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Department of Accountancy and Business Management

College of Business Administration and Accountancy


Mindanao State University at Naawan
9023 Naawan, Misamis Oriental

A Narrative Report in
On The-Job Training at
Commission on Audit Department of Public Works & Highways
1st District Engineering Office
Engineers Hill, Bulua, Cagayan de Oro City

In Partial Fulfillment of the Course Requirement


Of Bachelor of Science in Accountancy

Presented to

OJT Coordinator

Presented by

August 01, 2016

INTRODUCTION

Internship or on the job training is one way by which we students are given an
opportunity to apply the theories and computations that we have learned from
school. It also helps us to obtain applicable knowledge and skills by performing in
actual work setting. Colleges and universities require their students to undergo
such training within a specific number of hours as part of the curriculum
For us students, an OJT or internship program provides opportunities to go
through the actual methodologies of a specific job using the real tools,
equipment, and documents. In effect, the work place becomes a development
venue for us student trainee to learn more about our chosen field and practice
what we have learn from academy. It also helps the students to acquire relevant
knowledge and skills by performing in actual work setting. It helps in the building
up of the trainees competence. OJT also enhances the critical thinking abilities
and discipline of the student conducting his training in a company. His ability to
make sound decisions and evaluate pertinent factors will be improved. Having a
proper On-the-Job Training helps in the preparation of future professionals for
their future jobs. What the students learned in their On-the-Job Training, even the
little things, can be applied when they are already working. It also gives the
trainee the chance to immerse himself in his chosen field and experience and
learn the skills necessary to the industry he is interested in. Working with
experienced staff, one will be able to observe how the job is done properly. Aside
from work experience, On-the-Job Training allows the trainee to get acquainted
with the real professionals and to meet people having different positions in the
company, either high or low. The trainee On The-Job Training requires effort and
seriousness. A trainee should take the OJT seriously as it can be a powerful tool
for a person in preparing for the next chapter of life as a professional. It can
possibly be a source of recommendation when they take that big lift from being

students to career professionals someday will be able to know how to adjust to


other peoples personalities and attitudes.

COMPANY BACKGROUND

Commission on Audit Logo

DPWH Logo

Commission on Audit
Is an independent constitutional commission established by the Constitution of the
Philippines. It has the primary function to examine, audit and settle all accounts and
expenditures of the funds and properties of the Philippine government.

HISTORY

State audit in the Philippines has evolved from the ways of its ancient
communities. The incipient village societies, known as barangays, were
headed by chieftains called datus who exercise full power on the lives of
people and the administration of their simple government. This included
the communal allocation and distribution of resources to his subjects.
Under the Spanish colonial rule in the Philippines, the Royal Audiencia, a
high court of justice rendered audit report to the authorities on the financial
condition of the islands. Later, the Tribunal de Cuentas (Court of Accounts)
became the supreme audit institution with exclusive jurisdiction over all
financial matters.
The revolution against Spain led to the establishment of the Philippine
Malolos Congress. Aside from legislative functions, it also examined and
approved the expenses and revenue accounts of the revolutionary
government.
Came the American rule and the Office of the Auditor for the insular
Philippine was created. The audit system featured review of every
transaction, treating of entries through the books of account, and checking
of mathematical accuracy of accounts. It was first and foremost a practice
of pre-audit.
In 1935, the General Auditing Office (GAO), headed by an Auditor General
functioned with authority emanating from the Constitution. It was
responsible in the examination, audit and settlement of all accounts, as
well as the audit of all fund expenditures and properties of the
government.
During World War II the audit functions minimally continued.
The General Auditing Office was reestablished after the war and became
the present Commission on Audit (COA) under the 1973 Constitution. This
time the Auditor General was replaced by a collegial leadership of the
Chairman and two Commissioners.
The EDSA Revolution ushered in a new Constitution that expanded the
mandate of the Commission to audit towards a heightened accountability
in the performance of government functions.

Today COA stands firm and visible as a genuine partner in the governance
of nation-building and the development of quality life for the Filipinos.
With the reinstitution of selective pre-audit of government transactions as
per COA Circular No. 2009-002, COA will play a vital role in the prevention
of irregular, illegal, unnecessary, wasteful and anomalous transactions in
the public sector.

MISSION AND VISION


MISSION
As the countrys Supreme Audit Institution,
The Commission on Audit is vested by the Constitution with:
The power and duty to audit and settle accounts
Pertaining to revenues and receipts,
As well as expenditures or uses of funds and property
Owned or held in trust by the Government;
Exclusive authority to prescribe
Government accounting and auditing rules and regulations;
Responsibility to recommend measures necessary to improve
The efficiency and effectiveness of government operations.

VISION
Promotion

of

good

governance

with

the

attributes

of

honesty,

transparency,
Accountability, credibility, efficiency and effectiveness
To enhance trust in the government and
Foster a better quality of life for the Filipino people.

CORE VALUES
God Centeredness
We believe that the authority we exercise as auditors is God entrusted
and, therefore, our highest accountability is to Him.
Patriotism
We commit to serve the interest of the Filipino people and the country
which shall have priority over all other considerations.
Excellence
We pursue world-class audit services availing of state-of-the-art
technology in conformity with international standards and best practices.
Integrity
We discharge our mandate in adherence to moral and ethical principles
and the highest degree of honesty, independence, objectivity and
professionalism.
Professionalism
We believe in the continuous enhancement of the skills, competence and
expertise of our personnel and in the basic right of every member of the
organization to self-development and well-being.
Courtesy, Modesty and Humility
We uphold and practice courtesy, modesty and humility at all times, and
acknowledges that we do not have a monopoly of technical expertise.
Respect for Authority and the Rule of Law
We pledge to remain steadfast in our sworn duty to uphold COA's ideals
out of respect for authority and the rule of law.

PERSONAL EXPERIENCES AND LEARNINGS


I have taken my (OJT) On The-Job Training this academic year 2016 at
Department of Public Works and Highways Region X in the Commission on
Audit Office. June 08, 2016, first day as an OJT trainee. I am one of the eight
who apply and choose to render 250 working hours in the government
agency. In the same date, early in the morning we came to gather in the
Commission on Audit located at Carmen for morning orientation and be
familiar to our respective workplace, and

what we have expected didnt

happened that we all eight be working in the same place. First, the human
resource manager orients us the office etiquette, how should we behave in
our respective workplace or else memorandum of agreement between the
organization and school will took effect. With the purpose of applying
accounting in our work, the Regional Director at COA main consents HR
Manager to deploy us in the government agency to have an accounting
related work. We all eight were divided, two students per agency. The HR
manager came to a decision to deploy us in DPWH-COA Office.
At first, we are not familiar of the place of DPWH we have to walk from the
distant entrance going to COA office; eventually weve found a short cut way
for us not to be late. There we met our supervisor Maam Lovella A. Magto,
Audit team leader of Cluster 7 Public Works, Transport and Energy. She
whole-heartedly welcomes us and immediately introduced to her audit
members and staffs in the office. As I observed in the office there are a lot
bundles filled for audit from the previous year transactions. In the succeeding
day, we have our work to be done, we do pre audit on collections and
deposits for the month of January, February and March on bidding
documents, laboratory fee for the materials being tested for its quality, and
conference fee. We have to look for the pertaining supporting documents
needed, and if theres an omission in the supporting documents attached

thereon it should be noted. We carefully review each transaction if it is being


collected correctly, the input of amount in words, date, signature of the
accountant and high positioned personnel needed for validation of transaction
and if it is deposited with the same amount as collected, afterwards, we input
our findings in the working paper, a lot of bundle of paper documents to work
on. There are times we encounter that the amount that was deposited does
not equal to the amount collected, it may have a difference below 10 pesos
but it will accumulate that will result to unbalance reconciliation paper of both
the bank and the account deposited by the government agency. We do this
work repeatedly for two weeks.
In the third week of June, since our supervisor were having a seminar and at
the same time waiting for the computer to be in good condition, we are given
a financial statements of the first quarter for the year 2016 from its different
funds to analyze, to see if it is computed correctly and how should it be done.
However, we found out that theres an omission in the amount that were being
input but for the overall total it is balance. In unusual case it will be counted as
a forced balanced. There I learned, there must be an extra careful in making
financial statements, and possibly less typo error, because the result would
not be reliable if thats the case.
For the month of July we do post audit on bundles of billings, attached
thereon are documents of various contractors having different road projects to
different places within Region X claiming for payment of specific work
accomplished. More than 20 paper documents needed and be signed by the
engineers as well as the accountant to claim for the contracted amount. There
applies taxation, how to apply the formula in computing withholding taxes,
and VAT to those contractors having contract with the government. For every
progress billing, the gross amount would be net by retention, recoupment,
withholding taxes, and VAT with percentage rate of 10%, 15%, 2%, 5%,
respectively.

Based on the contract price of the project 15% is allocated for security bond
callable on demand to ensure the repair of any defects attributable to the
faulty construction or non-compliance with the specification stipulated in the
contract. In the same month we also do post audit on Retention for every
project contract , per diems on travel made by the personnel for business
purposes and seminars, cash advances made the employees, fuel of the
service vehicle used by personnel for business trip, Right of Road for those
houses,

infrastructures

affected

by

flood

control

projects,

Refund,

Remittances (multi-purpose coop, GSIS, Phil Health, BIR), Reimbursement,


Services, Bidding, and the Publication of road projects in the national
newspaper and etc..,. For every transaction supporting documents must be in
accordance with the requirements as stated in the revised documentary for
common government transactions. And for the last two weeks left, we
encoded all our output in the computer from the first week of june up to 2 nd
week of july of bundles weve already audited, placing the exact every
transaction account in the format provided for the submission of results to our
auditor head.
After having this job be done Ive learned a lot more on accounting terms,
formulas, theories , and computation on the book were applied, how would I
realized that work would be simpler than the problems Ive been solving on
the book. It gives me clarification to things I fail to understand in some of the
topics in accounting, and to understand it fully is to have an actual practice. I
have so much fun doing auditing job, auditing would be an interesting field to
work on. It is created to ensure that funds of the government have been
properly used to allocated projects for public purposes for it is funded billions
of money. I have now the idea how would construction of roads undergo, I
can now relate to tarpaulin posted in every newly constructed roads. Working
with just more than a month gives me a little glimpse of real field work.

The training I had in the Commission on Audit is learning many experiences


each day. I was exposed in the actual work in COA, became familiar with the
documents prepared by the auditors there and learned how to use equipment
that are usually used in the office. Aside from those things, I also learned to
be more sociable and to adjust myself in the environment where I am working
at and who I am working with. As I was working as a trainee at Commission
on Audit, I learned to become a hard-working person. The time to finish the
task assigned to me is important, but it is also important that I should do it
correctly. I learned to appreciate even the simplest lessons studied in school.
I was able to realize the importance of theories and formulas that were
discussed in the school. Also, to understand that everything that was taught in
the school can be a tool that can be used in my future career, because during
my On-the-Job Training, the terms that I have learned from school were used
in the company where I was conducting my training. Here, I also learned to
follow the instructions and to accept or admit my failure and should learn from
it.
After the training, I realized that on-the-job training is not just a requirement
to be completed but it is an opportunity to show what skills, knowledge, and
talents that I have and also an opportunity to experience the feeling of being a
professional already. Aside from the experiences that I had relating to my
course, this On-the-Job Training allowed me to get acquainted with the
employees of Commission on Audit. Being with them is a pleasure because I
was working with the auditors. I really had a very meaningful and memorable
On-the-job Training at Commission on Audit. Though I already finished
working there as a trainee, I am looking forward to working with them, not as
a trainee anymore, but as an auditor, someday. I was encouraged to do more
efforts in my studies. Since I was given some ideas about the work of an
auditor in the company where I conducted my training. Despite the short

period of my training, it was still a very meaningful one. The training enriched
my confidence created a foundation of being a good employee someday.
I will be missing our daily routine at work, and as well as my co-workmates
they treated us as their normal co-workmates, we eat lunch together, made
surprises for a birthday celebrant, and watch movie after work. And lastly, Ive
learned that work is going to fill a large part of my life and I must choose the
job that I must love doing so that I will never have to work a day of my life.

CONCLUSION AND RECOMMENDATION

This On-The- Job Training served as my stepping stone to pursue my dream


to be a Certified Public Accountant someday. It caused a very huge effect to
me as a Bachelor of Science in Accountancy Student. I was really renewed. I
learned to be diplomatic in both action and words. As a student, what I can do
for now is to learn whatever I can in school, be inspired, love the path I am
taking, and do my best in everything I do, with a positive outlook in mind. I
realized that I should be more focused in school and do everything heartily
and with all that I can .It inspired me to be more determined and competitive
in everything that I do in my daily life as a student today and as a professional
someday. My On-the-Job Training is very helpful and will be very helpful to

me as I continue to take my journey as a fifth year student in the field of


Accountancy. It really gave me a taste of the real world a glimpse of what
lies ahead after I graduate. It is highly recommendable to have an internship
at COA as training ground for those accounting students for they trained
trainees as the usual work theyre been doing and it gives the idea of what
field youd like be going to after you graduate. they let trainees handle work
as trainee is capable of doing and supervisors are confident enough that
accounting students can quickly cope up with the instructions and there be
no a of lot supervision given for accounting terms have been learned in
school already.

TABLE OF CONTENTS

I.
II.
III.
IV.

V.
VI.
VII.

Title Page
Table of Contents
Introduction
Company Background
A.) COA History
B.) COA Mission and Vision
C.) COA Core Values
D.) Organizational Structure
E.) Product and Services
Personal Experiences and Learning
Conclusion and Recommendation
Documentation
A.) Daily Time Record (DTR)
B.) Waiver
C.) Pictures
D.) Memorandum of Agreement
E.) Certificate of Completion

PRODUCT AND SERVICES


PRODUCTS
Development of financial information systems that will serve the
needs of Government executives, managers and decision makers.
Publication and other means of information dissemination to the
public of the Performance, financial operations, results of audit of
national, corporate and local government, and the actions taken on
complaints.
Promotion of value-added audit services for improved agency fiscal
Responsibility and Accountability.
COA KEY SERVICES
Audit Services
The Commission is the countrys Supreme Audit Institution (SAI),
mandated by the Constitution to audit government agencies/entities. The
audit consists of several types and is performed by various offices in the
Commission.
1. Regular Audits
An Audit Team composed of Audit Team Leader and Team Members is
assigned to audit specific government agency/entity. This Team is under
the direct and immediate supervision of a Supervising Auditor who heads
an audit group composed of more than one audit team.
The Audit Team conducts the following audits:
a. Financial and Compliance Audits - to determine (a) whether their
financial operations are properly conducted, (b) whether their financial
reports are fairly presented, and (c) whether they have complied with
applicable laws, regulations, policies and procedures in handling

operations. The primary objective of these audits is to express an opinion


on the fairness with which the financial condition and results of operations
are presented.
b. Performance Audit- concerned with the review of management
efficiency with the end in view of eliminating waste and promoting efficient
use of public funds and resources and the ascertainment of the agencys
effectiveness by determining whether desired results have been achieved
and programs have accomplished their purposes and objectives.
2. Special Audits
The Special Audits Office (SAO) of the Special Services Sector (SSS) is
tasked to conduct performance audits which is concerned with the review of
management efficiency with the end in view of eliminating waste and
promoting efficient use of public funds and resources and the ascertainment
of the agencys effectiveness by determining whether desired results have
been achieved and programs have accomplished their purposes and
objectives.
The SAO uses three approaches in the conduct of VFM audits:
a. Agency-based approach - An audit of a particular program, project or
activity of a selected agency.
b. Government-wide audit is the simultaneous examination of a management
function or activity in a number of government agencies which is expected to
provide
basic data for comparing practices and operations between and among
government agencies in the same sector or with the whole government;
collated data of practices in various government agencies that could
show the magnitude or insignificance of deficiencies in the system;
audit criteria which are supported by best practices;
awareness on the part of auditors and the auditees of how their agency
compares with other government agencies in terms of objectives,
functions, operations, internal and administrative controls, and output;
and
opportunities to the audited agency for benchmarking with other
government agencies.
c. Sectoral Audit refers to an audit of programs or activities that are
delivered by more than one government agency and is expected to
provide:
an overall picture of how various segments of a program are
implemented and possibly lead to the identification of areas where
improvements can be introduced;
audit criteria or benchmark for future audits of government programs by
various government agencies;
basis for auditors to realize that program difficulties may not lie with a

single agency but possibly with the way the agencies involved in the
program work together;
an arena for airing program difficulties by audited agencies; and
opportunity for making changes in the program, if necessary.
The SAO is also tasked to conduct other special audits, as follows:
a. Rate Audit pertains to the examination and audit of the books, records
and accounts of public utilities in connection with the fixing of rates of every
nature.
b. Levy Audit pertains to the audit of non-government entities required to
pay levies or government share.
c. Subsidy Audit pertains to the audit of non-government entities subsidized
by the government or government authority.
3. Fraud audits
The Fraud Audit Office (FAO) of the Special Services Sector conducts audits
of government agencies with probable fraudulent transactions to safeguard
government assets against abuse and fraud and to respond to the increasing
public demand for fidelity in the use of government funds and properly.
Legal and Adjudication Services
The Commission renders legal and adjudication services on matters
pertaining to the following:
1. Appeal on audit disallowances (Disapproval in the audit of
transactions/disbursements); and on audit charges (inclusion or addition to an
accountability pertaining to the assessment, appraisal or collection of
revenues, receipts and other incomes such as those arising from underappraisal, underassessment or under-collection);
2. Money claim (a demand for payment of a sum of money, reimbursement or
compensation arising from law, or contract due from or owing to a
government agency) due from or owing to any government agency);
3. Request for relief from accountability for losses due to acts of man, i.e.
theft, robbery, arson, etc.;
4. Request for approval for negotiated sale of property pursuant to Section
380 of the Local Government Code;
5. Request for concurrence in the hiring of legal retainers by government
agency; and
6. Request for legal opinion relative to government transaction involving
disbursement of public funds or issues within the jurisdiction of the
Commission.
Technical Services
The Commission is manned by technical personnel such as civil engineers,
mechanical engineers, electrical engineers, IT specialists, etc.to provide
technical assistance to auditors in the determination of the reasonableness of

prices of goods, consulting services and infrastructure projects, and on


matters pertaining to other technical evaluation, including the conduct of fraud
audit. They likewise assist in the settlement/adjudication activities requiring
technical expertise.
Training Services
The Commission thru its Professional Development Sector conduct training
programsfor personnel of other government agencies, as well as undertake
the sale of COA-issued booksand manuals to the other government agencies.
Other Services
The Commission also provides copies of audit reports and certified copies of
documents in the custody of the Audit Teams and Clusters/Regional Offices,
and in other offices of the Commission, upon request of any government
agency, or any concerned citizen