EXECUTIVE SUMMARY

A. Introduction

The Philippine National Police (PNP) was established in 1991, by virtue of

Republic Act (RA) 6975, known as “An Act Establishing the Philippine National Police
under a reorganized Department of the Interior and Local Government and Other
Purposes”. The said Republic Act (RA) was amended by RA 8551 and further amended
by RA 9708. PNP, a highly effective and competent police force that is national in scope
and civilian in character was envisioned to be a community and service oriented agency
responsible for the maintenance of peace and order and public safety. Its mission is to
enforce law, prevent and control crimes, maintain peace and order and ensure public
safety and internal security with the active support of the community.

During the year, PNP is headed by the PNP-Chief, Police Director General
(PDG) Alan la Madrid Purisima and assisted by Deputy PNP Chief for Administration,
Police Deputy Director General (PDDG) Felipe L. Roxas, Deputy PNP Chief for
Operation, PDDG Leonardo A. Espina and the Chief Directorial Staff PDDG Marcelo
P. Garbo who acts as the chief operating officer and who coordinates, supervises and
directs the 10 Directorial Staffs, with the support of 10 Administrative and 10
Operational units; and (b) 17 Police Regional Offices (PROs) nationwide corresponding
to the regional subdivisions of the country to include the NCRPO, PROs 1, 2, 3, 4A
(CALABARZON), 4B (MIMAROPA), 5, 6, 7, 8, 9, 10, 11, 12, 13 (CARAGA),
Cordillera (COR) and ARMM.

The PNP Chief is also assisted by the Internal Affairs Service (IAS) to ensure the
operational readiness of the police and investigate infractions of the regulations
committed by members of the PNP, and the Program Management Office (PMO) which
serves as management facility and idea center for the PNP Integrated Transformation
Program. For police training, human resource development and continuing education, the
Philippine Public Safety College together with the Police National Training Institute
(PNTI) is the premier educational institution of all PNP personnel. Also, PNTI has direct
supervision and administrative control of the Philippine National Police Academy
(PNPA).

For CY 2014, the total manpower complement of PNP is 157,806 out of the
177,730 authorized for CY 2014, broken down as follows:

Particulars Authorized Actual Variance

Police Commissioned Officers (PCOs)
Director General to Police Inspector 13,029 12,555 474
Police Non-Commissioned Officers (PNCOs)

I
 Particulars Authorized Actual Variance
Senior Police Officer IV to Police Officer 1 151,381 136,778 14,603
Total Uniformed Personnel 164,410 149,333 15,077
Non-Uniformed Personnel (NUP), Civilian 13,320 8,473 4,847
Total Uniformed and Non-Uniformed Personnel 177,730 157,806 19,924

B. Financial Highlights

The PNP’s financial position and performance (in thousand pesos) for calendar
year 2014, are as follows:

CY 2014
Financial Position (Thousands of Pesos)
Total Assets P 30,663,246
Total Liabilities 6,843,031
Total Net Assets/Equity 23,820,215

Financial Performance
Total Revenue P 792,821
Total Current Operating
Expenses 107,932,721
Net Financial Assistance Subsidy 108,905,375
Gains 1,818
Losses 5,601
Surplus/(Deficit) P 1,761,692

Sources and applications of fund for calendar year 2014 are as follows:

CY 2014
(Thousands of Pesos)
Allotment
Current Appropriation P 110,240,551
Continuing Appropriation 5,102,281
Total Allotment 115,342,832
Total Obligations Incurred 109,500,566
Unexpended Balance P 5,842,266

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 The details of the Statement of Allotments, Obligations and Balances are
presented in Annex A.

C. Operational Highlights

In line with the PNP’s advocacy “Serbisyong Makatotohanan”, hereunder, are

among the Agency’s major accomplishments reported for 2014:

1. To improve crime prevention, the PNP pursued operational programs to keep

our streets safer through the deployment of more uniformed personnel on the
streets and conduct of focused police operations.

Police presence serves as the backbone and heart of crime prevention.

The continuous implementation of Police Integrated Patrol System (PIPS);
“Patrulya ng Pulis”; “Pulis Nyo Po Sa Barangay”; Pulis sa sa Barangay” and
“Oplan Bakal Sita” serve as link between the police and community to sustain
anti-crime strategy.

2. The PNP through its intensified anti-criminality efforts achieved the following
law enforcement accomplishments:

No. of Reported
No. of No. of
Cases/Operations/R No. of No. of
Campaigns Recovery/ Cases
aids/Searches Arrests Cases
Conducted Confiscation/ Filed in
Conducted/ Made Solved
Neutralized Courts
Neutralized
Campaign against 28,360
illegal drugs 17,633 Pushers/ 24,052
Users
Campaign against
12,560 1,798 1,204
car napping
Campaign against 4,205
Motorcycle-Riding /589 suspects 380
Criminals neutralized
Campaign against
kidnapping-for- 48 31 26
ransom (KFR)
Campaign against
bank robbery 8 2

Campaign against
13 2
Hijacking
Campaign against
1259 253
Highway Robbery
Campaign against P16M
17,438 14,095 5,419
Illegal Gambling Cash Bets
III
 No. of Reported
No. of No. of
Cases/Operations/R No. of No. of
Campaigns Recovery/ Cases
aids/Searches Arrests Cases
Conducted Confiscation/ Filed in
Conducted/ Made Solved
Neutralized Courts
Neutralized
Environment and 2,398,952
22,499
Natural Resources 1,912 board ft. of 369
Anti-illegal Logging
Protection logs P59.4M
Campaign P286M Fish
13,631
10,767 and Fishing 640
Anti-illegal Fishing
paraphernalia
Campaign against
Prostitution/
Vagrancy and 3,565 615 28
Child Abuse

Campaign against
child
19,315 7296 9385
abuse/pedophiles

Campaign against P63.8M

smuggling/piracy 6852 37 smuggled/ 6 9
pirated goods
Campaign against
cattle rustling 292 146 258 75

Campaign against 38,336:

Wanted Persons 13 killed;
263
surrendered
Campaign against 153 gangs/ 411 assorted
513
Criminal Gangs 1,204 members firearms
Campaign against
loose firearms 7,734 10.091 5,165

Campaign against
Private Armed
11 14
Groups

3. To improve crime solution the PNP continues to boost its investigative

capabilities through technological innovation and use of modern equipment in
crime investigation by developing e-projects, which are the Crime Incident
Recording System (CIRS), e-Rogues Gallery System, Wanted Person
Information System (WPIS), Automated Fingerprint Identification System
(AFIS) and E-Subpoena.

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 4. On public safety, the PNP implemented community and safety protection
programs as part of its law enforcement functions such as:

a. “BAYANIHAN” (Barangay Peacekeeping Operations) is a citizen

empowerment sustained through community awareness and mobilization
activities, to address crime prevention and public safety needs of the
community;

b. National Tourist Oriented Police for Community Order and Protection

(NTOPCOP) Project – or “Bantay Turista”;

c. Security Coverage and foreign visits – had 64,103 VIP security operations
and 47,071 operations on special events were conducted;

d. The Internal Security Operations (ISO) provided operational support to the

AFP in addressing insurgency such as Joint Peace and Security
Coordinating Center (JPSCC); Campaign against CPP-NPA-NDF (CNN);
Campaign against Southern Philippines Secessionist Groups (SPSGs).

5. On Disaster Preparedness and Management, the PNP aggressively

undertook disaster management, preparedness and response operations in
support to the national Disaster Risk Reduction Management Council
(NDRRMC) as manifested in the following:

a. Operationalization of LOI 35/10 “SAKLOLO REVISED” (PNP Disaster

Risk Reduction and Management Plan;
b. NHQ-Disaster Preparedness and Response Task Group Disaster Audit
c. Fire Drill
d. Nationwide Earthquake Drill
e. Implementing Plan (IMPLAN) SAKLOLO 2014 (policing During
Disaster)
f. Disaster Preparedness for Contingency and Response (D.P.C.R.)
Challenge
g. Issuance of PNP Memorandum Circular No. 2014-034 “Emerging
Infectious Diseases.”

D. Scope of Audit

The audit covered the operations and financial transactions of the PNP National
Headquarters and the 17 Police Regional Offices (PROs) nationwide for calendar year
2014.

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E. Auditor’s Report

The auditor rendered an adverse opinion on the fairness of presentation of the

financial statements of the Philippine National Police, in view of the accounting errors
and deficiencies shown in the Matrix of Analysis of the Effects on the Misstatements on
the Financial Statements marked as Annex B and enumerated below together with the
recommendations:

1. The balance of various cash accounts in the National Headquarters and Police
Regional Offices (PROs) was incorrect due to the inclusion of checks issued
totaling P2,005,031.61 which remained outstanding for more than six months to
over eight years. Furthermore, the reliability of their balance could not be
ascertained because of delayed preparation and submission of Bank
Reconciliation Statements; and failure of the Accounting Division to update the
subsidiary ledgers (SLs) for the Cash accounts, required under Sections 2 and 3 of
COA Circular Nos. 92-125A dated March 4, 1992 and Section 74 of P.D. 1445.
(Observation No. 1)

We recommended that management instruct the: (a) NHQ Accountant to

(i) determine the nature of the supposed payments covered by the stale checks to
establish the validity of the claims: and (ii) make the necessary adjusting entries
for the affected accounts; and (b) the NHQ and Regional Accountant to
(i) coordinate with the depository bank for prompt delivery of the Monthly Bank
Statements with the supporting documents to facilitate the timely reconciliation of
its bank accounts; (ii) regularly prepare and submit the Bank Reconciliation
Statements for each account within 15 days after receipt of the Treasury
Statements/Bank Statements; and (iii) update the posting on the SLs as required
under the aforementioned provisions of PD 1445 and COA Circular.

2. In PRO 13. the balance of the Inventory accounts as of December 31, 2014 was
unreliable due to unreconciled difference of P7,087,974.81 between the recorded
balance of the Accounting of P28,132,661.75 and Report of Physical Count of
P21,044,686.94. In other PNP Regional Offices, the Supplies Ledger Cards and
Stock Cards of inventory were not maintained by the Regional Accounting Unit
and the Supply Accountable Officer (SAO) and no physical count of inventories
was conducted and the Reports on the Physical Count of Inventories (RPCI) was
not submitted. (Observation No. 6)

We recommended and management agreed to direct (a) all Regional Accountant

and the Supply Accountable Officer (SAO) to maintain Supplies Ledger Cards
and Stock Cards, respectively, for Inventory accounts pursuant to Sections 12
and 41, correspondingly, of the Manual on the New Government Accounting
System, Volume II; and (b) the SAO to conduct and submit the Report on
Physical Count of Inventories and to reconcile it with the Accounting Unit

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 regularly to assure correctness and reliability of the Inventory accounts as
presented in the financial statements.

3. The balance of PPE totaling P31,615,695,635.56 was inaccurate due to the

difference of P7,664,235,534.39 between the accounting records and inventory
report of various properties in the NHQ and PROs, caused by the: (i). failure of
management to conduct periodic reconciliation of accounts; (ii). inclusion in the
books the P1,090,066,186.64 forwarded balances from the Philippine
Constabulary and Integrated National Police (PC/INP) which can no longer be
accounted; (iii). unrecorded donated lots and office building acquired in 2013
valued at P2,280,000.00, donated properties/vehicles from concerned Local
Government Units (LGUs) and private entities amounting to P38,020,518.00 and
donated K-9 units and K-9 offspring in the amount of P8,010,000.00; and
(iv) 1,649 units of equipment of undetermined amount reported in the Inventory
and Inspection Report of Unserviceable Property (IIRUP) but cannot be identified
in the books; and (b) cost of completed projects amounting to P32,789,021.89
were not transferred to the appropriate asset accounts. On the other hand, the
unserviceable properties totaling P97,974,839.03 were not disposed in some
Police Regional Offices. (Observation No. 7)

We recommended that management require (a) the accountant and property

officers/RSPNCO to reconcile their records and establish the composition of
their differences, analyze, rectify both records and take other appropriate actions
if necessary; and determine the existence and condition of the balances of asset
forwarded from PC/INP. If unserviceable, dispose in accordance with Section 63
of P.D. 1445.; (b) direct the NHQ and Regional Accountant to book up all
donated properties and the Logistics Division to complete the information
required in the inventory report particularly the cost or value of the properties
including its appraised value of donated assets, to facilitate reconciliation
between the results of physical inventory to that of the accounting records;
(c) report all donated K-9 units and their offspring and those that expired for
recording in the books; and (d) reclassify the cost of completed projects from
Construction in Progress to Buildings account to present fairly these accounts in
the financial statements.

We also recommended that management take immediate action for the disposal
of the unserviceable properties that no longer provide economic benefits to the
agency in accordance with Section 79 of PD 1445, to avoid further deterioration
and generate additional income from sale.

4. Provision of depreciation for IT Software was subsequently treated with the same
for IT equipment without considering the impairment loss of the item contrary to
the provisions of PPSAS 31, re: Intangibles Assets. Moreover, some software
with small value like antivirus is being amortized for a period of 5 years. This
software has a useful life of one year only and expires after a year. (Observation
No. 13)
VII
 We recommended that management require the accountant to (a) review the
items in the subsidiary ledger of IT Equipment and Software and consider the
proper amortization of the items by amortizing in accordance with its useful life;
(b) drop from the books the items that are no longer functional by debiting the
depreciation expense of the book value of the software and the total accumulated
depreciation and crediting the acquisition cost of the software; and (c) software
with small value and with a useful life of one year be charged as an outright
expense.

F. OTHER SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS

5. Cash advances granted to the disbursing officer for intelligence activities and
service pay and allowances were transferred to various Budget Finance Officers
of the different offices/units of the PNP who are not bonded, contrary to COA
Circular Nos. 97-002 and 2012-001 dated February 10, 1997 and June 14, 2012,
respectively. (Observation No. 2)

We recommended that management (a) strictly adhere to the rules and regulations
on the grant of cash advances prohibiting the transfer of cash advances from one
accountable officer to another and grant cash advances intended to address the
requirements of different offices/units to their respective Budget/Finance Officers
to easily pinpoint accountability; and (b) require all Finance PNCOs and AO in
PRO 9 to be properly bonded in accordance with law.

6. The agency’s practice of transferring fund to PS-DBM despite the latter’s

inability to deliver the procured items resulted in a tremendous increase in the
balance of account Due from Other NGAs from previous year’s balance of
P1,976,356,518.80 to P5,157,174,409.38. (Observation No. 3)

We recommended that management (a) stop the practice of transferring funds to

PS DBM not until the previous transfers/APRs had been fully served; and
(b) make an inventory of the previous years unserved APRs. Cancel those which
are impossible to be served and request the PS DBM for the refund/returned of
amount corresponding to the unserved APR.

7. Out of the P1,574,902,775.77 balance of cash advances, the P873,232,747.06

representing the cash advances of retired/separated/deceased personnel who have
become outstanding for more than one year remained unliquidated as of year-end,
contrary to COA Circular No. 2003.002 dated July 30, 2003 and COA Circular
No. 97-002 dated February 10, 1997. (Observation No. 4)

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 We recommended that Management require the Accountable Officer (a) in PRO I,
IVA, IVB and 13, to submit to the COA Chairman, the liquidation documents for
the cash advances granted in December 2014 and assure compliance with
regulations relative to the grant and liquidation of cash advances; (b) in PRO 2
and 12, to adhere strictly with the guidelines on the liquidation of cash advances
to forestall the refund of any unexpended balance at the end of the year. If
possible, a notice to each of the payees to claim their benefits be sent as early as
possible; (c) in PRO 3, to liquidate their cash advances and strictly comply with
COA Circular 97-002 dated February 10, 1997 which requires that all cash
advances should be fully liquidated at the end of the year.

8. Procurement of Common-use supplies and materials in some PNP Regional

Offices were made from private suppliers instead of the Procurement Service,
Department of Budget and Management (PS-DBM), contrary to Administrative
Order No. 17 dated July 28, 2011, and raises doubt if the agency availed of the
minimum costs on procured items. (Observation No. 5)

We recommended that management strictly comply with the provisions of

Administrative Order No. 17 dated July 28, 2011 to procure common-use supplies
and materials from the Procurement Service-DBM instead of from private
suppliers to avail of the minimum costs.

9. Balance of funds transferred by Philippine Charity Sweepstakes Office (PCSO)

representing PNP’s share from the revenue of Small Town Lottery (STL);
proceeds from Sweepstakes Special Draw; and fund for indigent patients at PNP
General Hospital, totaling P51,874,945.48 remained outstanding for several years,
contrary to COA Circular No. 94-013 dated December 13, 1994 due to slow
utilization and inability of management to properly monitor the disbursement of
the fund. (Observation No. 8)

We recommended that Management require (a) the designated SDO/Unit to

submit the Report of Checks Issued and Report of Disbursement to account for
the utilization of funds so that expenditures will be taken up in the books, and
return any unused balance in compliance with the provisions of COA Circular
94-013.

10. The failure to strictly implement PNP Memorandum Circular No. 2011-002 and
monitor the monthly remittance of PCSO-STL to PNP resulted in the unrecorded
and undeposited collections for PRO 4A, PRO 4B and PRO 6 in the total amount
of P82,881,463.03. (Observation No. 9)

We recommended that Management (a) implement strictly the provisions of PNP

Memorandum Circular No. 2011-002 dated January 17, 2011 particularly on the
deposit of STL share to the bank account for PNP-STL Fund prior to its
disbursement; (b) exert more effort to ensure that the remittances of the PCSO-
STL Operator are accompanied with complete supporting documents; (c) monitor
IX
 strictly the compliance of the Provincial and City Police Directors and Municipal
Chiefs of Police concerned on the afore-cited Memorandum to properly account
their respective STL fund collections and their utilizations; and (d) instruct the
Regional Finance Service Office to issue the corresponding official receipts upon
confirmation of the deposit with the PNP STL Fund Account and together with
the Accounting Section to monitor/record the collections, as well as the
utilization/liquidation of the STL funds in the books of accounts.

11. Collateral/additional allowances and other benefits of PROs for CY 2014 were
paid through cash advances inconsistent with PNP Memorandum Circular No.
2014-004 which prescribes the adoption of the Automated Teller Machine (ATM)
Payroll System in the payment thereof, and exposes huge amounts of cash to risk
of loss or misuse, thereby, indicating weak internal controls on safeguarding of
funds and compliance with rules and policies, contrary to Sections 32 and 35.b of
the Government Accounting and Auditing Manual, Volume III. (Observation No.
10)

We recommended that PNP-PRO’s management strictly comply with PNP

Memorandum Circular No. 2014-004 dated February 4, 2014 by adopting the
ATM Payroll System in the payment of collateral allowances and other benefits
as well as bonuses of PNP-PROs personnel to strengthen internal controls on
safeguarding of cash in compliance with Sections 32 and 35.b of the GAAM,
Volume III, and in anticipation of the full implementation of the DBM’s
National Payroll System for all government agencies.

12. Deliveries of supplies and materials, repairs of equipment and rental of motor
vehicle totaling P43,732,623.22 cannot be established/accounted upon ocular
inspection or through verification from records due to the delay in the submission
of copies of Purchase Orders, Work Orders and Contracts and late notification on
the date and time of the scheduled deliveries of goods; hence, hindered the timely
inspection of the items delivered, contrary to Section 2 of PD 1445; thereby,
casting doubt on its existence. Likewise, the requesting offices failed to comply
with COA Circular No. 96-010 and COA Memorandum No. 2005-027 dated
August 15, 1996 and February 28, 2005. (Observation No. 11)

We recommended management to (a) strictly comply with COA Circular No. 96-
010 dated August 15, 1996 on the submission of Purchase Orders, Work Orders
and Contracts within five (5) days from issuance and in notifying the Auditor of
deliveries within twenty-four (24) hours from acceptance; (b) require the
accountable officers (SAO and RSPNCO) to: (i) submit complete set supporting
documents on the deliveries requested for inspection. Make sure that items
delivered are still intact before making a request; (ii) maintain stock cards and
property cards to record receipt and issuance of supplies and materials and
equipment; and (iii) issue the RIS and ARE for issuances of supplies and
equipment; (c) specify in the work orders the equipment to be repaired, the serial
numbers or property tag numbers and other references to facilitate proper
X
 identification. Likewise, the scope of work/repair to be performed be included in
the repair history for each equipment with pre and post repair inspection by a
designated personnel with technical knowledge on the equipment to be repaired;
and (d) document the use of rented motor vehicles with approved office orders
delineating the activity/operation to be conducted, assigned personnel, location of
operation and assigning the use of rented vehicles and other relative documents,
for purposes of verification.

13. Common use Supplies and Materials amounting to P1,265,684,986.96 procured

through public bidding were not supported by Annual Procurement Plan for
(APP), contrary to Sec. 7.2 and 7.3.4 of the Implementing Rules and Regulations
(IRR) of R. A. 9184 or Government Procurement Reform Act, will result in the
possibility of incurring unnecessary, excessive procurement and overstocking of
supply. (Observation No. 12)

We recommended that management (a) submit the Agency’s Annual Procurement

Plan which includes the Annual Procurement Plan for Common Use Supplies and
Equipment; and (b) require the Bids and Awards Committees to submit the basis
of the procurement of various supplies through public bidding for different end-
users/units.

14. Interests Income earned from deposits in CY 2013 and CY 2014 amounting to
P3,723,482.46 and P2,878,936.61, respectively, totaling P6,602,419.07, net of
taxes, were not remitted to the Bureau of Treasury in violation of Section 44,
Book VI of EO 292, series of 1987 and Section 65 of PD 1445, thus, depriving
the national government of the use of said funds. (Observation No. 14)

We recommended that management comply with the provisions of Section 44,

Chapter 5, Book VI of E.O. No 292, series of 1987 and Section 65 of P.D. No.
1445 by remitting all interest income to the Bureau of Treasury to augment the
needed income of the government.

15. Weak control on the handling of issued firearms to 72 police personnel resulted in
the loss of 90 service firearms valued at P3,258,730.00. Moreover, out of the 80
police personnel who were granted relief by the agency’s respective Board of
Survey, only 5 have submitted their notification of loss to the Commission on
Audit which is in violation of Section 73 of PD 1445 and Section 102 of the
Government Accounting and Auditing Manual (GAAM), Volume 1. (Observation
No. 15)

We recommended that management (a) require the inventory of firearms issued

at least annually to ensure that the firearms are still in the possession of the
Accountable Officer; (b) consider the replacement of lost firearms a better
alternative than payment of the same in granting a relief from accountability if the
cause of loss is negligence; (c) file appropriate administrative charges to all
personnel who will not file/submit notice of loss to the auditor or Commission
XI
 within the reglementary period; and (d) strictly adhere to the provisions of
Section 73 of PD 1445 and Section 102 of the Government Accounting and
Auditing Manual (GAAM), Volume 1.

16. In PRO COR, the non-compliance with the provision of NAPOLCOM Resolution
No. 93-08 dated April 6, 1993 to provide 100% short firearm to every policeman
may compromise the efficiency in the discharge of their duties and functions.
(Observation No. 16)

We recommended that Management comply with the 100% short firearm

requirement in all the police offices or units as provided in the NAPOLCOM
Resolution No. 93-08 dated April 6, 1993.

17. Disbursement and Liquidation Vouchers and their supporting documents

involving a total amount of P80,479,051.07 in Police National Training Institute
(PNTI), P292,369,164.55 in PRO IVA, and P334,307,857.80 in PRO IVB, were
not all stamped “PAID” after payment thereof, contrary to Section 2.Q of COA
Circular No. 92-389 dated November 3, 1992, posing risk of possible reuse of the
same documents to pay future similar transactions. Moreover, submitted Check
Disbursement Vouchers for Trust Fund and Report of Checks Issued (RCI)
totaling P11,336,116.13 and P437,601,845.74, respectively, were not properly
accomplished contrary to Section 46 of the Manual on the New Government
Accounting Systems (MNGAS), thus validity of the transactions remained
doubtful due to incompleteness of the data. (Observation No. 17)

We recommended that Management require the: (a) SDO to stamp “PAID” all the
disbursement vouchers and its supporting documents after payment in order to
avoid re-submission and/or re-use of the same documents for other similar
transactions/disbursements; and (b) Accountant to ensure that the DVs are
properly accomplished and filled-up and the supporting documents are complete
before payment and prior to submission to the Auditor for audit.

18. Financial and mandatory reports were not submitted within the prescribed period
contrary to Sections 34 and 37 of the Manual on NGAS; COA Circular Nos.
2009-006 dated September 15, 2009; and Section 122 of PD 1445; thus,
hampering the early detection of lapses and deficiencies in the operations, as well
as in the review and verification on the propriety and validity of transactions
recorded in the books. (Observation No. 20)

We recommended that management require the Accountant to (a) install or

implement adequate measures that will facilitate the timely and complete
submission of disbursement vouchers and all its supporting documents, payrolls,
official receipts, trial balance and all accounting reports within the prescribed
period in compliance to COA Circular No. 2009-006; (b) strictly comply with the
provisions of Section 122 of PD 1445 to avoid the sanctions as provided therein;
(c) coordinate with the Disbursing Officer for the latter to submit immediately
XII
 the required reports particularly its liquidation reports to facilitate the recording of
the transactions in the books of accounts; (d) require the Chief, Finance Service
Unit to submit the Report of Checks Issued as provided in Sections 34 and 37 of
the Manual on NGAS; and (e) instruct the Head of the Regional Logistics
Research Development Division to ensure that Pos are duly filled-up with
complete information.

19. Procurement of patrol vehicles and shirts thru PS-DBM funded under the
Disbursement Acceleration Program (DAP) in the amount of P79,699,250.00,
only P6,196,320.00 was delivered leaving a balance of P73,502,930.00 as of
December 31, 2014, defeating the purpose of the Program to fast-track public
spending and push economic growth; thereby, depriving the agency of the much
needed police supplies and vehicles that should have been used in attaining their
mission/vision. (Observation No. 22)

We recommended that management (a) request the PS-DBM to return/refund the

excess balance which remained idle/unutilized as of December 31, 2014 and
return these DAP funds to the National Treasury; and (b) submit the distribution
lists duly acknowledged by the recipients for the 90,000.00 and 4,965 pairs of
patrol shoes not presented during the inspection of the audit team.

G. STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT

RECOMMENDATIONS

Of the 29 audit recommendations contained in CY 2011 to CY 2013 Annual

Audit Reports, four were fully implemented, 21 were partially implemented, while four
were not implemented. The details are shown in Part III of this report.

XIII