 487,068.63 18.64
Bonds Payable 1,788,545.75 1,624,151.14 164,394.61 10.12
Euro Bonds 114,625.89 42,734.64 71,891.24 168.23
Global Bonds 1,530,007.52 1,390,761.84 139,245.68 10.01
Japanese Bonds 114,669.05 161,771.23 (47,102.18) (29.12)
Panda Bonds 29,243.29 28,883.43 359.86 1.25
Loans Payable 1,311,867.78 989,193.76 322,674.02 32.62
Direct/Relent Loans 1,311,867.78 989,193.76 322,674.02 32.62

Total 9,796,993.18 7,742,572.24 2,054,420.94 26.53

The outstanding balance of NG debt as at December 31, 2019 of P7.743 trillion decreased by
P39.56 thousand due to prior period adjustments.

Availments/Issuances
Domestic Borrowings

The amount of P3.247 trillion was availed during FY 2020 through flotation of T-Bonds
and issuance of T-Bills. Domestic debt availments increased by P805.56 billion or 110.17
percent from FY 2019 of P731.18 billion, while issuance of T-Bills increased by P719.15
billion or 72.52 percent from last year. Details are shown in Table V-3.

Table V-3 Comparative Domestic Debt Availments and Issuances

FYs 2020 and 2019
(in million pesos)

Amount
Particulars Increase/ Percent
2020 2019
(Decrease)
Bonds Payable 1,536,746.11 731,183.05 805,563.05 110.17
Fixed Rate Treasury Bond 606,742.00 488,256.00 118,486.00 24.27
Retail Treasury Bonds 827,168.74 235,916.44 591,252.31 250.62
Bench Mark bonds 95,000.00 - 95,000.00 100.00
Treasury Bonds (CB-BOL) 6,560.85 4,961.02 1,599.83 32.25
Agrarian Reform Bonds 1,274.51 2,049.60 (775.08) (37.82)
Treasury Bills 1,710,796.80 991,643.30 719,153.50 72.52
CB-BOL 439,568.30 562,075.00 (122,506.70) (21.80)
Regular 1,271,228.50 429,568.30 841,660.20 195.93
Domestic 3,247,542.91 1,722,826.35 1,524,716.55 88.50

Of the total bonds availed, 53.87 percent came from retail treasury bonds (RTBs). Of the
total RTBs, P310.8 billion worth of three-year RTBs was issued on February 2020 to pool
funds and finance government’s plans and programs amidst the COVID-19 pandemic.
The Treasury capped 2020 with the successful return of the Premyo Bonds issuing P6.56
billion worth of one-year Premyo Bonds.

194
 Foreign Borrowings

The outstanding foreign borrowings at the end of FY 2020 of P3.100 trillion increased by
P487.07 billion from the FY 2019 adjusted balance of P2.613 trillion. The outstanding
balance consists of loans contracted with foreign creditors amounting to P1.312 trillion
and bonds issuances totaling P1.789 trillion. These loans represent direct loans contracted
by the NG and those relent to GCs. The balance of bonds payable consists of global
bonds of P1.530 trillion, Japanese yen bonds of P114.67 billion, Euro bonds of P114.63
billion, and Panda bonds of P29.24 billion.

Total availments during the year of P743.36 billion is P420.26 billion or 130.07 percent
higher than FY 2019 of P323.09 billion. Table V-4 shows the comparative foreign debt
availments.

Table V-4 Comparative Foreign Debt Availments

FYs 2020 and 2019
(in million pesos)

Amount
Particulars Increase/ Percent
FY 2020 FY 2019
(Decrease)
Bonds Payable 318,784.70 186,536.03 132,248.67 70.90
Euro Bonds 67,708.35 43,929.22 23,779.12 54.13
Global Bonds 251,076.35 78,352.50 172,723.85 220.44
Japanese Bonds - 45,349.52 (45,349.52) (100.00)
Panda Bonds - 18,904.78 (18,904.78) (100.00)
Loans Payable 424,573.68 136,558.35 288,015.34 210.91
NG Direct/Relent 424,573.68 136,558.35 288,015.34 210.91
Total 743,358.38 323,094.38 420,264.00 130.07

The Treasury successfully raised US$2.35 billion on May 2020 from its double tranche
global bond offering through the sale of 10-year and 25-year US dollar-bonds to help
finance measures to mitigate the economic impact of the corona virus outbreak. Another
US$2.75 billion global bond was raised on December 2020 which had a term of 25 years
and 10.5 years. A €1.2 billion worth of three- and nine-year Euro-denominated bonds was
raised at €600 million for each term on February 2020.

Repayments/Redemptions
Domestic Borrowings

Repayments of domestic borrowings reached P1.678 trillion. Table V-5 shows the details
of comparative domestic debt repayments and redemptions.

195
 Table V-5 Comparative Domestic Debt Repayments and Redemptions
FYs 2020 and 2019
(in million pesos)

Amount
Particulars Increase/ Percent
2020 2019
(Decrease)
Bonds Payable 430,832.50 371,171.09 59,661.41 16.07
Bench Mark bonds 26,642.58 - 26,642.58 100.00
Fixed Rate Treasury Bond 198,829.70 369,121.27 (170,291.57) (46.13)
Retail Treasury Bonds 199,124.65 - 199,124.65 100.00
Treasury Bonds (CB-BOL) 4,961.02 - 4,961.02 0.00
Agrarian Reform Bonds 1,274.51 2,049.60 (775.08) (37.82)
Domestic Certificated/
Uncertificated Treasury Bonds 0.03 0.22 (0.19) (86.36)
Treasury Bills 1,247,488.30 999,779.30 247,709.00 24.78
CB-BOL 439,568.30 570,211.00 (130,642.70) (22.91)
Regular 807,920.00 429,568.30 378,351.70 88.08
Domestic 1,678,320.80 1,370,950.39 307,370.41 22.42

Revaluation of Onshore 10 year bonds decreased the total domestic borrowing by P1.39
billion. The Schedule of Domestic Debt Securities is shown in Schedule 22 and the
Schedule of Outstanding Domestic Actual and Guaranteed Loans is shown in Schedule
23, Volume II of this report. Not included in the schedule is 35-day Treasury bill which
was issued and redeemed within the same year amounting to P133.30 billion.

Foreign Borrowings

Payments made for matured loans increased by P4.21 billion or 2.99 percent. Table V-6
shows the comparative foreign debt repayments.

Table V-6 Comparative Foreign Debt Repayments

FYs 2020 and 2019
(in million pesos)

Amount
Particulars Increase/
FY 2020 FY 2019
(Decrease)
Bonds Payable 85,476.14 79,832.74 5,643.41
Global bonds 38,748.46 79,832.74 (41,084,27)
Japanese bonds 46,727.68 - 46,727.68
Loans Payable
Direct/Relent loans 59,708.83 61,140.15 (1,431.32)
Total 145,184.97 140,972.88 4,212.09

Revaluation adjustments decreased Global Bonds by P73.08 billion and Japanese Bonds
by P374.50 million; increased Euro Bonds by P4.18 billion and Panda Bonds by P359.86
million; and decreased loans payable by P42.19 billion. Other adjustments decreased the
relent loans by P6.43 million. The Schedule of Outstanding Foreign Borrowings by
classification is shown in Schedule 21, Volume II of this report.

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Other Debt Service Expenditures
For FY 2020, the other debt service expenditures totaled P419.15 billion. Details are shown
in Table V-7.

Table V-7 Comparative Other Debt Service Expenditures

of the National Government
FYs 2020 and 2019
(in million pesos)

Amount Percent
Particulars Increase Increase/
FY 2020 FY 2019
(Decrease) Decrease
Interest Payments 396,284.38 385,722.94 10,561.43 2.74
Foreign 98,964.43 107,608.09 (8,643.66) (8.03)
Global Bonds 79,783.30 82,931.40 (3,148.10) (3.80)
Direct/Relent 19,181.13 24,676.69 (5,495.56) (22.27)
Domestic 297,319.95 278,114.85 19,205.10 6.91
Bonds, T-Bills and Loans 297,319.95 278,114.85 19,205.10 6.91
Financial Charges 22,871.01 13,692.99 9,178.02 67.03
Foreign 4,545.60 3,606.77 938.83 26.03
Commitment Fees 335.72 240.90 94.82 39.36
Documentary Stamp Tax 2,190.85 1,717.03 473.82 27.60
Other Financial Charges 882.19 371.74 510.45 137.31
Loss on Guaranty 1,136.67 1,276.60 (139.93) (10.96)
Bank Charges 0.17 0.50 (0.34) (66.85)
Domestic 18,325.41 10,086.22 8,239.19 81.69
Documentary Stamp Tax 18,325.41 10,086.22 8,239.19 81.69
Total 419,155.39 399,415.93 19,739.45 4.94

The loss on guaranty of P1.14 billion pertains to foreign exchange risk cover on NG
guaranteed obligations of government financial institutions (GFIs) such as DBP – P914.01
million, LBP – P214.01 million, and Small Business Guarantee and Finance Corporation –
P8.66 million.

Commitment fees of P335.72 million was paid by various departments/offices as shown in

Table V-8. The details of the commitment fees paid by creditor/agency/project is shown in
Schedule 20, Volume II of this report.

Table V-8 Commitment Fees by Department/Office

FY 2020 and FY 2019
(in million pesos)

Amount
Department/Agency
FY 2020 FY 2019
Transportation 131.50 29.90
Public Works and Highways 92.08 107.70
Finance 39.44 32.07
Public Works and Highways/Transportation 17.62 7.11
Social Welfare and Development 16.88 25.11
Agriculture 13.10 -
Agrarian Reform 11.53 21.66
National Irrigation Administration 8.10 10.33
Environment and Natural Resources 2.65 3.13

197
 Amount
Department/Agency
FY 2020 FY 2019
Agriculture/ Environment and Natural Resources 1.55 2.43
Philippine Competition Commission 1.26 -
Energy - 1.30
Interior and Local Government - Bureau of Fire Protection - 0.15
Total 335.72 240.90

198
 PART VI

SUMMARY OF
AUDIT OPINIONS
 COMMISSION ON AUDIT
NATIONAL GOVERNMENT SECTOR
For Calendar Year 2020

PART VI. SUMMARY OF AUDIT OPINIONS

AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
Cluster 1 - EXECUTIVE OFFICES
1. Bureau of Broadcast 
Services (BBS)
2. Bureau of 
Communication  
Services (BCS)
3. Climate Change    
Commission (CCC)
4. Commission on  
Filipino Language
(CFL)
5. Commission on  
Filipino Overseas
(CFO)
6. Cooperative   Overstatement of accounts Loans Receivables – Others totaling
Development P8.67 million, Due from NGOs/POs totaling P15.80 million,
Authority (CDA) and Other Receivables totaling P4.97 million, and
overstatement of the account Accumulated Surplus amounting
to P29.43 million due to unrecognized Allowance for
Impairment as the receivables accounts remained dormant for
more than 10 years with remote collectability/settlement, lack
of documents and closed cooperatives.
 Understatement of accounts Receivables – Disallowances/
Charges, and Accumulated Surplus by P8.26 million due to
unrecorded audit disallowances with issued Notice of Final
Decision (NFD), and the existence of negative amounts totaling
P2.11 million.
 Understatement of accounts Intangible Asset and Accumulated
Surplus by P0.90 million due to the recognition of Maintenance
of the Cooperative Business Matching Information System
(CBMIS) project as outright expense.
 Negative balances of Accounts Payables of P0.62 million and
Due to Officers and Employees of P0.98 million
7. Dangerous Drugs  Inadequate documents supporting the donations-in-kind
Board (DDB) amounting to P4.27 million, and the presence of non-moving or
dormant accounts totaling P2.32 million under the Due from
NGAs, Due from LGUs, Due from GOCCs, and Due from
NGOs/POs.
8. Department of Foreign   Understatement of accounts Cash in Bank-Local Currency,
Affairs (DFA) Current Account and Trust Liabilities by P2.47 million due to
unrecorded interest income earned from the Trust Fund account
for CY 2020 and prior years.
 Negative balances of several bank accounts amounting to
P252.87 million in Cash in Bank-Foreign Currency accounts.
 Understatement of accounts Due from National Government
Agencies (NGAs) and Due to NGAs by P14.41 million due to
error in recording funds received, and subsidiary ledgers (SL)
with negative balances totaling P18.92 million.
 Understatement of accounts Accountable Forms, Plates and
Stickers Inventory and Accumulated Surplus/(Deficit) by P1.98
million due to incorrect method of costing.

199
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
 Overstatement of Accountable Forms, Plates and Stickers
Inventory and Accumulated Surplus/(Deficit) accounts by
P174.29 million for obsolete blank passports that were not
subjected to allowance for impairment.
 Understatement of accounts Land and Buildings by an estimated
value of P1.24 billion due to unrecognized property identified
in the RPCPPEs of FSPs.
 Overstatement of account Construction in Progress (CIP)-
Buildings and Other Structures by P920.84 million, and
understatement of Buildings and Other Structures accounts by
the same amount due to non-classification of fully paid and
completed contracts/projects aggregating to the proper PPE
accounts.
 Existence of accounts with negative balances totaling P210.59
million in the account Advances for Operating Expenses.
 Understatement of accounts Advances to Officers and
Employees and Accumulated Surplus/(Deficit) by P6.66 million
due to failure to recognize the cash advances upon payment to
accountable officers/lessors that resulted in negative balances of
SLs upon liquidation of the advances.
 Abnormal accounts' balances aggregating P16.15 million in
Accounts Payable.
 Existence of unidentified SL accounts with a total negative
balance of P0.41 million in account Due to Pag-IBIG.
9. Department of Human    Understatement of Accounts Receivable, Income and
Settlement and Urban Accumulated Surplus/(Deficit) amounting to P25.00 million
Development due to non-recognition in the books of uncollected fines and
(DHSUD) penalties that have become final and executory.
 Understatement in the Guaranty Deposit account amounting to
P0.35 million due to non-recording of the deposit made by the
Agency under Lease Agreement.
 Understatement in Inventories and PPE accounts amounting to
P8.35 million due to non-recognition in the books of transferred
properties.
10. Film Development    Overstatement of P10.31 million and understatement of P7.21
Council of the million of various accounts due to the erroneous recording of
Philippines (FDCP) transactions pertaining to the receipt and transfer of funds from
Singapore Film Council and Finas of Malaysia for the Cannes
International Film Festival.
 Understatement of various expenses totaling P2.46 million due
to the non-recording of liquidation of cash advances, and
overstatement of Accumulated Surplus/Deficit account of same
amount.
 Overstatement of Subsidies-Others account by P11.63 million
and the understatement of the accounts Other Receivables and
Due from NGOs/CSO by P10.63 million and P1.00 million,
respectively due to the outright recording of financial
Assistance/grants as expense.
11. Foreign Service 
Institute (FSI)
12. Games and 
Amusements Board
(GAB)
13. Governance 
Commission for
GOCCs (GCG)
14. Human Settlement 
Adjudication
Commission (HSAC)
15. Movie and Television  Unsubmitted disbursement vouchers and its supporting documents
Review and amounting to P22.65 million, which is 33 percent of the total
disbursements of P69.40 million in CY 2020, which prevented the

200

OPINIONS
AGENCIES
UM Q A D
Classification Board
(MTRCB)
16. National Archives of  
the Philippines
(NAP)
17. National Anti-  
Poverty Commission
(NAPC)
18. National
Commission on
Culture and the
Arts (NCCA)
19. National  
Commission on
Indigenous Peoples
(NCIP)
20. National Commission
on Muslim Filipinos
(NCMF)
21. National Historical 
Commission of the
Philippines (NHCP)
22. National Library of the  
Philippines (NLP)
AUDIT
REASONS FOR MODIFIED OPINION
Audit Team to establish the correctness and reliability of the
affected accounts’ balances in the financial statements as at year
end.
   Overstatement of both the receivables Due from NGAs (BTr)
and Unrealized Gain (Loss) by P86.21 million due to the error
in the measurement of funds held in trust by the BTr.
 Abnormal/negative balances of Inter-Agency Receivables
amounting to P16.14 million.
 Overstatement of rental expenses and understatement of
prepayments amounting to P10.53 million due to the erroneous
recording as expense under Subsidies- Others account instead of
Prepaid Rent, the payment for the rental of exhibition space of
Philippine Pavilion in Venice, Italy.
  Overstatement of PPE accounts by P6.40 million due to non-
recognition in the books transferred Property, Plant and
Equipment (PPE) to Regional Offices (ROs).
 Overstatement of Other Payables by P12.35 million, and
Accounts Payable by P0.22 million with corresponding
understatement of Accumulated Surplus/(Deficit) by a total of
P12.58 million due to non-reversion of undocumented and
dormant payable accounts.
 Understatement of Cash-Collecting Officer account by
P13,239.01 and overstatement of the Cash, Treasury/Agency
Deposits, Regular by P2,239.01 and Cash in Bank Local
Currency, Current Account (LCCA) by P11,000.00 due to
erroneous recording of unremitted collections.
 Overstatement of inventory accounts by P1.54 million due to
misclassification of Other Intangible Asset account as semi-
expendable – Books.
 Understatement of Information & Communication Technology
Equipment (ICTE) and Other Intangible Assets accounts by
P2.94 million P2.62 million, respectively, and overstatement of
Books and Other Supplies and Material Expense accounts by
P2.77 million and P2.80 million, respectively due to
unaccounted laptops and erroneous recording of e-Books.
Further, overstatement of the account Books and understatement
of Subscription Expenses by P0.99 million due to erroneous
recording of e-subscription to Books.
 Understatement of Prepaid Subscription account in the amount
of P3.46 million and overstatement of Subscription Expenses/
Accumulated Surplus and Other Prepayments accounts by P2.46
million and P1.00 million, respectively, due to misclassification
and erroneous recording of e-books and other reading materials
as outright subscription expense.
 Overstatement of the Subsidy from NG and Cash
Treasury/Agency Deposit, Trust, both, by P1.07 million due to
erroneous recognition of the receipt of Notice of Cash
Allocation (NCA) for Trust Fund.
201
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
23. National Printing   Understatement of the CIB-LCCA account balance by P43.94
Office (NPO) million due to unadjusted book reconciling items;
 Dormant Accounts Receivable of P61.02 million for more than
10 years due to errors and misposting of entries, and inclusion
of negative balances amounting to P7.60 million;
 Understatement of the various PPE and Computer Software
accounts aggregating P7.43 million due to erroneous
derecognition/adjustment of the cost of various assets; and
 Negative balances totaling P5.81 million of Customers’
Deposits Payable account
24. National Youth 
Commission (NYC)
25. News and Information  
Bureau (NIB)
26. Office of the  
President (OP)
27. Office of the 
Presidential Adviser
on the Peace Process
(OPAPP)
28. Office of the Vice  
President (OVP)
29. Optical Media Board   Erroneous recording of liquidations of CY 2019 cash advances
(OMB) to various expenses in the current year instead of Accumulated
Surplus/(Deficit); and
 Erroneous recording of deposits of collections from the refunds
of cash advances amounting to P0.66 million to Subsidy from
National Government instead of Cash – Treasury/Agency
Deposits.
30. Philippine Commission  
on Women (PCW)
31. Philippine Competition  Non-submission of transactions for the months of October to
Commission (PCC) December 2020 totaling P83.79 million
32. Philippine Drug  Overstatement of the accounts Inventories and Accumulated
Enforcement Agency Surplus by P113.60 million due to unrecognized inventories
(PDEA) absence of the Report of Supplies and Materials Issued (RSMI) as
basis of the Accounting Division to prepare the Journal Entry
Voucher (JEV) to record the supplies and materials issued,
33. Philippine Information  Abnormal/negative balances of P9.01 million that reduced the
Agency (PIA) ending balance of the inter-agency payables accounts totaling
P204.89 million.
34. Philippine Racing 
Commission
(PhilRaCom)
35. Philippine Space 
Authority (PhilSA)
36. Philippine Sports    Understatement of the account Cash in Bank-Local Currency,
Commission (PSC) Current Account (LCCA) by P2.56 million caused by (a) P1.34
million unadjusted net of book reconciling items from CYs 2014
to 2020, and (b) P1.22 million stale checks that were not
cancelled and reverted back to the cash account, which
correspondingly, the Accounts Payable was understated by the
same amount.
 Understatement of the account Due from NGOs/CSOs by P3.60
million due to errors in recording the liquidations of financial
assistance (FA) and crediting P1.20 million to unrelated
financial assistance.
 Negative balances appearing in the SL of the account Other
Receivables totaling P14.00 million.
 Overstatement Accounts Payable by P107.60 million due to
recognition of inter-agency and other payables thereof.

202
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
 Understatement of reported depreciation expenses and its
corresponding accumulated depreciation by P1.09 million and
the reported amortization expenses and its corresponding
accumulated amortization by P0.18 million, due to the incorrect
computation.
37. Presidential 
Broadcast Staff -
RTVM (PBS-RTVM)
38. Presidential    Overstatement of the accounts Information and
Commission on Urban Communications Technology Equipment and Accumulated
Poor (PCUP) Surplus/(Deficit) due to recording of undelivered equipment and
the irregular processing of its payment totaling P4.97 million.
 Misstatements of the Inventory accounts caused by the non-
recognition of issued Semi-Expendable Properties with an
aggregate amount of P3.22 million, and non-recording of issued
Office Supplies Inventory with book value of P1.94 million.
 Overstatement of Expenses and Accumulated Surplus/Deficit
accounts due to erroneous recording in CY 2020 of prior period
transactions totaling P0.56 million.
 Non-preparation and non-submission of separate financial
statements for its Trust Receipts/Inter-Agency Transferred
Funds or non-reporting of account balances related to trust
receipts totaling P429.42 million, undermined the fair
presentation of the Agency’s financial statements.
39. Presidential 
Communications
Operations Office
(PCOO)
40. Presidential Legislative 
Liaison Office (PLLO)
41. Presidential  
Management Staff
(PMS)
42. Technical Cooperation  
Council of the
Philippines (TCCP)
43. UNESCO National 
Commission of the
Philippines
(UNACOM)
TOTAL 26 15 2 0
Note: Management Letter (ML) on the audit of Anti-Red Tape Authority (ARTA) for Calendar Year 2020 was prepared
in lieu of an Annual Audit Report (AAR) as the agency’s Financial Statements (FS) as of December 31, 2020 were not
submitted for audit for more than 30 days from due date of February 14, 2021.

Cluster 2 - Oversight and Public Debt Management Agencies

1. Anti-Money 
Laundering Council
(AMLC)
2. Bureau of Customs   Seized/Confiscated currencies from years 2018-2020 equivalent
(BOC) to P88.78 million not recognized and duly accounted in the
books of accounts as required under Section 63 of PD 1445;
 Tax Revenue as at December 31, 2020 representing unpaid
duties and taxes plus interest and surcharges amounting to
P157.60 million were not recognized in the books;
 Tax Receivable recognized in CY 2019 as Accounts Receivable
amounting to P116.07 million representing unpaid duties and
taxes in CYs 2018-2019 were erroneously and not fully
recognized; and
 Semi-expendable inventory issuance totaling P8.00 million and
deliveries totaling P2.69 million not recognized in the books of
accounts.

203
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
3. Bureau of Internal   Unrecognized PPE and Forfeited Properties/Assets by P433.52
Revenue (BIR) million and P15.18 million;
 Completed construction projects not reclassified to the proper
PPE accounts totaling P36.89 million;
 Existence of negative subsidiary ledger balances totaling P31.10
million, understated the affected accounts, which is not in
keeping in IPSAS 1 on fair presentation of financial statements
and the generally accepted accounting principle that assets
should normally have debit balances while liabilities and equity
accounts should normally have credit balances;
 Non-provision/under (over) provision of depreciation expenses
amounting to P12.69 million; and
 Unrecognized issuances of supplies and materials totaling P9.45
million.
4. Bureau of Local   Erroneous recognition of project cost for site development and
Government Finance construction of perimeter fence by P2.95 million;
(BLGF)  Non-recognition of donated 10 Acer Travelmate laptops at
P60,545.00 each and one Epson Ecotank Printer at P43,155.00;
 Non-provision of residual value of five per cent in the
computation of depreciation of P0.12 million;
 Non-recognition of depreciation expense for motor vehicles of
P0.22 million;
 Erroneous recognition of items below the P15,000.00
capitalization threshold of P0.11million;
 Misclassification of semi-expendable furniture and fixtures of
P28,500.00;
 Erroneous classification of hazard allowance of P0.14 million;
 Non-withholding of expanded withholding tax and erroneous
computation of final value added tax of P33,410.64;
 Non-recognition of deliveries of office supplies from
Procurement Service of P50,399.07; and
 Non-derecognition of office supplies burned by fire of
P46,503.07.
5. Bureau of the Treasury   Erroneous recognition of time deposits in local currency of
- National Government P15.00 billion;
(BTr-NG)  Erroneous recognition and remittances of withholding taxes on
interests earned from government securities of P1.17 billion;
 Erroneous computation of accrued interests on outstanding
reissued Treasury Bonds overstated the Interest Payable and
Interest Expense by P1.05 billion;
 Double recognition of interest receivable overstated both
Interest Receivables and Interest Income by P903.15 million;
 Recognition of foreign exchange risk cover claims (FXRCCs)
and foreign exchange risk cover fees (FXRCFs) for CY 2019
overstated Loss on Guaranty and Other Business Income by
P385.43 million and P247.32 million while non-recognition of
FXRCCs and FXRCFs for CY 2020 understated Loss on
Guaranty, Other Business Income and Due to Government-
Owned or Controlled Corporation by P383.76 million, P200.47
million, and P584.23 million, respectively, and net overstated
Accumulated Surplus/(Deficit) by P183.28 million;
 Existence of negative Subsidiary Ledger balances under various
accounts understated Cash-in-Bank Local Currency, Savings
Account, Due from National Government Agencies and Due to
GOCCs by P29.83 million, P324.06 million and P244.53
million respectively, and overstated Cash-Treasury/Agency
Deposit, Regular and Accumulated Surplus/(Deficit) both by
P122.23 million; and
 Erroneous recognition and computation of the Catastrophe
Bonds insurance premium understated Insurance Expense by
P177.27 million and overstated Prepaid Insurance and

204
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
Accumulated Surplus/(Deficit) by P305.78 million and P128.51
million, respectively.
6. Bureau of the Treasury   Erroneous classification of accounts misstated the assets,
(BTr) - Proper liabilities and accumulated surplus/(deficit) by P4.66 million,
P6.90 million and P1.77 million;
 Major repairs recognized as expense understated Buildings and
Other Structures by P0.20 million and P46,000.00, respectively;
and
 Non-setting up of payables by P1.88 million.
7. Central Board 
Assessment Appeals
(CBAA)
8. Department of Budget   Non-recognition of issuances of inventories and semi-
and Management expendable properties to end-users in Calendar Year (CY) 2020
(DBM) and prior years totaling P6.98 million;
 Non-recognition of prepayments for insurance of property, plant
and equipment (PPE), subscriptions to software licenses and
cloud infrastructure aggregating P63.79 million;
 Non-recognition of current year expended portion of
prepayments for insurance of PPE and subscriptions to software
licenses amounting to P8.25 million; and
 Incorrect computation of expense allocations of prepayments
for insurance of PPE and subscriptions to software licenses
totaling P5.27 million.
9. Department of Finance   Completed projects totaling P19.08 million still recognized as
(DOF) construction in progress;
 Prior year expenses paid in CY 2020 totaling P3.71 million were
recognized as current year's expenses;
 Recoupment of advances to contractors amounting to P0.75
million not recognized in the books; and
 Consultancy and job order service rendered in CY 2020 of P1.15
million and P0.15 million, respectively, unrecognized under
Accounts Payable.
10. Government 
Procurement Policy
Board - Technical
Support Office (GPPB-
TSO)
11. Insurance Commission 
(IC)
12. Legislative - Executive 
Development Advisory
Council (LEDAC)
13. Municipal 
Development Fund
Office (MDFO)
14. National Economic 
and Development
Authority (NEDA)
15. National Tax Research   Inclusion of semi-expendable items already issued to end users
Center (NTRC) totaling P0.33 million; and
 PPE accounts include tangible items below capitalization
threshold of P15,000.00 totaling P0.64 million.
16. Philippine National 
Volunteer Service
Coordinating Agency
(PNVSCA)
17. Philippine Statistical   Erroneous recognition of net proceeds from sale of bid
Research and Training documents and receipts from income which resulted in the
Institute (PSRTI) overstatement of Cash in Bank-Local Currency, Current
Account, Other Service Income, Seminar/Training Fees, Other
Business Income, Other Maintenance and Operating Expenses,

205
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
Accumulated Surplus/(Deficit) by P3,228.50, P0.91 million,
P40,000.00, P13,000.00, P9,771.50, P3,228.50 respectively,
and understatement of Rent/Lease Income by P0.95 million;
 Non-recognition of billed training fees which understated Due
from National Government Agencies, Seminar/Training Fees,
and Accumulated Surplus/(Deficit) all in the amount of
P72,000.00
-Non-adjustment of fees collected from cancelled trainings
which understated Other Deferred Credits and overstated
Seminar/Training Fees and Accumulated Surplus/(Deficit) in
the amount of P0.34 million;
 Erroneous recognition of initial measurement and non-
amortization of Held-to-Maturity (HTM) investments which
understated Investment in Treasury Bonds and Accumulated
Surplus/(Deficit) both in the amount of P0.25 million;
 Non-recognition of the maturity proceeds and non-
derecognition of matured HTM investment which overstated
Investment in Treasury Bonds in the amount of P20.00 million
and understated Cash in Bank-Local Currency, Savings
Account, Taxes, Duties and Licenses, and Accumulated
Surplus/(Deficit) in the amounts of P20.8 million, P0.12 million,
P0.63 million and P0.82 million, respectively;
 Non-accrual and non-recognition of earned interest on
investment which understated Interest Receivable, Investment
in Treasury Bonds, Local, Interest Income, Other Payables,
Taxes, Licenses and Accumulated Surplus/(Deficit) in the
amounts of P0.36 million, P6,958.97, P0.36 million,
P71,527.93, P71,527.93 and P0.29 million respectively; and
 Erroneous recognition of PPE and undelivered PPE as payable
resulting to understatement of Donations by P0.31 million and
overstatement of both Information and Communication
Technology Equipment and Accounts Payable by P0.23 million.
18. Philippine Statistics   Inconsistent application of accrual basis of accounting and
Authority (PSA) misclassification of various accounts resulted in the
understatement of Basic Salary-Civilian, Mid-year Bonus,
Year-End Bonus, Security Services, Other General Services,
Loss on Foreign Exchange (FOREX), Overtime Pay, Salaries
and Wages-Regular, Representation Allowance, Other Bonuses
and Allowances, Information and Communication Technology
(ICT) Equipment, Accumulated Depreciation – ICT Equipment,
Accounts Payable, Due to Officers and Employees, Due to
GOCCs, and Interest Income by P10.02 million, P7.54 million,
P2.48 million, P1.17 million, P0.24 million, P32,797.07,
P32,003.62, P27,614.00, P18,750.00, P9,574.93, P0.14 million,
P0.13 million, P1.51 million, P0.21 million, P39,680.00 and
P536.56, respectively, and overstatement of Accumulated
Surplus/(Deficit), Accounts Payable, Office Equipment,
Accumulated Depreciation – Office Equipment, and Cash in
Bank – Foreign Currency, Savings Account by P1.51 million,
P0.14 million, P0.14 million, P0.13 million and P32,260.51,
respectively;
 Non-restoration of unreleased commercial checks and erroneous
recognition on the cancellation of stale MDS checks resulted in
the understatement of Cash-Modified Disbursement System
(MDS), Regular, Cash in Bank-Local Currency Current
Account, Other Payables, Accounts Payable, Due to NGAs, Due
to GSIS, Due to Officers and Employees, Due to Pag-IBIG, Due
to PhilHealth and Accumulated Surplus/(Deficit) by P22.31
million, P17.70 million, P15.61 million, P96,835.70, P1.79
million, P96,165.06, P72,973.00, P20,898.71, P13,674.37 and
P22.31 million, respectively; and
 Recognition of undelivered Office Supplies, PPEs and supplies
and materials and unrecognized office supplies purchased

206
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
through PS in the books of accounts resulted in the
understatement of Cash in Bank-Local Currency Current
Account and Office Supplies Inventory by P5.82 million, and
P0.59 million, respectively, and overstatement of Semi-
Expendable Furniture and Fixtures, Information and
Communications Technology Equipment, Office Equipment,
Semi-Expendable Information and Communications
Technology Equipment, Office Supplies Inventory, Semi-
Expendable Other Equipment, Furniture and Fixtures, Semi-
Expendable Office Equipment, Sports Equipment, Semi-
Expendable Sports Equipment, Semi-Expendable Disaster
Response and Rescue Equipment and Due from National
Government Agencies by P1.45 million, P1.22 million, P1.08
million, P0.99 million, P0.49 million, P0.21 million, P0.16
million, P0.14 million, P60,112.41, P20,440.96, P5,400.00 and
P0.59 million, respectively.
19. Privatization   Recognition of various transactions relative to the 10-year
Management Office Agrarian Reform (AR) Bonds of P219.59 million;
(PMO)  Recognition of interest income on 10 year AR Bonds under
Interest Income instead of Due to NGAs, and at net amount
instead of gross amount of P78,101.19;
 Recognition of Semirara Mining and Power Corporation shares
with debit to Investment in Stocks and a credit to Other Deferred
Credits instead a credit to Due to NGAs of P396.16 million;
 Recognition of cash dividend for the shares applicable to the
National Development Company obligation to the National
Government through PMO of P15.61 million under Dividend
Income instead of under Due to NGAs; and
 Non-recognition of receivables of P60.77 million from rental
fees, association dues and parking rental fees from various
government properties.
20. Procurement Service   Non-recognition of receivables for Government Fare
(PS) Agreement transactions totaling P62.14 million;
 Non-recognition of the allowance for impairment for the
obsolete/outdated, spoiled or expired merchandise inventory
understated Allowance for Impairment-Merchandise Inventory,
and overstated Accumulated Surplus by P18.80 million;
 Non-recognition of receipt of PPE items amounting to P18.59
million; and
 Recognition of delivery expenses of P20.28 million as Cost of
Sales.
21. Public-Private 
Partnership Center of
the Philippines
(PPPCP)
22. Securities and 
Exchange Commission
(SEC)
23. Tariff Commission 
(TC)
Total 11 11 1 0
Note: Non-submission of the consolidated Financial Statements (FSs) as at December 31, 2020, financial reports, and
supporting schedules/supporting documents as at July 16, 2021, did not enable the performance of the necessary audit
procedures to verify Management's assertions on the FSs of the Commission on Population and Development and to
render an opinion thereon, hence this ML was prepared in lieu of an Annual Audit Report for CY 2020.
Cluster 3 – Legislative, Judiciary and Constitutional Offices
1. Career Executive 
Service Board (CESB)
2. Civil Service   There are accounting errors/omissions and deficiencies in the
Commission (CSC) aggregate amount of P230.37 million that affected the fair
presentation of the consolidated financial statements of the Civil

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AGENCIES
UM Q A D
Service Commission. Details as follows:

a) Non-recording of acquired/donated PPEs in NCR, ROs III

and XI amounting to P13.00 million
b) Existence of reconciling items that remain unadjusted in the
CIB-LLCA in ROs III, V, IX and XIII amounting to P0.42
million
c) Inclusion of stale checks and non- reversion of unreleased
checks in RO III amounting to P0.40 million
d) Inclusion of negative book values of PPE in CO amounting
to P 0.27 million
e) Non-recognition of properties in RO III amounting to P0.15
million)
f) Existence of "Reconciliation SL" balances in CO an RO XI
amounting to P88.19 million
g) Unreconciled difference in PPE accounts between the
accounting and property records in CO, NCR, ROs II, III,
IV, IX, XI, XIII and BARMM amounting to P75.50 million
h) Non-apportionment of the value of acquired assets to
proper PPE accounts in RO III and IV amounting to P25.59
million
i) Doubtful valuation of the dormant receivables from Local
Scholarship Program amounting to P16.61 million
j) Unreconciled difference in inventory accounts between the
accounting and property records in CO, NCR, ROs III, IV
and X amounting to P3.97 million
k) Inventories recognized as outright expenses in NCR and
RO III amounting to P3.90 million
l) Unreconciled balance between CSC- CO books and inter-
agency reciprocal accounts of PS-DBM amounting to
P1.10 million
m) Long outstanding GL balance of Due from NGAs- PS-
DBM account in RO IV amounting to P0.88 million
n) Unaccounted/missing properties in RO XI amounting to
P0.70 million
3. Commission on  
Appointments (CA)
4. Commission on Audit   A modified opinion was rendered on the fairness of presentation
(COA) of the financial
statements of the COA for CY 2020 due to the following
accounting errors and deficiencies:

a) The accuracy and reliability of the account Due from

GOCCs amounting to P3.88 billion as at December 31,
2020 cannot be ascertained due to: a) inclusion of dormant
accounts in the amount P1.57 million or 40.41 percent of
the reported amount; and b) non-provision of impairment
loss on dormant accounts.
b) The accuracy and existence of Property, Plant and
Equipment (PPE)accounts with an aggregate balance of
P2.39 billion as at December 31, 2020 cannot be
ascertained due to: a) the discrepancy of P296.33 million
between the General Ledger balance and the Report of
Physical Count of PPE (RPCPPE); and b) inclusion of
items below the capitalization threshold.
c) The year-end balance of P194.81 million of the
Construction in Progress account is overstated by P23.49
million due to non-reclassification of completed projects in
COA RO VII to its proper PPE account. Likewise, expenses
were understated due to non-recognition of related
depreciation expenses amounting to P0.68 million contrary
to existing law and international accounting standards.

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d) Repairs and Maintenance Expenses for Buildings and Other
Structures amounting to P24.81 million for the year ended
December 31, 2020 was overstated by P13.90 million and
understated the Construction in Progress by P9.62 million
and Buildings by P4.27 million due to the recognition of
the COA CO infrastructure projects as outright expenses
instead of replacement costs.
e) The accuracy and reliability of the year-end balances of the
Inventory accounts of COA ROs V, XII and NIS with a
total amount of P3.89 million cannot be ascertained due to:
a) unreconciled differences between the Report on the
Physical Count of Inventories (RPCI) and Subsidiary
Ledger Cards (SLC) of COA Region V amounting to P1.32
million; b) unrecorded issuances of office supplies COA
Region XII amounting to P0.13 million; c)non-adoption of
the weighted average method for costing Inventories; and
d) non-maintenance of the SLCs and Stock Cards (SCs).
f) Dormant Receivables of COA RO XIII amounting to P1.11
million, aged 10 years or more has remained outstanding in
the books of accounts, contrary to existing COA rules and
regulations thus, affecting the fairness of presentation of the
financial statements.
g) The unreleased checks at year end amounting to P0.22
million were not restored to the Cash account of COA
Negros Island and Siquijor (NIS) resulting in the
understatement of the reported cash and the corresponding
liability account by the same amount.
5. Commission on 
Human Rights (CHR)
6. Court of Appeals (CA)    Overstated carrying amounts of PPE accounts due to the
erroneous calculation of the CY 2020 depreciation and its
accumulated balance in the total amount of P1.79 million;
 Overstated carrying amounts of PPE due to the existence of the
lumped PPE accounts under the SL classification “For
Reconciliation” amounting to P0.48 million;
 Overstated balances of Inventory Held for Consumption
accounts due to unreconciled variance between Accounting
records and the Report on the Physical Count of Inventories
totaling P5.37 million;
 Misstatement of Inventory Held for Consumption Accounts due
to the incomplete physical count of inventory in the amount of
P7.87 million;
 Understated inventory accounts due to the existence of negative
or abnormal balances amounting to P0.55 million;
 Overstated inventory accounts due to the inclusion of Subsidiary
Ledger (SL) accounts captioned as “Items for Reconciliation” in
the total amount of P0.40 million;
 Understated Accumulated Depreciation account due to
erroneous calculation of the CY 2020 depreciation and its
accumulated balance amounting to P1.79 million;
 Overstated Accumulated Surplus/(Deficit) account due to
overstatement of inventory per Accounting record amounting to
P5.37 million;
 Understated Accumulated Surplus account due to the
unadjusted negative or abnormal balances of the inventory
accounts amounting to P0.55 million;
 Understated Accumulated Surplus account due to overstatement
of expenses charged to Other Maintenance and Operating
Expenses account amounting to P4,000.00
7. Court of Tax Appeals 
(CTA)

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AGENCIES
UM Q A D
8. House of 
Representatives (HOR)
9. House of 
Representatives
Electoral Tribunal
(HRET)
10. Human Rights    There are deficiencies which affected the fair presentation of the
Violations Victim’s financial statements caused by:
Memorial Commission a) unresolved variance of P1.63 million between accounting
(HRVVMC) and property records resulting from inadequate inventory
taking procedure and non-reconciliation of Property Unit
and Accounting Unit PPE records; and
b) unresolved variance of P1.07 million between accounting
and inventory records resulting from non-preparation of the
Request and Issue Slip (RIS) and Report of Supplies and
Materials Issued (RSMI) in issuing inventories and
incomplete Report of Physical Count of Inventories
(RPCI). The deficiencies represent 19.90 percent of the
Total Assets and 10.91 percent of the Total Expenditures.
11. Presidential Electoral 
Tribunal (PET)
12. Sandiganbayan   Erroneous charging of expenses totaling P4.21 million incurred
in CY 2019 against CY 2020 funds
13. Senate Electoral 
Tribunal (SET)
14. Senate of the 
Philippines
15. Supreme Court of the    The aggregate misstatements of P1.54 billion (2.58% of total
Philippines (SCP) assets) due to accounting errors, omissions and improper
accounting treatment of transactions affected the fair
presentation of the Supreme Court of the Philippines’ Financial
Statements as at December 31, 2020
TOTAL 9 5 1 0
Note: ML was issued to the Commission on Election and Office of the Ombudsman due to non-submission of the CY
2020 Financial Statements within the due date.
Cluster 4 – Defense and Security
1. AFP-Commissary and 
Exchange Service
(AFPCES)
2. AFP-General 
Headquarters
(AFP,GHQ)
3. Bureau of Corrections  The aggregate misstatement of P353.13 million due to accounting
(BuCor) errors and improper accounting treatment of transactions affected
the fair presentation of the Bureau of Correction’s financial
statements as of December 31, 2020
4. Bureau of Fire  As discussed in Part II – Observations and Recommendations of
Protection (BFP) Consolidated Annual Audit Report for CY 2020, fair presentation
of several accounts in the Consolidated Financial Statements was
affected due to accounting errors and accounting deficiencies
totaling P1.36 billion and P4.10 billion, respectively, which
include double recording of assets, unrecorded receivables and
Property, Plant and Equipment (PPE), misclassification of
accounts, unrecorded adjustment on fund transfers and non-
maintenance of PPE Ledger Cards, Supplies Ledger Cards,
Property Cards and Stock Cards, among others.
5. Bureau of Immigration 
(BI)
6. Bureau of Jail 
Management and
Penology (BJMP)

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AGENCIES
UM Q A D
7. Department of Justice  Due to accounting errors amounting to P76.55 million which
(DOJ) exceeded the materiality level of P27.86 million.
8. Department of   Misstatements to the Total Assets equivalent to 1.24 percent due
National Defense to:
(DND) a) net understatement of the Inventory accounts by P2.40
million attributable to unrecorded deliveries and issuance
of supplies; and
b) net overstatement of Property, Plant and Equipment (PPE)
accounts by P1.56 million caused by unrecorded and non-
existing PPE affected the fair presentation of the FS.
Moreover, reported deficiencies on the balances of the
affected accounts totaling P99.20 million.
9. Department of the 
Interior and Local
Government (DILG)
10. Land Registration  Due to various misstatements that affect the assets, liability and
Authority (LRA) equity accounts amounting to P1.32 billion which exceeded the
materiality level of P31.29 million
11. Local Government 
Academy (LGA)
12. National Bureau of 
Investigation (NBI)
13. National Defense 
College of the
Philippines (NDCP)
14. National Police   The following audit observations affected the fair presentation
Commission of financial statements of the NAPOLCOM, as summarized
(NAPOLCOM) below:
a) Accounting errors/omissions in recording transactions
amounting to P4.95 million which represents 0.46 percent
of the Total Expenditures of P1.08 billion, resulted in the
misstatement of the affected accounts in the financial
statements; and
b) Various accounting deficiencies in recording and reporting
financial transactions totaling P60.59 million which
represents 2.22 percent of the Total Assets of P2.73 billion,
undermined the qualitative characteristics of the
information in the financial statements.
15. Office of Civil  A qualified opinion was rendered on the fairness of
Defense (OCD) presentation of the financial statements (FS) of OCD as of
December 31, 2020 due to accounting errors amounting to
P148.59 million which exceeded the materiality level of P21.93
million.
16. Office of the 
Government Corporate
Counsel (OGCC)
17. Office of the Solicitor 
General (OSG)
18. Parole and Probation  Due to accounting errors amounting to P17.35 million or 1.91
Administration (PPA) percent of Total Expenditures which exceeded the materiality
level of P4.54 million.
19. Philippine Air Force 
(PAF)
20. Philippine Army (PA)  Due to accounting errors and omissions totaling P4.53 billion
representing 5.16 percent of its total current operating expenses of
P87.67 billion; and accounting deficiencies amounting to P8.77
billion.
21. Philippine National   As discussed in Part II – Audit Observations and
Police (PNP) Recommendations of this Report, there were accounting errors
which affected the fair presentation of the financial statements
of the PNP such as:

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AGENCIES
UM Q A D
a) Beyond economic repair helicopter remained recorded in
the books of accounts amounting to P325.89 million;
b) Improper recording of Property, Plant and Equipment
(PPE) items of P7.60 million;
c) Unrecorded donations of P98.66 million;
d) Unrecorded lands owned by police regional offices (PROs)
of P 0.53 million;
e) Recorded lots without certificates of land title and
supporting documents of P 2.89 million;
f) Unrecorded receipt of K9 units of P 2.32 million;
g) Unrecorded retired K9 units of P9.00 million;
h) Unrecorded transferred PPEs to various PROs of P1.34
billion;
i) Inclusion of items below the capitalization threshold of
P15,000.00 of P 28.56 million;
j) Unremitted savings from various projects, insurance
proceeds and income of P5.60 million;
k) Unrecorded deliveries and remitted dormant funds to the
Bureau of the Treasury (BTr) by the Procurement Service
– Department of Budget and Management (PS-DBM) of
P51.72 million;
l) Unrecorded payment drawn against deposit on letter of
credit (LOC) of P1.35 billion;
m) Unreconciled variance between the accounting and
property records of P1.28 billion;
n) Improper allocation of depreciation expense, and;
o) Non preparation/improper maintenance of Lapsing
Schedules.
22. Philippine Navy (PN) 
23. Philippine Public   Misstatements to the total assets equivalent to 7.16 percent due
Safety College to:
(PPSC) a) overstatement of the Other Assets accounts by P5.54
million attributable to unrecorded expenses caused by
delayed submission of liquidation reports; and
b) non-recording of issuances of supplies and materials
amounting to P110.20 million in the proper accounting
period which affected the fair presentation of the FS.
Moreover, non-completion of physical count of PPE with
book value of P1.43 billion and non-
preparation/submission of RPCPPE affected the reliability
of the PPE accounts.
24. Philippine Veterans  The accounting errors and omissions affected the fair presentation
Affairs Office of Financial Statements which represent 16.31 percent of the total
(PVAO) Assets. The erroneous recording and classification of accounts
resulted in the understatement of Cash in Bank by P170.53
million, Inventory by P5.68 million, Property, Plant and
Equipment by P 6.45 million, and the overstatement of
Accumulated Surplus/(Deficit) by P182.65 million
25. Presidential 
Commission on Good
Government (PCGG)
26. Public Attorney’s  Due to erroneous recording and classification of accounts resulted
Office (PAO) in the over/understatement of affected accounts by P82.96 million
and unreconciled difference between the two records totaling
P41.89 million.
27. Veterans Memorial 
Medical Center
(VMMC)
TOTAL 14 13 0 0

Cluster 5 - Education and Employment

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 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
1. Bureau of Workers 
with Special Concerns-
Social Amelioration
Program (BWSC-SAP)
2. Commission on  The consolidated financial statements of CHED are materially
Higher Education misstated by an aggregate amount of P17.51 billion on account of
(CHED) accounting errors, omissions and improper accounting treatment
of transactions that are considered as departures from the IPSAS
and the Government Accounting Manual for National
Government Agencies. In particular, significant portion of the
aggregate misstatements pertains to unrecorded remittances to the
Bureau of the Treasury representing the share of CHED on the
collections of travel tax of Tourism Infrastructure and Enterprise
Zone Authority, professional registration fees of the Professional
Regulation Commission, lotto operations of Philippine Charity
Sweepstakes Office, and proceeds from sale of Metro Manila
Military Camps by Bases Conversion and Development Authority,
in the total amount of P11.97 billion. The remittances should have
been recorded by CHED under Cash – Treasury/Agency Deposit,
Special Account with corresponding recognition of appropriate
revenue accounts.

3. Department of   The DepEd’s consolidated financial statements were materially

Education (DepEd) misstated by P15.47 billion on account of errors, omissions and
improper accounting treatment of transactions that were
considered as departures from the International Public Sector
Accounting Standards (IPSAS), hence affecting the fair
presentation of its financial position as at December 31, 2020,
and its financial performance and cash flows for the year then
ended.
 Misstatements found in Cash and Cash Equivalents - P445.71
million;
 Misstatements found in Receivables - P511.06 million;
 Misstatements found in Inventories - P 12.73 billion;
 Misstatements found in Other Current Assets - P73.05 million;
 Misstatements found in PPE - P1.12 billion;
 Misstatements found in Other Non-Current Assets - P0.88
million;
 Misstatements found in Liabilities – P412.37 million;
 Misstatements found in Revenue - P0.34 million;
 Misstatements found in Financial Assistance/ Subsidy - P1.51
million; and
 Misstatements found in Expenses accounts - P183.11 million.
4. Department of Labor 
and Employment
(DOLE)
5. Early Childhood Care   Five Asset accounts and one Expense account have
and Development misstatements totaling P297.98 million and ₱8,309.19,
Council (ECCDC) respectively, representing 25.46 percent of its total Assets of
P1.17 billion as at December 31, 2020. Due to the significant
impact of such misstatements on the reported balances of the
affected accounts, the accuracy, valuation, completeness, and
existence of the said accounts could not be relied upon. The
details are as follows:

a) Understatement of the Due from LGUs account due to

erroneous recording of liquidation/utilization report
submitted by one LGU amounting to P1.00 million;
b) Overstatement of the Due from GOCCs account due to
unrecorded transactions between ECCDC and PITC books
totaling P127.43 million;

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AGENCIES
UM Q A D
c) Overstatement of the Due from NGAs account due to
unrecorded transactions between ECCD Council and
DBM-PS books totaling P0.14 million;
d) Overstatement of the Property and Equipment for
Distribution Inventory account due to unrecorded
issuances/transfer of contents to recipient NCDCs
nationwide amounting to P169.29 million;
e) Overstatement of the Property and Equipment for
Distribution Inventory account due to non-reclassification
to ICT Equipment and Semi-Expendable-ICT Equipment
of various IT Equipment issued to ECCD Council
personnel totaling ₱87,513.21 and ₱28,164.54,
respectively; and
f) Error in recognition of airfare expenses amounting to
₱8,309.19.
6. Eulogio “Amang”   The financial statements of EARIST are misstated by P28.65
Rodriguez Institute of million, representing 2.65 percent of its total Assets of P1.08
Science and billion as at December 31, 2020, due to accounting
Technology (EARIST) errors/omissions and deficiencies in various accounts under the
Assets, Liabilities and Equity, as follows:

a) Understatement in Cash in Bank-LCSA due to unsupported

adjustments P3.67 million;
b) Overstatement in Other Receivable-Disallowances and
Charges due to non-recording of settlement of
disallowances P 0.71 million;
c) Understatement of Property, Plant and Equipment due to
error in recording of leased assets P22.50 million;
d) Understatement of Other Current Assets due to non-
recording of prepayments P1.32 million; and
e) Understatement of Accounts Payable due to error in
recording of unclaimed checks P0.45 million
7. Institute for Labor 
Studies (ILS)
8. Marikina Polytechnic 
College (MPC)
9. National Book 
Development Board
(NBDB)
10. National Conciliation 
and Mediation Board
(NCMB)
11. National Council for 
Children’s Television
(NCCT)
12. National Labor  A total misstatement of P12.41 million was found in the audit of
Relations Commission Cash and Cash Equivalents, Inventories, Property, Plant and
(NLRC) Equipment, and Liabilities accounts of the NLRC Central Office
(CO) and its Regional Arbitration Branches (RABs) due to
accounting errors and omissions which significantly affected the
fair presentation of its Financial Statements (FSs) as at December
31, 2020. Moreover, variances between accounting records and
supporting schedules/documents due to lack of reconciliation ,
existence of dormant account balances, non-
preparation/submission of supporting documents/schedules, and
unsubstantiated adjusting entries affected the reliability, accuracy
and completeness of the reported balances in Cash and Cash
Equivalents, Receivables, Inventories, Other Current Assets, PPEs
and Liabilities accounts, with deficiencies in the aggregate amount
of P2.79 billion.
13. National Museum   The financial statements (FSs) of the National Museum of the
(NM) Philippines (NMP) are misstated in the aggregate amount of

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AGENCIES
UM Q A D
P1.11 billion on account of errors, omissions and improper
accounting treatment of transactions that are considered as
departures from the International Public Sector Accounting
Standards (IPSAS), hence affecting the fair presentation of its
financial position as at December 31, 2020, and its financial
performance and cash flows for the year then ended. Below are
the details:

a) Understatement in CIB-LCCA of P63,899.38 due to

unrecorded book reconciling items and unaccounted
discrepancy;
b) Unrecorded receipt of airline tickets from DBM-PS
amounting to P0.71 million;
c) Recoupment of Advances to Contractors amounting to
P0.81 million was erroneously credited to Other Payables
account;
d) Misstatements on PPE: Works of Arts and Archaeological
Specimens, and Construction in Progress accounts totaling
P1.10 billion due to unrecorded donations and purchases,
erroneous recording of transactions and non-
reclassification of completed projects to proper PPE
accounts;
e) Misstatement in Liabilities account totaling P8.94 million
due to non-reversion of payables confirmed to have no
valid claimants and erroneous journal entry on the payment
of retention money; and
f) Erroneous recording of transactions amounting to
P49,433.20 in the Expenses account.
14. National Wages and 
Productivity
Commission (NWPC)
15. Overseas Workers 
Welfare
Administration
(OWWA)
16. Philippine Normal  The consolidated financial statements of PNU-System are
University (PNU) materially misstated by an aggregate amount of P134.94 million
due to accounting errors, omissions and improper accounting
treatment of transactions relative to the Receivables, Inventories,
Property, Plant and Equipment, Advances, Liabilities and
Expenses accounts, which were not adjusted in the books of PNU
during the audit period.
17. Philippine Overseas  As discussed in detail in Part II of the 2020 Annual Audit Report,
Employment a total of uncorrected misstatements amounting to P8.79 million
Administration was found in Receivables, Financial Liabilities, Inter-Agency
(POEA) Payables and Service Income accounts due to accounting errors
and omissions, thus the accuracy, completeness, classification,
existence and rights and obligations of said accounts cannot be
relied upon, thereby affecting the fair presentation of the financial
statements.
18. Philippine State   Total misstatements of P18.56 million in Cash in Bank – Local
College of Aeronautics Currency, Current Account (LCCA), Due from NGAs,
(PhilSCA) Inventories, Prepayments, Liabilities, and Expenses accounts
resulting from errors, omissions and improper accounting
treatment of transactions as of December 31, 2020 exceeded the
materiality threshold of P2.55 million, hence the accuracy,
completeness, cut-off and classification of the said accounts
could not be relied upon, thereby affecting the fair presentation
of the financial statements (FSs).
 Non-restatement of the material Prior Period Adjustments
(PPAs) in the CY 2020 FSs with a total amount of P 3.97 million
adversely affected the fair presentation of the comparative FSs,

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AGENCIES
UM Q A D
contrary to the provisions of the GAM for NGAs, Volume I and
the IPSAS.
 Unresolved variances and huge discrepancies between
PhilSCA’s Accounting records and their supporting
schedules/documents and unsubstantiated balances were noted
which affected the reliability of the Cash in Bank – LCCA and
Accounts Receivable accounts totaling P524.08 million as at
December 31, 2020, contrary to Section 6.e, Chapter 19 of the
GAM for NGAs, Volume I.
19. Polytechnic University   The Cash and Cash Equivalents account is misstated in the
of the Philippines amount of P3.94 million resulting from errors and omissions;
(PUP)  The valuation and accuracy of the Land account costing P9.84
million as of December 31, 2020 are unreliable due to:
a) unrecorded two parcels of land in Mulanay Branch acquired
through purchase;
b) nine parcels of land of eight Branches/Campuses acquired
through donations not measured at fair value determined
through appraisal as prescribed under Section 6.2.12 of
COA Circular No. 2020-006 dated January 31, 2020; and
c) undocumented transfer of assets from San Juan Campus;
and
 The accuracy, reliability and existence of the Property, Plant and
Equipment (PPE) reported at carrying amount of P1.30 billion
as of December 31, 2020 are doubtful due to:
a) unreconciled balance between book and lapsing schedule
of P841.27 million due to exclusion of fully depreciated
assets,
b) non-reclassification of completed projects costing P31.68
million from the Construction in Progress account to
School Buildings account and non-accrual of unbilled but
completed infrastructure projects estimated at P60.68
million, and
c) failure to substantiate the balances thereof with a reliable
and complete Report on the Physical Count of Property,
Plant and Equipment.
20. Professional  The financial statements of PRC are misstated by a total amount
Regulation of P306.35 million, which exceeded the materiality threshold of
Commission (PRC) P16.79 million or two percent of total Service and Business
Income of P839.76 million due to accounting errors/omissions
and deficiencies in various accounts under the Assets, Liabilities
and Expense Accounts.
21. Rizal Technological  The accounts Cash and Cash Equivalents, Receivables, Property,
University (RTU) Plant & Equipment and Payables contained misstatements due to
accounting errors and omissions of P6.77 million, P0.25 million,
P0.69 million and P10.41 million, respectively, thus affecting the
fair presentation of the financial statements of the University as at
December 31, 2020
22. Technical Education  Consolidated FS showed material misstatement of
and Skills ₱371,257,713.14 due to accounting errors and omissions that are
Development considered a departure from the IPSASs, and unaccounted
Authority (TESDA) discrepancies and other accounting deficiencies totaling
₱2,576,281,789.20 that affected the fair presentation of the year-
end financial statements but the overall effects are not considered
pervasive.
23. Technological  Total misstatements amounting to P149.51 million were found in
University of the Cash and Cash Equivalents, Receivables, Inventories, Property,
Philippines (TUP) Plant and Equipment, Other Assets and Liabilities accounts of the
System Technological University of the Philippines (TUP)-System due to
various accounting errors and omissions, thus affecting the fair
presentation of the financial statements (FSs) as at December 31,
2020
TOTAL 9 14 0 0

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Cluster 6 – Health and Sciences

1. Advanced Science  Overstatement of Office Supplies Inventory and Other Supplies
and Technology and Materials Inventory, Due to NGAs and Understatement of
Institute (ASTI) Accumulated Depreciation - PPE , Accumulated Amortization -
Computer Software and Accumulated Surplus/Deficit amounting
to P 1.01 million, P23.38 million, P 20.07 million, P 3.31 million,
P 1.01 million, respectively.
2. Council for the  The PPE accounts were misstated by P1.38 million or 1.19 percent
Welfare of Children of its total Assets, while Accumulated Surplus/(Deficit) accounts
(CWC) were misstated by P7.06 million or 6.55 percent of the total Net
Assets/Equity, as at December 31, 2020. Moreover, the Agency
has accounting deficiencies that affected the reliability and
accuracy of the balances of the accounts in the Financial
Statements as at December 31, 2020 totaling P77.98 million or
67.66 percent of its total Assets.
3. Department of Health   There were misstatements in Asset accounts amounting to P70.89
(DOH) billion which represents 26.97% of the total assets, while the
Liabilities and Net Assets/Equity accounts were misstated by
P944.04 million or 3.66% and P 70.17 billion or 29.60%,
respectively. Moreover, accounting deficiencies were noted in
Cash, Receivables, Inventory and PPE accounts totaling P95.14
billion representing 36.19% of the total assets, in Liability
accounts of P 3.23 billion or 12.51% of total liabilities and P33.39
billion or 14.08% of total equity.
4. Department of  The Agency’s Cash, Receivables, Inventories, PPE, Other Assets
Science and and Other Prepayments accounts have misstatements totaling
Technology (DOST) ₱341.57 million representing 2.12 percent of its total assets, while
Inter-agency Payables and Trust Liabilities have misstatements of
₱16.17 million or 1.56 percent of the total reported Liabilities, and
Accumulated Surplus/ (Deficit) account have misstatements of
₱281.39 million or 1.87 percent of the total equity of the Agency
as at 31 December 2020. Moreover, reported deficiencies totaling
₱1.15 billion also affected the Management assertions on the
accuracy and completeness of the said accounts. Due to the
significant impact of such misstatements and deficiencies, we
rendered a Qualified Opinion on the financial statements of the
DOST as at year-end.
5. Department of Social  A qualified opinion was rendered on the financial statements of
Welfare and the DSWD as at December 31, 2020 for the misstatements to the
Development (DSWD) total Assets and Net Assets/Equity by P1.25 billion and P1.20
billion, respectively, and Liabilities by P715.71 million which
represent 0.87 percent, 1.11 percent and 1.99 percent of its total
Assets, Liabilities and Net Assets/Equity, respectively. Moreover,
we noted deficiencies amounting to P5.46 billion in keeping of the
accounts affecting fair presentation of the assets and liabilities
accounts balances reported in the financial statements by P5.43
billion and P28.51 million, respectively.
6. Food and Nutrition 
Research Institute
(FNRI)
7. Industrial Technology 
Development Institute
(ITDI)
8. Inter-Country  The Accounts Payable was misstated by P0.25 million or 1.26
Adoption Board percent of the total liabilities and the Accumulated
(ICAB) Surplus/(Deficit) was misstated by P0.25 million or 1.30 percent
of the Net Assets/Equity as at December 31, 2020. In addition, the
accuracy, existence and reliability of Inventory and PPE accounts
are affected due to various accounting deficiencies totaling P21.14
million that were noted in the property and accounting records.
More so, discrepancies noted between the Financial Statements
(FSs) and Financial Accountability Reports totaling P2.78 million

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have also created an impact on the fairness of presentation of the
balances of the affected accounts in the FSs.
9. Juvenile Justice and  The Cash, Due from NGAs and PPE accounts were misstated by
Welfare Council P28.92 million or 35.74 percent of the total Assets, and the
(JJWC) Accounts Payable and Accumulated Surplus/(Deficit) accounts
were misstated by P1.28 million or 11.94 percent and P27.78
million or 39.59 percent of its total Liabilities and Equity,
respectively, as at December 31, 2020.
10. Metal Industry  There were misstatements of P2.19 million and P1.77 million
Research Development which represent 0.19% and 0.27% of its total assets and equity,
Center (MIRDC) respectively, and with total deficiencies of P265.04 million or
23.32 % of its total assets as at year-end.
11. National Academy  There were misstatements of P1.31 million and P1.25 million
of Science and which represent 2% and 42% of its total assets and equity,
Technology (NAST) respectively, and with total deficiencies of P 48.42 million or
65.33 percent of its total liabilities as at year-end.
12. National Council on  The Cash, Accounts Receivable, Supplies Inventory and PPE
Disability Affairs accounts were misstated by P0.32 million or 0.90 percent of its
(NCDA) total Assets, while Accounts Payable and Accumulated
Surplus/(Deficit) accounts were misstated by P33,163.12 or 1.61
percent and P0.25 million or 0.74 percent of the total Liabilities
and Equity, respectively, as at December 31, 2020. Moreover, the
Agency has accounting deficiencies totaling P14.68 million or
41.25 percent of its total Assets that affected the reliability and
accuracy of the balances of the accounts that have impact on the
fairness of presentation in the Financial Statements as at December
31, 2020.
13. National Nutrition  The Cash and Inventory accounts were misstated by P 2.68 million
Council (NNC) or 0.28 percent of its total Assets, while the Accounts Payable and
Accumulated Surplus/(Deficit) accounts were misstated by P0.02
million or 0.03 percent and P2.66 million or 0.30 percent of the
total Liabilities and Equity, respectively, as at December 31, 2020.
Moreover, the Agency has accounting deficiencies totaling P
625.34 million or 64.52 percent of its total Assets that affected the
reliability and accuracy of the balances of the accounts that have
impact on the fairness of presentation in the Financial Statements
as at December 31, 2020.
14. National Privacy  There were total misstatements in the Due from NGAs, Office
Commission (NPC) Supplies Inventory, and Furniture and Fixtures accounts
amounting to P1.74 million which represented 2.58 percent of total
assets and in the Accumulated Surplus/(Deficit) account in the
amount of P0.65 million which represented 1.19 percent of the
total net assets/equity of NPC as at December 31, 2020.
15. National Research  The Due from National Government Agencies (NGAs), Due from
Council of the Non-Government Organizations/Peoples Organizations
Philippines (NRCP) (NGOs/NGOs/POs), Other Receivables, Building and
Construction in Progress – Building accounts were misstated by
P114.90 million which represents 54.68 percent of its total assets
as at December 31, 2020, while Net Assets/Equity was misstated
by P4.23 million or 3.18 percent of its total amount as at December
31, 2020.
16. National  Various accounts of the NTC have misstatements resulting in
Telecommunications aggregate errors of the reported total Assets, Liabilities and Net
Commission (NTC) Assets/Equity by P70.79 million, P52,677.95 and P 65.60 million
which represent 1.76 percent, 0.13 percent and 1.64 percent of its
total Assets, Liabilities and Net Assets/Equity, respectively.
Moreover, due to the significant impact of the reported
deficiencies on the balances of the affected accounts,
Management’s assertions on the accuracy and completeness of the
said accounts could not be relied upon.
17. Philippine  The PAGASA's Cash, Inventories, Property, Plant and Equipment
Atmospheric (PPE), and Other Assets accounts have misstatements totaling
P61.63 million or 1.04 percent of its total assets; while Financial

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UM Q A D
Geophysical Liabilities, Inter-Agency Payables, Trust Liabilities and Other
Astronomical Services Payables accounts have misstatements of P10.44 million or 2.82
Administration percent of its total reported Liabilities; and Net Assets/Equity have
(PAGASA) misstatements of P43.34 million or 0.78 percent of its total amount
as at December 31, 2020; thus, resulting in the
over/understatement of the accounts affected. Due to the
significant impact of such misstatements on the reported balances
of the affected accounts, Management’s assertions as to the
accuracy, existence, classification and completeness as well as
rights and obligations of the said accounts could not be relied
upon.
18. Philippine Council  There were misstatements of P16.59 million and P21.06 million
for Health Research which represent 0.84 percent and 1.88 percent of the agency’s total
and Development assets and equity, respectively, and with total deficiencies of
(PCHRD) P410.60 million or 48.59 percent of its total liabilities, as at year
end.
19. Philippine Council  The asset, liability and equity accounts of the Philippine Council
for Industry and for Industry, Energy and Emerging Technology Research and
Energy and Emerging Development (PCIEERD) had misstatements totaling P789.05
Research Development million, P75.06 million, and P90.30 million, respectively, which
(PCIEERD) represents 27.34 percent, 16.66 percent, and 3.71 percent of its
total assets, liabilities and equity, respectively. Due to the
significant impact of such misstatements on the reported balances
of the affected accounts, Management’s assertions as to the
accuracy, existence, completeness, rights and obligations, cut-off
and understandability of the said accounts could not be relied
upon.
20. Philippine Institute  The Agency’s Cash, Receivables, Inventories, Property, Plant and
of Volcanology and Equipment (PPE) and Other Assets accounts have misstatements
Seismology amounting to P144.23 million representing 11.10 percent of its
(PHIVOLCS) total assets, while Financial Liabilities, Trust Liabilities and Other
Payables accounts have misstatements of P1.13 million or 1.44
percent of the total reported liabilities, and Net Assets/Equity
account has misstatements of P8.63 million or 0.71 percent of the
total equity as at December 31, 2020, resulting in
overstatements/understatements of the affected accounts.
21. Philippine Nuclear  Due to the significant impact on the financial statements of the
Research Institute total misstatements of various accounts of the PNRI under the
(PNRI) Assets, Liabilities and Net Asset accounts by P 191.72 million,
P126.45 million, and P13.11 million, respectively, representing
13.43 percent of its total assets, 16.57 percent of its Liabilities, and
1.97 percent of its Equity
22. Philippine Science  There were misstatements of P179.29 million, P27.26 million and
High School System P40.70 million, which represents 2.49%, 9.35% and 0.59% of its
(PSHSS) total assets, liabilities and equity, respectively, and with
deficiencies in the asset accounts totaling P127.00 million and in
liabilities accounts of P3.18 million as at year end.
23. Philippine Textile  A Qualified Opinion was rendered on the financial statements of
Research Institute the PTRI as at December 31, 2020 for the misstatements
(PTRI) amounting to P7.82 million representing 2.84 percent of the total
assets and P69,637.50, representing 0.05 percent of the net
assets/equity of the Institute at year-end.
24. Science and  A Qualified opinion was rendered on the financial statements of
Technology the STII as of December 31, 2020 for the material misstatements
Information Institute amounting to P1.52 million, representing 2.85 percent of the total
(STII) assets and P0.83 million, representing 2 percent of the net
assets/equity of the Institute
25. Science Education  The Science Education Institute’s (SEI’s) Cash, Receivables,
Institute (SEI) Property, Plant and Equipment, and Other Asset accounts have
misstatements totaling P42.41 million representing 0.46 percent of
its total assets, while Accounts Payable account had misstatements
of P1.03 million or 0.98 percent of the total reported liabilities and
Accumulated Surplus/ (Deficit) account had misstatements of

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P15.24 million or 0.17 percent of the total equity of the Institute
as at December 31, 2020, resulting in
overstatements/understatements of the affected accounts. Due to
the significant impact of such misstatements on the reported
balances of the affected accounts, Management assertions as to the
accuracy, completeness and classification of the said accounts
could not be relied upon, hence, rendered a qualified opinion on
the Institute's financial statements
26. Technology  The significant impact on the financial statements of the total
Application Promotion misstatements of P20.76 million and P 47.55 million which
Institute (TAPI) represent 7.07% and 7.69% of its total liabilities and equity,
respectively, and with total deficiencies of P 172.91 million or
18.96% of its total assets, we rendered a Qualified Opinion on the
financial statements of the TAPI as at year-end.
TOTAL 2 23 1 0
Note: A Consolidated Management Letter was prepared in lieu of CAAR for the audit of the Department of Information
and Communications Technology due to the non-submission by Management of the CY 2020 Financial Statements,
hence, no audit opinion was rendered.
Cluster 7 – Public Works, Transport and Energy
1. Civil Aeronautics 
Board (CAB)
2. Department of Energy 
(DOE)
3. Department of Public   The aggregate misstatements of P21.86 billion due to the
Works and Highways following accounting errors and omissions affected the fair
(DPWH) presentation of the DPWH’s Financial Statements as of
December 31, 2020:

a) Net overstatement of Cash and Cash equivalent amounting

to P152.64 million due to unrecorded interest earned for 4th
quarter of CY 2020, tax withheld on interest earned, direct
payment through designated account and unreleased of
guaranty deposits for restorations, non-reversion of excess
collections from sale of bid documents, and inclusion of
non-existent cash balance (no cash backed-up);
b) Net understatement of Receivables due to unrecorded
disallowances amounting to P1.06 million;
c) Net overstatement of Property, Plant and Equipment (PPE)
amounting to P20.14 billion due to: (i) unrecorded PPE, (ii)
non-derecognition of completed projects that were
physically transferred and already in the possession of the
end-users/recipient agencies, (iii) completed infrastructure
projects of DPWH OSEC, not yet transferred or turned-
over to the recipient agencies and/or end-users; (iv)
erroneous/Non-provision of depreciation, (v) major repair
and improvements of infrastructure assets and buildings not
capitalized, (vi) expenses charged against Engineering and
Administrative Overhead (EAO) erroneously recorded to
CIP-Infrastructure Asset account, (vii) Misclassification of
semi-expendable equipment as PPE; (viii) double recording
of PPE accounts, and (ix) other errors and omissions in
recording PPEs;
d) Understatement of Accounts Payable amounting to P1.57
billion due to (i) non-reversion of long outstanding
Accounts Payable and (ii) various errors and omissions in
recording transactions; and
e) Understatement of Due to GSIS amounting to P0.36
million.
4. Department of 
Tourism (DOT)
5. Department of   Enumerated below are the errors and misstatements in the
Transportation (DOTr) consolidated financial statements of the DOTr and departures
from applicable IPSASs:

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UM Q A D
a) The Cash and Cash Equivalents account was misstated by
P19.52 million as at year-end due to unrecorded collections
from online payment transactions and proceeds from the
auction of impounded motor vehicles, undeposited
collections and uncorrected prior year’s errors.
b) The Receivable account was misstated by P242.89 million
due to (i) unrecorded liquidations/ adjustments of various
Implementing Agencies corresponding to a net
overstatement on the account by P2.34 billion; (ii) improper
recording of liquidations with Property, Plant and
Equipment (PPE) component, thereby understating the
account by P2.18 billion; (iii) erroneous classification of
claims against relieved/dismissed Collecting Officers
which understated the account by P4.13 million; and (iv)
non-recognition of impairment for impaired receivables,
thus overstating the account by P92.18 million.
c) The Inventory account was misstated by P424.37 million
due to (i) non-derecognition of obsolete inventories and
damaged/rejected inventory items resulting to the
overstatement of the account by P18.03 million; (ii)
inconsistent accounting treatment of Radio-Frequency
Identification (RFID), thereby understating the account by
P8.15 million; and (iii) recording errors (unrecorded
receipts, issuances, double recording and erroneous
costing) which overstated the account by P414.49 million.
These are departures from IPSAS 12.
d) The sub-accounts under the Deposits account were
misstated by P498.98 million due to improper recording to
the Guaranty Deposit account of deposits to different
Regional Trial Courts (RTCs) in favor of the landowners of
affected properties in connection with the implementation
of the Metro Manila Subway Project (MMSP) Phase 1
project instead of Other Deposits account.
e) The PPE account was misstated by P10.44 billion due to (i)
completed projects not yet transferred to entities having
control over the assets, thereby overstating the account by
P10.42 billion; (ii) unrecorded intra-agency transfers which
understated the account by P82.95 million; (iii) erroneous
recording of transactions resulting to overstatement of
Construction in Progress (CIP) account by P78.88 million;
(iv) non-recognition of impairment losses on unserviceable
PPE, thus overstating the account by P22.45 million; and
(v) non-reclassification of completed projects to
appropriate PPE accounts. The noted deficiencies are
departures from IPSAS 17.
f) The Accounts Payable account was misstated by P2.84
million due to (i) unrecorded purchases already delivered
and services rendered as at year-end, thereby understating
the account by P4.42 million; and (ii) recognition of
liability without sufficient and appropriate documentation
which has been outstanding for more than two years
resulting to the overstatement of the account by P1.59
million.
g) Various Expense accounts were misstated by P2.35 billion
due to net overstatement on Financial Assistance/Subsidy
to NGAs, LGUs, GOCCs of P1.21 billion caused by (i)
improper recording of liquidations of fund transfers which
understated the said account by P14.63 million, and (ii)
erroneous use of Assistance to Other National Government
Agencies account to record transfers of completed projects
made to Civil Aviation Authority of the Philippines
(CAAP), which overstated the same account by P1.19

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billion; net understatement on Maintenance and Other
Operating Expenses by P1.07 billion caused by (i)
erroneous recording of recoupment of advance payment for
the procurement of supervision consultant for the MRT
Line 3 Rehabilitation Project which overstated the account
by P5.09 million, and (ii) non-compliance with accrual
basis of accounting which understated the account by P1.07
billion; and understatement on Non-cash Expenses by
P78.77 million caused by erroneous computation of
Depreciation Expenses.
6. Intramuros 
Administration (IA)
7. Maritime Industry   The aggregate misstatements of P55.99 million due to the
Authority (MARINA) following accounting errors and omissions affected the fair
presentation of the financial statements of MARINA as of
December 31, 2020:

a) Unrecorded disallowances with Notice of Finality of

Decision and COA Order of Execution of P0.79 million;
b) Unrecorded issuances of non-accountable forms and semi-
expendable item and related expense accounts of P2.66
million;
c) Non-reclassification of the completed MARINA Regional
Office No. V Building to the Building and Other Structures
account of P50.46 million; and
d) Erroneous recording of payment; recognition of obligations
with lacking supporting documents; and non-recording of
unpaid obligations for CY 2020 of P2.07 million.
8. National Parks and 
Development
Committee (NPDC)
9. Office for 
Transportation
Security (OTS)
10. Office of 
Transportation
Cooperatives (OTC)
11. Philippine Coast Guard   The aggregate misstatements of P129.49 million due to the
(PCG) following accounting errors and omissions affected the fair
presentation of the PCG’s Financial Statements as of December
31, 2020:

a) Non-recognition of donated motor vehicles of P13.52

million;
b) Erroneous account classifications affecting Property, Plant
and Equipment accounts of P111.61 million;
c) Non-provision of depreciation on motor vehicles and
seaport systems of (P4.45 million); and
d) Erroneous accounting treatment of the payment of
subsistence allowance of P 8.82 million.
12. Toll Regulatory Board 
(TRB)
TOTAL 8 4 0 0
Note: ML was issued to Metropolitan Manila Development Authority and Energy Regulatory Commission due to non-
submission to the Audit Team of the year-end financial statements.
Cluster 8 – Agriculture and Environment
1. Agricultural Credit 
Policy Council
(ACPC)
2. Board of Investments 
(BOI)

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3. Department of  Due to errors/omissions amounting to P2,087.41 million which
Agriculture (DA) exceeded the materiality level of P360.58 million
4. Department of  Various accounting deficiencies such as non-maintenance of
Environment and Subsidiary Ledgers and lack of complete accounting records on
Natural Resources various FS accounts with an aggregate amount of P13,310.88
(DENR) million, which prevented alternative audit procedures to be
undertaken to obtain sufficient and appropriate evidence to prove
the management’s assertions on the accounts, where the possible
effect could be material and pervasive.
5. Design Center of the 
Philippines (DCP)
6. Fertilizer and Pesticide  A qualified opinion was rendered on the CY 2020 financial
Authority (FPA) statements of FPA due to various accounting deficiencies with an
aggregate amount of P998.30 million which exceeded the
materiality level of P3.28 million and unadjusted accounting
errors/omissions amounting to P3.51 million.
7. Intellectual Property 
Office of the
Philippines (IPOPHL)
8. Mines and Geoscience  A qualified opinion was rendered on the financial statements due
Bureau (MGB) to various accounting deficiencies such as absence of subsidiary
ledgers and lack of complete accounting records on various PPE
accounts involving an aggregate amount of ₱68.810 million which
prevented alternative audit procedures to be undertaken to obtain
sufficient and appropriate evidence relating to various assertions
on the accounts.
9. National Fisheries  
Research and
Development Institute
(NFRDI)
10. National Mapping and  An opinion on the FS was not expressed due to various accounting
Resource Information deficiencies such as non-maintenance of Subsidiary Ledgers and
Authority (NAMRIA) lack of complete accounting records on various accounts with an
aggregate amount of P678.49 million, which prevented alternative
audit procedures to be undertaken to obtain sufficient and
appropriate evidence relating to various assertions on the accounts.
11. National Meat 
Inspection Service
(NMIS)

12. National Water 

Resources Board
(NWRB)
13. Philippine Council for 
Agriculture and
Fisheries (PCAF)

14. Philippine Trade 

Training Center
(PTTC)
TOTAL 9 3 0 2
Note: ML was issued to: (a) Bureau of Fisheries and Aquatic Resources; (b) Philippine Fiber Industry Development
Authority; (c) Environmental Management Bureau; (d) Department of Agrarian Reform; (e) Department of Trade and
Industry; and (f) Construction Industry Authority of the Philippines due to non-submission of Financial Statements
within the deadline set.
STATE UNIVERSITIES AND COLLEGES (SUCs) AND STAND-ALONE AGENCIES
CORDILLERA AUTONOMOUS REGION (CAR)
1. Abra State Institute of   Cash and Cash Equivalents account was understated by P33.32
Sciences and million due to non-maintenance of subsidiary records and non-
Technology (ASIST) reconciliation of the books with the bank statements and the
cashier's records, thus, adjustments were not undertaken.

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UM Q A D
 The Accounts Receivable and Loan Receivable accounts
totaling P13.67 million, aged 1 to over 3 years, were unreliable
due to the absence of subsidiary records and other reports to
show the details/breakdowns of the accounts.
 Property Plant and Equipment (PPE) accounts aggregating
P819.97 million as of December 31, 2020 was unreliable due to:
a) non-maintenance of PPELC, SLs and PCs resulting in
unreconciled PPE account balances between RPCCE and
accounting records amounting to P130.63 million;
b) non-reclassification of semi-expendable property accounts
of P0.51 million; and
c) unserviceable properties amounting to P5.48 million that
are still carried in the PPE accounts.
 The total advances were overstated by P0.13 million due to
various accounting errors and omissions in the recording of
liquidations; thus, affecting the fair presentation of the account
in the financial statements as of year-end.
 Delivered goods and services in CY 2019 were booked up only
in CY 2020; resulting in the overstatement of the expense
accounts by P 0.78 million.
2. Apayao State College 
(ASC)
3. Benguet State   The accuracy of the PPE and Inventory account balances
University (BSU) presented in the Statement of Financial Position as of December
31, 2020 with net book value of P6.73 billion and P21.36
million, respectively, is unreliable/doubtful due to partial and
incomplete inventory taking and non-reconciliation with
accounting records.
 The ownership of the recorded land assets of the University
totaling P2.69 billion is not clearly established due to unresolved
land disputes and illegal occupancy by private claimants; hence,
the reliability of the account balance at year-end is doubtful.
 Operating lease receivables in the amount of P13.90 million
were not recorded in the books of the University understating
the account and corresponding income account in the financial
statements. Likewise, lapses in the monitoring/renewal/issuance
of MOAs or contracts which are bases of preparation of bills
affected the reliability of the operating lease receivables account
balances and the collectability of rental dues for lack of lease
agreements to enforce it.
 Transaction documents establishing the University's contractual
right to enforce payment have not been established; thus, the
validity of the recorded receivables amounting to P11.10 million
is doubtful.
 Four (4) motor vehicles procured by the Provincial Local
Government Unit (PLGU) of Benguet turned over to BSU-
BAPTC valued at P7.32 million were not recorded in the books
of the University contrary to the pertinent provisions of the
Government Accounting Manual (GAM). As a result, total
assets were understated by the same amount.
 Cash advances in the aggregate amount of P1.51 million,
remained unliquidated for more than five (5) to twenty-two (22)
years due to non-submission of liquidation reports by former
BSU Accountable Officers (AOs). As a result, the non-
movement of the accounts for several years adversely affected
the validity of the account balances presented in the financial
statements as of year-end and the certainty of settlement
becomes doubtful.
 The "Due from NGAs" — PS DBM account balance of is not
accurate due to unreconciled balances with the PS records such
as undelivered supplies and materials amounting to P0.23

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AGENCIES
UM Q A D
4. Ifugao State University
(IFSU)
5. Kalinga State University 
(KSU)
6. Mountain Province
State Polytechnic
College (MPSPC)
TOTAL 2 4
REGION I - ILOCOS REGION
1. Don Mariano Marcos
Memorial State
University (DMMMSU)
AUDIT
REASONS FOR MODIFIED OPINION
million and PS booked airline tickets worth P0.30 million but
treated as direct expense by the University
  The balance of the Cash In Bank-Local Currency, Current
Account (CIB-LCCA) as of yearend amounting to P129.36
million was understated by P18.29 million due to unrecorded
deposits, disbursements, credit and debit memos and
cancelled/stale checks, erroneous adjusting entries and
misstated amounts, among others, which also understated the
Trust Liabilities account by P15.28 million;
 Property, Plant and Equipment (PPE) accounts listed in the
Financial Statements at a total cost of P872.21 million
(excluding Construction in Progress) were not adequately
supported by the Report on the Physical Count of PPE
(RPCPPE) and other property records, such that no
reconciliation of balances was made, including the variance of
P565.72 million between the previous year’s financial
statements and RPCPPE;
 A parcel of land was recorded under the Land account even
without clear ownership rights and without proper disclosure in
the Notes to FS; thus, the Land account was overstated by P1.88
million;
 A total of 1,067 disbursement vouchers issued and recorded
during the year were not verified due to non-submission to
COA; thereby, affecting the propriety and validity of the
transactions and the accuracy of the recorded account balances
in the financial statements in the aggregate amounts of P9.32
million, P42.56 million and P37.99 million under the Assets
(excluding Cash), Liabilities, and Expenses accounts,
respectively; and
 Undocumented past due Accounts Payable (AP) and Due to
Officers and Employees amounting to P0.35 million and
₱13,014.82, respectively, remained in the IGP books, affecting
the reliability of the account balances.
  Several of the Agency's Property, Plant and Equipment (PPE)
accounts are not adequately supported by their respective
Property, Plant and Equipment Ledger Cards (PPELCs)
resulting in a variance of P12.98 million when compared against
the General Ledger balances.
0 0
  Understatement of the following accounts (1) Accounts Payable
- P60.41 million (2) Construction in Progress – (CIP) Buildings
and Other Structures - P58.44 million and (3) Other Machinery
and Equipment – P1.97 million due to non-recognition in the
books of accounts Due and Demandable Accounts Payable.
 Receivable – Disallowance/Charges is understated by P10.43
million caused by non-recognition of final and executory
disallowances amounting to P10.43 million.
 Non-recognition of Bank Credit Memoranda totaling P4.70
million resulting in understatement of Cash in Bank balance.
 Unreliability of the P62.51 million balance of Depreciation
Expense on account of non-uniform application of accounting
policy on estimated useful life of similar items in the Property,
Plant and Equipment (PPE) and the non-provision of
Depreciation Expense on completed projects erroneously
accounted under CIP account amounting to P247.23 million.
 Delayed/Non-submission of Disbursement Vouchers (DVs) and
related supporting documents of paid expenditures recorded in
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OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
the books of accounts of DMMMSU for Calendar Year 2020
amounting to P31.49 million.
2. Ilocos Sur Polytechnic 
State Colleges (ISPSC)
3. Mariano Marcos State 
University (MMSU)
4. North Luzon Philippine 
State College (NLPSC)
5. Pangasinan State 
University (PSU)
6. University of Northern 
Philippines (UNP) -
Vigan, Ilocos Sur
TOTAL 5 1 0 0
Note: DMMMSU – PERF Accounts and financial reports were not incorporated in the Annual Audit Report of the
University by virtue of BOR Resolution No. 1212-116
REGION II - CAGAYAN VALLEY REGION
1. Batanes State College   The accuracy, reliability, and accountability of the Property,
(BSC) Plant, and Equipment Account with a net book value of P82.57
million or 84% of the total assets is doubtful due to:
a) significant discrepancies in the reported PPE balances in
the Financial Statements compared with the Report on
Physical Count of Property, Plant and Equipment;
b) unverified increases for CY 2020;
c) unestablished accountability and control over the PPEs; and
d) not updated Property Cards and PPE Ledger Cards.
Moreover, the accuracy of the Cash in Bank, Local
Currency Current Account and Cash–MDS, Special
Account totaling P19.30 million or 11.98% of the Total
Assets is doubtful due to a total discrepancy of P2.47
million noted between the Financial Statements and the
credit balances provided by the Landbank of the
Philippines, Basco Branch, Batanes. Discrepancies totaling
P27.51 million were noted in the Statement of Cash Flows
(SCF) particularly on the Collection of Service and
Business Income, increases in PPE and Construction in
Progress, vis-à-vis Financial Performance and Position of
the College, thereby affecting the reliability of the related
accounts. Likewise, the reported balance of Cash and Cash
Equivalents Account in the SCF and Financial Position
could not be ascertained due to noted discrepancy of P5.63
million. Lastly, the accuracy and validity of Payable
Accounts totaling P 42.69 million could not be ascertained
due to non-availability of General/Subsidiary Ledger for
verification.
2. Cagayan State 
University (CSU)
3. Isabela State 
University (ISU)
4. Nueva Vizcaya State 
University (NVSU)
5. Quirino State   We rendered a modified opinion on the fairness of presentation
University (QSU) of the financial statements of Quirino State University for the
year ended December 31, 2020 due to the following deficiencies
noted:
a) Non-reconciliation of the cost balances of Property, Plant
and Equipment with the Report on the Physical Count of
Property, Plant and Equipment (RPCPPE), with a
discrepancy amounting P363.06 million;
b) Overstatement of Construction in Progress (CIP) by
P263.57 million due to Management’s non-reclassification
of completed projects to the corresponding asset accounts,

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TOTAL 3 2
REGION III - CENTRAL LUZON
1. Aurora State College of 
Technology (ASCoT)
2. Bataan Peninsula State   On the Property, Plant and Equipment account balance of P1.54
University
3. Bulacan Agricultural 
State College (BASC)
4. Bulacan State   Understatement by P262.04 million of the Cash in Bank, Local
University (BulSU)
REASONS FOR MODIFIED OPINION
resulting in non-recognition of their corresponding
previous and current year’s depreciation expenses;
c) Non-provision of Depreciation Expenses on related
depreciable assets, thereby, overstating the Property, Plant
and Equipment (PPE) account, with total cost of P117.52
million, and understating the expenses of the University;
d) Incorrect recognition of Accounts Payable and other related
accounts for obligations amounting to P10.95 million and
P14.59 million pertaining to undelivered goods/unfinished
infrastructure projects and unsubstantiated with
documentary evidences;
e) Due to National Government Agencies (NGAs) account
amounting to P3.66 million cannot be ascertained and
remained unliquidated because of non-preparation of
Subsidiary Ledgers or other compensating organized
records supporting thereof; and
f) Non-submission of transaction vouchers amounting to
P7.59 million which precluded the Audit Team to validate
their veracity and propriety.
0 0
billion – (i) unreconciled discrepancy of P228.04 million
between the accounting records and Report on the Physical
Count of Property, Plant and Equipment (RPCPPE); (ii)
unrecorded deliveries of PPE totaling to P0.57 million; (iii)
inclusion of unserviceable, defective, and undisposed properties
both in the books and in the RPCPPE aggregating to P2.45
million; and (iv) unreconciled discrepancy of P 66.61 million
between the accounting records and Report on
Projects/Programs/Activities (RPPAs);
 On the Due to National Government Agencies (NGAs) account
balance of P99.92 million– (i) unreconciled discrepancy of
P6.82 million between the accounting records and status report
of externally funded projects; (ii) undetermined status of
scholarship funds released aggregating to P6.12 million; (iii)
existence of unsubstantiated accounts totaling to P0.39 million;
(iv) erroneous recording of fund transfer amounting to P4.24
million to the Retained Income Fund (RIF); and (v) non-
maintenance of subsidiary records on fund transfers in the sum
of P38.00 million.
 Overstatement of Cash account by P 0.54 million due too
unadjusted stale and cancelled checks, P0.12 million, and
erroneous recording of outstanding check, P0.66 million;
 Doubtful Biological Asset account with a balance of P1.12
million due to overstated 70 heads reported in the inventory of
breeder stocks and non-recognition of other livestock,
P62,160.00;
 Unreconciled difference of Inventories account by P0.70 million
between accounting and property records etc., incomplete
inventory; and
 PPE account overstated by P1.91 million representing semi
expendable items with unit value below capitalization threshold
of P15,000; Unrecorded parcel of land with area pf 5,341,901
sq. m; non-derecognition of unserviceable PPEs aggregating to
P0.40 million.
Currency Current Account (LCCA) due to
unrecorded/unadjusted valid reconciling items in the Bank
Reconciliation Statements (BRS); and
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 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
 doubtful existence, reliability and accuracy end balances of the
PPE accounts due to (i) unreconciled differences of P328.62
million between the accounting and property records;
 incomplete physical inventory-taking of PPEs;
 non-recognition of various donated properties for failure to
determine the proper valuation; and
 unaccounted/missing PPEs in the amount of P8.15 million.

5. Central Luzon State   The carrying amounts of Property, Plant and Equipment (PPE)
University (CLSU) accounts aggregating to P1.57 billion as of December 31, 2020
were unreliable due to (a) incomplete conduct of inventory-
taking of PPE with only 16.25% actually counted; (b)
unresolved variance amounting to P87.56 million in the
balances between the books and inventory report; and (c)
inclusion of unserviceable items under the PPE totaling to P5.83
million which were not reported to the Accounting Office thru
the Inventory and Inspection Report of Unserviceable Property
(IIRUP) as basis for the derecognition thereof;
 The reported balance of Biological Assets of P11.17 million as
at year-end was misstated due to (a) non-recognition of 2,890
units of matured fruit-bearing mango trees estimated at P15.65
million; (b) non-derecognition in the books of the costs of lost
thru death and sold goats, sheep and swine totaling to P1.97
million; (c) misclassification of the laying hens under the
Poultry Module Program costing P0.72 million to the
Inventories account instead of Biological Assets; (d) non-
recognition of purchases of additional hens as well as sales and
deaths resulting in the net overstatement of assets by P0.25
million; and (e) non-adjustment of the account for the reduced
fair values of the remaining 37 heads of imported sheep totaling
to P1.48 million; and
 Accounting errors in the recording of fund transfers to the Due
to NGAs account such as (a) non-recognition of the return of
funds to source agencies and non-adjustment of erroneous
ledger balances of completed and ongoing research projects
resulting to an overstatement of P3.81 million; and (b) doubtful
accuracy of the balances of 168 projects with an aggregate
amount of P352.81 million due to discrepancies between the
accounting records and the summary of expenditures for each
project and lack of supporting documents.
6. Don Honorio Ventura 
Technological State
University (DHVTSU)
7. Government Arsenal   Unreconciled difference of P579.13 million in the Inventory
(GA, DND) account balance between the General Ledger (GL) and the
inventory report;
 non-derecognition of semi-expendable property already issued
amounting to P90,197.31;
 unreconciled discrepancy of P30.19 million between the
General Ledger (GL) Controlling Account for Property, Plant
and Equipment and the Report on the Physical Count of PPE
(RPCPPE);
 inclusion to the PPE account of semi-expendable items of P1.73
million;
 non-derecognition of disposed unserviceable properties
amounting to P0.20 million erroneously recorded as Other
Assets instead of PPE; and
 non-recognition as PPE of overhead tank and accumulated
major repairs on structures amounting to P5.55 million and
P1.28 million, respectively.

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 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
8. Nueva Ecija University   The following audit observations affected the fair presentation
of Science and of the financial statements of the Nueva Ecija University of
Technology (NEUST) Science and Technology as at year-end:
a) continued failure of the University to conduct physical
inventory-taking of all properties;
b) non-reconciliation of the discrepancy of P 0.85 million
between the records of the Accounting Division and those
of the Supply/Property Unit;
c) non-maintenance of complete subsidiary records such as
Property Cards (PCs), PPE Ledger Cards (PPELCs) and
properly accomplished and updated Property
Acknowledgement Receipts (PARs);
d) erroneous classification to PPE accounts of semi-
expendable items;
e) inclusion as PPE of unserviceable property costing P15.90
million, overstating the PPE accounts and the related
Accumulated Depreciation by P15.90 million and P15.11
million, respectively, while overstating Equity (Impairment
Loss-PPE) by P0.80 million;
f) non-maintenance of complete and updated Stock Ledger
Cards (SLCs) contrary to the Perpetual Inventory Method;
g) recorded issuances of supplies/materials amounting to
P20.30 million without proper documentation; and
h) absence of Report of Supplies and Materials Issued (RSMI)
to substantiate the consumption/issuances for every
accounting period, thus, rendering doubt on the accuracy
and reliability of the year-end inventory account balances
totaling to P25.72 million as at year-end.
9. Pampanga State   The following audit observations affected the fair presentation
Agricultural University of the accounts in the Financial Statements:
(PSAU) a) The non-reversion of unreleased commercial checks back
to the Cash in Bank account as at year-end amounting to
P1.44 million resulted in the understatement of both Cash
in Bank and Accounts Payable accounts by P1.44 million;
b) The non-recognition of book reconciling items in the Bank
Reconciliation Statements (BRS) with a net positive
amount of P19.21 million resulted in the understatement of
both Cash in Bank and Accumulated Surplus accounts by
P19.21 million;
c) The existence of negative balances on the subsidiary
accounts of Other Payables aggregating to P3.99 million
resulted in the reduction on the reported amount of Other
Payables;
d) The non-elimination of intra-agency payables (Due to
Other Funds) amounting to P14.35 million overstated the
Other Payables account;
e) The erroneous recognition of the inter-agency remittances
totaling to P2.64 million as expense instead of deduction
from the Inter-Agency Payables account;
f) The non-adjustment of taxes withheld on checks
aggregating to P0.24 million that were still unreleased as of
year-end resulted in the overstatement of the Due to Bureau
of Internal Revenue (BIR) account;
g) The lack of supporting details on the P2.18 million balance
of the inter-agency payables accounts raised doubts on the
validity of the reported balance of the Inter-Agency
Payables account; and
h) The recorded Impairment Loss totaling to P21.73 million
that was determined and recognized in lump without any
evidences of a systematic assessment and measurement of
impairment of the University’s non-cash-generating assets
resulted in the understatement of the reported amounts of

229
 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
Property, Plant and Equipment (PPE) and Accumulated
Surplus accounts by P21.73 million.
10. Philippine Carabao   Various accounting errors and omissions remained
Center (PCC) unadjusted/uncorrected as at year-end, thus, affecting the
fairness of presentation of the different accounts in the financial
statements such as:
a) unrecorded and unadjusted reconciling items by the
Philippine Carabao Center at Visayas State University
(PCC at VSU), understating the Cash account by P9.19
million;
b) unreconciled variance of P0.41 million between the Bank’s
and Agency’s records as reported by the Central Mindanao
University (CMU);
c) error in the valuation and recognition of losses of animals
thru death, understating Other Receivables by P79.54
million; and
d) overstatement of the recorded Property, Plant and
Equipment by P11.78 million.
11. Philippine Center for   Accounting errors and lapses amounting to P208.95 million
Postharvest affected the fairness of presentation of the Property, Plant and
Development and Equipment accounts in the financial statements, itemized as
Mechanization follows:
(Philmech) a) non-derecognition of 267 units of farm machineries costing
P208.67 million already distributed to farmers’
cooperatives & associations;
b) recorded PPE items totaling to P0.72 million acquired
through grants-in-aid funds not covered by deeds of
donation; and
c) reduction of PPE account balances by P0.44 million as a
consequence of negative balances in some PPE items. In
addition, Accounts Payable and Accumulated Surplus
(Deficit) were misstated by P96.82 million corresponding
to payables recognized for procured items and services not
yet delivered or rendered as of December 31, 2020.
12. Philippine Merchant   Doubtful accuracy of the Property, Plant and Equipment (PPE)
Marine Academy accounts due to (i) unreconciled variance of P20.66 million
(PMMA) between the PPE book balances and the Report on the Physical
Count of Property, Plant and Equipment (RPCPPE); (ii)
inaccurate provision of depreciation for 617 PPE items with net
book value of P363.31 million or 43.66% of the total PPE; (iii)
failure to de-recognize sold/donated motor vehicles amounting
to P0.89 million; and (iv) various assets amounting to P241.97
million not reclassified to proper PPE accounts; and
 Unreconciled difference of P12.96 million between the Report
of Physical Count of Inventories (RPCI) and the General Ledger
(GL) balances of the Inventories accounts.
13. President Ramon   Qualified opinion was rendered because the accuracy,
Magsaysay completeness, existence and valuation of the Property, Plant and
Technological Equipment (PPE) with a carrying value of P734.24 million as at
University (PRMTU) December 31, 2020 were uncertain due to:
a) unreconciled discrepancy of P128.67 million between the
physical inventory report and accounting records;
b) non-maintenance of complete and updated property records
by the Supply Office and the Accounting Office hindering
the reconciliation thereof; and
c) non-adjustment to the appropriate PPE accounts of
Construction Materials Inventory worth P23.64 million
issued to infrastructure projects, inconsistent with Sections
38 and 42, Chapter 10 of the Government Accounting
Manual (GAM) for National Government Agencies
(NGAs), Volume I, thus affecting the fair presentation of
the PPE account in the Financial Statements.

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 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
14. Tarlac Agricultural 
University (TAU)
15. Tarlac State University 
(TSU)
TOTAL 4 11 0 0

REGION IV-A - CALABARZON

1. Batangas State   The accuracy, validity and existence of Property, Plant and
University Equipment (PPE) account balance costing P 2.60 billion net of
(BatStateU) Construction in Progress (CIP) of P 769.88 million, could not
be relied upon due to:
a) existence of discrepancies between the balance of
Statement of Financial Position, and PPE Ledger Cards
(PPELC) and Report of Physical Count of PPE (RPCPPE)
totaling P 1.69 billion and P 18.66 million, respectively;
b) non-submission of Main Campus RPCPPE to the Audit
Team and Accounting Division/Unit;
c) non-provision of depreciation on several PPE accounts
totaling P 0.92 million; and
d) maintenance of PPELCs without details of depreciation and
inconsistent with the prescribed template; and contrary to
Chapter 10, Volume I and Appendices 70 and 73, Volume
II of the Government Accounting Manual (GAM) for
National Government Agencies (NGAs). Furthermore, the
existence of discrepancies between the balance per
Statement of Financial Position and lapsing schedule of
depreciation totaling P 67.33 million, net value, for four
PPE accounts cast doubts on the accuracy of computed
depreciation which may affect the reliability of the recorded
balances in the Statement of Financial Position.
 The Accounts Receivable of P 127.63 million (gross) was
doubtful as to reliability, propriety and whether presented at its
net realizable value as of December 31, 2020 due to the:
a) presence of negative Subsidiary Ledger (SL) balances
totaling P 216.82 million and unreconciled difference
between the SL and its sub-SLs balances of P 8.34 million
in the books of the BatStateU Main;
b) inconsistency in the adopted policy on the provision for
Impairment of Receivables;
c) unreconciled balance of P 6.62 million between the
Accounts Receivable-CHED UniFAST and Summary of
CHED UniFAST Billing and
d) absence of breakdown of receivable from various students.
This is contrary to Sections 58, 111 and 114 of Presidential
Decree (PD) No. 1445, Section 12b, Chapter 2, Section 10,
Chapter 7 of the GAM for NGAs, Volume I, and
Appendices 5 and 6 of GAM for NGAs, Volume II.
 The non-closure of Construction in Progress (CIP) accounts for
completed projects resulted to the understatement of PPE
Accounts, Accounts Payable and overstatement of CIP accounts
totaling P 330.65 million, in violation of Section 8g, Chapter 10,
Volume I, GAM for NGAs.
2. Cavite State University   Fifteen (15) asset and two liability accounts of Main Campus
(CvSU) posted abnormal balances totaling P 152.20 million and P 0.93
million, respectively, as of December 31, 2020. This
significantly affects the accuracy and reliability of financial
information presented in the financial statements, contrary to
Section 15, Chapter 1 and Sections 6.f and 7, Chapter 19 of the
Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume I.

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OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
 The balance of Cash Collecting Officer (CCO) account of P 0.79
million presented in the Statement of Financial Position as of
December 31, 2020 of the Main Campus is unreliable due to:
a) significant variance of P 0.73 million between the Cashier’s
Cash Receipts Record and Statement of Financial Position;
b) the existence of negative CCO balances of (P 2.12 million)
and (P 42,790.67) on Fund 163 and Fund 164, respectively;
c) non-disclosure of information on the actual condition of the
account in the Notes to Financial Statements; and
d) non-maintenance of Subsidiary Ledger. This is contrary to
Item 6.3 of Commission on Audit (COA) Circular No. 90-
331, Section 15, Chapter 1, and Item f, Section 6, Chapter
19 of the GAM for NGAs, Volume I, and Section 12,
Chapter 2 of the same Manual.
 The reported total Cash in Bank - Local Currency balance of P
1.35 billion as of December 31, 2020, of the Main Campus is
unreliable due to:
a) non-preparation/submission of CY 2020 Bank
Reconciliation Statements (BRS) for 21 bank accounts;
b) incomplete and unreconciled Subsidiary Ledgers and
schedules for Cash in Bank accounts; and
c) significant variance in the reported balances per bank
confirmation and Cashier’s Check Disbursement Records
(CkDR) as compared with accounting records. This is
contrary to Sections 3, 5 and 7 of Chapter 21 and Section
12, Chapter 2 of GAM, Volume I and Appendix 6 of GAM,
Volume II, both for NGAs.
 The reported Due from NGAs account totaling P 437.21 million,
includes amount collectible from Commission on Higher
Education (CHED) for the implementation of Republic Act
(RA) No. 10931 or the Free Higher Education Act amounting to
P 430.40 million. This collectible should have been recorded
under Accounts Receivable-CHED contrary to Chapter 3 of
GAM for NGAs, Volume III.
 The collectability of CvSU’s receivables account aggregating P
10.96 million, which have been non-moving for eight to 12
years, could not be ascertained due to absence of records from
which the debtors could be identified, thereby affecting the
validity of Receivables account as reported in the financial
statements, contrary to COA Circular No. 2016-005 and Section
12, Chapter 2 of GAM for NGAs, Volume I. This is also
detrimental to the government given the remote chance of
collection from unidentified debtors.
 The balance of Inventories totaling P 18.30 million of CvSU-
Rosario Campus is unreliable due to inclusion of slow/non-
moving accounts aggregating P 15.09 million, which were still
taken up as assets as of December 31, 2020. The non-
recognition as an expense on the proper period is contrary to the
guidelines and procedures prescribed under Sections 7, Chapter
8 of GAM for NGAs, Volume I, thus resulting in the
overstatement of inventory and government equity accounts by
P 15.09 million.
 The reported Property, Plant and Equipment (PPE) net of
Construction in Progress (CIP) of the CvSU with a total
acquisition cost of P 1.73 billion is unreliable due to:
a) significant variance of P 89.57 million between the amount
recorded per books as against the Report on the Physical
Count of PPE (RPCPPE);
b) continuous non-reconciliation of records by the Accounting
and Property Offices, including current year acquisitions;
and
c) the reported PPE per financial statements and RPCPPE are
not supported with updated PPE Ledger Card (PPELC) and

232
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OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
Property Card (PC), respectively. Also, issued semi-
expendable properties acquired in prior years still formed
part of the PPE balance as of year-end, contrary to Sections
10 and 18.e, Chapter 8 of GAM for NGAs, Volume I and
COA Circular No. 2005-002.
 The undelivered goods and unfinished projects of Naic and
Rosario Campuses as of year-end amounting to P 1.73 million
and P 2.03 million were recorded as outright expense and assets
under the Inventory and PPE accounts, respectively and the
corresponding liability were recognized in the books, contrary
to Sections 2.a, 15 and 44, Chapters 6, 8 and 10 of the GAM for
NGAs, Volume I. This practice resulted in the overstatement of
the affected asset, expense and liability accounts by the same
amount.
3. Forest Products   The Property, Plant and Equipment (PPE) account’s balance as
Research and of December 31, 2020, of P 591.50 million (gross) is of doubtful
Development Institute validity and reliability due to the:
(FPRDI) a) net difference of P 168.09 million between the General
Ledger’s balance and that of the Report on the Physical
Count of Property, Plant and Equipment (RPCPPE); and
b) non-disposal of unserviceable PPE items amounting to P
2.09 million, inconsistent with Section 38, Chapter 10 of
the Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume I and the
Handbook on Property and Supply Management System,
thus affecting the fair presentation of the PPE and other
related accounts in the financial statements.
 The non-reclassification of the cost of the completed project and
non-recording of the ongoing infrastructure project resulted in
net understatement of P 0.12 million in the Construction in
Progress (CIP) account amounting to P0.90 million in the
Statement of Financial Position as of December 31, 2020,
contrary to Section 8.g, Chapter 10 of the Government
Accounting Manual (GAM) for National Government Agencies
(NGAs), Volume I.
 The Due to National Government Agencies (NGAs) account as
of December 31, 2020, amounting to P 3.11 million remained
unrefunded and/or unliquidated despite completion of the
projects due to the absence of available records and is still
subject for reconciliation, contrary to Sections 6.5 and 6.7 of
Commission on Audit (COA) Circular No. 94-013 dated
December 13, 1994, thus exposed the said unrefunded funds to
possible misappropriation or misapplication.
 The absence of proper monitoring and reconciliation of the
subsidiary accounts of the Due to Bureau of Internal Revenue
(BIR) account is contrary to Sections 123 and 124 of
Presidential Decree (PD) No. 1445. This has resulted in
unreconciled balance of P 0.62 million and abnormal negative
balances of 60 subsidiary ledger (SL) accounts amounting to
P65,889.11. Thus, affecting the fair presentation of the said
accounts in the financial statements.
 The non-submission of Journal Entry Vouchers (JEVs), together
with their supporting documents is contrary to the provision of
Appendix 36 of the Government Accounting Manual (GAM) for
National Government Agencies (NGAs), Volume II and Section
7.2.1 of the Rules and Regulations on Settlement of Accounts
(RRSA) prescribed under Commission on Audit (COA)
Circular No. 2009-006 dated September 15, 2009. This also
hindered the Audit Team in verification of the recorded
transactions of FPRDI.
 The delayed submission of disbursement vouchers, trial
balances, financial statements and supporting schedules
precluded the prompt audit of accounts and financial

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transactions, early detection and correction of
errors/deficiencies and timely reporting of the audit results to
Management, in contravention with Section 122(2) of
Presidential Decree (PD) No. 1445, Section 7.2.1 of the Rules
and Regulations on Settlement of Accounts (RRSA) as
prescribed under Commission on Audit (COA) Circular No.
2009-006 and Section 60, Chapter 19 of Government
Accounting Manual (GAM) for National Government Agencies
(NGAs), Volume I.
 The Forest Products Research and Development Institute
(FPRDI) did not provide a complete list of all its ongoing
projects, and those that are to be implemented during the year at
the prescribed time specified under Item 2.1 of Commission on
Audit (COA) Circular No. 2013-004 dated January 30, 2013.
Likewise, it did not submit to the Auditor the copies of contracts
and supporting documents on the seven procurement projects
with total contract amount of P20.33 million, within five
working days from execution thereof, contrary to Item 3.1.1 of
COA Circular No. 2009-001 dated February 12, 2009, thus
precluded the Auditor in conducting timely review of the
procurement activities.
 The non-compliance with pertinent rules and regulations in the
recording, maintenance and utilization of Petty Cash Fund
(PCF) granted to an Accountable Officer amounting to
P30,000.00 has exposed the fund to the risk of loss and
mishandling, and is contrary to Sections 35 and 36, Chapter 6 of
the Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume I. Moreover, expenses
made out of the PCF amounting to P27,718.12 under List of Due
and Demandable Accounts Payable-Advice to Debit Accounts
(LDDAP-ADA) No. 101-101-04-106-2020 were not supported
with adequate documentary requirements, contrary to Section
4(6) of Presidential Decree (PD) No. 1445 and Section 1.2.2 of
Commission on Audit (COA) Circular No. 2012-001.
4. Laguna State   The reported cost of the Property, Plant and Equipment (PPE)
Polytechnic University in the Statement of Financial Position as of December 31, 2020,
(LSPU) totaling P 1.50 billion differed by P 308.41 million as compared
to the amount shown in the Report of Physical Count of
Property, Plant and Equipment (RPCPPE), thus casting doubts
on the reliability and accuracy of the balance of the PPE
accounts in the financial statements. This is inconsistent with
the provisions of Section 42, Chapter 10 of the Government
Accounting Manual (GAM) for National Government Agencies
(NGAs), Volume I and Commission on Audit (COA) Circular
No. 2020-006 dated January 31, 2020.
 Semi-expendable items in Laguna State Polytechnic University
(LSPU) Santa Cruz with total acquisition cost of P 3.75 million
were included in the Report on the Physical Count of Property,
Plant and Equipment (RPCPPE) and formed part of the balance
of the Property, Plant and Equipment (PPE) as of December 31,
2020, contrary to Sections 10 and 18.e, Chapter 8 of the
Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume I, thus overstating the
Asset and Equity accounts by the same amount.
 Expenditures for major improvement and expansion of food
court, including repair of the University Canteen at Laguna State
Polytechnic University-Santa Cruz Campus (LSPU-SCC)
amounting to P 0.83 million for calendar year (CY) 2020 were
not capitalized to the Property, Plant and Equipment (PPE)
account, but erroneously charged to the Repairs and
Maintenance account. This is contrary to International Public
Sector Accounting Standards (IPSAS) No. 17, thereby

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understating the PPE account and overstating the Repairs and
Maintenance account by the same amount.
5. Philippine Council for   The delayed or non-submission of disbursement vouchers, trial
Agriculture, Aquatic balances, financial statements and supporting schedules
and Natural Resources precluded the prompt audit of accounts and financial
Research and transactions, early detection and correction of
Development errors/deficiencies and timely reporting of the audit results to
(PCAARRD) Management, in contravention with Section 122(2) of
Presidential Decree (PD) No. 1445, Section 7.2.1 of the Rules
and Regulations on Settlement of Accounts (RRSA) as
prescribed under Commission on Audit (COA) Circular No.
2009-006 and Section 60, Chapter 19 of the Government
Accounting Manual (GAM) for National Government Agencies
(NGAs), Volume I.
 The PCAARRD’s assertions on the validity and reliability of the
Due from National Government Agencies (NGAs), Local
Government Units (LGUs), and Non-Government
Organizations/People’s Organizations (NGOs/POs) account
balances amounting to P2.48 billion, P7.12 million and P 73.16
million, respectively, were doubtful due to:
a) reported discrepancies of P 50.11 million between book
balance with the confirmed balances from 11 Implementing
Agencies (IAs);
b) erroneous posting/recording of fund releases and
liquidations/refund; and
c) outstanding balance of P1.827 billion remain unliquidated
despite completion of the project duration, thereby
affecting the fair presentation of the accounts in the
Financial Statements. This is contrary to Sections 6.5 and
5.4 of Commission on Audit (COA) Circular Nos. 94-013
and 2007-001, respectively.
 The Property, Plant and Equipment (PPE) account’s balance as
of December 31, 2020, of P 202.79 million (gross) is of doubtful
validity and reliability due to the:
a) difference of P 2.64 million between the General Ledger
balance and the Report on the Physical Count of Property,
Plant and Equipment (RPCPPE);
b) absence of Inventory Custodian Slip (ICS) on derecognized
PPE items accounted as semi-expendable properties;
c) under/non-provision of depreciation on Technical and
Scientific Equipment and Information and Communication
Technology (ICT) Equipment accounts; and
d) non-disposal of four unserviceable motor vehicles
amounting to P 1.90 million, thus affecting the fair
presentation of the PPE and other related accounts in the
financial statements.
 No amortization for calendar year (CY) 2020 was recognized on
Intangible Assets-Computer Software account amounting to P
0.56 million, thereby understating the Amortization-Intangible
Assets, Computer Software and the Accumulated Amortization-
Computer Software accounts and overstatement of Intangible
Assets as of year-end. This is contrary to Section 9, Chapter 12
of the Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume I and Annex A of
Commission on Audit (COA) Circular No. 2020-001 dated
January 8, 2020, which contain the lists and descriptions of all
accounts in the Revised Chart of Accounts (Updated 2019).
 The reported balance of Inventory accounts of P 10.26 million
as of December 31, 2020, was unreliable due to:
a) non-conduct of physical count on Other Supplies and
Materials Inventory amounting to P 0.86 million and
unreconciled discrepancy of P 5.26 million between the
General Ledger (GL) balance and the Report on the

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Physical Count of Inventories (RPCI) for Office Supplies
Inventory;
b) presence of negative balances in the Subsidiary Ledger
(SL) and schedule of inventories maintained by the
Accounting Section; and
c) undetermined status of Semi-Expendable Properties
amounting to P 2.69 million due to non-maintenance of
supplies ledger cards and stocks cards, and failure to
prepare and submit the Report of Supplies and Materials
Issued (RSMI) and Inventory Custodian Slip (ICS) to
record issuance thereof.
 The Due to National Government Agencies (NGAs) account as
of December 31, 2020 of P 3.91 million remain unrefunded
and/or unliquidated for less than one year to over six years
despite completion of the projects, contrary to Sections 6.5 and
6.7 of Commission on Audit (COA) Circular No. 94-013 dated
December 13, 1994, thus exposed the funds to possible
misappropriation or misapplication. Moreover, due to lack of
monitoring of the status of funds, 12 projects showed abnormal
negative balances of P 0.38 million and unreconciled variance
of P(1.74) million per confirmation with Technology
Application and Promotion Institute (TAPI).
 Absence of proper monitoring and reconciliation of accounts
resulted in abnormal negative balances of Due to Bureau of
Internal Revenue (BIR), Government Service Insurance System
(GSIS), Pag-IBIG, and PhilHealth subsidiary accounts
amounting to P 2.18 million, P 0.25 million, P 49,066.88 and P
8,770.09, and unreconciled balances of P 0.32 million, P
33,267.86, and P 70,929.20 and P 20,052.62, respectively. Thus,
fairness of the said accounts in the financial statements cannot
be relied upon.
 Non-compliance with existing government policies/guidelines
in maintaining the Petty Cash Fund (PCF) resulted in delayed
liquidation of Petty Cash Vouchers (PCVs), excessive PCF
requirement for one month, and disbursements include regular
expenses not related to the purpose of the PCF and were not
supported with complete documentations, contrary to Section
4(6) of Presidential Decree (PD) No. 1445, thus exposed the
fund to the risk of loss and mishandling.
 The Philippine Council for Agriculture, Aquatic and Natural
Resources Research and Development (PCAARRD) did not
provide a complete list of all its ongoing projects and those that
are to be implemented during the year at the prescribed time
specified under Item 2.1 of Commission on Audit (COA)
Circular No. 2013-004 dated January 30, 2013. Likewise, they
did not submit to the Audit Team copy of contracts and
supporting documents on the 31 procurement projects with total
contract amount of P 43.95 million, within five working days
from execution thereof, contrary to Item 3.1.1 of COA Circular
No. 2009-001 dated February 12, 2009, thus preventing the
Audit Team in conducting timely review of the procurement
activities.
6. Philippine High School 
for the Arts (PHSA)
7. Southern Luzon State   The existence and accuracy of PPE amounting to
University (SLSU), P972,737,578.13 of SLSU in CY 2020 could not be ascertained
Quezon Province due to unreconciled PPE reports of Accounting and Property
Office, contrary to the provisions of GAAM and MNGAS,
Volume II.
 Income and Expenses pertaining to various Income Generating
Projects (IGP) of the SLSU were not maintained in a separate
set of books of accounts, thus separate financial statements
relative thereto were not prepared within the reglementary

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period. Hence, the propriety, and validity of Other Business
Income account amounting to P 10.12 million for the year ended
December 31, 2020, could not be ascertained.
 The Southern Luzon State University (SLSU-JGE) did not
prepare Supplies Ledger Card (SLC) (Appendix 57 of
Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume II) I CY 2020, thus
impairing control and monitoring of inventory, and casting
doubt on the fair r presentation of the inventory accounts
amounting to P 0.50 million in the Statement of Financial
Position.
8. University of Rizal   The Property, Plant and Equipment (PPE) account with a net
System (URS), book value of P 410.76 million as of December 31, 2020 was
Morong not reliable due to unrecorded parcels of land, buildings and
structures of several campuses of the University, contrary to
Sections 3 and 5, Chapter 10 of Government Accounting
Manual (GAM) for National Government Agencies (NGAs),
Volume I, International Public Sector Accounting Standard
(IPSAS) 17 and Section 6.1 (f.2) of COA Circular No. 2015-002
dated March 9, 2015, thus affecting the correctness and
reliability of the said account balances;
 Unserviceable properties costing P 14.64 million which no
longer qualify as assets were still carried in the books because
disposal of said properties has not yet been undertaken by the
University, contrary to Section 79 of Presidential Decree (PD)
No. 1445, COA Circular No. 89-296 dated January 27, 1989,
and Section 2(b), Chapter 2 of Government Accounting Manual
(GAM) for National Government Agencies (NGAs), Volume I,
hence total assets reported as of year-end were overstated by the
carrying amount of the unserviceable properties and the
University was deprived of additional income that could have
been obtained had these properties been sold or negotiated
promptly;
 The Biological Assets account balance amounting to P 4.70
million at year-end was unreliable due to:
a) unrecorded offspring of livestock during the year
amounting to P 0.12 million;
b) improperly classified 3,241 items of the asset;
c) non-maintenance of Biological Asset Property Card
(BAPC) and non-preparation of Quarterly Report on
Biological Asset (QRBA) per Appendices 78 and 79 of
Government Accounting Manual (GAM) for National
Government Agencies, Volume II, respectively, resulting
in its non-submission; and
d) a net variance amounting to P 2.63 million between the
General Ledger and the Physical Inventory Count, contrary
to Paragraph 31 of International Public Sector Accounting
Standard (IPSAS) 27; and Sections 2 and 11, Chapter 11,
GAM for NGAs, Volume I, thus affecting its fair
presentation in the financial statements
 The Cash in Bank – Local Currency, Current Account (CIB-
LCCA) balance as of year-end, amounting to P 296.27 million
was unreliable due to:
a) non-preparation and submission of monthly Bank
Reconciliation Statement (BRS) of the Corporate and
Business Affairs (CBA) bank account; and
b) non-adjustments of unreleased checks and stale checks
amounting to P 8.97 million and P 0.57 million,
respectively, contrary to Section 74 of Presidential Decree
(PD) No. 1445; and pertinent provisions of Chapters 21, 6
and 19 of the Government Accounting Manual (GAM) for
National Government Agencies (NGAs), Volume I

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 The accuracy and existence of the reported year-end balance of
Inventories in the Statement of Financial Position totaling P 8.05
million could not be ascertained due to:
a) incomplete Report on the Physical Count of Inventories
(RPCI);
b) Stock Card (SC) maintained by the Supply and Property
Management Office (SPMO) is incomplete; and
c) non-maintenance of the Supplies Ledger Card (SLC) of the
Accounting Office, which was inconsistent with Sections 9
and 17, Chapter 8 of the Government Accounting Manual
(GAM) for National Government Agencies (NGAs),
Volume I, thus rendering the inventory balance at year-end
doubtful and affects the fairness of presentation of the
account in the financial statements.
TOTAL 1 7 0 0

REGION IV-B - MIMAROPA

1. Marinduque State  The accuracy and reliability of the Land account totaling P22.69
College (MSC) million is doubtful due to non-recording of eight parcels of land
acquired by the College through donation. Also, the recorded
parcels of land as well as the seven out of the eight unrecorded
parcels were not yet covered with Transfer Certificates of Title
(TCT) in the name of the College, contrary to Section 39 of
Presidential Decree (PD) No. 1445 and Section 6, Chapter 19 of
the Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume I thus, resulting in the
misstatement of the account in the financial statements and
exposing these lots to possible third-party claims.
2. Mindoro State College  The correctness, existence and reliability of the balances of Cash
of Agriculture and in Bank- Local Currency Current Account (CIB-LCCA) totaling
Technology P250.06 million, Accounts Receivable totaling P 7.05 million,
(MinSCAT) Inventories totaling P 4.44 million, Property, Plant and Equipment
with carrying amount of P631.33 million and Biological Assets
totaling P 1.45 million as of December 31, 2020 are doubtful due
to lapses/errors in recording, classifying and reconciling the
accounts.
3. Occidental Mindoro   Inventory and Supplies and Materials Expense accounts valued
State College (OMSC) at P 8.23 million and P 27.95 million, respectively, are
inaccurate and unreliable due to:
a) discrepancy between the accounting records and the Report
on the Physical Count of Inventories;
b) accumulated shortages and overages;
c) non-compliance with accrual basis of accounting; and
d) erroneous classification of inventory and expense accounts
contrary to IPSAS 12 – Inventories.
 The College’s Property, Plant and Equipment (PPE) accounts
are carried in the statement of Financial Position at P 395.12
million as of December 31, 2020. Management did not (a)
capitalize cost of major repairs totaling P 3.02 million; (b)
include in the physical count of PPE the Land, Land
Improvements, Buildings and Other Structures with carrying
value of P303.35 million; (c) derecognize unserviceable and
disposed properties with net book value of P 1.24 million and P
25,000.00, respectively; (d) record the 133 units of goods valued
at P 5.22 million on a per item basis; and (e) properly classify
various PPE accounts valued at P 16.35 million, which are clear
departures from IPSASs.
4. Palawan Council for  The existence, accuracy and reliability of the reported balances of
Sustainable Property, Plant and Equipment (PPE) accounts totaling P135.93
Development Staff million due to discrepancy of P 19.27 million between the
(PCSDS) accounting records and the Report on the Physical Count of
Property, Plant and Equipment (RPCPPE), contrary to the

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prescribed policies and procedures in the recording, reporting and
maintenance of the PPE accounts under GAM for NGAs, Volume
I.
5. Palawan State   The accuracy, validity and existence of the reported balances of
University (PSU) Property, Plant and Equipment (PPE) accounts totaling P 1.66
billion is doubtful due to total discrepancy of P 277.34 million
between the accounting records and the Report on the Physical
Count of Property, Plant and Equipment (RPCPPE) and other
deficiencies noted, contrary to the prescribed policies and
procedures in the recording, reporting and maintenance of the
PPE accounts under Volume I of the Government Accounting
Manual (GAM) for National Government Agencies (NGAs),
hence misstating the PPE account as presented in the Statement
of Financial Position (SFP).
 The accuracy, reliability and existence of the balance of Cash
and Cash Equivalents account of all funds totaling P288.70
million as of December 31, 2020, is doubtful due to:
a) discrepancy between the book and the bank balances of
Cash in Bank account in the net amount of P76.88 million;
b) discrepancy of P 2.60 million between the book and Report
of Collections and Deposit (RCD)
c) non/delay preparation of Bank Reconciliation Statement
(BRS) for Funds 164-Senior High and Fund 401, contrary
to Section 112 of Presidential Decree (PD) No 1445,
Section 27 of the International Public Sector Accounting
Standards (IPSAS), Sections 5 to 7, Chapter 21 of the
Government Accounting Manual (GAM) for National
Government Agencies (NGAs), Volume I, thereby
affecting the fair presentation of the Cash accounts in the
financial statements.
 The aggregate balance of the Land account totaling P377.48
million as of December 31, 2020 is unreliable and of doubtful
validity due to:
a) absence of Transfer Certificate of Title (TCT) as proof of
ownership of 38 parcels of land, and
b) 21 parcels of land were not recorded in the books of
accounts, contrary to Section 39 of Presidential Decree
(PD) No. 1445 and Section 6, Chapter 19 of Government
Accounting Manual (GAM), resulting in the misstatement
of the account in the financial statements and exposing
these lots to possible third party claims.
 The accuracy and reliability of the balance of Trust Liabilities
account under Fund 401 totaling P 69.51 million as of December
31, 2020 could not be ascertained due to inclusion of:
a) accounts for reconciliation totaling P 105.96 million;
b) accounts with abnormal/negative balance amounting to P
59.59 million;
c) erroneous classification of various transactions such as
collection of various fiduciary fees from students
amounting to P 8.73 million, receipt of funds from other
government agencies subject for liquidation totaling P
11.84 million and receipts/collections of registration fees
from seminars and workshop conducted by the University
amounting to P 1.17 million, resulting to misstatement of
the amount of the said account as stated in the financial
statements.
 The accuracy and reliability of the Due to National Government
Agencies (NGAs) account amounting to P59.62 million as of
December 31, 2020, could not be ascertained due to:
a) discrepancy of P10.64 million between General Ledger
(GL) and Subsidiary Ledgers;
b) inclusion of dormant accounts of P 10.95 million; and

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c) abnormal/negative balance amounting to P 8.87 million in
violation of the provisions of Section 111 and 112 of
Presidential Decree (PD) No. 1445 and COA Circular No.
94-013 dated December 13, 1994, resulting to misstatement
of the Due to NGAs account as presented in the financial
statements.
6. Romblon State   The accuracy and existence of the recorded balances of
University (RSU) Property, Plant and Equipment (PPE) accounts with a total net
book value of P396.49 million (excluding Construction-in-
Progress account) is doubtful due to:
a) non-provision of depreciation expense on PPEs with total
book value of P150.28 million;
b) non-maintenance of PPE Ledger Cards (PPELC) and
Property Cards (PC) for each category of PPE; and
c) discrepancy between the accounting records and the Report
on the Physical Count of Property, Plant and Equipment
(RPCPPE) totaling P1.95 million, contrary to Sections 27
and 42, Chapter 10 of the Government Accounting Manual
(GAM) for National Government Agencies (NGAs),
Volume I.
7. Western Philippine   Doubtful accuracy, reliability and validity of PPE accounts
Universit (WPU) totaling P 610.91 million due to non-submission of the RPCPPE
and non-maintenance of updated Property Ledger Cards and
Property Cards
 Doubtful accuracy, reliability and existence of inventories
account totaling P 11.34 million due to the absence of the RPCI
and the non-preparation of the Supplies Ledger Cards and non-
maintenance of Stock Cards.
 Reliability and accuracy of the Accounts Receivable account
amounting to P 91.22 million could not be ascertained due to
discrepancy of P 6.62 million between the GL and SL records.
TOTAL 0 7 0 0

REGION V - BICOL REGION

1. Bicol State College of   Prior year’s audit observation on the inadequate controls and/or
Applied Science and procedures over inventory management system such as the
Technology (BISCAST) absence of complete and updated Supplies Ledger Cards, non-
reconciliation of the accounting and inventory custodian’s
records and non-recording of issuances to end users as expenses
remained unacted upon, thus, the accuracy and reliability of the
inventory accounts balances amounting to P 14.90 million could
not be ascertained. Likewise, issued semi-expendable properties
amounting to P 17.95 million per Supply and Property Office
records were still in the books of accounts, hence, overstating
the inventory accounts and understating the expense accounts
by the same amount.
 The existence and correctness of the balances of PPE accounts
per books amounting to P 372.18 million as of December 31,
2020 could not be ascertained due to the non-reconciliation of
the accounting and property records, erroneous/double
recording in the RPCPPE amounting to P 38.54 million and
inclusion as PPE of items below the capitalization threshold of
P 15,000.
 Accounts Payable balance amounting to P 43.82 million as of
December 31, 2020 includes obligations not yet due and
demandable in the amount of P 20.64 million and delivered
goods not yet accepted valued at P 2.60 million, resulting in the
misstatement of the corresponding accounts in the financial
statements. Likewise, non-reversion of undocumented accounts
payables outstanding for two years and more totaling P 0.59
million affected the validity and regularity of the account.

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2. Bicol University (BU)   A net discrepancy of P 4.01 million between bank and book
balances existed due to the absence of a complete and updated
Bank Reconciliation Statements (BRS). Likewise, the year-end
General Ledger (GL) balances of Cash in Bank - Local Currency
Current Account is over by P 24.66 million as against its
subsidiary records.
 Unreconciled discrepancy of P 745.04 million exists between
inventory report and book balance of PPE account due to
inability to submit a complete inventory report and inclusion of
damaged and unserviceable properties costing at least P 5.77
million in the asset account.
 A net discrepancy of P 62.00 million exists between Accounts
Payable account per GL and unpaid obligations under due and
demandable in the Financial Accountability Reports (FARs).
 Existence of abnormal balance aggregating P 37.92 million in
the Other Payables account and non-reversion to the
Accumulated Surplus/Deficit account of the unidentified
accounts totaling P 3.63 million aged more than four years,
rendered the account unreliable.
Existence of prior year’s unremitted taxes of P 18.33 million
under the General Fund that should have been covered by the
Tax Remittance Advice (TRA) and unreconciled difference of
P 51.42 million in TRA reported under FAR and per GL.
3. Camarines Norte State   The accuracy of the balances of the Cash in Bank-Local
College (CNSC) Currency, Current Accounts (CIB-LCCA) of the College as of
December 31, 2020, amounting to P 71.47 million could not be
ascertained in view of the material variance of P 41.11 million
between the book and bank records due to the inability to update
and/or prepare the Bank Reconciliation Statements (BRS) for
three bank accounts and non-reconciliation of Cash in Bank
balances in the general and subsidiary ledgers of the different
departments and campuses with a variance of P 156,739.
 The existence, accuracy and reliability of Property, Plant and
Equipment (PPE) accounts valued in the books at P607.89
million (excluding Land, Land Improvements and Infrastructure
Assets) could not be determined and ascertained due to:
a) Unreconciled variance of P 30.99 million between the
balance in the Financial Statements (FS) and Report on the
Physical Count of Property, Plant and Equipment
(RPCPPE); and
b) Buildings account totaling P 480.61 million in the
Statement of Financial Position was unreliable due to
inclusion of the value of demolished buildings amounting
to P 2.55 million, resulting in the overstatement of assets
by the same amount and accumulated depreciation by P
1.47 million.
 Inclusion of obligations not yet due and demandable amounting
to P 101.74 million and non-recording of its obligation to pay
for the completion of project amounting to P 1.36 million, in the
year-end balance of Accounts Payable totaling P 207.77 million,
overstated and understated, respectively, the Accounts Payable
account, affecting the fair presentation thereof in the financial
statements.
4. Camarines Sur   Prior year’s audit observation on the non-reconciliation of the
Polytechnic College Accounting and Inventory Custodian’s records remained
(CSPC) unacted upon, contrary to pertinent accounting and auditing
rules and regulations, thus, accuracy and reliability of the
balances of inventory accounts totaling P16.05 million cannot
be ascertained. Likewise, the unit value of 1,401 pieces of six
different items classified under Other Supplies and Materials
Inventory was not indicated in the Report on the Physical Count

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of Inventories (RPCI), thus, understating the total cost of
inventories.
 The correctness and reliability of the balances of Property, Plant
and Equipment (PPE) accounts carried in the books at gross cost
of P 640.25 million as of December 31, 2020 were doubtful due
to the non-reconciliation of the accounting and property records,
inability to derecognize the disposed properties amounting to P
4.05 million and inclusion as PPE of items below the
capitalization threshold of P 15,000. Likewise, the Report on the
Physical Count of Property, Plant and Equipment (RPCPPE)
includes unserviceable properties already disposed.
 Other Payables account with General Ledger balance of P35.00
million as of December 31, 2020 is doubtful due to the absence
of necessary supporting documents and updated subsidiary
ledgers/schedules hindering the verification and reconciliation
of balances, thus, accuracy and reliability of the account balance
reflected in the financial statement could not be ascertained.
5. Catanduanes State   The reported balance of the PPE in the financial statements
University (CSU) amounting to P 513.06 million did not reconcile with the balance
shown in the RPCPPE of P 493.57 million or a variance of P
19.49 million. Also, various PPEs totaling P56.89 million taken
up in the books were not included in the RPCPPE while PPEs
amounting to P 55.83 million were included in the RPCPPE but
not taken up in the books, thus, reliability and accuracy of the
reported balances of the affected PPEs remained doubtful.
 The booked-up Accounts Payable totaling P 19.71 million as of
December 31, 2020 was overstated by P 11.13 million due to the
inclusion of other payables which should have been taken up
under their appropriate accounts, resulting in the understatement
of the other affected payable accounts and overstatement of the
Accounts Payable account in the financial statements.
6. Central Bicol State   Non-reconciliation of CBSUA Main Campus’ PPE account
University of balances between the RPCPPE and General Ledger (GL)
Agriculture (CBSUA) resulted in the unreconciled net variance of P 106.03 million as
at December 31, 2020, thereby, affecting the reliability and fair
presentation of the account in the financial statements.
 The accuracy/correctness of the balances of the CIB-LCCA of
the University as at December 31, 2020 amounting to P 151.44
million could not be ascertained in view of the material
discrepancies of P 23.89 million between the book and bank
records and P 25.49 million compared to the subsidiary ledgers
due to the inability of the Accounting Office to prepare and
update the BRS and the non-reconciliation of the balances
between the General and Subsidiary Ledgers.
 The balance of the Inventory accounts of CBSUA Main Campus
in the aggregate amount of P 8.94 million as of December 31,
2020 was unreliable due to the material variance between the
accounting and property records amounting to P 5.75 million
and various deficiencies noted, thus, accuracy, reliability and
existence of the inventory accounts as presented in the financial
statements cannot be ascertained.
 The recorded Accounts Payable of CBSUA Main Campus for
CY 2020 amounting to P 55.68 million did not reconcile with
the balance of the unpaid obligations under due and demandable
in the Financial Accountability Reports (FARs) of P 34.35
million as of December 31, 2020, disclosing a material
difference of P 21.34 million, thus, rendering the balance of the
Accounts Payable at year-end unreliable.
7. Don Emilio B. Espinosa   The balance of PPE accounts valued at P 441.69 million,
Memorial State College excluding Construction in Progress, as of year-end was
of Agriculture and unreliable due to unreconciled amount of P 124.92 million per
Financial Statements and RPCPPE, misclassification of PPE

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AGENCIES
UM Q A D
Technology accounts, and incomplete and non-maintenance of PPE Ledger
(DEBESMSCAT) Cards (PPELC) and Property Cards (PCs) to substantiate the
completeness, existence, validity and accuracy of the reported
balance of PPE. The inadequacy of the Agency’s records did not
permit us to apply alternative audit procedures to determine the
propriety of the balances of these accounts.
 The accuracy of the recorded CIB-LCCA balance as of
December 31, 2020 in the amount of P 60.87 million could not
be ascertained in view of the material variance of P11.96 million
between the books and bank records due to inability to prepare
and submit BRS since CY 2017.
 The reliability, accuracy and existence of the reported year-end
balances of inventory accounts totaling P 6.99 million could not
be ascertained due to a) incomplete conduct of physical count of
inventories; b) non-recognition of expenses upon issuance of
inventory items to end users; and c) unreconciled variance
amounting to P 6.25 million between the accounting and
property records.
8. Partido State University 
(PSU)
9. Sorsogon State College   The total acquisition costs of PPE accounts in the amount of P
(SSC) 763.22 million as reported in the financial statements did not
reconcile with the total costs reported in the Property Inventory
Reports of the Property Office in the amount of P 729.42
million, hence, the unreconciled difference of P 33.80 million
resulted in unreliability of the balances of both records.
 The accuracy of the balances of the Cash in Bank accounts of
the College as of December 31, 2020 amounting to P215.74
million could not be ascertained in view of the material variance
of P 84.36 million between the book and bank records due to the
inability to prepare BRS for all bank accounts and non-
maintenance of updated subsidiary ledgers.
TOTAL 1 8 0 0

REGION VI - WESTERN VISAYAS

1. Aklan State University   The balance of Property, Plant and Equipment (PPE) in the
(ASU) Statement of Financial Position as at December 31, 2020 of
ASU-Main Campus, College of Fisheries and Marine Sciences
(CFMS), and College of Industrial Technology (CIT)
amounting to P 539 million did not reconcile with the balance
in the Report of Physical Count of Property, Plant and
Equipment (RPCPPE) submitted by the Campus' Supply
Officers as of December 31, 2020, reflecting a variance of P 99
million, thus, the PPE account in the financial statements is
unreliable; and
 The balances of Semi-Expendable Properties in the Financial
Statements of ASU CFMS and College of Hospitality and Rural
Resource Management (CHARRM) amounting to P 3.53
million did not reconcile with the Report on Physical Count of
of Inventories (RPCI) which has a zero balance at year end,
contrary to Government Accounting Manual (GAM) Volume I,
Chapter 8, resulting in an overstatement of the recorded Semi-
Expendable Properties and rendering the account in the financial
statements for calendar year (CY) 2020 unreliable.
2. Capiz State University   The existence, accuracy and reliability of the Property, Plant and
(CPSU) Equipment (PPE) accounts of the University totaling P 410.32
million as of year-end could not be established due to
deficiencies in the recording and monitoring of said account,
contrary to the pertinent provisions of the Government
Accounting Manual (GAM) for National Government Agencies
(NGAs); and

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AGENCIES
UM Q A D
 Allowance for Impairment of Accounts Receivables totaling P
69.24 million which remained uncollected were not
recognized/recorded, thus, affecting the fair presentation of said
accounts in the financial statements.
3. Guimaras State College  The existence, completeness and accuracy of the Property, Plant
(GSC) & Equipment (PPE) accounts amounting to P128.66 million could
not be verified due to the non-submission of the Report on the
Physical Count of Property, Plant & Equipment (RPCPPE).
4. Iloilo Science and  Doubtful reliability and fairness of Property, Plant and Equipment
Technology University (PPE) and Inventories totaling P 10.80 million and P5.08 million,
(ISAT-U) respectively.
5. Iloilo State College of   The reported year-end balances of various PPE accounts of
Fisheries (ISCOF) ISCOF totaling to P 607.88 million were unreliable due to
unreconciled discrepancies of P 288.71 million between the
Statement of Financial Position and the Report on the Physical
Count of Property, Plant and Equipment (RPCPPE), contrary to
Section 42, Chapter 10 of the GAM for NGAs, Vol. I, thus
affected the reliability, accuracy and the fair presentation of the
PPE accounts in the financial statements;
 The reported balances of various semi-expendable properties of
ISCOF Main and Dingle Campuses amounting to P 11.16
million which were already issued to the end-users were not
recognized as expenses upon issue, contrary to Section 10,
Chapter 8 of the GAM for NGAs, Volume I, hence overstating
the affected inventory accounts and understating the semi-
expendable machineries and equipment expenses and furniture,
fixtures and books expenses;
 The inventory account of the College amounting to P 8.44
million reflected in the financial statements was overstated by P
8.00 million since actual stock on hand per Report on the
Physical Count on Inventories (RPCI) only amounted to P 0.43
million as of year-end, contrary to Par. 29(b) of IPSAS 1 and
Section 12, Chapter 8 of the GAM for NGAs, Volume I, thus
affecting the assertions on existence, proper valuation and
completeness as well as proper disclosure and the fair
presentation of the Inventory Accounts in the financial
statements; and
 The existence and valuation of Accounts Receivable account
totaling P 49.09 million could not be validated due to non-
submission of Schedule of Accounts Receivable (SAR) of
ISCOF Main, Barotac Nuevo and Dumangas Campuses
contrary to Section 27, Chapter 7, Volume I of the GAM for
NGAs. Further, Allowance for Impairment Loss was not
provided for the Accounts Receivable balance of P 17.57
million aging over three years contrary to International Public
Sector Auditing Standards (IPSAS) 29, paragraph 67 and
Section 10, Chapter 7 of the GAM, thus overstating the
realizable value of the receivable account and understating the
non-cash expenses and consequently, affecting the fair
presentation of the accounts in the financial statements.
6. Northern Iloilo   Deficiencies in the control mechanisms, such as the non-
Polytechnic State preparation of the CY 2020 Report on the Physical Count of
College (NIPSC) Property, Plant and Equipment (RPCPPE) for properties
amounting to P 657.29 million, and the inclusion in the
Property, Plant and Equipment account of properties below the
capitalization threshold with a total amount of P 0.37 million,
rendered unreliable year-end PPE account balances, contrary to
the provisions of the Government Accounting Manual (GAM),
Volume I, Chapter 8, Section 10 and Chapter 10, Sections 38
and 42; and
 Allowance for impairment provided for long outstanding
receivables amounting to P74.93 million whose collectability is

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AGENCIES
UM Q A D
uncertain, remained at P 20.83 million since 2016, contrary to
Section 10, Chapter 7 of GAM, Volume I, thus, the receivables
account in the year-end financial statements were not fairly
presented.
7. University of Antique  The existence, accuracy, and completeness of Property, Plant and
(UA) Equipment (PPE) amounting to P 948.74 million as of December
31, 2020 could not be established due to non- completion of the
inventory count, non-submission of the Report on the Physical
Count of PPE (RPCPPE), and non-maintenance of the Property,
Plant Equipment Ledger Card (PPELC) contrary to the pertinent
provisions of the Government Accounting Manual (GAM) for
National Government Agencies (NGAs), thus, affecting the
reliability and fairness of presentation of the PPE accounts in the
financial statements.
8. West Visayas State   The reliability, existence and completeness of the WVSU –
University (WVSU) Main, Pototan and CAF Campuses’ Property, Plant and
Equipment (PPE) totaling P1.28 billion could not be established
due to unreconciled balances amounting to P79.94 million
between the financial statements and the Report on the Physical
Count of Property, Plant and Equipment (RPCPPE) contrary to
the provisions of the Government Accounting Manual (GAM),
Volume I;
 Deficiencies in the recording and issuance of Inventories of the
WVSU-Main Campus contrary to Chapter 8 of the Government
Accounting Manual (GAM), Volume I and Section 58 of
Presidential Decree (PD) No. 1445 resulted in understatement
of the Inventory accounts amounting to P16.03 million,
therefore, accuracy and validity of the account could not be
relied upon, thus affecting its fair presentation in the financial
statements;
 The validity and accuracy of various Property, Plant and
Equipment (PPE) accounts of the WVSU – Pototan Campus
totaling P 90.84 million, could not be established since the
Accountant was not able to provide depreciation contrary to
Section 27, Chapter 10 of the Government Accounting Manual
(GAM), resulting in overstatement of the asset and government
equity accounts;
 Non-preparation of the CY 2020 Report on the Physical Count
of Property, Plant and Equipment (RPCPPE) for properties
amounting to P 118.36 million of the Newborn Screening Center
– Visayas, and deficiencies in the control mechanisms, contrary
to Government Accounting Manual (GAM), Volume I, Chapter
10, Sections 38 and 42, rendered unreliable the year-end PPE
account balances; and
 Cash in Bank and Government Income/Equity accounts of the
Newborn Screening Center – Visayas (NSCV) were understated
due to outstanding unreconciled online deposits totaling P26.72
million which remained unadjusted in the latest Bank
Reconciliation Statements (BRS), thus, the accounts are not
fairly presented in the Financial Statements contrary to the
pertinent provisions of Government Accounting Manual.
TOTAL 0 8 0 0

REGION VII - CENTRAL VISAYAS

1. Bohol Island State   The accuracy of the Inventories account balance is unreliable
University (BISU) because BISU Main Campus still carried supplies and materials
that were already issued/used/consumed totaling P 19.32
million, thereby overstating the Inventories and Accumulated
Surplus/Deficit accounts and understating various expenses
accounts as at year end.
 The supplies and materials utilized in CYs 2018 and 2019
totaling P 7.79 million were recorded by BISU Main Campus as

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OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
current year’s expenses instead of recognizing the Accumulated
Surplus/(Deficit), thus overstating expenses and understating
the Accumulated Surplus/(Deficit) account by the same amount.
 The Property, Plant and Equipment (PPE) of BISU Calape
Campus aggregating P 5.67 million were not provided with
depreciation, hence, overstating the assets and Accumulated
Surplus/(Deficit) accounts and the understating the Depreciation
Expense for the current year.
 The Receivable account as at year end of P 25.97 million is
unreliable due to: a) non-recognition of receivables from some
BISU Candijay Campus personnel for the products, which were
sold on account, from their Income Generating Projects,
resulting in abnormal negative balance of P 0.44 million in the
AR account and non-provision of Allowance for Impairment on
the AR of BISU Candijay and Balilihan Campuses and also the
Loans Receivable account of BISU Main and Bilar Campuses.
 Existence of abnormal negative balances aggregating P1.78
million of BISU Candijay Campus, thus, reliability of Other
Payables account could not be ascertained.
2. Cebu Normal University   The agency erroneously recorded the collections intended for
(CNU) the fiduciary and other fiduciary funds totaling P 14.23 million
as trust liabilities which overstated the Trust Liabilities and
understated the Income account of the University as at year-end.
 The reliability of the account Due from NGAs with total balance
of P 3.03 million is doubtful due to:
a) Erroneous deposits made to the bank account of the Bureau
of Treasury (BTr);
b) charging a portion of the retention fee released to the
contractor without any written/valid agreement to
recognize the account;
c) the recording of transactions as inter-agency receivable is
not in accordance with the description of the account under
Item 03 (Inter-Agency Receivables), Chapter 3, Annex A
of COA Circular No. 2020-001 dated January 8, 2020 on
the Revised Chart of Accounts for NGAs.
3. Cebu Technological   Payments of school fees from the students and the Commission
University (CTU) on Higher Education (CHED) aggregating P53.99 million were
not recorded in the books of the CTU Main, Daanbantayan and
Moalboal Campuses, hence the balances of the Cash in Bank,
Accounts Receivable and Income accounts in the Special Trust
Fund are not fairly presented as at year-end.
 School fees and other income of CTU Carmen and San
Francisco Campuses were not recognized when they occur but
recorded only to its appropriate income accounts upon receipt
of the collections, resulting in the overstatement of the Income
account in the Special Trust Fund by P 46.00 million, and the
understatement of Accumulated Surplus/Deficit account by the
same amount as at year-end.
 COA Disallowances with issued Notices of Finality of Decision
aggregating P 3.89 million were not recorded as receivables by
the seven CTU Campuses, thereby, understating the
Receivables-Disallowances/Charges and Accumulated
Surplus/(Deficit) accounts by the same amount.
 Unclaimed stale checks of seven CTU Campuses aggregating P
3.15 million were not restored to the Cash in Bank- LCCA
account and appropriate liability account, resulting in the
understatement of the affected accounts as at December 31,
2020.
TOTAL 0 3 0 0

REGION VIII - EASTERN VISAYAS

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OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
1. Biliran Province State    Unreleased checks as at year-end amounting to P 1.39 million
University (BiPSU) were not reverted to the cash account thereby understating the
Cash in Bank - Local Currency, Current Account and the
corresponding liability/payable account by the same amount;
 The existence and accuracy of the Inventory account balances
reported at P 15.50 million as of year-end cannot be relied upon
due to:
a) the existence of a variance of P 0.69 million between the
balances in the General Ledger and in the Financial
Statements; and
b) an unreconciled discrepancy of P 9.45 million between the
balances in the Financial Statements and in the Report on
the Physical Count of Inventory (RPCI);
 The existence, accuracy and completeness of the year-end
balance of the Property, Plant and Equipment (PPE) account
reported at P 620.25 million could not be ascertained due to the
following deficiencies:
a) unreconciled discrepancy of P 105.37 million in the balance
between the financial statements and the Report on the
Physical Count of PPE (RPCPPE) submitted by the Main
Campus;
b) cost of completed construction of two school buildings
totaling P17.94 million not classified to proper asset
account; and
c) overstated Other Machinery and Equipment account by P
10.00 million in view of the recording of PPE items which
have not yet been delivered;
 The accuracy and fair presentation of the year-end balances of
the Construction in Progress account amounting to P102.73
million; Advances to Contractors of P 4.12 million;
Guaranty/Security Deposits Payable account of P8.49 million;
and Repairs and Maintenance Expense of P16.29 million cannot
be ascertained due to erroneous accounting entries;
 The Accounts Payable year-end balance amounting to P17.47
million is overstated by ten million because of the recording of
undelivered equipment in the account.
2. Eastern Samar State   The year-end balances of the following accounts are unreliable
University (ESSU) which affected the fair presentation of financial statements:
a) Cash in Bank-Local Currency, Current Account due to the
variance between the balances in the bank confirmation
results and the balances in the General Ledger totaling P
45.84 million;
b) Receivables-Disallowances/Charges account due to: i)
errors in recording as credits to the account for refunds
made by the persons liable for disallowances; ii) the non-
recognition in the books as receivables of disallowances
with Notices of Finality of Decision; and iii) the failure of
the Accountant to maintain Subsidiary Ledgers for each of
the disallowances that have become final and executory;
c) Property, Plant and Equipment (PPE) accounts due to: i)
failure to conduct an inventory of PPE items totaling P
359.48 million; ii) unreconciled discrepancy between the
balances in the Statement of Financial Position and the
balances in the Report on the Physical Count of Property,
Plant and Equipment totaling P4.60 million; iii) non-
provision for depreciation of several PPE accounts
aggregating P 34.202 million; iv) unserviceable properties
totaling P 3.22 million are still recorded in the PPE account;
v) errors in the recording of semi-expendable items totaling
P 0.64 million; and vi) absence of proof of ownership of the
Land account valued at P 5.50 million;
d) Construction in Progress-Buildings and Other Structures
account due to: i) errors in recording transactions in the

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AGENCIES
UM Q A D
3. Eastern Visayas State
University (EVSU)
4. Leyte Normal  
University (LNU)
REASONS FOR MODIFIED OPINION
Construction in Progress-Buildings and Other Structures
account totaling P 2.25 million; ii) unrecorded costs of the
five on-going infrastructure projects; and iii) the non-
reclassification to their appropriate PPE accounts of the
three completed projects in CYs 2019 and 2020;
e) Accounts Payable account of the ESSU – Main and
Maydolong Campuses due to: i) the recording of payables
totaling P 2.14 million which are not properly documented;
ii) the booking up of payables for undelivered
procurements in CY 2020 totaling P45,050.00; and iii) the
reporting of variances in the balances appearing in the
Statement of Financial Position and the Financial
Accountability Reports.
 Moreover, the disclosure requirement in the Notes to Financial
Statements under the Philippine Public Sector Accounting
Standards were not fully observed for the reported balances in
the consolidated Statement of Financial Position of Inventories,
PPE, Other Payables and Biological Assets accounts amounting
to P 96.49 million, P 1.00 billion, P 5.02 million and P 1.60
million, respectively, and other various accounts reported on the
individual Statement of Financial Position and Statement of
Financial Performance of the Main and Maydolong Campuses,
thus, information contained in the Notes to Financial Statements
did not adequately provide relevant information on the financial
position and performance of ESSU as of year-end.
  Inaccurate and unreliable year-end balances of the following
accounts:
a) Cash in Bank-Local Currency, Current Account, P832.94
million, due to net understatement amounting P 156.38
million;
b) Inventory Held for Consumption and Semi-Expendable, P
91.65 million, due to existence of variance between
accounting records and RPCI, P 71.74 million;
c) Advances for Operating Expenses, Advances for Payroll,
Advances to Special Disbursing Officers, Advances to
Officers and Employees aggregating P27.32 million due to
abnormal balances, errors in recording, and unsubstantiated
unliquidated cash advance balances amounting to P4.57
million, P 5.98 million, and P 1.14 million, respectively;
d) Due to National Government Agencies, P 276.33 million
due to net understatement of P 6.07 million and
unsubstantiated and doubtful balance totaling P38.61
million;
e) Other Payables, P 84.02 million due to understatement of
P18.81 million and doubtful/unsubstantiated balance of P
91.04 million
f) Receivables-Disallowances/Charges, P 6.63 million due to
understatements totaling P 1.15 million;
g) Other Receivables, P6.31 million due to unsubstantiated
beginning balance of P 4.65 million and unrecorded
payment of P 0.20 million
 In addition, machineries transferred from the Main Campus to
the Tanauan Campus aggregating P 1.14 million were recorded
in the books of the Tanauan Campus at its residual value of P
0.11 million, thus understating the Machinery and Accumulated
Depreciation accounts by P 1.03 million; and
 Honoraria-Civilian with year-end balance of P54.26 million was
misstated due to erroneous recording to the account of the salary
differential of EVSU-Main Campus employees amounting P
3.23 million
The year-end balances of the following accounts are unreliable
which affected the fair presentation of financial statements:
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OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
a) Cash in Bank accounts due to: (a) unrecorded deposits of P
7.77 million; (b) unsubstantiated adjusting entries totaling
P 4.45 million; and (c) unjustified reconciling items
totaling P 2.71 million;
b) Accounts Receivables and Loans Receivables-Others
totaling P 33.99 million and P 0.61 million, respectively
due to: (a) absence of the breakdown of the composition
and other pertinent transaction details of Accounts
Receivables totaling P 8.13 million, and P 0.25 million
Loans Receivables, classified in the Other Subsidiary
Ledger (OSL); and (b) the existence of abnormal/negative
balances in the SLs totaling P 28,211.91;
c) Inventories account due to: (a) unaccounted balance of P
19.23 million classified under OSL; (b) unsubstantiated
Journal Entry Vouchers (JEVs) taking up issuances
totaling P 9.05 million; and (c) the failure to conduct a
physical count of inventories totaling P 22.69 million;
d) Property, Plant and Equipment (PPE) year-end balance of
P 1.11 billion due to the discrepancy of P 169.29 million
between balances of the year-end Financial Statements and
the CY 2020 Report on the Physical Count of PPE
(RPCPPE) of some PPE accounts caused by non-
reconciliation of the accounting and the property records
and failure to conduct a complete periodic inventory of all
PPE items, thus affecting the fair presentation of the
account in the Financial Statements;
e) Due to Bureau of Internal Revenue (BIR), Due to
Government Service Insurance System (GSIS), Due to
Pag-IBIG, and Due to Philippine Health Insurance
Corporation (PhilHealth) accounts because of the presence
of unremitted and unreconciled amounts totaling P 2.58
million, and balances totaling P 0.74 million which have
remained unaccounted;
f) Due to NGAs account balance of P 44.88 million because
of: (a) erroneous recording of payments made by the
Development Academy of the Philippines (DAP) as
payables instead of income resulting in overstatement of
the payable account and the understatement of the income
account; (b) unrecorded liquidation amounting to P
82,021.00, which has overstated the Due to NGAs account;
and (c) the existence and non-disposition of dormant
balances of Due to NGAs, P 6.19 million and Due to LGUs,
P 2.64 million, in view of the absence of the Memorandum
of Agreement (MOAs)/contracts or their equivalents; and
g) Other Payables year-end balance of P 23.87 million due to:
(a) erroneous recording of School Fees totaling P 7.06
million as Other Payables, and in the books of FC-07
instead of FC-05; and (b) unaccounted payables classified
as OSL in the books of FC-01 and FC-05 amounting to P
0.20 million and P 0.33 million, respectively.
5. National Maritime   The existence and accuracy of the Inventory account balances
Polytechnic (NMP) reported at P 3.82 million as of December 31, 2020 is doubtful
due to the following: (a) discrepancy of P 1.42 million in
balances between the Financial Statements and the Report on
the Physical Count of Inventory (RPCI), and (b) difficulty in
reconciliation/validation due to incorrect inventory Account
title in the RPCI.
 The existence and accuracy of the year-end balance of the
Property, Plant and Equipment (PPE) account reported at P 1.03
billion could not be ascertained due to: a) non-inclusion of PPE
accounts valued at P 73.17 million in the Report on the Physical
Count of Property, Plant and Equipment (RPCPPE); and b) the

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OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
existence of unreconciled PPE items in the books aggregating P
14.08 million
6. Northwest Samar State   The existence, accuracy and completeness of the Property, Plant
University (NwSSU) and Equipment (PPE) accounts with a total net book value of P
626.05 million as of December 31, 2020 could not be
ascertained due to: (a) discrepancy in the balances between the
Statement of Financial Position, and the Report on the Physical
Count of PPE (RPCPPE) totaling P 517.93 million; (b) the
recording of semi-expendable supplies in the RPCPPE totaling
P 6.06 million; and (c) inclusion of unserviceable properties in
the PPE balances of the San Jorge Campus totaling P 4.76
million;
 The validity and accuracy of records of the Inventories accounts
totaling P 7.13 million as of December 31, 2020 cannot be relied
upon due to the following deficiencies: (a) discrepancy of P
6.55 million between the balances of the financial statements
(FSs) and the submitted RPCI; and (b) overstatement of the
accounts balance by P 0.60 million due to erroneous recording
of transactions;
 The accuracy of the Accounts Receivable balance amounting to
P 8.91 million as of year-end cannot be relied upon due to
absence of details/specific debtors for the recorded receivables
amounting to P 5.28 million for the NwSSU – Main Campus,
and P 3.63 million for the San Jorge Campus
 The NwSSU failed to provide for Allowance for Impairment of
Accounts Receivable;
 The Trust Liability account reported at P 14.93 million as of
yearend is unreliable due to: (a) errors in the recognition of
receipts and collections of various fees under the Trust Fund
which were recorded under Trust Liability instead of in the
Income accounts; and (b) negative or abnormal balances
appearing in the Subsidiary Ledgers (SL) of the NwSSU Main
Campus amounting to (P 3.02 million); and
 The Due to BIR account reported at P 87,022.93 as of yearend
is unreliable due to: (a) non-preparation of subsidiary ledger for
the Due to BIR account, and (b) negative or abnormal balances
appearing in the General Ledger of NwSSU Main Campus
amounting to (P 0.22 million).
7. Palompon Institute of 
Technology (PIT)
8. Samar State University   The existence, accuracy and completeness of the Inventory
(SSU) accounts reported at a net book value of P 49.31 million as of
December 31, 2020 could not be ascertained due to the
following:
a) overstatement of the Inventory accounts balance by P0.55
million due to erroneous recording of transaction; and
b) records of Inventories in the Accounting Office contain
Items described as “Reconciling SL” totaling P 25.82
million;
 The Construction in Progress account is understated by a net
amount of P 12.99 million due to errors in recording, and the
improper accounting for mobilization and retention;
 The accuracy of the Accounts Receivable balance amounting to
P 5.27 million as of year-end may not be fairly presented due to
the following:
a) absence of details/names of specific debtors for the
recorded receivables totaling P 4.09 million;
b) understatement of Accounts Receivable due to unrecorded
receivables from tuition and other fees totaling P 3.17
million; and

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c) the presence of negative or abnormal balances appearing in
the Student Information and Accounting Systems
amounting to P 1.80 million;
 The provision of the Allowance for Impairment of Accounts
Receivable of P 81,104.14 was reported for CY 2009, but none
was computed and recorded for the ten-year period from CY
2010 to CY 2020; and
 The accuracy of the Income Generating Project reported net loss
at year end totaling P 2.42 million could not be ascertained due
to the absence of the financial statements, journals and ledgers
for each project.
9. Southern Leyte State   The year-end balances of the following accounts were unreliable
University (SLSU) which affected their fair presentation in the financial statements,
viz:
1) Cash in Bank-Local Currency Account of P154.44 million
due to the following:
a. discrepancy of P154.95 million between the General
Ledger balance and the bank confirmation;
b. the non-preparation of Bank Reconciliation Statements
of San Juan Campus covering Calendar Years 2009 to
2015;
c. state checks totaling P 0.52 million of the Main, Bontoc
and Tomas Oppus Campuses which are still reported as
outstanding checks;
2) Accounts Receivable of P 18.72 million, due to the
following:
a. existence of negative balance totaling P 6.65 million
from unrecorded transactions;
b. unreconciled discrepancies in the balances between the
General Ledger of the Main Campus, and the
Subsidiary Ledgers of the External Campuses
amounting to P0.22 million;
3) Inventory accounts of P13.68 million, due to the following:
a. absence of reconciliation between the Accounting and
Supply Offices resulting in a discrepancy of P9.87
million between the books;
b. accounts totaling P 2.58 million which have reported no
changes;
c. existence of negative balances of P 0.19 million;
4) Property, Plant and Equipment (PPE) account with a net
value of P 555.90 million, due to the following:
a. discrepancies in PPE balances carried in the CY 2020
financial statements and the Report of Physical Count
of PPEs totaling P 81.78 million;
b. the failure to conduct an inventory of all PPE items by
Main and Bontoc Campuses;
c. the existence of unreconciled balances between the
accounting records of the Main Campus and those of
the External Campuses totaling P 40.92 million;
d. the existence of unserviceable properties totaling P 3.93
million which are still carried in the books;
5) Biological Assets of P 0.61 million due to the following:
a. non-recording of transactions in the account since CY
2014;
b. failure to update property cards;
c. absence of inventory records at the Bontoc Campus;
d. the non-submission of Quarterly Report of Biological
Assets to record and report any changes;
6) Reciprocal accounts, Due from Other Funds and Due to
Other Funds amounting to P 25.08 million and P4.17
million, respectively, have remained unreconciled; and
7) Several General Ledger and Subsidiary balance totaling P
17.40 million have reported abnormal negative balances.

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10. University of Eastern
Philippines (UEP)
11. Visayas State University
(VSU)
AUDIT
REASONS FOR MODIFIED OPINION
  Accounts Receivable aged over one year to eighteen years
totaling P 8.36 million has remained unsettled as of December
31, 2020 due to the failure of Management to enforce its
collection. Likewise, no Allowance for Impairment Losses was
provided for the account.
 The year-end balance of the Property, Plant and Equipment
(PPE) account totaling P 831.92 million is not fairly presented
due to:
a) the non-provision of depreciation of PPE items totaling P
63.50 million;
b) non-recording of received PPE donations;
c) erroneous accounting entries made to record the
procurement of construction materials for infrastructure
projects;
d) the inclusion in the books of unserviceable and fully
depreciated properties; and
e) the non-submission of the Report on the Physical Count of
Property, Plant and Equipment as of December 31, 2020.
 The accuracy of the Land account with a reported balance of P
116.92 million in the financial statements cannot be ascertained
due to:
a) non-recording of the acquisition costs of the asset at the
UEP - Catubig Campus;
b) error in the recording of the donated land of UEP - Laoang
Campus; and
c) failure of the UEP Catubig and Laoang Campuses to
facilitate the transfer of land titles of purchased and donated
land.
 The Biological Assets account balance amounting to P 0.12
million of the University as of December 31, 2020 is unreliable
due to several deficiencies noted during the audit:
a) the account balance has reported no changes since CY
2016;
b) there has been no inventory reports submitted by the UEP -
Catubig Campus;
c) the biological assets reported in the inventory report
submitted by UEP - Main Campus did not indicate any unit
cost and total cost of the items in the list;
d) the Biological Assets Property Card and Property, Plant and
Equipment Ledger Card were not maintained and updated;
and e) the Quarterly Report on Biological Assets has not
been prepared and submitted
 Subsidiary Ledgers are not maintained to support the General
Ledger accounts totaling P 206.02 million; disallowances
totaling P 0.12 million have not been recorded in the books;
various errors amounting to P 23.97 million have remained
uncorrected; and, there are no adequate disclosures on the Notes
to Financial Statements for accounts totaling P 5.77 million.
  The Auditor rendered a qualified opinion on the fairness of
presentation of the financial statements of VSU for CY 2020 due
to exceptions as stated in the Independent Auditor’s Report and
discussed in detail in Part II of this Report as follows:
a) unreliability of the year-end balances of the Property, Plant
and Equipment; Cash in Bank, Local Currency; Due to
NGAs; Accounts Receivable; Accounts Payable; Due to
Officers and Employees; and Intangible Asset-Computer
Software amounting to P1.03 billion; P 699.76 million; P
170.00 million; P122.35 million; P 20.24 million; P 27.55
million; and P 18.14 million, respectively, and
b) unreconciled year-end balances of the reciprocal accounts,
Due from Other Funds and Due to Other Funds amounting
to P 0.15 million and P 0.97 million, respectively, and
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c) an unreconciled difference between the General Ledger
(GL) and Subsidiary Ledger (SL) of Main and Tolosa
Campuses of the Advances to Special Disbursing Officer
(SDO) and Advances for Operating Expenses totaling P
0.64 million, thereby, casting doubt as to the accuracy and
reliability of the affected account balances in the financial
statements.
TOTAL 1 9 1 0
REGION IX - ZAMBOANGA PENINSULA
1. Basilan State College  As discussed in Part II of the AAR CY 2020, various accounts of
(BSC) the BaSC have misstatements amounting to P60.93 million
understating the total Assets and Equity by P60.93 million and
P60.93 million, respectively. The said misstatements and
deficiencies affected Management’s assertions on completeness,
existence, accuracy, cut-off, classification, and occurrence. These
misstatements and deficiencies have significant impact and
adversely affected the presentation of the year end FS as presented
in the following paragraphs.
For accounting errors and omissions
a) The reported balance of Cash on Hand- CO account of
P1.35 million as of December 31, 2020 is unreliable due to
the inability of Management to require the concerned CO
to render and submit the prescribed Report of Collections
and Deposits (RCD) for prior years (PYs) and under
recording of collections in the books of accounts for
Current Year (CY) 2020.
b) The Cash-in-Bank balance amounting to P 51.393 million
as of December 31, 2020, is unreliable due to unrecorded
reconciling items amounting to a net amount of P1.914
million; absence of records and documents which would
facilitate the verification of prior years’
unidentified/undocumented variance of P4.46 million
between the book and bank balance, and non-preparation of
bank reconciliation statement (BRS) for one bank account.
c) Accounts Receivable presented in the financial statement
(FS) as of December 31, 2020, amounting to P6.16 million
could not be relied upon due to absence of subsidiary
ledgers (SL) and other documents supporting previous
years’ recorded balances of accounts amounting to P3.18
million.
d) Assertions on existence and accuracy of the Inventory
accounts amounting to P14.19 million as of December 31,
2020 could not be validated due to Management’s non-
conduct of physical inventory taking of its inventory’s
contrary to Section 13, Chapter 8 of the GAM and, the
absence of records that would facilitate their verification.
e) Biological Assets as of December 31, 2020 is not fairly
presented due to non-recognition in the books of 1,198
rubber trees and 248 coconut trees with an undetermined
value.
f) The accuracy, completeness and existence of the Property,
Plant and Equipment (PPE) amounting to P321.44 million
presented in the financial statements as of December 31,
2021 could not be adequately determined, due to
inadequate records and information that would allow
reconciliation of accounts, and the presence of material
disparity amounting to P65.89 million between the amount
in the Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) of P255.56 million.
g) Procurement of office supplies amounting to P0.49 million
was charged directly to Office Supplies Expense instead of
Inventory account; retention amounting to P 0.15 million
and HDMF Contribution of P 0.13 million were

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misclassified as Accounts Payable (AP) thus, overstating
Office Supply Expense and understating Inventory
accounts by P0.49 million; understating Guaranty/Security
Deposits Payable and Due to Pag-IBIG of P 0.15 million
and P 0.13 million, respectively, and overstating AP by P
0.280 million.
2. Jose Rizal Memorial   As discussed in Part II of the CAAR CY 2020, various accounts
State University of the JRMSU System have misstatements amounting to P
(JRMSU) 546.94 million understating the total Assets and Equity by
P207.64 million and P 402.76 million, respectively, and
overstating the total Liabilities by P195.11 million and
accounting deficiencies. The said misstatements and
deficiencies affected Management’s assertions on
completeness, existence, accuracy, cut-off, classification, and
occurrence. These misstatements and deficiencies have
significant impact and adversely affected the presentation of the
year end FS as presented in the following paragraphs.
For accounting errors and omissions,

a) Cash-in-Bank – Local Currency Current account (CIB -

LCCA) has unrecorded reconciling items and
transactions in the amount of P276.52 million;
b) Receivables account has an understated audit
disallowances/ charges amounting to P1.27 million; 3)
Inventories account has non-existing inventories still
recognized in the books of accounts in the amount of P
70.75 million;
c) Property, Plant and Equipment (PPE) has unrecorded PPE
in the amount of P0.05 million and understatement of
recognized depreciation amounting to P 0.25 million; and
4) Liabilities include prior years’ income erroneously
recorded as Trust Liabilities and unrecorded payment for
loan amortization in the amount of P 196.21 million and
Accounts Payable account were not recognized amounting
to P1.09 million.

 The following accounting deficiencies which need further

verification, reconciliation and corrective actions also affected
the reliability and fair presentation of affected accounts in the
FS:

a) CIB account has accounting deficiencies in the amount P

9.57 million due to unaccounted variance between recorded
book balance and balance, unadjusted stale checks and
negative balance;
b) Receivables have accounting deficiencies in the amount of
P 84.43 million due to unsubstantiated or undocumented
receivable, non-reconciliation of AR account,
misclassification of accounts, non-moving/dormant
accounts, non-provision for impairment loss on dormant
and long outstanding receivables, over-provision of
impairment loss and negative balance of Receivables
account;
c) Unreconciled amount, abnormal negative balance,
undocumented and unreconciled Advances, non-moving
balance in the amount of P 18 .78 million;
d) Inventory account have accounting deficiencies in the
amount of P1.44 million due to unverifiable inventory
items, misclassification of accounts and dormant inventory
accounts;
a) PPE account has total deficiencies amounting to P927.18
million unverifiable PPE component accounts, difference
of recorded PPE and the result of physical count, erroneous

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classification of PPE, non-reclassification of completed
projects under CIP account, non-recognition of
depreciation expense for PPE component accounts; and
b) Liabilities account have accounting deficiencies in the
amount of P56.74 million due to accounts payable
remained outstanding for more than 2 years, financial
Liabilities without specific details; Due to NGAs,
Government-owned and -controlled Corporations
(GOCCs) and Local Government Units (LGUs) account
has no Subsidiary Ledgers (SLs), abnormal/negative
balances of GL and SL of liability accounts, no Schedules
submitted for Other Payables Account for General Fund
(GF) and Income Generating Project (IGP) and
misclassification of accounts.
3. Josefina H. Cerilles    As discussed in Part II of the AAR CY 2020, various accounts
State College (JHCSC) of the JHCSC System have misstatements amounting to P13.42
million understating the total Assets and Equity by P 13.42
million and P13.90 million, respectively, and overstating the
total Liabilities by P0.47 million and accounting deficiencies.
The said misstatements and deficiencies affected Management’s
assertions on completeness, existence, accuracy, cut-off,
classification, and occurrence. These misstatements and
deficiencies have significant impact and adversely affected the
presentation of the year end FS as presented in the following
paragraphs.
For accounting errors and omissions,

a) Land - Donated parcels of land with approximate market

value of P12.46 million remained unregistered under the
Torrens Title System and unrecognized in the books of
accounts of the College affecting the fair presentation of
the amount of asset and equity accounts presented in the
FS.
b) Biological Assets - The Biological Assets account of the
JHCSC-Dumingag and CMSE Campuses in the total
amount of P 0.28 million presented in the FS as of
December 31, 2020 is understated due to the non-
recognition in the books of Dumingag Campus of P17.39
million biological assets and undetermined value of 12,421
rubber trees and approximately 2,000 rubber trees of
Dumingag Campus and CMSE Campus, respectively.
c) PPE - Non-existing assets amounting to P3.98 million were
still part of the Agency’s Property, Plant and Equipment
(PPE).
d) The accounting entries to recognize income of Dumingag
Campus in the books of accounts of the JHCSC were
erroneous and not in accordance with the Revised Chart of
Accounts – Government Auditing Manual (GAM) for
National Government Agencies (NGAs), Volume III,
resulting in the overstatement of the account Other
Payables-Tutorial by P472,070.00, understatement pf
Account Receivable (AR) and Accumulated Surplus by
P0.33 million and P 0.80 million, respectively, in the FS.
e) Recommendations on the following prior years’ audit
observations with impact on the FS were still not
implemented by Management:

1. Non-provision for Allowance for Impairment Losses for

long outstanding receivables amounting to P 9.20 million
as required under Section 9, Chapter 5, Volume 1 of GAM
for NGAs, by Main and Dumingag Campuses;
2. Non-recognition of depreciation by the CMSE Campus
and the erroneous basis for computation of depreciation by

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UM Q A D
the Dumingag Campus;
3. Absence of records and unsubmitted reports to support
the balances of accounts presented in the FS of the CMSE
and Dumingag Campuses.
4. Non-preparation of Bank Reconciliation Statements by
JHCSC – CMSE Campus to support the Cash in Bank-
Local Currency Current Account balance of P2.00 million
presented in the FS as of December 31, 2020;
5. The existence, completeness and accuracy of the PPE
accounts of JHCSC – Dumingag and CMSE Campuses
amounting to P 40.70 million and P 4.81 million,
respectively, as presented in the FS as of December 31,
2020 are doubtful due to non-compliance by the agency
with various accounting rules and regulations in the
recording and keeping of accounts.
6. Non-moving, non-existing or issued inventories
amounting to approximately P10.61 million as of
December 31, 2019 in the books of JHCSC - Dumingag
Campus were still not derecognized from the books.

The following accounting deficiencies which need further

verification, reconciliation and corrective actions also affected
the reliability and fair presentation of affected accounts in the FS:

f) CIB account has accounting deficiencies in the amount

P9.57 million due to unaccounted variance between
recorded book balance and balance, unadjusted stale checks
and negative balance;
g) Receivables have accounting deficiencies in the amount of
P84.43 million due to unsubstantiated or undocumented
receivable, non-reconciliation of AR account,
misclassification of accounts, non-moving/dormant
accounts, non-provision for impairment loss on dormant
and long outstanding receivables, over-provision of
impairment loss and negative balance of Receivables
account;
h) Inventory account have accounting deficiencies in the
amount of P 1.44 million due to unverifiable inventory
items, misclassification of accounts and dormant inventory
accounts
4. Western Mindanao   Book reconciling items remained unrecorded in the books of
State University accounts as of December 30, 2020, contrary to Section 6,
(WMSU) Chapter 21, Volume I of the Government Accounting Manual
(GAM) for National Government Agencies (NGAs), thus
understating Cash-in-Bank balance by P110.75 million.
 No Allowance for Impairment Loss was provided for Loans
Receivables - Others amounting to P 2.15 million whose
collectability remains uncertain, contravening Section 10,
Chapter 7, Volume I of GAM for NGAs, thus affecting
Management’s assertion on proper valuation of account.
 Construction in Progress (CIP) – Buildings & Other
Structures/Infrastructure Assets still included completed and
turned over projects to Management thereby, overstating the
same and understating Property, Plant and Equipment (PPE) by
P 11.96 million.
 The Advances to Contractors (AC) account with a balance of P
6.14 million as of December 31, 2020, is overstated by P 2.10
million, with corresponding understatement of CIP and
Government Equity accounts by P 4.29 million and P2.14
million, respectively, as a result of erroneous adjusting entries.
 Books with individual cost of less than the capitalization
threshold of P 15,000.00 were erroneously recorded as PPE,

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AGENCIES
UM Q A D
thus overstating PPE and equity accounts, and understating
expense by P 11.65 million.
 The balance of Accounts Payable (AP) presented in the FS
amounting to P 19.21 million, consisting of P 3.02 million and
P 16.19 million for General Fund (GF) and Special Trust Fund
(STF), respectively, as of December 31, 2020 is overstated by P
1.43 million due to various errors and omission in the keeping
of accounts.
 The accuracy of the Other Payables account balance of P56.37
million as of December 31, 2020 is doubtful due to inclusion of:
a) negative balances amounting to P (7.14) million; b) dormant
accounts in the amount of P5.54 million; c) amounts erroneously
charged to Other Payables account for a total of P 24.15 million;
and d) accounts without details or schedules and due for
remittance to Bureau of the Treasury (BTr) for a total amount of
P 0.33 million.
 Due to NGAs account, amounting to P 58.17 million as of
December 31, 2020, have not been fully substantiated with
Subsidiary Ledgers, thus, assertions on reliability and existence
and fairness of presentation of this account could not be fully
established.
5. Zamboanga City State  The reported balance as of December 31, 2020 of Assets and
Polytechnic College Liabilities is understated by P 0.49 million and P 2.97 million,
(ZCSPC) respectively, while Net Assets/Equity is overstated by P2.48
million and various deficiencies were noted in the keeping of
accounts that have significant impact on Management’s assertion
on accuracy, completeness and existence of the reported account
balances thus, affecting the fair presentation of the accounts in the
financial statements
6. Zamboanga State   Property, Plant and Equipment (PPE) account in the amount of
College of Marine P 427.23 million as of December 31, 2020 presented in the
Science and financial statements (FS) is unreliable due to a) non –
Technology maintenance of accounting records and inadequate supporting
(ZSCMST) records/details and information for PPE amounting to P392.30
million and various errors and omissions in the keeping of
accounts.
 The validity of the Receivable account is doubtful due to the
absence of Schedule of Receivables and/or details supporting
the amount presented in the FS at P18.57 million; non provision
for Allowance for Impairment for Receivables whose
collectability is uncertain; and unsupported deduction made
from Receivables-Disallowances/Charges.
 Inventory account balance totaling P 6.56 million contained
errors and deficiencies including untraceable inventory on hand
of P 1.11 million and unrecorded issuances of P 0.70 million,
thus, affecting the propriety and reliability of the account
balances as of year-end.
 Accounts Payable was overstated by P 0.95 million due to
recording of partially and undelivered assets consequently
overstating Office Supplies Inventory by P 0.47 million, Semi-
Expendable Furniture and Fixtures by P 0.24 million, Office
Equipment by P 0.18 million and Furniture and Fixtures by
P50.00 million.
 Total expenditures for 2020 had a net overstatement of P0.84
million due to improper recognition of prior years’ expenditures
as current year expenses.
 School Fees amounting P 0.79 million was understated due to
incorrect reversion of unpaid billings for the 1st and 2nd
semesters of school year 2018-2019. which was recognized as a
reduction from school fees, instead of as Accounts Receivable.

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 Hazard Pay account was understated by P 0.36 million due to
incorrect utilization of accounting entries consequently
misstating other affected accounts.
 Subsidiary records were not submitted to substantiate account
Due to National Government Agencies amounting to P 42.54
million. As a result, Management assertion on the accuracy of
the account balance as of December 31, 2020 could not be
validated.
TOTAL 0 5 1 0

REGION X - NORTHERN MINDANAO REGION

1. Bukidnon State   Various asset and liability accounts amounting to P 65.68
University (BukSU)
2. Camiguin Polytechnic 
State College (CPSC)
million and P 5.66 million, respectively, remained dormant/non-
moving/partially moving in the past 1-5 years, inconsistent with
Section II and III of COA Circular 97-001, thus casting doubt
on their validity, valuation and fair presentation.
 The reported balance of PPE accounts totaling P 1.60 billion as
of December 31, 2020 was unreliable due to unreconciled
balance of P 219.44 million between the accounting records and
property records contrary to Section 111 of PD 1445; Sections
38, 42 and 44 of Chapter 10 of the Government Accounting
Manual for NGA’s Volume 1.
 Lands acquired thru donation with condition in the total amount
of P 22.93 million were recorded as Income from Grants and
Donations, contrary to Section 3 & 13, Chapter 10 of the GAM
for NGAs, Volume 1, thus overstating the income and
understating the liability account in the Financial Statement as
of December 31, 2020 and affects the fair presentation of the
account Land in a particular period respectively.
 The reported balance of Inventory accounts totaling P 64.49
million as of December 31, 2020 is unreliable due to
discrepancy of P 32.83 million between the accounting records
and property records and not strictly observing the policy on the
recording and monitoring of receipt items, contrary to Section
111 of PD 1445; Sections 7 & 15 of Chapter 10 and Section 13
of Chapter 6 of the Government Accounting Manual for NGAs,
Volume I.
 The accuracy and validity of Other Machinery and Equipment,
Other Property, Plant and Equipment, and Other Assets
amounting to P 6.88 million, P 1.90 million, and P 3.16 million,
respectively, under Funds 01, 05 and 06 were not reasonably
substantiated due to lack of proper classification and distinction
of the said accounts contrary to Chapter 3, Government
Accounting Manual (GAM) Vol. III and Sec. 15, Chapter 2,
GAM Volume I, thereby resulting to doubtful existence and
reliability of the PPE account and affecting the fair presentation
of the financial statements.
 Accounts Payable balance of P 0.99 million as of November 30,
2020 for Fund 01 was unreliable due to: (a) inclusion of
payables that have been long outstanding for more than two (2)
years amounting to P 0.36 million which were not reverted to
the Accumulated Surplus/ Deficit, contrary to Sec. 98 of
Presidential Decree 1445; (b) inclusion of payables to GSIS
amounting to P 0.10 million which should have been recorded
as “Due to GSIS”; and (c) inclusion of payables to the contractor
amounting to P0.53 million where the project has already been
100% completed as of November 10, 2020, contrary to Sec. 15,
Chapter 2, Vol. I of Government Accounting Manual, thus,
understating/overstating the affected accounts and the fair
presentation of the financial statements.
 Disbursements amounting to P 8.96 million were not supported
with complete documentation contrary to Section 4 (6) of

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Presidential Decree No. 1445, thus, casting doubt on their
validity, legality and propriety.
3. Central Mindanao   The existence, completeness and correctness of the balances of
University (CMU) Property, Plant and Equipment (PPE) totaling P 815.80 million
that could not be ascertained due to unreconciled PPE ledger
accounts against the submitted Report on the Physical Count of
Property, Plant and Equipment (RPCPPE),
 Failure of the Supply and Property Management Unit and the
Accounting Unit to adhere to the proper monitoring, controlling
and recording of acquisition and disposal of inventory contrary
to Section 13 to 15, Chapter 8 of GAM for NGAs thus rendering
the existence and accuracy of the reported balances of Inventory
accounts totaling P79.49 million unreliable; and
 Accuracy of the Account School Fees of Fund Cluster 5 (Special
Trust Fund) as of December 31, 2020 amounting to P 222.32
million cannot be ascertained due to improper recording of
Income Account from school fees reversal of Unearned Income
and use of unreliable data as basis of adjustments.
4. Mindanao State   The accuracy and validity of the balance of the Cash in Bank
University-Iligan account for seven (7) bank accounts as of October 12, 2020,
Institute of Technology could not be relied upon due to the existence of bulk
(MSU-IIT) unreconciled items between the Bank Statements and the Check
and Advice to Debit Disbursements Records (CkADADRecs),
between the Bank Statements and the Subsidiary Ledgers, and
the CkADADRecs and the Subsidiary Ledgers amounting to P
175.67 million, P 151.26 million, and P 212.16 million,
respectively, arising from the non-preparation of the monthly
Bank Reconciliation Statements (BRS), as required under
Section 74 of Presidential Decree (PD) No. 1445 and Chapter
21 of the Government Accounting Manual (GAM), Volume 1.
 Accounts Receivable totaling P 49.06 million is unreliable and
doubtful due to:
a) unavailable supporting records/documents to explain their
existence/establishment,
b) balances that remained non- moving for five consecutive
years or more,
c) unreconciled inter-agency transactions,
d) Unadjusted balances in transferring of fund to another fund,
and
e) provision of non- moving Impairment Loss-Accounts
Receivables for consecutive six years, contrary to Section
27 of the Philippine Public Sector Accounting Standards
(PPSASs), Section 15, Chapter 2 and Section 9, Chapter 3
of the Government Accounting Manual (GAM) for
National Government Agencies (NGAs) and Sections 111
and 112 of Presidential Decree (PD) 1445, thus, impairing
the accuracy and correctness of the balances of Receivable
Accounts and the corresponding revenue accounts in the
Financial Statements as of December 31, 2020.
5. Mindanao State   Reported balances of Inventory Accounts totaling P 11.30
University-Naawan million as of November 30, 2020 are unreliable and inaccurate
(MSU-Naawan) due to:
a) un-updated stock cards maintained by the Property or
Supply Division Unit,
b) un-updated Supplies Ledger Cards maintained by the
Accounting Division, and
c) failure to conduct Physical Count of Inventories and non-
preparation and non-submission of the Report thereof,
contrary to Sections 9,15 and 17 Chapter 8, of Government
Accounting Manual (GAM) Volume I and Instructions on
Appendix 66 of GAM Volume II, thus, impairing the
fairness of the presentation of the Financial Statements as
of November 30,2020.

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 Receivable Accounts totaling P 15.36 million are unreliable and
doubtful due to:
a) unavailable supporting records/documents to explain their
existence/establishment and
b) provision of Impairment Loss - Accounts Receivables is
without valid bases, contrary to Section 27 of the Philippine
Public Sector Accounting Standards (PPSAS), Section 15,
Chapter 2 and Section 9, Chapter 3 of the Government
Accounting Manual (GAM) for National Government
Agencies (NGAs) and Sections 111 and 112 of Presidential
Decree (PD) 1445, thus, impairing the accuracy and
correctness of the balances of Receivable Accounts and the
corresponding revenue accounts in the Financial
Statements as of November 30, 2020.
6. Northwestern  The Accounts Receivable of the College are carried in the
Mindanao State statement of financial position at P 100.52 million while the total
College of Science and balance of its subsidiary ledgers is P 155.70 million. The
Technology discrepancy of P 55.18 million remained unreconciled as at year-
(NMSCST) end while P 3.55 million of which pertain to negative balances.
Also, the disposal of unserviceable items still lodged in the
Property, Plant and Equipment totaling P 6.20 million has not been
acted thereby overstating the account by the same amount, and
understating Impairment Loss by P0.37 million. All of these are a
departure from the International Standards of Supreme Audit
Institutions (IISSAI).
7. University of Science   The accuracy, validity and reliability of the balances of
and Technology of Accounts Receivable and Due from National Government
Southern Philippines Agencies amounting to P 186.76 million and P 260.18 million,
(USTsP) (formerly respectively, could not be ascertained due to:
MUST and MOSCAT) a) recording of income from tuition fees under “Due from
- CDO Campus National Government Agencies” instead of “Accounts
Receivable”, contrary to COA Circular Letter No. 2004-
002 dated September 30, 2004;
b) absence of subsidiary ledger(s) and schedule of receivables,
contrary to Sec. 12 and 15, Chapter 2, GAM Vol. I and Sec.
27, Chapter 7, GAM Vol. I, thereby affecting the fair
presentation of those balances in the financial statements.
8. USTsP - Claveria   Purchase of supplies and materials amounting to P 1.39 million
Campus were taken up as outright expenses, contrary to Sec. 9, Chapter
8, Vol. 1 of the Government Accounting Manual (GAM),
resulting in the understatement of the inventory accounts, and
overstatement of expenses.
 Issuance of semi-expendable furniture and fixtures to the end-
user amounting to P 1.98 million were not recognized as
expenses, contrary to Sec. 10, Chapter 8, Vol. 1 of the
Government Accounting Manual (GAM), resulting in the
understatement of expenses and overstatement of the inventory
accounts.
 Completed projects recorded as Construction in Progress (CIP)
- Building and Other Structures under Fund 01 and 05
amounting to P 1.05 million and P 1.14 million, respectively,
were not reclassified to the appropriate Property, Plant and
Equipment (PPE) account, contrary to Sec. 8(g), Chapter 10,
Volume I of Government Accounting Manual (GAM), thus
understating the PPE account and its related accumulated
depreciation/ depreciation expenses, and overstating the CIP
account.
 Cash in Bank account balance was understated by P 0.32 million
due to non-recording of unreleased checks contrary to the
provisions of Sec. 56 of Chapter 19, Vol I of Government
Accounting Manual (GAM), thus, affecting the reliability of the
reported cash in bank accounts as of year- end.
TOTAL 0 8 0 0

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REGION XI - DAVAO
1. Compostela Valley  The non-submission of the RPCI and RPCPPE on the legal
State College (CVSC) deadline prevented the Auditor from conducting timely
verification on the existence, condition, ownership, and valuation
of the Inventories and PPEs, casting doubt on the accuracy of the
balances reported in the Financial Statements at P 0.70 million and
P 318.96 million respectively.
2. Davao del Norte State  The non-submission of the Report on the Physical Count of
College (DNSC) Property Plant and Equipment (RPCPPE) for Funds 101, 164, and
102, casts doubt on the accuracy, completeness and existence of
the said PPE accounts in the amount of P 272.70 million as at year-
end; and unliquidated cash advances amounting to P70,742.24,
resulted in a huge balance of Advances to Special Disbursing
Officers account.
3. Davao del Sur State  Due to the non-recording of book reconciling items amounting to
College (DSSC) P 36.69 million in the Cash in Bank-Local Currency, Current
Account, thus materially understating the cash, income and other
related accounts; (b) the non-recognition of CY 2020 depreciation
on the Property, Plant and Equipment (PPE) account of P 82.21
million thereby understating the Depreciation Expense and the
related Accumulated Depreciation for the year; (c) the failure to
maintain PPE Ledger Cards (PPELC); and (d) the non-submission
of 1,189 Disbursement Vouchers and their supporting documents
amounting to P 27.49 million thus rendering questions on the
regularity, propriety and legality of the related transactions.
4. Davao Integrated  The existence, completeness and accuracy of the reported year-
Development Program end balances of the PPE accounts totaling P 0.73 million could not
-Project Management be ascertained due to the non-conduct of the annual physical count
Office (DIDP-PMO) of the agency’s Property, Plant and Equipment (PPE) for CY 2020
and the non-submission of the Report on the Physical Count of
PPE, Plant and Equipment (RPCPPE); and Erroneous
computation and recording of the GSIS and Philhealth Premium
Contributions of the DIDP-PMO employees amounting to P
24,299.44 and P1,268.18 respectively, were noted thus resulting
in the understatement/overstatement of the affected accounts.
5. Davao Oriental State   The Auditor did not render an opinion on the fairness of
College of Science and presentation of the Financial Statements of the Davao Oriental
Technology State College of Science and Technology for CY 2020 due to
(DOSCST) the following:
a) the non-submission of CY 2020 Complete Financial
Statements on/before February 14, 2021;
b) non-submission of 396 Paid Disbursement Vouchers
on/before February 14, 2021;
c) non-submission of all Bank Reconciliation Statements
on/before February 14, 2021;
d) unrecorded cash in bank reconciling items amounting to P
31.06 million, resulted in the misstatement of the Cash in
Bank- Local Currency, Current Account;
e) unreliable and unverifiable Receivable Account Balances
amounting to P 51.58 million;
f) failure to conduct physical counting of Inventories
amounting to P 38.03 million;
g) failure to conduct physical counting of Property, Plant and
Equipment amounting to P 877.25 million;
h) unreliable and unverifiable Due to National Government
Agencies Account Balances amounting to P 53.91 million;
i) unreliable and unverifiable Other Payables Account
Balances amounting to P 1.65 million.
6. Mindanao  The non-submission of the Report on Physical Count of Property,
Development Plant and Equipment (RPCPPE), which casted doubt on the
Authority (MinDA) existence, completeness and accuracy of the reported year-end
balances of the PPE totaling to P 18.24 million; and the various
inconsistencies noted in the Fund Transfers due to non-adherence

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with the provisions stipulated in the MOA by the Source to the
Implementing Agencies which casted doubt on the fairness of the
presented balance of the Due from LGUs account amounting to P
8.74 million as at December 31, 2020.
7. Southern Philippines  Due to:
Agribusiness and a) untransferred assets to the newly created Davao del Sur
Marine and Aquatic State College (DSSC) amounting to P 4.41 million (net of
School of Technology accumulated depreciation of P 3.45 million) in
(SPAMAST) contravention to RA 11220, thereby overstating the asset
balances in the financial statements of SPAMAST as at
yearend;
b) the non-recording in the Stock Cards of the receipt and
issuance of delivered supplies and materials amounting to
P 1.15 million due to lack of complete documentation,
thereby casting doubt on the integrity of property
custodianship and exposing the assets to risk of loss or
misappropriation;
c) the delayed submission of the CY 2020 Report on the
Physical Count of Property, Plant and Equipment
(RPCPPE), hence precluding the timely verification on the
existence, condition, ownership, valuation and accuracy of
the PPE balances amounting to P 179.19 million; and
d) the non-submission of 1,020 paid Disbursement Vouchers
and their supporting documents in an aggregate amount of
P 38.30 million, thus rendering doubt on the regularity,
propriety and legality of the related disbursements.
8. University of   The Plant Property and Equipment (PPE) balances of Obrero
Southeastern and Tagum Campuses in the total amount of P997.91 million
Philippines (USeP) could not be relied upon since it does not reconcile with their
Report of Physical Count of PPE (RPCPPE) amounting to P
983.39 million resulting in the difference of P 60.87 million due
to over and under statements or net amount of P 14.52 million.
 The balance of Accounts Receivable of P 69.01 million could
not be relied upon due to the inaccurate computation of
Allowance for Impairment amounting to P 1.60 million which
does not provide for the correct age of receivables on a per
student basis.
 The University was not able to fully comply with IPSAS 27-
Agriculture as to the measurement and disclosure requirements
of the Biological Assets totaling P P3.05 million.
TOTAL 0 7 0 1

REGION XII - SOCCSKSARGEN

1. Cotabato City State   The balances of the Inventory Accounts totaling P7.69 million
Polytechnic College are unreliable due to non-maintenance of records, forms and
(CCSPC) reports and no semi-annual physical count on inventories as
prescribed by Government Accounting Manual (GAM);
 Management assertion on the ownership of Land amounting to
P 3.04 million and its fair presentation in the Financial
Statement could not be established due to the absence of
Certificate of Titles of two donated properties which also remain
unrecorded, thus, exposing government properties from possible
loss;
 The completeness, accuracy and validity of PPE accounts
amounting to P 170.27 million for CY 2020 were not certain due
to the following:
a) Physical count of PPE as of December 31, 2020 showed a
balance of P 41.19 million only and was not conducted in
accordance with COA Circular 2020-006, thus, remained
unreconciled with the Financial Reports of the accounting
unit;

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UM Q A D
b) Various unserviceable properties were not yet disposed and
dropped from the books thereby overstating the PPE
account; and
c) Computation of depreciation of PPE accounts has no valid
basis and is not supported with a depreciation schedule.
2. Cotabato Foundation   Property, Plant and Equipment (PPE) accounts with book value
College of Science and of ₱209.66M cannot be relied upon due to non-maintenance and
Technology (CFCST), non-reconciliation of property and accounting records; non-
Doroluman, North conduct of physical count of properties; and various
Cotabato unserviceable properties were not yet disposed and dropped
from the books thereby overstating the PPE account.
3. Mindanao State  The following are significant deficiencies that warranted a
University (MSU) – qualified opinion:
General Santos
a) Supplies and Materials amounting to ₱9.27M were directly
issued to end users and treated as outright expense without
coursing through the inventory account.
b) Insurance premiums were treated as outright expenses due to
non-preparation of the required adjusting entry for its
unexpired portion at year-end, thereby understating the
Prepaid Insurance and Accumulated Surplus/(Deficit) by
₱759,533.89.
c) Unobligated prior period expenses paid during the year
totaling ₱618,063.43 were reflected as current expenses in the
Statement of Financial Performance.
d) Various completed projects amounting to ₱26.53M were not
reclassified from CIP to appropriate PPE account thus, failing
to account for the depreciation charges and affecting the
income and expense accounts.
4. Sultan Kudarat State   Misstatement/error totaling P 86.25 million involving cash,
University (SKSU) inventories and accounts receivable accounts have resulted in
over/understatements as at year-end;
 Erroneous classification of liability accounts amounting to P
10.14 million; and
 Abnormal/negative balances of inter-agency payables
amounting to P 8.89 million.
5. University of Southern   Accounts Receivable amounting to P 172.72 million were
Mindanao (USM), neither supported with records nor reports;
Kabacan  Long outstanding payables amounting to P 10.40 million were
not reverted to the Government Equity account;
• Cash Advances totaling P 6.60 million remained unliquidated
and outstanding beyond one year; and
• Construction in Progress (CIP) account includes various
completed projects amounting to P 4.05 million, thus,
understating related PPE accounts and failure to provide for
depreciation charges during the year affected the income and
expense accounts.
TOTAL 0 5 0 0
REGION XIII - CARAGA REGION
1. Agusan del Sur State   The amount billed to CHED-UniFAST for the Tuition and Other
College of Agriculture School Fees of students totaling P 76.90 million was determined
and Technology to be erroneous and had remained unadjusted in the books of
(ASSCAT) accounts of the College due to the programming errors in their
enrollment system that generated inaccurate data, thus rendering
the Accounts Receivable, School Fees, and Accumulated
Surplus/Deficit accounts overstated thereby affecting the fair
presentation of the said accounts in the financial statements;
 Issuances of supplies and materials in December were not
recorded as of year-end as the RSMI was not immediately
prepared and submitted by the Supply Office to the Accounting
Office while issuances of certain inventories in the previous
years were still not taken up in the books of accounts due to lack

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UM Q A D
of supporting documents, thus, existence and accuracy of the
inventory accounts totaling P 4.50 million were deemed
doubtful; and
 Proceeds totaling P 0.49 million from the sale of bid documents
for the procurement of various projects of the College for CYs
2020–2021 were inadvertently treated as business income while
payment for the honoraria of the BAC and TWG was
inappropriately recorded as an expense, thus overstating the
Income from Printing and Publication account by P 0.44
million, the Other Professional Services account by P 0.14
million, and the Accumulated Surplus account by P50,000.00
while understating the Trust Liabilities account by P 0.34
million.
2. Caraga State University   The Report on the Physical Count of Inventory as of December
(CSU) 31, 2020 which reported a balance of P 0.55 million was
submitted to the Office of the Auditor despite the non-
reconciliation of records between the Accounting and Supply
Offices, thus, existence and accuracy of the inventory accounts
totaling P 5.07 million in the financial statements were deemed
doubtful;
 Requests for relief from accountability were not filed by the
concerned accountable officers despite the knowledge of 10
missing equipment with a total cost of P 0.34 million and 109
equipment aggregating P 4.27 million of which existence were
unverified. Likewise, the related losses and its corresponding
receivables were not taken up in the books, thus the PPE and
Due from Officers and Employees accounts were deemed
doubtful and unreliable;
 The accuracy, validity, and existence of the Accounts Payable
totaling P 9.95 million were deemed doubtful due to: (a) long
outstanding balances of accounts aggregating P0.61 million, and
(b) undocumented accounts totaling P0.26 million, thus casting
doubts on the reliability of the Accounts Payable account;
 The balances of the Due to NGAs account totaling P 110.64
million and Other Payables account aggregating P 6.74 million
which, when combined, constituted 66.25 percent of the total
liabilities of the University were not substantiated with complete
subsidiary ledgers and other supporting documents, rendering
the said account doubtful and unreliable.
 The Due to NGAs account included 28 projects with balances
totaling P 4.88 million which have remained dormant for three
to six years, four projects with negative balances aggregating P
0.41 million, and 11 projects with a combined balance of P 2.62
million that were funded by LGUs, thus casting doubts on the
reliability of the Due to NGAs and Due to LGUs accounts.
3. Surigao del Sur State   The accuracy and validity of year-end balance of Cash in Bank
University (SDSSU) – Local Currency, Current Account of P 511.54 million cannot
be relied upon due to (a) existence of dormant accounts and
abnormal credit balance amounting to P 1.07 million and P 0.61
million, respectively; (b) reconciling items reported as additions
and deductions totaling P 10.97 million and P 7.24 million,
respectively, remained unadjusted at year-end; (c) stale checks
totaling P 0.75 million remained unadjusted in the books of
accounts; and (d) non-preparation of bank reconciliation
statements;
 The existence of Due from NGAs amounting to P 0.44 million
is doubtful as the amount remained non-moving for over 12
years in the University's books, and neither was there any
disclosure of facts and/or details in the Notes to Financial
Statements pertaining thereto nor any evidence ascertaining the
efforts of the Accounting Unit to verify, analyze and validate
existence of this receivable account;

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UM Q A D
 Procurement of various books for Cantilan, Lianga and Tagbina
Campus libraries with unit cost below the capitalization
threshold of P 15,000.00 was erroneously recorded as Property,
Plant and Equipment (PPE) under the account of "Books" with
cost totaling P 5.66 million while semi-expendable properties of
Tandag City Main Campuses which were already issued to end-
users were still carried under PPE account with cost totaling P
1.94 million, overstating the affected PPE accounts and
understating the affected semi-expendable expenses account;
 There was unreconciled difference of P 426.71 million between
the reported balance of various Property, Plant and Equipment
(PPE) accounts in the books of accounts of the SDSSU Tandag
Main, Lianga, Cagwait, San Miguel and Cantilan Campuses and
Report of Physical Count of PPE;
 Prior year's expenses aggregating P 1.66 million of Tagbina
Campus were erroneously recorded as current year expenses,
thus resulted in the overstated of the affected expenses accounts
and understatement of the surplus for the current period; and
 Finally, the non-issuance of official receipts for collections
received from enrolment fees of students by the Cash Clerk
resulted in the accumulated of unreceipted, undeposited and
unrecorded collections totaling P 0.11 million, thus, understated
the Cash-Collecting Officer and School Fees accounts.
4. Surigao State College   The accuracy and correctness of the Cash in Bank – Local
of Technology (SSCT) Currency, Current Accounts (LCCA) balance of P 384.40
million as of year-end was doubtful due to: (a) Unadjusted
and/or unsubstantiated reconciling items amounting to P55.45
million; (b) Non-submission of the original copies of Credit
Memoranda (CM)/Debit Memoranda (DM); and (c) Un-updated
Cashbook maintained by the Cashier.
 The accuracy, existence, and completeness of the Inventory
account with a year-end balance of P 47.71 million was doubtful
due to: (a) Unreconciled Inventory balance between the Supply
and Accounting Offices amounting to P 38.27 million; and (b)
Un-updated Supplies Ledger Card (SLC) by the Accounting
Office.
 The year-end balance of the Receivable-Disallowances/Charges
account amounting to P 1.90 million was misstated due to: (a)
Failure by the Accounting Office to set-up receivables from
audit disallowances/charges which had become final and
executory with subject amount of P 22.61 million; (b)
Misclassification of restitutions from audit disallowances which
were credited to Other Payables account instead of the
Receivable-Disallowances/Charges totaling P 19.69 million; (c)
Unrecorded refunds from disallowances of Hazard Pay and
Extra Bonus amounting to P 0.71 million and P 83,316.01,
respectively, or a total of P 0.79 million; and (d) The CY 2003
beginning balance of the account amounting to P 0.49 million,
as well as the transfer or debit of P 12,683.02 in CY 2005 were
deficient of schedules and/or supporting documents, casting
doubt on the accuracy, completeness and valuation thereof.
 The accuracy, existence, and completeness of the Property,
Plant and Equipment (PPE) account with a year-end net value
balance of P 618.34 million was doubtful due to: (a)
Unreconciled PPE balance between the Supply and Accounting
offices of P 34.42 million; (b) Properties were not supported
with Property Acknowledgement Receipt (PAR) amounting to
P 49.29 million; (c) Items found during physical count were not
included in the Report of Physical Count of Property, Plant and
Equipment (RPCPPE); (d) Items in the RPCPPE were not found
during physical count with subject amount of P 2.47 million; (e)
Demolished properties were not dropped from the books or
added to the appropriate PPE account totaling P 3.18 million; (f)

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UM Q A D
Unrecognized donated properties; (g) Transferred PPEs from an
Accountable Officer (AO) to another were not covered with
Property Transfer Report (PTR) and PAR; and (h) Absence of
list/report of the buildings and estates prepared and maintained
by the BEO.
 Trust receipts under the Trust Fund of the College amounting to
P 105.11 million were credited and misclassified to Other
Payables Account instead of the following appropriate Payable
accounts: (a) Due to NGAs – P 61.89 million; (b) Due to LGU
– P 4.46 million; (c) Trust Liabilities – P 38.44 million; and (d)
Guaranty/Security Deposits Payable – P 0.33 million resulting
in overstatements/ understatements of the affected accounts,
thus misstating the financial statements.
 The reported year-end balance of the Construction in Progress
(CIP) – Buildings and Other Structures account of P 150.53
million was misstated by P 35.93 million which corresponds to:
(a) A completed Improvement & Repair of Poultry Building
which was still included in the account and was not reclassified
to the appropriate Property, Plant and Equipment (PPE) account
amounting to P 0.86 million ; (b) Capitalizable
betterments/enhancements costs incurred during the
construction of SSCT’s infrastructures which were not directly
recorded under the appropriate PPE account totaling P 20.59
million; and (c) Two (2) On-going development projects which
were misclassified under the CIP- Buildings and Other
Structures account instead of the appropriate CIP account
totaling P 14.48 million. Moreover, the Accounting Office did
not prepare and maintain CIP-Ledger Cards in which the
balance of the CIP – Buildings and Other Structures account did
not reconcile with the records being kept by the BEO for the
purpose showing a variance of P 24.99 million, thus casting
doubt on the accuracy, completeness and valuation thereof.
 The refund of disallowances/charges in audit and receipts of
liquidated damages totaling P 20.31 million were misclassified
to Other Payables Account instead of a credit to: (a) Receivable
– Disallowances/Charges totaling P19.69 million; and (b)
Income/ Accumulated Surplus/(Deficit) in the amount of P 0.61
million resulting in overstatements/ understatements of the
affected accounts, thereby misstating the financial statements.
 The reported balance of Intangible Assets amounting to P11.50
million was misstated due to failure of the Management to
amortize the same in the books. Moreover, the prescribed
disclosures of the Assets were not presented in the Notes to
Financial Statements for the period covered, precluding the
users of the FS to obtain other relevant information thereof.
TOTAL 0 4 0 0

REGION XVI - NEGROS ISLAND REGION

1. Carlos Hilado   Dormant Accounts Receivables and Advances to Officers and
Memorial State College Employees amounting to P 3.51 million and P 0.18 million,
(CHMSC) respectively, aged 10 years and above which were not requested
for write-off contrary to COA Circular 2016-005 dated
December 19, 2016.
 Cost of major repairs and betterments of school buildings and
other structures amounting to P 0.41 million and P 6.33 million,
respectively, were directly charged to expense contrary to
Sections 24, 24(b) and 25, Chapter 10 of the GAM for NGAs,
Volume I, thus affecting the fairness of presentation of the
financial statements at year-end.
2. Central Philippines   Real Time Gross Settlement collections amounting to P133.49
State University million were erroneously recorded and belatedly receipted,
(CPSU) contrary to Section 68 of Presidential Decree No. 1445.

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UM Q A D
 Income taxes on faculty and employees’ benefits were not
correctly withheld contrary to Bureau of Internal Revenue,
Revenue Regulations No. 11-2018 dated January 31, 2018 and
depriving the government of additional income taxes for its
budgetary needs, thus affecting the fair presentation of the
financial statements at year-end and resulting to overpayment of
benefits totaling P 0.43 million, respectively.
3. Negros Oriental State   Payroll cash advances of the University Cashier granted in the
University (NORSU) prior and current year amounting to P 26.28 million and P 18.69
million, respectively, remained unliquidated and were still
shown in the receivable account at year-end affecting the
fairness of presentation of the financial statements.
 The erroneous recording in the Due from Central Office account
of the amount of P 13.23 million representing transfers to the
Main Campus of the unexpended balances of funds appropriated
for the purchase of equipment, athletic activities and other
purposes of the Bayawan-Sta. Catalina and Siaton external
campuses affected the fairness of presentation of the financial
statements at year-end.
4. Northern Negros   Real Time Gross Settlement (RTGS) collections amounting to
College State College P 123.38 million and P 123.33 million which were erroneously
of Science and recorded and belatedly receipted, respectively, contrary to
Technology Section 68 of Presidential Decree No. 1445.
(NONESCOST)  Receivables from students’ tuition fees totaling P 7.52 million
which were not recorded in the books of the College contrary to
COA Circular Letter No. 2004-002, resulting to understatement
of the Accounts Receivables and Other Deferred Credits
accounts. Thus affecting the fairness of presentation of the
financial statements at year-end.
5. Siquijor State College   The accuracy and existence of Inventory and PPE balances in
(SSC) the books amounting to P 4.26 million and P 269.64 million,
respectively which remained unreliable because the Accounting
and Supply Office inventory and property records were not
reconciled contrary to Section 17, Chapter 8 and Section 42,
Chapter 10 of the GAM for NGAs, Volume I, thus the financial
statements may not be fairly presented at year-end.
TOTAL 0 5 0 0

BANGSAMORO AUTONOMOUS REGION IN MUSLIM MINDANAO

1. Adiong Memorial   The accuracy, correctness and reliability of the Property, Plant
Polytechnic State and Equipment (PPE) account amounting to P 182.52 million as
College of December 31, 2020 was doubtful due to failure of
management to conduct yearly physical inventory of PPE and
non-preparation and submission of physical inventory reports,
contrary to Section 38 of Government Accounting Manual
(GAM) for National Government Agencies, Volume I.
2. Marawi Resort Hotel,   The accuracy, correctness and reliability of the Property, Plant
Inc. (MRHI) and Equipment (PPE) account amounting to P 34.62 million as
at December 31, 2020 was doubtful due to failure of
Management to conduct yearly physical inventory of PPE and
non-preparation and submission of physical inventory reports,
contrary to Section 38, Volume I of the Government Accounting
Manual (GAM) for National Government Agencies (NGAs).
3. Mindanao State   The reported year-end balance of the account Cash-in-Bank-
University (MSU)- Local Currency, Current Account (CIB-LCCA)of P233.55
Main Campus and MSI million is unreliable due to: (a) the inability of the MSU-Main
Campus to authorize and facilitate the bank confirmation
requests of the Commission on Audit; (b) non-preparation and
non-submission of the Bank Reconciliation Statements (BRS)
on a regular basis; and (c) absence of subsidiary ledgers to
support the GL, contrary to Section 2 (2), Article IX-D of the
1987 Philippine Constitution and pertinent provisions of

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 AUDIT
OPINIONS REASONS FOR MODIFIED OPINION
AGENCIES
UM Q A D
Presidential Decree (PD) No. 1445 and the Government
Accounting Manual (GAM) for National Government Agencies
(NGAs).
 The validity, existence and accuracy of records of the various
inventory and related expense accounts amounting to P 12.18
million and P 52.35 million, respectively as of year-end could
not be relied upon due to the following reasons: a) expenses
amounting to P 41.08 million were recorded based on a
percentage and not on the actual supplies and materials
used/issued due to non-submission of Report of Supplies and
Materials Issued (RSMI); b) direct charging of procured
inventory items to the expense account totaling P 11.27 million;
c) non-existence of inventories in-stock amounting to P 2.21
million; d) non-maintenance of required records/forms and
other deficiencies in the receipt, recording, requisition and
issuance of delivered inventory items ; and e) failure to conduct
physical count of inventory accounts and non-preparation of the
prescribed Report of Physical Count of Inventories (RPCI),
contrary to pertinent provisions of the Volumes I and II of the
GAM for NGAs.
 The existence, ownership and accuracy of the PPE accounts
amounting to P 1.96 billion as of year-end were doubtful due to:
(a) the absence of adequate subsidiary and property records
containing details and breakdown for some properties totaling P
1.60 billion, which is 81.89% of the total PPE balance; (b) non-
conduct of complete annual physical count of PPE and non-
reconciliation of Property and Accounting records resulting in
material discrepancies in balances between the year-end FS and
the Report on Physical Count of PPE (RPCPPE) amounting to
P 369.74 million; (c) non-recognition of on-going infrastructure
projects in the Construction-in Progress (CIP) account
amounting to P 11.18 million ; and (d) failure to provide for
allowance for depreciation for depreciable assets with cost of P
5.15 million, casting doubt on the reliability of the account
balances presented in the FS.
4. Mindanao State    Uncertainty of the existence, completeness and accuracy of the
University (MSU)- PPE balances totaling P 12.11 million as of December 31, 2020
Maguindanao could not be ascertained due to the non-submission of Report on
the Physical Count of PPE (RPCPPE)
5. MSU-Sulu  
6. MSU-Tawi-Tawi 
College of Technology
and Oceanography
(MSU-TCTO)
7. Sulu State College  
8. Tawi-Tawi Regional  
Agricultural College
(TRAC)
TOTAL 2 6 0 0
GRAND TOTAL 107 188 7 3
Percentage to Total (%) 35.08 61.64 2.30 0.98

Legend:

UM - Unmodified A - Adverse
Q - Qualified D - Disclaimer

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 PART VII
SIGNIFICANT AND
COMMON AUDIT
OBSERVATIONS AND
RECOMMENDATIONS
 PART VII. SIGNIFICANT AND COMMON AUDIT
OBSERVATIONS AND RECOMMENDATIONS
7.1 Overview

Section 2, Article IX-D of the Philippine Constitution mandates the Commission on Audit
(COA) to regularly conduct audit of accounts of all National Government Agencies
(NGAs). The audit is conducted in accordance with the International Standards of
Supreme Audit Institutions (ISSAIs), with audit results discussed with concerned Agency
officials and incorporated in the Annual Audit Reports (AARs) and Management Letters
(MLs). The AAR or ML is transmitted to the concerned agency head, with the Office of
the President, the Congress, Oversight Agencies and other stakeholders furnished a copy
thereof.

7.2 Audit Opinions

The AAR sets forth the audit opinion on the entity’s financial statements (FSs). Under
International Standard on Auditing (ISA) 700, the auditor shall express an Unmodified
Opinion when the auditor concludes that the financial statements are prepared, in all
material respects, in accordance with the applicable financial reporting framework, which
is the International Public Sector Accounting Standards (IPSAS). If the auditor concludes
that, based on the audit evidence obtained, the FSs as a whole are not free from material
misstatement or is unable to obtain sufficient appropriate audit evidence to conclude that
the FSs as a whole are free from material misstatement, the Auditor shall modify the
opinion in the Auditor’s report in accordance with ISA 705.

The ISA established three types of Modified Opinions, namely, a qualified opinion, an
adverse opinion, and a disclaimer of opinion. The decision regarding which type of
modified opinion is appropriate depends upon:

a) The nature of the matter giving rise to the modification, that is, whether the
financial statements are materially misstated or, in the case of inability to obtain
sufficient appropriate audit evidence, may be materially, misstated; and

b) The auditor’s judgment about the pervasiveness of the effect or possible effect
of the matter on financial statements.

The types of Modification to the Auditor’s opinion are determined as follows:

a) Qualified Opinion - Issued when: (a) the auditor, having obtained sufficient
appropriate audit evidence, concludes that misstatements, individually or in the
aggregate, are material, but not pervasive, to the financial statements; or (b) the
auditor is unable to obtain sufficient appropriate audit evidence on which to base
the opinion, but the auditor concludes that the possible effects on the FSs of
undetected misstatements, if any, could be material but not pervasive.

b) Adverse Opinion - Issued when the auditor, having obtained sufficient

appropriate audit evidence, concludes that misstatements, individually or in the
aggregate, are both material and pervasive to the FSs.

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 c) Disclaimer of Opinion – Issued when the auditor is unable to obtain sufficient
appropriate audit evidence on which to base the opinion, and the auditor
concludes that the possible effects on the FSs of undetected misstatements, if
any, could be both material and pervasive or in extremely rare circumstances
involving multiple uncertainties, the auditor concludes that, notwithstanding
having obtained sufficient appropriate audit evidence regarding each of the
individual uncertainties, it is not possible to form an opinion on the FSs due to
the potential interaction of the uncertainties and their possible cumulative effect
on the FSs.

7.3 Results of Audit

The audit opinions issued on CY 2020 FSs and operations of 305 NGAs, and State
Universities and Colleges (SUCs) and Stand - Alone Agencies (SAAs) are broken down
as follows:

Type of Opinion No. of NGAs No. of SUCs/SAAs Total %

Unmodified 88 19 107 35.08
Qualified 88 100 188 61.64
Adverse 5 2 7 2.30
Disclaimer 2 1 3 0.98
Total Opinions Issued 183 122 305 100.00

MLs were issued to agencies that failed to submit on time their FSs for audit as required
under Section IV.B.3 of COA Memorandum No. 2014-011 dated October 21, 2014.
These MLs were considered issued in lieu of the AAR and posted in the COA website.

The 107 agencies and SUCs issued with an unmodified or clean audit opinion follow:

1. AFP-Commissary and Exchange Service (AFPCES)

2. AFP-General Headquarters (AFP,GHQ)
3. Agricultural Credit Policy Council (ACPC)
4. Anti-Money Laundering Council (AMLC)
5. Apayao State College (ASC)
6. Aurora State College of Technology (ASCoT)
7. Board of Investments (BOI)
8. Bureau of Broadcast Services (BBS)
9. Bureau of Communication Services (BCS)
10. Bureau of Immigration (BI)
11. Bureau of Jail Management and Penology (BJMP)
12. Bureau of Workers with Special Concerns- Social Amelioration Program
(BWSC-SAP)
13. Cagayan State University (CSU)
14. Career Executive Service Board (CESB)
15. Central Board Assessment Appeals (CBAA)
16. Civil Aeronautics Board (CAB)
17. Climate Change Commission (CCC)
18. Commission on Appointments (CA)
19. Commission on Filipino Language (CFL)
20. Commission on Filipino Overseas (CFO)

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21. Commission on Human Rights (CHR)
22. Court of Tax Appeals (CTA)
23. Department of Energy (DOE)
24. Department of Labor and Employment (DOLE)
25. Department of the Interior and Local Government (DILG)
26. Department of Tourism (DOT)
27. Design Center of the Philippines (DCP)
28. Don Honorio Ventura Technological State University (DHVTSU)
29. Food and Nutrition Research Institute (FNRI)
30. Foreign Service Institute (FSI)
31. Games and Amusements Board (GAB)
32. Governance Commission for GOCCs (GCG)
33. Government Procurement Policy Board - Technical Support Office (GPPB-
TSO)
34. House of Representatives (HOR)
35. House of Representatives Electoral Tribunal (HRET)
36. Human Settlement Adjudication Commission (HSAC)
37. Ilocos Sur Polytechnic State Colleges (ISPSC)
38. Industrial Technology Development Institute (ITDI)
39. Institute for Labor Studies (ILS)
40. Insurance Commission(IC)
41. Intellectual Property Office of the Philippines (IPOPHL)
42. Intramuros Administration (IA)
43. Isabela State University(ISU)
44. Kalinga State University (KSU)
45. Legislative - Executive Development Advisory Council (LEDAC)
46. Local Government Academy (LGA)
47. Mariano Marcos State University (MMSU)
48. Marikina Polytechnic College (MPC)
49. MSU-Tawi-Tawi College of Technology and Oceanography (MSU-TCTO)
50. Municipal Development Fund Office (MDFO)
51. National Anti- Poverty Commission (NAPC)
52. National Archives of the Philippines (NAP)
53. National Book Development Board (NBDB)
54. National Bureau of Investigation (NBI)
55. National Commission on Indigenous Peoples (NCIP)
56. National Conciliation and Mediation Board (NCMB)
57. National Council for Children’s Television (NCCT)
58. National Defense College of the Philippines (NDCP)
59. National Economic and Development Authority (NEDA)
60. National Fisheries Research and Development Institute (NFRDI)
61. National Historical Commission of the Philippines (NHCP)
62. National Meat Inspection Service (NMIS)
63. National Parks and Development Committee (NPDC)
64. National Wages and Productivity Commission (NWPC)
65. National Water Resources Board (NWRB)
66. National Youth Commission (NYC)
67. News and Information Bureau (NIB)
68. North Luzon Philippine State College (NLPSC)
69. Nueva Vizcaya State University (NVSU)

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 70. Office for Transportation Security (OTS)
71. Office of the Government Corporate Counsel (OGCC)
72. Office of the President (OP)
73. Office of the Presidential Adviser on the Peace Process (OPAPP)
74. Office of the Solicitor General (OSG)
75. Office of the Vice President (OVP)
76. Office of Transportation Cooperatives (OTC)
77. Overseas Workers Welfare Administration (OWWA)
78. Palompon Institute of Technology (PIT)
79. Pangasinan State University (PSU)
80. Partido State University (PSU)
81. Philippine Air Force (PAF)
82. Philippine Commission on Women (PCW)
83. Philippine Council for Agriculture and Fisheries (PCAF)
84. Philippine High School for the Arts (PHSA)
85. Philippine National Volunteer Service Coordinating Agency (PNVSCA)
86. Philippine Navy (PN)
87. Philippine Racing Commission (PhilRaCom)
88. Philippine Space Authority (PhilSA)
89. Philippine Trade Training Center (PTTC)
90. Presidential Broadcast Staff - RTVM (PBS-RTVM)
91. Presidential Commission on Good Government (PCGG)
92. Presidential Electoral Tribunal (PET)
93. Presidential Legislative Liaison Office (PLLO)
94. Presidential Management Staff (PMS)
95. Public-Private Partnership Center of the Philippines (PPPCP)
96. Securities and Exchange Commission (SEC)
97. Senate Electoral Tribunal (SET)
98. Senate of the Philippines
99. Tariff Commission (TC)
100. Tarlac Agricultural University (TAU)
101. Tarlac State University (TSU)
102. Tawi-Tawi Regional Agricultural College (TRAC)
103. Technical Cooperation Council of the Philippines (TCCP)
104. Toll Regulatory Board (TRB)
105. UNESCO National Commission of the Philippines (UNACOM)
106. University of Northern Philippines (UNP) -Vigan, Ilocos Sur
107. Veterans Memorial Medical Center (VMMC)

The 188 agencies and SUCs issued with qualified opinion follow:

1. Abra State Institute of Sciences and Technology (ASIST)

2. Adiong Memorial Polytechnic State College
3. Advanced Science and Technology Institute (ASTI)
4. Agusan del Sur State College of Agriculture and Technology (ASSCAT)
5. Aklan State University (ASU)
6. Basilan State College (BSC)
7. Bataan Peninsula State University
8. Batanes State College (BSC)
9. Batangas State University (BatStateU)

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10. Benguet State University (BSU)
11. Bicol State College of Applied Science and Technology (BISCAST)
12. Bicol University (BU)
13. Biliran Province State University (BiPSU)
14. Bohol Island State University(BISU)
15. Bukidnon State University (BukSU)
16. Bulacan Agricultural State College (BASC)
17. Bulacan State University (BulSU)
18. Bureau of Corrections (BuCor)
19. Bureau of Fire Protection (BFP)
20. Bureau of Internal Revenue (BIR)
21. Bureau of Local Government Finance (BLGF)
22. Bureau of the Treasury - National Government (BTr-NG)
23. Bureau of the Treasury (BTr) - Proper
24. Camarines Norte State College (CNSC)
25. Camarines Sur Polytechnic College (CSPC)
26. Camiguin Polytechnic State College (CPSC)
27. Capiz State University (CPSU)
28. Caraga State University (CSU)
29. Carlos Hilado Memorial State College (CHMSC)
30. Catanduanes State University (CSU)
31. Cavite State University (CvSU)
32. Cebu Normal University (CNU)
33. Cebu Technological University (CTU)
34. Central Bicol State University of Agriculture (CBSUA)
35. Central Luzon State University (CLSU)
36. Central Mindanao University (CMU)
37. Central Philippines State University (CPSU)
38. Civil Service Commission (CSC)
39. Commission on Audit (COA)
40. Commission on Higher Education (CHED)
41. Compostela Valley State College (CVSC)
42. Cooperative Development Authority (CDA)
43. Cotabato City State Polytechnic College (CCSPC)
44. Cotabato Foundation College of Science and Technology (CFCST),
Doroluman, North Cotabato
45. Council for the Welfare of Children CWC)
46. Court of Appeals (CA)
47. Dangerous Drugs Board (DDB)
48. Davao del Norte State College (DNSC)
49. Davao del Sur State College (DSSC)
50. Davao Integrated Development Program -Project Management Office (DIDP-
PMO)
51. Department of Agriculture (DA)
52. Department of Budget and Management (DBM)
53. Department of Education (DepEd)
54. Department of Finance (DOF)
55. Department of Human Settlement and Urban Development (DHSUD)
56. Department of Justice (DOJ)
57. Department of National Defense (DND)

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58. Department of Public Works and Highways (DPWH)
59. Department of Science and Technology (DOST)
60. Department of Social Welfare and Development (DSWD)
61. Department of Transportation (DOTr)
62. Don Emilio B. Espinosa Memorial State College of Agriculture and
Technology (DEBESMSCAT)
63. Don Mariano Marcos Memorial State University (DMMMSU)
64. Early Childhood Care and Development Council (ECCDC)
65. Eastern Samar State University(ESSU)
66. Eulogio “Amang” Rodriguez Institute of Science and Technology (EARIST)
67. Fertilizer and Pesticide Authority (FPA)
68. Film Development Council of the Philippines (FDCP)
69. Forest Products Research and Development Institute (FPRDI)
70. Government Arsenal (GA, DND)
71. Guimaras State College (GSC)
72. Human Rights Violations Victim’s Memorial Commission (HRVVMC)
73. Ifugao State University(IFSU)
74. Iloilo Science and Technology University (ISAT-U)
75. Iloilo State College of Fisheries (ISCOF)
76. Inter-Country Adoption Board (ICAB)
77. Josefina H. Cerilles State College (JHCSC)
78. Juvenile Justice and Welfare Council (JJWC)
79. Laguna State Polytechnic University (LSPU)
80. Land Registration Authority (LRA)
81. Leyte Normal University (LNU)
82. Marawi Resort Hotel, Inc. (MRHI)
83. Marinduque State College (MSC)
84. Maritime Industry Authority (MARINA)
85. Metal Industry Research Development Center (MIRDC)
86. Mindanao Development Authority (MinDA)
87. Mindanao State University (MSU)- Main Campus and MSI
88. Mindanao State University (MSU)-Maguindanao
89. Mindanao State University(MSU) – General Santos
90. Mindanao State University-Iligan Institute of Technology (MSU-IIT)
91. Mindanao State University-Naawan (MSU-Naawan)
92. Mindoro State College of Agriculture and Technology (MinSCAT)
93. Mines and Geosciences Bureau (MGB)
94. Mountain Province State Polytechnic College (MPSPC)
95. Movie and Television Review and Classification Board (MTRCB)
96. MSU-Sulu
97. National Academy of Science and Technology (NAST)
98. National Commission on Culture and the Arts (NCCA)
99. National Commission on Muslim Filipinos (NCMF)
100. National Council on Disability Affairs (NCDA)
101. National Labor Relations Commission (NLRC)
102. National Library of the Philippines (NLP)
103. National Maritime Polytechnic (NMP)
104. National Museum (NM)
105. National Nutrition Council (NNC)
106. National Police Commission (NAPOLCOM)

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107. National Printing Office (NPO)
108. National Privacy Commission (NPC)
109. National Research Council of the Philippines(NRCP)
110. National Tax Research Center (NTRC)
111. National Telecommunications Commission (NTC)
112. Negros Oriental State University (NORSU)
113. Northern Iloilo Polytechnic State College (NIPSC)
114. Northern Negros College State College of Science and Technology
(NONESCOST)
115. Northwestern Mindanao State College of Science and Technology
(NMSCST)
116. Northwestern Samar State University (NwSSU)
117. Nueva Ecija University of Science and Technology (NEUST)
118. Occidental Mindoro State College (OMSC)
119. Office of Civil Defense (OCD)
120. Optical Media Board
121. Palawan Council for Sustainable Development Staff(PCSDS)
122. Palawan State University (PSU)
123. Pampanga State Agricultural University (PSAU)
124. Parole and Probation Administration (PPA)
125. Philippine Army (PA)
126. Philippine Atmospheric Geophysical Astronomical Services Administration
(PAGASA)
127. Philippine Carabao Center (PCC)
128. Philippine Center for Postharvest Development and Mechanization
(Philmech)
129. Philippine Coast Guard (PCG)
130. Philippine Competition Commission (PCC)
131. Philippine Council for Agriculture, Aquatic and Natural Resources Research
and Development (PCAARRD)
132. Philippine Council for Health Research and Development (PCHRD)
133. Philippine Council for Industry and Energy and Emerging Research
Development (PCIEERD)
134. Philippine Drug Enforcement Agency (PDEA)
135. Philippine Information Agency (PIA)
136. Philippine Institute of Volcanology and Seismology (PHIVOLCS)
137. Philippine Merchant Marine Academy (PMMA)
138. Philippine National Police (PNP)
139. Philippine Normal University (PNU)
140. Philippine Nuclear Research Institute (PNRI)
141. Philippine Overseas Employment Administration (POEA)
142. Philippine Public Safety College (PPSC)
143. Philippine Science High School System (PSHSS)
144. Philippine Sports Commission (PSC)
145. Philippine State College of Aeronautics (PhilSCA)
146. Philippine Statistical Research and Training Institute (PSRTI)
147. Philippine Statistics Authority (PSA)
148. Philippine Textile Research Institute (PTRI)
149. Philippine Veterans Affairs Office (PVAO)
150. Polytechnic University of the Philippines (PUP)

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 151. President Ramon Magsaysay Technological University (PRMTU)
152. Presidential Communications Operations Office (PCOO)
153. Privatization Management Office (PMO)
154. Procurement Service (PS)
155. Professional Regulation Commission (PRC)
156. Public Attorney’s Office (PAO)
157. Quirino State University (QSU)
158. Rizal Technological University (RTU)
159. Romblon State University (RSU)
160. Samar State University (SSU)
161. Sandiganbayan
162. Science and Technology Information Institute (STII)
163. Science Education Institute (SEI)
164. Siquijor State College (SSC)
165. Sorsogon State College (SSC)
166. Southern Leyte State University (SLSU)
167. Southern Luzon State University (SLSU), Quezon Province
168. Southern Philippines Agribusiness and Marine and Aquatic School of
Technology (SPAMAST)
169. Sultan Kudarat State University (SKSU)
170. Sulu State College (SSC)
171. Surigao del Sur State University (SDSSU)
172. Surigao State College of Technology (SSCT)
173. Technical Education and Skills Development Authority (TESDA)
174. Technological University of the Philippines (TUP) System
175. Technology Application Promotion Institute (TAPI)
176. University of Antique (UA)
177. University of Eastern Philippines (UEP)
178. University of Rizal System (URS), Morong
179. University of Science and Technology of Southern Philippines (USTsP)
(formerly MUST and MOSCAT) - CDO Campus
180. University of Southeastern Philippines (USeP)
181. University of Southern Mindanao (USM), Kabacan
182. USTsP - Claveria Campus
183. Visayas State University (VSU)
184. West Visayas State University (WVSU)
185. Western Mindanao State University (WMSU)
186. Western Philippine University (WPU)
187. Zamboanga City State Polytechnic College (ZCSPC)
188. Zamboanga State College of Marine Science and Technology (ZSCMST)

On the other hand, the following seven agencies and SUCs were issued with an adverse
opinion:

1. Bureau of Customs (BOC)

2. Department of Foreign Affairs (DFA)
3. Department of Health(DOH)
4. Eastern Visayas State University (EVSU)
5. Jose Rizal Memorial State University (JRMSU)
6. Presidential Commission on Urban Poor (PCUP)

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 7. Supreme Court of the Philippines (SCP)

The bases for the Auditor’s qualified and adverse opinion, among others, are the
following:

a) unreliable Cash and Cash Equivalents account balances due to various

accounting errors and omissions resulting in significant misstatements, in view
of, among others, unrecorded or delayed recording of collections and deposits,
and erroneous recording of collections; unreconciled variance between book
and bank balances and non-recognition of reconciling items requiring
adjustments/corrections; unsupported book adjustments; unrecorded dormant
bank accounts or closure of various dormant bank accounts with net debit
balance and insufficient supporting documents; non-reversion or closing of the
balance of lapsed NCAs; absence of BRSs in some bank accounts; non-
restoration of stale checks to cash; existence of abnormal or negative balances;
inclusion of SL captioned “For Reconciliation”; and and other lapses in
accounting cash transactions.

b) inaccurate balances of Receivable accounts, particularly the Due from

NGAs/GOCCs, Accounts Receivable, Other Receivables and Inter-Agency
Receivables on account of, among others, non-accrual of receivables;
misclassification of accounts and other transactions; unrecorded billings and
unrecorded deliveries/receipt of airline tickets and refunds made by PS-DBM;
non-provision of allowance for impairment; significant variance between the
records of the PS-DBM and the agency; unliquidated funds transferred to
various Implementing Agencies in spite of completion of intended purposes;
over/non-recording of liquidation reports; unadjusted negative balances;
unsupported adjustments; existence of dormant balances; absence of
subsidiary records; and other errors and omissions in recording Receivable
accounts;

c) unreliable Inventory/Property, Plant, and Equipment balances given the

unrecorded assets/purchases/donations/transfers and issuances of supplies and
materials or fully depreciated/lost/disposed/traded-in PPE; non-derecognition
of damaged and disposed inventory items; unsupported adjustments; non-
submission of the required reports; non-maintenance of PPELCs; existence of
Subsidiary Ledgers captioned as “For Reconciliation”, existence of
abnormal/negative subsidiary balances; non-provision of Impairment
Loss/Depreciation Expenses; erroneous classification of semi-expendable
properties under PPE; recognition of assets not yet delivered or inclusion of
completed projects under the Construction-in-Progress accounts; and other
errors and omissions in recording Inventory/PPE accounts;

d) inaccurate Other Assets balances in view of unrecognized other assets, errors

in recording transactions under Advances accounts; non-liquidation of cash
advances to officers and employees; inclusion of negative and dormant
account balances; unreconciled balances between the General Ledger and
schedules; and other deficiencies in recording liquidations and expenses;

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 e) unreliable Accounts Payable and Other Payables balances due to unrecorded
and unsupported payables; existence of negative SL balances and “For
Reconciliation”; non-reversion of long outstanding and undocumented
payables aged two years and above, accounts with abnormal/ negative
balances; and other errors and omissions in recording payables and liquidation
of transferred funds;

f) errors/misclassification and omissions such as recording of prior years’

expenses as current year’s expenses, unrecognized income and expenses
particularly, Tax Revenue, Service Income, Rental/Lease Income, Rental
Expenses, Training Expenses and various compensation expenses for
overtime, Contract of Service, and consultancy which affected the accuracy of
the balances of the accounts and related income and expense accounts;

g) unreliable Accumulated Surplus/(Deficit)/Equity accounts due to errors in

recording or non-recording of financial transactions;

h) CYs 2019 and 2020 figures not restated to reflect prior-year errors and
adjustments; and

i) other errors/ omissions/ deficiencies in recording transactions and

classification of accounts resulting in misstatements of various accounts and
affecting the fair presentation of the year-end balances in the FSs.

The Auditor issued a disclaimer of audit opinion on the following agencies due to various
accounting deficiencies such as non-maintenance of Subsidiary Ledgers and lack of
complete accounting records on various FS accounts with material balances, which
prevented alternative audit procedures to be undertaken to obtain sufficient and
appropriate evidence to prove the management’s assertions on the accounts, where the
possible effect could be material and pervasive:

1. Davao Oriental State College of Science and Technology (DOSCST)

2. Department of Environment and Natural Resources (DENR)
3. National Mapping and Resource Information Authority (NAMRIA)

7.4 Significant Audit Observations and Recommendations

The significant audit observations and recommendations on the audit of NGAs, submitted
by auditors of the National Government Sector (NGS) and Regional Offices (ROs) of this
Commission, which are discussed in detail in their respective CAARs/ AARs/ MLs are
summarized and presented below.

1. The implementation of various programs/ projects amounting to ₱25.95 billion

by 31 agencies needs improvement to ensure that the benefits are maximized and
enjoyed by the intended beneficiaries on time or the objectives are attained. The
deficiencies included, among others, delayed or non-delivery of procured items,
weak project monitoring, insufficient planning and risk management, delayed
release of project funds, and non-compliance with laws, rules and regulations.

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 Program/ Amount
No. Agency Observations
Project (Million ₱)
1 BFP Information The objective of ISSP to automate interior 322.82
System processes of integrated system in either web-
Strategic Plan based or using Global System for mobile
(ISSP) Phase II communication integration intranet accessible
to both BFP personnel and the public was not
fully achieved on its sixth year of
implementation despite its high fund
utilization rate. This condition could be
attributed to: a) partial completion of ISSP
Phase I with budget allocation of ₱206.686
million already transferred to PITC and PS-
DBM; b) undelivered Information and
Communication Technology Equipment for
Phase II valued at ₱54.765 million; c) failure
to conduct trainings in 2019 to 2020 as
programmed; and d) lax monitoring of ICT
projects.
2 CDA Mindanao The objectives of the Mindanao Peace and 18.75
Peace and Normalization through Cooperatives
Normalization Development Project were not fully attained
CODE due to various deficiencies noted in its
implementation. In Kidapawan Extension
Office (EO), there were unliquidated project
funds, while in Pagadian EO, the project was
not completed in CY 2019 as envisioned due
to laxity of personnel in monitoring the
activities of the Project.
3 CHED Student Loan The SLPTE-ST, one of the component 1,000.00
Program for programs under UAQTE, with a budget
Tertiary allocation of ₱1 billion, encountered an
Education – implementation setback in view of the
Short-term deficiency in the MOA with the DBP. The
Basis (SLPTE- MOA covers only the disbursement of funds
ST) to student-beneficiaries but has no provision
on loan repayment facilities and mechanism
as required in UniFAST Memorandum
Circular No. 2018-003. Hence, no
beneficiaries were able to avail of the loan
program, and as a consequence, the fund
remained unutilized since its inception in CY
2018.
4 CHR Financial and Out of the 291 total approved beneficiaries for 2.01
Community CHR NCR, ROs I, IVA, IVB and XII, only 40
Assistance percent of a total of 117 were granted total
project benefits of ₱1.83 million. The amount of
₱0.183 million was not yet released as 35
beneficiaries have insufficient contact
information needed for processing of benefit
claims. On the other hand, processing of 139
benefit claims was hampered due to delayed
request for additional FA fund from CHR
Central Office. Thus, the objectives of
Financial and Community Assistance project
has not fully been realized/attained.
5 DA I-Build and I- The 67 ODA Funded I-Build and I-Reap 2,178.63
Reap Subprojects amounting to ₱2.179 billion are
Subprojects already beyond the target date of completion

279
 Program/ Amount
No. Agency Observations
Project (Million ₱)
thereby delaying the delivery of benefits to the
intended recipients.
Rice The distribution of seeds, fertilizers, livestock 1,019.50
Resiliency and feeds in seven DA offices amounting to
Project ₱1.019 billion was not compliant with DA
Memorandum Order (MO) Nos. 19 and 31,
series of 2020, Items A and B.II of DA MC
No. 26, series of 2020, DA MC No. 12 s.
2020, and DA MO No. 52.
6 DepEd Technical- Intended beneficiaries of the Technical- 234.66
Vocational- Vocational-Livelihood learning tools and
Livelihood equipment were deprived of its immediate use
Program in DepEd Regions I (ROP), III (DO
Pampanga), VIII (ROP), XIII (ROP) and
CAR due to: a) undelivered/delayed delivery,
including for unterminated contracts, totaling
₱86.638 million b) deficiencies found in the
post-audit of disbursements amounting to
₱34.529 million including a take-over of
contract of ₱1.215 million, c) undetermined
status of delivery and implementation of four
contracts totaling ₱103.3 million as a result of
lack of proper monitoring and assessment, and
d) terminated contracts worth ₱10.195
million, indicating non-compliance with
Department Order Nos. 8 series of 2016and
046 s. 2018.
7 DFA ESB Absence of prescriptive guidelines caused 275.73
delays, from one to seven years, in the release
of ESB totaling ₱66.531 million to the
beneficiaries, and funds of ₱209.201 million
remained idle from 1 to 11 years in
custodianship as of December 31, 2018.
8 DHSUD Development DHSUD-CVR and DHSUD-NCR failed to -
Projects with inspect and monitor 145 out of 261, and 20 out
issued License of 71 development projects, respectively, with
to Sell issued License to Sell from CYs 2018 to 2020
within the prescribed period indicated under
Section 11, of the HLURB Board of
Commissioners Resolution No. 985 s. 2019.
Thus, any violations /deficiencies with
corresponding imposition of fines/penalties
defined under the HLURB Board of
Commissioners Resolution No. 760 s. 2004
could not be charged immediately against
erring developers, and the needed information
or data on the status of the existing projects of
the developers are not readily made available
to protect the buying public.
9 DOE Procurement The Enhanced Energy Virtual One-Stop Shop 34.50
of enhanced System project worth ₱34.496 million
energy virtual disclosed (a) delayed completion of the
one-stop shop project according to the terms and conditions
system of the contract; (b) insufficient documentation
to comply with the conditions of awarding the
contract through direct contracting; and
(c) other deficiencies in the contract
documents compromising the propriety,

280
 Program/ Amount
No. Agency Observations
Project (Million ₱)
transparency, efficiency and economy in the
procurement of services.
10 DOLE SPES and Unclaimed payments of ₱0.716 million for 0.72
TUPAD grants in CYs 2017 to 2018 still at the
possession of the MLFSI
11 DOLE - SAP and The insufficient reporting, monitoring, 422.77
BWSC SAWP validation, and coordination with the
concerned stakeholders by the BWSC on the
shares, distribution and balances of the CBF
resulted in the accumulation of undistributed
CBF of which ₱161.331 million is deemed
forfeited in favor of the socioeconomic
programs for sugar workers pursuant to
Section 9 of RA No. 6982 dated May 1, 1991.
This condition affected the full attainment of
the program’s objective of augmenting the
sugar workers income to enjoy decent living
for themselves and their families and the
reliability of the status report of the CBF as of
December 31, 2020.
12 DOST Grants in Aid- Low turnout of research projects for 5,074.01
funded commercialization and technology transfer.
Research Inadequate monitoring of Grants in Aid-
Projects funded projects resulted in the low turnout of
research projects for commercialization and
technology transfer with only 4.21 percent
and 27.36 percent, respectively, out of the 95
projects evaluated. This is not supportive of
the overall goal of the DOST that is “to ensure
that the results of scientific and technological
activities are properly applied and utilized to
accelerate economic and social development.”
13 DOT “Mi Ciudad : DOT RO IX Management was not able to 3.26
Limpio Y fully utilize the fund amounting to ₱3.260
Floriao” million for the Mi Ciudad Limpio Y Floriao
project project with a residual amount of ₱2.02
million as of December 31, 2020 which
remained unutilized for more than three years.
14 DOTr - Motor Vehicle Various circumstances caused delays in the 3,186.01
LTO License Plate procurement of plates, thus, resulted in the
Standardizatio undelivered license plates of the registrants
n Program nationwide from CY 2014 to CY 2020
amounting to ₱2.159 billion corresponding to
8,120,837 pieces of MC and 2,632,302 pairs
of replacement MV license plates. Further, the
undelivered replacement plates indicated
lapses in the performance by the LTO
Management of one of its mandates, thus,
depriving the registrants of their right to
receive the plates they have paid for and
affecting the efficient apprehension of the
traffic violators.
15 DSWD Social Pension Delayed implementation of the SocPen 2,402.73
Program of FOs NCR, 3 and 8 for CY 2020.
Sustainable The FO 5 have processed payments of Seed 24.43
Livelihood Capital Fund grants for SLP to 79 identified
Program Civic Society Organizations amounting to
₱24.430 million in CYs 2017 and 2018

281
 Program/ Amount
No. Agency Observations
Project (Million ₱)
despite incomplete submission by CSOs of
the required documents and poor
implementation of Skills Training Programs.
This resulted in staled/cancelled checks and
deprived the intended beneficiaries of their
benefits hence, defeating the purpose of
improving the socio-economic conditions of
the poor, vulnerable and disadvantaged
households.
Skills Training Poor implementation of the Skills Training 301.10
Program Program under the SLP
SAP The prevalent transfer in FO 1 from one 71.42
Accountable Officer to another of the
unexpended amount of ₱14.108 million and
over the counter withdrawals for the payment
of additional SAP beneficiaries amounting to
₱57.316 million is not in keeping with the
DSWD Memorandum dated May 22, 2020
and COA Circular 97-002 dated February 10,
1997.
The eligibility of the targeted beneficiaries of 780.71
the cash assistance under the SAP for FOs
CAR, 2, 7, 8 and 11 were not sufficiently
validated resulting in the unutilized SAP
funds amounting to ₱780.712 million thus
denying 139,300 beneficiaries who are
qualified to avail the program.
16 GCG ERP Software Only 25 percent or ₱1.5 million of the ₱6 6.00
Solution million contract for the procurement of
Enterprise Resource Planning Software
Solution was completed and delivered by the
supplier within the stipulated period in the
MOA and its approved extension, affecting
GCG’s project targets in CY 2020 of
enhancing and improving the internal
processes and the tracking of accurate
information related to Human Resource and
inventory control of the agency.
17 GHQ, Various Forty-one projects with an aggregate cost of 7,764.97
AFP ₱6.812 billion were not completed within the
contract period; nine projects totaling
₱940.463 million were suspended; and one
project worth ₱12.213 million was
terminated.
18 LRA BOO Delayed completion of the Land Titling Undeter-
agreement Computerization Project’s deliverables on mined
between administrative support application systems
LARES and such as Human Resource Management
LRA for the System, Physical Resource Management
implementa- System and Financial Management
tion of the Information System resulted in various
Land Titling system errors and operational inefficiencies;
Computerizati thus, the objective of the project was not fully
on Project achieved in accordance with Section 2.03(1)
of the BOO agreement
19 MMDA Philippine Other programs and projects planned by the -
Youth agency for the year such as internship
Development opportunities and other programs/ activities

282
 Program/ Amount
No. Agency Observations
Project (Million ₱)
Plan Programs/ for the PYDP were not implemented due to
Projects unavailability of participants and schedules
(PYDP) brought about by the pandemic..
20 NDCP Design and Gaps in planning, monitoring and supervision 521.73
build of (i) one of two Design and Build projects of the
International agency with contract cost of ₱521,729,673.46
Student resulted in delayed implementation of the
Dormitory and projects caused by change of project site.
Quarters Moreover, mobilization fees amounting to
building; and ₱78,259,451.01 were paid to contractor in
(ii) Academic 2018 and 2019 but the project construction
Building with works have not yet been started as of
Amphitheater December 31, 2020
Classroom
21 NTC NTC Fixed and The Procurement of the NTC fixed and 13.20
mobile mobile broadband benchmarking system
broadband totaling ₱13.2 million remained unfinished
benchmarking despite the expiration of contract time, thus,
system items procured cannot be used immediately
by the agency, exposing the same to
technological obsolescence
22 PBS- Information Fifty-two coverages that were intended for -
RTVM dissemination release to the public were not uploaded to the
agency’s official online platforms, while 14
“For Release” coverages were either uploaded
to only one or two platforms, affecting the
availability to the public of a timely, accurate,
and relevant information on the activities,
programs and pronouncements of the national
leadership.
23 PCC Carabao- Contract for the purchase of 60 buffalos under 2.85
Based the CBIN for Misamis Oriental was
Business terminated due to the failure of the supplier to
Improvement deliver required quantity of the carabaos
Network resulting in delayed implementation of the
(CBIN) Project project as well as delayed delivery of the
supposed benefits to the targeted beneficiaries
contrary to the guidelines of the project and
the declared policy of the State on the efficient
use of government resources.
Establishment Out of the funds of ₱26.908 million received 26.91
of Province- from the PCC National Headquarters and
Wide Carabao- Gene Pool for the implementation of the
Based CBIN, 73.32% or ₱19.728 million was
Business utilized, and the balance of ₱7.18 million or
Improvement 26.68% was reverted to the National Treasury
Network at the for the suspended works and activities
PCC at Central programmed under the said project due to
Luzon State constraints brought about by the pandemic;
University thus, the optimum expected benefits to be
derived therefrom were not fully realized.
Establishment Only 10 out of 40 heads of buffalo subject of 0.97
of Province- procurement were delivered to PCC at
Wide Carabao- MMSU thus, depriving the farmer-
Based beneficiaries of the benefits that could be
Business derived therefrom. Moreover,
Improvement animal/zoological supplies amounting to
Network at the ₱0.218 million were distributed to a

283
 Program/ Amount
No. Agency Observations
Project (Million ₱)
PCC at Cooperative which is not a legitimate
Mariano recipient of buffaloes depriving the
Marcos State legitimate/intended beneficiaries from
University enjoying needed support and benefits under
the same program.
Modified The Modified "Paiwi" or Trusteeship Scheme 6.80
“Paiwi” or of the Dairy Buffalo Program of the
Trusteeship Philippine Carabao Center has substantially
Scheme of the attained its objective of providing additional
Dairy Buffalo income but instances of deaths and cases of
Module culling of buffaloes occurred due to health
Program issues, thus, hindering the efficient
implementation and attainment of optimum
program results.
24 PCOO PhilSys Project The implementation of activities under the 93.90
MOA between the PCOO and PSA as well as
the utilization of the PSA transferred funds for
the PhilSys project were with deficiencies as
follows: (a) fund received from PSA
amounting to ₱93.9 million had been idle for
more than one year due to the non-transfer of
funds to PIA and PTNI, and the non-
implementation of the planned activities for
Mainstream Media such as media placements
in Top TV, radio stations and others; (b)
PCOO has yet to hire personnel for the
Monitoring Division of the PCOO PhilSys
Project Team; hence, submission of required
reports by the Implementing Agencies was
not being closely monitored; and (c) the
related Report of Disbursements submitted to
the Audit Team were not supported with
documents; thus, validity of expenditures
charged against the PSA transferred funds
could not be ascertained.
25 PCUP Regular PCUP spent administrative costs of ₱8.862 8.86
Operations million, which was more than the budgeted
amount, resulting in approximate excess costs
of ₱7.083 million with an accomplishment
rate of only 17.79 percent or 2,022 paid
Informal Settler Families out of 11,367
targeted ISFs. Moreover, the agency incurred
11 to 711 days of delay in its submission of
liquidation report, contrary to the provision of
the Implementing Rules and Regulations of
the MOA between the Agency and the DILG,
and Section 4.6 of COA Circular No. 94-013.
26 PhilMech Rice Lapses were noted in the implementation of 5.10
Competitiveness RCEP such as a) late deliveries of 3,503 units
Enhancement of farm machineries and equipment to the
Program Farmers and Cooperatives Association
(RCEP) beneficiaries; and b) failure to conduct
required trainings to 680 FCA-beneficiaries
out of the target number of 1,860 hindering
the prompt turnover of the farm
machineries/equipment.
27 PMS Financial The absence of a monitoring report on the -
assistance and status of assistance extended to battle/duty

284
 Program/ Amount
No. Agency Observations
Project (Million ₱)
support to casualties and their families impacts on the
wounded guidance of the Office of the President’s
soldiers as implementation of the SCPF to provide the
provided for in financial assistance and support urgently
the Office needed by the beneficiaries of the uniformed
Order No. personnel who were either killed or wounded
2017-035 in action as offices responsible failed to
dated March properly coordinate in accordance with their
21, 2017. respective functions as provided for in the
Office Order No. 2017-035 dated March 21,
2017.
28 PNRI Enhancing the The failure to enter into Memorandum of 74.19
Safety and Agreement between the Agency and the
Throughput of International Atomic Energy Agency for the
the Gamma procurement of various supplies/materials/
Irradiation equipment amounting to ₱74.191 million
Facility resulted in the delayed implementation of the
project “Enhancing the Safety and
Throughput of the Gamma Irradiation
Facility” and loss of opportunity for the
government to bargain and enforce the
undertaking of the procurement in an effective
and timely manner contrary with Section 2 of
P.D. 1445
29 SEC Funds held in Lapses in the management of funds held in 68.43
trust trust totaling ₱68.433 million as at year-end
had not enabled the delivery of the funds’
benefits to their rightful beneficiaries,
including the NG which is not in accordance
with Section 139 of RA No. 11232 and
Sections 93 and 94 of the Revised Corporation
Code.
30 TCCP Culture Budget allocation of ₱2.242 million for 2.24
Heritage trainings to implement the Economic and
Preservation Technical Skills Program was not utilized
and Eco- since alternative virtual trainings were not
Tourism for planned at the onset of the COVID-19
Sustainable pandemic.
Development

31 TESDA Scholarship Unfavorable outcomes in the implementation Undeter-

Programs of Scholarship Programs in CO and 12 ROs mined
such as: a) non-procurement/late procurement
of toolkits for CYs 2018, 2019 and 2020STEP
and UAQTEA Programs resulted in non-
provision of toolkits to scholars b) National
Certificate for Driving for 3,719 graduates not
recognized by the Land Transportation
Office; and c) late releases/unpaid
Allowances or Training Benefits totaling
₱45.435 million and other deficiencies hinder
the attainment of the overall objective of the
Scholarship Programs.
Total 25,250.80

285
Recommendations

The Auditors recommended the following courses of action:

Agency Recommendation
CHED Revisit the MOA with DBP and make the necessary revisions therein to include a
provision on loan repayment facilities and mechanism in order to address the setback
in the implementation of the SLPTE-ST and henceforth, enable the students to avail
the benefits of the program
CHR a) Require concerned CHR ROs to enhance payment processing by gathering
needed documents and contact information of beneficiaries so that Financial and
Community Assistance will be distributed on a timely basis; and

b) Direct the CHR NCR, ROs IVA and XII to study the trend on the number of
applicants and probable beneficiaries so that timely request and programming of
needed funding and processing of payments be made to increase the number of
beneficiaries to fully attain the purpose of the grants and to ensure that
government humanitarian services are timely received by those concerned.
DFA Revisit and evaluate the relevance of Foreign Service Circular No. 109-02 dated June
24, 2002 in relation to current practice, and prepare definitive and prescriptive
guidelines and procedures in the handling of ESB especially in the processing of
benefit claims to facilitate the immediate release to the beneficiaries.
DHSUD a) Evaluate/assess factors affecting performance of its personnel and make the
proper recommendation for improvement, so the enforcement of the regulatory
function of the agency is properly addressed; and

b) Expedite the filling of vacant plantilla positions to add complement to Housing

and Real Estate Development Regulation Division so that the expected
performance of the agency can be achieved.
DOE Coordinate with other government agencies to submit the streamlined processes
pertaining to them to facilitate the completion and implementation of the enhanced
EVOSS system.
DOLE a) Include in the MOA with the MLFSI provisions on the holding period for the
unclaimed amounts and the responsibility of reporting the same to the RO; and

b) Improve their communication and information drive system to ensure that all
beneficiaries are duly informed of the availability of payment, including the
period within which beneficiaries are allowed to claim
DOLE- a) Coordinate with the ROs on the monitoring of the compliance by the concerned
BWSC Mills/PAs/Coops/PMs on the distribution of the CBF, validation of the
undistributed CBF and forfeited amount, and intensify the distribution and
remittance thereof; otherwise institute appropriate actions on the defaulting
Mills/PAs/Coops/PMs;

b) Require the Accounting Divisions of both the ROs and the BWSC-CO to have a
detailed and updated CBF status report per RO for control and monitoring
purposes and submit the same to the Audit Team, for verification; and

c) Coordinate with the STC to include in their regular meetings the issues raised
and to come up with a resolution that will monitor and prevent the accumulation
of unreleased/undistributed CBF.
DOTr - Fast track the production of the backlog in MC plates and replacement MV plates
LTO from the existing contracts and subsequently issue the same to the respective
registrants nationwide.
MMDA a) Enhance the APP for Youth by defining the strategic interventions, unit offices
responsible and their respective budget allocation and sources of funding,
timeframe, indicators and targets to ensure proper identification and alignment
of issues, objectives and activities to contribute in the achievement of the
objectives and outcomes;

286
Agency Recommendation

b) Integrate all agency’s annual programs and projects for the youth and establish
a strict monitoring of implementation of proposed activities toward the
accomplishment of all programs and projects at year-end; and

c) Re-assess other identified issues and activities in coordination with other

implementing units within the agency to include activities and programs that are
essential and practical yet doable within the available timelines.
NDCP a) Strictly comply with Section 7 – Preliminary Design and Construction Studies
under Annex G – Guidelines for the procurement and implementation of
contracts for the Design and Build infrastructure projects of RA 9184 and its
revised IRR;

b) Require the contractor to renew the security bond to guarantee the performance
of its obligation;

c) Enforce liquidated damages from the claim of the contractor equal to at least one
tenth (1/10) of one percent of the cost of the unperformed portion of works for
every day of delay pursuant to Section 8.1, Annex E of the 2016 RIRR of RA
No. 9184
PBS- a) Direct the web administrators under the MPD to ensure that all confirmed “For
RTVM Release” video materials are uploaded to the Agency’s three official online
platforms in accordance with their customary practice, and pursuant to the
agency’s mandate of making available to the public a timely, accurate and
relevant information on the activities, programs and pronouncements of the
national leadership.

b) Fast track the finalization of the agency’s PAWIM, especially the guidelines for
its coverage activities to ensure that said activities are done in accordance with
the best practices and ISO standards.
PCC a) If possible, revisit the policies and guidelines of the “PAIWI” Scheme and
institute safeguards to prevent numerous deaths and culling of animals; and

b) Consider the statement under the dispositive portion of COA Decision No. 2018-
450 dated December 21, 2018 encouraging the PCC to conduct thorough
investigation on the deaths of the buffaloes to prevent further loss of government
property.
PMS Enjoin the Technical Close-in Team to properly coordinate on reporting
requirements with the Office of the Special Assistant to the President to ensure
proper guidance of the Office of the President or its authorized representative in the
implementation of the Socio-Civic Projects Funds.
PNRI a) Seek legal assistance from the DOST-Central Office Legal Division in drafting
for agreements in the transfer of funds for joint projects with International
Organizations;

b) Direct the program leader/project coordinator to make representation in the

IAEA in the immediate delivery of the source and closely monitor any
development thereto; and

c) Henceforth, secure a Standard Basic Assistance Agreement/Memorandum of

Agreement/Undertaking in all its fund transfers internationally regardless of the
recipient.
SEC a) Require the Special Hearing Panel to: (i) require the liquidators/receivers to
provide the updated information of the plan holders/beneficial owners or
claimants against the funds held in trust to come up with a database that will
facilitate the disposal of the fund balances, where appropriate; (ii) issue
notification on the filing of claims and make regular publication to expedite the
disposal of the fund balances, where appropriate; and (iii) determine idle funds
for escheat and refer the same to the Office of the General Counsel for the

287
 Agency Recommendation
initiation of escheat proceedings in favor of the Government in accordance with
the Rules of Court.

b) Direct the Management Committee to resolve the issue whether the funds pertain
to investment with Pryce Corporation or intended for distribution to the plan
holders and to facilitate the rehabilitation proceedings, when appropriate.

c) Management to put in place adequate and robust sets of procedures for the
management of the funds held in trust, including monitoring and reporting
thereon, to ensure that the funds’ benefits are delivered to the intended
beneficiaries at the shortest time possible.
Other a) Require PITC and/or PS DBM to immediately deliver long overdue procured
Agencies items for the implementation of the projects and to fast-track the procurement of
various goods, if any, and its immediate distribution to the end-users;

b) Conduct actual inspection of deliveries to ascertain quality and compliance with

the technical specifications per contract

c) Closely monitor and supervise the program/project implementation to ensure its

completion within the contract period and to gauge the effectiveness of the
project;

d) Create and maintain a data bank of information on beneficiaries during and

after completion of the program;

e) Closely coordinate and provide technical assistance to implementing agencies to

identify causes of delays to further prevent losses in terms of time and resources

f) Require full liquidation or immediately liquidate fund transfers and financial

assistance and refund to the Source Agency the unutilized amounts

g) Comply with the requirements set forth in the implementation of

programs/projects/activities in accordance with the provisions of the approved
guidelines and the MOA

h) Formulate and implement an action plan to put back on track completion of

pending projects and to enforce, where applicable, the employment of available
remedies provided under the Revised IRR of RA 9184 such as the imposition of
liquidated damages

i) Develop other plans/strategies on the implementation of programs/projects

appropriate during the pandemic

2. The implementation of various programs/projects by SUCs amounting to ₱1.67

billion had various deficiencies such as granting scholarship benefits to
unqualified students; non-alignment of curricular programs with its mandate
and not included in its priority courses; non-compliance by the student/
employee-grantee with the conditions set in the scholarship grant; below average
performance rating in licensure examinations; and inefficient management of
funds and poor planning and monitoring, hence, benefits were not maximized
and objectives were not fully attained.

Program/ Amount
No. Agency Observation
Project (Million ₱)
1 PMMA Academic The objective of the AEMET Project was not 121.50
Enhancement substantially attained as evidenced by the
of Maritime Agency’s (a) failure to meet the target number

288
 Program/ Amount
No. Agency Observation
Project (Million ₱)
Education of eligible scholars/trainees; (b) non-
and Training implementation of various projects with fund
(AEMET) allotment of ₱45.225 million due to poor
planning and execution strategies; and (c)
inaction on accounting flaws in the monitoring
of fund transfers and expenditures contrary to
the pertinent provisions of the Memorandum
of Agreement dated December 14, 2015 and
Section 4(6) of Presidential Decree (P.D.) No.
1445.
2 QSU CHED Scholarship benefits under the CHED 3.90
Scholarship Scholarship Program were granted to students
Program who were not enrolled in priority courses
outlined by CHED Memorandum No. 05, s.
2019 dated August 16, 2019 for SY 2019-
2020, thereby, defeating the purpose of the
program.
3 BASC Compliance Eight SUCs either offered curricular programs N/A
BPSU of the not aligned with their mandate under their
BSU curricular respective governing law and/or not included
DHVSU programs to in the listed priority courses as identified in the
NEUST the CHED CHED Memorandum Order no. 05, series of
PRMSU policies, 2019; or yet to undergo the required
TAU standards, independent accreditation under CMO No. 01,
TSU and series of 2005; or secure Certification of
guidelines Program Compliance under CMO No. 14, s.
2019 or obtain a Center of Excellence or
Center of Development status from CHED for
any of its programs, thus, raising doubt on the
capacity of the SUCs to institutionalize their
respective mandate.
4 MSU-IIT Faculty Management is very lax in enforcing 10.42
Development agreement to render return service by a
Program or number of faculty members granted with
Academic Fellowship Awards with the unpaid
Personnel expenditures of ₱10.416 million as of
Development November 30, 2020 for their Study Grants
Program which is not consistent with the Guidelines for
Faculty Development Program /Academic
Personnel Development Program and in
violation of the Fellowship Agreement
Contract executed and entered into by the
institute and the grantee, thus, defeating the
purpose and objectives of the program and the
maximum benefits that could have been
derived therefrom were not realized.
5 MPSPC Financial The fund transfer of ₱0.418 million 0.42
Literacy representing advance payment equivalent to
Program 40% of the total amount approved for the
Financial Literacy Program partnership of the
college with the Landbank Countryside
Development Foundation, Inc. remain
unutilized as of December 28, 2020 to the
detriment of target beneficiaries.
6 PSAU Higher The University has yet to offer new degree N/A
Education programs related to other academic disciplines
Program explicitly listed in its governing charter or the
(HEP) Republic Act No. 10605, limiting its capacity

289
 Program/ Amount
No. Agency Observation
Project (Million ₱)
to satisfy the increasing needs of the locality
for in-demand jobs related to business, health
services and accountancy. Moreover,
technical issues of the 17 lapsed Certificates of
Program Compliance (COPC) have yet to be
resolved by the CHED pursuant to CHED
Memorandum Order No. 14, s. 2019 while 6
undergraduate programs were not yet
accredited by an external accreditor under
CMO No. 01, series of 2005. Moreover, the
graduates’ employability factor and the
passing rates of graduates in licensure
examinations, were not utilized as inputs for
the strategic refinement of curricular program
contents and/or on the improvement of
academic support services that is ultimately
beneficial in the attainment of the University’s
goals and objectives. Also, the relevance and
quality of tertiary education provided by the
University have not been ensured in the
absence of an institutional, structured and
periodic assessment of risks and management
of the threats to graduates’ employability and
performance in licensure examinations.
7 CSU Human Numerous scholarship grantees failed to abide 8.46
8 BSU Resource with the terms and conditions set forth under Undeter-
Development the scholarship grant/ agreement entered into mined
9 BU Program with the SUCs. Despite this condition, the 7.53
SUCs were not imposing sanctions such as
refund for breach of contract, thus, may
imperil the school’s continuing program for
career and personnel development.
Consequently, non-compliance with the
contract may certainly cause, either
suspension, or disallowance, of all money
claimed including other incidental expenses
for breach of contract. (Employee-Grantees)
10 ASIST Income Income generating projects incurred net losses 0.43
11 CMU Generating due to lack of project monitoring 12.48
Projects
12 BASC Performance Seven SUCs either obtained licensure N/A
BPSU in licensure examination passing rates below the National
BSU examinations Passing Rate (NPR) or higher than the NPR
DHVSU and but with unsuccessful examinees higher than
NEUST employability the successful examinees casting doubt on the
PMMA of the capability of the College to produce
PRMSU graduates professionals in the affected fields
13 BU Skills The University’s provision of technical 313.02
Training assistance in collaboration with the
Program for Department of Social Welfare and
the Pantawid Development Field Office V under its Skills
Pamilya Training Program for the Pantawid Pamilya
beneficiaries beneficiaries with funding of more than ₱313
million was not fully attained due to a very low
percentage rate of accomplishment at 16.82
percent, in terms of targeted beneficiaries thus
defeating the purpose for which the project
was created almost three years ago.

290
 Program/ Amount
No. Agency Observation
Project (Million ₱)
14 PUP Special Trust Allocation, utilization and disbursements of 895.06
Fund STF were not in accordance with CHED
Memorandum Order No. 20, series of 2011,
and Section 4 (d) of RA No. 8292, due to: a)
non-compliance with the prescribed
percentage rate of allocation and the limitation
on adjustment/modification of the specific
budget allocation; b) below 40 percent
utilization of funds for Instruction, Research
Services, Extension Services, Administrative
Services and Production; and c) unallocated
actual collections and minimal utilization of
Fiduciary Funds; thereby adversely affecting
the effective and efficient delivery of
programs, projects and activities consistent
with the trifocal functions of the PUP, and the
accumulation of unutilized cash balances
maintained in the authorized government
depository banks.
15 ASIST Student The benefits of the SAFE for Loan program 1.12
16 MSU-IIT Assistance were not maximized due to the grant of loans 2.00
Fund for to non-qualified students, uncollected loans
Education aging 5 to 13 years and low utilization of loan
(SAFE) funds. Thus, defeating the purpose of the
program and the would be benefits that the
students could have derived from that
program.
17 DOSCST Tertiary Inefficient and non-release of the 1st Semester 14.90
Education of Academic Year 2019-2020 stipends to 699
Subsidy student-beneficiaries
18 ISU Unprogrammed utilization of the 3% 3.32
allocation for administrative support resulted
in non-allocation of resources for activities
that could have improved the implementation
of the program.
19 PUP a) late receipt, recording and reporting of the 55.37
fund transfers from CHED for Academic Year
2019-2020 subsidy totaling ₱55.373 million
resulting in delayed releases/distribution
thereof to the approved student-beneficiaries,
including the corresponding administrative
costs, of which a total of ₱28.758 million was
released only in 2021; b) delayed receipt of the
corresponding administrative costs; c) errors
in the courses or programs enrolled by the
students as reflected in the Masterlist; and e)
lack of specific rules on the liquidation of the
releases of the TES.
20 CSU Tulong The courses of 114 new student-grantees of 0.86
Dunong the Cagayan State University who are
Program qualified beneficiaries under the CHED-
Scholarship Programs were not among the
recognized priority courses enumerated under
CHED Memorandum Order No. 05 Series of
2019, thus, their eligibility to avail of the
Scholarship Program is questionable.

291
 Program/ Amount
No. Agency Observation
Project (Million ₱)
21 WVSU Various Delayed completion of 20 Special Projects 216.89
special totaling ₱216.890 million in the WVSU-Main
projects Campus contrary to the Memoranda of
Agreement with various Government
Agencies deprived the intended beneficiaries
of the timely usage thereof. Likewise,
unutilized funds amounting to ₱4.607 million
of 14 Special Projects already completed were
not returned to the source agencies as of
December 31, 2020, contrary to Section 4.9 of
COA Circular No. 94-013 dated December 13,
1994 and Section 63, Chapter 6 of
Government Accounting Manual, Volume I.
22 BU University The University’s Quarterly Physical Report of None
Operations Operation as of September 30, 2020,
registered an accomplishment of five or only
38 percent out of the 13 targets/performance
indicators which is far below the required
average of 70 percent, thus, may not warrant
the granting of CNA benefits for CY 2020,
inconsistent with pertinent provisions of
Budget Circular No. 2020-5 dated November
4, 2020.
Total 1,667.68

Recommendations

The Auditors recommended the following courses of action:

Agency Recommendation
PUP a) Comply with the required percentage of allocation and/or limitations on
adjustment or modification prescribed under CMO No. 20, series of 2011 in the
succeeding Academic Years, and submit appropriate justifications and/or Board
Resolutions on the deviations in allotment on specific thrust, programs/activities
of the PUP;

b) Make a representation with the CHED on the proposed modification of the said
CMO pursuant to Section 35 thereof, and furnish the Office of the Auditor with
a copy thereof;

c) Observe set timelines in the implementation and completion of plans/programs

and activities to ensure effective delivery of services and to address the needs of
the students and other stakeholders, pursuant to Section 24 of the CMO or
request for realignment of the budget, as appropriate;

d) Maximize the utilization of the STF and Fiduciary Fund, as budgeted, to ensure
accomplishment of the PUP’s trifocal functions of instruction, research and
extension services, production and administrative services, as well as the
intended purposes for which the fiduciary fees are collected

e) Constantly request from and coordinate with the Focal Person of CHED-
UniFAST for the timely release of the fund transfers, and eventually distribute
to the intended recipients within the semester of the grant, to maximize the utility
and benefits of the stipend; and

f) Make formal representation with CHED-UniFAST for the updating of the

Masterlist of the campuses, courses enrolled, among others, consistent with the

292
 Agency Recommendation
general provisions of the MOA that the parties mutually agree to perform and
abide thereby
QSU Inform immediately the CHED upon learning that some grantees included in the
master list of their CSP are not enrolled in priority courses outlined under CHED
Memorandum No. 5, s. 2019, and coordinate their possible replacements by students
who were enrolled in priority courses and were qualified based on the guidelines on
the grant of the CSP benefits
Other a) Require the Vice President for Academic Affairs to (i) revisit the programs with
SUCs very low College/University Passing Rates (CPRs/UPRs) for the last five years
and identify the causes of the poor performance in licensure examinations of its
graduates and adopt applicable interventions; (ii) conduct an evaluation on the
programs offered by the University on its performance in the areas of instruction,
research and publication, extension and linkages and institutional qualifications
which are the general criteria of CHED for the grant of COE and COD status;
(iii) consider the latest priority courses in advising students during registration
and enrollment to take up priority courses for them to avail of the CSPs; and (iv)
assign one specific office that will monitor and consolidate the report on the
employability of the graduates which can be used effectively by the offices
concerned for planning purposes and development of enhanced strategies

b) Direct the Director for Quality Assurance to (i) monitor closely the lapsed
accreditation statuses of different programs for updating or upgrading on or
before the end of the grace period; and (ii) ascertain that all curricular programs
are subjected to AACCUP accreditation as soon as graduates are produced in
order to enjoy the benefits thereon.

c) Strictly comply with the provisions of the guidelines in the selection of

scholarship grantees to avoid the incurrence of irregular expenditures and
require concerned scholars/grantees to immediately comply and submit all the
requirements stipulated in the scholarship contract, otherwise, cause for the
refund in full of all sums of money as may have been received of whatever nature
during the scholarship period

d) Immediately enforce collection thru salary deduction from defaulting scholars,

faculty members who received unauthorized amounts, and those in breach of
their Fellowship Agreement Contract

e) Require all Project Managers to prepare periodic reports such as Production

Report, Sales Report and Inventory Report, among others, complete with data as
to quantity, unit price and other information that would facilitate monitoring of
actual production, sales and inventory.

f) Adopt policies on pricing, production and sales monitoring and other control
measures which shall be incorporated in the IGP Manual to maximize the
potential of an IGP to generate income for the agency.

g) Immediately release the stipends due to student-beneficiaries and require the

submission of LRs if necessary

3. Various infrastructure projects implemented by 17 agencies and 12 SUCs

amounting to ₱1.44 trillion and ₱1.1 billion, respectively, were either not
executed in accordance with the plan, with noted deficiencies, not completed on
time, not completed at all which may result in waste of government funds or
delayed enjoyment of project benefits, on account of, among others,
abandonment by the contractor, inefficiency in monitoring of project
implementation, poor planning, poor workmanship, and lack of coordination
with LGUs and other agencies concerned.

293
 Amount
No. Agency Project Observation
(Million ₱)
NGAs
1 BJMP Construction of Jail The delayed completion of 29 2,302.77
facilities infrastructure projects hampered
BJMP’s objective of providing a
functional and responsive jail
facility to PDLs contrary to
Section 63 of R.A. 6975.
Moreover, four infrastructure
projects were terminated in R.O.
Nos. V and XII due to contractors’
incapacity.
2 BuCor Build and Design of Prolonged suspension by BuCor of 288.88
Regional Prison the Build and Design of Regional
Facility project at Prison Facility project at Sablayan
Sablayan Prison and Prison and Penal Farm caused the
Penal Farm non-completion of the prison
facility and termination of the
contract; hence, depriving the
intended users of the project of the
benefits and comforts. Further, due
to neglect and long exposure to sun
and rain, the reported 20.38
percent project accomplishment
was damaged; thus, may result in
wastage of government funds.
3 COA COA-CAR Regional The construction of COA-CAR 58.70
Training Center and Regional Training Center and
Dormitory Building Dormitory Building Phase I with
Phase I total project cost of ₱59.097
million was not completed and
subsequently terminated due to the
inability of the contractor to
continue with the project resulting
in the risk of possible loss of
government resources in the
amount of ₱3.380 million.
4 DepEd Basic Educational Delays in the completion and 161.46
Facilities Fund – implementation of Electrification
Electrification Projects under the FYs 2018, 2019,
Projects and 2020 BEFF in NCR, CAR,
ROs I, III, VI, X, XI, and XIII, as
well as poor workmanship in
NCR, were noted due to
procedural lapses in its
administration, contrary to the
contracts and DepEd Order No. 35
series of 2017, thus depriving the
schools of the timely utilization of
an upgraded and improved
electrical system.
5 DOH HFEP HFEP infrastructure projects were 2,832.39
either idle/unutilized or with
substantial delay in
implementation, thus, exposing
these properties to the risks of
deterioration, loss, lapse of
warranty period and wastage of

294
 Amount
No. Agency Project Observation
(Million ₱)
government funds, thus, depriving
the public of the benefits they
could have derived from the
immediate and maximum use of
said facilities and resulted in the
non-attainment of the program
objectives.
6 DOTr- Road IT Project - Approval of extension orders for 3,190.02
LTO LTO Component A the DOTr Road Transportation IT
Infrastructure Project - LTO
Component A without proof of due
diligence, and acceptance of
customized core applications even
with unresolved defects and
implementation thereof to the non-
pilot sites caused undue payments
to the vendor which is
disadvantageous to the
government and delayed
processing of transactions causing
unnecessary burdens to its clients.
7 DOTr - 15 infrastructure Various issues/setbacks were 1,312,605.77
OSEC projects encountered in the implementation
of 15 DOTr-FAPs in CY 2020,
thus, resulted in prolonged/
extended project implementation
period and/or further project
delays, possible change in total
project cost and slippages or
low/no actual physical
accomplishments of the projects
which consequently will require
project restructuring. The overall
causes of delays in the project
implementation also resulted in the
incurrence and payment of
additional commitment fees for the
seven FAPs amounting to
₱158.224 million in CY 2020 per
BTr report.
8 DPWH 3,283 infrastructure Absence of proper coordination 108,318.96
projects with LGUs, DENR and other
agencies concerned and failure to
establish the technical viability of
the projects during the feasibility
and preliminary engineering study
resulted in delayed completion and
non-implementation of 3,283
infrastructure projects, contrary to
Paragraphs 1 and 2, of Annex A of
RIRR of RA No. 9184, and the
agreed terms and conditions of the
contracts.
9 DSWD Kalahi-CIDSS The Kalahi-CIDSS NCDDP 1.47
funded projects in Barangays
Fundacion, Dueñas, Iloilo and
Botbot, Pandan, Antique were
affected by various programs of

295
 Amount
No. Agency Project Observation
(Million ₱)
other government agency, thus the
maximum utilization of the sub-
project was not fully attained,
hence, resulted in the wastage of
government funds.
10 JJWC Bahay Pag-Asa Delayed completion of the 10.00
construction /improvement of the
two (2) Bahay Pag-Asa projects by
the DPWH resulted in the non-
attainment of the project
objectives and depriving the
intended beneficiaries of the
expected benefits.
11 MMDA 108 Flood Control Delayed Implementation of 108 1,279.46
Projects Flood Control Projects by the
Flood Control Sewerage
Management Office due to 1 to
122 days delay in the conduct of
various activities from pre-
procurement activities to issuance
of the NTP. This delay was due to
limited movement of MMDA
personnel/officials on account of
alternative work arrangement,
quarantine restrictions, and
involvement of the signatories in
the Inter-Agency Task Force for
COVID-19. Hence, their
commitment of 100 percent
completion as well as the
socio/economic benefits that could
be derived therefrom were not
attained during the year.
12 PA 4 Projects Four projects remained 74.06
undelivered despite expiration of
the contract time; thus, depriving
intended beneficiaries of the early
use/operation of the facilities.
Repair, Maintenance The non-implementation of 10 85.58
and Construction projects from CYs 2015 to 2018
Fund costing ₱85.579 million resulted in
unutilized RMC Funds and the
non-attainment of fund’s intended
purpose; thus, depriving the
agency of timely benefits that
could have been derived therefrom
had those projects been
implemented as programmed.
13 PAF DOTC - For the Inter-Agency Transferred Funds 1,000.00
implementation of received from CYs 2014 to 2020
PAF Replication for the implementation of various
Project at Lumbia projects amounting to ₱1.248
Airport Cagayan de billion posted low fund utilization
Oro City rate of 10.16 percent due to slow
Procurement Process of DOTC -
PAF Replication Project at
Lumbia Airport, Cagayan de Oro
City .

296
 Amount
No. Agency Project Observation
(Million ₱)
14 PSHS Construction of Delayed completion of the 29.60
Administration construction of infrastructure
Building project contrary to IRR of RA
9184
5 Infrastructure Infrastructure projects remained 406.70
projects: Academic not completed as planned/within
Bldg 1, Bldg.2, the duration stipulated in the
Dormitory 2, contract.
Administration Bldg.,
Cafeteria & Student
Activity Center
15 PCC Construction of the The Construction of the 3.14
Communal Pen and Communal Pen and Office was not
Office completed within the contract time
or target completion date, thus,
depriving the intended
beneficiaries of the immediate use
of the project
Deep Well Drilling at The completion of the water 2.61
PCC at CLSU system structure was delayed,
depriving the PCC-CLSU of
immediate benefits that could be
derived from uninterrupted water
supply for its daily operations
16 SCP Enterprise Funds totaling P3.48 billion for the 3,429.97
Information Systems agency’s 35 projects under the
Plan (EISP) Projects EISP from CYs 2010 to 2019
remain idle or unutilized as at
year-end due to slow procurement
activities, resulting in non-
implementation of the projects,
thus indicating a low absorptive
capacity of the agency in the
efficient and effective utilization
of its budgets for such projects
programmed and funded under the
GAAs
Construction/ Out of the 61 infrastructure 5,122.57
Completion/ projects on the Halls of Justice
Repair/Rehabilitation (HOJ) nationwide for the period
of Halls of Justice CYs 2016 to 2020, 48 projects or
nationwide 78.69 percent with allotments of
P5.079 billion was not yet
constructed/repaired, eight
projects were not yet completed
with unutilized allotments of
P44.06 million for the unfinished
portion, and only five projects
were completed. The causes were
due to inadequate planning, slow
procurement activities, lack of
coordination with LGUs
concerned/Department of Public
Works and Highways (DPWH),
and/or lack of technical personnel,
causing an accumulation of
idle/unutilized funds of P5.123
billion from CYs 2016 to 2020,

297
 Amount
No. Agency Project Observation
(Million ₱)
denoting a low absorptive capacity
of the agency in the efficient and
effective utilization of its budgets
for infrastructure projects that
were programmed and funded
under the GAAs
17 TESDA Various Construction of Buildings via 3.91
Training Cum Production in
Regions IV-B and XII remained
uncompleted for a period of three
years, resulting in the non-
attainment of the objectives and
commitment to its intended
beneficiaries and wastage of
government funds and resources,
in violation of Section 2 of PD No.
1445.
Subtotal - NGAs 1,441,208.02
SUCs
1 BiSCAST 1. Rehabilitation / Two contracts for infrastructure 48.49
Improvement of projects were not completed after
TEI Building they were abandoned by the
(Fund 101 GAA contractors were not rescinded and
2016) the contractors’ performance
2. Completion of securities were not forfeited,
Learning resulting in the overpayment
Innovation and representing the unrecouped
Entrepreneurship advance payment to the contractor
Building for AST amounting to ₱4.54 million.
(Fund 101 GAA
2019)
1. Rehabilitation/ The inability of the Agency to 87.03
Improvement of ensure completion of five
TEI Building infrastructure projects manifests
2. Completion of Management’s inefficiency in the
Learning monitoring and implementation
Innovation and thereof, thereby depriving the end-
Entrepreneurship users of timely usage of the
Building for AST facilities/structures and may result
(Fund 101 GAA in wastage of government funds.
2019)
3. Construction of
Academic
Building Phase 2
4. Construction of
Motorpool and
PPDMS Building
(Fund 164)
5. Construction of
CAAT Building 2
Phase I
(Fund 101 GAA)
2 BSC Construction of BSC Three infrastructure projects for 58.54
Academic Building, accomplishment in CY 2020 were
College Dormitory not completed within the target
and Agriculture and date of completion despite
Fisheries Building approved time extensions, hence,
depriving the target beneficiaries

298
 Amount
No. Agency Project Observation
(Million ₱)
from the immediate use of these
projects.
3 BukSU Various infrastructure Delayed implementation of 17.81
projects specific project/s and endorsement
of facilities to end–users were
inconsistent with the principles
stated in the Government
Procurement Manual and other
related standards, and resulted in
depriving the end-user and/or the
general public of the benefits that
could have been derived thereon.
4 CHMSC Various infrastructure Three infrastructure projects were 112.57
projects not carefully planned contrary to
Section 2 of the Government
Procurement Manual, Volume 3
and Section 17.6 of the Revised
Implementing Rules and
Regulations of Republic Act No.
9184.
5 CSU Various infrastructure The Agency did not take action on 293.26
projects the contract agreements entered
into by the University for various
infrastructure projects despite the
inability of the contractors to
complete them on time.
6 JRMSU- 4 infrastructure Timelines in the implementation 71.19
Main projects of infrastructure projects were not
Dipolog complied with resulting in the
Dipolog delay of their completion.
Katipunan
7 MinSCAT Operations/Provision Five infrastructure projects were 81.75
of Higher Education reported at only 13.28 to 67.73
Services percent completed as of the latest
progress report despite the
expiration of contract period and
approved time extension due to the
inability of the College to monitor
and evaluate the performance of
the contractors and devise
calibrated measures in response to
delays in the implementation,
contrary to Item 12.1, Annex E of
the RIRR of RA No. 9184 and
Item 4.2 of GPPB Circular No. 03-
2019 dated March 8, 2019.
8 MPSPC Indigenous Peoples The Scale Model of a traditional 0.90
Education – Based Kankana-ey Village costing
Research Center ₱0.895 million for the IPED-based
Research Center was not accepted
by the Inspection Team due to
several deficiencies noted in its
fabrication because of "rushed
workmanship" as claimed by the
project leader which resulted in the
project's non-completion within its
target due date.

299
 Amount
No. Agency Project Observation
(Million ₱)
9 PMMA Extension of Various Due to non-conduct of Early 39.10
Buildings and Procurement Activities and
Acquisition of deficient procurement planning,
Various Equipment two major projects such as
and IT software and Acquisition of Various Equipment
Renovation/ and IT software and
Renovation/Extension of Various
Buildings aggregating to ₱39.101
million were not
implemented/completed in CY
2020 as planned, contrary to
Section 19 of Republic Act No.
11465, the General Provisions of
the General Appropriations Act for
FY 2020 and pertinent provisions
of the 2016 Revised Implementing
Rules and Regulations of Republic
Act No. 9184, thus, depriving the
students and employees of the
immediate use of upgraded and
modernized facilities.
10 SSCT Various infrastructure Three infrastructure projects 4.80
project remained unfinished despite the
expiration of contract period,
contrary to the Contract and
Agreement signed by and between
the SSCT and the Contractor and
Section 2 of Presidential Decree
No. 1445. Thus, the intended
beneficiaries were deprived from
the immediate usage of the
facilities and defeated the purpose
of the fund. Likewise, the
Management failed to impose
appropriate actions and remedies
pursuant to Section III-A (2.c.i) of
the Guidelines on Termination of
Contracts and Section 4.2.g. of the
Uniform Guidelines for
Blacklisting of Manufacturers,
Suppliers, Distributors,
Contractors and Consultant.
Three-Storey The project Construction of Three 1.35
Information -Storey Information Technology
Technology Building, Building, Mainit Campus
Mainit Campus remained unfinished despite the
expiration of the revised
completion date of April 21, 2016,
contrary to Item 4 of the Contract
and Agreement signed by and
between the SSCT and Kent
Marketing Group of Companies
Incorporated, and Section 2 of
P.D. No. 1445. Thus, intended
beneficiaries were deprived from
prompt availment of the benefits
therefrom. Likewise, Management
failed to impose appropriate

300
 Amount
No. Agency Project Observation
(Million ₱)
actions and remedies pursuant to
Section III-A (2.c.i) of the
Guidelines on Termination of
Contracts and Section 4.2.g. of the
Uniform Guidelines for
Blacklisting of Manufacturers,
Suppliers, Distributors,
Contractors and Consultant.
Various infrastructure Two infrastructure projects 4.00
project implemented through “By
Administration” remained
partially completed as of year-end,
despite the expiration of
construction period, contrary to
Section 2 of P.D. No. 1445
depriving the intended
beneficiaries from prompt
availment of the full benefits
expected therefrom. Moreover, the
Management failed to
immediately perform corrective
measures to utilize the available
resources pursuant to Section 41.5
of the SSCT College Code so that
further loss and/or wastage of the
same could be avoided.
11 USTP Various infrastructure Five (5) Infrastructure projects 137.24
Claveria projects remained unfinished despite the
expiration of contract time
contrary to the agreed terms and
conditions of the contracts, thereby
depriving the school constituents
of its immediate and maximum
utilization had these projects been
implemented.
12 WMSU Various infrastructure 11 out of 31 infrastructure projects 137.47
projects implemented by the University for
the years 2018 to 2020 have not
been completed within the term
stipulated in the contract due to
implementation of ECQ in the
areas where the projects are being
undertaken
Subtotal - SUCs 1,095.50
Total 1,442,303.52

Recommendations

The Auditors recommended the following courses of action:

Agency Recommendation
All a) Strictly observe proper procurement planning activities and thorough detailed
agencies engineering in order to avoid delays in project implementation
and SUCs
b) Monitor closely and supervise the project implementation in accordance with
the plans, specifications and timelines to ensure that the infrastructure projects

301
 Agency Recommendation
are completed so that the intended use thereof can be enjoyed by the
beneficiaries of the projects

c) Require the Bids and Awards Committee and the Technical Working Group
to thoroughly and strictly review the post-qualification of contractors in terms
of manpower, equipment requirements and performances on on-going and
completed government and private civil works contracts

d) Strictly comply with all the documentary requirements under the Revised IRR
of RA 9184

e) Ensure that contract extension shall be granted only on conditions provided

under Annex E of the 2016 Revised IRR of R.A. 9184

f) Immediately rescind the contract on abandoned projects and award the same
to other qualified contractors and ensure that the projects are completed;

g) Recommend the blacklisting of the contractors to the Government

Procurement Policy Board, if necessary;

h) Enforce recovery of the performance security or warranty posted by the

contractors from the Insurance Company where the surety bonds were
obtained;

i) Apply all possible remedies in order to recover the unrecouped advance

payment to the contractor;

j) Institute other applicable sanctions against the contractors pursuant to existing

regulations

k) Improve coordination with other government agencies, among others, the

DPWH and the LGUs, as well as the community, for a more effective and
synchronized planning of programs and projects

DepEd a) Ensure the timely releases of Sub-AROs in order to avoid delays in the
implementation of the projects; and

b) Arrange the full coordination with Electric Utility Provider and other
concerned agencies including the community of the recipient Schools to
achieve effective and more synchronized planning and implementation of
programs and projects.
DOTr-LTO a) Consider stopping the implementation of the core applications to non-pilot
sites until all core applications are accepted and integrated to one another, and
the LTMS is functioning seamlessly; and

b) Fast-track the connectivity of unconnected Medical IT Providers, and submit

Management actions on non-compliance with LTO Memorandum Circular
No. 2018-2157 by the 12 medical clinics directly connected with the LTMS.
DOTr- a) Directly/closely monitor the execution of the action plans set to address the
OSEC issues/setbacks and delays identified on each FAP to ensure smooth and
timely implementation of projects and to avoid further delays;

b) Require the concerned PMOs to (i) review and validate the data/ information
contained in the NEDA Draft CY 2020 ODA Portfolio Review of the DOTr;
and (ii) submit to the Audit Team the updated/revised FAPs Physical Status
Report as at December 31, 2020, including the updates/status on the measures
undertaken to address the issues/setbacks and delays on the project’s
implementation; and (iii) regularly provide NEDA-MES and COA Audit
Team with complete quarterly/periodic status reports of the FAPs;

302
 Agency Recommendation

c) Require all stakeholders such as the approving authorities, PMOs, and others
involved in the procurement and implementation phase to exert best efforts to
minimize delays and maximize loan proceeds availment during the loan
validity period thereby minimizing incurrence of commitment fees; and

d) Fast-track preparation of ICC requisite documents for the approval of the

DOTr’s requests for project restructuring in CY 2021.
DSWD a) Require the RPMO and Barangays affected to document properly the KC sub-
project affected by the DA-FMR and DOH funded project to provide trail for
monitoring purposes; and

b) Ensure that the future community-identified priority projects are not the
potential sites of other agencies’ projects to avoid the demolition of the
completed and functional KC sub-projects; and

c) Require the RPMO to recommend to the National Project Management Office

of KC to revisit the design of the KC Barangay Health Station sub-projects to
ensure that future sub-projects conform with the DOH standards to avoid
demolition/modification of the completed sub-projects
SCP a) Coordinate or make representation with the LGUs concerned to facilitate the
turn-over of donated lots to the Court before the budget proposal for HOJ
projects and inclusion in the approved APP, or with the DPWH as
implementing agency in the construction/repair of an HOJ;

b) Perform the preliminary and detailed engineering activities for infrastructure

projects as required in Section 17.6 of the RIRR of RA 9184, and ensure that
the plans, designs, drawings, and other required documents had been finalized
prior to the conduct of the procurement activities to avoid delays;

c) Direct the BAC-HOJ to follow the timelines prescribed in Annex “C” of the
2016 RIRR of RA9184 in the conduct of procurement activities for
infrastructure projects to implement the projects ` as programmed; and

d) Augment the technical personnel of the OHJ to fast track the implementation
of the HOJ infrastructure projects, or engage the service of consultant/s to
assist the OHJ.
TESDA a) Conduct actual inspection and evaluation of the project site before preparing
the Revised Design Plans based on current situation of the project; and

b) Facilitate request for additional funding from TESDA Head Office thru their
respective ROs, to fast-track project completion based on prepared Revised
Design Plans based on current situation of the project together with the revised
Engineering Plans, Program of Work and Bill of Materials to avoid the
procurement of unnecessary construction materials, save whatever was
previously spent for the project and ensure completion of the project.

4. Other programs implemented/items procured by 17 agencies and 6 SUCs

amounting to ₱2.20 billion and ₱95.29 million, respectively, were unutilized/
underutilized/ overstocked/ expired/ undistributed or not adequately protected,
exposing the projects to deterioration/theft, or were not sustainable/useful due
to, among others, non-completion of facilities for its installation/lack of trained
personnel to operate the same/incompatibility problems/poor planning and
inefficient coordination among government agencies, lack of continuity or
progression plan, that may eventually result in wastage of government funds.

303
 Amount
No. Agency Project Observation
(Million ₱)
NGAs
1 AFPCES Retailware The Retailware Manager System also known as 1.79
Camp S, Manager Report of Deliveries Received computerized
Aquino System system failed to generate the status report of
and Camp returned merchandise, such as the date items
O' Donnel were returned, cost of returned merchandise,
and the offsetting of costs from prior sales
against subsequent payments. Hence, details of
returned merchandise due to its inferior or
flawed condition could not be promptly
validated.
2 BJMP Jail Facilities Non-utilization of 14 fully completed jail Not
facilities in R.O. Nos. III and IV-A which indicated
defeated the objective of the Bureau in
providing a functional and responsive jail
facility that promotes PDLs welfare through
the decongestion of jails.
3 COA Office Failure of Management to implement the audit 9.07
Supplies recommendations on procurement planning
resulted in the continuous overstocking of
office supplies and possible wastage of
government resources through obsolescence
4 DENR PPEs Property and equipment remained idle/unused 55.59
due to various reasons, thus defeats the very
purpose for which such assets were
purchased/constructed
5 DILG 1-Storey Fully finished 1-Storey DILG Albay Provincial 4.60
DILG Albay Operations Office Building was not occupied
Provincial and utilized since its completion in November
Operations 2018 due to gaps in project implementation
Office such as absence of building and occupancy
Building permits, variation between work
accomplishment and As Built Plan and
Program of Works and Construction Plan,
absence of transformer and electricity lines,
and building defects, among others. Further,
repair works were not undertaken to correct the
discovered defects in the building within the
defects liability period nor the cost of the repair
was claimed against the surety bond posted by
the Contractor due to expiration of
performance bond.
6 DOH HFEP Equipment procured under the HFEP were 1,225.26
found to be either undelivered, unutilized,
and/or without calibration and preventive
maintenance, thus, depriving the public of the
benefits they could have derived from the
immediate and maximum use of said facilities
and resulted in the non-attainment of the
program objectives.
Various Deficiencies were noted in the distribution of 65.36
centrally-procured assets to various OUs which
reflected deficient asset distribution systems in
the CO.
Drugs and Drugs, medicines and other types of 95.15
medicines inventories were found to be nearly expired
and/or have expired due to deficient
procurement planning, poor distribution and

304
 Amount
No. Agency Project Observation
(Million ₱)
monitoring systems, and identified weakness in
internal controls. This recurring problem of the
DOH has resulted in indiscriminate wastage of
government funds and resources, and impedes
the attainment of DOH’s mission of leading the
country in the development of a productive,
resilient, equitable and people-centered health
system.
7 DOTr- Road IT Various PPE relative to the DOTr Road 140.52
LTO Project and Transportation Information Technology
Driver’s Infrastructure Project and Driver’s License
License Cards Cards with Five-Year Validity, respectively,
were either undeployed, uninstalled or
unutilized, thus, resulted in the inefficient
implementation of the projects.
8 DOTr- New Manila Two completed projects remained idle and not 502.58
OSEC Area Control utilized since its completion, thereby exposing
Center these projects to further deterioration, decline
System in value by reason of technological
Project - obsolescence and risk of pecuniary loss to the
Phase 1 and Government.
Phase 2
1. Marindu- Four projects which were terminated by the 76.47
que DOTr from CY 2015 to CY 2019 have no
Airport- continuity or progression plan for its further
concreting implementation, thereby depriving the public
of runway of the optimum use of these projects.
2. Develop-
ment of
Sta. Fe
Port
3. Buhatan
Port-
Construc-
tion of
Port
4. Toilet
Facilities
Improve-
ment
Project
9 NCDA System Fourteen sets of desktop computers delivered 0.59
Strategic Plan on August 26, 2020, as part of NCDA’s
Program Information System Strategic Plan Program
remained in the stockroom and not yet issued
to the end-users, thus, casting doubt on the
necessity of the procured Information and
Communications Technology equipment, for
the efficient discharge of the agency’s day-to-
day operations.
10 NEDA Vertical The vertical Hydroponics System purchased by 0.02
Hydroponics NRO III in CY 2018 was not utilized and left
System idle with its condition going towards
deterioration, thus, the intended purpose and
use of the said equipment was not served.
11 OCD 2-in-1 The details of the visible signs of deterioration -
facility/ of the 2-in-1 facility/building constructed in
building CY 2018 in Region V were not reported to the

305
 Amount
No. Agency Project Observation
(Million ₱)
OCD Central Office which administered its
implementation in contrary to Sec.3 Chapter 2
of GAM for NGAs; thus, the appropriate
solution for building defects may not be
addressed. On the other hand, office equipment
and furniture and fixtures installed thereat
remained idle for two years; thus, the purpose
for which these were purchased was not served.
12 Office of PPEs Ineffective control over PPE such that 262 sets 15.29
the of desktop computers and the 262 units of
Ombuds- uninterruptible power supply procured in
man September 2019 and delivered in the same year
remained undeployed or unissued, as of March
2021, or already more than a year after these
were acquired. As there is no definite basis for
issuance, we were informed that issuance of
such computers would take a while as they will
check further who among the OMBs
employees needed them. Hence, OMB is
confronted with losing dealer’s warranty and
technological obsolescence, without even
issuing and using such information technology
equipment.
13 Optical Application The ARMC System acquired by the OMB in 0.12
Media and 2018 remained unutilized as at December 31,
Board Registration 2020due to Management’s inaction to resolve
Module and the issue on the discovered system bugs/errors
Collection during the implementation of the system,
(ARMC) which prevented the proper flow of
System transactions; hence, consequently delayed the
delivery of basic services via electronic/online
transactions, particularly in the e-registration
and applications, e-permit and automated
collections.
14 PCC Animal Shed Management was not able to optimize the 0.65
utilization of the purchased construction
materials for the improvement of animal shed,
thus, depriving the agency of its possible
economic benefit.
15 PCG Medical The PCG purchased nine units of medical 7.87
Equipment equipment amounting to P7.873 million thru
the emergency mode of procurement pursuant
to RA No. 11469, which had remained idle and
unutilized as at year-end or about eight months
from its delivery on May 05, 2020 in spite of
the reported high positivity rate of COVID 19
infection among PCG personnel; thereby
defeating the purpose for which the acquisition
of equipment was intended
16 PIA PPEs PIA RO I still has insufficient internal control -
over safeguarding their assets, particularly
their PPE which is not in conformity with the
principal objectives of an internal control.
17 UNACOM Advances to Of the ₱0.414 million advanced to PS-DBM, a 0.41
PS DBM total of ₱0.132 million representing balance of
undelivered equipment remained unutilized for
more than four years. Further, confirmation
results showed a discrepancy of P0.119 million

306
 Amount
No. Agency Project Observation
(Million ₱)
between the UNACOM and PS-DBM books,
affecting the reliability on the account’s
balance as at December 31, 2020.
Subtotal- NGAs 2,201.34
SUCs
1 BASC IT A total of 52 units of computer equipment 2.20
remained idle since October 2020 and
unutilized as of year-end, thus, exposing them
to deterioration and depreciation.
2 BiSCAST 1. Learning Two infrastructure projects completed and 73.48
Innovation turned-over to the Agency in CYs 2018 and
and 2019 did not have the necessary occupancy
Entrepreneurs permits, thus, remained idle and unutilized in
hip Building CY 2020, depriving the stakeholders of the
timely use thereof. Further, the Learning
Innovation and Entrepreneurship Building
2. Phases 1 and 2 remained inoperative, thus,
Construction depriving the College of the much-needed
of Four funds that could have been realized from the
Storey operation of its income generating project with
Academic projected annual revenue of ₱2.67 million.
Building
Motor vehicle Motor Vehicle and Other Transportation 13.65
Equipment owned by the College were not kept
in a garage for proper safekeeping, thereby,
exposing the properties to undue deterioration
and possible loss/wastage of government
properties. Also, the vehicles were not marked
with “For Official Use Only”.
3 CBSUA Motor vehicle Some of the motor vehicles owned by the Undeter-
University were exposed to climatic adversities mined
and possible loss/wastage of government
properties as these were just parked in open
areas/spaces inside the campuses.
4 IFSU IFSU Water The continuous non-operation of the IFSU 0.45
Delivery Water Delivery, an income generating project,
due to lack of operating permit, deprived the
University of additional income while
incurring losses due to the depreciation of its
machines and equipment, and incurred
opportunity loss estimated at ₱60,000.00 for
the year.
5 MPSPC IGP A commercial space in the MPSPC Bontoc Undeter-
Campus intended as a water refilling station mined
remained idle for almost three years already;
thus, depriving the College of additional
income and causing opportunity losses from
non-utilization of government facilities.
6 WVSU Learning Inadequate planning in the procurement of 5.51
Resource 4,707 Learning Resource Packets (Educational
Packets Tablets) resulted in 923 unutilized equipment
amounting to P5.515 million, thus, defeating
the purpose of the procurement made and
exposing the same to deterioration and possible
damage due to long period of non-utilization.
Subtotal – SUCs 95.29
Total 2,296.63

307
Recommendations

The Auditors recommended the following courses of action:

Agency Recommendation
All a) Provide a secure place or a cover for vehicles that can shield them from the
Agencies harsh weather conditions and the elements of deterioration or possible loss
and SUCs
b) Immediately secure the permits necessary for the use of constructed buildings
or equipment and to observe proper maintenance procedures to keep the items
in good working condition and to utilize the same as intended

c) Ensure judicious planning in the purchase of supplies and observe the normal
two-month requirement in accordance with Section 7.1, Rule II of the 2016
RIRR of RA 9184 and the GAA General Provisions, respectively;

d) Check the condition of each slow and non-moving inventories as of December

31, 2020 and prioritize their issuance, if still in good condition;

e) Monitor and coordinate with the Accountant on the purchase, issuance and
consumption of office supplies in their updated Stock Cards and Supplies
Ledger Card respectively, to maintain appropriate level of stocks to prevent
occurrence of slow and non-moving inventories and avoid wastage of
government resources due to obsolescence;

f) Identify the recipients/end-users of procured items and issue the equipment

immediately to them

g) Operate and utilize the various infrastructure projects and completed/

implemented projects to maximize its benefits
AFPCES Direct the Managers of outlets located at Camps Servillano Aquino and O’Donnell
Camp S, to immediately make a written representations with the AFPCES Headquarters to
Aquino report limitations affecting their automated systems. In the meantime, said outlets
and Camp must be advised to formulate measures to compensate for the failure of the RMS to
O' Donnel provide purchase returns data.
BJMP Expedite installation of electricity and perimeter fences pertaining to 14 newly-
completed jail facilities necessary for their immediate utilization

DENR a) PENRO Aklan to:

i. identify the recipients/end-users of the six units LCD projectors, 25 units

laptops, two units large format printers, five units drones, six units
underwater cameras, 11 units GPSs, and four units RTK total stations
procured in CYs 2019 and 2020 and issue the equipment immediately to
them; and

ii. turnover the custody of the floating pontoon together with its accessories
and anchorage to the LGU of Malay either by donation or thru usufruct
agreement so that the property shall be properly maintained and
safeguarded;

b) PENRO Kalinga to fast track the installation of science base watershed

instruments;

c) PENRO Davao del Norte to expedite the utilization of the building constructed
for DENR-CENRO New Corella to ensure that government’s scarce resources
are fully maximized, thereby realizing the purpose for which said Agency’s
project was implemented;

308
Agency Recommendation

d) Region XII to contact the supplier as soon as possible to schedule the

assessment and repair of the equipment and for them to conduct hands-on
trainings on the uses, applications and operations of the equipment.
DOH a) Take immediate action/ concrete steps in resolving all issues associated with
the recurring problem such as improvement of procurement planning,
strengthening of distribution and monitoring systems, and review of internal
controls; and

b) Direct the Legal Service and AFMT to conduct thorough investigations and
impose appropriate sanctions on all erring officials and employees whose
neglect caused wastage of government funds.
DOTr- a) Direct the MID of LTO-SHO to coordinate with the Equipment Unit to ensure
LTO deployment and utilization of equipment and devices procured to avoid wastage
of government funds;

b) Direct LTO-XII to conduct assessment on the possible reasons/causes or delay

for the non-utilization of the ICT and Communication equipment and fast track
the full implementation on the utilization of the said properties in order to
achieve the agency’s program and prevent equipment obsolescence and
wastage of public funds;

c) Utilize and deploy the fingerprint scanner and other idle peripherals to
efficiently implement the project and effectively execute its mandate; and

d) Instruct DLROs to return the laser engravers and peripherals to the Property
Section and the latter in coordination with MID to issue and utilize returned
and undeployed laser engravers.
DOTr- a) Formulate a continuity or back up plan for the noted terminated projects;
OSEC
b) Explore various options to utilize the substantially completed New MACC
Phases 1 and 2 to ensure that objectives are met and public resources are
judiciously utilized to prevent further loss to the government by reason of
technological obsolescence; and

c) Ensure that the application of advances as compensatory payment to works

performed by the contractor is justified and authorized and exhaust all remedies
to recover any outstanding and/or remaining advances made to the contractor.

OCD a) Prepare and submit a detailed report with pictures on the visible deterioration
of the 2-in-1 facility to the top Management of the OCD for their appropriate
action;

b) Furnish the Audit Team with copy of the report and its transmittal to the top
Management; and

c) Request for the repair of the defective 2-in-1 facility and require proper
maintenance of the office equipment and furniture installed thereat to safeguard
the assets from further deterioration.
PIA Address agency's need on security services to cover the physical safeguarding of
PPE 24 hours a day, seven days a week and make a strong representation with the
higher authority to request for additional budgetary requirements to cover the said
security services expense.
BiSCAST a) Immediately secure or follow up the occupancy permits of the completed
constructed building to ensure their conformity to safety and other standard
requirements; and

b) Exert more effort to make the buildings available for its intended use and to
enable the college to generate revenues that may be used for its operations.

309
 Agency Recommendation

c) Provide a secure place or a cover for vehicles that can shield them from the
harsh weather conditions and the elements of deterioration
IFSU a) Transfer of the business name from Collins Purified Drinking Water Enterprise
to IFSU Water Delivery;

b) Acquisition of permit to operate; and

c) Resumption of the water delivery operation.

5. Unutilized appropriations/ unobligated allotments/ unused budget/ fund

amounting to ₱65.65 billion and ₱927.39 million, for agencies and SUCs,
respectively, due to delay in securing approval, non/ partial project
implementation, delayed procurement activities, excessive fund allocation, poor/
inadequate planning, failure to monitor budget utilization, late release of fund,
non-compliance with policies and guidelines, among others, affecting the
attainment of the program objectives.

Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
NGAs
1 BuCor 5,849.66 639.21 Recruitment of Planned recruitment of
uniformed uniformed personnel was not
personnel efficiently pursued due to
low turnout of applicants
resulting in an
unobligated/unutilized
allotment of ₱639.212
million or 10.93 percent of
the total allotments of
₱5,849.663 million and
reversal of unutilized funds
amounting to ₱367.027
million or 8.32 percent of
total allocation of
₱4,409.134 million; thus, not
in keeping with sound cash
programming.
2 CFO 0.62 0.62 Exchange Enhancement Training
Visitor Program Sponsorship Program funds
totaling ₱0.623 million
remained unutilized due to
unclear policies in the
administration of funds,
which caused the
discontinuance of the
scholarship program.
3 CHED 72,826.74 12,861.42 1. UAQTE Out of the total allotments of
2. Provision of ₱72,826.735 million
scholarship to received by CHED, only
faculty HEIs ₱59,965.316 million or
and 82.34% was obligated during
administrators the year caused by low
utilization rates, ranging

310
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
3. Provision of from 4.02% to 88.14%, in
assistance to five of its programs/projects,
HEls for K to namely: a) the Universal
12 Transition Access to Quality Tertiary
Programs Education, b) provision of
4. PCARI scholarship to faculty HEIs
Project and administrators, c)
5. Implementatio provision of assistance to
n of the ISSP HEls for K to 12 Transition
6. Programs Programs, d) Philippine
under California Advanced
Bayanihan to Research Institutes Project
Recover as and e) implementation of the
One Act Information System
7. Other Strategic Plan, thereby
programs and affecting the timely and
projects efficient implementation
thereof.
4 DAR 7,731.47 584.88 Overall, the agency’s fund
utilization/ obligation of
₱7,146.592 million is 92.44
percent compared to its
allotment of ₱7,731.471
million leaving a balance of
₱584.879 million mainly due
to restrictions imposed by the
COVID-19 pandemic which
significantly reduced the
personnel mobility and use
of resources in compliance
with strict health protocols.
5 DENR 17,525.28 1,565.67 Manila Bay; Overall, the department’s
INREMP fund utilization of
₱15,959.601 million is 91.07
percent compared to its
appropriation/ allotment of
₱17,525.277 million, leaving
an overall balance of
₱1,565.676 million at year-
end due to the non-
implementation of some of
the agency’s programs,
projects and activities during
the year in view of the
various community
quarantines measures that the
government imposed
6 DFA 2.42 1.62 Regional The utilization of the total
programs, allotments received for CYs
projects, 2019 and 2020 was not fully
activities maximized, leaving
unexpended balance as of
December 31, 2020, which
should be returned to the
DFA-Home Office, or
remitted to the National

311
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
Treasury, respectively; thus,
the expected benefits of the
Consular Office before the
expiration was not achieved.
7 DICT 3,351.21 1,165.30 Regular Out of the ₱3,351.212
appropriations million allotted for the DICT
programs, only
₱2,185.909 million or 65.23
percent were obligated while
₱406.828 million or 18.61
percent of obligated funds
were disbursed indicating an
overall low fund utilization
rate and very low
disbursement rate which may
adversely affect the delivery
of vital services to the public
especially during this time of
pandemic.
3,110.83 563.94 Continuing Further, out of the continuing
allotment allotments totaling
₱3,110.834 million, the
utilization rate is an average
of 80 percent but the
disbursement rate was a mere
18.76 percent and the
unobligated balance of
₱563.939 million may lapse
at year end even before its
full utilization and
completion of the intended
projects.
8 DILG 658.72 204.37 20 locally Out of the ₱658.717 million
funded projects funds allocated for the 20
locally funded projects, only
₱454.344 million was
obligated resulting in
unutilized allotment of
₱204.372 million. Likewise,
programmed/ planned
activities were partially or
not implemented in view of
low fund utilization rate
ranging from zero to 72.56
percent
49.56 21.34 Philippine Anti- Utilization of funds allocated
Illegal Drugs for Philippine Anti-Illegal
Strategy Drugs Strategy amounting to
₱49.559 million was not
maximized as ₱21.339
million or 43.06 percent
thereof was not utilized
caused by either non-
implementation or partial
implementation of activities
because of the restrictions

312
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
imposed by COVID 19
pandemic

37.94 10.41 Manila Clean- DILG accomplished only

Up Project 63.64 percent of the 22
planned targets/activities and
incurred obligation of
₱27.526 million or 72.56
percent of the ₱37.935
million total allotments
received for the Manila
Clean-Up project, resulting
in unobligated allotment of
₱10.41 million for
unimplemented planned
targets.

85.44 8.74 Communicating Management was not able to

for Perpetual fully utilize the ₱85.44
End to Extreme million allotment received
Violence and during the year for the
Forming Communicating for
Alliance Perpetual End to Extreme
Towards Violence and Forming
Positive Alliance Towards Positive
Change and Change and Enriched
Enriched Communities project
Communities showing unobligated
allotment of ₱8.735 million
or 10.22 percent of the
allotments due to non-
implementation of five
targeted activities under
“Strengthened
communication strategies,
capacity development and
alliance-building with all
sector for local peace and
development” and partial
implementation of one
activity under the “Program
Oversight”. Thus, the
required outputs were not
carried out/attained during
the year.
9 DOE 1,826.54 505.62 Various DOE obligated ₱1,320.919
programs/ million or 72.32 percent of
projects/ its total allotments of
activities ₱1,826.543 million, and
disbursed ₱879.395 million
or 66.57 percent thereof,
while ₱1,251.341 million or
61.59 percent of the total
received cash allocation of

313
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
₱2,031.758 million was
utilized, indicating low
utilization of its fund releases
in CY 2020.
10 DOH 200,855.45 24,641.12 Various Considerable amounts of
unobligated allotments
totaling ₱24,641.12 million
as of December 31, 2020,
aimed at strengthening the
Department’s capacity of
ensuring access to basic
public health services to all
Filipinos and further
buttressing the health care
delivery system, were noted.
This condition affects the
efficient utilization of public
funds vis-à-vis the agency’s
implementation capabilities
and its response to the urgent
healthcare needs during the
time of state of
calamity/national
emergency.
169.58 63.47 Hospital The utilization of at least 25
Income percent allocated hospital
income of four OUs totaling
₱169.579 million for the
procurement of equipment
and upgrading of hospital
facilities had not been fully
maximized, with only 37.43
percent or ₱63.468 million
utilized, while one OU had
allocated only ₱4.102
million or 3.54 percent of its
hospital income of ₱116.038
million, thus, denying the
intended beneficiaries of
quality health care services
that could have been
provided to them had the
required percentage of said
income been properly
allocated, and plans for the
efficient utilization thereof
were formulated and
implemented.
11 DOT 2,203.36 229.89 Advertising Out of the total allotments of
projects ₱2,203.357 million
authorized budget received
by DOT in CY 2020,
₱1,973.465 million or 89.57
percent were obligated,
leaving an unobligated
balance of ₱229.892 million.

314
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
Of the obligated amount,
only 54.33 percent or
₱1,072.242 million of the
obligations were actually
utilized and disbursed to
ongoing projects and
activities including locally-
funded projects for Branding
Campaign and Market and
Product Development as a
result of inadequate
procurement planning thus,
resulting in non-attainment
of the agency's program
targets for the year.
- 2.02 Plants and pots While there were efforts
exerted by the current
Management to distribute the
procured plants and pots to
the different barangays to be
used in their respective areas,
residual funds amounting to
₱2.02 million as of
December 31, 2020, have
remained unutilized in the
account of the DOT IX for
more than three years
reckoned from the date the
amount was transferred for
the purpose.
12 DOTr- 102,312.02 4,064.80 Ormoc Airport, Pursuant to Section 60 of RA
OSEC New Cebu No. 11465 or also known as
International FY 2020 GAA and RA No.
Container Port 11494 or the Bayanihan to
Project, Recover as One Act, as
Mindanao amended by RA No. 11519,
Railway Project the DOTr obligated
₱98,247.22 million or 96.03
percent of the total
allotments of ₱102,312.023
million received in CY 2020
and disbursed ₱27,967.647
million or 28.47 percent of
the total obligations. The
undisbursed amount of
₱70,279.572 million pertains
primarily to the fund for the
payment of Right-of-Way
and for the implementation
of 56 out of 81 locally and
foreign-assisted projects
with low disbursement rates
ranging only from zero to 20
percent of the obligations.
13 DPWH 127,454.69 13,529.03 various Of the total allotments
received by various DPWH

315
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
offices totaling to
P127,454.692 million for CY
2020, only P113,925.663
million or 89.39 percent
thereof was obligated while
P58,022.498 million or 50.93
percent was disbursed as of
December 31, 2020, thus,
utilization of their authorized
budget and its programmed
appropriations was not fully
maximized contrary to
Section 70 of the General
Appropriations Act of RA
No. 11465.
14 DSWD 219.86 106.35 SLP-Livelihood Delayed budget utilization
Assistance and low disbursement/
Grants utilization rate of only
66.29%.
15 DTI 5,884.92 487.61 Balik Overall, the agency’s fund
Probinsya, utilization/ obligation of
Bagong Pag- ₱5,397.311 million is 91.71
Asa Program percent of ₱5,884.922
under RA million, leaving a balance of
11494 ₱487.611 million due to
procurement activities that
were not pursued brought
about by the imposed
restrictions/limitations due to
the COVID-19 pandemic and
the late releases of funds for
the Balik Probinsya, Bagong
Pag-Asa Program under RA
11494.
16 ECCDC 197.38 35.39 a) Unobligated The budget and cash
MOOE requirements during the year
Allotment – were not effectively and
Regular Fund: efficiently utilized, since out
1. Development of the ₱197,383,616.90
of Policies, adjusted allotments received
Standard and by the Agency in CY 2020,
Guidelines ₱161,997,551.58 or 82.07
2. Capacity percent was obligated,
Building and leaving an unobligated
Institutional balance of ₱35,386,065.32.
Development of
Stakeholders
and Other
Partners

b) Unobligated
MOOE
Allotment –
SAGF:
1. Travelling
Expenses

316
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
2. Other
Professional
Services
17 ERC 760.83 177.28 Majority are ERC received a total
related to allotment of P760.827
programs and million, 76.70 percent or
projects for P583.550 million of which
Information and were obligated, leaving an
Technology unobligated balance of 23.30
equipment, percent or P177.277 million
software, as at December 31, 2020. Of
services, and the obligated amount, only
repairs that may 79.56 percent or P464.254
enhance the million were disbursed,
adaptability and leaving an unpaid obligation
digital of 20.44 percent or P119.295
readiness of the million at year-end. Based on
ERC to the new the foregoing, it is apparent
normal that the ERC has not fully
utilized its budget during the
year and was unable to
maximize the use of its
available funds resulting in
the expiration of its
unutilized funds and
deferment of the intended
benefits that could be derived
from these resources.
18 GHQ, N/A 8.38 The Repair, Maintenance
AFP and Construction Fund
balance representing rebates
and patronage discount from
Petron Corporation remains
unutilized to date.
19 IPOPHIL 819.89 219.90 Overall, the IPOPHL’s fund
utilization of ₱599.988
million is 73.18 percent
compared to its revised
approved budget of
₱819.893 million during the
year. The unutilized budget
of ₱219.905 million was due
to its failure to implement
various projects programmed
for MOOE and CO brought
about by the COVID-19
pandemic.
20 NBDB 41.02 4.72 Local Book Out of its total budget of P41
Publishing million, P4,715,898.78 or 12
Development percent was not obligated, of
Program which P3,984,675.03 or 84
percent pertains to the
Maintenance and Other
Operating Expenses funds
intended for the Local Book
Publishing Industry

317
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
Development Program and
attributable to the
unimplemented targeted
activities brought about by
the challenges of the
Pandemic
21 NBI 2,085.76 399.72 Various Unobligated allotment at
year-end due to pandemic
resulted in delayed and
unimplemented projects and
activities
22 NMIS 751.62 113.63 Regular funds, The agency registered a low
Marawi City utilization/ obligation of
Slaughterhouse ₱637,993,713.58 or 84.88
and Meat percent of its appropriation/
Cutting Facility allotment of
of Tanauan, ₱751,618,738.00 million due
Batangas to failed biddings of various
projects.
23 OTC 45.98 4.27 Various Of the total allotments
planned received by OTC amounting
activities such to P45.982 million in CY
as training and 2020, only the amount of
procurement of P41.711 million or 90.71
office supplies percent thereof was
obligated, leaving an
unobligated balance of
P4.271 million as at year-
end. Full utilization of
allotments was not met
because of the COVID-19
pandemic which adversely
affected the implementation
of planned activities such as
procurements, travels and
trainings during CY 2020.
157.03 108.42 PUV Of the fund transfer from the
Modernization DOTr-OSEC of P157.03
Program million in support of the
implementation of the
PUVMP, only P48.619
million or 30.96 percent
thereof was utilized by the
OTC as at year-end which is
largely attributable to the
lack of adequate planning of
activities and proper
budgeting of expenditures.

24 OTS 1,312.07 82.25 Salaries and Of the total allotments of

allowances; P1,312.070 million received
travelling by the OTS in CY 2020,
expenses; P1,229.819 million or 93.73
capital outlay percent thereof was
obligated, leaving an
unobligated balance of

318
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
P82.251 million as at year
end. Disbursement rate was
at 72.87 percent or in the
total amount of P896.157
million.
25 PCC 11.41 3.47 Carabao-Based Financial reports as of
Business December 31, 2020 showed
Improvement that P2,053,610.86 or 45% of
Network the total amount of
PROJECT P4,560,617.76 for MOOE
and P1,417,744.00 or 21% of
the total allotment of
6,844,814.00 for CO remain
unexpended partly because
conduct of public bidding for
major requirements for the
project (facilities, equipment
and breeding stocks) is being
done at the PCC National
Headquarters, thus, defeating
the purpose of the project.
18.32 2.41 Establishment Low percentage of utilization
of Province- of funds could also be
Wide Carabao- attributed to the delayed
Based Business procurement of buffaloes,
Improvement among others, due to
Network at the termination of contract with
PCC at supplier amounting to
University of ₱5,699,500.00 for the Supply
the Philippines and Delivery of Crossbred/
Los Baños Purebred Buffaloes (100
Heads) PCC at UPLB.
26 PTTC 95.57 29.05 Various Overall, the agency’s fund
Programs utilization/ obligation of
P66.528 million is 69.60
percent compared to its
allotment of P95.572 million
during the year, of which P
13.764 million or 18.93
percent pertains to one of its
major programs, the
Business Management
Training Service, which
registered a utilization rate of
93.79 percent and in
accordance with the purpose
of appropriation/allotment.
The unutilized fund of
P9.011 million and P20.034
million for the current and
continuing fund, respectively
was due to the (a) deferral of
procurement of motor
vehicles, ICT and office
equipment; and (b) non-
consummation of lease for

319
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
additional workspace which
was affected by the
restrictions during the
pandemic.
27 SCP 2,646.72 2,536.93 Various Out of the P2.647 billion
programs approved budget for MOOE
of Lower Courts pursuant to
Special Provision No. 7 of
the Judiciary per GAA FY
2020, only P109.779 million
or four percent was granted
as cash advances indicating a
low absorptive capacity of
the agency in the use of its
budget since P2.537 billion
or 96 percent was unutilized.
28 TESDA 1,110.27 663.61 Scholarship Unutilized budget due to
Programs unimplemented scholarship
programs that resulted in a
more or less 31,039
scholarship slots not
availed/enrolled by targeted
beneficiaries, and other gaps
that delay the full attainment
of the Programs’ objectives.
29 TRB 36.82 4.39 Procurement of Of the total allotments
Computer received by TRB amounting
Software and to P36.821 million in CY
ICT Equipment 2020, only the amount of
P32.433 million or 88.08
percent thereof was
obligated, leaving an
unobligated balance of
P4.389 million as at year-
end. The procurement of ICT
Equipment and Computer
Software did not push
through in CY 2020 due to
COVID-19 pandemic.
Subtotal - NGAs 562,247.00 65,651.25

SUCs
1 BU, MPC, 2,155.08 773.43 Special Trust Unutilized Special Trust
PhilSCA, Fund Funds adversely affecting the
PNU and effective and efficient
TUP delivery of
Programs/Projects and
Activities consistent with the
trifocal functions of the
College
2 EARIST, 17.64 13.58 Tertiary Low utilization of funds
MPC and Education released for Tertiary
PhilSCA Subsidy Education Subsidy program
program due to the delay in the release
of funds by CHED,

320
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
preventing the student-
grantees from the timely
utilization thereof, thus
defeated the purpose of the
TES program
3 JRMSU - 125.29 The delay and non-
System implementation of various
programs and projects
resulted in under spending
amounting to P61.266
million and unutilized TF in
the amount of P125.287
million for CY 2020 thereby,
affecting the delivery of the
expected benefits and
operational efficiency of the
University.
4 PhilSCA 3.00 0.64 Tulong Dunong Out of the ₱3,000,000.00
Program fund transfer from
CHEDRO- NCR for the
implementation of the
Tulong Dunong Program, a
total of ₱636,000.00 was not
utilized/released to the
student-grantees by
PhilSCA, thereby adversely
affecting the educational
needs of the underprivileged
yet qualified and deserving
student-grantees, contrary to
the Joint CHED-DBM
issuances on the Program.
Also, the copy of
Memorandum of Agreement,
as vital basis for the
evaluation of Program
implementation was not
submitted to the Audit Team.
5.08 5.05 Research The minimal utilization of
projects, the budget for research
programs and projects, programs and
activities activities of only ₱34,285.48
or less than one percent of the
₱5,083,027.91 allocated
budget, defeated the goals
and objectives of the College
to establish research culture
by promoting and enhancing
research awareness among
faculty members and
students and to conduct
relevant and high impact
researches in the fields of
Aeronautical education.
11.43 9.40 SALIKHA and The delayed implementation
CHED- of PNU-Mindanao of the

321
 Appropriation/ Project
Cost Program/
No. Agency Observation
(Million ₱) Project
Total Unutilized
Institutional CHED-funded SALIKHA
Development and IDIG research projects in
and Innovation CY 2018 resulted in the low
Grants (IDIG) fund utilization rate of 19.52
percent and 17.15 percent,
respectively, after the end of
its extension on December
31, 2020, with a total
unutilized balance of
₱9,404,559.41.
Subtotal - SUCs 2,192.23 927.39
Total 564,439.23 66,578.64

Recommendations

The Auditors recommended the following courses of action:

Agency Recommendation
All a) Maximize the use of allotments by proper planning and improved budget
agencies preparation, strengthen cash programming and management system through
and SUCs preparation of realistic disbursement program, fast track the procurement
process and timely implementation of programs and projects so as to minimize
unobligated allotments;

b) Supervise and closely monitor the implementation of programs and projects

making sure that the same are within the approved timelines;

c) Ensure the timely release of funds to implementing agencies;

d) Return/remit the unutilized balances of allotment transferred to Regional Offices

or attached agencies to the Central Office/Head Office or to the National
Treasury to fund other priority programs/projects.

e) Intensify the hiring for unfilled plantilla positions;

f) Prepare a catch-up plan including interventions on programs with unutilized/

underutilized allotments;
CFO a) Revisit the policies and guidelines on the management of processing fees and
ETSP funds to properly classify them; hence, avoid complications in their
remittance to BTr and release to CFO;

b) Direct the Administrative and Finance Division to resolve the dispute with BTr
and communicate the release of ETSP funds previously remitted for the
continuance of the scholarship program under the enhancement training
program; and

c) Review and revise the rules, regulations and policies on a regular basis to ensure
that the objectives of AO NO. 242 are achieved.

d) Further instruct the Accountant to reconcile the subsidiary ledger of EVP funds
pertaining to the unknown releases of P43,767.31, P2,000.00 and P72,346.98,
and submit the report to the Audit Team for evaluation.
DOH a) Strictly comply with existing laws, rules and regulations;

322
 Agency Recommendation
b) Impose administrative sanctions on erring officials/employees in accordance
with PD No. 1445, Administrative Code of the Philippines and other applicable
laws;

c) Plan carefully through proper and complete identification of all

equipment/facilities needed by the hospitals to deliver quality health care
services to intended patients and prioritize the utilization of the allocated hospital
income; and

d) Henceforth, ensure that at least 25 percent of the hospital income is allocated for
the procurement of necessary equipment and upgrading of hospital facilities to
provide the intended patients with access to better health care services
DPWH Require the contractors concerned to timely submit their claims for progress and final
billings with complete documentary requirements; facilitate the completion of
projects particularly those affected by the pandemic to fully maximize and improve
the absorptive and spending capacity of the agency in terms of disbursements of
allotments received; avoid any adverse effect on their future budget levels by
initiating pre-procurement activities, facilitating the procurement process,
conducting adequate planning and monitoring; and, adopt a complete and adequate
procedures to implement the targets in order to be responsive to program realities
and actual conditions.
DSWD Give priority to the full implementation of the SLP through proper coordination,
collaboration and communication with the program implementers to improve the
socio-economic status of the beneficiaries, maximize the benefits to be derived
therefrom, attain the ultimate goal of reducing poverty incidence and improving the
quality of life for the poor, vulnerable and disadvantaged sector
EARIST a) Closely monitor and strengthen the coordination with the concerned office of
CHED thru its representative on the release of grants and its related documents
to facilitate the timely release of fund to student beneficiaries; and

b) Comply with stricter deadline in the submission of requirements to avoid delay

on stipend release.
GHQ, Direct the OG4 and 7th AFP FASU to make written representations with the
AFP OTQMG for the optimal utilization of the ₱8,380,581.99 RMC fund earned from
2015 to 2019, or for the conversion of rebates into future deliveries of FOL products
to PSG and initiate steps to recover from Petron Corporation the ₱1,910,406.30 that
was not withheld from the payment and remit the same to the BTr
JRMSU Consider the grant of continuing authority to the University President to execute and
System enter into contract with authority limits coming from the Board of Regents of the
University to address delay and to facilitate operational efficiency.
TESDA a) Instruct the District Office (DO) officers and personnel responsible for the
preparation of yearly Scholarship Allocation Plan to revisit and scrutinize the
absorptive capacities of selected eligible TVIs, selecting only those programs
that the TVIs can execute within the target Calendar Year; and

b) Consider the timing of the release of the enacted budget GAA with the approval
and release of RQMs for the early implementation of scholarship programs and
to adopt the guidelines of the CBS in the preparation and execution of the
allocated budget to improve the attainment of financial and physical targets, and
not to be overwhelmed with the changes when the CBS shall be finally
implemented.

6. Unutilized Notice of Cash Allocations of 14 agencies and 4 SUCs amounted to

₱28.68 billion and ₱111.26 million, respectively, due to improper planning and
forecasting, late approval and release of funds, delayed program/project
implementation and slow procurement process, among others.

323
 Unutilized
Program/ Project
No. Agency Observation NCA
Affected
(Million ₱)
NGAs
1 BFAR FishCORAL project The FishCORAL project reported a low 115.65
cash utilization rate over its total cash
allocations, keeping the cash idle in the
bank and/or automatically reverted
during the year due to COVID-19
pandemic which hindered the
implementation of the activities.
2 DA Various Projects The unutilized balance of ₱9,806.538 9,806.54
million or 16.61 percent attributable to
delayed delivery of goods, delayed
submission of disbursement vouchers
for payment, and non-implementation
of some projects and activities due to
the constraints of the COVID-19
pandemic, among others, was reverted
to the National Treasury. Also, it
registered cash utilization rate of 83.92
percent for Provision of Agricultural
Equipment and Facilities under Rice
Program wherein deficiencies and
inconsistencies in the disbursements
were observed in RFO I.
3 DENR Enhanced National Of the ₱18,024.157 million Notice of 1,126.12
Greening Program, Cash Allocations received, inclusive of
Manila Bay the two major projects, the ENGP and
Rehabilitation MBRP, the PRCMO and the two
Project, Pasig River Foreign Assisted Projects, FMP and
Coordination and INREMP, ₱16,898.037 million or 93.75
Management Office, percent were utilized inclusive of
Forestland payment of Accounts Payable, leaving
Management an overall unutilized NCAs of
Project, Integrated ₱1,126.119 million or 6.25 percent.
Natural Resources Moreover, cash utilizations were low in
and Environmental DENR CO, Regions IV-B and XI and
Management Project PENROs Ilocos Sur and La Union with
unutilized balance amounting to
582.612 million, 31.189 million, 10.367
million, 0.287 million and 0.071
million, respectively.
4 DepEd Various PAPs The agency received a total of 10,291.10
₱51,699,452,349.00 NCAs for the
period covering January 1 to December
31, 2020, of which an amount of
₱41,408,356,865.39 or 80.09 percent
was disbursed, while
₱10,291,095,483.61 or 19.91 percent
had lapsed and reverted to the BTr,
depriving all its stakeholders of the
fullest possible use that can be derived
from the allocated resources.
Various Projects Out of the total NCAs amounting to 869.75
₱19,050,124,524.11 received by nine
SDOs in CY 2020, a total amount of
₱18,180,376,336.02 or 95.43 percent
was disbursed, which resulted in a total
unutilized amount of ₱869,748,188.09

324
 Unutilized
Program/ Project
No. Agency Observation NCA
Affected
(Million ₱)
or 4.57 percent of the total received
NCAs. Of the said unutilized amount, a
total of ₱314,469,427.79 was reverted
to the BTr.
5 DOE Various programs/ DOE received a total NCAs of 780.42
projects P2,031.758 million of which only
P1,251.341 million or 61.59 percent
was utilized, thereby, leaving a balance
of P780.418 million, which was
reverted to the Bureau of the Treasury.
6 ECCDC a) Unobligated Of the total ₱226,230,000.00, 72.70
MOOE Allotment – ₱72,701,312.78 or 32.14 percent of
Regular Fund: Notice of Cash Allocation had lapsed
1. Development of and reverted to the BTr depriving all of
Policies, Standard its stakeholders of the fullest possible
and Guidelines use that can be derived from the
2. Capacity Building allocated funds to finance its approved
and Institutional programs.
Development of
Stakeholders and
Other Partners

b) Unobligated
MOOE Allotment –
SAGF:
1. Travelling
Expenses
2. Other
Professional
Services
7 ERC Majority are related Of the total cash allocations of 59.46
to programs and P559.377 million received during the
projects for year, P499.915 million was utilized and
Information and the balance of P59.463 million
Technology remained unutilized and was reverted to
equipment, the Bureau of the Treasury.
software, services,
and repairs that may
enhance the
adaptability and
digital readiness of
the ERC to the new
normal
8 FPA Various projects Of the total Notice of Cash Allocation 37.21
of ₱243.397 million received during the
year, 84.71 percent or ₱206.186 million
was utilized/disbursed with a balance of
₱37.211 million which was reverted to
the National Treasury due to
discontinuance of appropriated
“Programs, Activities and Projects” for
second quarter and late submission and
incomplete documentation of
disbursement, hence, payment could
not be processed.

325
 Unutilized
Program/ Project
No. Agency Observation NCA
Affected
(Million ₱)
9 IA Procurement of Of the total cash allocations of P67.412 17.58
supplies and million, P17.578 million or 26 percent
materials, repairs was not utilized which was
and maintenance of consequently reverted to the Bureau of
buildings and the Treasury.
structures and
Design and
Development of the
IA Integrated
Information System
10 NMIS Marawi Of the total cash allocation received 242.65
Rehabilitation during the year, 69 percent was
Program and utilized/disbursed with the balance
Bayanihan 2 reverted to the National Treasury due
Programs to: (1) failed biddings and (2) delayed
finalization and signing of MOA
11 NPDC Procurement of Of the total cash allocations of 22.56
supplies and P263.779 million, only P22.558 million
materials and or 8.55 percent was not utilized which
infrastructure was reverted to the Bureau of the
projects Treasury.
12 NTC Benchmarking Lapsed Notices of Cash Allocation in 20.11
Project, an ROs VIII and IX in the amount of
Information and ₱15,134,485.48 and ₱4,979,032.29,
Communications respectively, were reverted to the
Technology National Treasury as at December 31,
Software and 2020, as a result of improper planning
Equipment and other and forecasting, thus, affecting the
Capital Outlay optimal fund utilization and the timely
projects implementation of the projects/
programs/activities of the agency.
13 TESDA Scholarship The transfer of P5.71 billion funds by 5,210.00
Program ROs to OUs for the implementation of
the scholarship/training programs on
the basis of approved Qualification
Maps only instead of their actual
requirements, manifests the intent to
avoid the lapsing of Notices of Cash
Allocation that resulted in the
accumulation of unutilized/idle funds in
the Cash-LCCA of TESDA OUs
nationwide in the aggregate amount of
P5.21 billion at yearend.

14 TRB Procurement of TRB utilized P36.766 million or 90.21 3.99

Computer Software percent of the total NCAs/NTCA
and ICT Equipment received in CY 2020 amounting to
P40.756 million with only P3.989
million or 9.79 percent thereof reverted
to the BTr as at year-end.
Subtotal – NGAs 28,675.84
SUCs
1 BISU and National Non-reversion of unutilized cash 39.70
CTU Government's allocations in the General Fund to the
Projects BTr which deprived the government of
maximizing the use of the unutilized
funds for other relevant undertakings.

326
 Unutilized
Program/ Project
No. Agency Observation NCA
Affected
(Million ₱)
2 JRMSU Various Projects The delay and non-implementation of 68.71
System various programs resulted in lapsed
NCA in the amount of P68.709 million
3 ZCSPC Outstanding The College failed to maximize the 2.85
obligations of the utilization of its cash allocation as
College represent programmed in their Monthly
replenishment of Disbursement Program resulting in the
petty cash fund, reversion of ₱2.853 million to the BTr
claims of employees for CY 2020
and
suppliers/contractors
for various expenses
such as salaries and
wages, loyalty pay,
training expenses,
office supplies,
billing of
contractors, among
others, which
remained unpaid at
the end of the year
due to insufficient
documentation and
error in the Cashier’s
available NCA
balance
Subtotal - SUCs 111.26
Total 28,787.10

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendation
All a) Improve procurement planning, fast track project implementation, procurement,
agencies cash management and disbursement processes to maximize NCA utilization and
and SUCs prevent the lapsing of cash allocations and non-implementation of planned
activities

b) Re-design the project’s program and activities that can adopt to the required
protocols under the “new normal” or consider other approaches, ways and
strategies in order that equally relevant activities can safely be undertaken and
funds appropriated therefor be efficiently utilized according to its intended
purpose
FPA Instruct all Regional Field Offices to immediately submit the Disbursement Vouchers
with complete supporting documents to the Accounting Section to facilitate its
payment before the quarterly reversion will take place and to avoid reversion of fund
TESDA a) ROs to transfer funds to OUs not only based on the approved QMs but also in
accordance with their actual requirements and the reported actual Due and
Demandable Accounts to prevent the accumulation of funds at the OUs

b) ROs to comply strictly with DBM guidelines on the incurrence of obligation,

utilization of NCAs, and validity of appropriation; and

c) ROs to closely monitor unutilized cash subsidy already due for return/reversion
to the National Treasury but still retained at the OUs.

327
 Agency Recommendation
BISU and a) Require the Budget Officers and the Bookkeepers to prepare a statement of
CTU unutilized funds as of December 31, 2020 and every year thereafter.

b) Require the Bookkeepers prepare the disbursement voucher for the remittance
of the unutilized/unencumbered funds to the Bureau of Treasury in compliance
with COA Circular No. 90-326 and the appropriate DBM National Budget
Circulars.

7. Funds for various programs/projects amounting to ₱935.39 million and ₱20.46

million, for agencies and SUCs, respectively, were used for purposes other than
for which they were intended, thus, adversely affecting the implementation of
the programs/projects.

Amount
No. Agency Observation
(Million ₱)
NGAs
1 DOST Construction of facilities funded out of the Maintenance and 820.51
Other Operating Expenses allotment under the General
Appropriations Act without the corresponding approval
from the DBM on the allotment modification or more
appropriately a legislative approval for the capital outlay
component of the research projects under S&T GIA fund
releases.
Trust receipts from the Department of Health Regional 0.54
Office No. 1 were utilized for a project not within the
specific purpose for which the Trust was created or the
funds received, contrary to the provisions of Presidential
Decree No. 1445, COA Circular No. 2012-003 and DOST I
- DOH I MOA on the Roll-out of 1,000 RxBoxTeleHealth
Devices in selected Rural Health Centers in the Philippines.
2 DOT Cash advance for Care Provision Project was utilized for the 0.10
purchase of unrelated items such as tokens and gallons of
sodium hypochlorite.
Project funds granted by the Government of Japan were 20.99
used for the payment of the security services as well as the
honorarium of the IA employees which were not part of the
cost of the Project.
3 DPWH Expenditures which were not directly related to pre- 43.85
construction and implementation of the projects were
charged against EAO funds, contrary to the Special
Provision No. 11 of the DPWH GAA FY 2020.
4 EMB The Implementation of Ecological Solid Waste 6.91
Management Regulations registered a fund utilization of
₱297.060 million or 95 percent of its available allotment of
₱313.429 million, of which ₱6.915 million were
inconsistent with the purpose of appropriation/allotment
which is not in accordance with Sec 60 of GAA for FY
2020. Small portion of budget for most program, activity
and projects has an allocation intended for these
expenditures since the General Management and
Supervision has only a small budget to accommodate the
budgetary requirements for these expenditures.
5 ICAB CA disbursed not in accordance with the specific legal 0.25
purpose
6 NAPOLCOM Funds utilized in the procurement of various equipment 2.07
were sourced from the allotment for Maintenance and Other
Operating Expenses without the required authority from the

328
 Amount
No. Agency Observation
(Million ₱)
Department of Budget and Management, contrary to Section
17 of the GAA for FY 2020, COA Circular 2012-001 dated
June 14, 2012, and the GAM; thereby, casting doubts on the
legality of disbursements.
7 PCHRD The publication of the Implementing Rules and Regulations 0.22
of Republic Act No. 11337 or the “Innovative Startup Act”
in the Official Gazette and in the national dailies, amounting
to ₱0.223 million, charged against the PhilHealth STUDIES
and AHEAD programs’ funds, contravened the intended
undertakings stated in the MOA of the said programs, hence,
deemed irregular under Section 3.0 of COA Circular No.
2012-003.
8 TESDA Fund transfers to ROs as fund augmentation for various 39.95
purposes amounting to ₱39,954,475.202 contravene the
rules on fund augmentation provided under the GAA of FY
2020 and Section 4 of PD No. 1445 on the prohibition on
payment without valid appropriation or law allowing the
same
Subtotal - NGAs 935.39
SUCs
1 BukSU, CMU, Charging of various expenses such as Board of Regents’ 3.96
CPSU, activities, COVID-19 related expenses, RATA and salary
NMSCST, differentials to the Special Trust Fund which is not included
NONESCOST, in the fund purpose
NORSU, RSU
and SSC
2 ESSU, EVSU Honoraria of Graduate School faculty and Board of Regents 7.22
and SSCT and COVID-19 Hazard Pay charged against Income
Generating Project Funds, thus depleting the IGP of the
university/college.
3 ISU Project funds were used for expenses unrelated to the project 0.51
being implemented, in violation of Section 4(3) of PD 1445
otherwise known as the Government Auditing Code of the
Philippines and the Project’s Memorandum of Agreement.
4 TUP Improper utilization of Curriculum Development allocation 7.10
for honoraria to pay the salaries of part-time faculty
professors without duly approved contracts.
5 UNP Cumulative amount of positive VOs issued for three 1.67
projects aggregating ₱1,672,725.90 were charged against
Direct Engineering Expenditures allotments of Projects,
which was not in accordance with Section 37, Presidential
Decree No. 1177 and Section 11, Special Provisions of the
GAA FY 2020, casting doubts on the legality and regularity
of the transactions.
Subtotal - SUCs 20.46
Total 955.85

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendation
All agencies a) Ensure that funds are utilized in accordance with the budgetary ceilings and
spent only for the specific purpose for which the funds were created or
received

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 Agency Recommendation
b) Strictly comply with the requirements for budget realignment/modification;

c) Adhere to the prescribed rules and regulations regarding the obligation and
disbursement of funds.
DOST Judiciously screen projects for funding to avoid allocating funds to Agencies for
programs which should have been funded from their specific budgets under the
GAA
DOT a) Require the accountable officials to submit complete set of contracts with
the security agency rendering services in Maestranza site from CY 2009 to
CY 2018 and other documents that could clearly and validly support the
disbursements made for security services to avoid any suspensions and/or
disallowance in audit; and

b) Submit documents and/or legal basis that could support the validity of
charging the payment for security guards and honorarium of IA employees
to the herein grant, otherwise, cause the replenishment of the amount used
to avoid disallowance in audit.
ICAB a) Direct the Accountant to monitor the CAs and ensure that these are promptly
liquidated after completion of their purpose;

b) Require the AO to submit a full liquidation of her CA after completion of

its purpose and to refund any unspent balance; and

c) Consider a one-time grant of CA to the AO for pre-travel expenses and

subject the same for replenishment throughout the year, instead of granting
twice with exactly the same purpose.
TESDA Provide authority or basis for the grant of fund augmentation to ROs and explain
why this should not be considered as technical malversation of public funds and
be disallowed in audit.
BukSU and Replenish the Special Trust Fund with an amount from the General Fund
CMU equivalent to the valid claims disbursed from the former or we will be
constrained to disallow these payments
ESSU a) Consider equally qualified faculty members with junior academic ranks to
handle graduate courses, and limit the number of units of loads assigned to
senior faculty members to comply with the budget; and

b) Approximate/allocate the amount of honoraria that shall be paid to the

Graduate School professors with the corresponding tuition and other fees
that can be charged from, together with the budget allocation from the GAA.
TUP Assess/revisit the University’s policy on the assignment/granting of teaching
loads to regulate/limit the disbursements of honoraria for overload that are
aligned within the prescribed allocation set forth in CMO No. 20, s. 2011.
UNP Instruct the Head of the Budget Office and Director for IPMDO to limit the
charging of positive VO within the available savings derived from the difference
between the ABC and Contract Amount. Henceforth, strictly adhere to Section
77, PD No. 1177 and Section 11, Special Provisions of the GAA.

8. In 57 agencies and 27 SUCs, dormant/unutilized funds or unauthorized bank

accounts/ deposits, and income which the agencies are not authorized to use
amounting to ₱23.82 billion and ₱164.54 million, respectively, were not reverted/
deposited to the BTr or returned to Source Agencies contrary to applicable laws,
rules, regulations and Supreme Court decisions depriving government of
additional funds for its operation.

330
 No. of Years
Amount Dormant/
No. Agency Nature of Funds/ Deposits
(Million ₱) Unutilized/
Unreverted
NGAs
1 BFAR 28.74 Dormant Cash, Unauthorized Accounts, Unnecessary Ranging from
funds, and Fees, charges, assessments, and other 10 years and
receipts or revenues collected, trust receipts and above
performance bonds
2 BFP 7.46 Collections from sale of bid documents and receipt of
guaranty/security deposits
3 BIR 20.41 Due from Officers and Employees and unremitted 10 to 30 years
Collections
4 BOC 59.04 Fund transfers to PS-DBM representing balances/ 2 to 6 years
savings from the procurement of non-common-used
88.78 Seized and confiscated currencies 3 years and
below
24.81 Idle Cash in Bank-LCCA-Payroll Fund Account (LBP
Current Account No. 0282-1050-63) and Cash in Bank-
LCCA-PSF Yolanda Fund Account (LBP Current
Account No. 0282-1051-87)
1,044.00 Trust receipts/collections N/A
5 CHED 254.13 HEDF Seed Capital and other funds held in trust seven to 15
invested at/ managed by known government and private years
financial institutions and earn interest/ investment
income
6 COMELEC 277.22 Trust Funds 3 years
7 DA 87.91 Dormant cash, unnecessary fund/ unauthorized account
and other receipts/revenues of nine DA Offices
8 DAR 17.38 Trust receipts and performance bonds of 11 DAR
Offices
9 DENR 23.62 Depository account for receipts from sale of bid
documents, income from guest house/hostel, receipts
from foreign grants, collection of disallowances and
other receipts.
10 DepEd 4,169.60 Unauthorized maintenance of bank accounts, transfer of Not provided
unutilized/excess Notices of Cash Allocation
(NCAs)/Notices of Transfer Allocation to Cash in Bank
–LCCA, and retention of collections/receipts from
various sources
11 DFA 10.46 PCG Guangzhou - Savings Account More than 6
PCG Osaka - Savings Account (DOLE & Public years
Relations)
PCG Osaka - Current Account (Consultancy Fund,
Earthquake Fund
PCG Tokyo – Savings Account (Disaster)
2.80 End of Service Benefits Funds interest earned from
various bank accounts maintained under Passport
Revolving Fund and Trust Fund at the Home Office
12 DICT 255.65 The Agency has no information on the purpose of the Could not be
fund maintained in its three bank accounts of the Central determined
Office since these were created several years ago to due to
finance the predecessors agencies which had no insufficient
complete Subsidiary Ledgers / schedules and bank information
reconciliation statements while one bank account on the bank
pertained to unutilized balances of training fees. accounts

As for the bank accounts of the Field Operating Offices,

cash in bank balance were funds transferred from the
CO's regular account to its FOOs' trust accounts
(absorbed from predecessor agencies of DICT) for the
implementation of the latter's specific programs or
projects and other inter- agency transactions.
13 DILG 61.41 Unutilized operating funds of City/ Provincial Offices in
three regions

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 No. of Years
Amount Dormant/
No. Agency Nature of Funds/ Deposits
(Million ₱) Unutilized/
Unreverted
14 DOE 33.70 Dormant/inactive accounts for: Various
 Mirant SSMP ranging from
 Old 2 TCF 2 years to 23
 Gasoline Station Training Loan Fund years.
Typhoon Yolanda Assistance
15 DOH 441.24 Depository accounts as well as fees and other receipts or Various Years
revenues collected
16 DOLE 18.69  Refunds of LGUs/ACPs five to 11
 Various collections and balances of discontinued years
programs of the RO in prior years
 Unauthorized trust funds deposited and maintained
under the Philippine Veterans Bank, LCCA
17 DOST 8.09 Inactive CIB-LCCA, Trust and testing fees collected 3 to 5 years
without the covering authority to use were not dormant.
reverted/remitted to the National Treasury.
207.81 Cash in Bank, LCCA of seven Offices included funds 3 to 5 years
downloaded from the appropriations of the DOST-SEI
for the Science & Technology scholarship program,
with a total balance of ₱207,807,664.62, and
unnecessary project funds as the purposes for which the
funds were established were already attained.
18 DOT 4.65 Collections from proceeds of sale of bidding documents 5 years
of BAC
83.45 Unauthorized LCCA and inactive account 5 years
19 DPWH 0.71 CIB-LCCA balance could not be ascertained because over 5 years
there are no available schedules and supporting
documents to prove/show the account’s validity and
details.
14.22 Interest from various bank deposits and unutilized Not stated
collections from sale of bid documents/ seminar fees
20 DTI 10.88 Excessive fund transfer to facilitate transfer of funds
from the RO to POs for their operating expenses due to
the difficulty of processing all claims in the RO
21 EMB 9.41 Proceeds from the sale of Bidding Documents; 1 year
Performance Bonds; Financial Assistance from DENR-
PRCMO DENR and Fund transfers from DENR-CO
22 FNRI 0.02 Income from the conduct of trainings 1-2 years
23 FPRDI 3.11 Research funds for the trust assisted project one year to
more than two
years
24 GHQ, AFP 1,812.80 Unauthorized 20 bank accounts deposited with the LBP,
DBP and UCPB
469.12 Scholarship fund, donation, interest income and other
unutilized funds
25 IA 7.02 Unutilized balances of funds transferred for specific 3 to 5 years
projects by the National Commission for Culture and the
Arts and the Department of Tourism
26 LGA 19.11 Unutilized fund transfers from Regions, grant by from 2008 to
ASEAN Plus Three Cooperation, direct deposit from date
Dangerous Drugs Board, interest earned less
Withholding Taxes and others
27 MARINA 0.09 One bank account maintained by MRO No. VII 5 years and
more
28 MDFO 571.65 Unremitted Administrative Fees Fund authorized to be less than 1
used for the MDF’s administrative and operational year
expenses for its loaning and borrowing activities with
Local Government Units despite abandonment of the
purpose of the Municipal Development Fund operations
and the cessation of its administration by the MDFO
29 MIRDC 1.16 Trust Receipts 6
30 MMDA 30.07 Trust Fund for MMDA Housing Revolving Fund 7 years

332
 No. of Years
Amount Dormant/
No. Agency Nature of Funds/ Deposits
(Million ₱) Unutilized/
Unreverted
31 NLP 3.27 Cash in Bank, LCCA representing excess proceeds of
receipts from sale of bid documents, registration/
seminar fees, and guaranty/ security deposits
32 NLRC 0.36 Interest earned not deposited to BTr
33 NM 0.30 Performance Securities Less than a
year
34 NPDC 6.44 Trust Funds Undocumented
prior years
balance
35 NRCP 0.44 Trust receipts 3 years
36 OCD 4.46 Maintenance of a temporary account with DBP for N/A
payroll has no legal basis
37 OPAPP 50.47 Special Accounts- Locally Funded /Domestic Grants More than 5
Fund years
38 OSG 0.14 Collections for Performance Bond
39 PAF 30.02 72-100 Reimbursable Fund 3 years
40 PAGASA 1.57 Eight (8) bank accounts under the Cash in Bank-LCCA 3 to more than
account, the purposes for which the funds were 5 years.
established have been attained
41 PCAARRD 3.92 Fund transfers from other NGAs representing research for less than
funds for the trust assisted project one year to
over six years
42 PCW 0.71 Unutilized fund for Foreign Assisted Project – GREAT 4 years
Women Project was not yet returned to Canadian
International Development Agency
0.42 Unutilized/unspent balance of Fund Transfers for 3 years
already completed programs
43 PhilMech 8.20 Proceeds from sale of bid documents and protest fees
44 PHIVOLCS 0.86 Excess funds for GIA-Funded Projects not returned to Various years
Source Agency despite project completion
45 PIA 149.29 Unutilized fund transfers from NGAs and GOCCs were -
not returned to the source agencies despite project
completion
46 PN 52.50 Rental, other collections, liquidated damages, RMC less than 1
Fund, Interest year
47 PNP 5.60 1. Savings from BAC FUND, Fifteen (15) construction -
projects and repair of R7 Quarters
2. Proceeds from GSIS insurance
3. Payment for lost government properties
4. Other Income - Rental of Matapat Hall, Rental from
Concessionaire, Rental of PRO8, and Collections
from issuance of vehicle decal, violation of Camp
rules, Ambulant Vendor and Sale of BER CY 2018.
48 POEA 15.73 Unutilized funds under Trust Liabilities for
Employment Permit System – Test of Proficiency in
Korean, EPS-Training Fees, CAEP and Pre-Licensing
Orientation Seminar
49 PPA 0.35 Income generated from the operations of the dormitory
and Multi-Purpose Hall were not remitted/deposited to
the national treasury
50 PRC 1.34 Excess on the proceeds from the sale of bid documents
after payment of Honoraria
1.70 CIB-LCCA designated as “BAC Fund”
4.98 Receivables from the Bureau of Treasury for the Unknown
implementation of various projects against funds
received from other agencies:
• Operation of PRC’s Educational Statistics Task Force
in the amount of ₱1,930,743.13
• Research project entitled “The Assessment of the
Examinees and CHED Higher Education Institutions
Performance in Six PRC Licensure Examinations for

333
 No. of Years
Amount Dormant/
No. Agency Nature of Funds/ Deposits
(Million ₱) Unutilized/
Unreverted
Agriculturist (2003-2008)” by the Board of Agriculture
funded by the Bureau of Agricultural Research; and
• Insurance policy claim by the Commission issued by
GSIS in reference to the Fire Loss Insurance at the 4th
Floor, Annex Building.
51 PS 10,870.00 Inter-agency transferred funds and Other Payables for 4 years and
the procurement of CSE and materials for the use of the above
national government and its agencies and
instrumentalities
117.70 Unidentified deposits resulting in idle funds due to
deficiency in accounting controls for unidentified
deposits
52 PSA 225.12 Unremitted Government Share from the proceeds of
User Fees generated thru the CRS
15.34 PSA’s Trust Liabilities
53 PSHS 0.48 Trust receipts/funds Various Years
Western
Mindanao
Campus
54 PSRTI 1.03 Excess training fees and interest income
55 SEI 1,712.98 Unutilized scholarship funds of approximately ₱1.7
billion reported in prior years and an undetermined
amount of scholarship funds transferred to the
Implementing Agencies
56 TESDA 356.39 Unauthorized retention of unutilized Scholarship 1 to 3 Years
Program Fund
57 UNACOM 1.51 Dormant Fund transfers to NGAs 8 - 10 years
Subtotal - NGAs 23,824.04
SUCs
1 ASC 1.05 Insurance proceeds and excess amounts from proceeds
from sale of bid documents
2 BISU 1.34 Refunds of various disallowances and overpayment of Not stated.
salaries
3 BukSU 0.25 Bank accounts of closed External Centers
4 CBSUA 1.51 Trust funds not returned to Source Agencies 5 to 9 years
5 CHMSC 0.11 Unexpended PDAF over 7 years
6 CSU 0.93 Proceeds from Sale of Bid Docs
1.79 Trust Funds 9 years
7 CTU 1.13 Excess registration fees from the conduct of National Less than a
Conference for the Arts, Sciences, and Education year.
8 DHVSU 0.44 Proceeds from sale of scrap materials from demolished
buildings
9 EARIST 0.76 Interest income from bank account maintained for RTF 7 years
10 EVSU 1.26 Unexpended funding requirements at the External
Campuses
11 JHCSC 4.89 Three dormant bank accounts being maintained by the 2 years
Dumingag and CMSE Campuses
12 MinSCAT 37.77 Former depository bank of two Campuses prior to 1 year
implementation of one fund concept, unauthorized bank
accounts
13 NLPSC 0.26 Bidders Fee representing proceeds from sale of bid
documents net of honoraria and other charges
14 NORSU 0.73 SHS and General Fund over 3 years
15 NVSU 1.27 Unexpended Fund Transfers from other National 2 to 12 years
Government Agencies for the implementation of various
research undertaking/training for the development of
new programs/ projects
16 PhilSCA 0.40 Proceeds from Sale of Bidding Documents more than two
years

334
 No. of Years
Amount Dormant/
No. Agency Nature of Funds/ Deposits
(Million ₱) Unutilized/
Unreverted
17 PNU 37.59 Transferred funds from PNU Main's Cash - NT MDS to 2 years
PNU Mindanao and PNU North Luzon which were
deposited as CIB-LCCA
18 PSU 3.36 Various Inter-agency transferred funds for already 3 to more than
completed projects (Scholarship Grants, Research and 10 years
Development Grant, etc.)
19 PUP 3.83 Excessive fund transfers by CHED due to variances in
the number of approved beneficiaries in the respective
PUP campus/branch per Listahan 2.0 as compared with
the Payroll Registry for Tertiary Education Subsidy
20 RSU 1.03 Unused funds transferred by different National 2 to 8 years
Government Agencies for the implementation of various
projects
21 SSC 2.10 Fund transfers from NGAs for various completed, 2 to 16 years
unutilized and/or non-moving programs, were not
returned to the Source Agencies or the National
Treasury
22 TAU 1.20 Unutilized balance for the Construction of Information More than 1
Technology Data Center Project which is no longer year
necessary for the attainment of the purpose of the fund
23 TUP 0.51 Unreturned excess charge of School ID Fees
24 URS 8.57 Idle Trust Funds/ fund transfers from other NGAs 2-13 Years
25 USTP CDO 15.96 Initially taken up as trust liabilities by the agency. 11 months
Further verification with CHED disclosed that these
transferred funds pertain to the payment of tuition fees.
26 VSU 23.91 Fund Transfers from various source agencies for project 2 years to
implementation over 2 years
already
27 ZSCMST 10.59 Various fund transfers received from Government 3 years
Agencies.
Subtotal - SUCs 164.54
Total 23,988.58

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendation
All a) Monitor all cash balances determine idle/dormant/unutilized/excess funds and
agencies unauthorized bank accounts;

b) Coordinate with the Project Hear/Coordinator and Source Agencies and

reconcile the balances of trust funds to determine excess/unutilized/dormant
funds for remittance to the BTr;

c) Remit immediately to the BTr all dormant/ unutilized funds or unauthorized

bank accounts/ deposits including fees, charges, assessments, and other receipts
or revenues collected, trust receipts and performance bonds; and

d) Close all unauthorized bank accounts and remit the balances to the BTr.
BIR a) That henceforth, accountabilities of those who are to resign, retire or transfer are
collected/settled first before the attendant clearance are signed/released;

b) To require the chiefs of Regional Finance Divisions and Administrative and

Human Resource Management Division to expedite the issuance of necessary
demand letters to those with outstanding account balances; and

335
Agency Recommendation
c) To coordinate with RRs 5, 7 and 8B and inquire on the whereabouts of the
concerned employees. Once verified, either prepare a demand letter or draw
JEVs transferring these accounts to these RRs.
BOC Deposit the seized/confiscated currencies to the National Treasury for currencies
already with decision of finality in favor of the government and those under litigation
in any duly AGDB of BOC to ensure that these are safeguarded from loss or
misappropriation.
BTr - a) Exercise its functions and responsibilities on the monitoring of remittances of
National idle/unutilized cash balances of all NGAs, such as through direct coordination
Governm with the heads of agencies on the appropriate actions for the idle/unremitted
ent funds;

b) Make use of the yearly AARs on the NGAs to serve as bases in the monitoring
of the idle/unutilized funds for remittance to the BTr;

c) Coordinate with the NGAs with reported idle/unutilized funds to facilitate

immediate remittance of such funds to the BTr; and

d) Coordinate regularly with the BTr-ROs/POs, pending the implementation of the

National Government Collection and Disbursement System, for the submission
of reports on idle/unutilized fund remittances of the NGAs for monitoring of
fund balances.
CHED a) Formulate plans and programs to maximize the utilization of the HEDF Seed
Capital as well as the other funds maintained by CHED in accordance with the
purpose for which they were established; otherwise, revert the funds to the
General Fund, if warranted, to augment depleting funds of the National
Government and greatly ease current fiscal pressures brought by the COVID-19
pandemic;

b) Submit documents, such as Trust Agreements and financial reports, pertaining

to SNPLP Funds managed by LBP, GSIS, and PNB to validate the existence and
accuracy of recorded amounts of these investments; and

c) Conduct thorough investigation to identify the nature of unaccounted

investments amounting to ₱2.927 million and, thereafter, consider whether a
request for write-off is necessary.
DepEd Management must secure authority from the Permanent Committee to maintain the
current accounts which are considered extremely essential in the operations of the
Agency and refrain from transferring funds from its MDS to currents accounts.
Otherwise, close the unauthorized current accounts and remit the remaining balances
to the BTr, pursuant to the existing laws, rules and regulations.
DOST a) Coordinate with the respective State Universities and Colleges’ Office of the
School Registrar, where the scholars are enrolled, for a timely submission of
report cards (grades), similar to the procedures of DOST-SEI and UP-Diliman
wherein the former’s personnel are granted limited access on grades of pertinent
scholars; (DOST IV-B)

b) Request authority from the BTr for the maintenance of the scholarship funds
LCCA with the LBP and return the unexpended balances to the SA/BTr; (DOST
XI)

c) Henceforth, ensure that scholarship funds received shall be supported with trust
agreement with the total project cost translated into the number of scholars with
covering grants, as determined by the DOST-SEI and Regional Directors;
(DOST IV-B and XI)
LGA For grants from foreign donors, determine from the attendant agreement if unused
funds are required to be returned to the grantor, otherwise, return the same to the BTr
OPAPP Require the Chief of Finance and Administrative Services to make representation with
the Permanent Committee for the authority to maintain special account pursuant to

336
 Agency Recommendation
DOF-DBM-COA JC No. 4-12, otherwise, the balance should be remitted to the
National Treasury for lack of explicit authority to maintain such special accounts.
PNU Initiate action to ensure the opening of MDS Account by the campuses for the direct
downloading of funds for their operational requirements thru Notice of Transfer of
Cash Allocation instead of thru funding checks deposited in the LCCA account

9. Disbursements amounting to at least ₱76.77 billion and ₱1.66 billion for agencies
and SUCs, respectively, may be considered of doubtful validity mainly due to
absence of documents to establish the validity and propriety of transactions, or
payments without legal basis or considered unauthorized/ irregular/ excessive or
unnecessary for being non-compliant with laws, rules and regulations. In
addition, other practices affecting the reliability of expense accounts were also
noted in a number of agencies.

Amount
No. Agency Observation
(Million ₱)
1 AFPCES 0.43 Expenses for local travels without Itinerary of Travel
2 AFPCES and 0.68 Expenses inappropriately supported by Certification of
DILG Expenses not Requiring Receipts
3 AFPCES, BFAR 0.43 Lack of Inspection and Acceptance Report/ pre-repair and post-
and PRC repair inspection report
4 AFPCES, DepEd, 41.34 Disbursements without Official Receipts
FSI, NEDA,
NPDC and OSG
5 BCS, BFAR, 14,695.00 Payments of a legal consultant totaling without the written
DILG and PCC authority and acquiescence from the Office of the Solicitor
General, and concurrence from COA
6 BCS, BFP, DOT, 11.99 Disbursements/ expenses in excess of authorized
PIA, PSHS and amounts/allocated budget
SEC
7 BCS, BTr-Proper, 54,367.56 Disbursements such as payment of honoraria/salaries and
BuCor, CDA, allowances, benefits, wages/salaries of COS personnel, salary
CHED, CHR, differentials, fund transfers to NGOs/POs and NGAs and
DFA, DHSUD, corresponding liquidation reports, accommodations and meals,
DOH, DOLE, fuel expenses, travel expenses, overtime pay, procurement
DOLE – BWSC, related expenses, grants to various beneficiaries/scholars of
DOST, DOST- various government programs, subscriptions and insurance,
ASTI, DOT, repairs and maintenance, monitoring expenses, consultancy
DOTr, DPWH, expenses, security provider, janitorial services, cash advances
DSWD, FDCP, and corresponding liquidation, legal retainer’s fee, appearance
FPRDI, GA, DND, fees, and terminal leave with incomplete supporting documents.
HSAC, ICAB,
ITDI, MTRCB,
NAP,
NAPOLCOM,
NBDB, NLRC,
NM, NNC, NRCP,
NTC, NWPC,
OCD, OMB, OTC,
OWWA, PAF,
PAGASA, PAO,
PBS-RTVM, PCC,
PCGG, PCHRD,
PCSDS, PCW,
PHSA, PIA, PPA,
PRC, PSHS, SEI,
STII, TAPI, and
PCUP
8 BFAR, NM, PNRI 7.26 Irregular payment of Honoraria
and SEI
9 BTr-Proper and 65.57 Various allowances and benefits of Job Order worker not in
TESDA accordance with CSC-COA-DBM Joint Circular No. 1, s. 2017

337
 Amount
No. Agency Observation
(Million ₱)
10 CAB, CPD, 4,030.30 Disbursements for various expenses/ allowances/ honoraria/
DepEd, DOT, benefits without legal basis
NAMRIA,
NAPOLCOM,
Philracom, and
PCUP
11 CAB, PCC and 13.85 Disbursements without appropriation/ expenses of prior years
Sandiganbayan charged against current year's appropriations/ charged against
different allotment class
12 DOLE, NEDA, 1.79 Payments of RATA in excess of authorized rates/ grant of fixed
PIA, SEC and NM RATA instead of reimbursable RATA/ grant of RATA to
officials who are not entitled thereto/ charged to inappropriate
funds/ Grant of TA to officials with issued government vehicles
13 DOT, PCC and 0.47 Drivers’ Trip Tickets supporting the payments for fuel
PRC consumption not completely and properly accomplished/ not
submitted
14 PCHRD, 0.43 Procurement of unnecessary supplies/ material/ equipment
PCIEERD and
PCUP
15 BFP 0.08 Failure to initially register or renew registration of 421 fire
trucks and other vehicles with the Land Transportation Office
resulted in incurrence of penalty and other unnecessary
expenses
16 BI 7.99 Catering services rendered to detained foreign nationals
without valid contracts, not included in the Annual
Procurement Plan; and non-provision of budget for subsistence
allowance of each detainee
17 BLGF 0.02 Grant of Compensatory Time-Off to personnel who are on
travel status
18 BTr-NG 750 Advance payment of agency fee to LBP as facility agent on the
issuance of the 2nd tranche of the Peso-Denominated Premyo
Bonds (Premyo Bonds 2) resulted in the unwarranted release of
the agency fee and recognition of Bond Issue Cost-Domestic
19 CCC 0.41 Consultancy services paid for undelivered services.
20 CHR 0.1 Advance payments were made for the procurement of
equipment
21 DOH 557.7 Disbursements not compliant with established rules, procedural
guidelines, policies, principles or practices
22 DOLE 1.02 Excessive and multiple payments to 213 beneficiaries for
CAMP, TUPAD #BKBK and AKAP
0.37 Meal/Food/Representation Expenses was not justified as to the
nature/purpose of meetings conducted.
2.98 Nine Philippine Overseas Labor Offices Officers and
Administrative Staff who were recalled to Home Office
received the money value equivalent to 50 percent of the
relocation rates despite not serving continuously abroad for at
least two years as required under DOLE Administrative Order
No. 190 series of 2012.
23 DOST 2.65 Payment of Magna Carta benefits to officers and employees
was not in adherence to the prescribed guidelines in DBM-
DOST Joint Circular No. 1 series of 2013
8.31 The grant of financial assistance to various cooperators of
SETUP was not in conformity with the existing guidelines, due
to: (a) inconsistency between the guidelines and the Review and
Technical Evaluation Committee (RTEC) checklist; (b) not
clear as to what financial statements are required; (c) no sworn
affidavit that the applicant is not related to the approving
authority and among others, thus, hinder the attainment of the
intended improvement of productivity as well as efficiency of
qualified MSMEs through S&T interventions while ensuring
that recipients thereof have the ability to refund to the
government the corresponding assistance within the prescribed
time.

338
 Amount
No. Agency Observation
(Million ₱)
24 DOT 0.01 DOT CAR paid hotel expenses of seven staff of the DOT CO,
Intramuros Administration and TPB who were on travel to the
Region for site assessment and validation
1.64 Extravagant conduct of workshops/ meetings/ activities
0.27 Failure of the DOT to coordinate/notify PS-DBM of the
cancelled flights resulted in unnecessary payment of travelling
expenses
0.09 Purchase of additional meals/snacks using cash advance when
meals/snacks of participants were already provided in the
contract between the DOT and venue provider
0.10 Purchase of unrelated items out of cash advance
25 DOTr 6.52 Contracting services of Job Order workers without first
obtaining the approval of the Undersecretary of Administrative
Service or equivalent office
26 DSWD 1.33 Excessive cash advances granted for the implementation of the
9th cycle feeding program
0.07 Financial assistance under the AICS program were granted to
some unqualified employees
0.83 LAG was granted to 56 ineligible beneficiaries
0.92 Non-utilization and non-substantiation of LAG grants released
to 72 and 44 beneficiaries
7.86 The distribution lists that were attached to the 13 payments to
contained various questionable signatures
0.60 Unauthorized released to LGU Alcala by the SDO in three
tranches for the implementation of the Supervised
Neighborhood Play under the 9th Cycle Feeding Program
instead of returning/ refunding the said amount
27 ECCDC 2.11 Consultancy Services expenses showed some gaps, such as: a)
two retired key employees were hired as highly-technical
consultants but carried out the functions of their previous
designations; and b) non-submission of a copy of perfected
Consultancy Contracts including each of all the documents
forming part thereof to determine adherence to competitiveness
and transparency
28 GHQ, AFP 1.91 Rebates deducted from the payments to Petron Corporation
were understated which resulted in an overpayment to the
supplier.
29 HSAC 0.82 Contract of Service Personnel, Janitors and Security Guards
were granted support mechanisms
30 MIRDC 2.44 Hazard Allowance not in accordance with laws, rules and
regulations
31 MTRCB 0.05 Inconsistent with the existing policy to use MRTCB board pass
to support claims of reimbursement on monitoring expenses,
regular cinema tickets were used instead by the MTRCB Board
and deputized members with some submitted five months to
one year after use
0.75 Monitoring and inspection duties of MTRCB deputies were not
maximized to cover as many as possible movie-houses and
movies shown in cinemas that needed to be reviewed and
inspected since visits were repeatedly done on same dates and
cinemas in a day incurring monitoring expenses from May 2019
to March 2020 as there was no clear guidelines on the number
of inspection and monitoring each deputy has to undertake
within a day.
32 NAP 0.01 Double payment of the security provider
33 NAPOLCOM 2.22 Payment of overtime services inconsistent to the policies and
guidelines on overtime services and overtime pay for
government employees
34 NCIP 1.02 Multiple laptops issued to several AOs
35 NCMF 397.03 Deficiencies in the payments for housing accommodations of
pilgrims for Hajj season, such as a) the amount was paid
through cash advances; b) official receipts issued differed in
physical appearance; c) letter by MAAD to Consul General of
the Philippine Consulate General at Jeddah Kingdom of Saudi

339
 Amount
No. Agency Observation
(Million ₱)
Arabia seeking assistance to collect the SR7,560,000.00 from
the NCMF but based on the submitted receipts, NCMF have
already paid MAAD a total of P51.40 Million on April 16,
2019; and d) no document to show the actual number of
pilgrims accommodated in the hotel. While the remaining 70
percent or USD6,811,238.00 (P345,629,461.072) of the total
disbursements transferred to the bank account of MAAD could
not be validated pending submission of the official receipts and
actual number of pilgrims for the payment received.
0.30 Salary and other emoluments continuously paid to an employee
for services rendered despite disapproved/invalidated
appointment by the Civil Service Commission.
36 NEDA 0.05 Extravagant procurement of six units of semi-expendable ICT
equipment (combo multi-device wireless keyboard and mouse)
0.02 Liquidation documents disclosed that two activities having the
same 11 participants were conducted on the same day and time
on September 29, 2020 from 9:00 am to 12:00 noon, and it was
also noted that there were double purchases of costly food items
0.08 Payment for cash assistance and incentive charged against the
Extraordinary and Miscellaneous Expenses to the officials and
employees and other personnel stationed at the Agency
0.17 Payment was still made to the supplier for the catering of food
despite it being cancelled and payment of food catered during
virtual meetings/conferences
37 NM 0.06 Penalties/surcharges due to delayed payment of utility bills
38 NPO 906.50 Fourteen private printers were engaged by NPO to undertake
the printing requirements of its client agencies with the
covering DVs not supported with the related agreement or
equivalent document to support the payments
39 OTS 0.38 Erroneous computation of the four percent service fee paid to
the PS-DBM on the Supply, Delivery, Installation, Testing and
Commissioning of Final Check Type Dual View Baggage X-
Ray Machine with Tray Return System and Walk Thru Metal
Detector
40 PCC 2.00 Other assets procured for the project such as motor vehicles,
equipment, and machineries for milk processing were not
mentioned under the section on Obligations of the Parties of the
MOA between the PCC-LCSF and the farmer cooperative
which may result in the difficulty in determining the
accountability over these assets
41 PCG 71.98 Delayed refund of expired Letters of Credits due to lack of
immediate action in the cancellation/termination
42 PCGG 0.05 Delayed submission of Accomplishment Reports and Post Trial
Reports by some private lawyers
43 PCIEERD 2.25 Payment of Hazard Pay, Subsistence Allowance, and Laundry
Allowance to employees working-from-home
44 PCSDS 0.41 Overpayment of Terminal Leave Benefits due to errors in the
mathematical computation of accumulated leave credits and
failure to deduct the mandatory annual five days’ vacation leave
45 PIA 0.01 Office supplies that could not be utilized because of the
negligence of the Requisitioner who failed to consider the
correct specifications of the items prior to its procurement
0.05 Provision/Usage of mobile phone was not in accordance with
agency guidelines
0.13 Representation expenses incurred while conducting ordinary
office work and for activities/programs with few or no guests
46 PNRI 8.22 Irregular payments in advance of claims of suppliers/
employees
47 PSA 2.50 Additional expenses CYs 2019 and 2020 for accommodating
the payment of operational expenses incurred by Unisys despite
the provision in the concession agreement that it will assume all
costs related to the operations and maintenance of the CRS
which resulted in the unpaid obligation of Unisys to PSA
48 PSC 3.03 Padded athletes and coaches’ allowances

340
 Amount
No. Agency Observation
(Million ₱)
49 PSHS 7.74 Deficiencies noted on Hazard allowance, subsistence and
laundry allowance and OT pay
0.02 Overpayment of Longevity
0.10 Uneconomical cost of repairs and maintenance of
outmoded/fully depreciated motor vehicle
50 TAPI 0.28 Honoraria directly paid to concerned government personnel
who acted as resource persons
1.30 The granting and utilization of Cash Advance for the
reimbursement of Travel Expenses of provincial Finalists in the
National Invention Contest irregular due to the absence of
guidelines in the reimbursement of travel expenditures using a
rate of percentage
51 TESDA 757.53 Unsubmitted DVs and necessary supporting documents in 14
ROs
0.38 Irregular payment of CNA Incentives/ with incomplete
supporting documents
1.08 No copy of newspaper clippings evidencing publication for the
cost incurred
4.35 Travelling expenses exclusive of plane fare in attending two
international meetings/conferences held in Singapore with
unjustified number of participants/delegates
Subtotal - NGAs 76,768.30
SUCs
1 ASIST, ASSCAT, 738.94 Disbursements such as payments of salaries/wages, stipend to
ASU, BatStateU, student-grantees, terminal leave, honoraria, infrastructure
BiPSU, BISCAST, projects, incentives, salary differentials, fuel expenses,
BSC, CBSUA, allowances, procurement related expenses, OSG lawyer
CFCST, CHMSC, allowance and travel expenses with incomplete supporting
CLSU, CPSC, documents
CPSU, CSU, CTU,
DEBESMSCAT,
DHVSU,
DOSCST,
EARIST, ESSU,
ISCOF, ISU, KSU,
MinSCAT, MSC,
MSU, NEUST,
NIPSC, NORSU,
PSU, RTU, SKSU,
SLSU, SSC, UNP,
URS, USM and
VSU
2 ASIST, CBSUA, 3.29 Drivers’ Trip Tickets supporting the payments for fuel
CPSU, MSC, consumption not completely and properly accomplished/ not
NONESCOST and submitted/ Lack of Monthly Report of Official Travels and
BSC Monthly Report of Fuel Consumption
3 ASSCAT, BSC, 1.3 Extravagant conduct of workshops/ meetings/ activities
CSU and
DMMMSU
4 ASU, BSC, 11.1 Disbursements for various expenses/ allowances/ honoraria/
CBSUA, CapSU, benefits without legal basis
DOSCST, ESSU,
GSC, ISU, NIPSC,
PNU – Manila,
North Luzon,
Visayas,
Mindanao, QSU,
SSC, TSU and
WVSU
5 BISCAST, 14.86 Cash incentive under the PRAISE not in accordance with its
CBSUA and CSPC implementing guidelines/ without complete supporting
documents
6 BSC, CNU, CSU, 88.77 Disbursements/ expenses in excess of authorized
ESSU, ISCOF, amounts/allocated budget

341
 Amount
No. Agency Observation
(Million ₱)
NMSCST, SSC,
UNP and
ZSCMST
7 CapSU, CNSC, 21.48 Disbursements without appropriation/ expenses of prior years
ISU, MMSU, charged against current year's appropriations/ charged against
MSU and NIPSC different allotment class
8 CBSUA, CapSU, 48.83 Irregular payment of CNA incentives/ with incomplete
CMU, CMU and supporting documents
UNP
9 CBSUA, ISPSC, 20.76 Overpayment due to non-deduction of actual accomplishment
MMSU and of previous contractor to the take-over contract awarded to the
NLPSC next lowest calculated bidder or due to erroneous use of
effectivity date of appointment
10 CCSPC and 0.49 Penalties/surcharges due to delayed payment of utility bills
PhilSCA
11 CTU, ISU, 1.19 Procurement of unnecessary supplies/ material/ equipment/
NEUST and QSU grant of unnecessary overtime pay and other unnecessary
expenses
12 MSC, MSC, 6.13 Payments of RATA in excess of authorized rates/ grant of fixed
PMMA, RSU, RATA instead of reimbursable RATA/ grant of RATA to
TAU and TSU officials who are not entitled thereto/ charged to inappropriate
funds/ Grant of TA to officials with issued government vehicles
13 NVSU and PSU 1.38 Grant of excessive communication allowance or unmonitored
and uncontrolled subscription plans due to absence of
university policy
14 ASSCAT 0.03 Daily travel expense claims of 10 ASSCAT personnel for a side
trip included in their itineraries of travel which is non-official
business
15 BISCAST 12.21 Irregular payments in advance of claims of suppliers/
employees
1.83 Overpayment of salaries of the College President at the rate of
Salary Grade 29 instead of Salary Grade 27
16 BSC 0.37 Irregular acquisition of 400 sacks of rice amounting to
₱368,000.00 thru emergency purchase for the project “Suhay-
Buhay: Alay sa Iyo, Kabulsu”
17 CBSUA 0.19 BAC honoraria not in compliance with DBM Budget Circular
2004-5A as amended by DBM Circular 2007-03
0.82 Defects in the procurement and payment of consultancy
services for Comprehensive Land Use Plan Preparation for
CBSUA Campuses
18 CSPC 0.06 Improvement of Roofing of Various Building included pay
items that are already covered in the other work items of the
contract
19 CSU 145.23 General claims thru Automated Teller Machine for salaries,
allowances and other forms of compensation without Payroll
Registers and Letter to the Bank to credit employees’ account
of their claims
0.12 Payments of a legal consultant totaling without the written
authority and acquiescence from the Office of the Solicitor
General, and concurrence from COA
2.94 Unqualified CSU employees on scholarship grant were paid
Mid-Year Bonus
20 CTU 0.53 Expenditures charged against the net proceeds of the
registration fees from N-CASE even without an approved
budget
0.02 Expenditures for meals and snacks incurred by the Office of the
Vice President for Research and Development during the
Development of PPEs are not in conformity with the adoption
of austerity measures
0.06 Variance of 0.66 percent below the reported 100 percent work
accomplishment of the Project, Construction of 2-Storey, 4
Classroom Building at CTU Bantayan Island, Cebu.
21 DMMMSU 10.21 Overpayment of Salary and YEB (Year-End Bonus)
differentials to DMMMSU MLUC, SLUC and OUS faculty

342
 Amount
No. Agency Observation
(Million ₱)
members, who were promoted through the implementation of
National Budget Circular No. 461 effective July 1, 2019 whose
actual assumption to duties were dated December 23, 2019
0.22 Payment of Salary and YEB differentials of three retired
personnel with issued appointments prior to the approval of the
Notice of Organization, Staffing and Compensation Action
effecting reclassification of their positions
1.61 Salary and YEB differentials paid to DMMMSU SLUC faculty
members whose ranks were reclassified under the NBC No. 461
– Seventh Evaluation
22 DOSCST 0.04 Erroneous computation of the year-end bonus and cash gift of
the five newly-hired employees in CY 2020
23 ESSU 0.05 Deficiencies in the grant of compensation-related Magna Carta
benefits to Public Health Workers
24 ISAT U 0.51 Grant of honoraria to Officers and Employees involved in the
implementation of Tertiary Education Subsidy for Filipino
Students program, contrary to Unified Student Financial
Assistance System for Tertiary Education Memorandum
Circular No. 2018-0004 and COA Circular 94-013
25 ISCOF 0.02 Hazard Pay of the College Dentist and Nurse not in accordance
with DBM-DOH Joint Circular No. 1 s. 2016 dated July 15,
2016
26 ISPSC 0.20 Per diems paid to the members of a Search Committee,
Secretariat, and the BOT for meetings and activities conducted
beyond the scope and limitations
0.18 Two designees to the positions of VPAF and VPAA lacked the
necessary qualifications for the positions
27 ISU 452.04 Falsified Inspection and Acceptance Report
28 JRMSU System 0.7 Mobile expenses incurred without guidelines or established
limits or controls
29 LSPU 6.28 DVs paid without the signatures of the duly authorized officials
30 MinSCAT 24.53 The contract costs of six projects higher than the COA cost
estimates
31 MMSU 2.68 Payment of Mid-Year Bonus to Scholarship grantees for CYs
2018, 2019 and 2020 not in accordance with Items 4.2 and 4.3
of DBM Budget Circular No. 2019-4
32 MSC 1.59 Irregular payment of Honoraria
0.16 Payment of honoraria to College Board of Trustees and BOT
Finance Committee is contrary to Section 3 (c) of RA 8292 and
DBM Budget Circular No. 2003-6 dated September 29, 2003.
1.95 Payment of salary differential to two designated College Vice-
Presidents contrary to the 2017 Omnibus Rules on
Appointments and Other Human Resource Actions (Revised
July 2018) by the Civil Service Commission.
33 MSU 10.42 Management is very lax in enforcing agreement to render return
service by a number of faculty members granted with
Fellowship Awards
1.12 MSU-Main Campus continuously paid honoraria to its officials
and employees designated as chairpersons or members of
various special committees for purposes in line with the
exercise of their mandated functions
34 NORSU 1.43 Monthly honoraria paid to the OSG charged to the STF
0.09 Travelling allowances which were not in accordance with
University Memorandum No. 15, s. 2019 and also contrary to
Administrative Order No. 6 dated September 19, 2017.
35 OMSC 0.37 Honoraria paid for BOT-related meetings
0.11 Payment of Proportional Vacation Pay to regular teaching
personnel for the Academic Year 2019-2020 not in accordance
with various rules and regulations, due to the decision of the
Human Resource Management Office to adopt the old
guidelines on the grant of PVP
0.22 The Office of the Vice-President for Academic Affairs and the
Accounting Office committed errors in the (a) computation of

343
 Amount
No. Agency Observation
(Million ₱)
Teaching Overload hours to be paid for; and (b) TO units as
basis for the computation of honoraria for AY 2019-2020
36 PSU 1.67 Honoraria to Bids and Awards Committee members, BAC
Secretariat and Technical Working Group not in accordance
with various laws, rules and regulations
0.4 Payment of compensation improper as the required
performance and output on research were not rendered
37 QSU 1.34 Fabricated Canvass/Request for Quotations
38 SDSSU 0.51 Inefficient and uneconomic usage of government funds in the
purchase of airline tickets
39 SKSU 0.71 Hazard Pay for employees despite non-exposure to specific
health hazard and/or without proof of exposure thereat for at
least fifty percent (50%) of their working hours
0.75 Inaccuracies in the computation of the honoraria given to Bids
and Awards Committee members, secretariat and Technical
Working Group
40 TUP 0.3 Payment of Personnel Assistance and Welfare Fund, contrary
to Section 4(d) of RA No. 8292
41 USeP 0.45 CY 2018 Performance Based Bonus paid to employees whose
cash advances were not liquidated
42 ZCSPC 0.03 Payment of Overtime Services of the Administrative Aide
III/Driver I during the period of Community Quarantine
16.04 The prescribed allocation percentages on the utilization of
tuition fees per CHED Memorandum Order No. 20, series of
2011 were not adhered to
Subtotal - SUCs 1,661.86
Total 78,430.16
Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendation
All agencies a) Refund the amounts and discontinue the payments of transactions determined
to be illegal, irregular, unnecessary, excessive, extravagant and/or
unconscionable;

b) Require the immediate liquidation of cash advances within the prescribed

period;

c) Ensure that all disbursements are supported with complete documentation

approved and signed by the proper authorities and not to process claims with
lacking documents;

d) Ensure that all reports and documents are accomplished appropriately with
complete details such as the Monthly Report of Official Travels, Monthly
Fuel Consumption Report, Daily Gas Issued Record, trip tickets, Purchase
Orders indicating the date of receipt of the supplier, Requisition and Issue
Vouchers, Monthly Summary of Requisition and Issue Voucher;

e) Refrain from using income for unauthorized or irregular expenditures;

f) Ensure that funds are used only for the purpose for which it was established
and/or received and in accordance with the Work and Financial Plan;

g) Ensure that only valid expenditures in the current year be obligated/paid out
of the current year’s allotment/approved budget and that valid claims of prior
years be submitted before the end of the said year so it can be obligated within
the period within which the expenses were incurred;

344
Agency Recommendation
h) Recognize as liability/payable accounts only those transactions which have
valid obligations and have actual delivery of goods and services;

i) Stop the granting of Mid-Year and Year-End Bonus and Cash gift to
employees in advance and strictly follow the rules and regulations based on
DBM issuances;

j) Strictly comply with all laws, rules and regulation on disbursement of

government funds;

k) Establish clear-cut guidelines on the allowed communication expenses; and

l) Exercise prudence in spending government funds to ensure that government

resources are utilized wisely and avoid the incurrence of unnecessary and
extravagant expenditures
BFP Formulate specific guidelines in the registration of motor vehicles by the NHQ
and ROs consistent with existing rules and regulations and require the Motor
Vehicle Section of ROs to request status/update on fire trucks owned and/or
donated by LGUs and other government agencies. If not yet registered, request
for records and documents to facilitate initial registration of motor vehicle.
BLGF a) Stop the grant of CTO on travel status;

b) Deduct the CTOs availed by the BLGF Regional Office XI personnel from
their accumulated leave credits, and;

c) Submit to the Audit Team the certified leave cards of said personnel
reflecting the adjustments/deduction from their accumulated leave credits.
BTr-NG Review and strictly implement the terms of all future contracts and agreements
with regard to the issuance of T-Bonds.
CCC Require the concerned consultants to submit the pending required scope of work
as stated in the contract to the Accounting Office.
DOLE - Submit certification that the beneficiaries were neither included nor covered by
BWSC the DOLE CAMP, DOLE TUPAD #BKBK, DSWD-led SAP and other
financial/cash assistance provided by the National or LGUs to demonstrate that
certain requirement was met.
DOST Direct the SETUP implementers to establish more clear-cut and defined
documentary requirements for strict compliance or submission of qualified
cooperators prior to the grant of assistance.
DOTr Obtain post-facto approval of the service contracts entered into by the Regional
Office with the JO employees from the Office of the Undersecretary of
Administrative Service or equivalent office, and also acquire the required
authority for the contracts which have yet to be executed.
DSWD a) Conduct investigation against the SDO and file appropriate charges, if
warranted.

b) Assign/ hire additional personnel to encode all the AICS transactions in CY

2020 and thereafter; and

c) Recommend to the DSWD Central Office to revisit the design of the CrIMS
to simplify the reporting and monitoring process

d) Expedite the fieldworkers in observing proper and detailed conduct of field

validation as to the qualifications of the target beneficiaries and undertake
cross-matching of data with other government agencies involved in the
livelihood recovery activities such as DA, DTI, DOLE, CDA, etc.,
henceforth; and

345
 Agency Recommendation
e) Convene with the SLP-RPMO team including those fieldworkers assigned to
implement LAG, and conduct orientation on the implementation of the LAG
project components vis-à-vis approved guidelines.

f) Require the SLP Regional Project Management Officers to address the gaps
of insufficient manpower in the field and augment the monitoring staff of the
SLP FO 9 by directing other staff of the other DSWD projects such as the
Pantawid to help intensify the monitoring and evaluation of LAG.

g) Direct the SLP RPC to submit justification on the noted 44 beneficiaries with
unspent balance or not fully utilized grants.

h) Grant only cash advances to the SDOs for SFP equal to the number of
beneficiaries in every LGU to prevent excess cash advances. In case the
actual number of beneficiaries, during a particular cycle, is less than the cash
advance, the SDO is advised to immediately return in full the excess amount
of cash advance.

i) Maintain a data base of eligible beneficiaries of the program submitted by

the CDWs to prevent incurrence of double expenditure and to further benefit
other qualified children who were regrettably excluded in the implementation
of the program due to budget restriction.

j) Direct the SLP RPC to submit justification on the 56 identified ineligible

beneficiaries with the necessary supporting documents to prove that they are
indeed eligible. Specifically, require the 29 LAG Beneficiaries / their
household members who were DOLE-TUPAD recipients to submit proof of
refund from DOLE that the subsidies received from the said agency were
refunded; otherwise, require the said beneficiary to refund the same amount
received from DOLE; and

k) Require the LAG Beneficiaries who were private employees and have no
livelihoods to submit certification from their respective employers that (1)
they are either separated or suspended from work during community
quarantine and that (2) that they did not receive any cash subsidy under the
DOLE amelioration program for private employee, subject for verification.
ECCDC a) Evaluate the organizational structure, staffing pattern and manpower
requirements of each Offices/Unit of the Agency to determine if the
consultancy services needed are beyond the optimum in-house capability of
the Agency to undertake, and to ensure that the need for the procurement of
consulting services is thoroughly reviewed to minimize procurement of
consultancy services that can be performed by the incumbent personnel or
staff;

b) Devise succession and contingency plans in cases of personnel changes due

to retirements and resignations, which includes proper turn-over, adequate
training on the incumbents and hiring of a qualified applicant for the long-
term replacement of critical positions in the Agency; and

c) Provide the necessary supporting documents of the consultancy contracts of

five ECCD Council Consultants such as the TOR and all other required
information and supporting papers to justify their hiring to avoid suspension
or disallowance on related disbursements.
GHQ, AFP Direct the OG4 and 7th AFP FASU to make written representations with the
OTQMG for the optimal utilization of the ₱8,380,581.99 RMC fund earned from
2015 to 2019, or for the conversion of rebates into future deliveries of FOL
products to PSG; and initiate steps to recover from Petron Corporation the
₱1,910,406.30 that was not withheld from the payment and remit the same to the
BTr.

346
Agency Recommendation
MTRCB a) Revisit its guidelines on reimbursement of expenses for monitoring and
inspection activities of its deputies, and revisions if needed to provide
exceptions for the guidance of all concerned. As it is, if warranted, for the
concerned Board Members to refund the amount received for the
corresponding unsuitably supported reimbursement/s.

b) Formulate guidelines on the selection of the movies and movie-houses for

inspection and monitoring of its deputies to maximize resources.
NCMF a) Submit a certification under oath from the service provided, MAAD on the
authenticity of the ORs issued as proof of payment received from the NCMF.

b) Submit the guest list from Al Hidaya Towers owned by the Maad Al-Masiyah
Company, as it is the hotel where the Filipino pilgrims stayed during Hajj
2019 as stated in the housing contract signed by the Executive
Director/President of that company. This is to validate the total actual number
of Filipino pilgrims who stayed in that hotel.
NM a) Implement measures to facilitate prompt payment of electric bills and other
expenses incurred in the Regional Museums and Satellite Offices to avoid
the incurrence of penalties and surcharges; and

b) Determine the officials liable for the incurrence of the surcharges and make
them personally liable thereof.
PCC Revisit the existing MOA and prepare amendments thereto so that the
responsibilities and obligations of both parties pertaining to the assets purchased
and turned over to the Cooperative will be clearly specified therein.
PCG Strengthen monitoring and act with prudence on similar contracts in the future
vis-à-vis the LC and the immediate cancellation thereof in case of
termination/cancellation of LCs; and conduct a proper, meticulous, judicious,
prudence and economical procurement activity to prevent incurrence of
unnecessary expenditures for good governance on procurement activities.
PCGG Strictly implement the provisions in the COS as regards submission of ARs and
PTRs and demand the refund of overpayment of professional fees amounting to
₱45,600.00 from the concerned lawyers.
PNRI a) Include in the terms and conditions of the contract with foreign suppliers the
stipulation that forbid advance payment or paying in full prior to delivery of
goods and performance of services in adherence to Section 88 of PD 1445
and Annex D and E of IRR of RA 9184;

b) Consider to avoid/refrain from procuring goods/services in direct full

payment prior to delivery/completion of goods/services in compliance with
Section 88 of PD 144 and Annex D and E of IRR of RA 9184;

c) Promptly update the Accounting Section of the deliveries from foreign

suppliers and reconcile the ₱8,219,184.20; and

d) Submit explanation to justify the mode of paying foreign suppliers in full

despite prohibition on advance/full payment even if there is absence of
deliveries
PSA a) Require Unisys to refund the amount of ₱2.115 million, representing the
unpaid obligation of Unisys in CY 2019 and 2020 operational expenses
accommodated by PSA; and

b) Stop the practice of accommodating the operating expenses of Unisys,

instead advise the latter to pay directly their monthly office space rental to
the LGU of Tuguegarao City and electricity bill to the CAGELCO.
PSC a) Expedite the implementation of the recommendations in the investigation
report of the Fact-Finding Committee, particularly the recovery of the
illegally disbursed fund through padded allowances, and the imposition of

347
Agency Recommendation
administrative penalties against those persons who failed to exercise due
diligence.

b) Require the:

1) Head, National Sports Association Affairs Office to submit the related

Board Resolutions to support the allowances given to the athletes and
coaches despite being dropped or excluded in the Master List, and the
validated list of bank accounts of all athletes and coaches.

2) Acting Chief Accountant to recover the excessive allowances (i.e.,

absences that were not deducted, double/overpayment) from the athletes and
coaches by issuing demand letter and/or implementing allowance deduction.

3) Head, Assistance and Coordination Division to submit the supporting

attendance sheet of the disbursed P97,000.00.
PSHS Consider the disposal of the outmoded and fully depreciated vehicle and the
procurement of a new vehicle to replace the disposed unit
TESDA Explain why the cost incurred for the activities shall not be disallowed in audit
and require all the individual participants to submit narrative report as to the
importance/necessity of their presence in the said international meetings and
their actual participation/involvement for the attainment of the desired outputs.
BISCAST Submit the following documents to the Audit Team for verification, otherwise,
refund the excess claims:

a) Memorandum/Certificate issued by the PASUC that the College President

has been accredited as Professor VI by a committee of experts constituted by
PASUC; and

b) Confirmation by the Board of Trustees of the salary adjustment to Salary

Grade 29.
CBSUA a) Require the BAC to submit their computation or basis on how they arrived
at the contract amount of ₱6.33 million and take appropriate action on the
noted overstatement of contract amount based on subject accomplishment
made by the previous contractor; and

b) Require the BAC to coordinate closely with the PPD Division with respect
to the computation of contractor’s accomplishment to avoid possible loss of
government funds in case of take-over contracts.
ISPSC a) Instruct its HRM Officer to ensure that the dates of acknowledgment of
appointment, assumption to duties and oaths of office by appointees were the
actual date such were undertaken, consistent with their DTRs, and to rectify
and reconcile said documents with the date of actual return from study leave.
Henceforth, strictly adhere with Sections 17 and 23, Rule VI of the 2017
ORAOHRA (Revised 2018);

b) Designate employees who possess the necessary qualifications in conformity

with Section 13(c) (2) of the 2017 OHRAORA (Revised 2018), and

c) Instruct the Head of Accounting Office to suspend payments of their RATA

until final resolution of their Petitions for Review filed with the Commission
Proper of COA.
ISU Require the Inspector and Supply Officers to (i) submit written explanations why
they affixed their signatures in the IAR despite non-delivery of the items; and
(ii) refrain from affixing their signatures in the IAR without verifying the actual
delivery of the goods procured and their conformity with the specifications.
JRMSU Institute stricter policies and guidelines through a board resolution by setting –
System up maximum mobile expenses allowed per month with due consideration of the
actual needs of the officers or employees concern.

348
 Agency Recommendation
MSU-IIT a) Enforce strictly the terms and conditions set forth under the Fellowship
Agreement Contract and that payment of the two reneging fellows on
installment basis should not have been allowed as it was a breach of the
Contract which may become a precedence whereby the grantees would not
be forced or obliged to return service to the institute after the study grant;

b) File administrative and legal charges against the reneging fellows who were
granted with the Study Grants in the Academic Year period since 1992 to
present immediately, if warranted;

c) Execute the terms and conditions stipulated in the Surety Agreement;

d) Require the Academic Panel to strictly screen the applicants or nominees for
the APDP or FDP to avoid the same circumstances and to protect the interest
of the university; and

e) Require the Office of the Vice Chancellor for Academic Affairs to file
properly and completely all supporting documents in relation to the Grantees’
Fellowship Awards including the Office who facilitated and administered the
implementation of Faculty Development Program/ Academic Personnel
Development Program for monitoring purposes.
SDSSU a) Direct the personnel in-charged to develop or strengthen measures over the
planning and budgeting so that airline tickets are acquired days or weeks
before the actual activity to obtain the most advantageous price for the
government and minimize travel cost;

b) Provide complete information in the Travel Orders such as date and control
number and any other relevant information; and

c) Consider purchasing airfares for official travels directly from the airline
companies instead of engaging the services of travel agencies to save on
travel cost and generate savings for the government.

d) Advise the concerned Project Coordinators to improve the existing

guidelines on the selection process of program recipients so as to preclude
suspicion of favoritism, bias and irregularities in the process
ZCSPC a) Formulate and adopt internal rules and procedures on the rendition of
overtime services of their respective personnel in accordance with CSC-
DBM JC No. 1, s. 2015 dated November 25, 2015

b) Apply the remuneration for overtime services through CTO, except in cases
when it would adversely affect the operations of the agency.

10. In 14 agencies and 7 SUCs, there were unrealized, unrecognized, foregone and
uncollected revenues amounting to ₱1.58 billion and ₱117.28 million,
respectively, due to, among others, inaction or failure to intensify collection,
absence/non-renewal of contract of some lessees, slow disposition of seized
cargoes, non-compliance with various Customs Modernization and Tariff Act
Regulations, non-remittance of collections, absence of policy/guidelines for the
operations of some revenue generating projects and non-issuance of Official
Receipts or use of customized receipts were collections were not accounted as
government funds.

349
 Nature of
Amount
No. Agency Revenue/ Observation
(Million ₱)
Income
NGAs
1 BI Administrative 1.07 Despite issuance of DOJ Department
Fines Order Circular No. 026 dated June 1, 2016
revoking April 12, 1999 BI Memorandum
Circular, administrative fines from 2017
to 2020 were not collected
2 BOC Duties and taxes 273.67 Unpaid duties and taxes amounting to
₱210.130 million arising from Post
Modification of Single Administrative
Document for CYs 2018 to 2020, with
computed legal interest and surcharges
amounting to ₱63.544 million, remained
uncollected as at December 31, 2020,
which is not in accordance with Customs
Memorandum Order No. 53-2010 dated
December 8, 2010, thus depriving the
government the much-needed funds to
finance its programs and projects.
Bonds 7.19 Outstanding due and demandable bonds
as at December 31, 2020 in view of the
inability of the concerned importers to
liquidate or cancel the bonds and the BOC
Ports to take necessary actions on these
accounts, contrary to Customs
Memorandum Order No. 8-2007, thus
depriving the government of additional
revenue to finance government operations
and projects.
Undisposed Undetermined A total of 22,553 overstaying and
overstaying and amount abandoned containers/cargoes of various
abandoned articles and 189 containers of perishable
containers/ goods remained undisposed in various
cargoes Ports for 2 months to 20 years as at
December 31, 2020, as required under
Section 1144 of the CMTA, BOC
Unnumbered Memorandum dated August
13, 2004 and Custom Memorandum
Order No. 10-2007, thus depriving the
Bureau of additional income representing
auction sales.
Collection - The BOC was not able to meet its Original
Targets Collection Target set by the DBCC of
₱731.255 billion for CY 2020 but
exceeded the Revised Collection Target
of ₱506.150 billion by Php34.494 billion
or 6.81 per cent. The reduction affected
the overall collection goal of the Bureau
and contributing lesser funds to the
National Treasury for the implementation
of programed expenditures for the year.
Various income 117.07 Revenues amounting to ₱117.069 million
were not realized due to non-compliance
with various Customs Modernization and
Tariff Act Regulations, thus causing
undue disadvantage to the government in
terms of foregone revenues.

350
 Nature of
Amount
No. Agency Revenue/ Observation
(Million ₱)
Income
3 BTr-NG NEFCA funds 0.02 Non-compliance with the letter
instructions of the NCCA on the
remittance of the NEFCA funds and
interest earned thereon and of the National
Endowment for NECA funds from CYs
2016-2020 to the BSP-TOP-TSA account
did not earn additional interest of 3.45 per
cent reducing the interest income of the
funds.
4 BuCor Firing Range Undetermined In BuCor-Main, the reliability of Target
Operation amount Range Fees remitted to the Chief Cashier
amounting to ₱0.34 million for CYs 2019
and 2020 cannot be established due to
absence of policy/guidelines for the
operation of the Firing Range and non-
issuance of official receipt by the
Collecting Officer assigned at the Firing
Range which indicate weakness of
internal control that may result in possible
loss of revenue to the Bureau.
Joint Venture 1.34 The approval by the Superintendent of
Agreement Iwahig Prison and Penal Farm on the
adjustment of production share of the
BuCor as stipulated in the Joint Venture
Agreement cannot be considered binding
and contrary to Section 23 of the JVA
which resulted in the reduction of
production share for the period April to
December 2020.
5 CDA Service/ Undetermined The Pampanga EO was deprived of the
Business Income amount service and business income that could
have been collected from the issuance of
registration, clearance, certification fees,
fines and penalties and other dues and
contributions from cooperative members
due to the non-compliance of 1,090
cooperatives, or 34.97 percent of the total
registered cooperatives in Region III, with
the provisions of CDA Office Order 2017-
01, as amended, which also affected the
legality of its operations.
6 COA Audit Fees from 1.85 Delayed/non-preparation of billing
Water Districts statements for the cost of audit services
rendered to 34 Water Districts deprived
the Commission of the income necessary
for its operations, contrary to Section 6.1
and 6.2 of COA Memorandum No. 2009-
007 dated March 6, 2007; and Section 4.3
of COA Memorandum No. 2017-014
dated July 3, 2017
7 DENR Income from 35.12 Assessed revenues from the
Foreshore Lease use/occupation of foreshore lands were
not realized due to lack of collection
enforcement and lapses in monitoring the
collection efforts by the responsible
officials, delayed appraisal of foreshore
lease areas, and the absence of approved

351
 Nature of
Amount
No. Agency Revenue/ Observation
(Million ₱)
Income
foreshore lease agreement, thus, deprived
the government of the opportunity to
collect such income, which can be used to
fund the government’s priority programs
and projects
8 DOE Other income. 1,109.88 The non-collection of the training
Training and commitments and development assistance
Developmental earned from the energy service contracts
assistance from as authorized receipts/ revenues under RA
service No. 7638 amounting to ₱907,855,222.15
contractors and ₱202,021,442.74, respectively, due to
lack of clear policy on the process and
enforcement of collection thereof by the
responsible divisions, deprived the DOE
and the government as a whole, of the
technical and financial support to
augment resources for the energy
development programs/projects.
9 DOT Registration Undetermined Issuance of customized receipts for
Fees amount collections amounting to ₱0.29 million
instead of the government official receipt/
Accountable Form No. 51-C casted
doubts on the regularity of the
transactions as the collections were not
accounted as government funds contrary
to Section 63 of PD No. 1445.
10 DOTr- Law Undetermined The LTO Disposal Committee of SHO,
LTO Enforcement amount Regional Office Nos. I, IV-A and X were
Services not able to dispose 2,595 units of
impounded motor vehicles stored in their
respective compound/premises which are
presumed to have been unreasonably and
actually abandoned by their owners for
failure to pay the necessary and required
fines and penalties. The non-disposal of
these motor vehicles despite the lapse of
the six-month period from the date of its
apprehension has prevented the agency
from earning more revenues and from
clearing the premises to provide
additional space for vehicle storage.
11 GPPB Seminar/training Undetermined Suspension of collection of
fees amount seminar/training fees and non-posting of
seminar/training fees in the agency’s
website had not enabled the recovery of
the actual training costs, which is not in
accordance with paragraph 3, Section 4 of
the General Provisions of the GAA for
Fiscal Year 2020, thereby reducing the
National Government’s revenues, and had
not provided interested participants with
information on the seminar/training fees
for their planning considerations,
respectively.

12 LRA Registration 1.37 The Government lost approximately

Fees ₱1,369,092.17 for the period January to

352
 Nature of
Amount
No. Agency Revenue/ Observation
(Million ₱)
Income
September 2020 due to non-
implementation of certain provisions in
the Memoranda of Agreement between
the LRA and the contracting parties on the
operation of LRA Extension Office.
Registration 5.91 LRA Fees for the period covering January
Fees 2020 to October 2020 remained
uncollected
13 MMDA Fines and 18.95 Non/delayed encoding of 4,869 issued
Penalties - Ordinance Violation Receipt tickets in the
Business Income Metropolitan Road Rules Enforcement
System resulting in the risk of
underassessment of fines and penalties;
(b) lack of the calibrated speed guns since
CY 2018 to enforce traffic regulation on
the speed limit, thus, resulting in the loss
of revenues; and (c) significantly low
percentage of traffic violators summoned
(number of notices of violation issued
over the total number of violations
captured).
14 PSHS Monetary value 4.94 Outstanding receivables from scholars
IRC and of the who did not enroll in Science and
WVC scholarship Technology courses in college remained
award of uncollected for more than three years and
defaulting five years for WVC and IRC respectively
scholars
Subtotal – NGAs 1,578.38
SUCs
1 BSU Income 100.21 The target revenue of the Income
Generating Generating Projects of the University was
Projects not met, due to non-action of some factors
which are within the control of
management; thus, the objectives and goal
of income generation was not totally
attained.
2 CCSPC Various income Undetermined Income opportunities have not been
amount optimized by the college thus depriving
the school of the additional funds that
could be generated from its operation
3 CLSU Sales of 11.35 Control measures to safeguard the receipt
agricultural and custody of cash collections from sales
produce of palay and mangoes by the Agricultural
Science and Technology School were
inadequate due to (a) non-issuance of
official receipts upon sale; (b) absence of
fidelity bond of the School Treasurer; (c)
non-remittance of cash collections to the
University Cashier; (d) failure to deposit
collections in an Authorized Government
Depository Bank; and (e) absence of
documentation for the harvest and palay
grains sold during the dry season of
calendar year 2019, thus, resulting in the
non-recognition of reported revenues in
the books of accounts amounting to

353
 Nature of
Amount
No. Agency Revenue/ Observation
(Million ₱)
Income
₱5,800,327.00, and possible under-
reported sales estimated at ₱5,549,665.07.
4 CMU Returned and/or 4.30 Returned and/or denied PhilHealth claims
denied amounting to ₱651,739 and billings not
PhilHealth recognized as income amounting to ₱4.3
claims Million, both for CY 2020 were deemed
to be disadvantageous to the agency,
inconsistent with the principles and
guidelines set forth in PD 1445 – ‘State
Auditing Code of the Philippines’, RA
8292 – ‘Higher Education Modernization
Act of 1997’, and the Government
Accounting Manual, thus, depleting the
Hospital’s resources which could have
been used for beneficial purposes and
understating the Hospital Fees account as
of year-end.
5 DNSC Rental income 0.15 Accumulated house rentals were not
collected thru salary deductions from the
employees and recognized organization of
the State College contrary to the Board
Resolution No. 48, s. 2004, hence,
depriving the school of the funds to cover
for the cost of maintenance of the subject
facilities.
0.13 The College's Management did not enter
into contracts and/or renew the
Memoranda of Agreement between them
and the new/old actual occupants of the
housing facilities as required under the
Board Resolution No. 48 s.2004, hence
primarily affecting the collection
efficiency for the internally generated
funds which is the main source for the
maintenance of the subject facilities.
6 ISPSC Lease Contracts 0.11 Terms and Conditions of Lease Contracts
entered into by and between the College
and 13 employee-occupants of its cottages
were not strictly enforced by both parties,
resulting in the accumulation of unpaid
rental fees and non-
protection/preservation of the interests
and welfare of the College.
7 UNP School Fees 1.03 Tuition and Medical/Dental Fees
collected from Grades 1 to 12 students for
the 2nd term, AY 2019-2020 and 1st term,
AY 2020-2021 were under-assessed,
inconsistent with Board of Regents
Resolution Nos. 38, s. 2017 and 33, s.
2014, respectively, resulting in the
understatement of Income.
Subtotal - SUCs 117.28
Total 1,695.66

354
Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendations
BI Require the Accounting Section to exert diligent efforts to collect administrative fines
from the airline companies and apply proper or legal remedies, if warranted, to settle
their accountabilities.
BOC a) District Collectors to ensure that dedicated personnel at the Port monitors all
unpaid assessment/re-assessments accounts to enable the Ports to collect all unpaid
accounts;

b) Liquidation and Billing Division to designate personnel to issue demand letters for
all entries with PMS for the collection of unpaid duties and taxes plus applicable
interests and surcharges to the concerned importers;

c) Management Information System and Technology Group to enhance the system to

include a facility that would monitor the Import Entry Declaration status to ensure
that all unpaid taxes and duties are captured by the Collection Districts; and

d) Consider establishing a regulation on the collection of unpaid taxes by the Ports

before release of succeeding importations.

e) Facilitate the forfeiture of bonds of the Surety Companies and take necessary
actions to collect the amounts corresponding to the duties and taxes guaranteed by
the securities; and, (b)strictly follow the procedures in the forfeiture of bonds as
provided in CMO No. 8-2007 dated April 10, 2007

f) Conduct regular review of disposal proceedings and ensure that these are strictly
followed and monitored to be able to meet defined timelines;

g) Conduct immediate inspection of all overstaying containers to determine the

existence, condition, and status of the goods inside these containers;

h) Prioritize disposal of perishable goods to maximize revenue collection;

i) Continue to develop and adopt strategies that will improve the collection
performance of every port in order to ensure correct allocation and achieve the
targeted collection;

j) Exert more effort to analyze and examine Management’s systems and procedures
on assessment, examination and collection, geared towards strengthening these
processes and improving the Collection District’s performance;

k) Direct the concerned Ports and offices to strictly comply with the pertinent
provisions of the CMTA and guidelines issued for its implementation, specifically
on assessment of entries, and auction/disposal of goods forfeited or seized
BTr- a) Instruct the Chief, RIDD to transfer the P19,538.20 from the LBP-BTr-NCCA
NG Trust Account to the BSP-TOP-TSA in compliance with NCCA’s letters to
maximize the interest earned of the fund; and

b) Monitor regularly the balance of the LBP-BTr-NCCA Trust Account and transfer
any amount in excess of the required minimum balance to the BSP-TOP-TSA
account to earn more interest and to manage the NEFCA and NECA escrow funds
effectively.
BuCor a) Develop a system/manual incorporating the operating procedures, policies and
guidelines for the Firing Range Operation;

355
Agency Recommendations
b) Require the current Collecting Officer at the Firing Range to remit collected Target
Range Fees daily to the Cashier; issue Official Receipt for fees collected; and apply
for fidelity bond with the Bureau of the Treasury; and

c) Require the Chief, Firing Range to submit to the Audit Team Monthly Target
Range remittance Report and all the necessary supporting documents.

d) Require the Superintendent of the IPPF secure the approval of the Director
General, BuCor, on the request of Puerto Princesa City Water District, otherwise,
demand the payment of unpaid production share of ₱1,338,528.50; and

e) Instruct the concerned IPPF personnel to meticulously review the Monthly

Production Report to ensure that the minimum daily production share of ₱8,000.00
was collected, until Section 3 of the Joint Venture Agreement is duly amended.
CDA a) Adopt measures to assist the cooperatives’ staff and officials to address the
constraints brought about by the online report submission;

b) Continue preparing the report on the monitoring, inspection of the primary and
secondary cooperative status and copy furnished the Audit Team, to enforce the
Agency’s mandate, promote the viability and growth of cooperatives as
instruments of equity, social justice and sustainable economic development and to
generate additional business and service income; and

c) Monitor closely and properly the status of the non-compliant, considering the
appropriate sanctions to be taken, if warranted, in order to protect the interest of
the members and stakeholders.
COA Direct the concerned Audit Team Leaders/Supervising Auditors to cause the prompt
submission and computation/assessment of audit fees and send billing statement for the
cost of audit services rendered to Water Districts for immediate recognition of income.
DENR a) Direct the Regional Executive Directors and PNR Officers of the six PENROs to
sustain their efforts/strategies to optimize collections from foreshore lease and
occupation fees such as sending bills and demand letters monthly/regularly; and

b) Develop effective strategies/mechanism/ processes for an effective monitoring to

ensure enforcement of DENR AO 2004-24 dated August 24, 2004 and other
existing laws and guidelines on the use of foreshore lands. PENROs Capiz and
Misamis Occidental to facilitate the approval of the Foreshore Lease Agreement;
and PENRO Davao Oriental and Davao de Oro to intensify the conduct of
inventory/survey of foreshore lands to facilitate processing of pending FLAs and
identify unauthorized occupants/settlers.
DOE a) Conduct extensive review of the internal process in the preparation of billing
statements and demand letters for the collection of TC and DA arising from the
service contracts of DOE;

b) Immediately resolve as to who shall be the responsible office to submit the Status
Report on DA earned from CE and furnish the Audit Team with a copy of their
report for CY 2020;

c) Revisit DO No. 2006-02-002 as to the existence and function of the Training

Commitment Management Committee and amend, if necessary, to conform with
the current scenario of DOE;

d) Submit the list of non-collected TC and DA on terminated contracts, and the copies
of the Semestral Status Reports on Training Commitment mentioned in the DO
No. 2006-02-002;

e) Send periodic billing statements or letters requesting the collection from Service
Contractors of their outstanding TC and DA to have substantial improvement in
their collection thereof; and

356
Agency Recommendations

f) Copy furnish the Audit Team for any collection cases filed against the erring
Service Contractors.
DOT a) Use the Government Official Receipt/Accountable Form No. 51-C for all
collections received by collecting officers to be deposited intact to the National
Treasury; and

b) Require erring employees to pay the total amount of registration fees of the 361
participants amounting to P288,800.00 less any amount already deposited.
DOTr- a) Fast track the disposal of the IMVs in accordance with the provisions of PD No.
LTO 1729 to prevent further deterioration and loss of economic value, free its premises
with adequate space needed for future storage, generate additional income and
prevent incurrence of additional expenditures; and

b) Instruct the personnel concerned of LTO-SHO to disseminate the approved

uniform guidelines on the disposal of unclaimed Impounded MVs/MCs to the
concerned regional offices.
GPPB a) Resume the collection of seminar/training fees from participants considering all
costs incurred for the conduct of the seminars/trainings; and

b) Post in the agency’s website the offered seminars/trainings and the corresponding
fee per seminar/training for the information of the public.
LRA a) Revisit paragraphs 4.c, d, and e of the MOAs and implement the annual price
adjustment review;

b) Assign an Office to handle and monitor provisions of MOAs that require review
and action by the LRA;

c) Compute necessary adjustments on the operating and maintenance fees as well as

annual subscription fees based on formula stated in MOAs and implement the
same; and

d) Revisit paragraph 5 of the MOA and include the: (i) obligation of LRA within
which to deliver the SOA to contracting party/entity; (ii)provision on specific
sanctions/penalty in case of non or late payment of fees by contracting
parties/entities; and (iii) provision on temporary stoppage of services until
settlement of the outstanding accounts.
MMDA a) Direct the Redemption Unit to encode all the noted unencoded tickets and
thereafter, formulate a written policy to strengthen supervision and monitoring
over encoding of the OVR tickets to assess the penalties on a timely basis and
maximize the collection of revenues therein;

b) Speed up the procurement of the necessary calibrated speed guns of the OSEG to
address the non-enforcement of traffic regulation on the maximum speed limit,
thus henceforth generate revenue from fine imposed for these recurring over
speeding violations and to decrease the number of traffic accidents;

c) Devise an action plan to improve the number of summons/notices of violation

created from captured traffic violations by:

i. addressing the insufficiency of manpower in NCAP to avoid backlogs;

ii. ensuring that all captured violations are protected from the risk of corruption of
files;

iii. formulating a written policy that will direct the NCAP Office to ensure that all
captured traffic violations are reviewed and if warranted, a notice of violation is
prepared, within a reasonable period to avoid the captured violations from being
disregarded/voided due to lapse of time; and

357
Agency Recommendations

iv. monitoring the timely implementation of the project for Procurement and
Installation of CCTV cameras for MMDA No Contact Apprehension which will
improve the quality of videos of the captured traffic violations.
NHCP Require the Research, Publication Heraldry Division in coordination with the
information technology personnel, to have a publication section in the official website
of NHCP and its social media account, containing detailed information or visual catalog
of available publications of the Commission that will serve as a venue in disseminating
information on Philippine history pursuant to its mandate.
PSHS Continue the collection of receivables through persistent follow-ups with the
scholars/parents/guardians; and in case of failure of the concerned scholars and/or their
(IRC parents/guardians to settle the obligation, communicate with the Legal Counsel and
and discuss other legal remedies, which may be pursued to recover the monetary value of
WVC) the scholarship due to breach of agreement.
BSU Resolve the problems/factors that has been confronting the UBA such as, issues on
business processes and budgetary requirements, to improve its income generation
performance that will redound to the benefit of the University; and Fast track the
approval of the new/enhanced IGP Manual to fully guide management, UBA in
particular, in fulfilling its income generation goals.
CCSPC a) To take appropriate measures to ensure that available resources are optimized and
maximize resource generation from the income generating projects;

b) provide budget allocation for Income Generating Projects of the college in

accordance with CMO No. 20 series of 2011; and

c) formulate Manual of Operation for Income Generating Projects of the College as

a guide in the management and operation of IGPs.
CLSU a) Create a Task Force to conduct thorough investigation of the deficiencies initially
noted by the Audit Team in the audit of the harvest and sales of palay from wet
season 2017 to dry season 2019 where an estimated understatement in sales of
₱5,549,665.07 was discovered, as well as the reported sales of mango of
undetermined amount; and

b) cause the early submission of the results of such investigation to the Audit Team,
together with an explanation why such discrepancies occurred.
CMU a) Foremost, hospital management shall strictly adhere to the procedures and policies
required by PhilHealth especially in its current system in the submission of billings
for claims to be able to reduce the amount of denied/returned claims and more
importantly, to reduce its additional cost at the expense of the University Hospital;
and

b) Billing Unit of the University Hospital to furnish the Accounting Unit a copy of
the bills for recognition of Accounts Receivable [from PhilHealth] and Income
from Hospital Fees.
DNSC a) Require the Housing Committee to prepare the Memorandum of Agreement and
oblige all the actual occupants to enter into agreement with the authorized
representative of the College and have it notarized;

b) Include in the MOA all important provisions in the BOT Resolution No. 48
regarding collections of rentals to avoid accumulations thereof;

c) Require the College Accountant to deduct outright from the monthly payrolls of
the renters the unpaid rentals after the MOA has been signed and notarized by both
parties to avoid accumulation of said rentals; and

d) Require the Housing Committee and the Accountant to closely monitor the
payment of monthly rentals of those accredited/recognized association who are
still occupying the facilities to avoid accumulation of unpaid rents.

358
 Agency Recommendations
e) Require the Housing Committee to thoroughly instill in the minds of the new actual
occupants that the housing facilities are established as support for the faculty and
staff and that the meager rentals shall be collected as one of the main sources for
the maintenance of the said facilities. A Memorandum of Agreement shall be
executed by parties concerned before the occupants could use the facilities;

f) Closely monitor the renewal of the Memoranda of Agreement for the old occupants
to pave the way for efficient process of collections and the proper maintenance of
the facilities as embodied in the duly notarized MOA where the first and the second
parties’ responsibilities are enumerated; and

g) Require also the Housing Committee to recommend to Management and for

approval of the Board the provision of other vital features and measures necessary
for the maintenance of the housing facilities being the government assets.
ISPSC Demand immediate settlement of all unpaid rental fees due them, and cause the renewal
of Lease Contracts, otherwise, issue the necessary Notice to Vacate the property of the
College. Henceforth, ensure that the Terms and Conditions embodied in future lease
contracts are faithfully complied with and enforced by the College.
UNP Instruct the Head of Accounting Office to demand collection of under-assessed Tuition
and Medical/Dental Fees from concerned students, and set-up Accounts Receivable in
the books. Henceforth, strictly adhere to BOR Resolution Nos. 38, s. 2017 and 33, s.
2014.

COVID-19 Funds

11. Various deficiencies were noted in the disbursement/ utilization of COVID-19

funds such as unobligated/ unutilized/ unreleased funds, payments of hazard pay
which were non-compliant with applicable laws, rules and regulations;
violations of procurement laws; delayed release of funds to operating
units/regional offices and other implementing agencies; delayed distribution of
goods/items to beneficiaries; unsupported disbursements; over remittance of
financial subsidy; unliquidated fund transfers and cash advances, among others.

No. Agency Audit Observation

NGAs
1 21 NGAs Payment of COVID 19 Hazard Pay amounting to ₱87.71 million without authority to
report for work, or during the period of declared GCQ, inconsistencies in the DTR and
number of days claimed for Hazard Pay, not supported with DTRs or not in conformity
with DBM Budget Circular No. 2020-1 and other deficiencies in ACPC, BIR, BOC,
DA, DBM, DOLE, DOT, DOTr, DTI, EMB, MGB, MinDA, NAP, NFRDI, NMIS,
NM, OCD, PCGG, PIA, PSA and TESDA
2 ACPC Funds transferred to GFIs and NGFIs for the implementation of SURE COVID-19
program were deficient due to (a) lack of the identified supporting documents to
confirm compliance with Memorandum Order No. 22; and (b) difference of ₱68.869
million between the amount per books and results of confirmation and unconfirmed
fund transfers of ₱1,356.100 million.
Procurements amounting to ₱0.31 million were made through reimbursement instead
of direct payment to supplier thru check or ADA, thus, depriving the government of
income from withholding/collecting taxes from the payments made thereon amounting
to ₱0.0168 million.
Payments for special economic relief assistance due to pandemic amounting to ₱0.52
granted to officers and members of the secretariat and committees of the USM-CIBP,
charged against USM-CIBP funds lacks the legal basis or authority.
3 AFPGHQ The procurement of testing kits, medicine and equipment amounting to ₱11.63 million
were not supported with appropriate documentation, i.e., contract, NOA, NTP, and
BAC resolution recommending to the HOPE that the alternative mode of procurement
was to be adopted, contrary to Annex H of the IRR of RA 9184 and item 9.2 of COA
Circular No. 2012-001. Moreover, the Audit Team was not notified within 24 hours
after delivery, contrary with Item No. 6.9 of COA Cir. No. 2009-02.

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No. Agency Audit Observation
4 BFAR The preparation of project requirements and posting of the required information in the
Government Procurement Policy Board Online Portal for Emergency Procurement
under Republic Act No. 11469 or the Bayanihan Act were not observed by the Bureau
in the procurement of medical, agricultural and marine and other supplies amounting
to ₱117.753 million through negotiated procurement (emergency purchase) contrary
to the provisions of GPPB Circular No. 01-2020 dated 06 April 2020 and GPPB-
Technical Support Office Advisory 05-2020 dated 17 June 2020.
5 BFP The propriety of disbursements amounting to ₱605,824,714.08 made by BFP in
response to COVID 19 pandemic is doubtful due to: a) lacking supporting documents
and deficiencies noted in transactions amounting to ₱88,880,198.73; b) difference
between the cost of procured goods against the price ceiling set by DOH pursuant to
Department Memoranda Nos. 2020-0058-B and 2020-0131; and c) grant of Meal
Allowance to BFP personnel amounting to ₱41,001,099.31 inconsistent with existing
regulations.
6 CA Lack of implementing guidelines on the granting and proper use of the fund
earmarked for the payment of COVID-19 testing exposed the Court to risk of
errors and irregularities, which did not ensure the validity, completeness and
accuracy of the financial transactions reported; and likewise resulted in the
overstatement of expenses charged to the Other Maintenance and Operating
Expenses account
7 CHED Out of the total allotments of ₱3,300,000,000.00 received by CHED from the
Bayanihan to Recover as One Act, only ₱1,339,986,619.42 or 40.61% was obligated
during the year. Moreover, out of total funds of ₱71,375,000.00 for the implementation
of Bayanihan 2 for Higher Education Tulong Program in CHEDROs NCR and I,
₱26,273,722.31 was not utilized at year-end, hence deprived some qualified grantees
of their financial benefits which could have contributed for their educational needs.
Deficiencies in the implementation of the said program in CHEDRO XI were also
observed, such as: a) absence of proof of enrollment and some students were not
actually enrolled in the 1st semester of AY 2020-2021; b) incomplete supporting
document on payments to HEIs amounting to ₱5,245,462.41; and c) double payment
to beneficiaries in the total amount of ₱225,821.00.
Funds totaling ₱20,266,619.39 intended for the implementation of nine approved CEB
proposals for COVID-19 projects of five SUCs/HEIs under the Research and
Development and Extension Grants-in-Aid funded out of the HEDF were not released
due to the inadequate monitoring, and non-enforcement of the liquidation of previous
fund transfers, thereby defeating the objectives/purpose of the said projects to
supplement, expand, improve and intensify existing COVID-19 responses.
Deficiencies in the implementation of five COVID-19 projects totaling ₱5,531,656.13
were noted such as low and/or non-production and distribution of goods/items to
frontliners/beneficiaries and fewer jobs generated than the expected
output/deliverables as committed in the approved working plans/project proposals,
contrary to the provisions of MOA entered into with CHED, thus the objectives of the
projects were not fully achieved. Moreover, Terminal Reports submitted by SUCs
were supported with incomplete documentation, which caused delays in the processing
and recording of liquidation thereof.
The inability of CHED to strictly monitor the implementation of the projects as well
as the compliance with the project deliverables and timelines of recipient SUCS of
COVID-19 funds, resulted in the non-submission of weekly updates of the projects by
the grantees as required in the MOA and resulted also in delays or even non-submission
of TRs and LRs which prevented the CHED from the immediate assessment of the
output achieved for each approved proposal.
8 DA Overall, the agency’s fund utilization/obligation under the Bayanihan I and II for
COVID-19 initiatives of ₱24,842.138 million is 91.89 percent compared to its
allotment of ₱27,034.97 million with unobligated amount of ₱2,192.83 million due to
the delays in the procurement process, non-implementation of projects due to
unavailability of seeds and late release of funds.
Procurement contracts for fertilizer, seeds and other agricultural products amounting
to ₱2,075.653 million of nine DA Offices were processed, approved and awarded to
various suppliers/ consultants/ contractors despite lacking supporting documents
required under Section 3.6 of GPPB Resolution No. 2020-001
Distribution of seeds, fertilizers, livestock and feeds in seven DA offices amounting to
₱1,019.499 million were not compliant with DA Memorandum Order Nos. 19 and 31,
series of 2020, Items A and B.II of DA MC No. 26, series of 2020, DA MC No. 12 s.
2020, and DA MO No. 52.

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No. Agency Audit Observation
Reimbursements of claims for fertilizer amounting to ₱215.89 million under the ARice
Resiliency Project -Rice Farmers Fertilizer Program, as provided under DA-
Development Bank of the Philippines Joint Memorandum Circular No. 04 and DA MO
No. 31, were not complied with, which resulted in the: a) overpayment of fertilizer
reimbursement amounting to ₱214.894 million; b) unreliability of reimbursement of
₱0.963 million; and c) low reimbursement in RFO XIII.
Total reported number of beneficiaries that had claimed reimbursement of fertilizer
assistance with the DBP amounting to ₱2.91 million exceeded the total number of
beneficiaries listed in the master list submitted by the DA-ICTS to the DBP for
reimbursement by 729 beneficiaries, in contrast with the provisions of DA MO No. 31
and DA DBP JMC No. 04.
Laxity in the reporting of farmer beneficiaries in the master list submitted to the DBP
under the Cash and Food Subsidy to Marginalized Farmers and Fisher folks resulted
in the over remittance of payroll amounting to ₱35.831 million caused by the 7,146
beneficiaries that were reported two or three times, contrary to DA-BFAR-PCA-SRA-
NCIP-DBP JMC No. 06. On the other hand, farmer beneficiaries totaling 1,317 who
have claimed the ₱3,000.00 financial assistance were not included in the master list
submitted by the DA-ICTS to the DBP.
Leniency in the reporting of farmer beneficiaries in the master list submitted to the
LBP under the Financial Subsidy for Rice Farmers resulted in the over remittance of
payroll caused by the 6,912 beneficiaries that were reported two or three times,
contrary to Section II.6.5.5 of the DA-LBP JMC No. 01, resulting in the over
remittance of financial subsidy amounting to ₱35,640,000.00. In addition, the failure
of the LBP to render liquidation reports as prescribe in the DA-LBP-DBP JMC No. 16
and in the MOA resulted in the non-validation of the total number of beneficiaries who
have claimed financial assistance.
The accuracy of the farmers’ data base could not be relied upon due to the assignment
of multiple RSBSA numbers to a single farmer beneficiary and/or the assignment of
RSBSA number to two or more farmer beneficiaries
Fund transfers to IAs and NGOs/POs amounting to ₱ 249.422 million were not
supported with complete documentation, contrary to Section 6 of P.D. No. 1445; COA
Circulars Nos. 94-013, 2007-001, and 2012-001. Likewise, the mandatory stipulations
provided by the said regulations were not incorporated in the MOA between the Source
Agency and Implementing Agencies.
9 DDB The purchases of foodstuff and medical supplies/materials for donation to various
beneficiaries totaling ₱4.267 million could not be fully accounted for reasons that:1)
the exact quantity per item of donated supplies/materials were not indicated in the
receiving documents of the recipient-organizations; 2) recipients were not properly
identified as to their official station and position/designation; and 3) some donated
goods were not supported with acknowledgment receipts, which deficiencies are
inconsistent with the provisions of COA Circulars 2020-009 and 2014-002.
10 DepEd Lapses in the utilization of budget amounting to ₱3,220.87 million
Non-/incomplete submission of the required documents regarding BE-LCP amounting
to ₱545.65 million
Non-/ delayed submission of perfected contracts and Purchase Orders and
insufficiency of supporting documents for transactions amounting to ₱2,399.84 million
Non-compliance with the IRR of RA No. 9184 and Other Issuances on Government
Procurement for procurements amounting to ₱623.63
Inadequate supporting documents and other deficiencies in disbursements and
procurements amounting to ₱439.93 million
Non-preparation / maintenance of prescribed forms for issuance and recording of
inventory items
Flawed/Incomplete/Delayed procurement, reproduction and delivery of SLMs
amounting to ₱886.50 million
Unliquidated cash advances amounting to ₱19.74 million and improper use thereof
Non-withholding of taxes from the payments to the reproduction of learning modules
amounting to ₱0.33 million
Purchases of Capital Outlay items costing ₱15,000.00 and above amounting to ₱0.49
million
Unremitted collection from liquidated damages amounting to ₱0.02 million
11 DILG Due to the unimplemented planned activities, such as, procurement of equipment,
drugs and medicines and the like, the Department’s utilization rate on the allotment
received under the “Bayanihan to Heal as One Act” and the “Bayanihan to Recover As
One Act” in the total amount of ₱3,618,600,355.00 was below 75 percent in the DILG

361
No. Agency Audit Observation
Central Office and seven ROs, resulting in unobligated allotment of ₱447,629,260.33
or 12.37 percent of the total allotment
Other deficiencies on COVID-19 fund utilization were also observed which include:
(a) allocation for training expenses amounting to ₱6,970,000.00 utilized for the
expenses of Emergency Operations Center which are not related to training, contrary
to Section 17 of the General Provisions of the General Appropriations Act or R.A. No.
11465 and Chapter 3 of the GAM-NGAs, Volume III; (b) disbursements made thru
cash advances amounting to ₱6,760,494.67 which contravened existing government
rules and regulations on the handling and liquidation of CAs and other standard
process/procedures on disbursements, casting doubt on the validity and legitimacy of
the expenditures.
Other deficiencies on COVID 19 fund utilization also include incomplete
documentation on the hiring of contact tracers.
12 DOH Considerable amounts of unobligated allotments amounting to ₱12,415.16 million as
of December 31, 2020 aimed at strengthening the Department’s capacity to address the
COVID-19 pandemic and further buttressing the health care system was noted. This
condition affects the efficient utilization of COVID-19 funds vis-à-vis the agency’s
implementation capabilities and its response to the urgent healthcare needs during the
time of state of calamity/national emergency.
Accomplishment targets for the implementation of foreign-assisted projects with
allotted funds of ₱3,421,390,418.00 were not met as of year-end, thus, optimum
benefits that could have been derived therefrom did not redound to the intended
beneficiaries in Calendar Year 2020.
Procedural deficiencies in the procurement process and lack of documentation in
various contracts totaling ₱5,038,428,371.74 entered into and implemented by the
DOH operating units were not in keeping with pertinent provisions of RA No. 9184
and its Revised Implementing Rules and Regulations and GPPB guidelines for
procurement under RA Nos. 11469 and 11494, thus, deprived the government of the
most advantageous prices and cast doubt on the regularity in the payment of
transactions.

Medical equipment and supplies procured for COVID-19 response totaling

₱69,942,628.00 remained unutilized or were not immediately utilized due to factors
that could have been avoided had there been proper procurement planning, thereby,
depriving the public of the immediate use of the equipment during the pandemic.
Moreover, liquidated damages totaling ₱4,490,843.00 were not applied against
payments to suppliers in default, thus, denying the government of immediate means to
enforce compensation.
The management of cash advances and petty cash funds by various DOH Operating
Units in the aggregate amount of ₱98,409,569.48 and intended for the COVID-19
response was non-compliant with existing laws, rules and regulations, thereby casting
doubts on the validity and propriety of covered transactions.
Public funds in the aggregate amount of ₱42,412,302,819.95 intended for the
Department’s COVID -19 programs were transferred to procurement/implementing
partner-agencies sans the required MOA and other supporting documents, thus posing
questions on regularity of transactions and the lack of details on the implementation of
agreed procurement and/or program implementation. Likewise, the noted delays in the
delivery of the much- needed medical equipment /supplies/devices resulted in delays
in the provision of quality health service during the challenging times of the pandemic.
Claims for financial assistance of intended beneficiaries amounting to ₱4,885,000.00
were not paid as of year-end due to the delayed downloading of cash allocations
through sub-allotment advice, thus, the intention of the law to cushion the impact of
COVID-19 disease to both the private and public health workers was not fully attained
Non-compliance with applicable rules, laws and regulations on the grant of various
COVID-19 allowances resulted in the: (a) payment of total allowances of
₱539,297,614.13 to health personnel sans complete documentary support; (b) payment
of ₱214,000,228.77 to unqualified recipients; (c) overpayment of ₱6,493,735.91; and
(d) payment of ₱54,454,903.45 during periods not covered by ECQ.
The distribution to OU personnel of meal allowance totaling P275,908,701.91 in the
form of cash allowances, gift certificates and grocery items charged out of the funds
received from the DOH intended for provision for life insurance, accommodations,
transportation and meals of PHWs was found to be inconsistent with the provisions
and implementing guidelines of RA 11494 and pertinent DOH issuances, defeats the
purpose of the funds, and lacks sufficient legal basis.

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No. Agency Audit Observation
The non-submission of required documents and deficiencies noted in the payments of
death and sickness compensation totaling P11,665,0000.00 are contrary to existing
rules and guidelines and have therefore made the validity and regularity of transactions
highly doubtful
Donations in-kind with approximate value of ₱1,405,960,550.46 were not properly
accounted due to the failure to prepare and submit the required Summary/List of
Donations Received, Distributed and Balances of COVID-19 related donations with
supporting documents.
The noted deficiencies in the management of IRM funds totaling ₱734,503,351.01 by
public health care institutions are counter-beneficial to the government’s thrust of
providing quick relief to medical facilities in time of COVID-19 health emergency.
13 DOH Late receipt of Sub-allotment Advice from DOH Central Office hindered management
TRC - to utilize the fund amounting ₱1,000,000.00, thus the objectives of the allocated
DULAG resources could not be concluded as fully attained.

14 DOLE Out of the 18,107 beneficiaries of CAMP, AKAP and TUPAD #BKBK in 10 POLOs,
NCR, ROs II, IV-A, IV-B, VIII and IX who were covered by confirmation thru emails,
phone calls and text messages, only 4,767 or 26.33% responded, of which 221 or
4.64% denied receiving the financial assistance.
Review of the funds transferred to the MRCs disclosed that a total of ₱22.433 million
financial assistance with ₱0.083 million service fees remained unclaimed as of
December 31, 2020 by the recipients/beneficiaries.
Incomplete and deficient documents on the payment of financial assistance totaling
₱58,091,420.00, contrary to the pertinent DOLE DOs/AOs relative to the
implementation of Bayanihan I or RA No. 11469, thereby casting doubt on the
propriety and/or validity of the financial assistance granted to the beneficiaries of the
said programs.
Purchase of COVID-19 rapid test kits, Flu vaccine shots, air purifier necklace and air
purifying system amounting to ₱0.71 million was not in accordance with the health
and safety measures of the DOH.
Fund Transfers to LGUs/ Payments to MRCs and DVs relative to the implementation
of COVID-19 programs such as CAMP, TUPAD and AKAP amounting to ₱336.16
million not supported with complete documentary requirements
15 DOST Cash advances related to Public Health Emergency due to Covid-19 amounting to
₱414,129.98 were granted to DOST officers and employees but no liquidation report
have been submitted/settled
16 DOT Audit of funds amounting to ₱3.86 million intended for COVID-19 disclosed that the
DOT CO had downloaded funds to several ROs for the roll out of community
quarantine guidelines on hotel operations. However, as of December 31, 2020, low
utilization of the funds was observed apparently due to the late downloading of funds
by DOT CO to the different ROs. Thereby, depriving the intended beneficiaries of the
benefits due to the late release of funds and the intended benefits and objectives of the
programs/projects for which the funds were allocated were not fully attained.
Expenses amounting to P464,200.00 representing room accommodation and meals of
11 DOT RO IVA personnel while in isolation in a quarantine facility for 14 days, were
charged and paid out of government funds. DOT RO IV B also paid an amount of
P78,750.00, net of tax, for the accommodation of the five Regional Office personnel
with exposure to COVID-19 confirmed and probable cases for the period October 14
to 24, 2020. Thorough review of the DOT DO No. 2020-034 shows no provision
therein that quarantine expenses for isolation of personnel shall be chargeable against
the MOOE funds of the DOT. Similarly, DOH Memorandum Circular No. 2020-0131,
which were quoted as reference in the DOT DO likewise bears no specific provision
to charge against the funds of the respective government agencies the quarantine
expenses of their personnel.
DOT RO VI released a cash advance in the amount of P166,250.00 for the purchase
of COVID-19 testing kits for the DOT RO and Boracay Compliance and Monitoring
Field Office staff. A total of P74,767.86 was expended for the payment of the
purchased COVID-19 Testing Kits. The remaining P91,482.15 was disbursed on
expenses not related to the purpose such as, honorarium, registration fee, snacks,
freight charges, professional fee, bank charges, insurance premium, and purchase of
face masks and shields. Likewise, cash advance for COVID-19 related interventions/
activities of DOT RO X were utilized for the purchase of 4 sets of Nokia 105
cellphones.
17 DOTr The DOTr had not attained optimum use of its P9,500,000,000.00 budgetary
appropriation under RA No. 11494 “Bayanihan to Recover as One Act” due to delays

363
No. Agency Audit Observation
noted in the release of funds to the IAs. Moreover, of the total Notice of Cash
Allocations received under this Act, P9,398,574,014.69 or 98.93% thereof was utilized
as at year-end, thereby resulting in the reversion to the BTr of P101,425,985.31 or
1.07%. In addition, required liquidation reports were not submitted by the IAs to the
DOTr, contrary to item 4.6 of COA Circular No. 94-013 and Memoranda of Agreement
with IAs.
Delays in the implementation of the Service Contracting Program ranging from 2 to
10 weeks as at December 31, 2020 resulted in the minimal fund utilization of only
P59,720,089.25 or 1.07% of the total project fund of P5,580,000,000.00, thereby
delaying the intended benefits to the PUV drivers and operators. Furthermore, only a
total of 29,871 drivers or 49.79% of the 60,000 targeted driver-participants were
registered in the Program as at year-end.
Out of the total Direct Cash Subsidy Program fund of P1,161,214,210.00, only the
amount of P963,696,500.00 or 82.99% was utilized and only P839,520,500.00 or
87.11% thereof was actually disbursed, hence, delaying the benefits intended for the
Program beneficiaries.
A total of 7,347 pieces or 20.41% of the total concrete barriers procured for the EDSA
Bus Way Project with an equivalent value of P31,592,100.00 remained
uninstalled/undeployed due to: (a) replacement of at least 3,243 pieces of barrier by
steel and/or metal bollards in flyovers and underpasses; and (b) construction of needed
concourses, structures and other structures along EDSA prior to
installation/deployment of barriers, thereby limiting its potential use not only to
maintain orderliness and ensure the safety and security of commuters using the EDSA
Busway but also to mitigate traffic congestion.
18 DPWH The following audit observations were noted on the utilization of COVID-19 Funds
amounting to ₱684.90 million:

(a) Non- compliance with some provisions of RIRR of RA Nos. 9184 and 11494 and
GPPB Resolution;
(b) Delayed implementation of infrastructure projects;
(c) Idle and non-functional isolation facilities;
(d) Delayed/non-submission of infrastructure contracts and purchase orders; and
(e) Disbursements for the procurement of good and projects not properly supported.
19 DTI In DTI-CO, Ros V, and XI, payment of financial assistance/livelihood kits in excess
of the authorized amount allowed under DTI-DO 20-63 and 54 and 20, resulting in an
excess cost over the authorized amount in the amount of ₱0.350 million.
In DTI Ros I, IV-A, IV-B, VI, and XII, validity of distribution of livelihood kits
amounting to ₱39.94 million was not ascertained due to the absence of documentary
requirements, contrary to Item 6.1b of DTI-DO No. 20-54 dated June 16, 2020.
Of the total allotment of ₱100 million, a total of ₱74.781 million was obligated by the
DTI-ROs and RO IV-A, and RO IX, or a fund utilization rate of 74.81 percent.
Moreover, total disbursements amounted to ₱17.093 million, or a disbursement rate of
only 22.85 percent.
In RO XI, it reported that out of the total obligations of P5.679 million a total of 0.669
million were obligated despite incomplete supporting documents, contrary to Section
4(6) of PD 1445 and COA Circular 2012-002, thus, casting doubts on the propriety of
the transactions.
In DTI CO, payment of overtime pay while on WFH were paid in the amount of
₱486,847.67 contrary to CSC MC No. 18, s. 2020
In R 1, the liquidation reports on fund transfers to the Accountable Officers of
Provincial Offices in the amount of ₱7,900,387.91 were not submitted to the Regional
Accountant thereby resulting in delays in the determination of fund transfer balances.
These lapses resulted in the non-reversion of CY 2020 Covid 19 fund balance in the
amount of ₱7,900,387.91 to the BTR.
20 EMB The Agency’s fund utilization for COVID-19 initiatives of ₱29,034,352.90 is 97.53
percent compared to its available allotment of ₱29,768,830.40 during the year with a
balance of allotment of ₱734,477.50 due to late downloading of funds from the Central
Office to the Regional Offices, thus, the funds were not fully utilized in accordance
with Section 65 of RA No. 11260, as amended by RA No. 11464 and EO No. 91 dated
September 9, 2019.
Funds amounting to ₱6,959,431.51 were modified for the implementation of the
support mechanisms related to COVID-19 for the personnel of EMB NCR and CAR
without approval by the Agency Head or the Bureau Director due to their claim that it
was not necessary to modify since the object of expenditures did not change which is

364
No. Agency Audit Observation
not in accordance with Section 70 of RA No. 11465 and Item 5.2.1.1 of National
Budget Circular No. 578.
The Accountable Officers of EMB CO, NCR and Region III failed to withhold taxes
from the procurement of vitamins/dietary supplements, acrylic shields and other
materials related to COVID-19 in 2020 amounting to ₱644,857.77 since these were
paid through cash basis by the Accountable Officer, which was later reimbursed,
instead of direct payment to supplier thru check or ADA as the appropriate mode of
payment, thus, depriving the government from collecting said taxes from the payments
thereon amounting to ₱31,776.69 pursuant to RMC No. 5-2006 and related revenue
regulations.
Payment for room accommodation with full meals during the 14-day quarantine period
of two reassigned employees to Palawan in the total amount of ₱32,000.00 were made
without legal basis contrary to Section 2 of Presidential Decree No. 1445 resulting in
the incurrence of irregular expenditure as defined in COA Circular No. 2012-003 dated
October 29, 2012.
Supplemental Annual Procurement Plan for CY 2020 along with the PPMPs for the
procurement of goods and services incidental in the fight against COVID-19 totaling
₱2,786,796.75 in EMB CO, NCR and Region XII was not submitted to GPPB, neither
posted in the PEs website or on the GPPB online portal for Emergency Procurement
pursuant to GPPB Circular No. 01-2020 dated April 6, 2020 or the Guidelines for
Emergency Procurement under Republic Act No. 11469, the Bayanihan to Heal as One
Act.
Excessive grant of ₱1,500.00 monthly Internet Allowance/Internet Subscription
Expenses paid to each employee in EMB CO and NCR in the total amount of ₱4.26
million pursuant to Item 4.0 Support Mechanisms of the CSC MC No. 18, s. 2020.
Unnecessary purchased of 38 pieces of SONY Bluetooth Wireless Headphone totaling
₱102,565.80 despite its non-inclusion among the equipment to be provided to
employees of EMB Region I to facilitate the implementation of the work-from-home
arrangement as provided in CSC Memorandum Circular No. 10, s. 2020.
21 FDCP Failure to apply fidelity bond for the AO; and irregular and excessive payment of
DEAR assistance in the amount of ₱309,000.00 thereby, affecting the validity and
propriety of the Program and in contradiction to Section 4 (6) of PD 144,5 and FDCP
Advisory Nos. 01, 02 and 04, series of 2020, Section 7.1 of COA Circular 2006-005
dated July 13, 2006, and COA Circular No. 2012-002 dated October 29, 2012.
Financial Assistance (Food and Grocery Allowance) to regular and COS/JOs
amounting to ₱0.40 million contravenes some of the existing government rules and
regulations as defined in COA Circular No. 2012-003 and Section 3 of Administrative
Order 103, s. 2004.
Health Care Insurance to regular, contractual and COS/JOs personnel amounting to
₱0.48 million contravenes some of the existing government rules and regulations as
defined in COA Circular No. 2012-003 dated October 29, 2012, COA Resolution No
2005-001 dated February 3, 2005, and Section 3 of AO 103, s. 2004.
Weaknesses in internal control system in the implementation of the DEAR Program
resulted in incomplete documentary requirements for the payment of DEAR assistance
amounting to ₱28 million
Non-liquidation of CAs amounting to ₱1.64 million at the end of the year making the
CAs susceptible to loss or misuse or theft, and the possibility of misplaced or lost
supporting documents due to prolonged settlement
22 FPA A Thermal Scanning Gate (an infrared temperature walkthrough detector) donated to
FPA by a private company amounting to P39,153.07 was not recognized/recorded in
the books
23 HSAC The agency’s grant and payment of expenses to Govern the Provision of Support
Mechanisms to its officers and employees (Central and Regional Offices) totaling
₱7,080,000.00 was not properly supported with complete documentation contrary to
Section 4(6) of PD No. 1445. Thus, the regularity/validity and propriety of the
transactions cannot be determined. Moreover, the grant and payment of expenses to
Govern the PSM to the agency’s COS Personnel, Janitors and Security Guards totaling
₱816,000.00 were not in accordance with the provision of GPPB Resolution No. 09-
2012 dated April 27, 2012 and Section 7.5 of the COA-DBM JC No. 2, s. 2020 dated
October 20, 2020; thus, irregular.
24 NAMRIA The agency did not withhold taxes from various supplies for the payment pertaining to
emergency procurement of supplies and materials relative to the prevention and
precautionary measures on the COVID-19, which is not in accordance with Revenue
Memorandum Circular No. 5-2006, depriving the government of taxes due in the
amount of P116,868.72.

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No. Agency Audit Observation
Supplemental Annual Procurement Plans for CY 2020 along with the PPMPs for the
procurement of goods and services incidental to the fight against COVID 19 amounting
to P3,263,162.57 were not submitted to the GPPB, neither posted in the PEs website
or on the GPPB online portal for Emergency Procurement pursuant to GPPB Circular
No. 01-2020 dated April 6, 2020 or the Guidelines for Emergency Procurement under
Republic Act No. 11469, the Bayanihan to Heal as One Act. Thus, the agency is not
compliant with the provisions under Sections 3.1 and 3.2 of the GPPB Circular No.
01-2020.
25 NAPOLCOM Payment of various expenditures totaling ₱8,746,600.58 relative to the agency’s
COVID-19 response for prevention, mitigation and containment of the disease was not
in accordance with the existing rules and regulations; thereby, casting doubt on the
validity and legality of the transactions.
26 NCCA CAs amounting to ₱49.14 million for the payment of cash assistance to individuals
under the “Arts Program for Cultural Workers and Artists under the State of Calamity”
were granted to 16 designated SDOs but disbursed by six personnel who were under
Contract of Service.
Liquidation of CAs amounting to ₱48.31 for the cash assistance not supported with the
duly signed “Declaration as non-recipient of other COVID-19-related cash assistance
programs of the government”
Cash assistance amounting to ₱0.41 million was paid to 67 beneficiaries who already
either received the same benefit from another government agency or from the NCCA.
27 NCMF Fund Utilization Report or Report of Accomplishment does not mention the cost and
the number of food packs made from the purchased relief goods, and the distributed
relief goods amounting to ₱0.90 million were not supported by the list of beneficiaries
with their signatures signifying their acceptance of the relief goods.
28 NDCP Procurement of COVID-19 Response items amounting to ₱0.68 million was made on
a piecemeal basis
29 NEDA In NRO XIII, there was a Notice of Suspension for claims not supported with
documents to validate the number of days claimed totaling P23,000.00, and Notice of
Disallowance for claims in excess of P500.00 each or a total of P7,500.00.
30 NFRDI Payment of Economic Relief Assistance to permanent employees amounting to ₱0.59
million without legal basis contrary to COA Circular No. 2012-003 dated October 29,
2012, thus, irregular and illegal.
31 NMIS The agency registered a low fund utilization/obligation rate of 83.32 percent or
₱249.970 million out of ₱300.00 million and a low cash utilization/disbursement rate
of 32.50 percent or ₱97.500 million for the construction of Meat Cutting Plants in San
Jose, Batangas under Local Meat Establishment Programs under Bayanihan II, thus,
resulted in depriving the beneficiaries of the Local Meat Establishment Programs.
32 OCD Paid claims for the procurement of goods and services totaling ₱94,551,822.13 in favor
of various suppliers were not supported with contracts contrary to Section 4.6 of PD
No. 45 and Section 3 of GPPB Circular 01-2020.
At least 61 Procurement Contracts through Emergency Procurement under the
Bayanihan Acts amounting to ₱347.68 million were not supported with Market
Research as basis for Price Negotiations as required under GPPB Circular 01-2020 and
GPPB Advisory 04-2020; thus, reasonableness of contract costs could not be
ascertained. Likewise, some POs, WOs and PCs were not adequately supported with
mandatory documentary requirements while 57 contracts were non-compliant with
reportorial requirements.
Ownership of PPE amounting to ₱7.72 million already distributed to quarantine
facilities, testing sites and regional hospitals could not be ascertained due to the
absence of a MOA or equivalent document between the parties involved stating therein
the intention for which the PPEs were deployed/transferred.
33 OPAPP Emergency lease of seven venues amounting to ₱12.07 million were not supported
with notarized Omnibus Sworn Statement from the lessor, contrary to Section 4.1 of
GPPB Circular No. 01-2020 dated April 06, 2020.
The updated Annual Procurement Program and all procurement transactions with
Notice of Award under emergency cases in relation to the Bayanihan Act One were
not posted in the GPPB online portal, contrary to Section 9 of GPPB Circular No. 01-
2020 dated April 06, 2020.
34 OSG The required publications of documents relative to the procurement of medical
supplies totaling ₱1,492,988.01 pursuant to Section 4 of RA No. 11494 or the
Bayanihan to Heal as One Act was not complied.
35 OTS The OTS paid monetary assistance to 106 Senior Citizen employees
amounting to ₱227,850.18 which is not among the Standard Allowances and Benefits
provided under the Total Compensation Framework per Item (4) (f) (g) and (h) of the

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No. Agency Audit Observation
Senate and House of Representatives Joint Resolution No. 4, series of 2009 and
Republic Act No. 11466, hence, considered unauthorized and irregular expenditures
under Section 3.1 of COA Circular No. 2012-003.
36 OVP Procurement of medical equipment amounting to ₱3.53 million donated to a
government hospital considered as capital expenditures, was improperly charged to
allotment for MOOE, inconsistent with Section 17 of the GP of the GAA for FY 2020.
Process gaps were noted in the handling and monitoring of the receipt and distribution
of donations in-kind, particularly with regard to some incomplete and varying
information in the Summary/List of Donations Received, Distribution and Balances,
and distribution list. Moreover, submission of the quarterly report ending December
31, 2020 to the Office of Civil Defense and COA was delayed by 34 days contrary to
Item II.1 of COA Circular No. 2020-009.
37 OWWA The provisions in the contract between OWWA and the Service Provider on the
establishment by the SP of separate bank account exclusively for DOLE AKAP
Program with an amount of ₱1 billion and the submission of the weekly and monthly
reports with the list of claimants were not adhered to by the SP.
A total of 65 ineligible DOLE-OWWA AKAP recipients from RWOs NCR, I, V, X
and XIII were able to avail the financial assistance from the program contrary to
Section II of MOI No. 014, series of 2020
Other deficiencies were noted in the audit of COVID-19 related expenditures
amounting to ₱21.52 million in the OWWA-CO and RWOs I, IX and XIII, such as a)
doubtful charges from the cash advance for the hygiene kits, bottled water and snacks
procured from Construction and Trading Store and/or Suppliers which are not
reputable drugstores and supermarkets; b) payments thru cash advances instead of
directly to the Suppliers, thru the DV system; c) a designated collecting officer is
performing also disbursing functions; and d) DVs were neither stamped paid nor
certified by the Accountant, contrary to Sections 2 and 4 of PD No. 1445,COA Circular
Nos. 92-389 and 97-002 dated November 3, 1992 and February 10, 1997
38 PCC The implementation of the Milk Feeding Program was not yet completed as at
December 31, 2020 in the School Division Offices of Isabela, Cagayan and Cauayan
City resulting in unutilized aggregate balance of ₱7,355,775.60, hence, the objective
of improving the nutritional status of undernourished children in public day care,
kindergarten and elementary schools and boosting the immune system of learners
during pandemic were impeded contrary to Republic Act No. 11037 and Department
of Education Order 036, s. of 2019, as amended by DepEd Order No. 022, s. of 2020.
39 PCG Issuances to end-users of medical equipment and medical supplies for COVID-19
amounting to ₱35,237,234.00 were not covered by Property Acknowledgment
Receipts and Inventory Custodian Slips; hence, proper accountability and
responsibility thereof could not be established, which may result in loss and wastage
of government resources
The PCG purchased nine units of medical equipment amounting to ₱7.873 million thru
the emergency mode of procurement pursuant to RA No. 11469, which had remained
idle and unutilized as at year-end or about eight months from its delivery on May 5,
2020 in spite of the reported high positivity rate of COVID-19 infection among PCG
personnel; thereby defeating the purpose for which the acquisition of equipment was
intended.
40 PCIEERD Deficiencies noted in the implementation of COVID-19-related projects included: (a)
delivery of incomplete accessories and supporting documents to hospitals for the swab
testing stations; (b) non-operational thermal scanner; (c) receivables from FAME Inc.
amounting to ₱9,990,000.00 remained outstanding due to the non-submission of
liquidation reports or terminal accomplishment report with supporting documents
within two months after project completion on the deployment of swab testing stations;
and (d) net overpayment of salary of Job Order amounting to ₱3,150.00 due to possible
laxity in the payment process; hence, the objective of the COVID-19 initiative projects
may not be fully attained. Moreover, the actual deployment of disinfecting chamber
system to recipients thereof could not be validated in the absence of available
documents.

41 PIA Unnecessary representation expenses amounting to ₱0.13 million

Insufficient documentary requirements amounting to ₱1.25 million
42 PN Of the realigned/received funds amounting to ₱260,370,972.17 for COVID-19 related
expenses, 99.78 percent or ₱259,789,527.17 was obligated/utilized during the year,
leaving a balance of ₱581,445.00. Moreover, various deficiencies were noted in the
utilization of funds contrary to the existing rules and regulations.

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No. Agency Audit Observation
43 PNP PRO 4B: CAs amounting to ₱0.50 million remained unliquidated as of December 31,
2020 which is not in conformity with pertinent items of COA Cir. No. 97 002 which
exposes the liquidation report and its supporting documents to loss and deprived the
conduct of timely audit.
PRO 5: The procurement by the agency of goods amounting to ₱17.58 million through
negotiated procurement-emergency purchase was not duly supported with proof of
posting of the notice of award, contract or purchase order, including notice to proceed
if necessary, in the PhilGEPS website, the website of the procuring entity concerned,
and at any conspicuous place reserved for this purpose in its premises.
PRO 7: Incomplete supporting documents for transactions amounting to ₱15.19
million such as: Purchase Request, Canvass documents, Abstract of Bids, Proof of
receipt by deployed PNP personnel of packed meals, etc.
PRO 8: No official receipts attached for various purchases and/or no liquidation report
submitted amounting to ₱0.36 million
PRO 13: No Training Design/Activity Design/ duly approved Program. No attendance
list attached; Lacking Driver's Trip Tickets; and RIS for transactions amounting to
₱0.22 million
44 PPSC Mandatory posting on the GPPB Online Portal of procurement documents such as
Updated APP, Notice of Award and other information relative to the Procurement
Projects undertaken amounting to ₱0.97 million was not complied with, contrary to
the provisions of the Bayanihan Acts and GPPB Circular No. 01-2020 dated April 6,
2020
45 PS Absence of a clear policy in handling inventories manifested by poor coordination
among operating offices of the agency resulted in slow-moving COVID-19 items
totaling ₱95.455 million contrary to Section 6 of Administrative Order No. 17 dated
July 28, 2011
Only 62 of the 105 contracts/POs awarded under the Bayanihan Acts (RA Nos. 11469
and 11494) were posted in the GPPB Online Portal, thus, defeating the government’s
purpose of transparency and accountability which is not in accordance with GPPB-
TSO Advisory Nos. 06-2020 and 19-2020.
Out of 112 COVID-19 related contracts/purchase orders, 32 were not submitted for
review while the 80 contracts/POs were received 10 to 356 days beyond the prescribed
period, thereby affecting the timely audit disposition on the subject transactions.
46 PSC Non-submission of Fund Utilization Report for the amount of ₱173.79 million
47 PVAO The validity and propriety of various COVID-related expenditures totaling
₱3,108,937.73 cannot be ascertained due to incomplete documentation, contrary to the
provisions of Section 4 of PD 1445, COA Circular No. 2012-001 dated June 14,
2012and COA Memorandum No. 2020-019 dated November 9, 2020.
48 TESDA Although the program implementation for the Bayanihan 2 was extended up to June
30, 2021, the actual full utilization of the funds and realization of the objective of the
program for the retooling, retraining and upskilling of the target beneficiaries may not
be attained since the release of funds to Ros amounting to ₱739.90 million was not
based on the actual needs or the expected number of targeted beneficiaries per
district/region but on the budget allocation per Congressional District, and in view of
the fact that the Recovery Intervention Program also pertains to conduct of scholarship
trainings which is directly affected by quarantine restrictions and lockdowns imposed
by the government due to COVID-19 outbreak.
SUCs
1 15 SUCs Payment of COVID 19 Hazard Pay amounting to ₱27.41 million without authority to
report for work, or during the period of declared GCQ, inconsistencies in the DTR and
number of days claimed for Hazard Pay, not supported with DTRs, or not in conformity
with DBM Budget Circular No. 2020-1 and other deficiencies in ASSCAT, BU,
CBSUA, CHMSC, CLSU, CNSC, CNU, CSU, DMMMSU, PhilSCA, QSU, SSC,
SSCT, USEP and WVSU.
2 CPSU, Expenses related to COVID-19 amounting to ₱2.21 million were charged against the
NONESC STF contrary to Section 4(d) of RA No. 8292, Section 18(d) of CHED Memo. Circular
OST and No. 3, series of 2001, the IRR for R.A. No. 8292 and Article III of CHED
NORSU Memorandum Order No. 20 series of 2011.
3 LNU, The procurement of supplies and materials, to help prevent the spread of COVID-19
SSU and and for other purposes totaling ₱0.61 million was made through cash advances or
VSU reimbursement, contrary to Government Procurement Policy Board Resolution No. 03-
2020 dated March 9, 2020, GPPB Circular No. 04-2016 dated December 20, 2016, and
the COA and GPPB Joint Memorandum Circular No. 1 dated March 26, 2020.
4 BU Excess payments amounting to ₱0.03 million

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 No. Agency Audit Observation
5 CTU The procurements of supplies and materials aggregating ₱1.116 million, which were
charged against the DOST Region 7 funded projects in response to the COVID-19
health emergency crisis, did not conform to the standards set forth in the Government
Procurement Policy Board Circular No. 01-2020 dated April 6, 2020, thus, the
regularity of the disbursements could not be ascertained
6 DOSCST Release of funds to unqualified recommended-grantees of Bayanihan 2 for Higher
Education Tulong Program (B2HELP) in the amount of ₱0.08 million
7 PUP The COVID-19 Response Funds through Higher Education Development Fund of
CHED granted to the PUP as Anti-COVID 19 Spread Program: Production of 70
percent Ethyl Alcohol Solution with Virgin Coconut Oil amounting to ₱4,945,844.00
remained unutilized as the Program has not yet started due to delayed procurement of
supplies, materials and equipment.
8 SDSSU The adequacy and effectiveness of the internal controls over disbursements were
deemed insufficient as expenses incurred for the University’s Food Share Project
totaling ₱115,682.50 were not supported with complete documentation, contrary to
Sections 4(6) and 124 of P.D. No. 1445 and COA Circular No. 2012-001, thus validity
and propriety of the disbursements could not be ascertained.
Payment of cash assistance granted to participants for the “Creating a Healthy
Environment towards Healthy People against the War of Covid-19 Pandemic” project
totaling ₱148,330.00 was not completely substantiated with supporting documents
contrary to Section 4(6) of P.D. No. 1445 and COA Circular No. 2012-001, thus,
validity and propriety of the transaction could not be ascertained. Likewise,
reasonableness of the amount granted cannot be established and the impartiality of the
selection of program recipients is doubtful.
9 SSCT Expenses incurred in the conduct of school meetings, trainings, seminars, orientations,
evaluations, interviews, as well as those purchases of supplies for office use, CoViD-
19 response, and IGP operations totaling P959,496.55 were paid on a reimbursement
basis instead of making payments directly to the suppliers contrary to Section 10 of
the Implementing Rules and Regulations of Republic Act No. 9184, Sections 91 and
93 of Presidential Decree No. 1445, GPPB Resolution No. 03-2020, and Section 2 of
COA Circular No. 97-002, thus: (a) the government was deprived from the collection
of taxes that could have been withheld out of the payments; (b) the assurance that the
goods were purchased at the most advantageous price for the government, and the
competitiveness and transparency in government procurement were not upheld; and
(c) the process may be abused and may lead to misappropriation of funds if
continuously practiced. Moreover, Sections 12.2 of R.A. No. 9184 was not complied
when the Agency allowed the end users to serve the Price Quotation Forms to the
prospective suppliers instead by the BAC personnel.
10 USEP Documents to support the Purchase of Alcohol Hand Sanitizer, Alcohol with dispenser
and repair of water pump in the total amount of amount of ₱11,478.30 were dubious
as the official receipts were dated earlier than the canvass, contrary to applicable
provisions of RA 9184, thereby casting doubt on the veracity of the canvass made.
Cash advances for COVID-19 related expenses in the total amount of ₱16,489.00 were
not spent for the specific purpose for which the cash advances were granted, so not in
consonance with Section 89 of PD 1445 and therefore illegal.
No canvass paper was submitted to support the purchase of eleven units of 16 liters
knapsack sprayer from S. Herrera Bros. Inc. which is not in accordance with RA 9184.
Moreover, delivered items were not in accordance with the specifications as stated in
the PR.

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendations
17 Agencies Ensure that all payments for Hazard Pay are supported with authority to report for
and 11 SUCs work; grant only Hazard Pay during the appropriate community quarantine
classification; ensure that the number of days with Hazard Pay coincides with the
actual days the individual reported for work as indicated in their DTR; and comply
with all pertinent laws, rules and regulations on the grant of Hazard Pay and
require the refund of the irregular payments

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 Agency Recommendations
Other a) Require the refund of payments made which were determined to be
Agencies illegal/irregular
and SUCs
b) Strictly observe the requirements under existing procurement laws, rules and
regulations and avoid procuring goods and services through reimbursement;

c) Ensure that all disbursements are duly supported with complete

documentation; submit noted lacking documents and ensure compliance with
prescribed deadlines on the submission of contracts, reports, and other
supporting documents;

d) Strictly adhere to the COVID-19 related laws, rules and regulations such as
the Bayanihan Acts and related issuances;

e) Comply with the procedures on Receipt, Inspection, Acceptance and

Recording of Inventory Items as prescribed in the GAM and the preparation
and maintenance of prescribed forms;

f) Closely coordinate operating units/regional offices and other implementing

agencies for the timely release of funds and require the immediate liquidation
of fund transfers and cash advance and observance of applicable rules and
regulation therefor;

g) Discontinue the practice of charging unrelated expense to COVID-19 funds

and ensure the proper observance of budgeting rules and regulations;

h) Ensure that the required and appropriate withholding taxes are deducted and
remitted to the BIR for all payments made to suppliers/contractor;

i) Fast track the implementation and completion of programs, projects and

activities, and procurement of goods and services to optimize fund,
disbursement and cash utilization and ensure delivery of goods and services
to the intended beneficiaries;

j) Exercise prudence in the use of government funds and to purchase only those
that are necessary to address the current State of Public Health Emergency in
order to avoid waste of government funds

ACPC a) Instruct the Accountant and the PPPDAS Director to coordinate with the PLCs
concerned to: (i) secure and attach the identified documents in reference with
the Role of the Program Partners under Memorandum Order No. 22; (ii)
facilitate reconciliation on the amount of differences noted per list of fund
transfer and per confirmation reply; and (iii) remind PLCs to reply to
confirmation letters sent to them; and

b) Provide the legal basis or authority for the granting of special economic relief
assistance and year end performance incentive.
BFP a) Submit justification for procurement of PPEs with relatively higher than the
price ceiling set by DOH pursuant to Dept. Memo No. 2020-0144; No. 2020-
0058-B and No. 2020-0131; and

b) Submit justification on grant of meals to BFP personnel despite receipt of

Subsistence Allowance and grant of meal allowances in cash instead of in kind
in BFP RO 4B.
CHED Come up with a strategy or catch-up action plan to immediately address the
gaps/setbacks encountered in the implementation of programs and projects to
ensure their efficient and timely implementation as well as the maximum
utilization of funds received.

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Agency Recommendations
a) Instruct the Regional Director of StuFAPS Unit to:

i. expedite the evaluation and selection of the Partner Institutions as well

as the verification of the qualified B2HELP student-grantees for the
immediate release of B2HELP funds;
ii. strictly observe the timeline for completion of B2HELP implementation
process as provided in the CMO;
iii. ensure that the student-grantees awarded are qualified and legible
students to receive the B2HELP grant;
iv. require submission of complete liquidation documents from the Private
Partner Institution who have already received B2HELP grant by sending
demand letters;

b) Coordinate with CHED-CO for the timely release/downloading of funds and

then instruct the Accounting Unit to expedite the release of B2HELP Funds
to the remaining 45 Private Partner Institutions;

c) Impose sanctions to Private Partner Institution who will violate any provision
in the CMO, provided that the sanction/s shall be without prejudice to the
interest of the concerned students;

d) CHEDRO I to ensure the proper and efficient implementation of CMO No.

10, s. 2020 and pro-actively coordinate with CHED-CO to warrant the timely
and prompt release of B2HELP funds to the CHEDRO I in accordance with
Section 4(n) of RA No. 11494;

e) Send demand letters to defaulting recipients and, henceforth, strictly enforce

the provisions of the aforementioned COA Circulars and the MOAs,
particularly those pertaining to the submission of Fund Utilization Report,
and in case of non-compliance, impose appropriate sanctions for their
continued disregard of the rules and regulations on the timely settlement
and/or liquidation of transferred fund;

f) Require justification/explanation from SUCs with accomplishments lower

than the expected output per approved working plan/project proposals;

g) Instruct CHED-OPRKM to:

i. conduct thorough review of TRs submitted by SUCs, further evaluate its

actual accomplishments and analyze differences from the expected
outputs, determine corresponding costs of the differences and require
possible refunds (if any); and

ii. follow up and require SUCs to expedite the submission of lacking

documents to facilitate the immediate processing and recording of
liquidation.

h) Require the SUCs to submit to the OPRKM-RMD Office the regular weekly
updates/reports with complete attachments as mentioned in the CMO
guidelines and MOA and for the OPRKM-RMD to strictly monitor the
submission and compliance of the said reports within the timelines.

DA a) Strictly comply with the provisions of Item 10.2 of the DA DBP JMC No. 04
in applying the unit price of fertilizer to avoid overpayment of the fertilizer
assistance to farmer beneficiaries and determine the extent of liability of
personnel responsible for the overpayment of fertilizers and impose sanctions
if warranted;

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Agency Recommendations
b) Explain the reimbursement of fertilizer to unqualified beneficiaries and in
excess of the national/provincial price monitored for the month of June 2020;

c) Update the master list to include the correct needed data for the determination
of the total amount to be reimbursed;

d) Reconcile the number of beneficiaries paid by the DBP in excess of the total
number of beneficiaries listed in the master list submitted by the DA-ICTS
to the bank for the reimbursement of fertilizer assistance

e) Require the concerned FCAs to submit the detailed list of beneficiaries paid
thru the Farmers’ Cooperative to determine to total number of unclaimed
accounts that might be considered as dormant as required under Section
11.2.7.3 of the DA-DBP JMC No. 04;

f) Thoroughly check the masterlist of beneficiaries prior to the certification and

submission to the DA to avoid double reporting of beneficiaries which result
in the over statement of the payroll submitted to the bank and explain the
inclusion of 6,912 beneficiaries that were reported two or three times in the
list of farmer beneficiaries;

g) Provide information on the farm size of the area planted to determine whether
the farmer beneficiaries are qualified for the financial assistance in
accordance with the provisions of DA LBP JMC 01;

h) Require the LBP to submit liquidation reports as prescribe in the DA-LBP-

DBP JMC No. 16 and in the MOA; and

i) Properly monitor the issuance of Reference/Control Number to stop the

assignment of multiple RSBSA numbers to a single farmer beneficiary and/or
the assignment of RSBSA number to two or more farmer beneficiaries.
DepEd a) Strictly follow the provisions in the allocation, release, and utilization of BE-
LCP fund as prescribed under DepEd Order No. 2020-018;

b) Revisit existing procedures in the downloading of funds by developing a

clear policy defining, among others, the timetable on the release of the Sub-
AROs to facilitate the effective and efficient implementation of the program;

c) Undertake lectures by all teaching personnel, whether online or recorded and

based on “per Grade Level on a per subject and topic basis which meant
covering all Grade Levels and subjects per level as well as topics per subject,
for the entire School Year of 2020-2021, in addition to the currently practiced
Modular Distance Learning of SLMs distribution consonant to the directives
contained in DepEd Order Nos. 18 and 19, series of 2020;

d) Coordinate with barangay officials for the use of barangay facilities such as
internet connectivity, computers and television to assist families who do not
have any of such equipment for the playing of recorded lectures or viewing
of online lectures;

e) Furthermore, in case of limitation relative to funding requirements in

conducting lectures, make proper representation to the Department Secretary
to raise it as an issue consonant to DepEd Order No. 18, such as in the case
of procurement of laptops and other equipment needed for the
implementation of online or recorded lectures considering particularly that
their acquisition if costing ₱15,000 or more is not allowed under Item 6.8 of
said rule; and

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 Agency Recommendations
f) Direct the CID to conduct proper identification of recipients, through proper
coordination with the Regional Office, and thoroughly validate the actual
need of the schools who offered digitized learning modality and student
learners in need of the devices before procuring devices like tablets and
OTGs/USBs; and instruct the EPS Focal Person to identify the appropriate
recipients that should be prioritized with the available tablets procured to
address the actual and diverse needs of the student learners.
DILG Submit basis for providing meals and snacks to personnel assigned at Emergency
Operations Center using the COVID 19 funds for Training Expenses. Observe
prudence in the use of government funds by strictly adhering to pertinent
government rules and regulations; submit activity design for three CAs for
audit/validation purposes. See to it that granting of CAs is completely documented
in compliance with Section 1.1.3 of COA Cir. 2012-001 dated June 14, 2012 and
Section 4(6) of P.D. No. 1445; strictly observe provisions of COA Circular 2004-
006 which prescribes guidelines on acceptable evidence of receipt of payment for
disbursements; explain/justify why expenses incurred beyond the period covered
by activity designs shall be allowed in audit. Henceforth, utilize CAs granted only
for the intended purpose/s and within the intended date of utilization; require the
AO to refund excess CA amounting to ₱942.18.
DOH a) Direct the Heads of concerned operating units strictly adhere to the
provisions of RA No. 11494 and pertinent issuances of the DOH or other
competent authorities concerning the provision of life insurance,
accommodation, transportation, and meals during the state of national
emergency;

b) Ensure proper monitoring of all donations in-kind received from all sources
by maintaining records of receipts and issuance/ distribution thereof;

c) Prepare the required reports with the necessary supporting documents and
submit to the NDRRM Council, through the OCD;

d) Consider making representations with PHIC to facilitate the approval of

utilizing IRM Fund for reimbursement of HCIs’ claims related to the
COVID-19 cases;

e) Remind the Heads of various operating units to comply strictly with existing
PHIC regulations on the IRM and effect the required adjustments; and

f) Direct the Legal Service and Internal Audit Service to conduct thorough
investigation on the noted irregularities in the management of IRM Funds
and impose administrative sanctions, when necessary, under the
circumstances.

DOH TRC - a) Formulate an attainable Work Plan involving the implementation of COVID-
DULAG 19 programs/projects/activities to ensure their realization within one year in
consonance with the new cash-based budgeting approach pursuant to Sec.
3.2 of DBM National Budget Circular No. 577 dated May 2, 2019;

b) Establish coordination among concerned Section Heads for the prompt

commencement of PPA to make possible the attainment of targeted results,
for benefits to be immediately derived out of them, in the process, prevent
the reversion of the unexpended allotments prior to any receipt of funds,
coordination with DOH Central Office shall be carried out relative to their
early release; and

c) Once in receipt, utilization of funds shall be commenced immediately.

Specifically, management shall exhaust all efforts to improve the
disbursement over allotment rate through timely implementation of PPAs

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Agency Recommendations
such as avoidance of bulk awarding of contracts/ POs during the last quarter
of the year, to make possible the utilization of all funds within the budget
year.
DOLE a) Continue informing the beneficiaries to claim the financial assistance from
the respective MRCs; and

b) Closely monitor the status of the unclaimed CY 2020 amounts and/or require
the MRCs for the immediate refund of the amounts intended for those
unknown beneficiaries.
DOTr LTFRB Management to review the guidelines and simplify the processes for the
implementation of the Service Contracting Program to maximize the utilization of
the project funds and the participation of qualified PUV drivers and to serve the
intended benefits expeditiously.
DTI Submit the distribution list supported with the duly signed acknowledgement
receipts, pledged of commitments and masterlist of approved beneficiaries to
validate the actual distribution of the livelihood kits and ensure that intended
benefits had redound to the authorized beneficiaries.
NCCA a) Instruct the Chief Accountant to only allow permanently appointed officials
who are bonded to handle disbursements of funds; and

b) Discontinue the practice of transfer of accountability, in strict compliance

with COA Circular 97-002.
OCD a) Stop the practice of paying claims based on quantum meruit principle and
strictly adhere to Section 4.6 of PD No. 4, GPPB Circular No. 01-2020, and
COA Resolution No. 86-58; and

b) Execute a MOA or equivalent document with the parties involved indicating

therein the intent of transfer/deployment of PPE.
OSG BAC Secretariat to comply with the publication requirement of Section 4 of RA
No. 11494 or the Bayanihan to Heal as One Act
OVP a) Investigate the deficiencies noted in the December 31, 2020 report and
submit a revised/ adjusted report duly supported with acknowledgement
receipt for the donations received, and distribution list duly received by the
beneficiaries/ recipients;

b) Submit information on the status of undistributed items;

c) Strengthen controls on the handling, monitoring and reporting of donations

by institutionalizing systematic processes of accepting, recording and
distribution of donations received to ensure that donations are fully and
properly accounted for;

d) Review and prepare diligently the report before submission to concerned

agencies; and

e) Submit the succeeding List/ Summary of Donations Received, Distributed

and Balances to OCD and COA within the period prescribed under COA
Circular No. 2020-009. We further recommended that Management indicate
in the distribution list the inclusion of each relief goods and hygiene kits
(excluding those that were already pre-packed).
OWWA a) Compel the MLhuillier to account for the ₱999,996,000.00 cash transferred
by submitting the required reports and to transfer any balance, including the
interest earned from the cash transfers, to a bank account exclusively for the
DOLE-OWWA-AKAP for OFW beneficiaries, pursuant to the Contract;

b) Require the issuance of Supplemental Agreement to cover the amounts

transferred not covered by the original agreement and include a provision for
penalties in case of non-adherence by the contracting party;

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Agency Recommendations
c) Require the responsible personnel to verify the double-payments and
determine proper action to be done for the return of the overpayment to
DOLE, if warranted;

d) Require the responsible personnel to evaluate the eligibility of the applicant

OFWs ensuring that exclusions are imposed, and to document in the Benefits
Availment Program the results of evaluation to ensure that no double
claim/payment to OFWs are made; and

e) RWO V, to refrain from allowing unqualified persons to claim the benefit

due the OWWA member-OFW.
PA Require the Assistant Chief of Staff for Logistics (G4) to provide justification/
explanation on the implementation of 25 repair works totaling P7,363,928.00
despite requirement on the discontinuance of repair/renovation works adopted as
an economy measure under NBC No. 580.
PCG a) Cancel the PAR/ICS issued to issue the PAR/ICS to transfer the
accountability to the end-users who have physical custody of the items or
properties; ensure that PARs and ICS are numbered and should bear the
property number, date and amount of the items issued; and henceforth,
require copies of pictures on all goods delivered as additional documents
attached to the DVs to strengthen controls and to ensure confidence and
reasonable assurance on the physical existence of the goods delivered and to
reduce the risk of loss or wastage of government resources; and

b) Consider other options to maximize the use of the medical equipment instead
of it remaining idle in the PCG Medical Unit to prevent further losses due to
wear and tear.
PS a) Director, Operations Group to: (i) spearhead the establishment of a clear
policy laying down marketing or sales strategy timelines that would
minimize stock handling of moderate to slow-moving items and identify the
responsibilities and accountabilities of the different operating
offices/divisions; (ii) secure relative historical data from Warehousing and
Delivery Division, Marketing and Sales Division and Depot Operations
Division to aid in policymaking; and (iii) regularly evaluate the
performance/accomplishment of WADD, MSD and DOD, once established;

b) Chief, WADD to monitor and report to MSD upon identifying the

classification of inventory items;

c) Chief, MSD to: (i) coordinate with WADD on the classification of critical
inventory items; and (ii) devise marketing or sales strategy that would
effectively speed up the sale of the surgical mask and face shield and other
slow-moving items identified by WADD; and

d) Chief, DOD to coordinate with MSD, WADD and ROG for marketing and
sales strategies in each classification of the inventory items in the RDs.
PSC Submit Fund Utilization Report
TESDA a) Direct the Offices involved in the processing to properly coordinate and
observe timelines;

b) Streamline the processing time of the concerned Offices to expedite the

release of funds to ROs/POs with approved Regional Qualification Maps
(RQMs); and

c) Be more prudent and objective in the determination of beneficiaries and in

the allocation of scholarship funds, to provide equitable distribution of
scholarship allocations based on the recommended distribution per sector and
per target client including the target number of beneficiaries per sector and

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 Agency Recommendations
per priority client, and to observe the standard procedures of identifying
TVIs.
CTU a) Ensure that a detailed cost estimate of supplies and materials as well as the
expected outputs be clearly quantified in the preparation of the budget for a
certain project.

b) Prepare a summary report on the quantity of each type of PPE items produced
and their corresponding beneficiaries duly supported with complete
documentation, and to submit the same to the Audit Team, for
verification/audit

National Task Force to End Local Communist Armed Conflict (NTF-ELCAC)

Funds

12. Deficiencies were noted in the implementation of programs/projects and

activities of six member agencies of the NTF-ELCAC such as incomplete
documentation, low fund utilization/ unutilized funds, unauthorized fund
transfers and lack of guidelines on the use of such funds casting doubt on the
efficient use of public funds.

No. Agency Observations

1 DILG Management was not able to fully utilize the ₱85,440,000.00 allotment
received during the year for the C4PEACE project resulting in unobligated
allotment of ₱8,735,374.94 or 10.22 percent of the allotment, due to non-
implementation of the five targeted related activities under “Strengthened
communication strategies, capacity development and alliance-building with
all sector for local peace and development” and partial implementation of
one activity under the “Program Oversight. Thus, the required outputs on
the production of Audio-Visual Presentation on ELCAC in times of
COVID-19 and localization of Information, Education and Communication
materials to be developed in eight versions were not carried out/ attained
during the year.
2 DSWD Various defects/deficiencies were noted in the Grant Utilization Plans
totaling ₱400,000.00 under the Livelihood Settlement Grants for Former
Rebels due to absence of full review of the plan by the SLP-Regional
program Management Office contrary to F.2.a of Annex G of MC No. 03,
Series of 2020.
Disbursed Enhanced Comprehensive Local Integration Program and
Livelihood Settlement Grants Assistance amounting to ₱1,280,000.00 and
₱4,040,000.00, respectively, to 330 former rebels in FO-XIII were
supported with inappropriate and/or with lacking documentation, thereby,
casting doubt on the propriety and validity of the transactions.
3 NCIP Meals and accommodations of NCIP RO XIII totaling ₱1,064,219.06 for
NTF-ELCAC Regional Action Planning Workshop were not supported with
sufficient and complete documentation as required in Section 4.6 of PD No.
1445 and COA Circular No. 2012-001. Moreover, the procurement was not
done through a competitive Public Bidding inconsistent with RA 9184.
Disbursements for CY 2019 of NCIP Regional Office No. III amounting to
₱695,000.00 with insufficient documentation
4 OPAPP Actual Obligations and Disbursements exceeded the Budgeted Amount by
₱0.22 million.
Various vouchers amounting to ₱1.36 million and their corresponding
supporting documents for CY 2019 were not submitted to the Office of the
Auditor.
5 PNP Procurements of goods amounting to ₱6.67 million through shopping had
no proof of posting of the request for quotation, NOA, contract or PO,

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 No. Agency Observations
including NTP, in the PhilGEPS website, and PNP-PRO 5 website contrary
to Item IV paragraph E of Annex “H” of the 2016 Revised IRR of RA 9184.
Out of the total appropriations of ₱722,995,000.00 for PNP, the total
obligations incurred amounted to only ₱240,802,722.97 thereby leaving an
unobligated balance of ₱482,152,277.03. In PRO BAR, no Funds were
obligated due to non-preparation of project activities or estimated expenses
indicating project objective and expected output as required in paragraph
3.1.1 of COA Circular No. 2012-001 dated June 14, 2012 caused by time
constraint and late release of funds. The SARO was released on the latter
part of the year.
6 TESDA Fund transfers through Notice of Transfer Allocation from TESDA CO to
TESDA ROs for the implementation of EO No. 70, creating the National
Task Force to End Local Communist Armed Conflict, amounting to
₱160,083,401.61 are highly questionable for lack of proper authority/legal
basis and the absence of appropriate guidelines as to how this fund shall be
utilized, likewise exposing these funds to possible misuse or
misappropriation.

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendations
DILG a) Provide further explanation stating the reasons for the unimplemented and not
implemented activities;

b) Consider the issues and difficulties encountered in the implementation of the

project during this time of COVID-19 pandemic and institute measures/
strategies to ensure timely implementation of activities and maximize utilization
of funds within the year they were budgeted; and (c) fast track full
implementation of uncompleted activities and utilize the remaining project funds
for the intended purpose/s by end of CY 2021 to avoid its reversion.
DSWD a) Require FO-IX Management to issue an office memorandum to all Project
Development Officers including Regional Project Management Officers,
Regional Program Coordinators and Special Project Focal Persons reminding
them the importance of review of any project proposal ensuring correctness,
completeness and logical information on the project proposals;

b) Direct the CIS Head and SLP RPC to submit the original copy of (1)
Certification from JAPIC and (2) Endorsement from E-CLIP Committee to attest
the eligibility of the beneficiaries; and

c) Henceforth, require the Accountant to “review thoroughly” all documentation

supporting any claims against government funds to establish propriety and
validity of transactions.
NCIP a) Require the concerned employees/officers to submit the approved Activity
Design/Project Proposal, duly signed Abstract of Quotations and Supplemental
APP for FY 2019 for further evaluation;

b) Submit justification/ explanation why Competitive Bidding was not

implemented; and

c) Advise the BAC to adhere to RA 9184 in all procurement process.

OPAPP a) Utilize amount only within the budget

b) Submit the vouchers on time

PNP a) Require the Regional Accountant of PRO 5 to ensure completeness of required
documents before processing of all claims;

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 Agency Recommendations

b) Require the BAC Secretariat to comply with the required posting of the RFQ,
NOA, contract or PO, including NTP, in the PhilGEPS and of the concerned
procuring entity's websites pursuant to the pertinent provisions of the IRR of RA
9184;

c) Require the PRO BAR Management to prepare project activities or estimated

expenses indicating project objective and expected output and ensure to utilize
the funds in accordance with its intended purpose.
TESDA Provide legal authority/ basis for the fund transfers of ₱160,083,401.61 to ROs for
the implementation of EO No. 70, for this may be a ground for technical malversation
of public funds.

Yolanda Funds

13. In eight agencies and two SUCs, funds either remained unutilized or
disbursement undocumented due to delayed/non-submission of liquidation
reports and documents to support disbursements, hence, the funds cannot be
fully accounted.

No. Agency Audit Observation

NGAs
1 AFPGHQ Fund transfers to implementing agencies amounting to ₱0.68 million intended
for the Yolanda victims/beneficiaries remained unliquidated for more than two
years.
2 CHED Out of the total financial assistance of ₱168,880,000.00 received by CHED
from the President’s Social Fund, the same amount was subsequently
transferred to three CHED ROs, of which ₱135,215,000.00 (net) was
liquidated leaving an unliquidated balance of ₱33,665,000.00 at year-end.
The CHED-CO received additional funds sourced from the GAA in the total
amount of ₱540,540,000.00, of which ₱519,570,000.00 was transferred to four
CHEDROs. Of the total amount transferred to CHEDROs, only
₱491,715,000.00 was liquidated, leaving an unliquidated balance of
₱27,885,000.00 at year-end.
3 DA Non-submission of the original/ certified true copy of the original of the
official receipt and other documents to support the transfer to the IA of ₱0.39
million which is not in accordance with COA Circular No. 2012-001

4 DepEd Funds received by DepEd CO/OSEC intended as financial aid to Typhoon

Yolanda totaling ₱64,181,063.40, remained unutilized as of December 31,
2020, thereby defeating the very purpose of the donations and depriving the
supposed beneficiaries of the maximum benefits that they may have derived
from the financial assistance.

5 DOT As of CY 2020, the DOT and its implementing agencies were still not
compliant with the reporting guidelines relative to the receipt and utilization
of the NDRRMF as prescribed under Paragraph V.C of COA Circular No.
2014-002 dated April 15, 2014, hence, stakeholders, foreign and local donors
were not properly informed on the status of the ₱330,133,000.00 releases from
GAA-NDRRMF and cash donations of ₱7,861,411.56 received from the
Office of the President and various local and foreign tourism organizations.
6 NMIS Additional fund transfer amounting to P4.000 million under Yolanda
Rehabilitation Fund was released despite non-liquidation of the previous fund
transfer, resulted in accumulation of unliquidated PY fund transfers, contrary
to COA Circular Nos. 94-013 and 2007-001.

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 No. Agency Audit Observation
7 NM Out of the total funds of ₱13,099,849.98 received by the NMP from the US
Embassy for the Restoration of the Early 18th La Immaculada Concepcion
Church in Guiuan, Eastern Samar, ₱11,181,613.42 or 85.36% was utilized,
leaving a total of ₱1,918,236.56 or 14.64% unutilized balance which was
refunded on June 22, 2020. However, cash advances granted from CYs 2016
to 2018 to seven NMP employees totaling ₱264,349.95 remained unliquidated
for more than two years already.
8 OCD Out of the ₱42 million fund transfer to LMWD, the Implementing Agency,
sourced from Yolanda Funds, ₱24.64 million was already utilized but
remained unliquidated at year-end due to failure of the IA to submit liquidation
report. This resulted in an overstatement of the Due from GOCCs account and
the understatement of Expense/Accumulated Surplus account both by said
amount.
SUCs
1 CapSU – Regular expenditures amounting to ₱0.06 million were improperly charged to
Burias Yolanda Rehabilitation and Reconstruction Program of the DA RFO VI,
Campus contrary to Section 4(3) of PD No. 1445
2 WPU Out of the total amount of ₱1,232,305.00 disbursed for the procurement of
information and communication technology and office equipment, only an
equivalent amount of ₱49,650.00 and ₱223,010.00 were issued to Busuanga
and Culion campuses. The bulk of the procured items were distributed to
various campuses and offices of the University, thus defeating the purpose of
SARO No. Special Allotment Release Order-ROIVB-15-0021185 dated
November 26, 2015 amounting to ₱1,242,200.00 and depriving the faculties
and students of the Yolanda-hit campuses of the use of the laboratory
equipment and facilities for their operations.

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendations
AFPGHQ Require the PA to submit liquidation reports for the Yolanda Fund.
CHED Regularly monitor the utilization and liquidation of fund transfers and compliance
by the concerned CHEDROs with the reporting requirements.
DA Submit the original or certified true copy, signed by authorized personnel of the
documents supporting the transfer
DepEd a) Expedite the proper utilization of the remaining idle Yolanda funds for the
intended beneficiaries or purpose; and

b) Remit to the BTr the unutilized funds if there are no plans to use such donated
funds for the Typhoon Yolanda.
DOT a) Publish the updated information on NDRRMF in the DOT official website;
and

b) Comply immediately with the requirements of the PMS and monitor the
refund of disallowed financial assistance.
NMIS a) Monitor periodically the submission of liquidation reports and immediate
processing/recording of the liquidation and utilization of reports; and

b) Enforce the provision of MOA by demanding the LGUs, NGAs, and NGOs to
submit liquidation reports supported with complete documentation and refund
the unutilized fund, if any, before releasing additional funds
NM Demand from the AOs to expedite the submission of the LRs of their cash
advances, which have been overdue for more than two years already, for
appropriate accounting of the disbursements funded by the US Embassy. If not,
withhold their salaries pursuant to COA Circular No. 97-002 dated February 10,
1997.

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 Agency Recommendations

Regularly monitor the utilization and liquidation of fund transfers and compliance
by the concerned CHEDROs with the reporting requirements.
OCD a) Require the IA to submit liquidation report for funds already utilized to serve
as basis for recording in the books and to adjust the correct balances of affected
accounts;

b) Require the IA to furnish the OCD with copy of the NOA and the contract
documents;

c) Instruct the concerned OCD officials to conduct inspection to determine the

extent of accomplishment of the project; and

d) Provide timelines in the MOA of all future undertakings.

WPU a) Provide explanation on the (a) manner of distribution of the ICT and office
equipment procured out of the (\SARO-ROIVB-14-0006252, including
issuance of the items to other campuses and offices, aside from Culion and
Busuanga Campuses and (b) procurement of ICT equipment exceeding the
amount/allocation authorized in the SARO. Submit documents supporting
changes made from the purposes indicated therein;

b) Submit ARE/ICS for (i) one unit printer, (ii) one unit photocopying machine,
(iii) one-unit grasscutter and (iv) one-unit portable sealer;
(v) two units water dispenser, (vi) one unit pressure cooker and (vii) one unit
photocopying machine duly received by an accountable officer from Culion
Campus;

c) Submit justification why the Purchase Request No. 1140 for various ICT and
office equipment requested for Culion and Busuanga Campuses was not
signed by the Requesting Officer;

d) Henceforth, ensure that disbursements shall always be in accordance with the

purpose of the funds received. Should there be any changes, secure approval
from the source prior to disbursements, otherwise, unauthorized
disbursements will be disallowed in audit.

Marawi Funds

14. Funds of five agencies were either unliquidated or unutilized due to delayed
procurement process/ project implementation, hence, intended benefits were not
enjoyed.

No. Agency Audit Observation

1 AFPGHQ Fund transfers to IAs amounting to ₱3.66 million intended for the Marawi
victims/ beneficiaries remained unliquidated for more than two years.
2 DepEd Funds received by DepEd CO/OSEC intended as financial aid to Marawi Siege
victims totaling ₱11,683,110.00, remained unutilized as of December 31, 2020,
thereby defeating the very purpose of the donations and depriving the supposed
beneficiaries of the maximum benefits that they may have derived from the
financial assistance.
3 DOST The implementation of three projects for the rehabilitation of Marawi City and
Adjacent War Affected Communities in Lanao del Norte assisted by the DOST
10 for CYs 2018 to 2020 totaling ₱3,718,827.40 were delayed in violation of
Section 2 of PD No. 1445 and the MOA executed by and between DOST
Regional Office No. X and the proponents/beneficiaries.

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 No. Agency Audit Observation
4 DPWH Delayed/non-submission of three consultancy contracts totaling ₱6,586,442.60
contrary to Section 3.1.1 of COA Circular No. 2009-001 dated February 12,
2009.
5 NMIS The agency has not obligated the allotment received and has not disbursed the
cash received, amounting to ₱49,546,528.00 and ₱47,069,202.00, respectively,
due to failed bidding for the construction of the Marawi City Slaughterhouse
under Marawi Rehabilitation Program which resulted in the failure to maximize
the utilization of funds and deprived the beneficiaries of the MFO 2 - Meat
Industry Sector Developed Programs

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendations
AFPGHQ Require the Office of the Deputy Chief of Staff for Personnel, J1 to address the issues
that continue to restrict the disbursement of the remaining Marawi fund; otherwise,
require PA to return the same so that it can be deposited to the BTr.
DepEd a) Expedite the proper utilization of the remaining idle Marawi funds for the
intended beneficiaries or purpose; and

b) Remit to the BTr the unutilized funds if there are no plans to use such donated
funds for the Marawi Siege victims.
DOST a) Monitor and ensure that the implementation of the above project is in accordance
with the approved work plan as stated in the MOA; and

b) Provide the audit team with the required financial report to facilitate verification
of status of funds released for the project in accordance with the MOA.
DPWH Submit the required documents duly authenticated as exact copies of the original and
justifications on the noted deficiency on delayed submission of contracts.
NMIS Improve its procurement planning and management, e.g. the conduct of effective pre-
bid conferences and advance procurement activities, to ensure that there will be
qualified bidders, to maximize the utilization of allotment of funds.

15. Various agencies and SUCs were non-compliant with various accounting,
budgeting, and other prescribed rules, regulations and issuances affecting the
delivery of their respective services.

a. The Financial Statements of four NGAs and three SUCs were not restated

The Calendar Year 2019 corresponding figures presented in the CY 2020

Financial Statements were not restated to reflect prior years’ errors and
adjustments, which are not in compliance with Sections 43 (b) and 45, Chapter 19
of the Government Accounting Manual, Volume I (NAMRIA, PSHS, TESDA,
UNACOM, EARIST, PhilSCA and TUP)

Recommendations

The Auditors recommended the following courses of actions:

a) Comply with the retrospective application of the Prior Period Adjustments by

restating the 2019 Financial Statements as stated in the IPSAS 1 and 3 in
reference to Sections 42, 44 and 46, Chapter 19 of the GAM for NGAS,
Volume I;

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 b) Use the prescribed format provided in Section 45, Chapter 19 of the GAM for
NGAs, Volume I for proper procedures and disclosures of Retrospective
Restatement of Errors; and

c) Provide the supporting details of the prior period adjustments showing the
specific accounts affected and present them in the Notes to Financial
Statements.

b. A number of NGAs and SUCs were non-compliant with Accounting rules/

regulations/ issuances as presented below:

Agencies SUCs Total

Observation Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Accounting Reports without 1 N/A 1
supporting schedules
b) Circuitous transfer of funds 1 65.44 1 65.44
c) Distribution of financial 2 52.77 2 52.77
assistance to student-
beneficiaries through cash
advance instead of electronic
fund transfer
d) DVs and supporting 1 Not 1
documents were not stamped determined
"PAID" upon payment
e) Failure to implement the 1 N/A 1
Treasury Single Account
f) Figures in SCF, SCABAA 1 0.26 1 27.51 2 27.77
and Statement of Financial
Performance do not tally
g) Incomplete/insufficient 3 21.97 4 1,276.38 7 1,298.35
disclosures in the Notes to the
Financial Statements
h) Inexistent internal 7 90.63 1 N/A 8 90.63
controls/lapses in
implementation of internal
controls such as non-
observance of segregation of
duties and failure to review
transactions
i) Issuance of MDS checks 4 242.06 5 937.78 9 1,179.84
instead of using the LDDAP-
ADA under the Expanded
Modified Direct Payment
Scheme
j) Negative balance of 2 1,348.90 2 1,348.90
Subsidiary Ledgers for
different accounts
k) Non-compliance with the 1 0.02 1 0.02
procedures in the Receipt,
Inspection, Acceptance and
Recording of Deliveries of
Inventory Items
l) Non-maintenance of 4 N/A 3 1,103.29 7 1,103.29
accounting and/or property
reports/forms/ ledgers, such
as Index of Payments,
Subsidiary/General Ledgers,
Monthly Report of
Accountable Forms, Property
Acknowledgment Receipt

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 Agencies SUCs Total
Observation Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
m) Non-maintenance of separate 3 10.12 3 10.12
set of books contrary to Fund
Cluster Accounting
n) Non-observance of accrual 1 1.61 1 1.61
basis of accounting
o) Payments for procured items/ 5 71.4 9 4.26 14 75.66
supplies, wages/ salaries and
other benefits, trainings,
orientations, among others
through Cash Advance
instead of directly by MDS
check or LDDAP-ADA
p) Universal Account Code 2 34.66 2 34.66
Structure Object Code used is
not in consonance with COA
Circular No. 2020-001
q) Use of funding checks to 1 152.08 1 152.08
transfer funds to External
Campuses instead of Notice
of Transfer Allocation
r) Various misclassifications 1 3.33 1 3.33
and erroneous use of accounts

Recommendations
The Auditors recommended the following courses of actions:

a) Require the Accountant to prepare and maintain the required General and
Subsidiary Ledgers, to support the correctness and reliability of the accounts
presented in the Financial Statements;

b) Prepare and maintain other financial and accountability reports/documents

such as Index of Payments, Property Acknowledgment Receipt, Report of
Accountability for Accountable Forms strictly in accordance with the
Government Accounting Manual;

c) Fully implement the MDPS on the settlement of accounts to all internal and
external creditors and payees;

d) Refrain from paying procured goods and services on reimbursement basis

and/or through cash advance and strictly adhere to the requirements of RA
9184;

e) Observe proper segregation of duties and functions to ensure working internal

control;

f) Ensure that all disclosure requirements are included in the Notes to Financial
Statements, reconciliation of figures on the financial statements and Budget
and Financial Accountability Reports, negative and abnormal account
balances are reconciled and adjusted and all adjusting entries to correct noted
errors are drawn;

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 g) Directly transfer funds to the Implementing Agency for purposes of easier
monitoring and to establish accountability therefor; and

h) Strictly observe the rules and regulations on the implementation of the

Treasury Single Account and Expanded Modified Direct Payment Scheme,
Universal Account Code Structure

c. Budgeting rules/regulations/issuances were not strictly adhered as manifested

below:

Agencies SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Erroneous use of Account 3 4.33 5 172.46 8 176.79
Codes in Obligation Request
and Status/ non-
modification of Object of
Expenditure/ Erroneous
charging to different
allotment class or Object of
Expenditure/ Non-
compliance with the
prescribed percentage rate of
allocation and the limitation
on adjustment
b) Errors/discrepancies in the 6 305.58 1 4.83 7 310.41
amounts reported in the
Budget and Financial
Accountability Reports
c) Adjustments to obligations 1 Not 1 Not
without approved Notice of determined determined
Obligation Request and
Status Adjustment
d) Disbursements without 2 2.01 1 Not 3 2.01
approved Obligational determined
Request and Status or with
incomplete information/
details
e) Erroneous recognition of 1 5.83 1 5.83
returned fund from FY 2019
discontinued unobligated
allotment contrary to
National Budget Circular
No. 580
f) Non-maintenance/ 2 N/A 2 N/A 4 N/A
incomplete information in
the Registries for budget
monitoring
g) Unreconciled figures 4 162.20 1 Not 5 162.2
between the Financial determined
Statements and the Budget
and Financial
Accountability Reports

Recommendations

The Auditors recommended the following courses of actions:

a) Ensure that the Obligation Request Status (ORS) and Budget Utilization
Request and Status (BURS) are duly accomplished by requesting offices and

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 the Budget Officer indicating therein all required information in accordance
with the instructions embodied in the GAM;

b) Properly observe allocation for each line-item budget and charge only
appropriate obligations against each allotment class in accordance with the
appropriation law, related rules and regulations, and work and financial plan;

c) Accomplish correctly and submit within the timelines prescribed in relative

DBM Budget Circulars the Budget and Financial Accountability Reports and
Monthly Report of Disbursements;

d) Require the Budget Officer to prepare and maintain all the registries in the
format prescribed under the GAM; and

e) Strictly comply with relevant DBM Circulars on the obligation and

disbursement of government funds.

d. Laws/issuances pertaining to personnel were also not strictly adhered to as

presented below:

No. of No. of
Observation
NGAs SUCs
a) Designated heads of Offices and Accountable Officers not holding 3
permanent positions/ non-observance of qualification standards for
designated positions
b) Flexible work arrangement not in conformity with Sections 5 and 6, 1
Rule XVII of the Omnibus Rules Implementing Book V of Executive
Order No. 292, Chapter 5, Civil Service Commission (CC)
Memorandum Circular No. 19, s. 2005, and CSC MC No. 25, s. 2019
c) Hiring of COS personnel to perform functions which are part of the 3 1
agency’s existing regular employees’ job description
d) Inadequate control mechanisms in the granting of clearances to agency 2 1
personnel
e) Inadequate monitoring of leave balances and lack of timely 2
reconciliation
f) Management acts as the collecting agent of private institutions of 1
personal obligations of employees and Cost of Service/Job Order
personnel
g) Non-compliance with agency policy on maximum authorized salary 1
rate of personnel hired under Contract of Service
h) Non-observance of minimum monthly take-home pay 1
i) Non-observance of rules and regulations on Compensatory Overtime 3 3
Credits/ Compensatory Time-off/ deduction of tardiness and
undertimes/ Leave Credits
j) Non-submission of Updated Agency Personnel Profile (Plantilla of 2
Personnel)
k) Non-utilization of biometric systems for attendance monitoring and 3 1
other issues on attendance monitoring
l) Personnel hired under Contract of Service assumed and performed their 1
duties without duly approved contracts
m) Unfilled plantilla positions 1
n) Unjustified number of personnel hired under Contract of Service 1
o) Non-compliance with/violations of the 2017 Omnibus Rules on 2
Appointments and Other Human Resource Actions (Revised 2018)

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 Recommendations

The Auditors recommended the following courses of actions:

a) Strictly observe the rules and regulation on the filing of leave of absences,
overtime, compensatory overtime credit, compensatory time off, tardiness and
undertime, leave monetization, and payment of salaries;

b) Strictly monitor, check the completeness of filed application for leave and
enforce the provision regarding unauthorized leave of absence;

c) Fast-track the filling up of vacant plantilla positions to ensure prompt and

efficient delivery of services;

d) Submit current plantilla of personnel every year and furnish the Audit Team
copies of agency personnel movements (i.e. approved appointment/contract
of service of every newly hired, promoted as well as renewed contracts);

e) Monitor the hiring of COS and JO personnel; assess the agency’s existing
organization structure to determine such hiring; and ensure compliance with
CSC-COA-DBM Joint Circular No. 1 s. 2017;

f) Agency employees to register their daily attendance in the biometric machine

and logbook; and

g) Observe the qualification standards for positions.

e. Other non-compliance issues are discussed below:

Amount
No. Agency Observation
(Million ₱)
NGAs
1 BBS and BCS Non-submission of required weekly and monthly 14.80
progress reports and liquidation reports to the
PCOO for the Philippine Identification System
project.
2 CCC, ERC, Failure to establish a fully functioning Internal No amount
NAPOLCOM Audit Service/Unit
3 BJMP The total jail population of 115,336 as of
December 31, 2020 exceeded the total ideal
capacity of 34,893 with a variance of 80,443 or a
total average occupancy rate of 403 percent,
precluding the Agency in attaining its objectives
4 BOC Collections from cash bond for tentative release 276.32
of shipment were not dispensed within the
timeframe set forth under CMO No. 37-2001,
thus depriving the importers for the immediate
refund of their cash bond nor the government of
needed revenue to fund its projects. Moreover,
cash bonds were refunded without legal basis,
thus propriety of the disbursement is doubtful.
5 CFO Several operational procedures in the -
implementation of the Exchange Visitor Program
laid down in the EVP Resolution No. 01-2016

386
 Amount
No. Agency Observation
(Million ₱)
were not complied with due to weak internal
controls on the bill and collection of processing
fee and scholarship assistance, such as (a)
inconsistencies in accounting the receipt of
processing fees; (b) releases of No Objection
Statement or waiver without proper supporting
documents; and (c) absence of monitoring and
evaluation report preventing the transparency of
its transactions.
6 DHSUD Laxity in the accomplishment of approve driver’s 0.17
trip tickets before any trip is undertaken was
contrary to the certain provisions of COA
Circular No. 77-61 thus, casts doubt as to the
necessity of travel, reasonableness of fuel
consumed and propriety of the reported
expenses.
7 DOF Non-submission of the results of the review of -
the dividend remittances and of the requests for
dividend reliefs/ downward adjustments in
dividends, and absence of a database on such
review had precluded the determination of the
accuracy of the dividend remittance to the BTr
and the validity of/approval on non/ under-
remittances of dividends by the GOCCs which is
not in accordance with the pertinent provision of
RA No. 7656.
8 DOH The observed breakdown/inadequacy of internal N/A
control systems of some DOH OUs has exposed
governmental funds, properties and other
resources to risks of malversation, theft, wastage,
obsolescence and loss of government funds.
Inadequate storage area for COA Offices in DOH N/A
EV-CHD, TRC Dulag, Leyte and RMC
9 DOST In DOST CO, the winding down of the affairs of N/A
the defunct TRC has already exceeded the three-
year limitation, contrary to the provisions set
forth under Item 4.1 (b) of GCG Memorandum
Circular No. 2015-03 dated 08 April 2015.
10 DOTr-LTO The erroneous computation of the undelivered 46.82
license plates for the amended contract of the
Motor Vehicle License Plates Standardization
Program resulted in the overstatement of the
remaining requirements, thereby, exceeding the
original contract price by ₱46,824,310.00.
11 DOTr-OSEC Several deficiencies were noted in the Right-of- 291.68
Way acquisition such as: a) checks were drawn
in the name of the Attorney-in-Fact instead of the
landowners contrary to 14.3 Section 93 of PD
No. 1445; (b) payment of incidental expenses
totaling P23.184 million were paid by the DOTr
to the AIF rather than to the BIR or Office of the
Municipality of Tawi-Tawi contrary to Section 5
(c) of RA No. 10752; and (c) non-availment of
the services of Government Financial Institutions
and/or Independent Property Appraisers in ROW
acquisition contrary to Section 6.2 of the IRR of
RA No. 10752.

387
 Amount
No. Agency Observation
(Million ₱)
12 DSWD Access restriction on agency records which -
barred the Audit Team from performing its
auditorial duties
Out of the 4,760 beneficiaries with a total amount 45.56
of grant of P45.557 million, only 506 recipients
or P4.815 million worth of grants were encoded
in the SLP Offline Monitoring and Assessment
System
13 HSAC The HSAC failed to resolve 71 out of 180 -
Appealed cases within the 90-day period
incurring a delay ranging from 4 to 230 days,
contrary to Section 99 of the 2019 HLURB Rules
and Procedures.
14 LRA Non-submission of pertinent documents N/A
pertaining to the implementation of LTCP
project such as a) documents pertaining to
construction, repair, and improvement of existing
RODs offices; and b) documentary requirements
relative to the justification on causes of delays in
the implementation of the LTCP
The Build Own Operate (BOO) Agreement N/A
between LRA and Land Registration System,
Inc. (LARES) lacks transitory provision in case
of termination of the concession period and/or
the BOO Agreement. Likewise, no contingency
plan has been presented by LRA to ensure the
continuity of the Land Titling Computerization
Project (LTCP).
The validity of some Information Technology N/A
(IT) Service Fees being collected by LRA was
doubtful due to non-submission of document
evidencing approval from National Economic
Development Authority - Investment
Coordination Committee (NEDA-ICC) as
provided under Section 12.11 of the Revised IR
of RA No. 6957, as amended by RA No. 7718.
Lost accountable forms (JTFs and ORs) were not -
immediately circularized to RoDs nationwide
Payment securities totaling ₱12 Million were not 12.00
deposited to LRA Trust account, thereby
exposing LRA to losses due to client’s possible
failure to settle outstanding obligations in
connection with LRA Extension Office (EO)
Project
Unaccounted service concession assets and
liabilities pertaining to the implementation of the Undetermined
BOO agreement between the LARES and LRA
15 MMDA There were 416 vehicles that have not been 0.11
registered in CY 2020 due to failure to comply
with the Land Transportation Office inspection
pending repairs/rehabilitation of vehicles for
registration; and 30 vehicles that were issued to
end-users despite the registration of vehicles
under the name of the previous owners.
Moreover, late registration of vehicles resulted in
the incurrence of unnecessary penalties totaling
P110,917.00.

388
 Amount
No. Agency Observation
(Million ₱)
16 NAP The agency’s annual target of 15 government -
offices with approved/ updated Records
Disposition Schedule (RDS) is deemed too few
considering that 409 agencies still have no RDS
resulting in the absence of guidelines for the
retention and disposition of their substantive
record.
Absence of operational guidelines prevented the -
Inventory and Scheduling Section to conduct the
records management audit every five years,
which is not in accord with Section 29 of RA No.
9470 of 2007, resulting in non-determination of
the adherence by government agencies to
policies on records management.
The lack of concrete transfer and disposal plan in -
the Records Center Division resulted in the
accumulation of (a) permanent records that
should have been transferred to the Archives
Collection and Access Division for their
preservation, (b) records from abolished/defunct
agencies for re appraisal, and (c) records for
safekeeping and/or with referrals which could
not be disposed of.
17 NCCA Non-compliance with the conditions cited under 61.45
Section 4.5.3 of COA Circular No. 2007-001 - on
the incorporation of necessary Terms of
Reference in the MOA and Section 4.5.4 - on the
requirement for NGOs/POs to sustain equity
equivalent to 20 percent of total project cost,
manifested an inadequacy on the part of NCCA
to properly administer the funds intended to
assist NGOs/POs and to monitor the projects’
implementation, which eventually could lead to
loss of government funds. Likewise, the
perfection of a MOA during or after a project
implementation may likely result in the
inclusion, as part of project cost, of expenditures
and activities, which are not covered by the
contract.
18 NNC Motor vehicles were not marked "For Official -
Use Only" contrary to Item V (2) of COA
Circular No. 75-6 dated November 7, 1975
19 NTC A number of radio operators/dealers in ROs III, -
VI and VIII have expired licenses/permits as at
December 31, 2020, contrary to the provisions of
NTC’s Department Order No. 11 implementing
Republic Act No. 3846. On the other hand, the
expiration of issued certificates, permits and
licenses of NTC-RO IV cannot be timely and
properly monitored and identified due to the
absence of Database Management and
Monitoring system.
20 OGCC Out of 389 requests for opinion from various -
Government – Owned and Controlled
Corporations to be acted upon by the agency for
the year 2020, only 177 or 45.50 percent were
released within the time frame of 20 working
days leaving a balance of 212 or 54.50 percent of

389
 Amount
No. Agency Observation
(Million ₱)
“non-complying” which incurred delays ranging
from one to 262 days, contrary to Section 3 Rule
5 of OGCC Lawyer’s Manual.
21 PA Repair works on buildings and structures of the 7.36
51st EBde and Civil Military Operations
Regiment totaling P7,363,928.00 were pursued
and implemented during the effectivity of R.A.
No. 11469 or the “Bayanihan To Heal As One
Act” contrary to the economy measures required
under NBC No. 580.
22 PhilRaCom Several deficiencies were committed both by 3.75
PhilRaCom and the three Racing Clubs against
the MOA entered into by and between them, such
as: (a) PhilRaCom’s delay in the release of
checks representing additional prizes of
P20,480,573.95 to the Racing Clubs ranged from
2 to 29 working days; (b) the Racing Clubs’ delay
of 1 to 60 days in releasing said additional prizes
to the recipients; (c) the Racing Clubs failure to
submit after 10 working days the payroll showing
the total amount released to the proper recipients
with delays ranging from 4 to 133 days; (d) the
Racing Clubs’ release of P3,750,114.47
additional prizes to persons other than the proper
recipients.
23 PNP Undetected withdrawals from the total of 425.15
P425,148,635.68 pension benefits deposited to
the individual ATM accounts of 8,663 pensioners
under “tag and hold” status is not discounted due
to lack of status report from the LBP as to the
actual balance of their respective ATM accounts
(11.25 Item 7(a)(2) of SOP 2020-001 dated
February 3, 2020) and non- deletion of accounts
of 464 pensioners on “tag and hold” status for
more than six months which is not in keeping
with Item 7(c)(3) of SOP 2020-001
24 PS The registration of PS five firearms issued by the -
Firearms and Explosive Office, Civil Security
Group of the PNP had been expired since March
31, 2015, which is not in accordance with RA No.
10592, resulted in the revocation of the
registration of the firearms.
25 PSHS Failure to submit to the BTr the Monthly 0.52
Statement of Account for Trust Fund and
Utilization Report duly verified by the Auditor
contrary to the BTr Advisory to National
Government Agencies.
Failure to request for relief from property 0.08
accountability
26 PSRTI Issuance of Bill of Collections for seminars/ 0.36
trainings not yet conducted which is not in
accordance Section 7, Chapter 5, Volume I of
GAM for NGAs.
Subtotal - NGAs 1,186.02
SUCs
1 ASU, BU, Failure to request for relief from property 20.87
CLSU, CMU, accountability

390
 Amount
No. Agency Observation
(Million ₱)
CSU, DOSCST
and NVSU
2 CSPC and RSU Motor vehicles were not marked "For Official 11.78
Use Only" contrary to Item V (2) of COA
Circular No. 75-6 dated November 7, 1975
3 MPC, PUP, Failure to establish a fully functioning Internal
UA, VSU Audit Service/Unit
4 BiSCAST Various deficiencies were noted by the Regional 3.38
Technical Services Office in the initial technical
evaluation of the contract for the infrastructure
project, Construction of Motor pool and PPDMS
Building with a total contract cost of ₱3.38
million.
5 BSU The University Housing Committee failed to No amount
enforce the policy on the allowable tenure of stay
of several retirees in the housing unit, which is
three months from retirement; thus, depriving
qualified applicants of the housing privilege.
6 CSPC Buildings constructed and completed in CYs 139.16
2017 and 2019 in the total amount of ₱139.16
million were being utilized/occupied despite the
absence of the necessary Building and
Occupancy permits required under Sections 301
and 309, Chapter III of PD No. 1096.
7 DEBESMSCAT The Office of the Cashier is not adequately None
secured as windows thereof are not provided with
grills to properly safeguard the office from
unauthorized access by unscrupulous
individuals, thus, exposing government funds
and financial records/reports under her
accountability to the risk of loss thru theft and
other irregularities.
8 DNSC The College hostel, housing units, as well as the -
canal and drainage of the college campus, were
not properly maintained by the management and
the actual occupants contrary to Section 105(1)
of PD 1445 and Item 15 of the Policy, Rules and
Regulations Governing Faculty and Staff
Housing and Buildings of the DNSC, hence
resulting in the major damages to some parts of
the facilities and placing all the users to possible
risks of the same.
9 JRMSU System Infrastructure and non-infrastructure projects N/A
implemented were not fully compliant with the
appropriate project signboards and/or public
notices to be posted as required under COA
Circular No. 2013-004 dated January 30, 2013,
hence, notification, announcement and or
publicity to inform the public were not attained.
10 MSU Access restriction on agency records barred the -
Audit Team from performing its auditorial duties
11 SSCT Residential building and office structure owned -
by private individuals were constructed within
the SSCT, Malimono Campus premise without
legal ownership/authority or agreement with the
College to construct, operate and/or dwell within
the SSCT property contrary to Section 2 of P.D.
No. 1445 and Article 120 of the SSCT College

391
 Amount
No. Agency Observation
(Million ₱)
Code, depriving the School to enjoy the use of its
own property and exposing the same to risk of
legal disputes in the future, hence, interest of the
government property was not fully protected.
Subtotal – SUCs 175.19
Total 1,361.21

Recommendations

The Auditors recommended the following courses of actions:

Agency Recommendations
BBS and BCS Require the Head of the Production Unit and the Accountant to:

a) Prepare the weekly progress report, as required in the amended MOA

and submit the same so that issues/concerns could be immediately
addressed.

b) Ensure that the monthly liquidation reports are submitted immediately

in the succeeding month.
BOC Require the Valuation Classification Review Committee to:(a)expedite the
review of all cases with tentative release in accordance with CMO No. 37-
2001dated December 7, 2001;(b)determine posted cash bond with cases
which are already decided in favor of the government and with no appeal
from the importer within the prescribed period and transfer the
corresponding amount to the fund of the Bureau of the Treasury; (c)prepare
a monitoring schedule of cases filed as to their status and action taken for
CYs 2005 to 2015 and implement the necessary actions based on the results
of review; (d)conduct a regular review and monitoring of the cash bonds
and institute necessary actions for all delinquent consignee and thereafter
remit to the BTr the amounts due to the government; and (e) submit
documentation of the refunded cash bond totaling to P1.745 million to
support validity of claim.
CCC, ERC Comply with the rules and regulations on the creation/organization and
and implementation of an Internal Audit Service/Unit pursuant to RA No. 3456,
NAPOLCOM AO No. 278, s. 1992; AO No. 70 s. 2003 and related issuances

MPC, PUP,
UA and VSU
CFO a) Issue a reference number for each applicant upon receipt of application
as basis for the payment of $125.00 processing fee and forward to
Administrative and Finance Division as basis for recording.

b) Identify, in coordination with AFD, the cause of discrepancy on the

number of endorsements through alternative arrangement and reconcile
the variance of Enhancement Training Sponsorship Program
collections of P2,870.50 in CY 2017 and P79,570.80 in CY 2018.

c) Submit a complete set of copy of the supporting documents (i.e. annual

list of NOS applicants, proof of payment/s for each applicant, approved
project proposal, MOAs covering the two components of alternative
arrangement, applicant terminal report, written report by the
Monitoring Representatives, and a copy of NOS endorsement to
Philippine Embassy) to the Audit Team for timely evaluation and
analysis.

392
Agency Recommendations
d) Institute adequate internal controls on the billing and collection
processes to safeguard government funds against possible losses or
misappropriations.
DHSUD a) Instruct the OIC – Administrative and Finance Division to require all
concerned drivers to secure authority from the Head of the Agency or
duly authorized representative approved Driver’s Trip Tickets before
any trip.

b) Require the drivers to prepare the Monthly Report of Official Travels

summarized monthly, and furnish COA a copy of this Report.

c) Submit to COA a copy of the Monthly Report of Fuel Consumption

with complete details and Drivers’ Trip Tickets as attachments’ to DVs
covering the payments of Fuel, oil and lubricants expenses from
January to September 2020.

d) Instruct the Budget and Accounting Office to comply requirements on

complete documentation in the processing of FOL expenses.
DOF Require the Director, Corporate Affairs Group to: (a) make available to the
Audit Team the results of the review of the correctness of the computation
of the dividends declared and remitted by the GOCCs to BTr and the related
supporting documents to enable the assessment of its compliance with the
said review; (b) ensure that all GOCCs that are to declare and remit
dividends do so every dividend year in order to improve the revenue
generation of the NG; and (c) determine the validity of the non-declaration
and remittance of dividends by the GOCCs to the NG.

Direct the Director, CAG to: (a)coordinate with the BTr and request for a
report on dividends received to determine if dividends determined to be due
to the NG had been received and that any non-remittance of dividends are
valid and with the appropriate approval of the President of the Philippines
or his authorized representative; and (b) agree with the BTr on which office
will bill the GOCCs for non-/under-remittances of dividends; and (c)
provide the BTr with the results of CAG’s review of the dividend
remittances to provide the bases for verifying the correctness of dividends
received and for the setting up of dividend receivables from GOCCs in case
of shortfalls in remittances

Require the Director, CAG to: (a) provide the Audit Team with the results
of its evaluation of the requests for dividend reliefs/downward adjustments
in dividends and related supporting documents to enable the verification of
the validity and approval on non-/under-remittances of dividends; and (b)
establish a database on its review of dividend remittances and requests for
dividend relief/downward adjustments to facilitate verification of the
correctness of dividend remittances and/or approval of dividend
reliefs/downward adjustments in dividends.

Instruct the Director, CAG to provide the BTr the results of evaluation of
the requests for dividend reliefs/downward adjustments in dividends to
facilitate verification of the correctness of the dividends received from the
GOCCs.
DOH a) Continually enhance and conduct regular evaluation of internal control
systems strictly in accordance with the Property and Supply
Management System Manual, Annex A and B of DOH Administrative
Order No. 2013-0027 dated October 2, 2013, with respect to
management of personnel, premises, warehousing, storage, and
distribution of pharmaceuticals products, Government Accounting
Manual with respect to the documentation of hospital transactions and

393
 Agency Recommendations
COA Circular No. 2012-003 dated October 29, 2012 for the rules on
Fidelity Bond.

b) Direct the concerned OUs’ Management to prioritize the provision of

adequate storage facility through allocation of sufficient budgetary
requirements thereof.

c) Direct the Legal Service to conduct a thorough investigation on the

incident that happened and impose sanctions to responsible
officials/employees when warranted; and

d) Remind the RMC Management to henceforth, refrain from the

unauthorized transfer of records under COA custody and secure proper
authority/permission when the need to transfer the same arises.
DOST Confer with the Governance Commission for GOCCs the actions to be taken
by the DOST in the winding down of TRC operations, which could not be
completed within a period of three years.
DOTr-LTO Consider amending the schedule of requirements to correct the computation
of the remaining deliverables so as not to exceed from the original contract
price of P3.186 billion.
DOTr-OSEC a) Refrain from allowing AIF as payee of the checks representing
payment of the ROW claims so as not to expose the Department to the
risk of possible adverse claims to the disadvantage of the government;

b) Submit proof and/or any document showing that the SPA was
registered with the Registry of Deeds of the province or city where the
land lies pursuant to Section 64 of PD No. 1529;

c) Strictly adhere to Section 5 of RA No. 10752, in any case, incidental

expenses such as CGT, DST, transfer tax and registration fees must be
paid by the IA/DOTr directly to the BIR or Office of the LGU where
the land lies;

d) Closely coordinate with the AIF to follow-up the status of the transfer
of the three lots that remained not transferred in the name of the
Republic of the Philippines; and

e) Comply with Section 6.2 of the IRR of the RA No. 10752 to ensure that
appropriate price offer is obtained for its ROW acquisition.
DSWD a) Require the immediate submission of liquidations reports, other
supporting documents and database.

b) Provide sufficient access to the SLP Offline Monitoring and

Assessment System such as: (i) additional laptops/computers; and (ii)
arrange schedules in the use of laptops/computers if funds are limited
or not available for capital outlay; and

c) Hire job orders specifically to encode the submitted monitoring reports.

ERC Fully operationalize the IAD by:

a) approving its Internal Audit Charter; and

b) requiring the IAD to establish Internal Audit policies and procedures

prescribed under the IASPPS, to assist the ERC in promoting
compliance, efficiency, and effectiveness of its operations.
HSAC a) Enforce compliance of the Board of Commissioners with the guidelines
set forth under Section 99 of the 2019 HLURB Rules and Procedures
in the next and coming years to improve agency’s compliance of its
mandate; and

394
Agency Recommendations

b) closely monitor and instruct other capable personnel in the

Administrative Office to assist the Human Resource Section to
expedite the filling up of vacant positions to complement the existing
workforce to achieve the agency’s expected output.
LRA a) Submit to the Office of the Auditor (i) pertinent documentary
requirements on the construction, repair and improvement of Registry
of Deeds offices including variations to original proposals as
enumerated in Annexes A to C of COA Circular 2009-001 for the
conduct of technical review; and (ii) requests for Suspension of Work
and relevant supporting documents, Suspension of Work Order, and
Resume to Work Order or any other supporting documents or series of
exchanges of communications to justify the delay which consequently
suspend the running of time in the implementation of the LTCP
pursuant to Sections 15.01 and 15.03, Article 15 of the BOO Agreement

b) revisit the BOO Agreement taking into consideration the provision

pertaining to the transition process in case of completion of the
concession period and/or the BOO Agreement;

c) provide a definite contingency and continuity plan in case of

completion of the concession period in order not to disrupt the services
to the public;

d) consider acting now and work on additional skilled ICT personnel

complement under the LRA Information and Communication
Technology Division with the DBM to handle and man vacated
positions of LARES, Inc. personnel to run the system upon the
completion of the concession period; and

e) simultaneously coordinate with the DICT, the government arm in

information and communications technology, for possible
measures/assistance that can be provided/extended to bridge the gap
and ensure the capability of the Agency in the transition period and
handling the systems to confidently continue the LTCP even after the
end of the concession period without need of extension.

f) Issue immediately a Memorandum Circular for the two instances of lost

accountable forms; and

g) Require the concerned AO to immediately report loss of accountable

forms duly supported with documentary requirements to facilitate
issuance of the circular for the loss of accountable forms.

h) Revisit par. 6 of the MOAs and amend the same requiring all
contracting parties/entities-banks of LRA Extension Office to issue
Manager’s Check in favor of LRA to guaranty settlement of obligations
and deposit the same in the trust account of LRA.

i) instruct the Director, Finance Service and the Chief Accountant to

account and record in the books the total value of constructed buildings
and improvements and other deliverables by virtue of Certificate of
Acceptance of IT Facilities, and provide appropriate disclosures in the
Notes to Financial Statements in compliance with IPSAS 32 and
Sections 2(d) and 3(a), Chapter 14, GAM, Volume I.

j) submit pertinent documentary requirements on the construction, repair

and improvement of RoD Offices located in Ozamis City,
Butuan/Agusan del Norte and Batac, Ilocos Norte which LARES took

395
 Agency Recommendations
over including variations to the original proposals for the conduct of
technical review.
MMDA a) ensure that all MMDA-owned motor vehicles are promptly registered
with LTO as government vehicles under the name of the MMDA; and

b) require the Transport Division to (i) renew the registration of all

serviceable motor vehicles within the period prescribed to avoid
incurrence of penalties; and (ii) provide the detailed information per
vehicle as to the reasons/causes of non-renewal/non-registration of 416
MMDA vehicles with the LTO.
NAP Require the Chief, Records Management and Services Division to continue
making representation with the heads of government agencies with no RDS
and to set a considerable increment of yearly target of agencies.
Create an audit committee to formulate the operational guidelines for the
records management audit that shall be conducted by the Inspection and
Scheduling Section.
NAPOLCOM Direct the IAS to (i) comply with their duties and responsibilities as
provided in Item Nos. III and VI of GO No. 2020-001 dated February 10,
2020 pursuant to PGIAM; and (ii) facilitate the complete establishment of
the organizational structure of the IAS by filling up the positions thru
expediting the proposed plantilla as indicated in Item No. V of GO No.
2020-001 in order to perform its functions properly and attain its set goals
and objectives.
NCCA a) Advise the Accreditation and Grants Processing Section to strictly
comply with the provisions of Sections 4.5.3 and 4.5.4 of COA Circular
No. 2007-001.

b) Advise the MANCOM to ensure that the project duration and

implementation embodied in the MOA are dated after the contracts are
perfected.
NTC a) require its concerned officers to determine the status and conditions of
the operations of the operators with expired licenses and permits in
order to enforce its renewal and collection of appropriate fees, fines and
penalties; and

b) create a Database Management and Monitoring System to monitor

expiration of the issued permits, certificates and licenses, and would
prompt the conduct of inspection and enforcement of renewal utilizing
the available manpower until additional positions are installed.
OGCC Ensure adherence to the R2R 20 working day cycle pursuant to the OGCC
Rules and Regulations. Consider upgrading of the application/system use in
the General Logbook by including fields that can accommodate all activities
while in the possession of the assigned team so as to monitor the status of
each request for opinion at any given time.
PS Instruct the OIC-Chief of GSD to deliver the five PS firearms and 48 pieces
of ammunitions to the Firearms and Explosive Office of the PNP for their
proper disposition.
PSHS Require the Accountant to regularly submit to the BTr the Monthly SOA and
UR, with validation of the Auditor
PSRTI Direct the Accountant to issue the BC only to participants or agencies whose
participants had already attended the seminars/trainings and to support the
same in the recognition of receivables and income in the books.
Instruct the Chief, TD to: (a) prepare the BCs for seminars/trainings
conducted and rental of training facilities and forward the same to the
Accountant for the indication of the serial number and the Accountant’s
signature; and (b) observe proper safekeeping or maintenance of the BCs to
preclude their loss and for reference in subsequent issuances.

Also, Management agreed to require the Accountant and personnel of each

396
 Agency Recommendations
division involved in the preparation of the BC to indicate the fund for which
the payment is due for proper identification of the fund to which deposit
should be made.

Further, Management require the Accountant to: (a) indicate in the BCs the
serial number, sign the same and furnish the TD and Cashier a copy of the
BCs for reference and monitoring purposes; and (b) maintain copies of the
BCs for reference and as supporting documents in the recognition of
receivables and income.
UA Make representations with oversight bodies like the Department of Budget
and Management and the Civil Service Commission for the installation of
the Internal Audit Service/Unit within the organizational structure of the
University.
ASU a) Require the filing of requests for relief from accountability of
accountable officers within 30 days from the date of the incident as
required in Section 73 of P.D. No. 1445;

b) Require submission of complete documentary requirements pursuant to

COA Memorandum No. 92-751 in order for the Commission to make
timely audit action; and

c) Issue clearance for money and property to the accountable officer only
after the resolution of the request from accountability.
BiSCAST Submit the aforementioned required documents, clarifications, and
justification. All documents that will be submitted shall be certified as exact
copies of the original and as part of the contract.
BSU a) Instruct the UHC to immediately coordinate with the Legal Office to
pursue the filing of eviction case, if necessary, on overstaying and
defiant retirees including the non-BSU employee, to remove any
partiality or bias in the grant of housing privilege;

b) Direct the UHC to set deadline for the overstaying occupants to vacate
the units. For the extended stay, impose/collect rental fees with
surcharges or penalty, if warranted, reckoning from date of expiry of
the three month allowable extension until eviction based on rental rates
currently being charged in the vicinity of similar type of facility; and

c) Require the UHC to be firm in strictly enforcing the guidelines of the

housing policy specifically Section V (15) of its IRR. Likewise, stop
acceding to “special” request for additional extension beyond the
allowable tenure to stay, to give fair chance to all qualified applicants
avail of the housing privilege.
BU a) Instruct the Supply and Property Management official to determine
based on records the campus officials accountable to the lost properties;

b) Remind the AO to file his/her application for relief from property

accountability to the COA in accordance with Section 73 (1) of the PD
No. 1445 and Sections 498 and 499, Volume I of GAAM, duly
supported with the required documents and explanation for the delay in
filing; and

c) Require the BUTC Dean to provide a written explanation why the

official records and documents in the custody of COA were damaged
by fire considering that the fire did not reach the COA BUTC Office
and how come the steel cabinets where said documents were
stored/kept are already being used by the Accounting Office.
ASU, BU, a) Require the concerned accountable officer to submit the required
CLSU, CMU, request for relief from property accountability with complete
CSU, supporting documents;

397
 Agency Recommendations
DOSCST and
NVSU b) Ensure that immediate notification is served to the Audit Team in case
of subsequent losses of property caused by fire, theft, or other casualty
or force majeure; and

c) Cause the submission of the required application for relief from

accountability within the prescribed period of 30 days; otherwise, no
credit for the loss shall be granted to the accountable officer concerned.
CSPC a) Immediately follow up the building permits and thereafter secure the
occupancy permits of the completed constructed building to ensure
their conformity to safety and other standard requirements; and

b) Strictly comply with the Building Code requirements by securing

building permits prior to commencing the construction of buildings and
structures.
CSPC, RSU Observe the rules and regulations on the proper marking of all government
and NNC motor vehicles with “FOR OFFICIAL USE ONLY” in three inches size and
a corresponding name of the College on both sides of the vehicle pursuant
to COA Circular No.77-61.
DEBESMSCAT Provide adequate safety measures by installing grilled windows at the
Office of the Cashier to safeguard government funds and other
accountabilities being kept at the Office, as required under Sec. 52 of the
GAAM, Volume III.
DNSC a) Require the Housing Committee to propose/introduce some necessary
improvements/measures in the hostel and housing areas in order to have
pleasing and clean places to visit and live for;

b) Require the Housing Committee to closely monitor and regularly check

if the role of both parties as stipulated in the MOA are being complied
with and a written report shall be submitted to the management for
proper action;

c) To come up with a comprehensive plan for major repairs including

repainting of roofing of all the subject buildings and housing units; and

d) Prioritize the cleaning up of drainage and canals of the entire college

campus for a clean and safe school environment.
JRMSU a) Coordination must be established between the Bids and Awards
System Committee, Project Engineer, Budget Office and Administrative Office
regarding the preparation of report on the PPAs implemented and to be
implemented by the Campus;

b) Submission should be made at the beginning of the year as well as

timely updating of PPA reports should be done if there are corrections,
revisions or changes to the projects to be implemented for validation
and monitoring; and

c) Compliance with the publication requirements as to the display of

project signboards should be implemented both infrastructure and non
– infrastructure PPA’s of the Main Campus.
MSU Instruct the Director of Information and Communications Technology
Center to grant the Audit Team an access to their Information System.
SSCT Take appropriate action by sending a letter to the concerned illegal settlers
to formally inform them of the school’s ownership over the estate and to
request from the latter documents as proof of ownership over the land they
are occupying and/or agreement/authority from the School to construct,
operate and/or dwell therein. Moreover, expedite the request for
intervention from the OSG through a letter asking legal remedies to address
the matter.

398
16. Procurement in a number of government agencies were not compliant with RA
No. 9184 and its Revised IRR, defeating the purpose of transparency,
completeness and accountability in the procurement process:

No. of Amount
Observation
Agencies/SUCs (Million ₱)
a) Procurement of goods/ services/ equipment/ major repairs 30 522.21
without public bidding/ meeting the requirements for
alternative mode of procurement
b) Procurement of items not included in the Annual Procurement 15 40.55
Plan (APP)
c) Undocumented/ inadequately documented procurement 55 8,701.32
d) Delayed or long procurement process inconsistent with GPPB 20 997.59
Manual
e) Bidders not meeting eligibility requirements or inadequate 16 353.72
post-qualification procedures
f) Non-compliance with warranty requirements 15 181.85
g) Mobilization fee issued without bond/bank guarantee 7 989.82
h) Splitting of transactions or non-consolidation of transactions 3 65.91
i) Failure to withhold retention money for infra projects or 8 7.10
erroneous deduction
j) Unsupported Variation Orders 7 323.40
k) Non-compliance with posting requirements 16 4,887.90
l) Common Use Office Supplies not procured from PS DBM 6 8.74
2 Not
m) Non-preparation of Annual Procurement Plan quantified
n) Delayed delivery and non-imposition of liquidated damages 30 3,943.82
o) Contracts not awarded to the lowest bidder without valid 2 Not
justification quantified
p) Non-preparation and submission of Procurement Monitoring 3 Not
Report quantified
q) Approval of payment by BAC Chairman/Members/TWG 2 0.82
r) Award of contract beyond the approved budget 1 1.75
s) Delivered items not compliant with technical requirements 1 0.10
t) Failure to create a Design and Build Committee to assist the 1 Not
BAC and the TWG in the evaluation of the technical proposals quantified
u) Failure to invite observers during the bidding process 4 6.41
v) Falsified requests for quotation 1 6.76
w) Inclusion of equipment in Program of Work for Infrastructure 3 57.10
projects resulting in overvaluation of the ABC
1 Not
x) Irregular preparation of Statement of Work Accomplished quantified
y) Lapses in preparation, approval and/or enforcement of 3 17.82
Construction Safety and Health Program (CSHP)
z) Lapses in preparation and issuance of PO and IAR 6 25.77
aa) Materials used in the implementation of Infrastructure Projects 2 97.08
not subjected to test analysis
bb) Non-adherence to RA 9184 in the delivery of Consultancy 1 1.38
Services
cc) Non-compliance with various provisions of RA 9184 in the 1
procurement process 43,755.50
dd) Non-disclosure of contribution of each member of the Joint 1 Not
Venture in the Joint Venture Agreement quantified
1 Not
ee) Opening of bids in the absence of a quorum quantified

399
 No. of Amount
Observation
Agencies/SUCs (Million ₱)
ff) Original copies of bids documents received and opened were 1 Not
not initialed on every page by the Bids and Award Committee quantified
(BAC) members who were present during the opening of bids
gg) Overestimated ABC 1 357.91
hh) Overpayment due to increase in rental rates 1 0.23
ii) Payment even with insufficient work accomplished contrary to 1 Not
Philippine Bidding Documents quantified
jj) Reference to brand names 3 5.59
kk) Repair and Renovation Projects with scopes of work 1 23.78
categorized as Construction
ll) Requests for time extension not supported with proper 5 72.67
documents or irregularly granted
mm) Supplier's invoice/ delivery receipt without date of receipt, 1 4.64
hence, liquidated damages cannot be determined
nn) Unrefunded retention money even after the lapse of warranty 1 70.49
period or issuance of Certificate of Acceptance
oo) Unsigned and/or undated conforme in the PO precluding the 2 Not
determination of liquidated damages quantified
pp) Violation of prohibition on advance payment 2 0.63

Recommendations

The Auditors recommended that concerned officials:

a) Require the BAC to comply strictly with the provisions of Section 10 of the
Revised IRR of RA No. 9184 and Item 11 of GPPB Resolution No. 05-2018
regarding the preparation of the APP; instruct the respective BAC to immediately
conduct public bidding, or direct contracting, if applicable; comply with the
procedures prescribed under Annex H on the consolidated guidelines for the
alternative methods of procurement of the RA No. 9184; comply with Section
54.3 of the Revised IRR of RA No. 9184 and direct the BAC Secretariat to submit
explanation/s for the non-posting of NOA; undertake future purchases of
common-use supplies, materials and equipment in bulk quantities through public
bidding or through the PS-DBM in order to minimize additional costs incurred,
and obtain prices most advantageous on the part of the University; stop the
practice of paying through Cash on Delivery scheme and make sure that only valid
and legal accounts payable for which goods/ services/ projects have been
delivered/ rendered/ completed and accepted, shall be considered for payment;

b) BAC be strict in requiring all their suppliers/contractors to submit their current

and updated PhilGEPs Registration Number, Business Permit and Omnibus
Sworn Statement to conform to the requirements of the Revised IRR of RA No.
9184; submit lacking documents as required by Annex “H” Appendix A of the
2016 Revised IRR of RA No. 9184; submit to the Audit Team the copy of
contracts/POs and all supporting documents within five days from date of
perfection or conformity by the supplier pursuant to COA Circular No. 2009-001
dated 12 February 2009;

c) Comply with the requisite posting in the PhilGEPS website and in the premises
(conspicuous place) if the alternative mode of procurement e.g. shopping and
small value procurement is resorted to; verify and validate the completeness of

400
 supporting documents in accordance with Section 4(6) of PD 1445 and strict
compliance with the procurement law and policies on disbursements, inspection
and acceptance and release of goods/properties of the agency; ensure that the
bidding documents shall conform to the standard Philippine Bidding Documents
prescribed by the GPPB;

d) Procurement Unit to work closely with the PS-DBM for the immediate delivery
of already paid needed supplies, materials, equipment and other services; set
timelines on the procurement process of BAC to prevent delay in the award of
contract, avoid waste of resources, and disruption of the APP; demand the
immediate delivery of procured/requisitioned items and revisit/amend the MOA
to indicate specific timelines for delivery of procured/requisitioned items; ensure
that in succeeding procurements, the basis for establishing the definite delivery
dates are not overlooked in order to enable them to monitor timely delivery of
items being procured and to claim equitable compensation if delays are incurred
by the suppliers;

e) BAC-TWG to include in their post-qualification the comparative evaluation and

reasonableness as to the number of projects the equipment are pledged and key
personnel assigned by the same lowest calculated bidder for different projects
with simultaneous or overlapping implementation; provide clear stipulation/s in
its bidding documents particularly in the Bid Data Sheet of its intended
condition/s as requirement from the bidders if said conditions are to be made basis
for the post-qualification; carefully determine the capacity of bidders to undertake
and complete infrastructure projects without delay by scrutinizing the sufficiency
of the contractor's manpower and equipment on all contracts to be awarded;

f) Review and scrutinize the terms and conditions of the warranty securities being
posted by the contractors whether they conform to Sections 62.2.3.3 and 62.2.3.4
of the Revised IRR of RA No. 9184 and Section 9.1.1.4 of COA Circular No.
2012-001; strictly monitor the projects whether they are bonded and require all
the contractors to post their bonds in accordance with the provisions of the
Revised IRR of RA No. 9184;

g) Adhere to COA Circular No. 76-41, Sections 48.2 and 54.1 of the Revised IRR
of RA No. 9184 on the general policy on competitive bidding and prohibition on
splitting of contracts;

h) Ensure the retention of 10 percent of progress billing until 50 percent completion

of the work unless irrevocable standby letters of credit from a commercial bank,
bank guarantees or surety bonds callable on demand is submitted in lieu of the
retention; blacklist the defaulting contractor in compliance with Section 4.2, f(i),
Annex A of GPBB Resolution No. 40-2017, implementing Section 69.4 of the
Revised IRR, RA No. 9184;

i) Impose 10 percent liquidated damage to suppliers and strictly adhere to the

provisions of Section 68 of Revised IRR of RA No. 9184 and Article VII of the
contracts without further delay to protect the interest of the government; submit
justifications/explanations noted on non-imposition of liquidated damages for
evaluation and audit action, issuance of Notice of Disallowance, if warranted;

401
 j) Ensure that specifications for the procurement of goods/supplies be based on its
relevant characteristics and/or performance requirements without specifying its
brand name;

k) Prepare and submit to the GPPB the PMR within the time frame as stipulated in
Section 12.2 of the Revised IRR of RA No. 9184 so that monitoring and
evaluation of the agency’s compliance to the provisions of the Procurement
Reform Act can be made; submit and post the approved APP to the GPPB and
PhilGEPS websites in the prescribed formats within 14 calendar days after the
end of every semester and copy of APP on or before the end of January of the
budget year, in accordance with EO No. 662, series of 2007, as amended;

l) Post in the PhilGEPS website the Advertisements/Notices of Bids as well as the

Notices of Award/Contracts/POs as required;

m) Prepare and submit documentation on the creation of the pool of relevant

technical, financial, legal experts, professional organization and non-
governmental organization to facilitate the selection and evaluation of group from
which the TWG will be selected, and Observers will be invited for specific
procurements, in compliance with the requirement of RA No. 9184 and the 2016
Revised IRR;

n) Invite Observers at least five calendar days before the date of procurement
stage/activity as provided under Section 13.3 of the Revised IRR of RA No. 9184;
and, secure proof of receipt of the written invitations by the concerned Observers;

o) Submit adequately documented and approved Variation Orders, when warranted;

ensure at all times that the submitted detailed estimates of the contractors are in
accordance with the approved program of works; strictly follow the guidelines on
Annex E of Revised IRR of RA No. 9184 on the process of preparing Variation
Orders if such variation is necessary to the project’s completeness; and conduct
adequate detailed engineering to minimize the issuance of Variation Orders;

p) Require the BAC to compel the concerned contractors of the aforementioned

projects to submit immediately the CSHP. Henceforth, ensure that all approved
contracts for projects implemented are supported with a DOLE-approved
Construction Safety and Health Program pursuant to Section 37.2.3 of the Revised
IRR of RA No. 9184; and

q) Submit the contracts together with the supporting documents to the Audit Team
within five working days from the execution of the contracts as prescribed by
COA Circular Nos. 2012-001 dated June 14, 2012 and 2009-001 dated February
1, 2009.

7.5 Consolidated Common Audit Observations Affecting the Fair Presentation of

Financial Statements for Calendar Year 2020 of NGAs as discussed in the Annual
Audit Reports

A. CASH

402
Cash account balances in a number of agencies are unreliable/doubtful due to
reported cash shortage/failure to deposit collections, unrecorded collections and
disbursements, erroneous recording, unaccounted/unreconciled variances and
unrecorded reconciling items, among others; hence, exposing government funds
to possible misappropriation, misuse and losses.

Audit of the cash accounts disclosed the following conditions, in material amounts:

Agencies SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Cash shortages caused by non- 3 48.51 2 0.14 5 48.65
restitution of AOs and other
weaknesses in internal control.
b) Failure to deposit collections intact 20 123.09 8 4.75 28 127.84
the next working day, non-deposit
to authorized government
depository bank, and collections
remaining outstanding for more
than five years by identified 119 and
10 AOs in 20 agencies and 8 SUCs,
respectively, increased the risks of
misappropriation or loss of
government funds
c) Unrecorded/delayed recording of 43 18,980.52 30 1,528.24 73 20,508.76
bank accounts/ deposits/ check
disbursements/ refunds/ fund
transfers/ reconciling items and
other transactions
d) Unreconciled, negative, dormant 41 182,250.70 20 629.44 61 182,880.14
and unaccounted balances and
existence of closed bank accounts
e) Erroneous/ misclassified/ incorrect 19 2,315.64 9 497.53 28 2,813.17
recording of cash transactions;
transactions recorded twice;
balances of lapsed NCAs not closed
f) Deficiencies in Petty Cash Fund 23 12.41 12 9.30 35 21.71
(grant of excessive PCF, payments
of expenses other than petty
operating expenses or in amounts
exceeding ₱15,000.00, non-
preparation of PC Vouchers, non-
maintenance of appropriate records
and registries, non-replenishment of
PCF, as needed or when
disbursements reached 75 percent,
among others)
g) Non-compliance with fidelity bond 29 11.29 18 20.71 47 32.00
provisions under BTr and COA
issuances
h) Deficiencies in handling official 15 766.14 6 3.32 21 769.46
receipts such as frequent
cancellation, use of ORs not for the
funds for which it was intended,
advanced dating, not duly
accomplished ORs, non-issuance of
ORs for collections, among others.
i) Non-cancellation of stale 30 174.59 16 102.36 46 276.95
checks/unreleased checks not
restored to Cash account; signed
blank checks; dishonored checks;

403
 Agencies SUCs Total
Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
non-disposal of unused obsolete
checks
j) Non-preparation/non-submission of 13 542.29 35 3,238.64 48 3,780.93
cash reports/records/registries/SLs;
un-updated cashbook/CDR; non-
compliance with report format, etc.
k) No proper turn-over of cash 17 59.46 10 0.42 27 59.88
accountability from AOs; CAs
granted to personnel without official
designation; CAs transferred or
handled by different employee/AO;
Non-segregation of duties;
Collecting officers not properly
designated
l) Cash - Treasury Agency Deposit, 2 3.32 2 3.32
Regular not closed to Accumulated
Surplus/(Deficit)
m) Inclusion of fund transfers received 1 8.51 1 8.51
to the Revolving Fund
n) Maintenance of bank account with a 1 148.40 1 0.76 2 149.16
non-AGDB and deposit of bail
bonds and miscellaneous
receivables with LGU Treasurers
instead of AGDBs
o) Non-existent internal controls/ 5 166.87 5 0.34 10 167.21
internal control breakdowns such as
no review mechanisms, no check-
and-balance, non-maintenance of
safe/vault of AOs
p) Unverified/ undocumented bank 1 122.90 1 122.90
debit/credit memoranda
q) Unidentified Special Collecting 1 942.23 1 942.23
Officers accountable for
undeposited collections

Recommendations

The Auditors recommended that the Accountant/other concerned officials:

a) Prepare the necessary adjusting journal entries to correct errors/omissions and

improper recording of transactions, as well as the misclassification of accounts
and negative balances; and henceforth, observe the proper recording of accounts
and transactions in accordance with the GAM and other existing accounting rules
and regulations; restitute the missing funds and submit explanation why the
shortage occurred; and ensure that all collections are deposited intact the
following working day. Moreover, follow strictly the period prescribed under
Section 5.1.1 of COA Circular No. 97-002 and Section 15 of the GAM pertaining
to the liquidation of cash advances for payroll;

b) Analyze the dormant/non-moving/closed accounts and make necessary

adjustments in the books of accounts to reflect the correct balances of the account;

c) Send a confirmation letter verifying the deposits and/or remittances to BTr at least
twice a year to avoid discrepancies in record keeping; and continue

404
 communicating with BTr to resolve the any unverified deposits of collections to
its savings account and to monitor its progress;

d) Submit the necessary documents/evidence to support the validity and regularity

of the disbursement made charged against cash advances intended as operational
fund of the ROs and; to remit the excess balance to the BTr;

e) Create a task force, to be headed by the Chief Accountant to cleanse the books of
accounts of the Agencies;

f) Establish the identity of the Special Collecting Officers accountable for the
undeposited collections, demand remittance of the funds and maintain subsidiary
ledgers for each SCO in the eNGAS to facilitate the recording and monitoring of
cash accountability of every SCO. Record collections and disbursements through
the use of Cash Receipts Record and Cash Disbursements Record or Petty Cash
Fund Record, respectively. Ensure that all outstanding accountabilities based on
accurate SL balances are fully settled prior to the issuance of clearances to retiring
or any outgoing accountable officer. Strictly adhere to the provisions of Section
69 of PD No. 1445 and Appendix 26 of the GAM on the proper handling and
custody of collections in order to safeguard government funds from possible
misuse or misapplication thereof;

g) Officially designate a PCF Custodian and SDOs who can function as one and
direct the assigned Accountable Officer to maintain the prescribed cashbook for
the recording of all valid transactions out of the PCF and special disbursements.
Regularly submit report of disbursements and replenish petty cash when
disbursements reach at least 75 percent. Strictly limit the transactions through
PCF to allowable amount of ₱15,000.00 per disbursement. Strictly heed the
provisions on the grant and utilization of cash advances prescribed in Chapter 6,
Volume I of the GAM, and the COA Circular 97-002. Adopt the prescribed
controls and procedures in the maintenance and recording of PCF under pertinent
sections of the GAM, COA Circular No. 2012-001 dated June 14, 2012, amended
by COA Circular No. 2013-001 dated January 10, 2013, Section 2 and 4 of PD
No. 1445;

h) Secure fidelity bond for each AO before any cash advance be granted to them in
compliance to Section 101(2) of the PD No. 1445 and Section 4.1 of Treasury
Circular No. 02-2009. See to it that the fidelity bonds of all AOs are up to date to
avoid their expiration and it covers the maximum cash accountability of each AO.
Ensure recovery of losses arising from cash shortage;

i) Observe proper issuance of accountable forms and exercise due diligence in the
discharge of collection functions especially in the issuance of ORs to avoid errors
and preclude doubts on the authenticity and accuracy of the reported
collections/receipts;
j) Revert the stale checks back to its proper bank account and record regularly the
cancellation of any stale checks; abide by the provisions of GAM, particularly
Section 56, Chapter 9 - Financial Reporting for the fair presentation of the Cash
– MDS account in the FS; ensure that internal control measures are in place
pursuant to Section 123 and 124, PD No. 1445 and GAM, Volume II;

405
 k) Maintain the prescribed reports/ registries/ records/ SLs/ cashbook, among others,
for control purposes. Ensure the accuracy and physical existence of their cash on
hand thru reconciliation with their cashbook balance daily. Require at least
quarterly, the AOs to reconcile their record book or its equivalent with the
accounting records to establish proper accountability;

l) Instruct the Collecting Officers for a proper turn-over of cash every time cash is
transferred to the assigned CO for deposit. Cash items should be properly
itemized, counted in the presence of the COs concerned and an acknowledgment
receipt be issued by the depositor CO for the amount received by from each of the
CO;

m) Strictly adhere to the guidelines prescribed in the Department Circular No. 01-
2017 of the DOF in the maintenance of government funds with Authorized
Government Depository Banks;

n) Orient the newly appointed SDOs of their duties and responsibilities, rules and
regulations concerning the handling of cash advances and other matters related to
their work before discharging their duties; stop the practice of transferring cash
accountability to other personnel pursuant to Section 4.1.5 and 4.1.6 of COA
Circular No.97-002; and

o) Provide the SDOs with safety box/vault or steel cabinet for the safekeeping their
accountabilities. Ensure that combination of safe/ vault is changed whenever there
is a change of custodian. Ensure that the work area of the Cashier is properly
enclosed and secured to amply protect said officer against intrusion by
unauthorized persons.

B. RECEIVABLES

Receivable account balances in as many as 73 agencies and 31 SUCs are

unreliable due to significant amounts of unliquidated cash advances and fund
transfers, unsupported/ undocumented dormant accounts, erroneous recording,
and other deficiencies noted, contrary to existing laws, rules and regulations
which may result in substantial losses to the government.

Analysis of the receivable accounts disclosed the following conditions, in material

amounts:

NGAs SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Unliquidated fund transfers to:
a.1 PS-DBM 32 12,082.40 1 0.31 33 12,082.71
a.2 PITC 20 16,513.79 20 16,513.79
a.3 GA 1 11.79 1 11.79
a.4 Other government agencies 49 119,727.11 7 67.13 56 119,794.24
b) Unreconciled receivables 47 10,870.09 8 134.40 55 11,004.49
c) Dormant/long-outstanding/non- 73 23,422.07 20 134.24 93 23,556.31
moving receivables

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 NGAs SUCs Total
Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
d) Unsupported receivables; lacking 24 2,835.04 31 1,058.15 55 3,893.19
information/details/breakdown;
unsubstantiated adjustments
e) Erroneous recording of 29 18,468.43 19 1,522.36 48 19,990.79
receivables
f) Negative/abnormal balances of 17 223.73 11 450.59 28 674.32
receivable accounts
g) Unrecorded/unbooked 20 2,713.35 15 487.06 35 3,200.41
receivables
h) Uncollected/unsettled 24 2,264.36 17 242.94 41 2,507.30
receivables
i) Other observations pertaining to
receivable accounts
i.1 Non-elimination and 3 231.80 4 79.06 7 310.86
unreconciled reciprocal
accounts
i.2 Receivables not recognized 8 7,617.31 11 296.14 19 7,913.45
at net realizable value/ non-
recognition of impairment
i.3 Non-Current Receivables 1 24.18 1 24.18
presented in the FS as
Current Receivables
i.4 Deficiencies in accounting 1 1,717.88 1 1,717.88
controls over collection of
receivables due to absences
of periodic billings, weak
control over transaction and
lack of monitoring of
dishonored checks

Recommendations

The Auditors recommended that the Accountant/other concerned officials:

a) Regularly monitor the balances of unliquidated fund transfers (FTs); use the
unutilized FT for future orders instead of transferring additional funds and
coordinate and discuss a resolution for the long outstanding FTs; stop the practice
of granting FT to the IAs with unliquidated balances; refrain from transferring
funds, unless extremely necessary; and investigate and reconcile the discrepancies
between the Detailed Schedule of the account versus Confirmation result;
regularly reconcile records in order to establish the correct balance of the account;

b) Prepare journal entries to recognize the unrecorded assets and correct the
misclassification and other errors/negative/abnormal balances/discrepancies
noted, to reflect the adjusted balances of the affected accounts in the books of
accounts; ensure that receivables which are not to be collected/settled within the
calendar year are presented in the Statement of Financial Position as Non-Current;
and observe the proper recording of accounts and transactions in accordance with
the GAM and other existing accounting rules and regulations. Prepare/maintain
SLs and supporting Schedules to show the details/breakdown of the Accounts
Receivable balance in order to facilitate validation and reconciliation with the
balances as reported in the GL;

407
 c) Intensify the verification/analysis and location of related records and supporting
documents of unidentified/unsupported balances. Submit to COA complete
supporting documents pursuant to COA Circular No. 2012-001 dated June 14,
2012; otherwise, reverse the entries already made. Verify the cause/s of the
undocumented accounts and adjust the accounts in the books of the agency;

d) Demand all the recipient NGOs/POs and private entities to submit complete
documentation of fund utilization or Financial Reports, in strict adherence to
Section 5.4 of COA Circular No. 2007-001, and Sections 2.1 and 2.2 of COA
Circular No. 2012-001, otherwise undocumented transactions shall be disallowed
in audit;

e) Reconcile the reciprocal accounts and prepare entries to eliminate the effects of
intra-agency transactions. Likewise, institute a thorough monitoring of these
reciprocal accounts by ensuring that entries made by CO are properly reciprocated
in the RO books;

f) Provide Allowance for Impairment Loss for receivables in order to have a fair
presentation of the financial statements as required under Section 10, Chapter 7
of the GAM and establish a clear-cut policy on provision for allowance for
impairment arising from risk of non-collectability; and

g) Install and strictly adhere to internal controls; observe the procedures on the
collection of receivables as prescribed by the GAM for NGAs; intensify collection
efforts; and monitor dishonored checks.

C. INVENTORIES

Deficiencies observed in transactions of as many as 63 agencies pertaining to the

Inventory accounts included, among others, unsupported transactions,
unrecorded issuances of supplies/ materials and purchases/ deliveries, presence
of idle, damaged, obsolete/ expired/ unserviceable and dormant items, and
erroneous recording and misclassification of inventory transactions. Moreover,
the existence of obsolete, dormant or slow/ non-moving inventories may lead to
wastage of government funds.

Audit of the Inventory accounts of several agencies for CY 2020 revealed the
following conditions resulting in unreliable year-end balances, in substantive
amounts:

NGAs SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Unrecorded procurement/ 51 66,379.13 13 105.34 64 66,484.47
issuances/ disposal/ loss/
transfer of inventory/ semi-
expendable property or Report
of Materials and Supplies Issued
b) Erroneous recording of 43 1,615.47 15 158.50 58 1,773.97
Inventory transactions/

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 NGAs SUCs Total
Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
misclassification of accounts/
abnormal or negative balances
c) Unaccounted inventory/ semi- 1 0.10 3 3.64 4 3.74
expendable property during
physical count
d) Unsupported/ Undocumented 7 630.71 4 138.92 11 769.63
Procurement/Issuance/
Distribution of Inventories
e) Non- maintenance/ updating of 38 8,111.26 18 267.88 56 8,379.14
Subsidiary Ledger Cards or
Stock Cards by the Accounting
and Property Offices,
respectively and other inventory
reports
f) Idle, damaged, 14 33.94 8 40.85 22 74.79
obsolete/expired/unserviceable,
dormant or non/slow-moving
Inventories; non-conduct of
impairment analysis
g) Unreconciled with RPCI 42 4,887.35 20 353.61 62 5,240.96
h) Non-conduct of physical count 18 5,837.41 9 160.81 27 5,998.22
i) Other practices/deficiencies
affecting the reliability of the
Inventory accounts
i.1 Non-compliance with the 1 0.02 1 0.02
procedures in the Receipt,
Inspection, Acceptance and
Recording of Deliveries of
Inventory Items
i.2 Non-observance of two- 1 8.85 1 Undeter- 2 8.85
month requirement of mined
supplies
i.3 Non-observance of 2 2.10 2 2.10
weighted average method of
costing inventories

Recommendations:

The Auditors recommended that concerned Agency officials, particularly the

Accountant and Property/Supply Officer to:

a) Draw a journal entry voucher to adjust/take up in the Agency books the

unrecorded purchases and issuances and correct erroneous entries or
misclassification of Inventories; and henceforth, observe the proper recording of
accounts and transactions in accordance with the GAM, and other existing
accounting rules and regulations;

b) Submit the lacking and/or original copies of the necessary documents and reports
to support the affected transactions;

c) Strictly comply with Section 9 of GAM Volume I, on the use of Perpetual

Inventory System which requires the recording of all purchases and issuances of
supplies as they take place using the proper accounts; comply with the weighted

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 average method of costing of inventories; and maintain the SLC differently from
the Property and Supplies Section and conduct periodic reconciliation of records
particularly, the reconciliation of SLCs and SCs/RPCI. The Accounting Office,
to exert extra effort to trace/analyze the dormant accounts and its supporting
documents and provide the necessary impairment loss;

d) Property Custodian/Personnel In-Charge of Inventories, to record issuances of

supplies daily in the RSMI and submit the monthly report to the Accounting
Section. Instruct the Supply Section to ensure that procurement of supplies and
materials shall not exceed the two-month requirement and other requirements in
compliance with EO No. 292, to avoid overstocking or wastage of inventories.
Complete the issuance of the ICS for tangible items classified as semi-expendable
property in compliance with the provisions of Chapter 8, GAM for NGAs;

e) Create an Inventory Committee to conduct a complete physical count of

inventories semi-annually, prepare the RPCI, reconcile the same with the
Accounting Records and submit to the Office of the Auditor every six months,
the duly certified and approved RPCI for each type of inventory;

f) Strictly observe the procedures provided in the GAM for NGAs, Volume 1 on the
Receipt, Inspection, Acceptance and Recording of Deliveries of Inventory Items;
and

g) Facilitate the disposal of the damaged/obsolete and expired inventory items to

prevent further deterioration of the assets and decongest the storage area.

D. PROPERTY, PLANT AND EQUIPMENT (PPE)

Unreliable account balances of PPE accounts are noted in as many as 81 agencies

and 53 SUCs due to unrecorded or erroneously recorded transactions, disposed/
lost/ missing/ donated/ transferred PPEs not dropped from the books, non-
provision for depreciation expense, undisposed PPEs, insufficiency of
documents/ non-preparation of the required reports, among others.

Verification of PPE accounts showed the following conditions:

NGAs SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Unrecorded purchases/ 32 2,735.10 5 222.25 37 2,957.35
deliveries, completed projects,
IT communication and other
equipment, land and buildings,
motor vehicle, fabricated
machineries
b) Unrecorded donated motor 15 21,106.79 11 1,972.26 26 23,079.05
vehicles, firearms, land and
buildings, Artworks and
various equipment
c) Disposed/ lost/ missing/ 33 14,660.14 7 11.71 40 14,671.85
destroyed/ donated/ transferred
PPE such as vehicles, firearms,
ICTE and other Office and

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 NGAs SUCs Total
Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
Machinery equipment not
dropped from the books of the
Agency
d) Erroneous recording of PPEs or 65 6,362.14 29 1,428.57 94 7,790.71
misclassification of accounts
e) Major repairs/upgrades not 6 117.35 6 41.39 12 158.74
capitalized and directly
recognized as expense
f) Incorrect/non-recognition of 39 8,907.12 23 1,243.92 62 10,151.04
depreciation/impairment of
PPE
g) Undocumented/unsupported 26 8,685.92 20 4,954.69 46 13,640.61
PPE transactions due to the
absence of or failure to update
PPELC and SLCs /Schedules
supporting the GLs, or any
accounting records or
certificate of ownership
h) Idle or unutilized PPEs 2 55.66 1 4.11 3 59.77
i) Undisposed unserviceable 67 878.27 23 127.26 90 1,005.53
PPEs due to inadequate
monitoring of the concerned
Agency official to comply with
prescribed report
j) Non-conduct/completion of 19 11,241.38 13 7,908.82 32 19,150.20
physical inventory of PPEs
k) Uninsured or inadequately 48 46,252.33 18 5,172.32 66 51,424.65
insured PPEs
l) Non-preparation/maintenance/ 38 13,552.94 36 19,650.46 74 33,203.40
updating or submission of
required PPE reports/records
(PLCs, PCs, RPCPPE, PAR,
IIRUP, etc.)
m) Unreconciled PPE balances 82 83,090.52 53 19,918.70 135 103,009.22
between Accounting and
Property records (GL,
RPCPPE, PPELCs/SLCs and
SCs) due to non-conduct of
periodic reconciliation of
accounting and property
records and failure to update
property and accounting
records
n) Other observations/
deficiencies
n.1 Absence of report of lost 1 0.25 1 0.25
property
n.2 Non-compliance with the 1 2.42 1 2.42
requirement on regulations
for the One-Time Cleaning
of PPE accounts
n.3 Inconsistency between 1 1.58 1 1.58
PPE balances and the
Notes to the Financial
Statements

411
 NGAs SUCs Total
Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
n.4 Non-assertion of 1 Not 1 Not
ownership rights on Land determined determined
and Buildings
n.5 Non-observance of 1 4.62 1 4.62
regulations governing loss
of government property
n.6 Non-observance of rules 1 14.33 1 14.33
on the transfer of property
accountability and
supervision of
unserviceable properties
n.7 Unaccounted PPE 2 15.35 2 15.35

Recommendations

The Auditors recommended that the concerned officials, particularly the Accountant
and Property/Supply Officer to:

a) Strictly follow the accounting system prescribed under the GAM Volume I on
recognition and acquisition of PPEs as well as proper classification of accounts to
fairly present the PPE balances in the FSs at year-end. Further, revisit the PPE
recognition criteria under IPSAS 17. PPE acquired through donation should be
properly appraised by an Appraisal Committee and the appraised value will be
used in recording the transaction. Moreover, capitalize/record all major
repairs/reconstructions of buildings/other structures as PPE;

b) Prepare Journal Entry Vouchers to book up, reclassify, or derecognize the

following: (i) unrecorded assets including capitalized assets, (ii), semi-
expendable items included in the PPE accounts, (iii) PPEs already
disposed/demolished/destroyed or considered lost/missing/ unaccounted, or
donated/transferred to other offices/NGAs, and other adjustments to correct noted
errors/deficiencies in recording of transactions;

c) Review/analyze the PPE accounts and their useful life regularly, and ensure the
correct provision of depreciation or allowance for impairment losses on said PPEs
pursuant to Sections 22 and 27 of the GAM, Volume I, in order to reflect an
accurate carrying value of the assets at year-end;

d) Submit the complete required supporting documents to support the acquisition or

disposition of the PPEs, as basis in determining the correctness of the recorded
transactions and facilitate validation by the Audit Team. In the case of untitled
land, exert efforts to hasten the transfer of ownership and immediate registration
of the lot/s under the name of the Agency with the Register of Deeds in accordance
with Section 58, PD No. 1445 and Section 3 (c), Chapter 10, GAM, Volume 1.
For buildings/ structures, abide with the provisions of PD No. 1096 on securing
building or occupancy permits. Further, for lost or destroyed PPEs, submit to the
Auditor copy of the request for relief of accountability and/or write-off for lost
government properties and records caused by fire to substantiate the dropping of

412
 assets from the Agency’s books of accounts in conformity with Section 73, PD
No. 1445 and COA Circular No. 93-404 dated October 18, 1993;

e) Put to use/operationalize and utilize idle PPEs and conduct an in-depth feasibility
study before procurement of equipment for specific purposes in the future to
prevent similar wastage of government funds and property;

f) Analyze the composition of the PPE accounts and identify the dormant, idle, or
unutilized PPEs that would no longer provide economic benefits to the agency,
and dispose the same either through sale or donation to other government
agencies. Comply with the guidelines under COA Circular No. 2016-005 dated
December 19, 2016 on the proper disposition/closure of dormant PPEs. Similarly,
instruct the Disposal Committee to immediately dispose the unserviceable,
obsolete and fully depreciated properties in accordance with Section 79, PD No.
1445 and the Manual on Disposal of Government Properties to avoid further
deterioration/loss of assets value and generate additional income from their
disposal;

g) Comply with Section 38, Chapter 10, GAM for NGAs, Volume I on the conduct
of physical inventory of PPE by the concerned Agency personnel and
reconciliation with the Accounting Records; otherwise file an administrative
disciplinary action for non-compliance of the same. Create a Team to focus
mainly on the physical count of PPE as well as prepare and submit the inventory
report not later than January 31 of the following year as required in Sections 38
and 42.g, Chapter 10, GAM, Volume 1;

h) Require the submission of an updated inventory of all insurable properties to the

General Insurance Fund using the form prescribed by the GSIS for determination
and approval of appropriate insurance coverage; and obtain an adequate insurance
coverage for the insurable assets and properties with the GIF in compliance with
RA No. 656 or the Property Insurance Law and COA Circular No. 2018-002.
Include in the Agency’s annual budget the insurance premiums for all insurable
assets and properties;

i) For the Property and Supply Officer, issue the PARs to end-users, and renew them
every three years or every time there is a change in custodianship/user of the
property. Also, comply with the provisions of Chapter 10, GAM, Volume I on the
maintenance of Property, Plant and Equipment Ledger Cards and Property Cards
by the Accounting Office and Property/Supply Office, respectively, as well as the
reconciliation between the GL and RPCPPE balances and preparation of
adjustments, if warranted;

j) Charge those accountable officers who are still connected with the agency for the
missing PPE, and deduct from the final pay of retired employees whose final pay
had not been released/cleared by the Accounting Division; determine the liability
of the persons in-charge, who cleared the retired/separated employees from
property accountability even if these employees have unreturned government
property. Strictly adhere to the provisions of Section 21 and 41, Chapter 10 of
GAM for NGAs in the management and accountability of PPE;

413
 k) Strictly comply with the requirements of COA Circular No. 2020-006 to cleanse
PPE accounts; and

l) Pursue legal claims to assert their rights against the occupants and lessors of the
property in order to recover it or enjoy its benefits.

E. INVESTMENTS

Reported deficiencies/practices in as many as four agencies such as erroneous

recording, undocumented/ unsupported investment, and non-amortization of
investments led to doubtful validity and correctness of the Investment account
balances as of December 31, 2020:

Agencies SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Unbooked interests earned from 2 1.04 2 1.04
Investment in Stocks or losses
b) Undocumented/unsupported 1 1.14 1 1.14
investments
c) Erroneous recording of investments 3 127.50 1 1.18 4 128.68
or misclassification of Investment
accounts
d) Erroneous translation of capital 1 85.08 1 85.08
contributions and exclusion of CY
2019 capital contribution to
International Development
Association
e) Erroneous revaluation of the capital 1 20.00 1 20.00
quota subscriptions in the
International Monetary Fund

Recommendations

The Auditors recommended that concerned officials:

a) Management to require the Division Manager, Accounting Division (a) to verify

receipts of dividends on the MERALCO shares to determine any outstanding
claim for dividends with the MERALCO; and (b) to recognize dividends, if any,
under Accumulated Surplus/(Deficit) after receipt of the same;

b) Provide the Audit Team with the Certified True Copies of documents evidencing
ownership, authenticity, nature of the investments and other relevant data to
support the investments recorded in its books;

c) Issue a memorandum to BTr instructing the latter to revise the financial

qualification of NCCA’s investments from Available For Sale to Held to
Maturity;

d) Instruct the Chief Accountant to prepare the necessary adjusting journal entries to
correct the account balances, and record future investments initially at cost and
subsequently at amortized cost, pursuant to Sections 7 and 8, Chapter 7, Volume
I of the GAM;

414
 e) Direct the Chief Accountant to request from BTr copies of the investment
certificates/portfolios to support the monthly SOA; and

f) Ensure that capital contributions paid to the IDA in Philippine Peso is recognized
based on the actual payment in Philippine Peso, indicated in the Philippines’
Status of Subscription and Votes from the IDA to ensure the accuracy of the
balances of the contributions and to ensure that capital quota subscriptions to the
IMF are correctly translated at year-end.

F. BIOLOGICAL ASSETS/INTANGIBLE ASSETS/OTHER ASSETS

Deficiencies noted in the transactions of as many as 68 agencies and 44 SUCs

affecting the reliability and accuracy of the balances at year-end of Biological
Assets, Intangible Assets and Other Assets accounts included non-amortization
of the assets, unaccounted/ unrecorded, or dormant/ negative balances, or
undocumented transaction, and unliquidated cash advances, among others:

Agencies SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Unliquidated cash advances to 69 57,680.78 44 269.07 113 57,949.85
officers and employees; granting of
CAs to officers and employees
without liquidating previous CAs;
and other lapses in the grant,
utilization and monitoring of Cas
b) Unrecouped Advances to Contractors 7 1,005.38 6 53.42 13 1,058.80
or erroneous recording of
transactions for the Advances to
Contractors account
c) Non-amortization/impairment of 5 2,950.10 6 16.00 11 2,966.10
Biological/ Intangible Assets/ Other
Assets
d) Unaccounted Biological/Intangible 2 858.78 1 0.57 3 859.35
Assets/Other Assets
e) Erroneous recording/ unrecorded 27 3,115.42 14 60.88 41 3,176.30
Biological/Intangible/Other Assets or
misclassification of accounts
f) Negative/abnormal balances of 7 223.77 6 7.31 13 231.08
Advances accounts
g) Dormant/long outstanding cash 13 320.71 5 4021 18 4,341.71
advances, prepayments and other
assets
h) Unreconciled balances between the 3 56.61 3 18.62 6 75.23
accounts and other accounting/
property reports
i) Lack of supporting documents, 7 512.46 8 40.14 15 552.60
records and/or physical count;
records not properly maintained such
as Biological Assets Property Cards,
Quarterly Report of Biological
Assets, Report of Physical Count
j) Non-derecognition of unserviceable 3 0.31 2 2.45 5 2.76
Other Assets
k) Non-disclosure of required 1 3.94 2 1.22 3 5.16
information in the Notes to the
Financial Statements

Recommendations

415
 The Auditors recommended that concerned officials, among others:

a) Adhere strictly to the rules and regulations on the grant, utilization and liquidation
of cash advances and ensure proper monitoring pursuant to Section 89, PD No.
1445, COA Circular 96-004, and COA Circular. No. 97-002 dated February 10,
1997; stop the practice of granting special CAs to officers and employees who are
not duly designated as SDOs; require all Accountable Officers to settle/liquidate
immediately their cash advances within the prescribed period or once the purpose
for said advances were already served; otherwise, send demand letters to liquidate
the same and refund all remaining unutilized balances, or cause the withholding
of salaries of personnel with outstanding accounts, if warranted and refrain from
granting new or additional advances to AOs with unliquidated CAs; trace the
missing documents and locate the whereabouts of the separated employees with
long outstanding CAs and require the immediate settlement or consider evaluating
the provisions of COA Circular No. 2016-005 dated December 19, 2016 if these
dormant or non-collectible accounts are qualified for write-off;

b) Demand from the contractors the immediate return of the unrecouped advances;
apply the cost of unbilled accomplishment to outstanding advances; and, closely
monitor the advance payments and ensure recoupment thereof through deduction
from the progress payment. Require the legal office/unit to issue demand letters
and institute all necessary legal actions such as filing the appropriate collection
suit against the defaulting contractors and/or forfeiture of the performance
guaranty;

c) Assess the useful lives and/or condition of the recorded items and provide the
necessary amortization and/or impairment, if necessary;

d) Verify and analyze discrepancies or dormant/ unsupported/ unadjusted/

unaccounted/ unrecorded/ erroneously recorded accounts or omitted amounts or
negative/ abnormal balances/ non-existing balance per bank and prepare the
necessary adjustments/ reclassification; maintain objectivity and consistency in
keeping of accounts to safeguard against inaccurate or misleading information;
effect the necessary restatement entries to correct the final and beginning balances
of the CY 2019 consolidated financial statements; and comply with the
Accounting policy for intangible assets set forth in IPSAS No. 31;

e) Provide sufficient and relevant documents, prepare all necessary reports and
maintain records and complete inventory taking of the biological assets; and
reconcile records periodically;

f) Hasten the sale/disposal of all abandoned/surrendered properties giving priority

to the depreciable assets to avoid further deterioration or loss and ultimately
augment the budgetary requirement of the agency and prepare corresponding
adjusting entries for PPEs already disposed of; and

g) Ensure that all necessary disclosures are included in the Notes to the Financial
Statements to provide complete information to users.

G. LIABILITIES

416
Accuracy and validity of liabilities as of December 31, 2020 in a number of
agencies cannot be determined as the account balances included, among others,
dormant/long outstanding, unrecorded/ unaccounted/ undocumented and
erroneously recorded payables or with abnormal balances.

Agencies SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Dormant/ long-outstanding/ 61 7,678.00 29 857.42 90 8,535.42
unsupported payables and
unidentified liabilities
b) Unrecorded/erroneously 54 27,887.67 36 603.09 90 28,490.76
recorded payables
c) Unreconciled GL and SL 4 169.69 6 202.58 10 372.27
balances of payable accounts
d) SLs of payable accounts not 8 3,648.65 14 1,799.20 22 5,447.85
maintained
e) Discrepancies between book 8 1,166.07 3 48.17 11 1,214.24
balances and confirmation
results/schedules
f) Negative/abnormal payable 24 1152.57 16 252.77 40 1,405.34
balances
g) Other practices affecting the
reliability of the Payable
accounts
g.1 Discrepancies between 5 142.66 1 0.97 6 143.63
account balance and
other reports for
liabilities such as Aging
Schedule, Summary
Report on the Inter-
Agency Payables,
Schedule of Accounts
Payable, and other
account balances, etc.
g.2 Discrepancies between 3 108.35 2 83.34 5 191.69
Budget and Financial
Accountability Reports
and Financial Statements
for Accounts Payables
g.3 Maintenance of multiple 3 9.10 3 9.10
subsidiary ledgers for a
single
contractor/supplier/
creditor
g.4 Non-disclosure of nature 1 20.99 1 20.99
and aging of liability
accounts
g.5 Discrepancy between the 1 75.04 1 75.04
Trust Liabilities account
and trust receipts

Recommendations

The Auditors recommended that concerned officials:

417
 a) Accountant/ Accounting Office, coordinate with the concerned offices and gather
immediately all the necessary/ valid documents supporting all payable accounts
including cause of negative balance and submit the pertinent DVs and the
necessary supporting documents to the COA Audit Team, for validation/
verification. Strictly comply with the COA rules/ issuances for the succeeding
claims to avoid suspension/ disallowance in audit in the succeeding year.
Henceforth, stop setting up payables without complete documentation/ valid
claimants;

b) Exercise due care in recording financial transactions to avoid errors/omission.

Prepare the necessary accounting entries or JEV to book-up the unrecorded
liabilities or take up the adjustments and correct the noted deficiencies in
recording liabilities, in order to reflect the correct balances of the liability
accounts and other affected accounts in the FS. Maintain the GLs and SLs using
the prescribed format under the GAM for NGAs, Volume II, containing sufficient
details to facilitate validation of accuracy and existence of the accounts and ensure
reconciliation of records;

c) Review and exert all efforts to identify the nature of the outstanding balances of
the dormant/long outstanding accounts; revert the Accounts Payables with no
valid claims/undocumented for over two years to Accumulated Surplus/(Deficit)
in compliance with Section 98, PD No. 1445;

d) Contact the concerned claimants through social media and other feasible means
to inform them of their existing claims and inform them of the necessary
procedures to claim the amounts due them. For those transactions without MOAs,
make representations with the concerned local and national government agencies,
as well as private individuals and institutions, to come up with an agreement for
the unliquidated and/or unremitted funds; and conduct careful and periodic
monitoring of all liabilities as a measure to prevent further the accumulation of
long outstanding payables;

e) Strictly adhere to the proper accounting of Inter Agency Transferred Funds; and
prepare and submit immediately the Report of Disbursements to the Source
Agency to liquidate the fund transfers in compliance with COA Circular No. 94-
013 dated December 13, 1994. Expedite the reconciliation of the balance of Due
to NGAs with the SAs’ records;

f) Ensure that all necessary disclosures are included in the Notes to the Financial
Statements to provide complete information to users.

H. REVENUES

Revenue account balances in a number of agencies in CY 2020 are unreliable

due to erroneous recording; unaccounted/unrecorded/ unrealized revenues;
undocumented/ unsupported transactions and absence/breakdown of internal
control, among others.

418
 Agencies SUCs Total
Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Unaccounted/ unrecorded/ unrealized 11 555.44 2 47.13 13 602.91
revenues or income
b) Erroneous recording of revenues/ 5 282.57 8 683.11 13 965.68
income/ misclassification of accounts
c) Undocumented or unsupported 2 49.40 2 49.40
revenue transactions
d) Absence/breakdown of internal 2 541.88 3 2.88 5 544.76
control/established system and
agency reports, breakdown of
internal controls, hence, the risk of
non-collection of revenues
e) Income erroneously deposited in a 1 12.08 1 12.08
special account with the BTr

Recommendations:

The Auditors recommended that concerned officials to:

a) Classify the revenue/income accounts properly in the books in accordance with

the provisions of Chapter 3 of GAM, Volume III; ensure completeness of required
supporting documents to avoid audit suspensions and charges; and submit the
required Report of Collection and Deposit within the prescribed period for proper
and timely recording of transactions;

b) Effect the necessary adjustments on the errors/omissions and improper recording

of transactions, as well as the misclassification of accounts, to correct the reported
balances of the affected accounts in the FSs;

c) Devise well-defined processes of evaluation, assessment of fees, billing,

collection and issuance of licenses and permits that will ensure segregation of
duties, and check and balance the correctness of the amounts being collected.
Encourage personnel’s adherence to management policies in assessment and
collection of fees and to maintain/safeguard the integrity of the assessment
process; and

d) Identify management and administrative fees deposited to the special account

with the BTr; coordinate with the BTr and the DBM on the possible withdrawal
of the management and administrative fees erroneously deposited to a special
account with the BTr for transfer to the EF; and take appropriate action based on
the advice of the BTr and the DBM.

I. EXPENSES

Expense account balances are unreliable due to erroneous recording,

unrecorded expenses and non-maintenance of general and subsidiary ledgers.

Agencies SUCs Total

Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Erroneous recording of expenses or 40 2,778.68 23 115.04 63 2,893.72
misclassification of accounts
b) Unrecorded Expenses 15 1,132.45 3 7.78 18 1,140.23

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 Agencies SUCs Total
Condition Amount Amount Amount
No. No. No.
(Million ₱) (Million ₱) (Million ₱)
c) Non-maintenance of general ledgers 1 447.93 1 447.93
and subsidiary ledgers for Expense
accounts

Recommendations:

The Auditors recommended that concerned officials to:

a) Record future expenses in accordance with their classification based on either the
nature of expenses or their function within the entity, whichever provides
information that is reliable and more relevant and as provided in GAM, Volume
III;

b) Prepare the necessary adjusting entries to correct the erroneous recording of

transactions;

c) Observe proper and timely recognition of expenses; and

d) Prepare and update the GL and SLs, together with the complete supporting
documents and accounting records, and to observe the highest degree of
objectivity and consistency in the keeping of the accounts to safeguard the same
against inaccurate or misleading information.

7.6 Non-observance by as many as 113 agencies and 65 SUCs of certain laws, rules and
regulations defeating the purpose for which these were enacted which may result in
wastage of government funds.

NGAs SUCs Total

Laws/Rules
Condition Amount Amount Amount
violated No. No. No.
(Million ₱) (Million ₱) (Million ₱)
a) Non-submission of Section 122 of PD 79 546,573.17 55 3,906.81 134 550,479.98
required No. 1445; Chapter
monthly/quaterly/ 19 and 21 of GAM
annual financial Volume I; COA
reports/schedules, Circular Nos. 2009-
DVs, ORs, BRSs, 002 and 006; COA-
LRs etc. within the DBM JC No. 2014-1
prescribed timeline
b) Non-submission of COA Circular No. 63 186,568.38 26 1,679.99 89 188,248.37
copies of 2009-001
contracts/POs/JOs,
MOAs within set
timeline
c) Unsettled COA Circular 52 16,005.89 30 948.81 82 16,954.70
Disallownces at No.2009-006 dated
year-end September 15, 2009;
d) Unsettled 2009 Rules and 32 58,119.74 14 1,024.43 46 59,144.17
Suspensions at Regulations on
year-end Settlement of
Accounts
e) Non-compliance RA Nos. 11465 or 62 63.36 2 Not 64 63.36
with provisions GAA FY 2020 and quantifi
related to Senior other related ed
Citizens and issuances

420
 NGAs SUCs Total
Laws/Rules
Condition Amount Amount Amount
violated No. No. No.
(Million ₱) (Million ₱) (Million ₱)
Persons with
Disability
f) Non-compliance 113 28,306.74 65 727.31 178 29,034.05
with GAD
requirements
g) Non-compliance RA No. 10963; 48 2,663.50 31 155.51 79 2,819.01
with BIR NIRC of 1997;
provisions such as: Revenue Regulation
Failure to withhold No. 11-2018; Other
taxes, or delayed or RRs
partial remittance
of taxes withheld;
and Other
observations like
over-remittance of
taxes, abnormal
balances,
unaccounted
differences/
unreconciled
balances and
unsubmitted
Electronic Tax
Remittance
Advices (e-TRAs)/
tax Withheld
h) Non-compliance RA No. 8291 or the 36 4,732.23 24 29.77 60 4,762.00
with provisions of GSIS Act of 1997
GSIS law such as
delayed remittance
of GSIS
contributions and
unreconciled
account balances/
unidentified
differences, etc.
i) Non-compliance RA No. 9679 dated 29 246.60 17 9.81 46 256.41
with Pag-ibig Law June 1, 2009
provision such as
delayed remittance
of contributions/
account
unreconconciled
balances.
j) Delayed or RA Nos. 10606 31 312.53 14 3.10 45 315.63
unremitted (2013) and 7875
PhilHealth (1995); Philhealth
conributions; non- Circular No. 0001-
deduction of 2014
contributions, etc.
k) Non-compliance RA No. 10121 7 1,021.58 7 1,021.58
with Philippine
Disaster Risk
Reduction and
Management
requirements
l) Non-compliance CMO No. 53-2010, 1 5,866.22 1 5,866.22
with mandatory CAO No. 10-2008,
requirements in the Section 1425 of
implementation of Customs
Post Entry Modernization and
Modification of Tariff Act; COA
Single Circular No. 2018-

421
 NGAs SUCs Total
Laws/Rules
Condition Amount Amount Amount
violated No. No. No.
(Million ₱) (Million ₱) (Million ₱)
Administrative 002 dated May 31,
Document (SAD) 2018; RA Nos. 656
and SAD and 9184; PD No.
Cancellation; 1096
Payment
Application Secure
System Version
5.0; Custom
Modernization and
Tariff Act; and
Property Insurance
Fund
m) Non-compliance FY 2020 GAA/ 4 N/A 4 N/A 8 N/A
with the required NBC No. 542, s.
posting of 2012
transparency seal in
their respective
websites.
n) Non-submission of COA Circular No. 5 902.81 5 247.47 10 1,150.28
list of PPAs 2013-004

Recommendation

Strictly adhere to the provisions of existing laws such as the RA No. 11465 or GAA of
FY 2020; Section 122 of PD No. 1445 and PD No. 1096; Chapter 19 and 21 of GAM
Volume I; COA Circular Nos. 2009-001, 002 and 006; COA-DBM JC No. 2014-1; RA
Nos. 656, 7277, 7875 (1995), 8291 or the GSIS Act of 1997, 9184, 9679, 9994, 10121,
10606 (2013) and 10963; PCW-NEDA-DBM JC No. 2012; NIRC of 1997; RR No. 11-
2018; PhilHealth Circular No. 0001-2014; CMO No. 53-2010; CAO No. 10-2008;
Section 1425 of Customs Modernization and Tariff Act; NBC No. 542; and other related
applicable rules and regulations.

422
 PART VIII

CONSOLIDATED AUDIT
OBSERVATIONS
ON GENDER AND
DEVELOPMENT
 Sectoral Consolidated Audit Observations on Gender and Development
National Government Sector
CY 2020

AUDIT OBSERVATIONS
Cluster Legend
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Audit Recommendations
✔ 39 10 14 0 3 5 38 10 12 0 3 4 38 5 5 22 14 14 2 22 13 3 0 7 2 24 8 8 5 17 14 19 0 8 26 3 Agency management to:
X 5 34 31 45 38 38 6 35 32 44 41 40 7 40 36 23 30 31 29 18 26 37 43 35 33 16 31 34 34 24 25 19 3 17 8 3

1 ✔X 2 2 1 0 4 2 2 1 2 2 2 2 1 1 5 0 0 0 12 5 4 5 2 3 9 6 5 2 3 3 3 5 0 0 4 0 a. Require the GAD Focal Person to submit the approved Annual Gender and
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Development Plan and Budget and its GAD Accomplishment Report to the
(46 Agencies)
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 COA Audit Team within the period as prescribed in Section V of COA
Circular No. 2014-001.
N/A 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 1 2 1 3 1 3 1 1 1 2 0 2 2 4 2 4 3 43 21 8 40
BLANK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b. Establish a functional GFPS which shall spearhead the timely preparation of
✔ 21 1 4 1 0 2 21 3 7 1 1 6 21 0 0 15 3 4 1 17 3 0 0 4 1 15 3 5 4 6 3 12 0 5 8 1 the annual and performance-based GPB, send the members of the GFPS to
X 0 19 16 19 20 17 0 17 13 19 19 12 0 20 19 5 17 17 15 4 16 19 19 15 17 4 17 14 16 11 15 5 2 12 8 2 capacity building and seminars related to GAD mechanisms/processes, and
✔X 0 0 0 0 0 1 0 0 1 0 0 2 0 0 1 0 0 0 4 0 1 1 1 1 2 1 1 1 0 3 2 2 0 0 2 0 require the GAD Focal Person to submit on time the GPB to the Offices
2 concerned.
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(23 Agencies) c. Institutionalize the use of the HGDG templates through capacity training
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 1 1 1 1 1 0 1 0 1 1 1 0 1 1 1 1 0 1 0 1 1 1 1 1 1 0 1 1 1 1 0 5 1 0 2 for the proper assessment of infrastructure and related facilities to properly
BLANK 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 4 16 5 5 18 evaluate development interventions to contribute on the achievement of the
organizational goals/outcomes.
✔ 13 0 4 0 0 2 13 0 3 0 1 1 13 0 0 6 4 6 1 11 1 0 1 2 2 10 0 2 3 3 2 8 0 6 9 1

X 2 15 11 15 15 13 2 15 11 14 13 13 2 15 15 9 11 9 13 4 14 14 13 13 13 5 15 13 12 12 13 6 0 1 3 0 d. Capacitate the GAD focal person in order to enhance her skills in the
preparation of proper and realistic GPB and GAD AR, through the use of
3 ✔X 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 2 2 1 1 1 1 1 1 1 1 1 0 0 1 0
correct HGDG toolkit in its evaluation, in accordance with the requirement of
(17 Agencies) ** 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
PCW-NEDA-DBM Joint Circular No. 2012-01.
423

*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16 9 0 0 e. Ensure prompt and full completion/accomplishment of GAD projects
BLANK 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 16 within the budget year and require the GAD Focal Person to periodically
✔ 26 3 8 0 2 3 24 3 5 1 3 3 25 1 0 10 5 14 1 14 6 0 0 5 2 12 7 8 2 8 5 16 0 11 19 0 monitor GAD projects and report on the results so that project
implementation challenges are immediately determined and acted upon, as
X 1 24 17 27 22 20 2 23 20 25 22 21 2 25 26 17 22 13 21 12 20 25 26 20 20 13 20 18 23 18 19 11 0 8 4 1
well as to provide technical assistance to the GAD responsible offices, if
4 ✔X 0 0 2 0 3 4 1 1 2 1 2 3 0 1 1 0 0 0 5 1 1 1 0 1 5 1 0 0 2 1 3 0 0 2 3 0 warranted.
(27 Agencies) ** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 f. Comply with the provisions of the Joint Circular 2012-01 and the General
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Provisions of FY 2019 GAA for GAD budget allocation at least five percent
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 1 0 0 0 0 27 6 1 25 of the total agency appropriations, the mainstreaming of gender perspective,
BLANK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 policies, program and projects as well as the attribution of budget to GAD
✔ 17 3 4 1 3 3 16 6 5 1 3 2 18 1 1 12 3 5 5 8 3 2 3 6 0 10 6 5 7 0 3 11 1 7 9 0
X 3 17 15 19 17 17 3 14 15 20 18 19 2 18 17 8 17 15 7 7 11 17 17 13 16 8 12 13 12 19 17 9 20 13 10 21 g. Formulate GPB that will address specific gender issues that are aligned
5 ✔X 1 1 2 1 1 1 2 1 1 0 0 0 1 2 3 1 1 1 9 6 7 2 1 2 5 3 3 3 2 2 1 1 0 1 2 0 with the agency’s mandate and the Magna Carta for Women, the Philippine
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Plan for Gender-Responsive Development (1995-2025) and other GAD
(23 Agencies) related issuances and conduct gender mainstreaming to address gender issues
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 and concerns.
BLANK 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

h. Require the Chairperson, GFPS to adopt alternative means for

✔ 22 2 5 0 1 4 23 4 8 0 1 4 26 3 5 5 12 17 3 17 7 3 4 7 4 16 8 7 6 5 5 14 0 5 10 2 conducting/attending the GAD activities, such as; conduct of virtual meetings,
X 5 25 22 27 25 23 3 23 18 27 24 22 1 24 21 22 15 10 21 10 19 24 23 20 21 11 18 20 21 22 22 13 0 16 11 19 consultations, trainings, briefings surveys and other means, without
compromising the health protocols being implemented by the government.
✔X 0 0 0 0 0 0 0 0 1 0 1 1 0 0 1 0 0 0 3 0 1 0 0 0 2 0 1 0 0 0 0 0 0 0 0 0
6 i. Submit its GPB for the succeeding years with the approval and signature of
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(27 Agencies) the agency head to the PCW for review and endorsement to DBM to allow
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
the oversight bodies to ensure compliance with the established laws, rules and
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 27 6 6 6
regulations.
 6
(27 Agencies) AUDIT OBSERVATIONS
Cluster Legend
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Audit Recommendations
BLANK 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 j. Instruct the GFPS to prioritize the establishment of the GAD Database or
✔ 12 4 6 0 1 2 12 1 5 0 0 2 14 1 1 5 2 8 1 11 2 1 2 2 4 7 2 2 6 1 2 4 0 5 6 2 Sex-Disaggregated Data and the conduct of Gender Analysis to be used in
assessing and addressing the Agency’s gender-related issues.
X 1 9 7 11 10 9 2 11 7 11 11 9 0 11 12 7 9 4 9 2 9 9 9 8 7 5 10 9 5 10 9 7 0 7 6 8

7 ✔X 1 0 0 1 1 1 0 0 0 1 1 1 0 0 0 0 0 0 2 0 0 2 2 1 1 0 0 0 0 1 1 2 0 0 1 2 k. Prepare a more responsive GPB for the Agency in which it easily identifies
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 and prioritize gender issues by maintaining a GAD database containing
(14 Agencies)
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 analysis of SDD and gender statistics. Likewise, the GAD focal point must
N/A 0 1 1 2 2 2 0 2 2 2 2 2 0 2 1 2 3 2 2 1 3 2 1 3 2 2 2 3 3 2 2 1 14 2 1 2 ensure the correctness and alignment of entries as indicated in the GPB
template.
BLANK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
✔ 27 7 16 0 0 1 23 9 11 1 0 1 26 1 3 10 10 12 0 20 3 2 2 5 2 13 7 5 6 4 4 15 0 7 19 0 l. Direct the: a) GAD Committee to explore and adopt possible alternative
X 2 20 13 23 25 23 6 20 17 22 24 22 2 27 25 18 18 16 19 7 21 23 22 20 20 13 19 20 22 21 20 11 0 9 6 2 modes of accomplishing PAPs in view of the current situation, such as zoom
meeting/virtual conferences and the like; and b) Planning Section to promptly
✔X 0 1 0 4 3 3 0 0 0 4 3 4 0 0 0 0 0 0 6 0 1 1 1 0 4 0 0 1 0 1 1 2 0 0 1 0
8 submit WFP which should be in congruent with the approved budget advice
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0
for GAD.
(29 Agencies)
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 0 2 2 1 29 2 1 2
Blank 0 1 0 2 1 2 0 0 1 2 2 2 1 1 1 1 1 1 2 0 2 1 2 2 1 1 1 1 1 1 2 0 0 11 2 25

Legend:
✔ - Yes
X - No
x ✔ - Partly
**- For Cluster 3 - AR still under review of the PCW
-For Cluster 8 -AR not submitted
424

*** - Awaiting confirmation from the Committee on Gender Responsiveness

N/A- Not Applicable
BLANK- Cannot be determined based on the given data/ None/ No report submitted

For Cluster 2
LEDAC has no GAD. It's GAD is incorporated with NEDA Office of the Director
General; and
MDFO is under the umbrella of DOF, hence, GAD activities are included in the
DOF-OSEC budget.
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 1 - Executive Offices
Calendar Year 2020

Audit Observations*
Agencies A B C D E F Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 3334 35 36
 O O O O O  O O O O O  O O  O O O  O O O O O  O O O   Px N/A O Px N/A
1 Office of the President (OP)
Climate Change  O  N/A N/A N/A  O Px Px Px Px  O O  O O Px  Px O O  Px  Px O O O Px  N/A N/A  N/A
2
Commission (CCC)
Commission on the Filipino  O  O O O  O  O O O  O O O  O Px Px  O O O Px Px  O O O O  N/A O N/A N/A
3
Language (CFL)
Philippine Commission on  O O O O O  O O O O O  O O O  O O O  O O O O O  O O O O  N/A   N/A
4
Women (PCW)
Cooperative Development    O O O    O O O   O O O O O  O O O O Px  O O O Px  O N/A  N/A N/A
5
Authority (CDA)
Presidential Management  O O O    O O O    O  O   Px  O Px O  O  Px  O   O N/A N/A N/A N/A
6
Staff (PMS)
Presidential Legislative  O O O    O O O    O O O O  O O  O O O O  O O O O O O N/A N/A  N/A
7
Liaison Office (PLLO)
Anti-Red Tape Authority O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O  O O O O O
8
(ARTA)
425

Philippine Space Agency O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N/A N/A N/A N/A

9
(PhilSA)
Office of the Presidential  O O O O O  O O O O O  O O  O O O  O O O O O  O O O O O  N/A N/A N/A N/A
10 Adviser on the Peace
Process (OPAPP)
National Commission on O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N/A O O N/A
11
Indigineous People (NCIP)
National Commission for   O O Px Px  O O O O O  O Px  O O Px Px O O O O O Px O O O   O N/A O  N/A
12
Muslim Filipinos (NCMF)
National Anti Poverty    O Px Px    O O O  O Px  O O Px Px O O O O O  O O O   O N/A O  N/A
13
Commission (NAPC)
Optical Media Board    O O O    O O O  O Px O  O Px Px O O O O Px  O O O  O Px N/A  Px N/A
14
(OMB)
National Printing Office    O O O  O O O O O  O O N/A N/A  N/A O N/A Px O O N/A O N/A N/A N/A  N/A O N/A N/A O N/A
15
(NPO)
Bureau of Communication  O O O O O  O O O O O  O O  O O O O  O O O O  O O O O O  N/A N/A  N/A
16
Services (BCS)
Presidential Broadcast Staff  O O O O O  O O O O O  O O  O O O O  O O O O  O O O O O  N/A N/A  N/A
17
(PBS-RVTM)
Presidential  O Px O Px   O O O O   O O  O O O  O O O O  O O O O    N/A   N/A
18 Communications
Operations Office (PCOO)
 Audit Observations*
Agencies A B C D E F Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
News and Information  O O O O   O O O O O     O O   O O O O O  O O     N/A O  N/A
19
Bureau (NIB)
Philippine Information  O O O O O  O O O O   O O  N/A N/A N/A O N/A O O O N/A  N/A N/A N/A  N/A N/A N/A N/A O N/A
20
Agency (PIA)
Bureau of Broadcast  O O O O O  O O O O O  O O  O O O O  O O  O O   O  O  N/A   N/A
21
Services (BBS)
Office of the Vice President Px Px  O Px O  O O O O O  O O O   O O  O O O O O  O O O O  O O  O
22
(OVP)
Philippine Sports  O O O O O  O O O O O  O O O   O  O O O O O  O O O Px O  O O  N/A
23
Commission (PSC)
National Archives of the  O O O O O  O  O O O  O O O   O  O O O O O  O O O   O N/A N/A N/A N/A
24
Philippines (NAP)
National Commission for  O  O O O    O O O  O O O   Px  O  O O Px  O O Px   Px N/A O Px N/A
25 Culture and the Arts
(NCCA)
National Library of the  O O O O O  O  O O O  O O  O O O  O O O Px O  O  O O O  N/A N/A  O
26
Philippines (NLP)
Film Development Council  O O O O O    O O O O O O  O O O  O O O O O  O   O O O N/A N/A  
27
of the Philippines (FDCP)
National Historical    O O O    O O O  O O  O O O  O O O O O  O O O O O O N/A O  N/A
28 Commission of the
426

Philippines (NHCP)
Dangerous Drugs Board  O O O O O  O O O O O  O O  O O O O  O O O O Px O O O   O N/A N/A  
29
(DDB)
National Intelligence  O O O O O  O O O O O  O O  O O O O  O O O O Px O O O   O N/A N/A  
30 Coordinating Authority
(NICA)
Philippine Drug  O O O O O  O O O O O   Px O   O   O O  O O   O O O Px N/A   N/A
31 Enforcement Agency
(PDEA)
National Security Council    O O O    O O O  O   O O O Px O  O O O  O O O O O O N/A O O N/A
32
(NSC)
Movie And Television  O O O O O  O O O O O  O O O  O O  O  O O O  O O Px Px Px  N/A O O N/A
33 Review And Classification
Board (MTRCB)
Philippine Competition  O O O O O  O O O O O  O O O   O O  O O O O O O O O O Px  N/A N/A  N/A
34
Commission (PCC)
National Youth  O O O O O  O O O O O  O O O   Px  Px Px O O O  O O N/A N/A N/A N/A N/A N/A  N/A
35
Commission (NYC)
   O O O    O O O  O O  O O Px  O Px Px O Px  O O N/A N/A N/A N/A N/A N/A N/A N/A
Presidential Commission
36
for the Urban Poor (PCUP)
 Audit Observations*
Agencies A B C D E F Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Department of Human Px Px O O O O Px Px O O O O Px Px Px O  O O  O Px Px Px Px  O O Px   Px N/A N/A Px N/A
37 Settlement and Urban
Development (DHSUD)
Human Settlements    O O O Px   O O O O O O  O O Px  Px O O O Px Px Px Px  O O O N/A N/A  N/A
38 Adjudication Commission
(HSAC)
Governance Commission  O O O O O   Px Px Px Px  O O  O O Px  Px O O  Px Px Px Px O O O  N/A N/A  N/A
39
for GOCCs (GCG)
Philippine Racing O O O O O  O O O O O O O    O O O  O O O O  O O O O O O O N/A O O N/A
40
Commission (PhilRaCom)
Games and Amusement  O  O O O  O O O O O  O O  O O  O O O O O O  O O O  O  N/A O  N/A
41
Board (GAB)
Department of Foreign  O O O  O  O O O  O  O O O O  N/A N/A N/A N/A N/A N/A O O   O O O  N/A O  N/A
42
Affairs (DFA)
Foreign Service Institute  O O O O O  O O O O O  O O O O  O O  O O  O O   O O O  N/A   N/A
43
(FSI)
UNESCO National    O O O O O O O O O    O O  O O  O O  O O    O O O N/A N/A N/A N/A
44 Commission of the
Philippines (UNACOM)
Commission on Filipino  O O O O O  O O O O O  O O O   Px  O O O Px O O Px O O    N/A   N/A
45
427

Overseas (CFO)
Techinical Cooperation O O O O O O O O O O O O O O O O O O O O O O O O O O O O  O O O N/A O O N/A
46 Council of the Philippines
(TCCP)

Summary:
√ 39 10 14 0 3 5 38 10 12 0 3 4 38 5 5 22 14 14 2 22 13 3 0 7 2 24 8 8 5 17 14 19 0 8 26 3
X 5 34 31 45 38 38 6 35 32 44 41 40 7 40 36 23 30 31 29 18 26 37 43 35 33 16 31 34 34 24 25 19 3 17 8 3
√X 2 2 1 0 4 2 2 1 2 2 2 2 1 1 5 0 0 0 12 5 4 5 2 3 9 6 5 2 3 3 3 5 0 0 4 0
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 1 2 1 3 1 3 1 1 1 2 0 2 2 4 2 4 3 43 21 8 40
Blank 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 2- Oversight and Public Debt
Calendar Year 2020

Audit Observations*
Agencies Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1 NEDA P P P O O O P P P O O Px P O O P O O O P O O O O O P O P O Px Px Px O O Px O
Commission on Population
2 P N/A N/A N/A N/A N/A P N/A P N/A N/A N/A P N/A N/A N/A N/A P N/A P N/A N/A N/A N/A N/A N/A P N/A N/A N/A N/A P N/A N/A P O
and Development
Philippine Statistics
3 P O O O O O P O O O O P P O O P O O O P O O O O O P O O O P O P
Authority
Philippine National
4 Volunteer Service P O O O O O P O O O O O P O O O P P O O P O O O O P O O O P O P O P
Coordinating Agencies
Philippine Statistical
5 P O O O O O P O O O O O P O O O P O O P O O O O O P O O O O O P O O
Research Training Institute
Public-Private Partnership
6 P O O O O O P O O O O O P O O P O O O O P O O P O O P P O O O P O P
Center of the Philippines
7 Tariff Commission P O O O O O P O O O O O P O O P O O O P O O O O O P O O O O O P O P
LEDAC has no GAD. It's GAD is
Legislative-Executive
incorporated with NEDA Office
8 Development Advisory of the Director General.
Council
428

9 DOF P O O O O O P O O O P P P O Px P O O P P O O O P P P O P P O O P O O
Anti-Money Laundering
10 P O O O O Px P O Px O O Px P O O P O O O P O O O O O P O O O Px P O O O
Council
MDFO is under the umbrella of
Municipal Development DOF, hence, GAD activities are
11 included in the DOF-OSEC
Fund Office
budget.
Bureau of Local
12 P O O O O O P O O O O P P O O P O O O P O Px Px O O P O O O Px Px Px Px
Government Finance
13 Insurance Commission P O O O O P P O O O O P P O O O P O O P O O O O O P O O O O P O O O O
Privatization and
14 P O O O O O P O O O O O P O O P O O O P O O O O O P O O O P O P O
Management Office
Securities and Exchange O O O
15 P O O O O O P O O O O O P O O P O Px P O P Px O O P O P O P
Commission
National Tax Research
16 P O O O O O P O O O O O P O O P O O O P O O O O O O P O O O O P P P
Center
Central Board of
17 P O P O O O P O P O O O P O O O O P O O P O O O O P O O O O O P P P
Assessment and Appeals
18 DBM P O O O O P P P P O O O P O O O O P Px P O O O Px O Px Px Px P O O O P P
19 Procurement Service P O P O O O P P P O O O P O O P O O Px O Px O O O O P O O P O O P N/A O O N/A
Government Procurement
20 Policy Board -Technical P O O O O O P O O O O P P O O P O O Px P O O O O Px P O O O P P O N/A O O N/A
Support Office
 Audit Observations*
Agencies Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
21 Bureau of Customs P O O P O O P O O P O O P O O P O O O P O O O P O O O P P O O O N/A O O P
22 Bureau of the Treasury P O P O O O P O P O O O P O O P O O O P O O O O O P O O O P O P
-On column no. 9 of BIR -
Philippine Commission on
Women (PCW)/Department of
Interior and Local Government
(DILG) commented on the
submitted copy of GAD
Accomplishment Report (AR) and
according to PCW/DILG, they
will not be endorsing the GAD
AR anymore.

P O O O O O P O P O O P P O O P O O O P O O O O O P O O O O O P O P
-On column no. 12 of BIR -
23 Bureau of Internal Revenue N/A
Softcopy was submitted to former
Supervising Auditor by Training
Management Division on April 6,
2021.

-On column no. 35 of BIR - Has

started prototype testing of
Monitoring and Evalution in
RR19; and will adopt the same
system in NO.
429

Summary:
√ 21 1 4 1 0 2 21 3 7 1 1 6 21 0 0 15 3 4 1 17 3 0 0 4 1 15 3 5 4 6 3 12 0 5 8 1
X 0 19 16 19 20 17 0 17 13 19 19 12 0 20 19 5 17 17 15 4 16 19 19 15 17 4 17 14 16 11 15 5 2 12 8 2
√X 0 0 0 0 0 1 0 0 1 0 0 2 0 0 1 0 0 0 4 0 1 1 1 1 2 1 1 1 0 3 2 2 0 0 2 0
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

N/A 0 1 1 1 1 1 0 1 0 1 1 1 0 1 1 1 1 0 1 0 1 1 1 1 1 1 0 1 1 1 1 0 5 1 0 2
Blank 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 4 16 5 5 18
Total 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 3 - Legislative, Judiciary and Constitutional Offices
Calendar Year 2020

Audit Observations Remarks

Agencies
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1. Supreme Court of the Philippines (SCP) √ x x x x x √ x ** ** ** ** √ x x x √ √ x √ x x x x x √ x x x x x *** N/A N/A √
2. Presidential Electoral Tribunal
3. Court of Appeals √ x √ x x x √ x √ x x x √ x x √ x x √x √ x √x √x x x √ x x x √ √ x N/A N/A √
4. Court of Tax Appeals √ x x x x x √ x x x x x √ x x x √ √ x √ x x x x x √ x x x x x √ N/A N/A
5. Sandiganbayan √ x x x x x √ x x x x x √ x x √ x x x √ x x x x x √ x x x x x √ N/A N/A
6. Commission on Audit √ x x x x x √ x x x x x √ x x x x √ x √ x x √ √ √ √ x x √ x x x N/A N/A x
7. Commission on Elections √ x √ x x x √ x √ x x x √ x x x x x x x x x x x x x x x x x x √ N/A N/A √
8. Office of the Ombudsman √ x x x x √ √ x x x √ x √ x x √ x x x √ x x x x x √ x x x √ √ √ N/A √ √
9. Commission on Human Rights √ x x x x x √ x x x x x √ x x x x √ x x √ x x √ x x x √ x x x √ N/A √ √
10. Human Rights Violations Victims'
x x x x x x x x x x x x x x x √ x x x √ x x x x x x x x √ x x x N/A x x
Memorial Commission
11. Senate of the Philippines √ x x x x x √ x x x x x √ x x √ x x x √ x x x x x x x √ x √ x x N/A √ √
12. Commission on Appointments √ x x x x x √ x x x x x √ x x √ x x x √ x x x x x √ x x √ x x x N/A √ √
13. Senate Electoral Tribunal √ x x x x x √ x x x x x √ x x x x √ x √ x x x x x √ x x x x x √ N/A √ √
14. House of Representatives x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x N/A N/A x
15. House of Representatives Electoral
√ x √ x x x √ x √ x x x √ x x x √ √ √ x x x x x √ √ x x x x x √ N/A N/A √
Tribunal
430

16. Civil Service Commission √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x √x N/A N/A √x

17. Career Executive Service Board √ x √ x x √ √ x x x x √ √ x x x √ x x √ x x x x x √ x x vp x x √ N/A √ √

Summary:

 13 0 4 0 0 2 13 0 3 0 1 1 13 0 0 6 4 6 1 11 1 0 1 2 2 10 0 2 3 3 2 8 0 6 9 1
X 2 15 11 15 15 13 2 15 11 14 13 13 2 15 15 9 11 9 13 4 14 14 13 13 13 5 15 13 11 12 13 6 0 1 3 0
 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 2 2 1 1 1 1 1 1 1 1 1 0 0 1 0
** 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16 9 0 0
Blank 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 16
Total 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 16 17 17 17 17 17 17 17
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 4 - Defense and Security
Calendar Year 2020

Audit Observation
Agency Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Department of the Interior and
1 √ x x x x x √ x x x x x √ x x x x √ x √ x x x x x √ x x x √ √ x n/a x √ n/a
Local Government
2 National Police Commission √ x x x x x √ x x x x x √ x x √ x x √x x x x x x x √ x x x x x √ n/a n/a √ n/a
3 Bureau of Fire Protection √ x x x x x √ x x x x x x x x √ x x x √ x x x x x √ x x x x x √ n/a √ x n/a
4 Local Government Academy √ x √ x √x √x √ x x x √ x √ x x x x √ √x √x x x x √ x x x √ x x x √ n/a √ √ n/a
Bureau of Jail Management and
5 √ x x x x x √ x x x x x √ x x x x √ x x x x x x x √ x x x x x √ n/a √ √ n/a
Penology
6 Philippine Public Safety college √ x √ x x x √ x √ x x x √ √ x x √ √ √x x x x x x x √ x x x x x √ n/a √x √x n/a
7 Philippine National Police √ x x x x √ √ x x x x √x √ x x √ x x x x √ x x √ x x √ √ x √ x x n/a n/a √ n/a
Department of National
8 √ x x x x x √ x x x x √ √ x x x x √ x √ x x x x x √ x x x x x √ n/a x √ n/a
Defense
National Defense College of the
9 √ √ √ x √x √x √ x x x x x √ x x √ x x x √ x x x √x √x √ x x x √ x √ n/a n/a √ n/a
Philippines
10 Office of Civil Defense √ x x x x x √ x x x x x √ x x √ x x x √ x x x x x √ x x x x √ √ n/a x √ n/a
Veterans Memorial Medical
431

11 √ x √x x x x √ x √x x x x √ x x x x √ x x √ x x x x x √ √ x √ x √ n/a √x √x
Center
Phillipine Veterans Affairs
12 √ x x x x x √ x x x x x √ x x x x √ x x √ x x x x x x x x x x √ n/a √ √ n/a
Office
13 AFP General Headquarters √ x x x x x √ x x x x x √ x x x √ √ x x √ x x √ x x √ √ x x x √ n/a √ √ n/a
14 AFPCES √ x x x x x √ x x x x x x x x x x x x x x x x x x x √ x x x x x n/a x x n/a
15 Philippine Army √ x √ x x x √ x √ x x x √ x x x x √ x √ x x x x x √ x x x x x √ n/a √ √ n/a
16 Philippine Air Force √ x x x x x √ x x x x x √ x x x x √ x √ x x x x x x x √ x x x √ n/a √ √ n/a
17 Philippine Navy √ √ √ x √x √x √ √ √ x √x √x √ √x √x x √ x x x √ x x √ x x √ √ √ x √x x n/a n/a √ n/a
18 Department of Justice √ x x x √ √ √ x x x √ √ √ x x x √ x x √ x x x x x x x x x x x √ n/a x √ n/a
19 Bureau of Immigration √ x √ x x √x x x x x x x √ x x √ x x √ x x n/a n/a n/a √ n/a x n/a x x x x n/a x √x x
National Bureau of
20 √ x x x √ √ √ x x x √ √ √ x x √ x x x √ x x x x x x x x √x √ √x x n/a √ √ n/a
Investigation
21 Bureau of Corrections √ √ √ x x x √ √ √ x x x √ x x √ x x x √ x x x x x √ x x x √ √ x n/a x √ n/a
22 Land Registration Authority x x x x x x x x x x x x √ x x √ x x x x x x x x √x √ x x x x √ x n/a n/a n/a n/a
Parole and Probation
23 √ x x x x x √ x x x x x √ x x x x √ x √ √x x x √ √x x √ √ x √x √x x n/a √ √ n/a
Administration
24 Public Attorney's Office √ x x x x x √ x x √ x x √ x x x x √ x x √ x x x x x √ √ √x √ x √ n/a √ √ n/a
Office of the Government
25 √ x √x x x x √x √x √x √x √x √x √ x x x √ √ √x √ x √x x x √x √x x x √ √ √ x n/a n/a x n/a
Corporate Counsel
 Audit Observation
Agency Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
26 Office of the Solicitor General √ x x x x x √ x x x x x √ x x x x √ x √ x x x x √ x x x x x x √ n/a √ √ n/a
Presidential Commission on
27 √ x √ x x x √ √ √ x x x √ x x √ x x √x √ x x x x √x √ x x x x x x n/a x x n/a
Good Government

Summary:
 26 3 8 0 2 3 24 3 5 1 3 3 25 1 0 10 5 14 1 14 6 0 0 5 2 12 7 8 2 8 5 16 0 11 19 0
X 1 24 17 27 22 20 2 23 20 25 22 21 2 25 26 17 22 13 21 12 20 25 26 20 20 13 20 18 23 18 19 11 0 8 4 1
 0 0 2 0 3 4 1 1 2 1 2 3 0 1 1 0 0 0 5 1 1 1 0 1 5 1 0 0 2 1 3 0 0 2 3 0
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 1 0 0 0 0 27 6 1 25
Blank 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
Total 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27
432
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 5 - Education and Employment
Calendar Year 2020

Audit Observations
Agency
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Remarks
Department of OO O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O
1
Education (DepEd)
Early Childhood  O O O O O  O O O O O  O O O   O  O O O O O  O O O O O O O O O O
Care and
2
Development
Council (ECCDC)
National Book  O O O O O  O O O O O  O O  O O O  O O O  O O   O O O  O O  O
3 Development Board
(NBDB)
National Council O O O O O O O   O O O  O O  O O  O O O O O O  O O  O O O O O O O
4 for Children’s
Television (NCCT)
National Museum  O O O O O  O O O O O  O O  O O O  O O O O O  O O O O O  O O O O
5
(NM)
O O O O O O O O O O O O O O O  O O O  O O O O O  O O O O O O O O O O
433

University of the
6 Philippines System
(UPS)
Eulogio “Amang”  O O O O O  O O O O O  O O  O O O O O O   O O   O O   O   O
Rodriguez Institute
7 of Science and
Technology
(EARIST)
Marikina  O O O O O  O O O O O  O O  O O O O O O  O O  O O O O   O   O
8 Polytechnic College
(MPC)
Philippine State    O      O O   O O  O O O  O O O O O  O O  O O O O O O O
College of
9
Aeronautics
(PhilSCA)
Philippine Normal O O O O O O O O O O O O O O O  O O  O O O O O O  O O O O O O O O O O
10
University (PNU)
Polytechnic  O O O O O  O O O O O  O O  O O O O O O O  O O O  O O O  O   O
11 University of the
Philippines (PUP)
Rizal Technological    O O O    O O O  O O O  O    O O O O  O O O O O  O O  O
12
University (RTU)
 Audit Observations
Agency
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Remarks
Technological  O O O O  O O O O  O  O O  O O O  O O O O O O O O  O O O O O O O
13 University of the
Philippines (TUP)
Commission on  O O O O O  O O O O O  O O  O O  O O O O O O  O O  O O O O O O O
14 Higher Education
(CHEd)
Department of  O O O O O  O O O O O  O O O O  O  O  O O O O  O  O O O O   O
Labor and
15
Employment
(DOLE)
Professional  O O O O O  O O O O O  O O  O O  O O O O  O O   O O O  O   O
16 Regulation
Commission (PRC)
Institute for Labor  O O O O O  O O O O O  O O O O  O O  O O O O O  O  O O  O   O
17
Studies (ILS)
National                O  O O O O    O  O  O O    O O O
Conciliation and
18
Mediation Board
(NCMB)
434

National Labor
Relations
19
Commission
(NLRC)
National Wages  O O O O O  O O O O O  O O O O  O O  O O O O O  O  O O  O   O
Productivity
20
Commission
(NWPC)
Philippine Overseas  O O O O O    O O O  O O O O  O O O O O  O O O O O O O  O O O O
Employment
21
Administration
(POEA)
Overseas Workers  O  O  O   O O  O  O O O O O O O O O O O O O O O O O O O O O O O
Welfare
22
Administration
(OWWA)
Technical
Education and
23
Skills Development
Authority (TESDA)
 Audit Observations
Agency
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Remarks

Summary:
√ 17 3 4 1 3 3 16 6 5 1 3 2 18 1 1 12 3 5 5 8 3 2 3 6 0 10 6 5 7 0 3 11 1 7 9 0
X 3 17 15 19 17 17 3 14 15 20 18 19 2 18 17 8 17 15 7 7 11 17 17 13 16 8 12 13 12 19 17 9 20 13 10 21
√X 1 1 2 1 1 1 2 1 1 0 0 0 1 2 3 1 1 1 9 6 7 2 1 2 5 3 3 3 2 2 1 1 0 1 2 0
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Blank 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Total 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23
435
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 6 - Health & Science
Calendar Year 2020

Audit Observations
Agencies Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Department of Science and
1                                 N/A N/A N/A N/A
Technology
2 Science Education Institute                                 N/A N/A N/A N/A
Science and Technology
3                                 N/A N/A N/A N/A
Information Institute
Philippine Council for Industry,
Energy and Emerging
4                                 N/A N/A N/A N/A
Technology Research and
Development
Philippine Atmospheric,
5 Geophysical and Astronomical                                 N/A N/A N/A N/A
Services Administration
Philippine Institute of
6                                 N/A N/A N/A N/A
Volcanology and Seismology
Philippine Nuclear Research
7                   PO      PO        N/A   
Institute
Philippine Textile Research
8                                 N/A   
Institute
Industrial Technology
9                                N/A   
436

Development Institute
Food and Nutrition Research
10                           PO      N/A   
Institute
Advanced Science and
11           PO PO                     N/A   
Technology Institute
12 Philippine Science High School                                 N/A   
Technology Application and
13                                 N/A   
Promotion Institute
Philippine Council for Health
14                                 N/A   
Research and Development
National Academy of Science
15                                 N/A   
and Technology
Metals Industry Research and
16                               N/A   
Development Center
National Research Council of
17                                 N/A   
the Philippines
Department of Social Welfare
18                                 N/A   
and Development
19 Inter Country Adoption Board         PO      PO    PO  PO    PO        N/A   
Juvenile Justice And Welfare
20                                 N/A   
Council
Council for the Welfare of
21                                 N/A   
Children
National Council on Disability
22                                 N/A   
Affairs
 Audit Observations
Agencies Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
23 Department of Health                                 N/A   

Others:

CY 2020 GPB included the budget and programs intended

for the senior citizens and persons with disability;

Realigned/repurposed 2020 PAPs to prioritize and refocus

the resources in response to Covid-19 Pandemic.

No GAD Capacity Development Programs and

policy/directives established

GPB and GAD AR submitted were not sourced from the

GMMS of the PCW and not submitted to the DOH
Regional Office for review

Non provision of actual costs spent on the implementation

of GAD projects, programs, and activities.
24 National Nutrition Council                                 N/A   
25 Department of Information and                   PO              N/A    1. GAD Plan and Budget (GPB) submitted/endorsed to
Communication Technology PCW.
2. Soft copy of the PCW-endorsed and agency-approved
GPB (approved by the Chairperson of the GPFS) was
437

emailed to the audit team on July 13, 2021.

3. Advance copy of the GAD Accomplishment Report (AR)

was provided to the Audit Team on March 18, 2021.
4. AR was submitted to PCW on Feb. 26, 2021.
5. AOM No. 2021-19 (2020) dated April 19, 2021 was
issued to Management for the programs, projects and
activities (PPAs) in the GAD Plan and Budget (GPB) that
were either partially implemented or not implemented as of
the end of the year.
6. PPAs are in accordance with GPB and gender-responsive
however, there are poor implementation of every activity
for various reasons, i.e., outbreak of the pandemic, which is
understandable.
7. PPAs in the GPB is endorsed by the PCW which means
that it warrants that PPAs are supportive of the gender
issues of the agencies.
8. For some projects, funds were fully utilized but due to
the pandemic and budget cut, there were also funds which
were either unutilized and underutilized that resulted to the
issuance of AOM.

9. At the time of the submission of the GAD AR, only the

data on Regional Distribution of Individual Respondents By
Sex has been uploaded due to the pandemic. The staffers
were in the process of generating the weighted data for the
other indicators. To date, all the sex-disaggregated data
(SDD) tables are uploaded in the ICT Knowledge Portal.
 Audit Observations
Agencies Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
10. The DICT prepares AR annually, however AOM was
issued due to the delayed submission to audit team of the
advance copy on Accomplishment Report.
National Telecommunications
26                                 N/A   
Commission
27 National Privacy Commission                                 N/A   

Summary:
√ 22 2 5 0 1 4 23 4 8 0 1 4 26 3 5 5 12 17 3 17 7 3 4 7 4 16 8 7 6 5 5 14 0 5 10 2
X 5 25 22 27 25 23 3 23 18 27 24 22 1 24 21 22 15 10 21 10 19 24 23 20 21 11 18 20 21 22 22 13 0 16 11 19
√X 0 0 0 0 0 0 0 0 1 0 1 1 0 0 1 0 0 0 3 0 1 0 0 0 2 0 1 0 0 0 0 0 0 0 0 0
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 27 6 6 6
Blank 9 9 9 9 10 9 10 9 9 9 10 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9
Total 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36
438
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 7 - Public Works, Transport and Energy
Calendar Year 2020

Agency 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Remarks

1 DPWH-OSEC √ X X X √ X X X X X X X √ X X X X √ X √ X X X X X X X X X X X √ NA X √ X
2 MMDA √ X √ X X X √ X √ X X X √ X X X X √ X √ X X X X X √ X X X X √ √X NA X X X

3 DOTr √X X √ X X X √ X √ X X X √ X X √ X X X √ X X X X X √ X X √ X X X NA √ √ √

4 MARINA √ X X X X √ √ X X X X √ √ X X √ X X √X √ X √X √X X √X √ X X √ X X X NA X X X

5 CAB √ X X X X X √ X X X X X √ X X X X √ X √ X X X X √ X X X √ X X X NA X X X

6 OTS √ X X X X X √ X X X X X √ X X X X √ X √ X X X X √ X X X √ X X X NA X X X

7 OTC X √ √ NA NA NA X NA NA NA NA NA √ NA √ NA NA NA √ NA NA NA √ NA √ NA NA NA NA NA NA X NA NA NA √X

8 TRB √ NA NA NA NA NA √ NA NA NA NA NA √ NA NA NA NA √ NA √ NA NA NA NA NA NA √ NA NA NA NA NA NA √ √ √X

9 PCG √ √ √ X X X √ X √ X X X √ X X √ NA NA NA √ NA √ √ NA NA √ NA NA NA √ √ √ NA √ √ NA

10 DOT √ X X X X √ √ X X X X √ √ X X X √ √ √X √ X √X √X √X X √ X X X √X √X √X NA NA X NA
11 NPDC √ X X X X X √ X X X X X √ X X X √ √ X X √ X X √ X √ X √ X X X √ NA √ √ X
439

12 IA √ X X X X X √ X X X X X √ X X X x √ X X √ X X √ X X √ √ X X X √ NA √ √ X

13 DOE √ √ √ X X X √ √ √ X X X √ √ X √ X X X √ X X X X X √ X X √ X X X NA X √X √

14 ERC √ √ √ √X √X √X √ x √ √X √X √X √ X X √ X X X √ X X X X √ X X X √ X X X NA X X X

Summary:
√ 12 4 6 0 1 2 12 1 5 0 0 2 14 1 1 5 2 8 1 11 2 1 2 2 4 7 2 2 6 1 2 4 0 5 6 2
X 1 9 7 11 10 9 2 11 7 11 11 9 0 11 12 7 9 4 9 2 9 9 9 8 7 5 10 9 5 10 9 7 0 7 6 8
√X 1 0 0 1 1 1 0 0 0 1 1 1 0 0 0 0 0 0 2 0 0 2 2 1 1 0 0 0 0 1 1 2 0 0 1 2
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 1 1 2 2 2 0 2 2 2 2 2 0 2 1 2 3 2 2 1 3 2 1 3 2 2 2 3 3 2 2 1 14 2 1 2
Blank 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14
 Consolidated Audit Observations on Gender and Development
National Government Sector
Cluster 8 - Agriculture and Environment
Calendar Year 2020

Audit Observations*
Agency Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1 DA-CO  x  x x   x x x x   x x x x  x  x x x x x x  x x x x  N/A  
2 ATI    x x x  x x x x x  x x x x  x  x x x x x x x x x x x  N/A x N/A N/A
3 BAI    x x x  x x x x x  x x x x  x  x x x x x x x x x x x x N/A x x x
4 BAR  x  x x x  x x x x x  x x x x   √x x x  x x  √x x x x  N/A

5 BPI  x x x x x   x x x  x x x   x x  x x  x x   x x x  N/A  
6 BAFE x x x x x x x x x x x x x x x  x x x x x x x x x x x x  N/A N/A x N/A N/A √x
7 BSWM  x  √x √x √x  x x √x x √x   x x x x x  x √x  x x  x x x   x N/A
8 BFAR x x x x x x x x x x x x  x  x x x x x  x  x x x N/A 
9 NFRDI  x x x x x  x x x x x  x x x   x  x x x  x  x x x x x x N/A x x
10 PCAF    x x x  x x  x x  x x x  x x x x  x x x x  x N/A  
11 PhilFIDA  x  √x √x √x  x  √x √x √x  x x x x  x x     x x x  x    N/A x x
440

12 NMIS  x x √x x x x x x √x √x √x  x x x   x  x x √x x √x  x x  x x x N/A x x
13 ACPC  √x  x x x x x x x x x x x x x  x x x x x x x x x x x x x x x N/A 
14 FPA   x   x      N/A 
15 DENR-CO  x x x x x  x x  x x  x x x  x x x x x x x x  x x x  x  N/A N/A 
16 LMB  x  x x x  x  x x x  x x x  x x  x x x x x  x x  x x x N/A  
17 BMB  x  x x x  x  x x x  x x  x  x  x x x x x  x x x x x  N/A x  N/A

18 FMB    x x x   x x x  x x x x  x  x x x x x  x x x   N/A x 

19 NAMRIA  x x x x x   x x x  x x  x x x x  x x  x x   x x x  N/A  
20 NWRB  x x x x x  x x x x x  x x x  x x  x x x x   x x  x x x N/A x x

21 MGB  x  x x x   x x x  x x x x  √x  x x x x √x  x x  x x  N/A  
22 EMB-CO   x √x √x √x   x √x √x √x  x x x  x N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A x N/A N/A N/A N/A  
23 DTI-CO  x  x x x  x  x x x  x x x   √x  x x x x √x x x x x √x √x √x N/A 

24 BOI  x x x x x  x x x x x  x x  x x √x  x x x x x  x x x x x  N/A 
 Audit Observations*
Agency Remarks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
25 CIAP    x x   x x x  x   x x √x  x x x x x x   x x x  N/A 
26 IPOPHL  x x x x x   x x x  x x  x x x  x x x x x x   x x x √x N/A x 
27 DCP    x x x   x x x  x   x x √x  x x x x √x  x x x x x  N/A 

28 PTTC  x x x x x  x x x x x  x x  x x √x  x x x x x  x x x x x  N/A 

29 DAR  x x x x x x x x x x x x  x x ** ** ** ** ** ** ** ** ** ** x x  x N/A x x

Summary:
√ 27 7 16 0 0 1 23 9 11 1 0 1 26 1 3 10 10 12 0 20 3 2 2 5 2 13 7 5 6 4 4 15 0 7 19 0
X 2 20 13 23 25 23 6 20 17 22 24 22 2 27 25 18 18 16 19 7 21 23 22 20 20 13 19 20 22 21 20 11 0 9 6 2
√X 0 1 0 4 3 3 0 0 0 4 3 4 0 0 0 0 0 0 6 0 1 1 1 0 4 0 0 1 0 1 1 2 0 0 1 0
** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0
*** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 0 2 2 1 29 2 1 2
Blank 0 1 0 2 1 2 0 0 1 2 2 2 1 1 1 1 1 1 2 0 2 1 2 2 1 1 1 1 1 1 2 0 0 11 2 25
Total 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29
441

YES  NO  PARTLY  Not Applicable N/A

PART IX

ANNEX
 ANNEX A

List of Agencies which submitted their FSs for FY 2020

National Government Agency Office Address

Congress of the Philippines

1 Senate of the Philippines GSIS Bldg., Financial Center Diokno Blvd., Pasay City
2 Senate Electoral Tribunal Commison On Audit National Capital Region Bldg., IBP Road,
Batasan Hills, Quezon City
3 Commission on Appointments 6/F PNB Financial Center, D. Macapagal Blvd., Pasay City
4 House of Representatives Batasamg Pambansa Complex, Batasan Hills, Quezon City
5 House of Representatives Electoral Tribunal Commision On Audit National Capital Region Bldg., IBP Road
Batasan Hills, Quezon City

Office of the President

6 Office of the President Proper Malacañang Complex, J. P. Laurel St., San Miguel, Manila

Office of the Vice President

7 Office of the Vice President Proper Quezon City Reception House, 100 10th St., Brgy. Mariana, New
Manila, Quezon City

Department of Agrarian Reform

8 Office of the Secretary Elliptical Road, Diliman, Quezon City

Department of Agriculture
9 Office of the Secretary Elliptical Road, Diliman, Quezon City
10 Agricultural Credit Policy Council San Miguel Ave cor. Shaw Blvd., Ortigas Center, Pasig City
11 Bureau of Fisheries and Aquatic Resources 3/F PCA Bldg., Elliptical Road, Diliman, Quezon City
12 Fertilizer and Pesticide Authority FPA Bldg. BAI Compound, Visayas Ave. Diliman, Quezon City
13 National Fisheries Research Development Institute 101 Mother Ignacia Ave., Brgy, Diliman, Quezon City, 1103
Metro Manila
14 National Meat Inspection Service BAI Compound, Visayas Ave.,Quezon City
15 Philippine Carabao Center Science City of Muñoz, Nueva Ecija
16 Philippine Center for Postharvest Development and Central Luzon State University (CLSU) Compound, Science City
Mechanization of Muñoz, Nueva Ecija
17 Philippine Council for Agriculture and Fisheries Apacible Bldg., DA Compund, Elliptical Road, Diliman, Quezon
City,
18 Philippine Fiber Industry Development Authority DA- PCAF Bldg., DA Compound, Elliptical Road, Diliman,
Quezon City

Department of Budget and Management

19 Office of the Secretary General Solano St., San Miguel, Manila
20 Government Procurement Policy Board-Technical Support Raffles Corporate Center, F. Ortigas Jr. Road, Ortigas, Pasig City
Office
21 Procurement Service PS DBM Compound, RR Road, Cristobal St., Paco, Manila

Department of Education
22 Office of the Secretary DepEd Complex, Meralco Ave., Pasig City
23 Early Childhood Care and Development Council 4/F Belvedere Tower, No. 15 San Miguel Ave., Ortigas Center,
Pasig City
24 National Book Development Board 3rd and 4th Flrs., Regalado Hive Bldg., Regalado Ave., Fairview,
Quezon City
25 National Council for Children’s Television Rooms 214-215, 2/F, Mabini Building, Department of Education
Complex, Meralco Avenue, Pasig City
26 National Museum Executive House Bldg., P. Burgos St., Taft Ave., Manila
27 Philippine High School for the Arts National Arts Center, Mt. Makiling, Los Baños, Laguna

State Universities and Colleges

28 University of the Philippines System
29 Eulogio "Amang" Rodriguez Institute of Science &
Technology
30 Marikina Polytechnic College
31 Philippine Normal University
32 Philippine State College of Aeronautics
33 Polytechnic University of the Philippines
34 Rizal Technological University
35 Technological University of the Philippines
36 Don Mariano Marcos Memorial State University
37 Ilocos Sur Polytechnic State College
38 Mariano Marcos State University
39 North Luzon Philippine State College
40 Pangasinan State University
Diliman, Quezon City
Nagtahan St., Sampaloc, Manila
Chanyungco St., Sta. Elena, Marikina City
Taft Ave. cor Ayala Blvd., Ermita, Manila
Piccio Garden, Villamor, Pasay City
Sta. Mesa, Manila
Boni Ave., Mandaluyong City
Ayala Blvd. cor. San Marcelino St., Ermita, Manila
La Union
Municipality of Sta. Maria, Ilocos Sur
City of Batac, Ilocos Norte
San Nicolas, Candon City, Ilocos Sur
Municipality of Lingayen, Pangasinan

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41 University of Northern Philippines Vigan City, Ilocos Sur

42 Abra State Institute of Science and Technology Lagangilang, Abra
43 Apayao State College Malama, Conner, Apayao
44 Benguet State University La Trinidad, Benguet
45 Ifugao State University Lamut, Ifugao
46 Kalinga State University Tabuk, Kalinga
47 Mountain Province State Polytechnic College Poblacion, Bontoc, Mountain Province
48 Batanes State College Basco, Batanes
49 Cagayan State University Tuguegarao City, Cagayan
50 Isabela State University Echague, Isabela
51 Nueva Vizcaya State University Echague, Isabela; Bayombong, Nueva Vizcaya
52 Quirino State University Diffun, Quirino
53 Aurora State College of Technology Sitio Dicaloyungan, Brgy. Zabali, Baler, Aurora
54 Bataan Peninsula State University Balanga City, Bataan
55 Bulacan Agricultural State College San Ildefonso, Bulacan
56 Bulacan State University Manila North Road, Brgy. Guinhawa, Malolos City, Bulacan
57 Central Luzon State University Science City of Muñoz, Nueva Ecija
58 Don Honorio Ventura Technological State University Bacolor, Pampanga
59 Nueva Ecija University of Science and Technology Gen. Tinio St., Cabanatuan City
60 Pampanga State Agricultural University Magalang, Pampanga
61 Philippine Merchant Marine Academy Brgy. San Nicolas, San Narciso, Zambales
62 President Ramon Magsaysay State University Iba, Zambales
63 Tarlac Agricultural University Camiling, Tarlac
64 Tarlac State University Tarlac City
65 Batangas State University Rizal Ave. Extension, Batangas City
66 Cavite State University Indang, Cavite
67 Laguna State Polytechnic University Sta. Cruz, Laguna
68 Southern Luzon State University Lucban, Quezon
69 University of Rizal System Morong, Rizal
70 Marinduque State College Tanza, Boac, Marinduque
71 Mindoro State University (Mindoro State College of Victoria, Oriental Mindoro
Agriculture and Technology)
72 Occidental Mindoro State College San Jose, Occidental Mindoro
73 Palawan State University Puerto Princesa City, Palawan
74 Romblon State University Odiongan, Romblon
75 Western Philippines University San Juan, Aborlon, Palawan
76 Bicol State College of Applied Sciences and Technology Penafrancia Ave, Naga, Camarines Sur
77 Bicol University Legazpi City
78 Camarines Norte State College Daet, Camarines Norte
79 Camarines Sur Polytechnic Colleges Nabua, Camarines Sur
80 Catanduanes State University Virac, Catanduanes
81 Central Bicol State University of Agriculture Pili, Camarines Sur
82 Dr. Emilio B. Espinosa Sr. Memorial State College of Mandaon, Masbate
Agriculture and Technology
83 Partido State University Goa, Camarines Sur
84 Sorsogon State College Sorsogon City
85 Aklan State University Banga, Aklan
86 Capiz State University Roxas City, Capiz
87 Carlos C. Hilado Memorial State College Talisay City, Negros Occidental
88 Central Philippines State University Kabankalan City, Negros Occidental
89 Guimaras State College Buenvista, Guimaras
90 Iloilo State University of Science and Technology Barotac Nuevo, Iloilo
91 Northern Iloilo State University (Northern Iloilo Estancia, Iloilo
Polytechnic State College)
92 Northern Negros State College of Science and Technology Sagay City, Negros Occidental
93 University of Antique Santiago Lotilla St., Sibalom, Antique
94 West Visayas State University Luna St., La Paz, Iloilo City
95 Iloilo State University of Science and Technology (Iloilo Burgos St., La Paz, Iloilo City
State College of Fisheries)
96 Bohol Island State University #76 Carlos P. Garcia North Ave., Tagbiliran City
97 Cebu Normal University Osmeña Boulevard, Cebu City
98 Cebu Technological University cor. M.J. Cuenco Ave. and R. Palma St., Cebu City
99 Negros Oriental State University Kagawasan Ave., Dumaguete City
100 Siquijor State College North Poblacion, Larena, Siquijor
101 Eastern Samar State University Borongan, Eastern Samar
102 Eastern Visayas State University Aquino Ave., Tacloban City, Leyte
103 Leyte Normal University Tacloban City, Leyte
104 Naval State University Naval, Biliran
105 Northwest Samar State University Calbayog City, Samar
106 Palompon Polytechnic State University (Palompon Institute Evangelista St., Palompon, Leyte
of Technology)
107 Samar State University Catbalogan, Samar

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108 Southern Leyte State University Sogod, Southern Leyte

109 University of Eastern Philippines University Town, Catarman, Northern Samar
110 Visayas State University Visca, Baybay City, Leyte
111 J. H. Cerilles State College Mati, San Miguel, Zamboanga del Sur
112 Jose Rizal Memorial State University Dapitan City, Zamboanga del Norte
113 Western Mindanao State University Normal Road, San Jose, Zamboanga City
114 Zamboanga City State Polytechnic College R.T. Lim Bld., Baliwasan Seaside, Baliwasan, Zamboanga City
115 Zamboanga State College of Marine Science and Fort Pilar, Zamboanga City
Technology
116 Bukidnon State University Fortich St., Malaybalay City, Bukidnon
117 Camiguin Polytechnic State College Balbagon, Mambajao, Camiguin
118 Central Mindanao University University Town, Musuan, Maramag, Bukidnon
119 MSU - Iligan Institute of Technology Andres Bonifacio Ave., Tibanga, Iligan City
120 Northwestern Mindanao State College Science and Brgy. Labuyo, Tangub City, Misamis Occidental
Technology
121 University of Science and Technology of Southern Claro M. Recto Ave., Lapasan, Cagayan de Oro City
Philippines – Cagayan de Oro Campus
122 University of Science and Technology of Southern Magsaysay St., Poblacion, Claveria, Misamis Oriental
Philippines – Claveria Campus
123 Compostela Valley State College Purok 10, Poblacion, Compostela, Davao de Oro
124 Davao del Norte State College New Visayas, Panabo City, Davao del Norte
125 Davao Oriental State College of Science and Technology JMarfori, Mati, Davao Oriental
126 Davao del Sur State College Brgy. Matti, Digos City, Davao del Sur
127 Southern Philippines Agri-Business and Marine Aquatic Malita, Davao del Sur
School of Technology
128 University of Southeastern Philippines Iñigo St., Obrero, Davao City
129 Cotabato State University (Cotabato City State Polytechnic Sinsuat Ave., Maguindanao, Cotabato City
College)
130 Cotabato Foundation College of Science and Technology Doroluman, Arakan, Cotabato
131 Sultan Kudarat State University Tacurong City, Sultan Kudarat
132 University of Southern Mindanao Kabacan, North Cotabato
133 Agusan del Sur State College of Agriculture and Bunawan, Agusan del Sur
Technology
134 Caraga State University Ampayon, Butuan City, Agusan del Norte
135 Surigao del Sur State University Rosario, Tandag, Surigao del Sur
136 Surigao State College of Technology Narciso St., Surigao City
137 Adiong Memorial Polytechnic State College Dit-saan Ramain, Lanao del Sur
138 Basilan State College Sumandang, Isabela City, Basilan
139 Mindanao State University Marawi City, Lanao del Sur
140 MSU-Tawi-Tawi College of Technology and Sanga-Sanga, Bongao, Tawi-Tawi
Oceanography
141 Sulu State College Capitol Site, Jolo, Sulu
142 Tawi-Tawi Regional Agricultural College Bongao, Tawi-Tawi

Department of Energy
143 Office of the Secretary 2/F PNOC Bldg. V, Energy Center, Rizal Drive, 34th St.,
Bonifacio Global City, Taguig City

Department of Environment and Natural Resources

144 Office of the Secretary
145 Environmental Management Bureau
146 Mines and Geo-Sciences Bureau
147 National Mapping and Resources Information Authority
148 National Water Resource Board
149 Palawan Council for Sustainable Development Staff
Visayas Ave., Diliman, Quezon City
DENR Compound, Visayas Ave., Diliman, Quezon City
Vasra, Diliman, Quezon City
Lawton Ave., Fort Andres Bonifacio, Taguig
8/F, NIA Bldg., EDSA, Diliman
PCSD Bldg. Sports Complex Road, Sta. Monica Heights, Puerto
Princesa City, Palawan

Department of Finance
150 Office of the Secretary 6/F DOF Bldg., Roxas Blvd. cor. Pablo Ocampo St., Manila
151 Bureau of Customs Bureau of Customs Bldg., Port Area, South Harbor, Manila
152 Bureau of Internal Revenue Rm. 405, BIR National Office Bldg., Diliman, Quezon City
153 Bureau of Local Government Finance 8/F EDPC Bldg., BSP Complex, Roxas Blvd., Manila
154 Bureau of the Treasury Ayuntamiento Bldg., Soriano Ave., Intramuros, Manila
155 Central Board of Assessment and Appeals 7/F EDPC Bldg., BSP Complex, Roxas Blvd., Manila
156 Insurance Commission 1071 United Nations Ave., Ermita, Manila
157 National Tax Research Center Harbor Centre II, 23rd cor. A. C. Delgado St., Port Area, Manila
158 Privatization Management Office 3/F North Davao Mining Corp. Bldg., 104 Gamboa St., Legaspi
Village, Makati City
159 Securities and Exchange Commission SEC Main Office Secretarial Bldg., PICC Complex, Roxas Blvd.,
Pasay
160 Municipal Development Fund Office Palacio del Gobernador, Gen. Luna St., Intramuros, Manila

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Department of Foreign Affairs

161 Office of the Secretary Roxas Blvd., Pasay City
162 Foreign Service Institute 5/F DFA Bldg., Roxas Blvd, Pasay City
163 Technical Cooperation Council of the Philippines 6/F DFA Bldg., Roxas Blvd, Pasay City
164 UNESCO National Commission of the Philippines Ground Flr. DFA Bldg., Roxas Blvd, Pasay City

Department of Health
165 Office of the Secretary San Lazaro Compound, Rizal Ave., Sta. Cruz, Manila
166 National Nutrition Council Nutrition Bldg., Chino Roces Ave., Taguig City

Department of Human Settlements and Urban Development

167 Office of the Secretary DHSUD Bldg., Kalayaan Ave. cor. Mayaman St., Diliman,
Quezon City
168 Human Settlements Adjudication Commission HLURB Bldg., Kalayaan Ave. cor. Mayaman St., Diliman,
Quezon City

Department of Information and Communications Technology

169 Office of the Secretary
170 Cybercrime Investigation and Coordinating Center
171 National Privacy Commission
172 National Telecommunications Commission
C.P Garcia Ave., Diliman, Quezon City
49 Don. A. Roces Ave., Brgy. Paligsahan, Quezon City
3rd Level Core G, GSIS Headquarters Bdlg., Financial Center,
Pasay City
BIR Road, East Triangle, Diliman, Quezon City

Department of the Interior and Local Government

173 Office of the Secretary DILG-NAPOLCOM Center, EDSA cor. Quezon Ave., Quezon
City
174 Bureau of Fire Protection Agham Road, Sitio San Roque, Brgy. Bagong Pag-Asa, Quezon
City
175 Bureau of Jail Management and Penology 144 Mindanao Ave., Quezon City
176 Local Government Academy 8/F & 9/F Agustin I Bldg., F. Ortigas Jr. Road Ortigas Center,
Pasig City
177 National Commission on Muslim Filipinos 79 Jocfer Annex Bldg., Commonwealth Ave., Diliman, Quezon
City
178 National Police Commission DILG-NAPOLCOM Center, EDSA cor. Quezon Ave., Quezon
City
179 National Youth Commission 3/F, West Insula Bldg., 135 West Ave. cor. EDSA, Quezon City
180 Philippine Commission on Women J. P. Laurel St., San Miguel, Manila
181 Philippine National Police PNP National Headquarters Camp General Crame, Quezon City
182 Philippine Public Safety College 505 Al-Fer Bldg., B. Serrano Ave. cor. EDSA, Quezon City

Department of Justice
183 Office of the Secretary DOJ Bldg., Padre Faura St., Ermita, Manila
184 Bureau of Corrections NBP Reservation, Muntinlupa City
185 Bureau of Immigration 2/F BOI Bldg., Magallanes Drive, Intramuros, Manila
186 Land Registration Authority East Ave. cor. NIA Road,Diliman, Quezon City
187 National Bureau of Investigation NBI Bldg., Taft Ave., Ermita, Manila
188 Office of the Government Corporate Counsel 3/F MWSS Admin. Bldg., Katipunan Ave., Balara, Quezon City
189 Office of the Solicitor General OSG Bldg., 134 Amorsolo St., Legaspi Village, Makati City
190 Parole and Probation Administration DOJ Agencies Bldg., NIA Road cor. East Ave., Diliman, Quezon
City
191 Presidential Commission on Good Government 82 IRC Bldg., Epifanio de los Santos Ave., EDSA, Mandaluyong
City
192 Public Attorney’s Office DOJ Agencies Bldg., NIA Road cor. East Ave., Diliman, Quezon
City

Department of Labor and Employment

193 Office of the Secretary DOLE Bldg., Muralla cor. Gen. Luna Sts., Intramuros, Manila
194 Institute for Labor Studies 6/F BF Condominium Bldg., A. Soriano Ave. cor. Solana St.,
Intramuros, Manila
195 National Conciliation and Mediation Board 4/F-6/F Arcadia Bldg., Quezon Ave., Quezon City
196 National Labor Relations Commission Ben-lor Bldg., 1184 Quezon Ave., Quezon City
197 National Maritime Polytechnic Brgy. Cabalawan, Tacloban City
198 National Wages and Productivity Commission 2/F & 3/F DY International Bldg., Gen. Malvar cor. San Marcelino
St., Malate, Manila
199 Philippine Overseas Employment Administration POEA Bldg., Ortigas Ave. cor. EDSA, Mandaluyong City
200 Professional Regulation Commission P. Paredes St. cor. N. Reyes St., Sampaloc, Manila
201 Overseas Workers Welfare Administration OWWA Center, 7th St. cor. F.B. Harrison St, Pasay City

Department of National Defense

202 Office of the Secretary Camp General Emilio Aguinaldo, Quezon City
203 Government Arsenal Camp General Antonio Luna, Limay, Bataan
204 National Defense College of the Philippines General Arturo Enrile Ave., Camp Gen. Emilio Aguinaldo,
Quezon City

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205 Office of Civil Defense Camp General Emilio Aguinaldo, Quezon City
206 Philippine Veterans Affairs Office Veterans Cmpd., Camp General Emilio Aguinaldo, Quezon City
207 Veterans Memorial Medical Center North Ave., Diliman, Quezon City
208 Veterans Golf Club Mindanao Ave., Project 6, Quezon City
209 AFP Commissary and Exchange Service Camp Emilio Aguinaldo, Quezon City
210 Philippine Army (Land Forces) Fort Andres Bonifacio, Makati City
211 Philippine Air Force (Air Force) Col. Jesus Villamor Airbase, Pasay City
212 Philippine Navy (Naval Force) Roxas Blvd., Manila
213 General Headquarters, AFP and AFP Wide Service Camp General Emilio Aguinaldo, Quezon City

Department of Public Works and Highways

214 Office of the Secretary Bonifacio Drive Port Area, 652 Zone 068, Manila

Department of Science and Technology

215 Office of the Secretary General Santos Ave., Bicutan, Taguig City
216 Advanced Science and Technology Institute ASTI Bldg., UP Technology Park Complex, C.P. Garcia Ave.,
Diliman, Quezon City
217 Food and Nutrition Research Institute FNRI Bldg., DOST Compound, General Santos Ave., Bicutan,
Taguig City
218 Forest Products Research and Development Institute Narra Road, Forestry Campus College, Los Baños, Laguna
219 Industrial Technology Development Institute DOST Compound, General Santos Ave., Bicutan, Taguig City
220 Metals Industry Research and Development Center MIRDC Compound, General Santos Ave., Bicutan, Taguig City
221 National Academy of Science and Technology 3rd Level Philippine Science Heritage Center DOST Complex,
Bicutan, Taguig City
222 National Research Council of the Philippines General Santos Ave., Bicutan, Taguig City
223 Philippine Atmospheric, Geophysical and Astronomical Science Garden Complex Agham Road, Diliman, Quezon City
Services Administration
224 Philippine Council for Agriculture, Aquatic and Natural Paseo de Valmayor, Timugan, Economic Garden Los Baños,
Resources Research and Development Laguna
225 Philippine Council for Health Research and Development 3/F DOST Main Bldg. General Santos Ave., Bicutan, Taguig City
226 Philippine Council for Industry, Energy and Emerging 4th and 5th Level Science Heritage Bldg., Science Community
Technology Research and Development Complex, General Santos Ave., Bicutan, Taguig City
227 Philippine Institute of Volcanology and Seismology PHIVOLCS Bldg., C.P. Garcia Ave., U.P. Campus, Diliman,
Quezon City
228 Philippine Nuclear Research Institute Commonwealth Ave., Diliman, Quezon City
229 Philippine Science High School System Agham Road, Diliman, Quezon City
230 Philippine Textile Research Institute General Santos Ave., Bicutan, Taguig City
231 Science Education Institute 2nd Level, Science Heritage Bldg., Sibol St., DOST Compound,
General Santos Ave., Bicutan, Taguig City
232 Science and Technology Information Institute STII Bldg. DOST Complex, General Santos Ave., Bicutan, Taguig
City
233 Technology Application and Promotion Institute DOST Complex, General Santos Ave., Bicutan, Taguig City

Department of Social Welfare and Development

234 Office of the Secretary DSWD Bldg., Contitution Hills, Batasan Complex, Quezon City
235 Council for the Welfare of Children 10 Apo St., Sta. Mesa Heights, Quezon City
236 Inter-Country Adoption Board 2 Chicago St. cor. Ermin Garcia St., Brgy. Pinagkaisahan, Cubao,
Quezon City
237 National Council on Disability Affairs NCDA Bldg., Isidora St., Barangay Holy Spirit, Quezon City
238 Juvenile Justice and Welfare Council 56 Matimtiman St., Quezon City
239 National Anti-Poverty Commission Water System Training Center, Local Water Utilities
Administration, MWSS-LWUA Complex, Katipunan Ave.,
Quezon City
240 National Commission on Indigenous Peoples 2/F N. dela Merced Bldg. cor. West & Quezon Ave., Quezon City
241 Presidential Commission For The Urban Poor 9/F, Sunnymede IT Center, Quezon Ave., South Triangle, Quezon
City

Department of Tourism
242 Office of the Secretary The New DOT Bldg., 351 Senator Gil Puyat Ave., Makati City
243 Intramuros Administration 5/F Palacio del Gobernador, General Luna St., Intramuros, Manila
244 National Park Development Committee Rizal Park, Kalaw Ave., Ermita, Manila
245 Tourism Promotions Board 4/F Legaspi Towers 300, Roxas Blvd., Malate, Manila

Department of Trade and Industry

246 Office of the Secretary Industry & Investments Bldg, 385 Sen. Gil J. Puyat Ave., Makati
City
247 Board of Investments Industry & Investments Bldg., 385 Sen. Gil J. Puyat Ave., Makati
City
248 Construction Industry Authority of the Philippines 5/F Executive Center Bldg., 369 Sen. Gil J. Puyat Ave., Makati
City
249 Design Center of the Philippines G/F PTTC Bldg., International Trade Center Complex, Roxas
Blvd., cor. Sen. Gil Puyat Ave., Pasay

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250 Intellectual Property Office 28 Upper McKinley Road, McKinley Hill Town Center Fort
Bonifacio, Taguig City
251 Philippine Trade Training Center International Trade Center Complex, Roxas Blvd., cor. Sen. Gil J.
Puyat Ave., Pasay City
252 Cooperative Development Authority 5/F CDA Bldg., 827 Brgy. Immaculate Concepcion, Aurora Blvd.,
Quezon City
253 Technical Education and Skills Development Authority TESDA Administrative Bldg., TESDA Complex, East Service
Road, South Superhighway, Taguig

Department of Transportation
254 Office of the Secretary Apo Court along Sergio Osmeña Sr. Clark Freeport Zone,
Pampanga
255 Civil Aeronautics Board OLD, NAIA Road, Pasay City
256 Maritime Industry Authority MARINA Bldg., Bonifacio Drive cor. 20th St., Port Area, Manila
257 Office of Transportation Cooperatives 5th Floor, Ben-Lor Building, Quezon Avenue, Quezon City
258 Office for Transportation Security Aurora Blvd, Malibay, Pasay
259 Philippine Coast Guard 139 25th St., Port Area, Manila

National Economic and Development Authority

260 Office of the Director General 12 St., Josemaria Escriva Drive, Ortigas Center, Pasig City
261 Commission on Population Senator Neptali A. Gonzales St., Welfareville Compound,
Mandaluyong, Manila
262 Philippine National Volunteer Service Coordinating Philippine Sugar Center Bldg., North Ave., Quezon City
Agency
263 Public-Private Partnership Center of the Philippines 8/F, One Cyberpod Centris, EDSA cor. Quezon Ave., Brgy.
Piñahan, Quezon City
264 Philippine Statistical Research and Training Institute J & S Bldg., 104 Kalayaan Ave, Diliman, Quezon City
265 Philippine Statistics Authority 2/F TAM Bldg., PSA Complex, East Ave., Diliman, Quezon City
266 Tariff Commission 4/F West Insula, West Ave., Quezon City

Presidential Communications Operations Office

267 Presidential Communications Operations Office Proper 2/F New Executive Bldg. (NEB), Malacañang Compound, Jose P.
Laurel Sr., San Miguel, Manila
268 Bureau of Broadcast Services 4/F Government Media Center Bldg., VARSA, Quezon City
269 Bureau of Communications Services 310 Philippine Cancer Society Bldg., San Rafael St., Malacañang
Complex, San Miguel, Manila
270 National Printing Office EDSA cor. NIA North Road, Diliman, Quezon City
271 News and Information Bureau NIB Bldg., Malacañang Compound, Jose P. Laurel Sr., San
Miguel, Manila
272 Philippine Information Agency PIA Bldg., Visayas Ave., Diliman, Quezon City
273 Presidential Broadcast Staff (RTVM) RTVM Bldg., J. P. Laurel St., Malacañang, Manila

Other Executive Offices

274 Anti-Money Laundering Council 5/F EDPC Bldg., Bangko Sentral ng Pilipinas Complex Mabini
cor. Vito Cruz St., Malate, Manila
275 Anti-Red Tape Authority 395 Sen. Gil J. Puyat Ave, Makati, Metro Manila
276 Climate Change Commission 6th Floor, First Residences Building, 1557 J.P. Laurel Street,
Malacañang Complex, San Miguel, Manila
277 Commission on Filipino Overseas City Gold Center, 1345 Pres. Quirino Ave. cor. Osmeña Highway,
Paco, Manila
278 Commission on Higher Education Higher Education Development Center (HEDC) Bldg., CP Garcia
Ave., Diliman, Quezon City
279 Commission on the Filipino Language 2/F Watson Bldg., 1610 J. P. Laurel St., Malacañang Palace, San
Miguel, Manila
280 Dangerous Drug Board 3/F DDB-PDEA Bldg., National Government Center, NIA Road,
Brgy. Pinyahan, Quezon City
281 Davao Integrated Development Program G/F JFM Coporate Center 848, Atis St., Juna Subdivision, Matina,
Davao City
282 Energy Regulatory Commission 16/F Pacific Center Bldg., San Miguel Ave., Ortigas Center 1600,
Pasig City
283 Film Development Council of the Philippines 26/F, 855 T.M. Kalaw St., Ermita, Manila
284 Games and Amusement Board 2/F Legaspi Towers, 200 Paseo de Roxas St., Legaspi Village,
Makati City
285 Governance Commission for Government-Owned or 3/F Citibank Centre, Citibank Plaza, Paseo de Roxas Ave., Makati
Controlled Corporation City
286 Mindanao Development Authority Old Bangoy Int’l Airport, Old Airport Road, Davao City
287 Movie and Television Review and Classification Board #18 MTRCB Bldg., Timog Ave., Quezon City
288 National Commission for Culture and the Arts – Proper 633 General Luna St., Intramuros, Manila
289 National Commission of Senior Citizens Rm. M122, Mabini Hall, Malacañang, Manila
290 NCCA – National Historical Commission of the National Historical Commission of the Philippines (NHCP) Bldg.,
Philippines T.M. Kalaw St., Manila
291 NCCA – National Library of the Philippines T. M. Kalaw St., Ermita, Manila
292 NCCA – National Archives of the Philippines VELCO Centre, R.S. Oca cor. A.C. Delgado St., Port Area, Manila

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293 National Intelligence Coordinating Agency No. 5, V. Luna Road cor. East Ave., Quezon City
294 National Security Council NICA Compound, V. Luna Road cor. East Ave., Diliman, Quezon
City
295 Office of the Presidential Adviser on the Peace Process 7/F, Agustin Bldg., F. Ortigas Jr. Road, Ortigas Center, Pasig
296 Optical Media Board 35 Scout Limbaga, Brgy. Laging Handa, Quezon City
297 Philippine Competition Commission 25/F Vertis North Corporate Center I, North Ave., Quezon City
298 Philippine Drug Enforcement Agency PDEA Bldg., NIA Road, National Government Center, Brgy.
Pinyahan, Quezon City
299 Philippine Racing Commission 4/F Electra House, Herrera-Esteban Sts., Legaspi Village, Makati
City
300 Philippine Space Agency University Laboratory for Small Satellites and Space Engineering
Systems Building, Velasquez St., UP Diliman, Quezon City
301 Philippine Sports Commission Rizal Memorial Sports Complex, Pablo Ocampo Sr. St., Malate,
Manila
302 Presidential Legislative Liaison Office 2/F Annex New Executive Bldg., Malacañang, Manila
303 Presidential Management Staff AAP Tower #683 Aurora Blvd., Quezon City

Joint Legislative Executive Council

304 Legislative Executive Advisory Council Ground Flr., NEDA Sa Pasig Bldg., Escriva Drive, Pasig City

The Judiciary
305 Supreme Court of the Philippines and the Lower Courts Padre Faura St. cor. Taft Ave., Ermita, Manila
306 Presidential Electoral Tribunal Padre Faura St. cor. Taft Ave., Ermita, Manila
307 Sandiganbayan Centennial Bldg. Commonwealth Ave., cor. Batasan Road,
Quezon City
308 Court of Appeals Maria Orosa St., Ermita, Manila
309 Court of Tax Appeals Agham Road, Government Center, Diliman, Quezon City

Constitutional Offices
Civil Service Commission
310 Civil Service Commission Constitutional Hills, Batasan Complex, Diliman Quezon City
311 Career Executive Service Board No. 3, Marcelino St., Holy Spirit Drive, Isidora Hills, Diliman,
Quezon City
312 Commission on Audit Commonwealth Ave., Quezon City
313 Commission on Elections Palacio del Gobernador, General Luna St., Intramuros, Manila
Commission on Human Rights
314 Commission on Human Rights SAAC Bldg., UP Complex, Commonwealth Ave., Diliman,
Quezon City
315 Human Rights Violations Victims' Memorial Commission SAAC Bldg., UP Complex, Commonwealth Ave., Diliman,
Quezon City
316 Office of the Ombudsman Ombudsman Bldg., Agham Road, North Triangle, Diliman,
Quezon City

Metro Manila Development Authority

317 Metro Manila Development Authority MMDA Bldg., EDSA cor. Orense St., Guadalupe Nuevo, Makati
City

Government Corporations maintaining Special Account in the General Fund

318 Cultural Center of the Philippines
319 Development Bank of the Philippines
320 National Tobacco Administration
321 Philippine Coconut Authority
322 Philippine Rice Research Institute
323 Toll Regulatory Board
CCP Complex, Roxas Boulevard, Magdalena Jalandoni, Malate,
Pasay
Sen. Gill J. Puyat Ave. cor. Makati Ave., Makati City
Sct. Reyes cor Panay Ave., Quezon City
Elliptical Road, Diliman, Quezon City
Maligaya Science City of Munoz, Nueva Ecija
5th Floor, Columbia Tower, Ortigas Center Pasig City

448
COMMISSION ON AUDIT
KEY OFFICIALS
COMMISSION PROPER

Michael G. Aguinaldo
Chairperson

Roland C. Pondoc
Commissioner

Assistant Commissioners

Villa DJ. Bernaldo

Luzvi Pangan Chatto

Winnie Rose H. Encallado

Susan P. Garcia

Alexander B. Juliano

Nilda B. Plaras

Fortunata M. Rubico

Cora Lea A. Dela Cruz

Roland A. Rey

Manolo C. Sy
 GOVERNMENT ACCOUNTANCY SECTOR

Office of the Assistant Commissioner

Villa DJ. Bernaldo
Assistant Commissioner
Atty. Juanita C. Fuggan State Auditor V
Ma. Belen L. Estuaria Chief Administrative Officer
Maricel S. Ampoc Administrative Officer II
Shekinah Roebec M. Osorio Administrative Officer II
Magdalena M. Gaviola Administrative Aide IV

Government Accountancy Office

Office of the Director

Carmelita O. Antasuda
Director IV

Editha M. Ramirez
Director III

Luisa S. Nadonga Supervising Administrative Officer

Mary Jane S. Liberato Administrative Officer IV
Teddy N. Alejandro Administrative Aide IV

General Accounts Services - National I

Anicia H. Guillermo
State Auditor V
Visitacion T. Corpuz State Auditor III
Narcisa S. dela Rosa State Auditor III
Carol M. Orpia State Auditor II
Bryan B. Viloria State Auditor II
Jay R M. Morales State Auditor I

General Accounts Services - National II

Thelma F. Panganiban
State Auditor V
Elizabeth P. Quiban-Castro State Auditor III
Joven L. Recto State Auditor III
Ma. Corazon D. Eguia State Auditor II
Joseph Emmanuel I. Romero State Auditor II
Erwin C. Santos State Auditor I

Public Debt and Miscellaneous Accounts Services

Marilyn C. Bibat
State Auditor V
Elmer M. Grande State Auditor IV
Jane M. Cunanan State Auditor III
Maribel G. Cablayan State Auditor III
Luthor Ace C. Villalva State Auditor I
Jannette N. Caluya State Auditor I
 Local Government Accounts Services
Avelina G. Marquez
State Auditor IV

Lorelei L. Datu State Auditor IV

Jose Jayson L. Medel State Auditor III
Aida A. Donasco State Auditor III
Elizabeth D. Ducay State Auditor II
Earvin John R. Bote State Auditor II
Ana Liza G. Balares State Auditor I

Corporate Government Accounts Services

Ma. Lourdes D. Marayan
State Auditor IV
Princess B. Somera State Auditor III
Zenaida P. Balmes State Auditor III
Zosimo C. Gamanos, Jr. State Auditor II
Gillina R. Misola State Auditor I
Francis Alain P. Inovero State Auditing Examiner II

Accounting Systems Development and Other Services Office (ASDOSO)

Office of the Director

Maria Realiza R. Ysmael

Director IV

Annabelle A. Puserio
Director III

Ana Marie D. Gellecanao Supervising Administrative Officer

Lailah D. Chua Administrative Officer IV
Berlin M. Quevedo Administrative Officer II
Marissa D. Labajan Administrative Aide IV
Arjay T. Melitado Administrative Aide IV

Accounting Systems Development and Other Services – National

Vanessa Donnabel M. Lorenzo
State Auditor V
Pretizel Ivy T. Arteche State Auditor III
Barby Ann G. Laceda State Auditor I
Santiago Francisco V. Sagad III State Auditing Examiner II
Dessaries T. Gow Administrative Aide VI

Accounting Systems Development and Other Services - Corporate

Annabella P. Gabiran
State Auditor V
Arnel A. Manalastas State Auditor III
Ma. Yvonne J. Regala State Auditor II
Ester Joey M. Pintucan State Auditing Examiner II
Lowela A. Gudes State Auditing Examiner II
Rozel Anne B. Sitjar State Auditing Examiner II
Accounting Systems Development and Other Services - Local
Jorgen Z. Fulleros
State Auditor V

Cristina C. Gungon State Auditor III

Xezarajjah S. Villanueva State Auditor II
Rochelle H. Linsangan State Auditing Examiner II
Mhay L. Ondoy Administrative Officer II

Technical Assistance and Help Desk Services

Romeo C. Cruz
State Auditor V

Michelle M. Gagarra Information Technology Officer I

Jenica V. Edoria State Auditor I
Dianne Nicole G. Gabriel Administrative Officer IV
Gabriel B. Mercado Computer Maintenance Technologist II
Jeline G. Esase Computer Maintenance Technologist I
Kayla Mae B. Servigon Administrative Officer II
Ma. Karizza A A. Cabildo Administrative Officer II
Lev Justin E. Saclayan Administrative Officer II
Sarah Joy M. Lambino Administrative Officer II
Lara Jane DT. Malab Administrative Aide VI
Christian L. Baturi Administrative Aide VI
 NATIONAL GOVERNMENT SECTOR
Susan P. Garcia
Assistant Commissioner

Cluster 1 – Executive Offices

Sofia C. Gemora – Director IV
Edna P. Salaguban – Director III

Cluster 2 – Oversight and Public Debt Management Agencies

Daria B. Sison – Director III, Officer In-Charge
Ma. Theresa B. Ferreros – Director III

Cluster 3 – Legislative, Judiciary and Constitutional Offices

Pearl L. Ramos – Director IV
Emilio A. Asi, Jr. – Director III

Cluster 4 – Defense and Security

Michael R. Bacani – Director IV
Melissa Grace B. Martinez – Director III

Cluster 5 – Education and Employment

Elinore C. Lavilla – Director IV
Elenita C. Abesamis – Director III

Cluster 6 – Health and Science

Martha Roxana C. Sese – Director IV
Milagros L. Deauna – State Auditor V, Acting Assistant Director

Cluster 7 – Public Works, Transport and Energy

Lucila M. Isidro – Director IV
Marivel C. Broñola – Director III

Cluster 8 – Agriculture and Environment

Maribeth F. De Jesus – Director IV
Corazon S. Rocas – State Auditor V, Acting Assistant Director