ACCOUNTING DEPARTMENT

FOR : COA
THRU : SSS
FROM : ACCOUNTING DEPARTMENT
RE : SPOT AUDIT ON GOVERNOR HILLS & THE GENTRI HEIGHTS
HOUSING UNITS
DATE : MARCH 17, 2016

AUDIT REPORT
AUDIT OBJECTIVE:
1.) To check adherence of the contractors to the units’ contract completion date.
2.) To verify the accomplishment billed by the contractors by comparing it to actual status of
the unit.
3.) To assess the working condition and orderliness of the ongoing house constructions.
AUDIT PROCEDURE:
1.) Actual Inspection
2.) Discussion
AUDIT SUBJECT: STATE LAND- 33 units( Annex I)
The Gentri Heights - 29 units (Annex II)
AUDIT FINDINGS: During our course of Audit we found out the following.

I. DETAILED ACCOMPLISHMENT IMPROPERLY EVALUATED

The Detailed accomplishment of Governor’s hills Ysabella model unit with phase 5
block 27 lot 12 was improperly evaluated (see Annex I). The said unit is awarded to Almonte
Construction and Trading Corporation. The table below shown some scope of works evaluated
were different based on actual accomplishment of the said unit. Attached in the report is the
approved evaluated detailed accomplishment report of the contractor for 1/9/16 – 2/8/16 and
look for Annex I actual images of the unit.

Table1. Analysis of percentage (%) of completion Billed vs Actual Status

SCOPE OF WORKS AMOUNT BILLED/ ACTUAL STATUS
EVALUATED

A. GROUND FLOOR WALLS – 64,519.68 100% Less than 100%:

Laying of CHB Wall toilet & bowl partition
was not yet
constructed

B. SECOND FLOOR WALLS - 49,204.84 100% Less than 100%:

Laying of CHB Wall toilet & bowl partition
 was not yet
constructed
C. STAIRS & 3,836.6 100% None wood planks
RAILINGS(FABRICATION are installed
& INSTALLATION) – Wood
planks
D. FLOOR FINISHES – 2/f 18,835.67 50% None vinyl tiles are
contrete topping & vinyl tiles installed
finishing
E. DOOR Doors not yet
INSTALLATION(COMPLET installed except door
E WITH LOCKSETS) jamb only
Ground floor 20,485.57 70%
Second floor 6,820.63 100%

II. DELAY OF CONSTRUCTION – SUBJECT FOR TIME EXTENSION

The following are the common reasons of delays in construction.

 Request of Alteration/Modification of Homeowners.

 Has a typographical error in contract
 Revised structure planned requested by Homeowners
 Hold construction

The tables below showed the summary of units with delay of construction and their corresponding
reasons of delay in construction as per discussion with Project Officers and Project Manager with
supporting documents (see Report dated March 7, 2015)

Table2. Units noted as expired contract but no approved time extension.

# OF ACTUAL
LOCATION DATE OF DAYS % OF CAUSE OF REASON OF DELAY
EXPIRATION DELAY COMP DELAY
LETION
2/29/16

GT P1 B14B L21 2/13/16 16 60% Homeowner Request of

Modification/Alteration

Color of house is not

agreed by homeowners
GT P3 B33 L34 11/13/15 108 92% Homeowner but according to Mr.
and SPI Dennis San Pedro, it
was already settled and
some modification
request from
Homeowner.

Homeowner
GT P2 B21 L16 1/10/16 50 92% Request of
Modification/Alteration
 According to P.O, there
has been delay of
construction due to the
first contract submitted
GT P3 B33 L47 2/29/16 0 63% SPI to Yashar have a
typographical error,
instead of Yashar it is
Arcopaul Construction
which is the reason
they can’t sign the said
contract and took three
weeks before they
signed the contract.

TABLE2.1 Units noted with contract for expiration but lower percentage of completion.
REMAINI ACTUAL
LOCATION DATE OF NG % OF CAUSE OF REASON OF DELAY
EXPIRATION DAYS COMP DELAY
2/29/16 LETION

GT P6 B29 L20 3/19/16 19 67% Homeowner The construction of the

unit will not be
completed upon its
contract expiration on
3/19/16. Due to revised
2nd floor structure as
requested by
Homeowner.

GH P5 B27 L20 3/8/16 8 85% Homeowner Request of Modification

with change order

GH P9 B54 L3/5 3/31/16 31 69% Homeowner The construction of the

unit was hold due to
veranda was not
properly leveled to the
ground floor (roofed
platform reach the
gutter). According to
P.O, the agent was
already coordinated the
owner and waiting for
their response if they
will accept the condition
of the unit.

III. COMMENTS AND RECOMMENDATION FROM SITE:

According to Project Officer Homeowners are aware of being delayed and contractors are advice
to submit time extension. As per SPM Engr. Wilmo F. Fallar, Jr. to avoid none submission of time
extension within the contract duration of the contract Construction below 80% accomplishment of the unit
with 1 month remaining days to complete the contract will be subject for time extension with reasonable
cause of delay.
And Engr Fallar will review the evaluation done by project Officers before contractor’s billings
forwarded for payment.

For your comment sir:

IV. RECOMMEDATION

 Project Officer should conduct detailed checking on evaluated detailed accomplishment report on
progress billings compared to actual condition of the unit to avoid any discrepancies on preparing
the billings. Project Manager should ensure compliance on this part during or after the checking
of evaluated detailed accomplishment report.

 A review of standard contract duration considering the model unit and modification or additional
works requested by Homeowner if any.

Prepared by: Reviewed by:

Accounting Analyst AM – Cost accounting