National Government Sector

Form - Audit Plan

Cluster V – EDUCATION AND EMPLOYMENT

AUDIT PLAN/WORKSTEP
CY 2014 - 2015

Auditee/Address: TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY

(for Audit Team Audit Plan) Regional Office No. IX, Zamboanga City

Prepared by: MILAGROS L. AQUINO Date Prepared October 23. 2014

Approved by: ESTRELLA B. AVILA Date Approved: October 26, 2014

Instruction: The Audit Plan/Workstep shall be prepared by the Audit Team for each Auditee. The SA and RSA have to customize his/her Audit Plan/Workstep per
Audit Group per Cluster.

A. Introduction

A.1 Agency Background

• Agency’s Mandate

The Technical Education and Skills Development Authority (TESDA) was created by virtue of Republic Act No.
7796, otherwise known as the TESDA Act of 1994. This Act, signed by President Fidel V. Ramos on August 25, 1994,
replaced and absorbed the National Manpower and Youth Council (NMYC), the personnel and functions pertaining to the
Bureau of Technical and Vocational Education (BTVED) of the Department of Education, Culture and Sports and the
Apprenticeship Program of the Bureau of Local Employment of the Department of Labor and Employment. TESDA is
mandated to become the country’s lead institution in molding a workforce that can meet the challenges of trade
liberalization and global competition. TESDA was created to mobilize the full participation of the industry, labor, technical
and vocational institutions, local government and civil society for skilled manpower development programs.

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TESDA’s thrust is the formulation of policies, plans and programs for a fully integrated technical education and skills
development that give direction and thrust to human resource development, promote linkages between industry, labor and
government and encourage equal participation of the different sectors of the Philippine Society.

• Vision

TESDA is a leading partner in the development of Filipino workforce with world-class competence and positive
work values

• Mission

“We believe in demonstrated competence, institutional integrity, personal commitment and deep sense of
nationalism.”

• Key Results Area, Sector Outcome, Organizational Outcome

Success Indicators Allotted Division/ Individual

MFO (Targets + Measures) Qty. Budget Accountable
(P’000)
MFO 1 – TESD POLICY SERVICES
STRATEGIC
PRIORITIES
Policies issued and developed 56 16.0
% of stakeholders rated the policies as good or better 60% 10.0
TESD Policies % of policies are updated, issued and disseminated 80% 10.0 ROD-Planning/POs
in the last three years

Meetings conducted 16 160.0

R/PTESDC Annual TESD Action Plans formulated 4 30.0 ROD-Planning/POs
Quarterly Reports of the TESDC action plans 12 16.0

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Resolutions/Policy recommendations 16 32.0

R/PTESDC capability-building programs 2 80.0

Executive Meeting Conducted 12 100.0 ROD-Planning

Committee

R/PQMC Management Review Meetings conducted 16 80.00 RO/POs

PQF Sectoral Registry of Qualifications established 2 5.0 ROD/POs

(Dentistry, engineering, tourism & maritime)

Partnerships and New Partnerships forged 51 40.0 ROD/POs/TTIs

Linkages
Persons profiled (YPSC/NCAE) 88,226 176.3 ROD/POs/TTIs
TVET Clients extended with Career Guidance 8,300 89.2
Career Guidance services
Functioning Blue Desks 40 50.0 ROD-Planning/
Blue Desks clients served 1,800 10.0 POs/TTIs
Blue Desks clients hired 320 2.0
Career Advocacy Congress Participated 50.0

Technology Technology researches prepared 7 255.0 ROD-

Research Regionally initiated TESD research 1 70.0 Planning/POs/TTIs
Impact Evaluation Impact Evaluation Study of TVET programs 1 60.0 ROD-Planning/POs
1 50.0
Communication Plan developed 9 27.0
Advocacy and PRs (press releases )prepared 38 57.0 ROD-Planning/
Communication Radio guesting/TV appearance 38 57.0 POs/TTIs
Press briefings 16 40.0
Newsletters/TESD information materials dissiminated 12 60.0
SMAC programs 7 80.0

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MFO 2 –TESD DELIVERY SERVICES - SEE ATTACHED PMMS

MFO 3 – TESD REGULAR SERVICES - - do -
SUPPORT TO OPERATION - do-
Core function
MFO 1 - TESD POLICY SERVICES -do-
MFO 2 - TESD DELIVERY SERVICES -do-
MFO 3 - TESD REGULATION SERICES --do-

 Agency’s Structure, Key Officials, Personnel Complement (organic/non-organic)

For CY 2014, the auditee has a total workforce of 51 personnel with 31 in a permanent/regular position, while 20
on a job order status. TESDA Regional Office No. IX is headed by Mr. Lorenzo G. Macapili as the Regional Director.

Attached is the Organizational Chart for details. (Annex A)

 Appropriations (by Major Final Outputs & Programs/Projects/Activities (PPA)

See Annex B
 Other Source/s of Funding

TESDA maintains a Revolving Fund under its Sariling Sikap Project (SSP) which was authorized under Executive Order
No. 939 dated March 2, 1984. The unexpended balance of SSP at year end is transferred to the TESDA Development
Fund.

 Funds Flow

TESDA Regional Office IX received the Notice of Cash Allocation (NCA) for operational expenses & scholarship
programs (PESFA, TWSP), GPB –Grassroot Participatory Budget from the Department of Budget and Management

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Regional Office (DBM) and NTA from the Central Office representing funding for Special Allotment Release Order
(SARO) coming from the Central Office.

TESDA Regional Office IX released funding checks to the three provincial offices, Zamboanga del Norte, Zamboanga del
Sur and Zamboanga Sibugay for maintenance and other operating expenses and scholarship programs/projects. The
personal services payments remain at TESDA Regional Office IX.

In 2009, with the transfer of the Regional Office to Pagadian City, Regional bank accounts were transferred to Pagadian
City, and Zamboanga City Operation account was established in Zamboanga City to cater to the needs of Zamboanga
City Operation. However, recording of the Zamboanga City Operation transactions is still done and incorporated in the
Regional Office.

SSP Funds

TESDA Region IX’s Sariling Sikap Program operates under the New Government Accounting System following the
generally accepted accounting principles and applying such specific accounting procedures as necessary in the
circumstances. Utilization and Disbursement of SSP funds are under the direct control of the Regional Director.

With the transfer of the TESDA Regional Office to Pagadian City, it was necessary to create SSP bank account in the
Regional Office in Pagadian City. Collections by the Regional Training Center in Zamboanga City are deposited in the
original bank account maintained in Zamboanga City, while those of the provinces are deposited in the new bank account
in Pagadian City.

Disbursements are made in the Regional Office. All Provincial Offices, training centers and divisions operating SSP
projects submit their disbursement vouchers and the necessary supporting documents for all SSP related transactions to the
TESDA Regional Office IX for payment.

 Books of Accounts (with complete set of books)

The TESDA Regional Office No. IX adopted the accounting policies and guidelines prescribed by the Commission on
Audit under COA Circular No. 2013-002 Dated January 30, 2013 and other COA issuances.

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It has four complete sets of books of accounts consisting of the General Fund, Technical Education and Skills
Development Project (TESDP), Expansion of Dual Education and Training Program (EDETP) and SSP Revolving Fund.

The financial reports of TESDA Regional Office IX, pertain only to the regular operations of the Regional Office and that
of the Zamboanga City Operations but does not include the operations of the three Provincial Offices. The consolidated
financial reports for the entire Region is reflected in a separate corporate report.

The financial reports of the Sariling Sikap Program (SSP) of TESDA Region IX reflect the result of operations and
financial position of the entire regional office and those of the three provincial offices.

 Agency Structure (Head Office/Regional Office/Field/Operating Unit)

TESDA Regional Office No. IX includes Zamboanga City Operation and Regional Training Center. It has three
Provincial Offices namely: a) TESDA, Zamboanga del Sur Provincial Office, b) TESDA Zamboanga del Norte
Provincial Office, and c) TESDA, Zamboanga Sibugay Provincial Office. Likewise, it has two (2) Provincial Training
Centers located at Dao, Pagadian City and Sindangan, Zamboanga del Norte.

 Accounting System (Centralized/Decentralized; manual or computerized)

TESDA Regional Office IX has decentralized (manual) Accounting System.

 Procurement System (Centralized/Decentralized)

The Procurement System of TESDA RO IX is decentralized. The Regional Director has created a Bids and Award Committee
(BAC) and a Technical Working Group for the procurement of goods and services in accordance with RA 9184.

A.2 Audit Authority:

 Composition of Audit Group/Team

Audit Team R9-20 is composed of two (2) COA personnel, namely:

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1. Ms. Milagros L. Aquino – State Auditor IV - Audit Team Leader

2. Ms. Marilyn E. Vista – State Auditor III - Audit Team Member

 COA Office Order creating the Audit Group/Team

Audit Team R9-20 was created in pursuance to COA Office Order No. 2014-320 dated June 20, 2014.

B. Audit Thrust Areas (As indicated in the Cluster Audit Instructions)

 Financial and Compliance
Cash, Receivables, Inventories, PPE, Payables, Expenses (identified as material), Due to BIR, Due to GOCCs,
 Value for Money/Performance Audit
Attainment of employment rate of TESDA Graduate scholars, TWSP, PESFA, GPB
 Other (Mandatory areas)
GAD, Senior Citizens, GSIS premiums, Compliance with tax laws, Suspensions/Disallowances/Charges

 Audit Period:
 Scope

The audit shall be conducted to (a) verify the level of assurance that may be placed on management’s assertions on
the financial statements; (b) recommend agency improvement the efficiency and effectiveness of agency’s operations;
and (c) determine the extent of implementation of prior year’s audit recommendations.

 Period of Audit

The audit shall cover the transactions and operations of TESDA Regional Office No. IX for the period January 1 2014 to
December 31, 2014.

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C. Significant Milestones on technical and administrative matters

Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J

PLANNING
Agency Audit Planning & Risk
Assessment
1. Understand the Agency (UTA) MLA UTA Template
2. Identify & Prioritize Significant MLA Agency Risk Identification
Agency Risks Matrix (AgRIM)
3. Understand and Assess Agency - MEV Agency-Level Controls Checklist
Level Controls (ALCC)
4. Understand the Process MLA Process Risk Control Matrix
(PRCM)
a) Identify Critical Path of the MEV
Processes Walkthrough WPs
b) Identify Process Risks MLA
c) Identify Impact MLA
d) Identify Existing Controls MLA
5. Conduct Audit Risk Assessment and Audit Risk Assessment and
Planning Planning Tool (ARAP)
a) Financial and Compliance MLA/MEV
b) Performance MLA/MEV
c) Determine Audit Scope and MLA
Timing
d) Determine need for specialized MLA
skills

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Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J

DELIVERY

Execution
1. Design Audit Tests MLA Audit Program (AP)
2. Execute Audit Tests
I. Conduct Financial/Compliance Travel Plan
Audit (Annex A)

a. Analysis/substantive audit of MLA

accounts identified in ARAP WPs
Tool & Cluster Audit
Instructions
1. Cash accounts
2. Receivable Accounts
2.1 Advances to Officers
and Employees
2.2 Due from
NGOs/POs/GOCCs/L
GUs & NGAs
2.3 Receivables-
Disallowances &
Charges
3. Inventories

4. PPE
5. Accounts Payable

6. Due to BIR - compliance

with tax laws

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Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J
7. Due to GOCCs

8. Expense Accounts (Identified

as material)

b. Audit of Funds and Activities MEV

for Gender and Development
(pursuant to COA Memo WPs
No. 2009-020 dated May 15,
2009)
c. Audit of Funds and Activities MEV
for Senior Citizens and WPs
Differently-Abled Persons
d. Compliance with GSIS MLA
premium deductions from the
salaries of their officers and
WPs
employees and remittance
thereof in accordance with
R.A. No. 8291.
e. Compliance with Tax Laws MLA
WPs
and Regulations
f. Suspensions, Disallowances, MLA/MEV As the need
arises
Charges (compliance with
Section 6.1 COA Circular WPs
No. 2009-006 dated Sept
ember 15, 2009)
g. Conduct of Cash MLA/MEV  Cash Examination Reports
Examination (GF 74 A)
 Narrative Report
 Reconciliation Statement of
Accountability

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Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J
 Statement of Accountability for
Accountable Forms:
a. With Money Value
b. Without Money Value
 Cut-off Bank Reconciliation
Statement
 Letter of Demand (in case of
shortage)
 Supporting Schedules
II. Conduct Performance Audit on MLA/MEV  AOMs/WPs
the prioritized significant PPAs  Audit Query (AQ)
identified in the ARAP Tool &  Special Report if separately
Cluster Audit Instructions conducted from regular
audit
a) Attainment of employment 
rate of TESDA Graduate
scholars
b) Training for Work & 
Scholarship Program (TWSP)
c) Private Education Student 
Financial Assistance
(PESFA)
d) Grassroots Participatory 
Budgeting (GPB)
3. Evaluate Audit Results MLA Audit Test Summary (ATS)
4. Communicate Audit Results MLA AOM, NS, ND, NC

Conclusion and Reporting

1. Summarize Audit Results

a) Prepare Matrix of Observations MLA Audit Highlight Matrix (AHM)
and Recommendations

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Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J
b) Conduct Exit Conference MLA Notice of Exit Conference
Minutes of meeting
2. Prepare Audit Report MLA AAR; ML; AHM (for agencies
without complete set of books)
a) Submission of 1st Draft
b) Submission of Final ML
3. Perform Overall Audit Review Review Notes
Quality Inspection Tool
 SA/RSA Level
 Cluster Level
 Issue Report with Agency
Action Plan & Status of Transmittal Letter to Mgt with
Implementation (AAPSI) AAPSI
Template
4. Wrap-up and Archive the WPs (electronic and hardcopy)
Engagement
a) Prepare Audit Memo Audit Memo (AM), if necessary
b) Organization of monthly WPs MLA
c) Organization of AOMs files MLA
d) Transmittal of AAR, ML and MLA Duly acknowledged transmittal
AHM letter
5. Follow-Agency Action Plan RSA/ATL Action Plan Monitoring Tool
(APM)

OTHERS:
A. Other Audit Activities
1. Provide comments/opinions RSA/ATL As the need
arises
on proposed drafts of
regulations, queries, referrals
(one of the criteria identified
by the Sector for rating
Cluster’s performance)
2. Action on requests/referrals MLA As the need
arises
by other government

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Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J
agencies and other audit
teams
3. Action on request for relief MLA As the need
arises
from accountability
4. Answer to appeal As the need
arises
5. Money claims, etc. As the need
arises

B. Administrative Matters:
1. Attendance to Specialized Certificates of Training
Trainings/Conferences
a) IRRBA MLA
b) PPSAS & Revised Chart of MLA/MEV
Accounts
c) UACS, PPSSA MLA/MEV
d) Sectoral or Cluster Planning
Conference
e) Others As required
2. Administrative Matters:
Preparation/Submission of required
reports
Monthly
1. Daily Time Record (DTR) and MLA/MEV DTRs /LS
Locator Slips (LS)
2. Monthly Report of Undertimes MEV MRUA
and Absences (MRUA)
3. Status of AAR, ML, RAOR, Status Report N/A
Submission & Transmittal
(starting March to June 30)
Quarterly
1. Quarterly Accomplishment MLA/MEV QAR
Report (QAR)
2. Consolidated QAR Consolidated QAR N/A
3. Quarterly Team Performance MEV QTPR

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Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J
Report (QTPR) (for Audit
Teams)
4. Statement of Audit Suspension, MLA SASDC
Disallowances and Charges
(SASDC)
5. List of Officials and employees MLA List of Officials and Employees
with outstanding Cash Advances with outstanding CAs
(CAs) of P50,000.00 and above
Aged 30 days or Over from Due
Date of Liquidation
6. Individual Quarterly MLA/MEV IQAR
Accomplishment Report
(IQAR)
7. Quarterly Report of Publicized N/A
Government PPAs Report on Government Projects
8. Monitoring of Auditee’s MEV
submission of Budget and BFARs
Financial Accountability
Reports (BFARs) pursuant to
COA-DBM Joint Circular No.
2014-1 dated July 2, 2014
Semestral
9. Report and Analysis of MEV RADC
Disallowances and Charges
(RADC)
10. Performance Appraisal Form MLA PAF
(PAF)
11. Report on Actual MOOE MEV Report on Actual MOOE
provided by agencies provided by agencies
Annual
12. Audit Performance Summary MLA
Reports (APSR)
13. Audit Reports on Official ODA Report NA
Development Assistance (ODA)
Funded Projects

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Target Date to Accomplish

Person CY 2014 CY 2015
Activity WP Ref. Output Remarks
Responsible
J A S O N D J F M A M J
14. Common & Significant Audit MLA
Observations & Report (based on transmitted
Recommendations Pertaining to audit reports)
NGAS for Inclusion in the 2014
Annual Financial Report (AFR)

Notes:
1/ UTA - Understanding the Agency Supervising Auditor - Estrella B. Avila –SA V
2/ AgRI - Agency Risk Identification Audit Team Leader - Milagros L. Aquino -SA IV
3/ ALC - Agency Level Controls Audit Team Members - Marilyn E. Vista –SA III
4/ PRC - Process Risk Control
5/ ARAP Audit Risk Assessment and Planning
6/ SARR Summary of Audit Results and Recommendations

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