Annex I

Dipolog School of Fisheries

Validation of Implementation of Prior Years Audit Recommendations
As of December 31, 2016

STATUS OF
IMPLEMENT
ATION
OBSERVATIONS AND MANAGEMENT RESULTS OF
REF (Full, Partial,
RECOMMENDATIONS ACTION VALIDATION
Ongoing or
Non-Imp)

Monthly Bank Reconciliation AOM 2015 The Management Fully Implemented

Statements (BRS) were not promptly 001 directed the Accounting
prepared and submitted in Office Personnel to
contravention to Section 74 of prepare & submit Bank
Presidential Decree (PD) No. 1445 Reconciliation
and COA Circular No. 92125A dated Statements to the
March 4, 1992, thus preventing auditor within the
thorough review of cash in bank prescribed period.
transactions and the early detection of
any errors of Schools cash in bank
account balances. Snapshots were
secured through the
Recommendations: Disbursing Officer /
Cashier
a. require the person responsible to
promptly prepare the Bank
Reconciliation Statements and
submit the same within the
prescribe period to the auditor
concerned; and

b. in case of delay arrival of Bank

Statement, require the Disbursing
Officer to obtain a snapshot copy
of Bank Statement at the first week
of the following month.

Verification of the schools bank AOM 2016 The Management Fully Implemented
accounts disclosed that it has a Payroll - 002 directed the concerned
Fund Account with the Development personnel to close the
Bank of the Philippines (DBP) without payroll fund account
specific authority or legal basis in and remit the
violation of Executive Order (EO) No. maintaining balance to
338 dated May 17, 1996 and EO 431 the Bureau of Treasury.
dated May 30, 2005 and its

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 STATUS OF
IMPLEMENT
ATION
OBSERVATIONS AND MANAGEMENT RESULTS OF
REF (Full, Partial,
RECOMMENDATIONS ACTION VALIDATION
Ongoing or
Non-Imp)

implementing guidelines. The payroll fund

account was already
Recommendation: closed and the remitted
the maintaining balance
We recommend that management to the Bureau of
close the above unauthorized payroll Treasury.
fund account and remit the maintaining
balance to the Bureau of Treasury.

Delayed submission of paid AOM 2016 The management Not Implemented The concerned
Disbursement Vouchers and its - 003 issued a memorandum personnel cannot
mandatory Financial Reports to the directed the concerned cope up with the
office of the Auditor such as: monthly personnel to submit the required period of
and year-end trial balances, monthly reports to the submission
and year-end Financial Statements accounting office not considering the
thereby, hampering the timely conduct later than the 5th day of bulk of the
of audit in violation of Section 100 and the following month. transactions
122 of PD 1445 and Section 7.2.1.a of especially during
COA Circular 2009-006 dated enrolment and
September 15, 2009. assessment.
Reports were not
Recommendations: submitted to the
accounting office
a. require the Disbursing Officer to within five (5) of the
submit the reports with all the ensuing months
necessary supporting documents and some DVs are
not attached to the
to the Accounting Unit not later
report, resulting to
than the 5th day of the following the delay of the
month; preparation and
submission of the
b. require the Accounting Unit to required financial
submit the Disbursement reports considering
Vouchers and its mandatory that the
Financial Reports to the Auditor Bookkeeper/Accou
concerned within ten (10) days of nting Officer is also
sthe ensuing months; preparing
Budgetary Reports
c. in case of unjustifiable failure on
the part of the concerned official
or employee to abide with the
above provisions, impose

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 STATUS OF
IMPLEMENT
ATION
OBSERVATIONS AND MANAGEMENT RESULTS OF
REF (Full, Partial,
RECOMMENDATIONS ACTION VALIDATION
Ongoing or
Non-Imp)

necessary sanctions as provided

under paragraph (2), Section 122
of PD 1445.

The Disbursing Officer and the AOM 2016 The management Partially On-going
Accounting Unit failed to reconcile the -004 directed the Implemented reconciliation of the
year-end balance of Cash in Bank Bookkeeper to update SSP / Trust Fund.
LCCA (Trust Fund and IGP Fund) and their subsidiary ledgers.
Cash MDS, Regular amounting to At the same, the
P1,118,836.22 and P4,859.97, management required
respectively, contrary to the provisions the bookkeeper and the
under Section 181 (par. c), Volume 1 disbursing officer to
of Government Accounting and Audit have reconciliation on
Manual (GAAM). their respective
balances.
Recommendations:

a. Direct the Accounting Unit to

update their subsidiary ledgers,
especially the above account titles,
considering the importance of such
report;

b. Require the Disbursing Officer and

the Accounting Unit to reconcile
their respective records, if possible
on a daily bases;

c. Direct the Disbursing Officer to

submit her reports to the
Accounting Unit within five (5) days
of the ensuing month; and

d. Direct the Accounting Unit to abide

the above procedures in terms of
recording in the books of accounts.

The school failed to submit copy of AOM 2016 The management Fully Implemented
Purchase Orders/Perfected Contracts - 005 directed the Supply
within five (5) working days from Officer to submit copies
issuance thereof to the auditor of Purchase
concerned in violation with COA Orders/Perfected

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 STATUS OF
IMPLEMENT
ATION
OBSERVATIONS AND MANAGEMENT RESULTS OF
REF (Full, Partial,
RECOMMENDATIONS ACTION VALIDATION
Ongoing or
Non-Imp)

Circular No. 2009-001 dated February contracts to the auditor

12, 2009, thus, prevented the later to within the prescribed
conduct timely review and inspection period.
pointing out defects and/or
deficiencies noted.

Recommendation:

direct the Supply Officer to submit the

copies of Purchase Orders/Perfected
Contracts within the prescribed period
in compliance to the requirement of
COA Circular No. 2009-001.

Cash Advances granted to Officers AOM No. Cash Advances should Fully Implemented
and Employees, for payroll, travel and 2015 - 008 be properly monitored
other purposes, were remained as and be liquidated on
unliquidated, which accumulated to time
P626,065.75 as of December 31,
2014, in violation of Section 5.8 of
COA Circular No. 97-002 dated
February 10, 1997.

Recommendation:

We recommend that the persons

accountable for the aforementioned
cash advances should settle
immediately the balances of their
respective outstanding cash advances.

We also recommend that the Head of

Accounting Unit should monitor the
cash advances granted and enforce
strictly the policies and regulations on
the granting and liquidation of cash
advances, to ensure that no additional
cash advances are granted to officers
and employees, unless previous cash
advances are liquidated/settled,
pursuant to COA Circular No. 97-002.

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 STATUS OF
IMPLEMENT
ATION
OBSERVATIONS AND MANAGEMENT RESULTS OF
REF (Full, Partial,
RECOMMENDATIONS ACTION VALIDATION
Ongoing or
Non-Imp)

Subsidiary Ledgers were not AOM No. Maintain and update Partially Subsidiary Ledgers
maintained by the Accounting Unit in 2015-010 subsidiary ledgers as Implemented were not updated.
violation of Section 12, Volume II of required As noted, the last
Manual of National Government entry made was on
Accounting System (NGAS), thereby March 2015
validity of the transactions could not be
readily ascertained.

Recommendation:

We recommend that the Accounting

Office maintain Subsidiary Ledgers for
each account as required by Section
12, Volume II of the New Government
Accounting System Manual (NGAS).
The Subsidiary Ledger should contain
the details of the General Ledger
Accounts.

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