STATUS OF IMPLEMENTATION

OF PRIOR YEARS’AUDIT RECOMMENDATIONS

Of the 18 audit recommendations embodied in the prior year’s consolidated

annual Reports, nine were implemented, eight were partially implemented and one was
not implemented.

Observations and Management

Auditor’s Validation
Recommendations Actions/Comments
2016

1. The balances of Request for write-off was Implemented

Receivables account totaling made for COA CO’s
P1,738,114,806.25 as at receivables from
December 31, 2016 was Department of Foreign
unreliable due to: (a) inclusion of Affairs (DFA), Presidential
dormant accounts in COA Commission on Good
Central Office (CO) and Government (PCGG) and
Regional Office (RO) XIII Philippine Retirement
amounting to P1,116,214.62 and Authority (PRA). in a letter
P229,179.63, respectively, or a dated February 12, 2016.
total of P1,345,394.23; (b)
unsettled long outstanding Management made an
Receivables-Disallowance and assurance to continue the
Charges totaling P45,806.40 in review of the receivables
COA RO I; and (c) uncollected from Philippine National
long overdue receivable accounts Bank (PNB) for possible
totaling P678,083.71 in COA RO resolution of their
VI. outstanding account with
We recommended that: COA which includes the
electric consumption of
a. COA-CO: P74,900.32.

i. review and assess the Furnished the COA Auditor

possibility of collecting theon July 14, 2017
existing receivables account;photocopies of the required
and documents in support of the
Request for Write-Off of
ii. review, analyze and dormant accounts
reconcile the dormant amounting to
accounts of which collection P2,687,617.30.
is already remote and
initiate the request for Sent Memo dated August
authority to write off the 31, 2017 to Human

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 amounts from the books of Resource Management
COA-CO once requirements Office (HRMO) requesting
are complied with; certified copies of Death
Certificates of deceased
b. COA RO XIII require the COA employees with
Regional Accountant to outstanding accounts with
demand the liquidation of cash the Commission.
advances from employees with
unsettled accounts and exhaust Region XIII
all possible remedies to collect
dormant receivables. If
settlement is remote, identify The Accounting Section
receivables aged 10 years and issued demand letters for
above and prepare a request accounts of existing
for write-off of the accounts employees. Adjustments
following the guidelines and amounting to P28,347.60
procedures provided under were already made under
COA Circular No. 2016-005 Journal Entry Voucher Nos.
dated December 19, 2016; JEV-2017-07-000093 and
JEV-2017-08-000119 dated
c. COA RO I enforce full July 4, 2017 and August 31,
settlement of such 2017, respectively.
disallowances from all persons
determined liable, pursuant to Region I
Section 5.4 of the 2009 Rules
and Regulations on the Receivables-Disallowances
Settlement of Accounts (RRSA) amounting to P45,806.40
in order not to deprive the has been fully settled as of
government of additionalDecember 31, 2017.
financial resources to defray Payments received were
government expenditures. duly deposited with the
Authorized Government
d. COA RO VI require: Depository Bank (AGDB)
on various dates in CY
i. require the OIC-Chief, 2017.
Administration, Training
and Finance Services to: Region VI
a. send communications/
written notices to all Some debtors could not be
debtors regarding their traced, while supporting
unpaid accounts; and documents to support
accounts receivables could
b. send bills to other not be located/retrieved.
agencies for the unpaid
fees of their personnel Not all debtors were sent

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 who attended trainings demand letters due to
and seminars conducted unknown locations or
by the COA Regional addresses.
Office VI as well as the
costs of Barangay Collection of Accounts
Training Manuals sold to Receivable was only partial
ALGANO; despite the demand letters
sent.
ii. Regional Accountant to:
Request for authority to
a. make an evaluation of write-off accounts
the status of Receivables receivable which are
accounts to determine the deemed uncollectible had
probability of their been submitted to the
collections, pursuant to Commission Proper for
paragraph 2, Section 9, proper action and/or
Chapter 5 of the GAM, approval. No reply was
Volume I; received as of year-end.

b. prepare a List of
Accounts Receivables to
be written off in
accordance with the
procedures stated in sub-
paragraph 8.2 of COA
Circular No. 2016-005
dated December 19, 2016:
and

c. file a request for

authority to write off
accounts deemed
uncollectible in order to
reconcile and clean the
books of dormant
receivables.

(Ref.: 2016 CAAR, pages 32-38)

2. In COA-CO, of the Reconciliation of PS Partially implemented

balance of Due from National account with the updated
Government Agencies (NGAs) - schedules is being done Reconciling items that
Procurement Service- regularly, in close were already identified in
Department of Budget and coordination with PS previous year remained
Management (PS-DBM) representative. unadjusted.
amounting to P8,335,056.15 as at Deliveries for the

65
December 31, 2016 was doubtful P6,627,809.71 was Reiterated in Part II of this
due to the unreconciled balance recognized in the books report.
of P6,627,809.71 between the based on Inspection and
Accounting and PS-DBM Acceptance Reports
records. Moreover, some (IARs).
purchases in previous years
remained undelivered; thus, PPSMS has already
affecting the efficiency and charged the following
effectiveness of the operations of APRs to COA’s
the requesting offices. overpayment with a total
amount of P600,921.40 to
We reiterated our prior year’s PS through the following:
recommendation that
Management require: 1. APR # 2017-08-016,
P546,124.54 overpayment
a. the Property Officer to: from APRs for the years
2008, 2012 to 2015
i. reconcile records with the
PS-DBM on undelivered 2. APR # 2017-09-018,
Agency Purchase Requests P18,156.12 overpayment
(APRs) and for the prompt from 2016 APRs
delivery of the items
procured for the efficient 3. APR # 2017-10-019,
operation of the agency, P36,640.74 overpayment
closely monitor the from APR # ______
undelivered items, and
apply or offset the existing In response, the
APR balances in the Procurement Service-NCR
procurement of new items; issued Certificates of Cash
and Availability (CAA) with
total amount of
ii. exert more efforts to P561,281.48 as of October
reconcile on a monthly basis 4, 2017.
the records of the Property,
Procurement and Supply Further reconciliation of
Management Services IARs furnished by PPSMS
(PPSMS) with the resulted to adjustments of
accounting records and deliveries from PS-DBM
inform the Accounting with a total amount of
Division of the noted P129,782.90 recorded thru
discrepancy/cies, if any for various JEVs number.
necessary adjustments in the
books, if warranted; Cash Advances to PS-DBM
were not given due dates to
b. the Accounting Office to deliver on the APR,
correct the Aging Schedule of however, as of November

66
the account Due from NGAs – 30, 2017, the on-going
PS-DBM for proper reconciliation of advances
monitoring and exert more to PS-DBM showed that
efforts in verifying the status of the balance of P396,385.34
these amounts. were aged as follows:

(Ref.: 2016 CAAR, pages 39-42) Over 1 year P 8,870.29

2-5 years 159,712.59
6 -10 years 210,553.21
11-14 years 17,249.25
Total P396,385.34

3. Cash advances totaling Implemented

P916,200.00, granted to the
Accountable Officer in COA RO
VIII, for special purpose/time-
bound undertaking, remained
unliquidated and/or partially
liquidated for four to five
months. Further, additional cash
advances were granted even if
previous cash advances have not
yet been liquidated or settled,
contrary to Section 89 of
Presidential Decree (PD) No.
1445 and Sections 4.1.3 and 5.7
of COA Circular No. 97-002
dated February 10, 1997,
resulting in the accumulation of
unliquidated cash advances and
precluded the timely recognition
of expenses.

We recommended that
Management require the
Accountable Officer of COA
RO VIII to immediately settle
her unliquidated cash
advances. Moreover, require
the Accounting Office to
strictly adhere to Section 89 of
PD 1445 and Sections 4.1.3 and
5.7 of COA Circular No. 97-
002 in the grant and
liquidation of cash advance.

67
(Ref.: 2016 CAAR, pages 42-43)

4. The accuracy and COA-CO Implemented

existence of Inventories totaling
P 24,488,670.07 could not be
ascertained due to: (a) non- RPCI for the 1st Semester
conduct of physical count and has been submitted on
non-submission of the Report on August 16, 2017 to the
the Physical Count of Inventory Accounting Office and to
(RPCI) in COA-CO, ROs VI, the Office of the Auditor.
VIII and XII; (b) unreconciled
Inventory account balances The inventories per RPCI
between the Property and reconciles with the
Accounting records in ROs VI, Accounting records-
XI and XIII; (c) purchased Supplies Ledger Cards.
Inventory items recorded as
outright Expense and non- Region VI
issuance of Inventory Custodian
Slip (ICS) for Semi-Expendable Issued Office Order
Inventory items in RO XII; and creating an Inventory
(d) other deficiencies affecting Committee which
Inventory accounts. conducted physical count of
Office Supplies and
We recommended that Materials held in stock.
Management require: Prepared and submitted
Report on Physical Count
a. the Property Unit in COA- of Supplies and materials.
CO and in COA ROs VI, VIII
and XII to conduct a physical Region VI
count/inventory of supplies by
type, including Semi-
Expendable property, using the The Supply Officer was
Accounting Schedules to required to furnish the
account for all the inventory Accountant with copies of
items recorded in the books PO, DR and IAR upon
hand in hand with the Property delivery and after
Unit Schedules and inspection by the members
prepare/submit the of the Committee on
corresponding RPCI semi- Inspection.
annually, not later than July 31
and January 31 of each year Monthly Report of Supplies
for the first and second and materials Issued
semester, respectively. (MRSMI) was submitted to
the Accountant
b. the Property Officer in COA
RO VI: Issued Office Order

68
 designating a personnel in
i. to furnish the Accountant the Supply Section to
with copies of the Delivery update the stock cards and
Receipts (DRs) and prepare all reports.
Inspection and Acceptance
Reports (IARs) immediately The Accountant issued JEV
after acceptance of deliveries No. 2017-07-000722 to
as bases of payment and drop the items recorded in
updating of SLCs; the Waste Materials Report

ii. to submit the monthly Region XI

Report of Supplies and
Materials Issued (RSMI) to
the Accountant; and The reconciliation is on-
going as of December 31,
iii. to update the SCs in 2017, the Accounting Staff
order to hasten the and Supply Custodian have
preparation of RPCI, and to reconciled 100 inventory
periodically reconcile the items, which is 20% of the
balances with those of the total inventory items
SLCs and the RPCI;

c. the Regional Accountant in Region XIII

COA RO VI to effect necessary
adjustments in Inventory Inventory date was under
accounts using the appropriate JEV No. 2017-05-000348
forms and entries prescribed in dated May 15, 2017, while
the GAM to ensure reliability the Supply Division already
and accuracy of the account used Account Codes in the
balance presented in the Receipts and Issuances of
financial statements; Supplies and same are
consistently indicated in the
d. the Regional Accountant and forms and reports
Property Officer in COA RO used/submitted. The
XI: discrepancy as of
December 31, 2017
i. to identify the differences amounted to P59,770.76,
and reconcile their respective resulting to 87.62% or
records so that the necessary P423,127.82 reduction
adjustments can be made to from last year’s figure of
present the correct balances P482,901.58.
of the Inventory accounts and
reconciliation can be done The IT Equipment costing
regularly; under P15,000.00 were
already reclassified.
ii. to have the same

69
 description/code for every
item in the Inventory for
reconciliation purposes;

iii. to set a cut-off date for

the current purchases and
issuances of the supplies and
materials for CY 2017 and
thereafter reconcile the prior
year’s balances; and

iv. comply with Section 9,

Chapter 8 of the GAM,
Volume I.

e. the Property Officer in COA

RO XII to issue ICS for semi-
expendable items costing less
than P15,000.00 including
those directly charged to the
PCF and to ensure that the
semi-expendable items charged
to the PCF are covered also
with an Inspection and
Acceptance Report.

f. concerned official to assess

the required manpower in the
Property and Supplies Unit of
COA RO XII to ensure full
compliance with the afore-cited
existing rules and regulations;

g. the Supply and Accounting

Unit in COA RO XIII:

i. to reconcile their records

periodically and to use the
same description for each
inventory item for uniformity
and easy reconciliation in
order to present reliable and
accurate inventory balances
for the period; and

ii. make representations with

70
 the Technical and
Information Technology
Services, Central Office for
some enhancements to the e-
NGAS, particularly for the
addition of General Ledgers
of some Inventory items to
conform with the Revised
Chart of Accounts; and

h. the Regional Accountant in

COA RO XIII to reclassify the
erroneous recording of semi-
expendable IT equipment.

(Ref.: 2016 CAAR, pages 43-52)

5. The year-end balance of Completed the actual Partially implemented

Property, Plant and Equipment inventory taking on
(PPE) accounts totaling December 15, 2017 as Although there was a
P1,584,099,030.98 was scheduled. conduct of physical
unreliable due to: (a) inventory, the
unreconciled balances between Derecognized in the books corresponding RPCPPE
the Accounting and Property the following COA motor was not yet prepared and
records; (b) inclusion of PPE vehicles transferred to COA submitted.
items in the Report on the Regional Offices with total
Physical Count of PPE acquisition cost amounting
(RPCPPE) which were not to P4,534,155.45, to wit:
physically counted/inspected; (c)
non-derecognition of disposed 1. Mitsubishi Utility
PPE items; (d) unrecorded Van, diesel – F1306-AA47
donations; and e) other (COA Region VIII)
deficiencies which caused the
over/understatement of some 2. Isuzu Crosswind
PPE accounts. Wagon XL-2007 F1308-
AA20 (COA CAR)
We recommended and
Management agreed to require 3. Isuzu Crosswind
the COA CO and COA RO VI Wagon XL-2007 F1308-
Property Units to: AAa35, (COA CAR)

a) conduct a complete 4. Isuzu Crosswind

physical inventory of PPE Wagon XL-2007 F1308-
using the Accounting Schedules AA29 (COA Region I)
to account for all the PPE items
recorded in the books, hand-in- 5. Ford Focus Car Sedan

71
hand with the Property Unit F1301-AA42 (COA
Schedules, to determine Region XVI)
unrecorded items and items
that are no longer existing; 6. Isuzu Crosswind
Wagon XL-2007 F1308-
b) prepare a list of all the AA24 (CO ARMM) (IR
end-users who did not present still for signature of
their assigned laptops and Director Bato S. Ali, Jr.)
demand its immediate
presentation. End-users who Additional 78 computer
failed to present the issued laptops were
laptops must be held presented/counted to by
accountable; PPSMS in compliance to
Administration Sector
c) regularly reconcile the unnumbered memo dated
balances of the PPE accounts August 3, 2007.
per Accounting and Property
records to ensure reliability of Reconciliation of property
the account balance reflected in records are being done
the financial statements as well regularly using the
as reconcile with other quarterly summary of
property records like the purchases provided by
Property Acknowledgement PPSMS.
Receipt (PAR).
Conditions of PPE items
d) ensure that the condition will be reflected in 2017
(whether serviceable or RPCPPE and for the
unserviceable) of the items succeeding years.
counted are reflected in the
RPCPPE; Restoration/replacement of
property tags has been
e) replace/restore lost done:
inventory/property tags of  IT Equipment –
items counted in secured 95% done
manner. Likewise provide  Office Equipment -
property numbers for all items 80%
and to see to it that property  F/F & SE items–on-
numbers of assets per going preparation
accounting and property of ICS
records are the same; to complete missing data on
RPCPPE.
f) locate documents to
determine their acquisition 10% of the items are still
dates and costs to update the subject for completion of
property records for items that data
do not have data on unit values 90% still subject for

72
and acquisition costs; reconciliation with
Accounting Records prior
We recommended that to preparation of final and
Management require the reconciled 2017 RPCPPE
Property Officer in COA RO I
to: Region I

a) conduct subsequent
rounds of inspection for PPE The Region has fully
items which were not complied with the
physically inspected during the recommendations and has
inventory-taking; and likewise employed
corrective and/or improved
b) before the start of each strategies in the conduct of
annual inventory-taking, the CY 2017 inventory
provide an official copy of the taking of all properties.
RPCPPE to the Inventory
Team as well as to the witness, For CY 2017 inventory
to guide the Team in checking taking, a directive or order
the location of the assets and was issued to all employees
persons responsible therefor. issued with laptops and
other properties with
We recommended that instructions that they will
Management instruct the have to present their laptops
Accounting Unit in COA RO I to the Inventory Team.
to properly derecognize from There was a verbal
the books of accounts the communications, made to
disposed PPE items in concerned COA personnel
accordance with Section 39, to present their properties
Chapter 10 of the GAM, issued to them at the
Volume I. Region. The latest
RPCPPE (CY 2016) was
We recommended that also used as the inventory
Management in COA RO XIII: Team’s guide in conducting
the concluded CY 2017
a) adhere to the rules and PPE inventory taking of the
regulations in the recognition COA Region.
and measurement of assets
acquired through non- Region XIII
exchange transactions set
under Section 11, Chapter 10 Request for a tax
of the GAM, Volume I; and declaration of the property
was made in December
b) assign responsible 2017 and received on
personnel to facilitate the January 13, 2018. Attempt
annotation of the donated to recognize the land at fair

73
parcels of land from the market value as indicated in
mother title and apply for a the tax declaration failed
Tax Declaration to establish due to occurrence of error
the value of the properties in the e-NGAS. An
which will be the basis for assistance from the
recognition in the books of Information and
accounts. Technology Section was
requested to address the
We recommended that glitches.
Management require:
Region III
a) the Regional Accountant
of COA RO III to record the
equipment found at station to All equipment were already
reflect the correct amount of recorded and adjusted in the
PPE as at a given date; and books of accounts.

b) Property Officers of the Region IV-B

COA RO III and VIII to
include in the RPCPPE the Unserviceable properties
unreported PPE found at were disposed of thru
station. negotiated bidding due to
the failure of two (2)
We recommended that consecutive public bidding.
Management require the
Regional Accountant of COA Region VI
RO IX to make adjusting
entries for the Semi-
expendable properties which Prepared IIRUP for fully
were previously recognized as depreciated items of
PPE as required under Section property.
10, Chapter 8 of the GAM,
Volume I. Issued Office Order to
personnel assigned at the
We recommended that supply Section to assist the
Management require: Supply Officer in
recording, updating and
a) the Property Officer of maintaining property cards,
COA RO IV-B to initiate receiving deliveries and
action to dispose of their preparing inspection and
unserviceable properties not Acceptance Report.
only to generate additional
income but also to make
available additional office
space;

74
b) the Property Officer of
COA RO XII to:

i. update the Inventory

and Inspection Report of
Unserviceable Property
(IIRUP) to report all the
unserviceable properties of
the agency; and

ii. follow up with the

concerned Technical Audit
Specialist to conduct
appraisal as soon as possible
and to prepare the
Appraisal Report on the
vehicle so that disposal can
be conducted immediately.

We recommended that
Management require the
Property Officer of COA RO
VI to prepare the IIRUP for
fully depreciated properties as
basis for their derecognition.

We recommended that
Management require:

a) the Property Officer of

COA RO VI to maintain
Property Cards (PC) to record
all acquisitions immediately
after receipt and acceptance of
delivery, as well as issuances
and disposals thereof, and

b) the Property Officer of

COA CO to implement the
renewal of issued PARs at least
every three years or every time
there is a change in the
accountability or custodianship
of the property.

(Ref.: 2016 CAAR, pages 52-63)

75
6. In COA RO VIII, the The Regional Cashier made Implemented
absence of written conveyances a diligent effort to require The cash advances granted
for two parcels of land which the the submission of in CY 2016 were 100%
agency presently occupies is liquidation documents. liquidated as of December
contrary to Section 4(8) of PD 31, 2017
1445 and exposes the agency to
the risk that it might not be able
to assert its rights for the
continued use of said properties.

We recommended that
Management require the
Accountant to disclose in the
Notes to the Financial
Statements that the COA RO
VIII occupies two parcels of
land on which the Regional
Office and the Provincial
Satellite Auditing Office
(PSAO)-Maasin are located but
they have yet to be recorded in
the books of accounts. We also
recommended that
Management exert extra
efforts to obtain the deed of
conveyances or other
documents evidencing
ownership or authorizing the
use of the properties that can
be used as basis for recording
in the books.

(Ref.: 2016 CAAR, pages 63-64)

7. Losses discovered during CAR Implemented

the physical count of PPE in
COA CAR and RO III
amounting to P155,995.00 and
P65,390.00 respectively, or
totaling P221,385.00 were not
reported to the Accounting Unit
for proper accounting; thus, the
value of the lost items were not
derecognized and the
corresponding Receivable was
RLSDDP and Notice of
Loss from the concerned
officers were submitted to
the accounting office for
proper recording.
Region III

76
not recognized, contrary to
Sections 38 and 41, Chapter 10 All the equipment were
of the GAM, Volume I. already recognize and
adjusted in the books of
We recommended that accounts.
Management:

a) require the concerned

accountable officers to submit
to the Accounting Unit the
Report of Lost, Stolen,
Damaged, Destroyed Property
(RLSDDP) and Notice of Loss;
and

b) require the Accounting

Unit to set up Receivable
accounts to record the
accountability of the
Accountable Officers
simultaneous with the
derecognition of the lost PPE.

(Ref.: 2016 CAAR, pages 64-66)

8. In COA RO IV-B and COA-NIR Implemented

Negros Island Region (NIR),
Management failed to submit
copies of contracts, Purchase The Management furnished
Orders (POs) and Job Orders the Office of the Auditor
(JOs) for deliveries of goods and copies of POs/JOs for the
services, contrary to COA CY 2017.
Circular Nos. 2009-001 and
2009-002 dated February 12, Region IV-B
2009 and May 18, 2009,
respectively; thus, preventing the The head of BAC
timely review thereof and the Secretariat submitted the
immediate communication to two PSAO contracts and
Management of the audit results the documents pertaining
and correction of errors and thereto.
deficiencies, if any.

We recommended and
Management agreed that COA
RO IV-B and COA NIR submit
copies of contracts, POs and

77
JOs, together with the
supporting documents, within
five days after approval so that
the Auditor can timely conduct
the review/verification thereof
and immediately communicate
to Management the audit
results and correction of errors
and deficiencies, if any.

(Ref.: 2016 CAAR, pages 66-67)

9. In the COA CO, there The FY 2016 COA’s APP Implemented

was a significant delay in was approved in March
procurement activities from 2016, while for this year
requisition up to actual delivery; APP was approved last
thereby, affecting the efficient February 2017.
and effective discharge of the
requesting offices’ functions. The 2017 requests for
office supplies and
We recommended and materials and other semi-
Management agreed to require expendable items under
the General Services Office to: shopping mode of
procurement were acted by
a) implement efficiently the PPSMS.
Annual Procurement Plan
(APP) in accordance with the The compliance of the
mode and time schedule of the suppliers to PO/JO
procurement; specifications including
date of delivery is being
b) expedite the procurement strictly monitored and
process and strictly monitor penalty were imposed for
suppliers’ compliance with the failure to comply therein.
delivery period and the terms
and conditions in the PO, to
ensure timely delivery of goods
and issuances thereof to end-
user offices; and

c) ensure that the POs are

properly accomplished and the
“conforme” portion is properly
signed by the authorized
signatory of the supplier and
with indication of the date
received in order to effectively

78
impose the penalty clause, if or
when warranted.
(Ref.: 2016 CAAR, pages 67-68)
10. The continued existence
of a high percentage of errors in
the computation of Terminal
Leave Benefits (TLBs) were
noted in the 270 claims out of
398 claims pre-audited during
CY 2016, casting doubt on the
reliability of leave balances.
Further, the non-early detection
of errors in leave balances
resulted in the granting of
monetization without sufficient
leave credits, contrary to CSC
MC No. 41, s 1998.
We recommended and
Management agreed to initiate
the development of a employees
computerized system to
generate real time accurate
leave balances with, but not
limited to, the following
functionalities: (a) online filing
and approval of leave
application; (b) e-posting of
leave credits, absences and/or
undertimes with the automatic
computation of balances after
the postings; and (c) inclusion
in the COA online portal in
order to update officials and
employees of their leave
balances. We also
recommended that, in the
meantime, a supervisor be
required to review the
computations and entries
posted in the leave cards by the
concerned HRMO personnel to
ensure that computations of
leave credit balances are
MS Excel format was used Implemented
last June 2017 in
determining the leave credit
balances of all COA
employees to be able to
establish the correct and
final leave credit balances.
As of this date a total of
2,400 reviewed leave
records of active employees
using the enhanced MS
excel format.
As of December 31, 2017 a
total of 170 leave records of
retired/resigned/transferred
were also
reviewed using said format.
Items (a) and (c) is not yet
included in WALeMS but
but Management in close
coordination with the ITO,
will request these features
for future inclusion.
MS Excel format for
computing LWOP was first
used on August 2017 in
computing LWOP of
separated COA employees
As of December 31, 2017 a
total of 25 leave records of
separated COA employees
with LWOP were reviewed
using MS Excel format for
computing LWOP
79
accurate.

(Ref.: 2016 CAAR, pages 68-71)

11. Required financial Region IV-B Partially implemented

reports, other monthly reports
and transaction documents,
together with the corresponding Reports were not yet
supporting documents were not submitted due to lack of
submitted to the Auditor within manpower resources.
the prescribed period in ROs IV-
B, VIII and Negros Island Regions NIR and VIII
Region (NIR), contrary to
Section 100 of PD 1445, Section The management regularly
6.05 of COA Circular No. 95- submits the financial and
006 and Section 8 of COA accounting reports together.
Circular No. 94-001; thus,
precluding the conduct of a
timely audit which could serve as
aid in Management decisions and
inputs in enhancing financial
accountability.

We recommended that
Management of COA ROs IV-
B, VIII and NIR require the
Regional Accountants to
strictly follow the rules and
regulations in the submission of
financial statements, records
and financial reports, together
with the required supporting
documents to the Auditor
within the prescribed period.

(Ref.: 2016 CAAR, pages 71-72)

12. Management failed to The Management requested Partially implemented

provide adequate safeguards and the Regional Offices to
physical controls over the submit RPCPPE for
valuable painting collections, paintings/works of art. As
contrary to the provisions of August 30, 2017, only 4
provided under Sections 123 and ROs complied with the said
58 of PD 1445. request. The Management
committed to continue to
We recommended and account for the missing

80
 Management agreed to paintings and inform the
account for the missing Office of the Auditor on
paintings and prepare and any progress.
submit a report to the Office of
the Auditor.

(Ref.: 2016 CAAR, pages 72-74)

2015

13. Deliveries by the Deliveries by PS-DBM are Implemented

Procurement Service of the now being monitored by
Department of Budget and the Management and there
Management (PS-DBM) of is a regular reconciliation of
urgently needed office supplies balances with the PS-DBM.
were delayed from 3 days to 367
days, thus, jeopardizing the
operations of the requesting
offices/end-users due to
unavailable/inadequate office
supplies and materials; and the
transferred funds were not fully
utilized favorably by the agency.

We recommended and
Management agreed to:

a. require the Assistant

Commissioner of the PFMS to
instruct the Accounting Office
to exert more effort to
reconcile on a monthly basis
their records with the PPSMS
with the PS-DBM and make
necessary adjustments in the
books if warranted;
a.
b. require the Director of the
GSO to: (i) implement the
assignment of staff who will
focus on the following tasks: to
make representations with the
PS-DBM to expedite the
deliveries covered by the
APRs; to make and inventory
of all PRs served to the PS-

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 DBM and delivery documents
and determine the undelivered
items; (ii) if the required items
cannot be delivered anymore,
cause the replacement thereof
with other items and/or offset
the amount of the APRs
against the unutilized fund
transfers; and (iii) recommend
the purchase of the commonly
used supplies and materials
with other suppliers subject to
Section 3 of EO 359, who can
promptly deliver/serve the
requirements of the requesting
offices/end-users; and
b.
c. Direct the Internal Audit
Office to recommend a policy
to address the recurring issue
on the continuous
delay/incomplete delivery of
supplies/materials/equipment
procured from the PS-DBM
requiring the procurement
from other suppliers in
pursuance of Section 3, EO
359; if necessary.
c.
(Ref.: 2015 CAAR, pages 44-47)

14. The eleven COA Partially implemented

Regional Offices implemented
several Gender and Development GAD Plans and Budget
(GAD)-related activities with was not submitted on the
total disbursements of prescribed date.
P113,330,691.76 out of the total
approved GAD Budget of
P95,609,029.07.

We recommended that the

Head of the Agency require
the:

a. GAD Focal Persons in the

COA CO to submit the GAD

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 Plans and Budget on the
prescribed date to determine
whether the planned GAD
activities are carried out and
the corresponding budget is
fully utilized; and
a.
b. Regional Directors to keep
the cost of their GAD activities
within the limits of the
approved GAD Budget but not
to exceed the 5 percent of the
total appropriation of the
agency’s concerned regional
offices.
b.
(Ref.: 2015 CAAR, pages 52-54)

15. Only the COA CO, ROs
IX, X and XI, and CAR reported
to have existing facilities and
activities that would address the
concerns of senior citizens and
differently-abled persons for CY
2015 which are required under
Section 35 of the General
Provisions of RA 10651 or the
General Appropriations Act
(GAA) for FY 2015.
We recommended that the
Regional Directors assigned at
COA ROs I, II, III, IV-A, IV-B,
V, VI, VII, VIII, XII, XIII and
ARMM to submit the reports
on their compliance with
Section 35 of the General
Provisions of RA 10651 or the
General Appropriations Act
(GAA) for FY 2015, and BP
Blg. 344 and RA 7277 to the
concerned Auditors.
RO IV-A suspended the Partially implemented
setting up of priority lane
exclusive for Senior
Citizens and Differently-
abled Persons with
Disability as it will be
affected by the on-going
installation of modular
partition in the different
Sections of the Regional
Office. In Region XIII, SC
and PWD projects were not
yet implemented however
the Management assured
that they prioritize the
concerns of SC and PWD
in transacting official
business in their offices.

(Ref.: 2015 CAAR, pages 54-55)

2014
Partially implemented

83
16. The prescriptive period in RO VII
giving notice to observers to the The Management of RO
Bids and Awards Committee There was no reported XII has been compliant
(BAC) proceedings, posting of Management comment/ with the bidding
performance bond, issuance of action procedures,
Notice of Award (NOA) and documentations and time
Notice to Proceed (NTP) were RO XII elements in the succeeding
not complied with, contrary to endeavor.
the Revised IRR of RA 9184. Liquidated damages
amounting to P32,755.35 Management has not
We recommended and was imposed for the recommended the
Management agreed to delayed delivery of 9 sets blacklisting of the
require: of Netbook Computer, 22 contractor to Department
units Desktop and 1 set of Trade and Industry
a. the respective BAC tower server since the items of a higher
Chairman of COA ROs VII quality/version were
and XII to strictly comply with delivered.
the bidding procedures,
documentations and
prescriptive time in the
execution of the contract;

b. the BAC Chairman of COA

RO XII to compute the number
of days of default in the
delivery of goods and services
by the supplier and enforce
payment of liquidated damages
for late delivery; and to assess
the justification/s that may be
presented by the supplier
which caused the deferment of
delivery. If explanations do not
merit consideration, consider
the forfeiture of the supplier’s
performance bond; and

c. the Head of the Procuring

Entity of COA RO XII to
recommend to the Department
of Trade and Industry (DTI)
the blacklisting of the supplier
for breach of contract, if
warranted.

(Ref.: 2014 CAAR, pages 53-55)

84
2013

17. The accuracy and Partially implemented

ownership of the lots acquired by
RO X through a patent registered
in the name of COA and by RO
XII through purchase in the
amount of P229,000.00 could not
be ascertained as they were
neither booked up nor covered by
a Certificate of Title in the name
of COA, contrary to Section 63
of PD 1445; thereby,
understating the Land accounts
of ROs X and XII.
We recommended that ROs X
and XII:

a. take appropriate and

immediate action to secure the
Certificate of Title in the name
of COA pertaining to
the lot acquired through
patent/purchase; and

b. book up the land acquired

through patent/purchase either
at acquisition cost or appraised
value, pursuant to Section 63 of
PD 1445.

(Ref.: 2013 CAAR, pages 46-47)

85
18. The existence and
Accounting records showed Not implemented
accuracy of Other Assets account that this amount represents
at RO VI amounting to the balance carried over the The Letter request was not
P1,188,287.25 could not be years for which no detail signed by the Regional
determined due to the absence of was provided. Efforts were Director, hence not sent to
a schedule supporting the same, exerted to locate the the Commission Proper as
contrary to Section 12 of properties, but to no avail, of December 31, 2017.
MNGAS, Volume II; thus, hence were presumed to This observation is
reliability of the recorded amount
have either been lost due to reiterated in this year’s
in the financial statements as ofthe transfer of the Regional ML thru the issuance of
December 31, 2013 could not be Office from Elizalde AOM No. 2018-002 dated
ascertained. Building, Iloilo City to February 13, 2018.
Pavia, Iloilo in 2002, or
We recommended that RO VI could have fully The OIC Chief ATFS will
require the OIC Regional depreciated/deteriorated send a new request to the
Accountant, together with the due to passage of time. Commission Proper to
Acting Supply Officer, to carry out the
establish the accuracy and OIC Chief of ATFS implementation of
existence of the recorded Other requested authority from recommendation of this
Assets account by supporting the Commission proper to observation.
the amount with a schedule or drop from the books of
an Inventory and Inspection accounts these items of
Report on Unserviceable property which could no
Properties. longer be located or traced.

(Ref.: 2013 CAAR, pages 47-48)

86