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Commission On Elections Executive Summary 2022
Commission On Elections Executive Summary 2022
Commission On Elections Executive Summary 2022
A. Introduction
The COMELEC consists of one Chairman and six Commissioners, all of whom
have a seven-year term without reappointment. In all matters pertaining to election
administration and policymaking, the Commissioners act as a collegial body. In
election cases and pre-proclamation controversies, however, the Commission sits in
two divisions initially, but decides en banc on motion to reconsider a division
decision.
The Chairman is the Chief Executive of the Commission. Under him is the
Executive Director (ED) whose duty is to implement policies and decisions and to
take charge of the administrative affairs of the Commission. Assisting the ED are
two deputies: a Deputy Executive Director for Administration (DEDA) and a
Deputy Executive Director for Operations (DEDO).
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B. Financial Highlights
C. Operational Highlights
a. Local Registration
b. Overseas Registration 0.01% 0.13%
2. Percentage of cleansed database of registered 100% 100%
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voters
3. Number of voters education/ information 200 (EID) 189 (EID)
campaigns conducted
19,884 (Field 21,881 (Field
Offices) Offices)
4. Number of applicants for registration, transfer 657,911 4,234,906
a. Local Registration
b. Overseas Registration 266 1,373
5. Number of registration records cancelled (death), 190,888 1,533,295
deleted, deactivated and reactivated
Electoral Supervision and Monitoring Sub-Program
1. Range of voters turnout 72%-78% 84.10%
2. Number of elections held 1 (NLE) 1 (NLE), 5
(Plebiscites)
3. Number of command conferences/ 2 14
meetings/discussions conducted with election
stakeholders/deputies/media
Electoral Enforcement and Adjudication Program
1. Increase in percentage of electoral protests 9.82% 59.00%
resolved within an election cycle
2. Number of cases filed
Election protest cases, election appeal cases 43 112
Special action cases 150 132
Special proceedings 2 7
Election matters 60 189
Special cases 8 10
3. Number of cases resolved
Election protest cases, election appeal cases 24 144
Special action cases 100 556
Special proceedings 2 19
Election matters 20 71
Special cases 1 32
D. Scope of Audit
The audit was focused on the COMELEC’s accounts and financial operations for
year ended December 31, 2022. It was conducted to: (a) verify the level of
reliance that may be placed on Management’s assertions on the financial
statements; (b) determine the extent of compliance with applicable laws, rules and
regulations; (c) recommend agency improvement opportunities; and (d) determine
the extent of implementation of prior years’ audit recommendations.
Moreover, the audit was conducted in accordance with the International Standards
of Supreme Audit Institutions (ISSAIs).
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E. Audit Opinion on the Financial Statements
Accounting Errors
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Accounts Payable 2,864,348.56
Cash in Bank – LCCA 2,864,348.56
To record disbursements
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e. Non-reclassification of various PPE Accounts - P400.871Million
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Accumulated Surplus/(Deficit) 368,483.22
Rent Expense 8,605,530.82
Prepaid Rent 8,927,323.32
Prepaid Insurance 10,665.82
Prepaid Registration 36,024.90
Accounting Deficiencies
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b. The reported balance of the Cash-in-Bank -LCCA account of P2.052
billion as at December 31, 2022 was unreliable due to existing
unaccounted book reconciling items and “for reconciliation” balances
amounting to P1.221 billion and P302.801 million, respectively.
(Paragraph No. 1.54).
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e. The accuracy, existence and valuation of the Inventory Held for
Consumption accounts amounting to P216,988,694.56 as at December 31,
2022 could not be ascertained due to existence of: a) significant variance
between the Report on the Physical Count of Inventory (RPCI) and AD
records of P202.591 million; b) non-moving items/dormant SLs
amounting to P52.985 million; c) SLs with negative balance totalling
P28.085 million; and d) SLs captioned as “For Reconciliation” amounting
to P32.353 million. (Paragraph No. 1.82)
f. The existence, accuracy and valuation of PPE accounts in the total amount
of P10.390 billion as at December 31, 2022 cannot be relied upon due to:
a) unreconciled variance of P7.929 billion between the AD records and
PD; and b) existence of SL captioned as “For Reconciliation” amounting
to P5.341 billion. (Paragraph No. 1.102)
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g. The Accuracy and existence of recorded Advances to Special Disbursing
Officers (SDO) and Advances to Officers and Employees (OE) accounts
amounting to P1.900 billion and P188.892 million, respectively, as at
December 31, 2022, cannot be ascertained due to the existence of: a)
Unreconciled SLs account balances reported in the books, Ageing Reports,
and Status of Unliquidated Cash Advances (UCA) of P113.799 million; b)
dormant SL balances amounting to P16.393 million; c) SLs with negative
balance totalling P12.268 million; and d) SLs captioned as “For
Reconciliation” of P68.064 million. (Paragraph No. 1.113)
i. The accuracy and reliability of various Asset and Liability accounts cannot
be ascertained due to SLs with abnormal or negative balances amounting
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to P1.754 million and P1.076 billion, respectively, thus rendering the
reliability of the Financial Statements for CY 2022 doubtful. (Paragraph
No. 1.130)
2. Terms and conditions of the warehousing facility contract entered into by and
between the COMELEC and Blue Chip Marketing with contract amount of
P7.00 million were not complied by the lessor, including deliverables stated
in the terms of reference, thus, causing undue disadvantage to the
COMELEC. (Observation No. 2).
3. A total of 3,880 sets of Disinfecting Mat with Tray Foot Bath costing P1.145
million procured thru Negotiated Procurement under Emergency Cases which
were set to be used in the 2022 NLE, remained undistributed/unutilized as of
June 8, 2023, due to prolonged procurement process, thereby, defeating the
intended purpose for which the same were procured. (Observation No. 3).
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Emergency Cases; (b) prepare specific plan of action relative to the
distribution of the remaining 3,880 sets of Disinfecting Mat with Foot Bath,
to avoid their rapid deterioration and possible loss or wastage of government
assets; and, (c) henceforth, properly plan the procurement of goods and
services to avoid delay in the various procurement stages to ensure that
procurement of needed supplies and materials serve their intended purpose
and will contribute to the efficiency and effectiveness of the COMELEC
operation.
4. Procurement process for various supplies and materials for CY 2022 NLE
and Barangay and Sanggunian ng Kabataan Elections (BSKE) exceeded the
maximum period allowed by 72 days for 114 POs out of 136 or 84 percent
totaling P106.475 million, contrary to Annex “C” of the Updated 2016 RIRR
of RA No. 9184 and Section 37 of the same RIRR. Hence, longer acquisition
time that exposed the COMELEC to risk of not achieving or optimizing the
intended purpose of the procured election supplies and materials.
(Observation No. 4).
We recommended that Management require the PMD to: (a) monitor and
expedite the procurement process in accordance with Annex “C” of the
Updated 2016 RIRR of RA 9184 to avoid delay in the implementation of
programs, projects and activities; and (b) ensure that the winning bidder
formally enters into contract with the procuring entity within the prescribed
period of 10 calendar days to comply with the delivery terms of the contract
pursuant to Section 37 of RA 9184.
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Procurement Plan (APP) per Section 7.2 of the 2016 RIRR of RA 9184; and
b) absence of Contract and Certificate of Availability of Funds to properly
support the claim, contrary to Section 4 of PD 1445, Sections 9.1 and 9.2 of
COA Circular No. 2012-001 dated June 14, 2012 and Section 37, Chapter 2
of the GAM, Volume I and Section 40, Chapter V, Book VI of Executive
Order 292. (Observation No. 6).
7. Cash advances totaling P2.169 billion remained unliquidated even when the
purpose for which it was granted has been served, contrary to Section 89 of
PD 1445 and pertinent provisions of COA Circular No. 97-002. (Observation
No. 7).
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We reiterated our prior year’s audit recommendations with modifications and
Management agreed to require the FSD to: (a) deduct immediately the full
remining amount of excess overtime from the salaries/other claims of all
active employees; and (b) undertake necessary measures to intensify
collection of the overpaid salaries and other personnel benefits from the
active employees and those who are already separated from service.
9. Cash advances were granted to 1,539 AOs totaling P5.985 billion despite
non-liquidation/non-settlement of the previous cash advances given to them,
contrary to Section 89 of PD 1445 and COA Circular No. 97-002.
(Observation No. 9).
10. Cash advances for the payment of allowances, honoraria and other similar
payments were granted to Election Officers (EOs) at gross amount of P5.830
billion, contrary to Sections 4.2.1 and 4.2.2 of COA Circular No. 97-002.
(Observation No. 10)
11. Additional Fund transfers were released to the AFP, DFA and PS-DBM
totaling to P648.537 million, despite non-liquidation of previously transferred
funds. Moreover, fund transfers to six government agencies amounting to
P500.977 million have not been liquidated despite completion of the
project/activity, contrary to COA Circular No. 94-013. (Observation No. 11)
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We reiterated our prior year’s audit recommendation and Management
agreed to require the Chief Accountant to monitor the fund transferred to the
NGAs and demand immediate liquidation from those agencies with
unliquidated balances and such liquidation to be supported with necessary
documents to fully account the utilization of the fund transfer after
completion of each activity, thus, avoiding their accumulation and the
account from becoming dormant.
12. Unused balance of fund transfers from various Local Government Units
(LGUs) for the conduct of plebiscites totaling P114.493 million remain
unrefunded notwithstanding completion of the projects, contrary to Section
4.9 of COA Circular No. 94-013, thus, deprived the Source Agencies (SA) of
additional funds which could have been utilized for operations and other
priority projects. (Observation No. 12)
13. The Cash in Bank- LCCA account with a balance of P2.052 billion as at
December 31, 2022, included trust receipts P301.253 million, which were not
remitted to the Bureau of Treasury (BTr ), contrary to Section 65 of PD 1445
and Section 10 of the General Provisions of the General Appropriations Act
(GAA) FY 2022, thus depriving the national government of the proper
disposition or use of such resources. (Observation No. 13)
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14. A total of 1,241 Accountable Officers (AOs) were not bonded and 589 have
expired fidelity bonds, contrary to Section 4.1 of Treasury Circular 02-2019
dated April 25, 2019 thus, exposing the agency to risk of not being
indemnified in case of loss, misuse or misapplication of funds. (Observation
No. 14)
15. The Bank Reconciliation Statements (BRS) were not submitted to the Office
of the Auditor within the prescribed period with delay ranging from 36 to 196
calendar days, contrary to Sections 3.1 and 3.4 of COA Circular No. 96-011.
(Observation No. 15)
16. Unserviceable PPE from COMELEC field offices in Regions IV-B, V, VII,
VIII, XII and CAR amounting to P80.208 million remain undisposed,
contrary to Section 79 of PD 1445, National Budget Circular (NBC) No. 425
and COMELEC Minute Resolution (MR) No. 08-0819, thus resulting in
further deterioration of the assets and deprivation of the Agency of any
benefit or income that may be derived from their disposal, not to mention the
optimum utilization of the space occupied by said properties. (Observation
No. 18)
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the procurement of goods to be able to award contracts or purchase orders
that will be advantageous, fair and reasonable to the government.
18. COMELEC Region XIII incurred lease expenses with an aggregate amount of
P0.744 million for leased equipment, instead of procuring LCD projectors
intended for the conduct of trainings, with a view of ensuring economy in the
operations, consistent Section 2 of PD No. 1445. (Observation No. 20)
19. The COMELEC withheld taxes for CY2022 amounting to P1.773 billion in
compliance with Revenue Memorandum Circular No. 23-2014 dated June 20,
2014. Of which, P285.893 million pertaining to the current year was still
unremitted as of audit date, contrary to Section 2.58.A.2 of BIR Revenue
Regulation (RR) No, 2-98. In addition, COMELEC failed to prepare and
submit the alphabetical list of employees and list of payees on income
payments subject to creditable and final withholding taxes, which is not in
compliant with Section 2.83.3 of the Revenue Regulations No. 1-2014.
(Observation No. 25)
20. The COMELEC has not fully complied with the remittance of mandatory and
other deductions to the GSIS, Pag-IBIG and PhilHealth, contrary to
regulations issued by the GSIS, Pag-IBIG and PhilHealth as evidenced by the
presence of unremitted balances of mandatory and other deductions for CY
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2022 totaling to P8.891 million as at December 31, 2022. (Observation No.
26).
Other equally significant audit observations and recommendations were also noted
and discussed in detail under Part II of this report.
The above findings and recommendations contained in the report were discussed
with concerned officials of the agency in an exit conference held on June 8, 2023.
Management’s views and reactions were considered in the report, where
appropriate.
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H. Status of Implementation of Prior Years’ Audit Recommendations
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