REGIONAL OFFICE NO.

I
NGS CLUSTER 9- SUCs and Other NGS SAAs
PROVINCIAL SATELLITE AUDITING OFFICE
Govantes Dike, Bantay, Ilocos Sur

Office of the Auditor- Team R1-03

University of Northern Philippines, Ilocos Sur Polytechnic State College

AOM No.: 23-14

Date : September 5, 2023

AUDIT OBSERVATION MEMORANDUM (AOM)

For: Dr. DANILO B. BOSE

Officer-in-Charge
Office of the President
Ilocos Sur Polytechnic State College – Main Campus
Candon City, Ilocos Sur

Attention: KRIZANNE I. LANUZA, CPA

Accountant III

OLIVE SHOWER P. BASABAS, MBA

Director, GAD

We have audited the payments of various GAD related expenditures, and observed the
following:

The distribution of 835 items of various campaign materials with a total cost of ₱170,575.00
provided to the employees and students was not in consonance with the Gender and
Development (GAD) activities identified in the GAD Plan and Budget (GPB) of the College
for FY 2022 and 2023, thus the responsiveness of which vis-á-vis the gender issues to be
addressed could not be ascertained, which is not in conformity with the revised guidelines
in the audit of GAD covered under COA Circular No. 2014-001. Likewise, the distributed
materials were intended for personal consumption of the recipients which is contrary to
Section 4 (2) of Presidential Decree (PD) No. 1445, casting doubt on the regularity of the
subject transactions.

COA Circular No. 2014-001 dated March 18, 2014 discusses the revised guidelines in the
audit of GAD funds and activities in government agencies, of which, item IV provides the
following specific guidelines, among others:

B. Financial and Compliance Audit on GAD

1. Xxx
2. Funds for gender and development may be used for:

Xxx
e. Maintenance and Operating Expenses provided that:

1. Expenditures for supplies and materials shall pertain to existing GAD

projects or programs which are organization focused or client focused
and which are among those approved by the Philippine Commission on
Women. Xxx

AOM No. 23-14

Page 1 of 4
 C. Audit of GAD Projects

1. In the audit of GAD projects, the following should be considered:

Xxx
c. Whether GAD Projects are responsive to gender issues in the agency as
determined by its GAD Focal Point. Expenditures for projects without a well
defined gender issue to be addressed shall not be considered as a GAD
related project and shall be excluded in the computation of the mandated
appropriation for GAD. Consequently, the Audit Team shall evaluate the
transaction for issuance of an NS or ND, as the case may warrant.

d. Xxx
e. Economy, efficiency and effectiveness of the implementation of the project
shall also be evaluated in the light of existing standards on gender and
development.
f. Such audit shall not be confined to the verification of the status of
accomplishment vis-á-vis the GAD Plan but shall include a determination of
how the agency’s policies, programs, projects and procedures address
gender issues. Xxx
Xxx

Moreover, Section 4 (2) of PD No. 1445 states:

Government funds or property shall be spent or used solely for public purposes.

The College procured 835 items of various campaign materials such as t-shirts, gadget
organizer, umbrella and canvass bag which were distributed to the employees and students in
line with the conduct of the following GAD-related activities: (i) National Women’s Month
Celebration and (ii) 18-Day Campaign to End Violence Against Women and Children (VAWC)
for CY 2023 and 2022, respectively, with an aggregate cost amounting to ₱170,575.00, broken
down as follows:

Particulars Qty Unit Cost Total Amount (₱)

National Women’s Month Celebration (2023)
T-shirt 115 445.00 51,175.0
0
Gadget Organizer 220 145.00 31,900.0 83,075.00
0
18 Day Campaign to End VAWC (2022)
Umbrella 250 200.00 50,000.0
0
Canvass Bag 250 150.00 37,500.0 87,500.00
0
835 170,575.00

In the review of the Annual GPB for CY 2022 and 2023, one of the GAD issues and/or
mandate identified was the annual observance of the above-mentioned activities. Details of
which are shown below:

GAD Issue and/or Cause of the Gender GAD Result GAD Activity
GAD Mandate Issue Statement/ GAD
Objective
CY 2023
Annual observance The need to intensify To continually increase Women’s Month
of Women’s Month advocacy on the awareness and Celebration (Photo
in accordance with women’s right and enjoin the active Exhibit on Women who
Proclamation Nos. their role in the participation of the Contributed to
224 and 227 series national development administrators, faculty Development, Hanging
of 1998 xxx and nation building. & staff, and students on of Tarpaulins on the
the advocacy campaign 2020 Women’s Month

AOM No. 23-14

Page 2 of 4
 GAD Issue and/or Cause of the Gender GAD Result GAD Activity
GAD Mandate Issue Statement/ GAD
Objective
for the promotion of Theme, Conduct
women human rights. Symposium, Essay
Writing Contest)

Xxx

CY 2022
Observation of 18- The need to intensify To continually increase Conduct Anit-VAWC
Day Campaign to advocacy on the awareness and of 18-Day Campaign to
End (VAWC) women’s right and enjoin the active End Violence Against
their role in the participation of the Women (Streamer
national development administrators, faculty Campaign, Poster-
and nation building. & staff, and students on Slogan Making Contest,
the advocacy campaign Symposium)
for the promotion of
women human rights.

Differences were noted between the activities planned and the actual activities conducted
during the annual observance of Women’s Month Celebration for CY 2023 and the 18-Day
Campaign to End VAWC for CY 2022 since the distribution of various campaign materials such
as t-shirts, gadget organizers, umbrellas and canvass bags were not among the identified
activities presented above.

Thus, such variances emphasize the inability to ensure that said activities were responsive
to the gender issues and in addressing specific gender-related challenges, disparities, or
inequalities faced by the employees and students of the College. This is not in conformity with
the revised guidelines in the audit of GAD funds and activities covered under COA Circular
2014-001.

On the other hand, the use of materials bearing the slogans related to said
celebration/campaign can be an effective way to convey messages and promote awareness.
However, it is essential to ensure that the distribution and use of these contribute to the overall
objectives of the event or campaign. In this case, said materials will eventually become personal
belongings of the recipients since these serves personal purpose and were intended for their
personal consumption which is not in accord with the fundamental principles governing financial
transactions and operations of government agencies as provided under Section 4 (2) of PD No.
1445.

We recommend that Management:

1. Evaluate properly the programs and projects to be implemented as GAD-related

activities whether the gender issue identified will be addressed accordingly to
ensure that these are gender responsive and that GAD funds are utilized
effectively to advance gender equality and women’s empowerment in conformity
with COA Circular No. 2014-001; and

2. Discontinue the issuance or distribution of materials which are intended for

personal consumption of the respective recipients in order to conform with the
fundamental principles stated under Section 4 (2) of PD No. 1445.

May we have your comments on the foregoing audit observations within fifteen (15)
calendar days from receipt hereof.

JANETTE G. YAGO
Audit Team Leader

AOM No. 23-14

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 BERMELY C. RAMOS
Supervising Auditor

Proof of Receipt of AOM No. 23-14:

Dr. DANILO B. BOSE

Date: ______________________

KRIZANNE I. LANUZA, CPA

Date: ______________________

OLIVE SHOWER P. BASABAS, MBA

Date: ______________________

AOM No. 23-14

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