DEPARTMENT OF AGRICULTURE

MATRIX ON EFFECTS ON THE FINANCIAL STATEMENTS OF ACCOUNTING ERRORS AND DEFICIENCIES

For the year ended December 31, 2016

A. Accounting Errors
REF ACCUMULATED
CAAR PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS LIABILITIES SURPLUS/
Part II (DEFICIT)
Pages Unrecorded liquidation of Petty Cash ₱ (111,243.53)
111,243.53
91-92 cash advances Various Expenses ₱ (111,243.53)
(20.a) Unrecognized book/bank Due from GOCCs 2,120.70
reconciling items Cash in Bank - Local
(13,537,445.49) (15,771,920.01)
Currency, Current Account
Cash in Bank - Foreign
14,683,731.33 (1,148,406.54) 92,680.73
Currency, Savings Account
Interest Income 2,906.19
Various Liabilities ₱ 992,951.76
Bank Charges (350.00)
Non-translation at year-end Cash in Bank - Foreign
28,234,781.26
of foreign currency Currency, Savings Account
28,234,781.26
monetary items using the Gain on Foreign Exchange
28,234,781.26
closing rate (FOREX)
Unrecorded remittance to Cash-Treasury/Agency
1,087,316.46 (1,087,316.46) (1,087,316.46)
the BTr Deposit, Regular
Restoration of unreleased Cash-Modified Disbursement
(1,846,555.99)
MDS checks 1,846,555.99 System (MDS), Regular
Accounts Payable (1,846,555.99)
Unrecorded cash shortage Cash-Collecting Officers (619,739.99)
discovered during the cash 619,739.99 Due from Officers and
619,739.99
examination Employees
Unrecognized prior year Cash in Bank-Local
600,005.00 600,005.00 600,005.00
deposits Currency, Current Account
Cash balance per book Cash in Bank-Local
2,123,082.05 (2,123,082.05) (2,123,082.05)
without existing cash in Currency, Current Account
bank Cash in Bank-Foreign
1,791,025.36 (1,791,025.36) (1,791,025.36)
Currency Savings
Pages Funds transferred to an Due from NGAs 10,770,120.00
92-93 NGA was recognized as
10,770,120.00
(20.b) Donations instead of Due Donations 10,770,120.00
from NGAs
Unrecognized deliveries of Due from NGAs (1,354,652.53)
goods from Procurement 1,354,652.53
Service (PS)-DBM Office Supplies Expenses (1,354,652.53)
 REF ACCUMULATED
CAAR PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS LIABILITIES SURPLUS/
Part II (DEFICIT)
Page 93 Unrecognized allowance for Impairment Loss - Loans
(1,383,414,967.37)
(20.c) impairment for dormant/ Receivable
1,383,414,967.37
long outstanding Loans Allowance for Impairment -
(1,383,414,967.37)
Receivable Loans Receivable
Pages Supplies not yet received by Drugs and Medicines for
439,750.00
94-95 beneficiaries and projects Distribution
(20.d) under construction Agricultural and Marine
221,250.00
recognized as Donations Supplies for Distribution
Property and Equipment for
52,002,118.61
Distribution
Other Supplies and Materials
805,680.00
for Distribution
82,506,686.82 Other Structures (114,182.34)
Construction in Progress -
14,339,313.06
Infrastructure Assets
Construction in Progress -
Buildings and Other 16,147,757.49
Structures
Advances to Contractors (1,335,000.00)
Accounts Payable 178,335.00 7,279,872.18
Various Expense accounts 75,048,479.64
Procured equipment for Agricultural and Marine
49,488,198.00
distribution directly Supplies for Distribution
recognized as debit to Due 95,727,334.00 Property and Equipment for
46,239,136.00
to NGAs Distribution
Due to NGAs 95,727,334.00
Non-recognition of Medical, Dental and
deliveries of vials of animal Laboratory Supplies 178,073,155.20
178,073,155.20
rabies vaccine Inventory
Other Prepayments (178,073,155.20)
Composting facilities for Property and Equipment for
31,244,816.00
distribution recognized as 31,244,816.00 Distribution
Donations Donations 31,244,816.00
Unrecognized issuances of
Office Supplies Inventory (31,186.56)
inventories
Accountable Forms Inventory (142,360.00)
315,505,930.64
Medical, Dental and
Laboratory Supplies (349,226.82)
Inventory
Agricultural Supplies
(2,317.60)
Inventory
 REF ACCUMULATED
CAAR PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS LIABILITIES SURPLUS/
Part II (DEFICIT)
Construction Materials
(2,451.51)
Inventory
Other Supplies and Materials
(5,243,311.35)
Inventory
Agricultural and Marine
(169,327,677.42)
Supplies for Distribution
Property and Equipment for
(138,233,899.38)
Distribution
Livestock Held for
(2,173,500.00) (315,505,930.64)
Consumption/Distribution
Page 94 Unrecognized PPE Office Equipment 256,860.00
277,229.18
(20.e) acquisitions Communication Equipment 20,369.18 277,229.18
Non-derecognition of PPE Motor vehicles (46,429,428.17)
disposals/transfers Office Equipment (680,885.48)
Information and
429,977,686.58
Communication Technology (27,165,494.93)
Equipment
CIP accounts (355,701,878.00) (429,977,686.58)
Pages Semi-expendable items still Office Equipment (5,212,715.65)
94-95 carried in the PPE accounts Agricultural and Forestry
(7,286,066.39)
(20.f) Equipment
Books (59,949.00)
Communication Equipment (2,445,277.64)
Furniture and Fixtures (7,742,798.38)
Information and
Communication Technology (14,583,991.62)
44,925,050.78 Equipment
Machinery (167,655.52)
Other Machineries and
(91,140.00)
Equipment
Other PPE (124,807.50)
Other Transportation
(664,081.90)
Equipment
Technical and Scientific
(6,546,567.18) (44,925,050.78)
Equipment
Pages Incorrect provision of Accumulated Depreciation -
2,672,746.13 (118,066.91)
95-96 Depreciation Other Land Improvements
(20.g) Accumulated Depreciation -
(9,701.75)
Office Equipment
Accumulated Depreciation-
(1,267,880.94)
ICT Equipment
 REF ACCUMULATED
CAAR PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS LIABILITIES SURPLUS/
Part II (DEFICIT)
Pages Accumulated Depreciation -
(26,507.72)
95-96 Communication Equipment
(20.g) Accumulated Depreciation -
(1,226,404.64)
Motor Vehicles
Accumulated Depreciation -
(20,007.72)
Furniture and Fixtures
Accumulated Depreciation -
(4,176.45) (2,672,746.13)
Other PPE
Double recognition and Information and
recognized directly as Communications Technology (152,581.38) (312,560.00)
expenses instead of PPE Equipment
1,046,538.62
Machinery 574,000.00
Training Expenses 159,978.62
Donations 574,000.00
Completed projects not CIP-Buildings and Other
(356,318,738.51)
reclassified to appropriate Structures
PPE accounts CIP - Land Improvements (1,353,219.86)
CIP - Infrastructure Assets (369,044.89)
358,041,003.26
Land Improvements 1,353,219.86
Buildings and Other
356,318,738.51
Structures
Infrastructure Assets 369,044.89
Funds transfers and Construction in Progress -
36,158,756.56
liquidations of LGUs Infrastructure Assets
recognized as Financial Construction in Progress -
36,501,256.56
Assistance Buildings and Other 342,500.00 380,983.89
Structures
Financial Assistance to LGUs 36,120,272.67
Liquidation of funds Due from Local Government
(1,253,663.50)
transferred to LGUs were Units
directly recognized as Property and Equipment for
826,702.50
Accumulated Surplus and Distribution
Donations Construction in Progress -
199,041,688.39 186,422,916.25
Infrastructure Assets
Construction in Progress -
Buildings and Other 12,618,772.14 197,895,510.89
Structures
Donations 719,216.50
Pages Unrecognized allowance for Impairment Loss – PPE (48,290,692.80)
96-97 impairment for 48,290,692.80 Allowance for Impairment - (48,290,692.80)
(20.h) unserviceable/obsolete PPE PPE
 REF ACCUMULATED
CAAR PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS LIABILITIES SURPLUS/
Part II (DEFICIT)
Page 97 Derecognition of
1,894,538.19 Other Assets (1,894,538.19) (1,894,538.19)
(20.i) unserviceable PPE
Gasoline consumption not Guaranty Deposits (154,052.57)
recognized in the books 154,052.57 Fuel, Oil and Lubricants
(154,052.57)
Expenses
Payroll for allowances Advances to Officers and
612,500.00
directly charged to expense 612,500.00 Employees
accounts Various Expenses 612,500.00
Payments of the delivered
animals not yet credited to 180,288,080.00 Deposit on Letters of Credit (180,288,080.00) (180,288,080.00)
Deposit on Letters of Credit
Mobilization fee Advances to Contractors 1,015,384.77 524,999.16
1,015,384.77
inappropriately recognized Donations 490,385.61
Pages Obligations not recognized
97-98 at year-end 598,808.05 Accounts Payable 598,808.05 (598,808.05)
(20.j)
75,485.54 Other Payables 75,485.54 (75,485.54)
Unreverted long outstanding Accounts Payable (2,056,524.80)
payables without valid 2,059,824.83 Due to Officers and
(3,300.03) 2,059,824.83
claims Employees
Financial Assistance from
an NGO in prior year 725,000.00 Due to NGAs (725,000.00) 725,000.00
recognized as Due to NGAs
Erroneous credit to the
898,281.97 Other Payables (898,281.97) 898,281.97
payable account
Collections from various 935,905.18 Other Payables (157,106.24)
sources erroneously credited Other Unearned Revenue 52,368.75 (149,625.00)
to payable accounts Due to NGAs (831,167.69)
Various Income Accounts 1,085,530.18
TOTAL (OVER)
UNDERSTATEMENT and ₱ 3,459,726,896.93 ₱(1,943,595,092.71) ₱ 92,043,251.56 ₱ (2,035,638,344.27)
ERRORS
Total Assets, Liabilities and
₱ 75,155,028,701.14 ₱ 4,514,896,709.64 ₱ 70,640,131,991.50
Accumulated Surplus/(Deficit)
OVER ALL EFFECT 2.59% 2.59%
Materiality Level (5% of Total
₱ 3,757,751,435.06
Assets)
% Error to Materiality Level 92.07%
 B. Accounting Deficiencies
REF.
CAAR PARTICULARS AMOUNT ACCOUNTS AFFECTED
Part II
Pages
Unreconciled/Unsupported SL and GL
98-100 ₱ 349,211,584.63 Cash in Bank, Local Currency, Current Account, Due to NGAs
balances
(21.a)
76,676,068.25 Loans Receivable
16,457,494.69 Other Receivables
882,444,508.29 Various PPE accounts
9,685,143.67 Advances for Operating Expenses
324,378.18 Advances to Special Disbursing Officers
3,240,234.31 Advances to Officers and Employees
82,402,044.89 Advances to Contractors
3,605,843.00 Other Prepayments
6,749,769.10 Deposits on Letters of Credit
2,367,712.47 Guaranty Deposits
927,307,685.42 Other Assets
10,641,286.66 Accounts Payable
60,291,245.41 Due to NGAs
400,000.00 Due to GOCCs
150,000.00 Due to Operating Units
87,975,449.73 Guaranty/Security Deposits Payable
30,381,976.69 Other Payables
Page 100 Unreconciled discrepancies in the balances Due from NGAs, Due from GOCCs, Due from LGUs, Due from Bureaus, Due from
991,654,817.05
(21.b) per confirmation RFOs, Due from Operating Units, Due from NGOs/POs
Pages
100-101 Late recognition of delivered inventories 36,085,865.09 Various Inventory accounts
(21.c)
Page 101
Non-provision of depreciation 1,214,659,898.98 Various PPE accounts
(21.d)
Pages
Unreconciled differences between book
101-102 8,703,464,261.80 Various PPE and Inventory accounts
and physical count balances
(21.e)
Non-disclosure of the Reconciliation of Net
Cash Flows from Operating Activities to
1,663,122,900.72
Surplus/(Deficit) in the Notes to Financial
Statements
TOTAL ACCOUNTING
₱15,159,300,169.03
DEFICIENCIES