Findings No.4 COA Annual Audit Report 2006

July 26, 2008

Also, require the PPDO to conduct regular monitoring of the projects especially those which involve much amount for validation and to prepare validated report of accomplishment which would meet the needs or expectations of the top management or LCE for the decision- making. Read more

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Findings No.3 COA Annual Audit Report 2006

July 26, 2008

3. Failure to require the submission of status report on projects from the recipient local government units and non-monitoring of projects funded by the Province totaling P30,564,619.65 may lead to unreliable report of project accomplishment of the agency and may weaken the accountability and responsibility of the end users.

For strong internal control system, recipient agency should submit Report of Implementation showing the physical accomplishment and financial status of the project fund received from the provincial government. Project Accomplishment Report should be validated to provide for a reasonable assurance on the reliability of the reported status/accomplishment. The report should be simple yet comprehensive and understandable for users/readers especially the management to have a reliable basis for recommendation /and or decision- making.

Interview with the Provincial Planning Development Office (PPDO) personnel disclosed that monitoring of projects totaling P 30,564,619.65 was seldom undertaken. (Annex 3) That, the accomplishment report prepared was based on submitted report by the Municipal Planning and Development Coordinator, if there is, but more often the PPDO personnel will do the gathering of information/data from the Municipality, there being no accomplishment report submitted. Likewise, recipient Barangays were not submitting status report of the provincial project funds.

The report prepared by the PPDO was based on the format prescribed by the National Economic and Development Authority (NEDA) which accordingly the Local Chief Executive (LCE) or the top management may not be inclined to read because of its being not only tedious but also it does not provide the needed information for decision making at a glance.

This has transpired because prior to the release of fund, the provincial government did not stipulate in the Memorandum of Agreement (MOA) with the recipient LGU the rendition or submission of Accomplishment Report showing the financial and physical status of project fund.

The monitoring personnel at the PPDO explained that regular monitoring was not made possible due to the unavailability of vehicle.

Vehicle is not a hindrance in performing the expected task on project monitoring considering that the Provincial Government owned a number of good running-condition or serviceable vehicles. It may only need coordination with other offices or bringing the matter to the top management or LCE’s attention.

In effect, accomplishment Report may not be representing the actual financial and physical status of accomplishment as of a given period.

Furthermore, the prevailing practice may weaken the accountability and responsibility of the recipient LGU or end users.

The management had likewise concurred with our observations and assured the implementation of our recommendations.

Recommendation:

Require the recipient agency to submit Accomplishment Report showing the physical and fund status of implementation, in a form of MOA entered into by and between the Provincial Government and the recipient LGU. The MOA shall stipulate the responsibility of the latter to render financial and physical status report of the project implementation and be accountable for the proper use of the fund pursuant to accounting and auditing rules and regulations.

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Findings No.2 COA Annual Audit Report 2006

July 26, 2008

2. Transfers of properties to other government agencies summing P4,462,508.00 were not supported with the required documents as prescribed under Section 123 of COA Circular No. 2002-003 and Section 186 of COA Circular 92-386 and were not properly communicated to the agency head concerned thus, proper accounting of these government’s assets could not be undertaken, eventually exposing government properties to possible loss or misuse. Read more

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Findings No.1 COA Annual Audit Report 2006

July 26, 2008

1. Deliveries/procurement of properties worth P 5,023,014.66 did not follow strictly the provision of Section 120 of COA Circular No. 2002-003, thus resulting to understatement of Agency’s assets in the financial statements.

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Findings No.4 COA Annual Audit Report 2005

July 26, 2008

3. Instead of a modified accrual method of accounting, the agency used cash basis of accounting for Real Property Tax (RPT) income in violation of Section 19(b) of COA Circular No. 2002.003 thus, receivable account arising from the provincial share on RPT collected by municipalities was not recognized and RPT income was understated. Read more

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Findings No.2 COA Annual Audit Report 2005

July 26, 2008

2. Disbursement and replenishment process of Petty Cash Fund were not in accordance with the procedures prescribed under Section 48 of COA Circular No. 2002-003 thus, the agency’s asset particularly cash account is overstated. Likewise, the purpose of maintaining petty cash fund was not realized. Read more

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Findings No.1 COA Annual Audit Report 2005

July 26, 2008

The provisions on the grant and liquidation of cash advances as provided under COA Circular No. 97-002 were not fully observed by management, thus resulted to accumulation of unsettled cash advances accounted as “Cash Disbursing Officer” and Due from Officers and Employees” of P8,884,644.74 and P4,046,919.48, respectively. Read more

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Findings No.3 COA Annual Audit Report 2004

July 26, 2008

3. Cash advances for travel worth P4,421,316.44 remained unliquidated and were treated as Accounts Payable at the end of the year in violation of COA Circular No. 2002-003 dated June 20, 2002, thus resulting to existence of receivable and payable accounts to the same employee. Read more

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Findings No.2 COA Annual Audit Report 2004

July 26, 2008

2. Seventy eight percent (78%) of the total expenses in the Special Education Fund were disbursed as donations instead of the Province taking cha Read more

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Findings No.1 COA Annual Audit Report 2004

July 26, 2008

1. Plant, Property and Equipment account was erroneously reduced by P1,171,054.71 due to erroneous conversion of accounts, thus the asset and government equity accounts are understated by same amount.

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