NATIONAL IRRIGATION ADMINISTRATION

Surigao del Sur Irrigation Management Office

Tabon-tabon, Tago, Surigao del Sur

AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION

Audit Observations and Recommendations
For the Calendar Year 2022
As of May 15, 2023

Agency Action Plan Reason for Partial/

Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable

AOM The ownership of 39 parcels of land We recommended that

No. located in Tago, San Miguel, Management take appropriate
2023- Madrid, Cantilan and Carrascal, actions and prioritize the retrieval
001 Surigao del Sur acquired through and processing of pertinent
deed of absolute sale and donation documents evidencing the agency’s
are still not transferred and ownership of the parcels of land
registered in favor of NIA contrary and expedite the transfer of Coordination to
to Section 51 of P.D No. 1529. ownership of these properties to Adhere to Property Unit March Ongoing Provincial
Moreover, buildings with total costs NIA to safeguard its interest and its COA’s 2023 Assessor
of ₱8,427,921.00 were constructed legal ownership over said recommen office,DENR,to
on these unregistered land, thus, properties. dation expedite the
transfer and
exposing government properties to
titling of the 39
risk of loss in the event that claims parcels of land.
of ownership or right is presented by
third parties or when assailed in
court by the donor and/or their heirs.

AOM
No. The unexpired portion of insurance We recommended that
2023- premiums for building and motor Management require the Senior
002 vehicles totaling ₱37,421.68 was Accounting Processor to effect the
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable
erroneously recorded as Insurance necessary adjustments on the
Expenses, which is inconsistent with affected accounts in the books of 1.Adhere Submitted the
Paragraph 7 of the IPSAS 1, thus, accounts in order to present fairly to COA’s Accounting Fully adjusted journal
recommen Implemented entries of
resulted in the understatement of the the agency’s financial statements
dation insurance
Prepaid Insurance and the and consistently adhere to the 2. Obliged premium
overstatement of the Insurance accrual basis of accounting. the accounts.
Expense Account in the Agency’s Officer-
Financial Statements as of March 15, March
incharged
2023 23, 2023
December 31, 2022. to strictly
adhere to
the accrual
basis of
accounting

To
AOM Procurement of semi-expendable We recommended that immediatel
No. properties with cost aggregating Management direct the Senior y adhere to
COA’s
2023- ₱515,133.00 were recorded as Accounting Processor to prepare
recommen
003 Property, Plant and Equipment the necessary adjusting journal dation.
despite below the capitalization entries to reclassify the properties Ask the Submitted the
threshold, contrary to Section 23 of amounting to less than ₱50,000.00 officer adjusted journal
the General Provisions of the GAA to their appropriate semi incharged entries of the
FY 2022 and Section 4.1 of COA expendable expense account. to prepare Acct./Budget March April Fully said account to
Circular No. 2022-004; thereby the Unit 15, 2023 26,2023 Implemented COA.
affecting the accuracy and reliability adjusted
of the related asset and expense journal of
the
accounts.
concerned
account
The prescribed policies and To effectively and efficiently 1.To -Secured a
AOM procedures for the proper manage, control and monitor the strictly funding
No. management, control, and Agency’s properties and adhere to allocation for
the the construction
2023- monitoring of NIA SDS IMO inventories, we recommended the
recommen of Cabinets and
004 properties and inventories were not strict implementation of relevant dation of store room
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable
implemented due to a) lack of policies, procedures and COA 2. Created a
cabinets and shelves to securely regulations, such as, but not limited Inventory
store the items; b) non-creation of to the following: 2.The committee that
office will take
inventory committee; c) non-
plans to charged and
conduct of physical count of a. Provide storage cabinets construct a ensure the
inventories and non-preparation and and shelves to ensure systematic new Physical count
submission of the Report of Physical and organized arrangement of property of the agency’s
Count of Inventories; d) absence of unissued supplies, IT room and inventory
property label and tag; e) non- equipment/accessories and store room 3.All agency’s
preparation of Requisition and Issue materials. properties are
Slips (RIS) to request for items; and 3.Creation already labelled
f) non-maintenance of Property b. Create Inventory of March 23, Ongoing and tagged.
Inventory Property Unit 2023 Including those
Cards, Semi-Expendable Property Committee that will take charge
Committee properties that
Cards, and Stock Cards which, if not and ensure that physical count of that will was overlooked
addressed may exposed the the Agency’s inventories for the take charge by the Property
Agency’s properties and inventories current and ensuing years is and ensure Officers
to possible deterioration, loss, theft conducted. the 4.Obliged the
and misused. Physical property officer
c. Ensure that all Agency’s count of to prepare
properties and equipment are the requisition and
properly tagged and labelled. agency’s Issue Slip and
inventory instruct all
personnel to fill
d. Prepare Requisition and up the slip
Issue Slip upon request and ensure appropriately.
that all portions required to be 5. The agency
filled up are appropriately filled up. is currently
implementing a
e. Prepare and maintain an automated
Property Cards, Semi-expendable program that
will
cards and Stock Cards with series
automatically
number for each category/type of generate stock
property and inventory for easy cards and other
monitoring. forms
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable

1.Strictly
AOM The withholding and remittance of We recommended that adhere to
No. Employee Pag-IBIG premium Management require the COA’s
recommen
2023- contributions and loan amortizations Accounting Unit to strictly monitor
dations.
005 for the nine employees of the NIA and remit the premium 2. Issuance
Surigao del Sur IMO were noted contributions and loan repayments of
with the following deficiencies: a) to Pag-IBIG in accurate amounts Memorand Issued a
unremitted amount totaling and on a timely manner to prevent um to Fully Memorandum to
₱7,631.13 with delays ranging from over remittance and avoid interests, Accountin HR & March April ,20 Implemented Accounting
two to nine months; and b) over penalties and surcharges in g Accounting 2023 23 Personnel to
remittance of premium contributions accordance with Section 3 of Rule Personnel unit thoroughly
that were not withheld, which VII of RA No. 9679 and HDMF to check the
thoroughly monthly
resulted in agency losses amounting Circular No. 275.
check the remittance.
to ₱1,888.56, contrary to Section 3 monthly
of Rule VII of RA No. 9679 and remittance
HDMF Circular No. 275 dated s
January 22, 2010.

1.Adhere March 23, March

AOM A total of 135 Purchase Orders We recommended that to COA’s 2023 24,2024
No. (POs) with an aggregate amount of Management require the recommen Issued a
dations. Memorandum to
2023- P6,633,929.36 were not properly Supply/Property Unit to comply
2. Obliged Property Officer
006 and completely filled up with the with the provisions cited under the officer Property Unit Fully to properly
basic information deemed part of the COA Circular No. 2009-001. –incharged Implemented observed and
terms and conditions on the Copies of purchase orders and all to fully comply on the
procurement and delivery of goods supporting documents thereto shall comply standard
based on the standard requirement be submitted to the Auditor within with the requirement
under Appendix 61 of GAM Vol. II; 5 days from issuance thereof to provision under GAM.
and 47 copies of which, including facilitate the review and evaluation
all applicable supporting documents of the transaction.
were not submitted to the Auditor
within five (5) working days from Further, provide the necessary
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable
its issuance, or a delay of its information required under the
submission ranging from 1 to 155 GAM Vol. II and be guided with
days, contrary to Section 3.2.1 of the instructions on how to
COA Circular No. 2009-001; thus, accomplish the POs under
precluding the timely review of any Appendix 6 of the same. Ensure
defects and/or deficiencies, and the that copies of POs are legible in all
proper evaluation on the validity of respects.
the transaction.

1.To full
AOM Taxes withheld on payments to We recommended that adhere to
No. suppliers were incorrectly computed Management direct the Accounting COA’s
recommen
2023- which resulted in the a) Head to (i) demand from the
dation
007 understatement of taxes withheld on concerned suppliers/ professionals 2.Deploy
27 transactions amounting to the under-withheld amount to avoid various
₱36,640.85 which deprived the charges to persons liable; (ii) attend employee Coordinated to
government the additional revenue the necessary trainings and to BIR HR/ March April Property unit to
for priority programs/projects; and seminars conducted by the Bureau seminars Accounting 28,2023 2023 Ongoing demand from
b) overstatement of taxes withheld of Internal Revenue to be updated and the suppliers the
on another 30 transactions with the rules and regulations; and trainings withheld
amounting to ₱13,489.59 which is (iii) enhance controls in the review amount.
not in accordance with the rates of all transactions particularly the
prescribed under existing BIR rules computation of the taxes withheld
and regulations. to adhere to related BIR provisions.

1.Strictly
AOM The bidder with the Lowest We recommended that adhere to
No. Calculated Responsive Bid (LCRB) Management strictly impose COA’s
recommen The office
2022- was not imposed with administrative administrative penalties and fines
dation secured the
010 penalties and fines upon refusal to under Section 69 of Revised IRR of 2. Impose official GPPB
accept award or enter into contract RA 9184 and Section 6 of the administrat Account last
with NIA Surigao del Sur Irrigation Annex A of GPPB Resolution No. ive February
Management Office for the project: 15-2014 for the refusal of the penalties BAC/TWG March 29, Ongoing 2023.Hence ,the
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable
Construction of Diversion Works, bidder to accept award without and fines Personnel office cannot
Protection Works, Drainage justifiable cause. to under officially
Improvement and Access Road of section 69 blacklist
of Revised contractors with
BCIDP, Bislig City, contrary to
IRR of RA violations
Section 69 of Revised Implementing 9184 and during that time
Rules and Regulations of RA 9184 section 6 2022
and Sections 5 and 6 of the of the
Guidelines on the Use of Bid Annex A
Securing Declaration under Annex of GPPB
A of the GPPB Resolution No. 15-
2014 dated June 20, 2014.

Jan. 2022
AOM NIA Surigao del Sur Irrigation We recommended that
No. Management Office was not able to Management instruct the Technical 1.To
strictly
2022- submit the CY 2021 PCW endorsed Working Group (TWG) or
adhere to
008 and/or Central Office approved Secretariat of the GFPS to: COA’s
GAD Plan and Budget (GPB), thus, recommen
there was no assurance that the a. Ensure timely submission dation.
gender issues and the interventions of the PCW endorsed and/or
and strategies identified in the GPB central office approved annual 2. Secure The office is
truly address the gender gaps or GAD Plan and Budget to the Audit Approved still waiting for
issues faced by its women and men Team; and Annual Accounting Ongoing the approved
employees and clients. Moreover, GAD Plan GAD Plan and
and Budget Budget from RO
the Agency failed to develop and b. Ensure that all items
to the
maintain database of GAD reported in the GAD Audit
information including gender Accomplishment Report are Team
statistics and sex-disaggregated data supported with proof of
and the GFPS was also not provided accomplishment.
with the required gender capacity
that will enable them in the We further recommend that
performance of their roles and Management include in the GPB
responsibilities. the attendance of GFPS to gender
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable
capacity trainings and seminars.

To
AOM The Senior Accounting Processor A We reiterated our recommendation immediatel
No. did not prepare and submit the that Management direct the Senior y adhere to
COA’s
2022- monthly bank reconciliation Accounting Processor A to prepare
recommen A memorandum
002 statements, together with the bank bank reconciliation statements on dation was issued to
statements, paid checks and original the cash in bank accounts of the 2.Obliged Senior
copies of debit/credit memos of the IMO pursuant to Section 74 of PD the SAP A Accounting
Corporate Operating Budget 1445 and standards prescribed on to comply Processor A to
account, within the prescribed Chapter 21 of Government and submit Accounting January March Ongoing prepare bank
period pursuant to Section 74 of PD Accounting Manual Volume I. the needed Unit 2022 2022 reconciliation
1445 and standards prescribed on documents statements on
Chapter 21 of Government the cash in bank
accounts of the
Accounting Manual Volume I, thus
IMO
the accuracy and existence of the
balance of Cash in Bank account as
of December 31, 2021 could not be
ascertained.

To adhere Jan. 2022

AOM Leave monetization of more than We recommended that to COA’s
No. 50% of leave credits totaling Management strictly observe recommen The office is
dation still
2021- ₱138,426.93 was granted to two (2) Sections 23 (as amended), Rule
coordinating
007 personnel of NIA SDS IMO in June XVI of the Omnibus Rules Strictly with the CSC
2021 based on promotion from Implementing Book V of EO 292 adhere to Ongoing and NIA HR-
Project-in-Charge (PIC) charged and other related rules and Rule XVI HR/ Regional Office
positions to Corporate Operating regulations on the grant of leave of the Accounting to verify the
Budget (COB) charged positions, monetization of more than 50% of Omnibus legalities of the
where reason is not among the valid available leave credits. Rules implementation
and justifiable circumstances listed Implement of Leave
in CSC Memorandum Circular No. ing Book Monetization of
V of EO Two NIA
16 on the Amendment to Section 23,
292 Employees
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable
Rule XVI of the Omnibus Rules
Implementing Book V of the
Administrative Code of 1987
effective June 22, 2002 resulting in
the improper use of government
funds, as validity, propriety and
reasonableness in the disbursement
of funds is not consistently
observed.

AOM Hazard Pay in the total amount of We recommended that

No. ₱365,621.88 was paid to the 178 Management direct the Senior
2021- personnel of the NIA Surigao del Accounting Processor A to support
The
010 Sur IMO without the required Daily the complete and proper management
Time Record and schedule of documentary requirements in had already
personnel authorized to physically accordance with the laws, rules and Submit the submitted to the
report for work on the prescribed regulations not only in the payment necessary COA the lacking
official working hours by the head of Hazard Pay but, in all documents supporting
of agency or office during the period transactions, due for payment. together documents
of implementation of Modified with other HR/ Fully which includes
attachment Accounting Mar. Implemented DTR and other
Enhanced Community Quarantine, Submit the necessary documents as Jan.2022
2022
s attachments
which is not in adherence with the mentioned above for proper
guidelines under Item 5.8 of COA evaluation by the audit team
Circular No. 2012-001, Section 1 of specifically the daily time records
Administrative Order No. 43 series and the authority issued by the
of 2021 and NIA Memorandum Head of Office that the employees
Circular No. 073 series of 2021; shall physically report for work at
hence, legality and accuracy of the their respective work stations on
amount paid as Hazard Pay could the prescribed official working
not be properly validated. hours during the period of
implementation of MECQ.
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable

AOM Disbursements related to COVID-19 We recommended that

No. pandemic comprise of handsfree Management direct the Senior
2021- quick measurement tool Accounting Processor A and/or the
011 thermometer with stand, intelligent Supply Officer/ the Property
hand sanitizer dispenser touchless, Officer to:
sphygmomanometer w/ stethoscope,
glucometer, blood glucose test a. Carefully review the DVs
strips, rubbing alcohol, first aid and ensure that sufficient and 1.Strictly
supplies and off the shelf medicines relevant documents are complete adhere to
recorded as Medical, Dental & Lab. and proper to establish validity of COA’s
Supplies Expenses aggregating claims. Strict adherence to the recommen Accounting Jan. 2022 Ongoing The
dation Management
₱71,370.65 were procured and applicable provisions of the revised
will secure
issued for use of the NIA Surigao IRR of RA 9184 and AO No. 17 2.Prepare lacking
del Sur IMO without strict shall be observed at all times in the and documents such
adherence to Section 1 of procurement of common-used Review the as APR,Proof of
Administrative Order No. 17 and goods. Prioritize the DBM-PS in lacking the
Chapter 8 of GAM Volume 1 as the procurement of common-use documents unavailability of
DVs were not supported with a supplies, materials and equipment such as Supplies at the
proof of the unavailability of the to promote economy and APR,Proof DBM-PS as
supplies at the DBM-PS to justify its transparency in the procurement of the soon as possible
unavailabil
exclusion in the procurement process; ity of
process; and inventory items were Supplies at
expensed outright; hence, legality, b. Submit the necessary the DBM-
cost-efficiency and transparency of lacking documents such as the PS
the disbursements are not assured APR, proof of the unavailability of
and could not be properly evaluated. supplies at the DBM-PS to validly
support the expenses made; and

c. Follow also the inventory

accounting system as provided in
Chapter 8, GAM Volume I, in
which upon delivery of procured
 Agency Action Plan Reason for Partial/
Action Taken/
Person/ Dept. / Target Status of Delay/ Non-
Ref. Audit Observations Audit Recommendations Action Action to be
Office Implementation Date Implementation Implementation,
Plan Taken
Responsible From To if applicable
items, it shall be recorded first to
its appropriate inventory account
and shall be recorded only as
expense upon issuance thereof.

Agency Sign-off:

JEK A. PANERIO_ ________May 15, 2023____

Accounting Processor A Date

Note: Status of Implementation may either be (a) Fully Implemented, (b) Ongoing, (c) Not Implemented, (d) Partially Implemented or (e) Delayed