United Church of Christ in the Philippines

Project: “Construction of the New Church Building”

Independent Auditor’s Report &

Fund Accountability Statement
For the years starting November 2004 to January 31, 2014
 AUDIT
OBJECTIVES,
SCOPE &
METHODOLOGY
 AUDIT OBJECTIVES

1. To express an opinion on whether the fund accountability statements or its

equivalent, of the Project: “ Construction of the New Church Building ” for
the period starting November 2004 to January 31, 2014 fairly present, in all
material respects, project revenues received and cost incurred for the
periods then ended in conformity with Philippine Financial Reporting
Standards or other comprehensive basis of accounting, including cash
receipts and disbursements basis and modifications of the cash basis.
2. To evaluate and obtain a sufficient understanding of the internal control
structure and procedures and the project management.
3. To perform tests to determine whether the Committee/ Project Contractors
complied, in all material respects, with agreement terms and applicable
laws and regulations.
4. Attain the causes of delays and changes in implementation and the financial
indications thereof.
5. Ascertain project outstanding financial obligations as of January 31, 2014.
Scope and methodology
1. Review and familiarization of the following:
a.) The “Approved Construction Plans”, the agreement
between the Committee and Project Contractors, the sub-
agreements between Sub- Committees and the Project
Contractors and other implementing institutions, if applicable,
and contracts and subcontracts with third parties, if any.
b.) The budgets, project implementation plans and
procedures approved by the Church Council/ Committee/ Sub-
Committees.
c.) Pertinent circulars, regulations, and handbooks issued by
the Committee/ Church Council/ Sub- Committees.
d.) All project financial and progress reports; and charts of
accounts, organizational charts; roles, functions and
accountability of the members/ personnel, accounting systems
descriptions, procurement policies and procedures, and receipt,
warehousing and distribution procedures for materials, as
necessary to successfully complete the required work.
2. Examine (which will include interim work) the fund
accountability statements, or its equivalent, including the
budgeted amounts by category and major item; the costs
reported by the Committee as incurred during the period
covered by the audit; and the revenues received from donors
for that period.
3. Review and evaluate the Committee’s and Sub- Committee’s
internal control structure to obtain a sufficient understanding
of the design of relevant control policies and procedures and
whether those policies and procedures have been placed in
operation. In this connection, we shall furnish you with a
memorandum of suggestions or recommendations for improving
your Building Project Management and internal accounting
control system and procedures.
4. Conduct tests of compliance with agreement terms,
circulars, regulations and handbooks and applicable laws
and regulations.

5. Hold entrance and exit conferences with the Committee

and Church councils, if practicable.

6. Obtain written confirmation from the authorized officers

of the Committee and the Church council concerning
representations made to us in connection with the audit.

7. Render a report on the results of our examination that

shall be prepared and submitted to the Church committee.
 Independent
Auditor’s Report
on the
Fund Accountability
Statement
 INDEPENDENT AUDITOR’S REPORT
ON THE FUND ACCOUNTABILITY STATEMENT

The Church Council

United Church of Christ in the Philippines
Bonifacio Street, Davao City

We have audited the fund accountability statement of the Project:

Construction of the New Church Building for the period November 2004 to
January 31, 2014. The fund accountability statement is the responsibility of
the church council’s management. Our responsibility is to express an opinion
on the fund accountability statement based on our audit.

We conducted our audit of the fund accountability statement in

accordance with the Philippine Standards on Auditing. Those standards require
that we plan and perform the audit to obtain reasonable assurance about the
fund accountability statement is free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the fund accountability statement. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
 The results of our tests are contained in the Executive
Summary of Audit Results appended to the fund
accountability statement.
In our opinion, except for the effects of the audit
results discussed in the preceding paragraph, the fund
accountability statement referred above presents fairly,
in all material respects, project cash receipts and costs
incurred for the period then ended in accordance with
the basis of accounting described in Note 1.
Ampil, Elises, Ciudadano
& Co., CPAs

By:
 
JOSE Q. ELISES
Partner
  August 23, 2014
 Fund
Accountability
Statement
 United Church of Christ in the Philippines
Fund Accountability Statement
E.Y. 2004-2014
CASH IN BANK, BEGINNING BALANCE, November 2004 Php 0.00
ADD: CASH RECEIPTS
Fund Raising Activities
Sunday Service 26,717,673.44
Donations and Pledges 13,893,214.16
Fund raising and other activities 10,781,229.95
Advances Payable 2,700,000.00
Undetermined deposits 12,509,649.10 66,601,766.65
TOTAL CASH AVAILABLE 66,601,766.65
LESS: CASH DISBURSEMENTS
Church construction
Direct Materials 33,789,421.56
Direct Labor 11,731,058.08
Indirect Expenses 5,436,747.45
Other fund raising activities 628,840.89
Payment of Advances Payable 2,740,000.00
Undetermined withdrawals 9,740,923.11 (64,066,991.09)
CASH IN BANK, ENDING BALANCE, January 31, 2014 Php 2,534,775.56
Composed of:
Cash in bank- UB 923 676,238.76
Receivable from UCCP General Fund 1,858,536.80
TOTAL Php 2,534,775.56
 Cash receipts transaction flow
E.Y. November 2004- January 2014

14,000,000.00

12,000,000.00

10,000,000.00

8,000,000.00

6,000,000.00

4,000,000.00

2,000,000.00

-
0 5 6 7 8
0 0 9 0
20 2 0 0 0 0
0 0 1 1 1
1 2 3 4
0 4- 5- 6 -2
7-
2 -2 - 20 - 2 0
2 0
2 0 1
0 1
0 0 8 9 - - 2
20 2 0
2 0 00 0 0 0 10 11 2
13
-
2 2 20 20 20 20
1
20
Cash disbursements transaction flow
E.Y. November 2004- January 2014

16,000,000.00

14,000,000.00

12,000,000.00

10,000,000.00

8,000,000.00

6,000,000.00

4,000,000.00

2,000,000.00

0.00
0 5 0 6 0 7 0 8 0 9 1 0 1 1 1 2 1 3 1 4
- 20 - 20 - 20 - 20 - 20 - 20 - 20 - 20 - 20 - 20
0 4 0 5 0 6 0 7 0 8 0 9 1 0 1 1 1 2 1 3
20 20 20 20 20 20 20 20 20 20
 United Church of Christ in the Philippines
Building Construction Cost
As of January 31, 2014

Construction in Progress- Materials Php 37,772,323.14*

Construction in Progress- Labor 13,412,574.59*
Construction in Progress- Overhead 7,678,847.84*
TOTAL BUILDING COST Php 58,863,745.57**

* Includes donations in kind amounting to Php 2, 867, 993.59

** Includes unpaid balance to L.V. Ledesma Construction, Inc.
amounting to Php 5,420,000.00.
 Church building cost
E.Y. 2004- January 31, 2014
Php 37,772,323.14
13% CIP Materials
CIP Labor 13,412,574.59

23% CIP Indirect 7,678,847,84

expenses
Php 58,863,745.57
64% TOTAL COST
3. Assumptions and Rationale in the preparation of the fund
accountability statement

Cash Receipt Transactions

E.Y 2004-2005

a. Since there were no available records, it was assumed that there was no
beginning balance.

b. Building Fund collections were based on available bank deposit slips and
Board of Deacons' report indicating that said collections were for building fund
but were deposited with RCBC Account 1-522-80017-8 (UCCP's GenFund )

c. Metrobank deposits assumed to be Building Fund Account. The amount of

Php 2,383,375.41 represents the balance of Metrobank 730-7 (UCCP Account)
as of May 2005 which started in December 2002 net of withholding taxes and
Php 200,000.00 unknown withdrawal dated June 19,2003.
Other Findings
Factual Findings Annex
a. We summarized all the receipts and issuances of construction See
materials during the years from January 2007 to October Annex a
2013 and compared the result against the inventory list on
file prepared by the Space Max Committee .We noted
substantial differences in the ending balances of some
construction materials, as shown below:

Construction Materials Balances Unit

Manila Bricks 12,259 pcs
Cement 5,527 bags
Concrete Hollow Blocks #4 &
#6 3,950 pcs
Non-slid Tiles Gray 1x8x8 2,600 pcs
Screw Tek point 2,600 pcs
Common Wire Nails 2,190 kgs
Coco Lumber 1,826 pcs
Ready Mix Concrete 4,000 PSI 1,611 cu/m
Deformed Bars 12mm 1,402 lengths
Granite Tile 60x60 1,357 pcs
Deformed Bars 10mm 1,178 lengths
Screw 6x25 Gypsum 1,000 pcs
DETAILS OF THE AUDIT
REPORT WILL BE
UNDERTAKEN DURING
A POST INTEREST
GROUP PRESENTATION.
Please signify your interest
with the Board of Deacons.
 End
of
Presentation