STATUS OF IMPLEMENTATION OF PRIOR YEAR’S

AUDIT RECOMMENDATIONS

Out of the 11 audit recommendations embodied in the 2016 Annual Audit Report,
6 were implemented, 4 were partially implemented and 1 was not implemented.

Reference Auditor’s
Observations and Actions Taken
Page No. Validation
Recommendations by Management
Result

1. Unreliable balance of the account 23

Office Supplies Inventory
amounting to P756,623.94due to
a) discrepancies in the total
ending inventory cost per
general ledger, SLCs and
accounting summary report; b)
difference in the unit cost and
quantity balance of some items
appearing in the SLCs and
physical inventory/accounting
reports; and c) non-
reconciliation of the supply
records with the physical count
and accounting records due to
un-updated SC.

We recommended that
Management:

a. require the Accountant to Implemented

determine the cause/s of the
noted discrepancies and The SLCs and
make appropriate actions; the accounting
summary report
were already
adjusted.

b. require the Supply Officer Partially

(SO) to regularly update the Implemented
SCs by immediately posting
the transactions to SCs for SCs for CY
proper monitoring of the 2016 were
items carried on stocks; and already updated.
For CY 2017,

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 Reference Auditor’s
Observations and Actions Taken
Page No. Validation
Recommendations by Management
Result
postings made
in the SCs were
up to July 2017
only.

c. require the Accountant and Implemented

SO to reconcile the physical
count with the accounting Regular
and supply records. reconciliation is
being done
between the
Accounting and
Property
records.

2. The fairness of presentation of 25 The 2016 Verified JEV

the PPE accounts balance of discrepancies No. 17-01-0011
P4,747,131.22 at year-end could were already dated January
not be relied upon due to adjusted. 31, 2017 for the
a) understatement of the Office adjustment
Equipment account by made.
P68,000.00; and b) absence of
PPELC and un-updated PC.

We recommended that
Management require the:

a. Accountant to maintain Partially

PPELC for each PPE and Implemented
make necessary adjusting
entries; The Accounting
Unit does not
maintain
individual
ledger card for
each PPE,
instead, a
summary in
excel format is
prepared for
each class of
equipment.

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 Reference Auditor’s
Observations and Actions Taken
Page No. Validation
Recommendations by Management
Result

b. Property Officer (PO) to Partially

regularly update the PCs on Implemented
information about the asset,
and to report immediately to As of date, latest
the Accountant any PPE purchases in
acquisition with the 2017 were still
provision of necessary not posted in the
documents for recording in PCs.
the books; and

Implemented
c. Accountant and PO to
reconcile their records, and Regular
both records with the reconciliation is
physical inventory report so being done
that appropriate between the
action/adjustments could be Accounting and
made, in case of Property
disagreement. records.

3. The RPPCV and PCFR to 27

monitor and control the grant,
utilization and replenishment of
Petty Cash were not prepared
and maintained.

We recommended that the Implemented

SDO maintain the PCFR to
record the daily transactions The SDO now
such as the grant/replenishment maintains the
and utilization/disbursements of PCFR and uses
Petty Cash for monitoring and the RPPCV in
control purposes, and to the
reconcile the daily balance with replenishment of
the cash on hand. Likewise, PCF.
prepare the required RPPCV to
replenish the Petty Cash.

4. Grant of special leave privileges 28 Leave cards of .

to the FSI personnel was employees who
contrary to the CSC availed SPL from
Memorandum Circular (MC) January 2012 to

52
 Reference Auditor’s
Observations and Actions Taken
Page No. Validation
Recommendations by Management
Result
No. 41, s.1998 considering that May 31, 2016 are
they are covered by special law. being reviewed
Moreover, payments of TLB by the Personnel
were not duly supported with Section.
proper documents.

We recommended that
Management:

a. require the concerned

personnel to refund the Not
equivalent money value of Implemented.
the 47 days special leave Management is
privileges availed in the still waiting for
total amount of P48,284.27. CSC’s decision
Henceforth, instruct the on the request
Personnel Division to for
deduct the special leave reconsideration
privileges availed by by the DFA.
concerned officials /
employees from their leave
credit balances or require
them to refund the
equivalent peso amount, in
case the available leave
credit balance is not
sufficient to cover the same;
and

b. submit the lacking FSI submitted the Implemented

documents and henceforth, lacking
ensure that the DVs are documents on
duly supported with proper May 10, 2017.
documents required under
COA Circular No. 2012-
001.

5. Purchased of 49 units of 30 Distribution of The 37 units of

computers in July 2016 totaling the 37 units computer are
P1,668,970.40 were started in April now being used
inadequately planned resulting 2017 and by FSI
to unutilized 37 units of completed in May employees.
computers including software as 2017.

53
 Reference Auditor’s
Observations and Actions Taken
Page No. Validation
Recommendations by Management
Result
of March 22, 2017, thus,
exposing the same to
deterioration that may
eventually result to wastage of
government resources.

We recommended that
Management:

a. cause the immediate use of Implemented

the 37 new computers to
maximize its operational
efficiency; and

b. conduct judicious planning Partially

before undertaking any Implemented.
procurement taking into Reiterated in
consideration the finding Nos. 4
immediate/actual needs and and 7
available resources to ensure
the efficient and prudent use
of government resources.

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