STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATIONS

Reasons for Action Taken/

Partial/Delay/ Action
Status of
Audit Observations Audit Recommendations Ref. Non-
Implementation to be Taken
Implementation,
if applicable
The correctness of the
recorded Inventories account a. Require the Supply
is doubtful due to the Officer to prepare and submit
Reconciliation is
unreconciled overstatement of the RSMI to the Accountant for
ongoing.
₱23.41 million or 97.50 the preparation of the JEV to
percent of the total Inventories record issuance.
compared to the Report on the
Physical Count of inventories. Will conduct
complete
b. Require the Accountant physical
and the Property Officer to Voluminous work inventory at the
Partially
reconcile their records. Look and lack of end of this year.
implemented
into the source documents to manpower
determine possible errors and
trace the amounts of
discrepancies and thereafter
make necessary adjustments to Will finish
the affected inventory accounts. reconciling on
Periodic reconciliation should December 31,
be made between the records. 2018.

Page 1 of 22

Audit Observations
The propriety of the
recorded Property Plant and
Equipment (PPE) account of
₱251.24 million, excluding
Land, cannot be ascertained
due to the unresolved
overstatement of ₱73.84
million or 31.4 per cent of
the total PPE, compared to
the balance per Report on
the Physical Count of PPE.
Management was unable to
comply with the adoption of
the higher capitalization
threshold for Property, Plant
and Equipment.
Reasons for Action Taken/
Status of Partial/Delay/ Action
Audit Recommendations Ref.
Implementation Non-Implementation, to be Taken
if applicable
Will conduct
complete physical
Require the Accountant and the
inventory at the end
Property Officer to reconcile and
of this year.
update their records. Look into
the source documents to Recording and
determine possible errors and tracing of assets and
Partially Voluminous work and
trace the amount of discrepancies semi-expendables, as
implemented lack of manpower
and thereafter make necessary well as reconciliation
adjustments to the affected PPE of balances are
accounts. Periodic reconciliation ongoing.
should be made between
Accounting and Property records. Will finish
reconciling on
December 31, 2018.
a. Adopt the new threshold of
₱15,000 in the recognition of
Property, Plant and Equipment.
Data for
Partially Voluminous work and
reclassification are
b. Adjust and reclassify to implemented lack of manpower
being prepared.
expense account the items in the
Property, Plant and Equipment
which did not meet the threshold.
Page 2 of 22
 Reasons for
Action Taken/ Action
Partial/Delay/
Status of Non-
Audit Observations Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
a. Require the Accountant to
immediately demand from the
concerned officers and employees
the settlement of their outstanding
cash advances. The whole amount
of the cash advance must be fully The number of
liquidated. Unutilized cash personnel with
advances should be immediately multiple cash
refunded. Likewise, stop the advances had been
Additional cash advances granting of additional cash reduced.
were granted to officers advance to officers and employees Activities requiring
and employees with with unliquidated or unsettled cash cash advances by the
unliquidated balances and advances and refrain from same personnel
Partially
some were excessive accepting partial liquidation of usually come
implemented
resulting in the cash advances. simultaneous with or
accumulation of b. Stop the granting of immediately after the
unliquidated cash excessive cash advances and direct other.
advances. the project implementers to be
prudent in planning a project or
activity taking into consideration
the proper budgeting. Will issue Formal
c. Strictly enforce the rules Demand Letter.
and regulations on the granting,
utilization and liquidation of cash
advances provided in Section 89
of PD 1445 and COA Circular No.
97-002 dated February 10, 1997.

Page 3 of 22

Audit Observations
Inclusion of non-
moving/dormant
receivables totaling
₱153,227 which remained
outstanding in the books
for 10 to 15 years rendered
the Receivable Account
unreliable.
Funds received from other
Government Agencies
amounting to ₱237,576
were not supported with
valid claimants or
documents on the source
and purpose of the funds.
Reasons for
Action Taken/ Action
Partial/Delay/
Status of Non-
Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
a. Dormant accounts be
reviewed, analyzed and reconciled
together with the other related
accounts in the trial balance to
ascertain the accuracy and validity
of the reported balances.
b. Enforcement of collection of
reconciled and validated accounts. Partially Reviewed the Will submit Request
implemented accounts for Write-off.
c. Request authority from the
Commission on Audit to write off
the dormant accounts duly
supported with List of available
records and the extent of
validation properly documented
pursuant to Section 10 of COA
Circular 97-001.
Require the Accountant to exert The management tried
extra effort in retrieving the its best to retrieve the
Partially Lack of supporting
documents and records pertaining documents and records
implemented documents on file
to the fund so that appropriate pertaining to the
action could be made thereon. funds, but to no avail.
Page 4 of 22

Audit Observations
Payment for Hazard Pay
amounting to ₱304,749
was not supported with
sufficient documents to hazards/risks which the recipients
prove that the claimants
were exposed to danger,
perils to life and physical
hardships.
Reasons for
Action Taken/ Action
Partial/Delay/
Status of Non-
Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
The Medical and
Dental personnel
religiously submit
proofs of their
Require the Agency Head to exposure to health
submit the proofs on specific hazards/ risks to
Fully Accounting Office in
were actually exposed with the implemented their monthly claim
approval of the Secretary of for Hazard Pay.
Health.
A Certification from
Secretary of Health
had likewise been
already submitted.

Require the Management to direct For 2018 Purchase

the personnel assigned in the Orders, the required
Forty-nine Purchase Orders
preparation of POs to completely information had been
(POs) for the procurement
provide the necessary information already filled-up.
of goods aggregating to
prescribed under COA Circular Lack of supporting
₱9.01 million were not
No. 96-010 to come up with clear Partially documents provided
completely filled-up of Will require
and unmistakable terms and implemented on the Purchase
information, especially the suppliers/end-users to
conditions of a contract. Likewise Orders
date of delivery and fill-up and indicate all
require the suppliers/dealers to
specific terms and necessary information
indicate the brand names of the
conditions. upon quotation and
goods quoted in the RFQ
submitted to the agency. purchase request.

Page 5 of 22
 Reasons for
Action Taken/ Action
Partial/Delay/
Status of Non-
Audit Observations Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
Require the Management to
Copies of the
strictly comply with COA Circular
contracts/POs and its
No. 2009-001 dated February 12, Contracts and
supporting documents were
2009 on the submission of contract Purchase Orders as
not submitted to the
and purchase orders and its Fully well as their
Auditor within five days
supporting documents within five implemented supporting documents
from execution thereof for
days after its perfection/execution are being submitted to
review and evaluation of
for the timely review and COA.
the legal and technical
evaluation of the legal and
aspect.
technical aspect of the contract.

The State College was Require the Management to

unable to comply with all strictly adhere to the provisions of Claims are being
the requirements on the RA No. 9184 and its revised IRR processed only if
Fully
hiring of a consultant for in the procurement of consulting supported with
implemented
transparency and was not services and ensure that claims are complete
supported with complete supported with complete documentation.
documentation. documentation.

Granting of 50 per cent

advance payment to Require the Management to stop Granting advance
Fully
Consulting Services was an granting 50 per cent advance payment is no longer
implemented
irregular disbursement of payment for consulting services. practiced.
public funds.

Page 6 of 22
 Reasons for
Action Taken/ Action
Status of Partial/Delay/
Audit Observations Audit Recommendations Ref. Implementatio Non-
to be Taken
n Implementation,
if applicable
The Program of
Works in the previous
Material variances between Purchase Orders were
the Approved Budget of based on the actual
Require the concerned personnel canvass from
the Contract (ABC) and the
in-charge to prepare a realistic suppliers.
Contract Amount were
POW and budget for the Fully
noted on some Purchase
procurement of infrastructure and implemented
Orders/contracts which
goods to avoid possible losses of Program of Works are
indicate bloated amount in
school funds. now thoroughly
the Program of Work and
reviewed to avoid
Budget.
over-estimates.

The projects totaling

Five infrastructure projects The contractor of TEI P58.27 million were
amounting to ₱58.27 a. Require the contractors to Partially Building abandoned already completed
million were not completed expedite the project completion. implemented the project since July (except for one with
within the contract time. 1, 2017 justification) as
follows:

Page 7 of 22

Audit Observations
Five infrastructure projects
amounting to ₱58.27
million were not completed
within the contract time.
Reasons for
Action Taken/ Action
Status of Partial/Delay/
Audit Recommendations Ref. Implementatio Non-
to be Taken
n Implementation,
if applicable
b. Resolve immediately
1. AST Building Phase
problems/issues hampering the
I – completed on time
completion of the project.
c. Institute appropriate
2. Academic Building
sanctions to the erring contractors
Phase I – completed
if necessary. Refer to the General
on time
Conditions of the contract.
3. Construction of
d. Observe economy and
efficiency in the procurement and The contractor of TEI Stage Pavilion –
project implementation. Partially Building abandoned completed with
implemented the project since July liquidated damages
1, 2017
e. Ensure that government 4. Sports and Wellness
properties are properly – completed with
safeguarded. liquidated damages
5. TEI Building – not
completed with
liquidated damages
Page 8 of 22
 Reasons for
Action Taken/ Action
Partial/Delay/
Status of Non-
Audit Observations Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
The DBM does not
issue a certificate of
non-availability of
Purchases of common-use stocks. The DBM,
Require the Management to The APRs and
supplies from various however, authorizes
secure a certificate of non- Delivery Receipts
suppliers were made thru the government
availability of stocks from DBM- Partially corresponding to the
shopping and were not agencies to procure
PS before procuring thru implemented APRs are being
supported with a certificate off-DBM the items
shopping of all common-use considered in lieu of
of non-availability of that were not
supplies. the Certification.
stocks from DBM-PS. included on their
list or were not
available in their
stocks.

Management did not notify

Require the Management to
the public of its on-going The PPDMS has
install signboards for the ongoing
infrastructure projects in placed printed
projects in accordance with the
CY 2017 totaling ₱55.75 signages for all
guidelines set forth in the
million by not posting the Fully ongoing projects as
Circular; and to coordinate with
relevant information at the implemented prescribed by P.D. No.
the Website Administrator and
BISCAST premises, hence, 1096, otherwise
provide the required information
the right of the people to known as the National
for the PPA to be uploaded on the
information on matter of Building Code.
BISCAST website.
public concern was denied.

Page 9 of 22

Audit Observations
BISCAST did not reach the
allotted 286 scholarship
slots for 2017-2018
Expanded Students’
Grants-in Aid Program for
Poverty Alleviation (ESGP-
PA) resulting in unutilized
appropriation of ₱3.63
million, thereby opposing
to the full realization of the
objective of the program of
addressing poverty
alleviation.
Reasons for Action Taken/
Status of Partial/Delay/ Action
Audit Recommendations Ref.
Implementation Non-Implementation, to be Taken
if applicable
Management had no
a. Come up with control on the number of
implementable strategies to scholarship grantees as it
increase the number of student was the Department of
grantees to reach the allotted slots Social Welfare and
of 286 grantees to maximize the Development (DSWD)
use of the appropriated budget in which determines who
the yearly GAA. should be entitled to the
scholarship.
b. Submit quarterly financial
reports and physical
accomplishments of the program
to the DBM copy furnished the
House Committee on
Appropriation, Senate Committee Besides, with the
on Finance, RSG and NSC and implementation of the
post quarterly reports and the list Free Tuition Act, the
student grantees including any ESGP-PA Program will
replacements in the BISCAST only last for about a year
website as required in Item No. or so.
8.4.18 of Joint Circular No. 2014-
1 dated February 3, 2014 and item
No. 24 of Joint Memorandum
Circular No. 01 dated June 23,
2016.
Page 10 of 22
 Reasons for Action Taken/
Partial/Delay/ Action
Status of Non-
Audit Observations Audit Recommendations Ref.
Implementation Implementation, to be Taken
if applicable
Require the Management to ensure
timely and maximum utilization of
The State College was
budgeted funds and execution of the
unable to maximize the
targeted programs, projects and
utilization of their Special
activities to upgrade and improve
Trust Fund (STF) budget in
facilities for the benefit of the
CY 2017 of which only The management
stakeholders and address all
46.28 per cent or ₱31.47 is trying to
impediments in the implementation Partially
million was obligated out of maximize
of the previous programs/projects/ implemented
the total STF budget of utilization of the
activities; utilize efficiently the
₱68.01 million, thus STF Budget.
Fiduciary Funds for their targeted
expected benefits from
programs/projects/ activities to
improved physical facilities
provide utmost benefits to the
and activities for student
students instead of having it
were not fully attained.
accumulated in the bank of the State
College.
Remittances of taxes a. Conduct a detailed review on
withheld from the transactions affecting taxes
compensation of employees withheld and remitted to the BIR to
Will verify the
and from payment to ascertain the correctness of the
details of the
contractors/ suppliers were balance.
Partially subject
not reconciled with the
b. Facilitate the immediate implemented remittances and
actual withheld amounts
remittance to the BIR of any will reconcile as
resulting in net
unremitted taxes to reduce if not necessary.
unreconciled/unremitted
avoid penalties that maybe imposed
amount of ₱292,209.80 as
by the said agency.
of December 31, 2017.

Page 11 of 22

Audit Observations
Unresolved difference of
₱79.03 million or 34.16 per
cent of the amount of
Property, Plant and
Equipment account between
the balance in the books and
the Report on the Physical
Count of Property, Plant and
Equipment
Inclusion of unaccounted
prior years’ Inventories
account balances totaling
₱11.02 million rendered its
current year-end balance
doubtful.
Reasons for
Status of Action Taken/ Action
Partial/Delay/
Audit Recommendations Ref. Implementat Non-Implementation, to be Taken
ion
if applicable
Immediately require the
The amount was
Accountant and the Property
already reduced from
Officer to collaborate closely
the previous 97.50.
in reconciling the ₱79.03
million discrepancy between
AAR
the physical count and Partially Voluminous work and
2016
recorded accountabilities implemented lack of manpower The management is still
Page 22
maintained by them. working to further
Institute appropriate reduce the difference
measures to reconcile the until fully reconciled.
noted discrepancy despite
lack of workforce.
The Accounting Office
and the Supply Office
Enjoin the heads of the
are employing
Accounting Unit and Supply
measures to ascertain
Unit to conduct the complete
these unaccounted
physical inventory taking of
AAR inventory balances.
all Inventory items, update Partially Voluminous work and
2016
their records and verify and implemented lack of manpower Will conduct complete
Page 24
adjust the noted physical inventory at
discrepancies between the the end of this year.
result thereof and their
records. Will finish reconciling
on December 31, 2018.
Page 12 of 22

Audit Observations
Subsidiary Ledgers are not
maintained to support the
General Ledger balances of
various accounts with an
aggregate amount of ₱25.02
million.
Private legal counsel was
hired without prior written
conformity and acquiescence
of the Office of the Solicitor
General and written
concurrence of the
Commission on Audit.
Audit Recommendations
Require the Accountant to
exert extra effort and come
up with a mechanism to
maintain and update the
Subsidiary Ledgers reflecting
the details or breakdown of
the balances from the
General Ledger.
Require the Management to
secure a written conformity
and acquiescence of the
Solicitor General and the
written concurrence of the
Commission on Audit prior
to hiring of private legal
counsel. Likewise, require
the private legal counsel to
refund the amount of
₱45,000.
Reasons for
Action Taken/ Action
Partial/Delay/
Status of
Ref. Non-
Implementation to be Taken
Implementation,
if applicable
Subsidiary Ledgers are
maintained for major
Inability to maintain accounts.
AAR Subsidiary Ledgers
Partially
2016 for every general
implemented The Other Payables are
Page 24 account is due to
under review to ascertain
personnel deficiency.
details for Subsidiary
Ledger.
There is already a
conformity issued by the
Office of the Solicitor
General (OSG) for
renewal of deputization
of the retainer legal
AAR consultant valid until
Fully
2016 November 30, 2018.
implemented
Page 25
Request for concurrence
of the Commission on
Audit (COA) was
submitted on February
15, 2018, but there is no
action as to date.
Page 13 of 22
 Reasons for
Action Taken/ Action
Partial/Delay/
Status of Non-
Audit Observations Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
Require the Head of the
Physical Plant Development
Copies of Variation Orders The PPDMS has already
and Maintenance Services to
and Contract Time AAR submitted advance copies
strictly comply with the
Extensions for infrastructure 2016 Fully implemented of Variation Orders and
prompt submission of
projects were not submitted Page 26 Contract Time
advance copies of Variation
to the Office of the Auditor. Extensions to COA.
Orders and Contract Time
Extensions.
The Program of Works in
Require the Head of the the previous Purchase
Construction Section, Orders were based on the
Material variances between actual canvass from
Physical Plant Development
the Approved Budget for AAR suppliers.
and Management Services
Contract (ABC) and the 2016 Fully implemented
(PPDMS) to prepare realistic
Contract Amount on some Page 27
POWs in accordance with
infrastructure contracts. Program of Works are
Section 3(b), (d) and (g),
Annex A, IRR, of R.A. 9184. now thoroughly reviewed
to avoid over-estimates.

Require the Management to AAR Has verified the amount

Unsettled audit
effect the collection of the 2016 Partially and will collect the
disallowances amounting to
foregoing disallowances Page 28 implemented unsettled audit
₱78,482.
from the persons liable. disallowances.

Page 14 of 22

Audit Observations
The Gender and
Development budget
appropriated in CY 2016 fell
short of the five per cent of
the total allotment
requirement.
The variance between the
book and bank balances
amounting to ₱4,820,132.16
was not reconciled due to the
failure of the Accounting
Office to prepare the Bank
Reconciliation Statements
(BRS), hence the
accuracy/correctness of the
year-end balance of the Cash
in Bank–Local Currency,
Current Account totaling
₱79,993,285.70, was not
ascertained.
Dormant Cash in Bank –
Local Currency, Current
Account amounting to
₱616,979.31 was not yet
reverted to the Bureau of
Treasury.
Reasons for
Action Taken/ Action
Partial/Delay/
Status of Non-
Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
Require the Management to Will further review the
appropriate at least five Agency implementation
AAR
percent of the total budget Partially of the prescribed
2016
appropriations required for implemented appropriation and ensure
Page 29
Gender and Development compliance with the
programs. same.
Require the Accountant to
promptly prepare the monthly
The Accounting Office is
Bank Reconciliation
AAR trying its best to prepare
Statement in order to clear Partially
2015 Bank Reconciliation
immediately all reconciling implemented
Page 21 Statement the soonest
items and present the correct
possible and practicable.
balance of the account in the
books of the Agency.
Require the Management to
revert the abovementioned
dormant bank deposits to the
AAR Will verify the details of
Bureau of Treasury in Partially
2015 the amount and revert as
compliance with the provision implemented
Page 22 may be necessary.
of EO 431, following the
procedures enumerated under
COA Circular No. 2015-001.
Page 15 of 22

Audit Observations
Additional cash advances
were granted to officers and
employees despite the
presence of unliquidated
balances from previous cash
advances, thus misstating the
affected accounts in the
financial statements.
Receivable accounts under
the Student Financial
Assistance Program
(STUFAP) in the aggregate
amount of ₱294,425.00 were
not collected within the
specified repayment period.
Reasons for Action Taken/
Status of Partial/Delay/ Action
Audit Recommendations Ref. Non-Implementation, to be Taken
Implementation
if applicable
Require the Management to The number of
strictly comply with the personnel with
requirements of Section 89 of multiple cash
PD No. 1445, Section 16 of advances had been
EO No. 248 and COA Activities requiring reduced.
Circular No. 97-002 on cash advances by the
AAR
granting cash advances. All Partially same personnel usually
2015
employees/officers should implemented come simultaneous
Page 23
settle their advances with or immediately
Will issue Formal
immediately and management after the other.
Demand Letter.
should refrain from granting
additional cash advance
unless the previous cash
advance had been liquidated.
a. Intensify collection of
The Student
due and demandable STUFAP
Development
loan receivables by issuance
Services Office and
of demand letters to student
the Accounting
borrower.
AAR Office are
b. Set up an effective Partially
2015 collaborating to do
monitoring system to keep implemented
Page 25 collection efforts
track of the whereabouts of
amidst voluminous
the student grantees who have
workload which is
already graduated or gainfully
almost beyond
employed, to facilitate the
physical capability.
collection of repayments.
Page 16 of 22

Audit Observations
Various inventory accounts
balance aggregating to
₱3,039,955.83 was
overstated by ₱2,290,682.44,
due to non-recording of
issuances to end-users as
expense, resulting in
understatement of expenses
and overstatement of income
and consequently
overstatement of the
Government Equity Account.
Copies of contracts
executed/entered into by
BISCAST were not
furnished to the Auditor
within five working days
from its execution.
Reasons for Action Taken/
Status of Partial/Delay/ Action
Audit Recommendations Ref. Non-Implementation, to be Taken
Implementation
if applicable
Require the Accountant to
effect the adjustment of The Supply Office is
records and the Supply doing
Officer to immediately AAR workback/review of
Partially
forward all RSMIs for the 2015 all issuances which
implemented
preparation of Journal Entry Page 27 were not previously
Voucher and recording in the covered with Issue
General Ledger by the Slips.
Accounting Unit.
The management is
Require the Management to
already furnishing the
comply with the above cited
AAR COA Auditor with
provision, by furnishing the Fully
2015 copies of the
COA with the copy of implemented
Page 30 contracts
approved contract within five
executed/entered into
days upon perfection thereof.
by the Agency.
Page 17 of 22

Audit Observations
Use of government vehicles
and gasoline expenses of
BISCAST was not duly
supported with the Monthly
Report of Official Travels
(MROT), and Monthly
Report of Fuel Consumption
(MRFC), thus precluded both
the Management and Auditor
to effectively regulate and
control the utilization of
motor vehicles and
consumption of fuel.
Audit disallowances
amounting to ₱260,375.14,
became final and executory
due to failure of the persons
liable to avail of the remedy
provided under the 2009
Revised Rules of Procedure
of the Commission on Audit
(RRPC).
Reasons for Action Taken/
Status of Partial/Delay/ Action
Audit Recommendations Ref. Non-Implementation, to be Taken
Implementation
if applicable
The Supply Office
has long been
preparing and
Require the Management to submitting to the
strictly comply with the Accounting Office
requirements of COA Circular monthly Gasoline
No.77-61 and Section 361 of Consumption Reports
the GAAM Volume I, AAR to monitor the agency
Partially
particularly on the preparation 2015 consumption of fuel.
implemented
and submission of Monthly Page 31
The VPAA has been
Report of Official Travel and
preparing reports on
the corresponding Monthly
the Driver’s Trip
Report of Fuel Consumption
Tickets to monitor
at the end of each month.
utilization of school
vehicles. Will prepare
and submit said
reports monthly.
Require the Management to Has verified the
AAR
effect collection of the Partially amount and will
2015
foregoing disallowances from implemented collect the unsettled
Page 32
the respective persons liable. audit disallowances.
Page 18 of 22
 Reasons for Action Taken/
Status of Partial/Delay/ Action
Audit Observations Audit Recommendations Ref. Non-Implementation, to be Taken
Implementation
if applicable
Will conduct
complete physical
inventory at the end
of this year.
The reported balance of Recording and
specific Property Plant and tracing of assets and
Equipment (PPE) accounts semi-expendables, as
costing ₱160,659,320.25 was well as reconciliation
not reconciled against of balances are
physical inventory and ongoing.
Require the Property Officer
validated acquisitions
and the Accounting Unit to
totaling ₱120,568,667.91, AAR
reconcile the discrepancy Partially Voluminous work and
thereby showing a difference 2014
between the amounts of implemented lack of manpower
of ₱40,090,652.34, contrary Page 18
physical inventory with the
to Section 66, Volume II of
accounting records.
Manual on the NGAS for
National Government Will finish
Agencies, thus, casting doubt reconciling on
on the reliability and December 31, 2018.
correctness of the financial
statements.

Page 19 of 22
 Reasons for Action Taken/
Partial/Delay/ Action
Status of Non-
Audit Observations Audit Recommendations Ref.
Implementation to be Taken
Implementation,
if applicable
The accuracy, validity and Require the Accountant to Subsidiary
existence of the general ledger maintain and update the Ledgers are
balances of various current assets Subsidiary Ledgers maintained for
Inability to maintain
and liabilities as of December 31, reflecting the details or major accounts.
Subsidiary Ledgers
2014, amounting to ₱5,059,744.03 breakdown of the balances AAR
Partially for every general
and ₱11,374,572.91, respectively, from the general ledger to 2014 The Other
implemented account is due to
could not be ascertained due to the support the corresponding Page 21 Payables are under
personnel
non-maintenance of subsidiary controlling accounts so that review to ascertain
deficiency.
ledgers by the Accountant contrary the accuracy of the balances details for
to Section 12 of Manual on NGAS, in the financial statements Subsidiary Ledger.
Volume II can be properly ascertained.
The inadequate controls and/or
procedures over inventory
management system such as the
absence of a) inventory physical
count, b) complete and updated
a. Require the Supply
ledger and stock cards and c) The Accounting
Officer to maintain updated
reconciliation of the accounting and Office and the
Stock Cards for each type of AAR Voluminous work
inventory custodian’s records, Partially Supply Office are
inventory item which 2013 and lack of
contrary to Sec. 490 of GAAM implemented maintaining Stock
should always reconcile Page 22 manpower
Volume I and Sec. 43 of the Cards and Supplies
with Supplies Ledger Cards
Manual on NGAS for NGAs, Ledger Cards.
of the Accounting Unit.
Volume I, cast doubt on the
reliability and accuracy of the
balance of Inventory account
recorded at ₱7,366,484.49 as of
December 31, 2013.

Page 20 of 22
 Reasons for Action Taken/
Partial/Delay/ Action
Audit Status of
Audit Observations Ref. Non-
Recommendations Implementation to be Taken
Implementation,
if applicable

The inadequate controls and/or

procedures over inventory
management system such as the
absence of a) inventory physical
b. Ensure that
count, b) complete and updated
reconciliation of
ledger and stock cards and c)
balances of Stock
reconciliation of the accounting and Will update the
Cards and Ledgers are AAR Voluminous work
inventory custodian’s records, Partially cards and come up
made for fair 2013 and lack of
contrary to Sec. 490 of GAAM implemented with reconciled
presentation of Page 22 manpower
Volume I and Sec. 43 of the balances.
account balances in
Manual on NGAS for NGAs,
the financial
Volume I, cast doubt on the
statements.
reliability and accuracy of the
balance of Inventory account
recorded at ₱7,366,484.49 as of
December 31, 2013.

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 Reasons for Action Taken/
Status of Partial/Delay/ Action
Audit Observations Audit Recommendations Ref. Implementati Non-
to be Taken
on Implementation,
if applicable
a. Considering the materiality value of
The Accounting Unit and
the Property, Plant & Equipment (net of The Accounting
the Property Office failed
accumulated depreciation) amounting to Office and the
to maintain updated PPE
₱118,429,155.53 which was 64% of the Voluminous Supply Office are
Ledger Cards and Property
total assets of the College, the Management work and lack of maintaining
Cards and to conduct the
should immediately require the Property manpower Property Cards
reconciliation of the book
Officer and the Accounting Unit to update and PPE Ledger
balances with the result of
the Property Cards and the Property, Plant AAR Cards.
physical inventory taking
and Equipment Ledger Cards, respectively. 2013
of the College’s properties,
b. Update the Report on the Physical Page 27 Partially
contrary to Sections 12 and
Count of Property, Plant and Equipment implemented
42 of the Manual on the
(RPCPPE) to reflect the acquisitions and
NGAS for NGAs, Volume
disposals from April to December 31, 2013
II, thus the correctness and
and reconcile both the PC and PPELC
reliability of the balances
balances with the General Ledger balances
of PPE accounts
and the RPCPPE.
aggregating to
c. Any discrepancy/ies should be Will update the
₱118,429,155.53 (net of
promptly investigated and cleared/adjusted cards and come up
accumulated depreciation)
to present the correct balances of PPE with reconciled
were doubtful.
accounts. balances.

NUNI A. CANTILLO
State Auditor IV
Audit Team Leader

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