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STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATIONS

Follow up and validation on the actions of Management on audit recommendations contained


in the Consolidated Annual Audit Report for the year ended December 31, 2015 noted that of the 82
recommendations 22 were fully implemented and 60 were partially implemented:

Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
VALUE FOR MONEY
Budget Utilization
1. Of the P42.977 billion CAAR To strengthen monitoring and Fully
unutilized allotment of the DepEd, 2015 coordination among the DepEd Offices Implemented
the Central Office (CO) has 69 Pages (CO/ROs/DOs/Schools) so that
percent share of the unutilized 95 -113 appropriate corrective measures can
portion totaling P29.670 billion, the readily be provided to successfully carry
ROs with P11.985 billion or 28 out the programs/projects implementation
percent, and the remaining P1.323 for the benefit of the students;
billion or three percent for the
Bureaus. The CO’s unutilized To enhance the efficiency and Fully
allotment affected the efficient effectiveness of the procurement Implemented
implementation of the DepEd’s processes through adequate planning and
programs and projects on the realistic timelines to fast track timely
delivery of its performance targets implementation of programs, improve
attributed to some gaps noted in public spending, and increase the quality
carrying out required processes/ of service delivery to its primary
procedures such as: (a) 43,544 stakeholders; and
undelivered ICT packages worth
P7.46 billion under the DepEd To ensure the optimum utilization of Partially
Computerization Program, funds received through timely releases of Implemented
(b) 71,692 undelivered packages of Sub-ARO to operating units and conduct
basic Science and Mathematics of regular monitoring in the use of
Equipment compliant to the K to 12 allotments to immediately address issues
Curriculum valued at P4.79 billion, causing inefficient or non-utilization
(c) 1,139,192 Out of School Youth thereof so that concerned officials can
not yet enrolled/ covered under the consider other options/strategies towards
Abot Alam Program of P2.92 sustainability of the delivery of the
billion, and (d) 114,307,233 programs/projects’ objectives.
unprocured Kinder to Grade 10
Textbooks and Instructional/
Learning Materials amounting to
P2.413 billion.

303
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that the CO
Management revisit its operating
strategies to ensure achievement DepEd Computerization Program (DCP):
of the strategic objectives that it
envisioned to realize based on the In 2016 the DepEd explored the
commitment laid down in the possibility of procuring a portion of its
GAA and strengthen monitoring computer requirements through the
and coordination among the United Nations Development Program
DepEd Offices in the implemen- (UNDP), as allowed under GPPB
tation of various programs/ Resolution No. 29-2015.
projects since accomplishment of
every segment of the DepEd’s Science and Mathematics Equipment
organization will have an effect in (SME):
the assessment of the
performance of DepEd as a In January 2016, P3.685 billion worth of
whole. SME has been awarded. Deliveries of
equipment are on-going and are expected
to be completed by December 2016. As of
May 2016, P3.174 billion or 79 percent of
the P4.0 billion FY 2015 allotment for
SME has been obligated.

Abot Alam Program:

The updated Learner Information System


(LIS) data will provide a more accurate
count of OSYs mapped and enrolled by
Abot-Alam in basic education and will be
the basis for the next downloading of
funds to the Regions and Divisions to
cover teacher allowances, capacity
building, advocacy and social
mobilization, and monitoring and
evaluation. Thus, after the downloading
of the second tranche of allowances for
ALS implementers from the 2014
continuing funds in June 2015, and before
the Department proceeded with the
downloading of 2015 funds to cover an
additional target of 650,000 learners for

304
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
basic education. The Divisions were
asked to submit their 2014 fund utilization
reports and upload/encode their data of
enrolled learners in the Department’s LIS.
They were also asked to upload on the LIS
their data of “OSYs mapped for basic
education but not yet enrolled”. This
process was scheduled to be completed on
May 20, 2016.

Textbooks/Instructional Materials:

In 2016, P145 million worth of Grades 3,


8 and 9 learning materials were procured
with Notices to Proceed for issuance
while the Grades 1 and 7 materials are
subject to resolution of copyright issues.
Likewise the Grade 5 learning materials
have been evaluated and awarded in 2016
and is already programmed for
reproduction.

Government Assistance to Students and


Teachers in Private Education
(GASTPE):

As of May 2016, only P719 million or 8


percent out of the P8.337 billion FY 2015
allotment for GASTPE remains
unobligated. This amount can be
considered as savings since obligations
for ESC grantees in SY 2015-2016 have
been accounted for, including the
Management fee, in-service training and
research funds allocated for the Private
Education Assistance Committee
(PEAC), the program manager of the
GASTPE program.

305
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Provision and Maintenance of Basic
Education Facilities Fund (BEFF):
The unobligated amount reflected
pertains to the P2.473 billion allotment for
repairs and rehabilitation that was
released by the DBM to DepEd, P1.062
billion directly released to the RO for the
implementation of the Bottom-Up
Budgeting and P1.31 billion that was
released in August 2015. This amount has
since been sub-allotted to the Regional
and DOs upon submission of Resolutions
to Award. However, in the course of
implementation, several failures of
biddings were encountered thereby
resulting to the need to rebid the projects.
Quick Response Fund (QRF):
Most of the budget was used to fund the
repair and rehabilitation of school
buildings damaged by typhoons Amang,
Lando, and Nona. There is a need for the
DepEd engineers to conduct actual
validation of damages to determine the
extent of repair/rehabilitation works or
replacement needed by the schools. This
process takes some time and is the basis
for the allocation of funds under QRF.
On the late releases of sub-allotment to
regions/divisions: A large share of the
funds downloaded in the last quarter were
for the programs wherein DepEd requires
the submission of Resolution to Award
prior to the downloading of funds (i.e.
BEFF and QRF). The Department has
adopted this policy to ensure that the
allotments downloaded to the field units
are fully obligated.

306
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Implementation of projects under Basic Educational Facilities Fund
 Public Private Partnership for School Infrastructure Program (PSIP) I and II
2. The PSIP I with contract cost CAAR CO
of P16.280 billion to construct 2015
9,298 classrooms in ROs I, III and Page On the adequate guidelines for reporting Fully
IV-A and PSIP II for contract 114 - school building infrastructures needing Implemented
amount of P3.859 billion to 144 repair, rehabilitation or reconstruction
construct 4,370 classrooms in CAR, works under PSIP I and II:
CARAGA, Regions I, II, III and X DepEd thru the Education Facilities
to address the backlog and Division (EFD) together with the
increasing classroom requirements respective PSIP 1 proponents conducted
and completely provide the school in 2015 a series of orientation/training
children with the needed school with school heads of PSIP 1 recipient
facilities that would contribute to school. The training is supplemented by a
the improvement of their learning building maintenance manual that
process were not completed within contains the basic procedure for
the construction schedule under the conducting maintenance of PSIP
Build-Lease-Transfer (BLT) completed buildings including a report
Agreement for PSIP I and Build- card where the schools should submit
Transfer (BT) Agreement for PSIP their report to the proponent on any
II due to inability to consider and problems/issues that needs to be
evaluate projects sites and thorough addressed by the proponent.
conduct of assessment of would-be
recipient schools, lapses in the On the Evaluation of project sites and
procurement process and conduct/inspection/appraisal of a Fully
unattended deficiencies/defects thorough assessment of would-be Implemented
which delayed the completion of recipient schools sites:
schools buildings.
Prior to the bidding of the projects in
We recommended concerned 2010-2011, DepEd Regional and DOs
Management to: conducted site appraisals for would be
PSIP sites. The output of this activity
a. CO – which is the Site Appraisal Report (SAR)
was part of the bidding documents issued
 provide adequate guidelines to bidders during the bidding in 2012 and
for reporting school building 2013. It was emphasized during the
infrastructures needing conduct of the bidding that the bidders
repair, rehabilitation, or should conduct due diligence in
reconstruction works under confirming the result of SAR, thus they
the PSIP I and II; may also conduct their own validation.

307
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
 evaluate project sites and During the implementation, realignments
conduct a thorough were made by the proponents in some
assessment of would-be sites due to the following;
recipient schools; 1.) Accessibility issues; 2.) Security
issues; 3.) Site has no buildable space.
 ascertain compliance with the The issue on no buildable space was
PD No. 1096, the 1997 attributed due to the delayed
National Building Code of the implementation of the project (appraisal
Philippines (NBCP) and other in 2011 and actual construction in 2013),
relevant rules and regulations wherein some schools have permitted the
related to construction; construction from other fund sources
thinking that PSIP project will not
 ensure that the Proponent commence. This is inspite of the
undertake the repair, memorandum issued by the Secretary on
rehabilitation, or reconstruc- the reservation of PSIP sites.
tion in accordance with
On compliance with the PD No. 1096, Fully
Section 13 of the BT
1997 National Building Code of the Implemented
Agreement and imposed the
Philippines (NBCP) and other relevant
necessary liquidated damages
rules and regulations related to
upon failure of the Proponent
construction:
to comply therewith;
The standard detailed engineering plans
b. Concerned Regions – and specifications went thru the process
of evaluation during the bidding of the
 make proper coordination projects and were accepted by consultants
among officials/personnel/ as complying with the requirements of the
contractors involved in the Minimum Performance Standard and
implementation of projects to Specifications (MPSS). These were
ensure that the Proponent further reviewed and evaluated by the
comply with its obligation to Independent Consultants (ICs) of the
repair or rectify, at its own project and were recommended to DepEd
cost, all defects and for implementation. The proponent has an
deficiencies observed by obligation to secure building permit for
DepEd during the period in the implementation of the projects.
order to make the Project
conform to the MPSS; On ensuring that the proponent undertake Partially
the repair, rehabilitation, or reconstruction Implemented
 conduct thorough site and the imposition of the necessary
inspection/appraisal and liquidated damages upon failure of the
consider all factors that may proponent to comply therewith:

308
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
affect the construction of Regular monitoring of the projects
proposed school buildings; needing repair/rehabilitation/recons-
and truction is being done by EFD. This
includes projects under the Defects and
c. henceforth, exercise diligent Liability Period (DLP) and under
monitoring and supervision of warranty. Update on this is regularly
the implementation of project being submitted to COA for information.
to ensure that only those
projects done in accordance Per Certification issued by the Office of
with the requirements of the Planning Service- Education Facilities
contract are accepted and paid. Division dated May 30, 2016, the 64 sub-
projects with noted defects and/or
deficiencies for Contract Package C in
Region IV-A under Citicore-Megawide
Consortium Inc. have already been
completed for the repair works for 55 sub-
projects while 9 sub-projects are still on-
going.
On the monitoring and supervision of the Fully
implementation of the project on the Implemented
regional/division level.
The Division Engineers were also part of
the joint inspection team composed of the
DepEd, IC and proponent for the conduct
of final inspection which was a pre-
requisite for the approval of the
Certificate of Completion and Certificate
of Appearance.
On the proper coordination among Fully
officials, personnel and contractors to Implemented
ensure that the proponent comply with its
obligation to repair or rectify, at its own
cost, all defects and deficiencies observed
by DepEd in conformance with the
MPSS.

Regional and DOs are participants of the


regular Regional Monthly Coordination
Meetings being conducted by the IC

309
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
together with the proponent to determine
the issues and concerns in the
implementation where the region/division
can provide assistance in the resolution of
issues to avoid further delay in the
implementation of the project. The
Division Engineers were also part of the
joint inspection team composed of
DepEd, IC and proponent for the conduct
of final inspection which was a pre-
requisite for the approval of the
Certificate of Completion and Certificate
of Acceptance.
Implementation of projects under Basic Educational Facilities Fund
 Repairs and rehabilitation of classrooms and construction of school buildings under BEFF

3. Repair and rehabilitation of CAAR Partially


classrooms costing at least 2015 Implemented
P922,568,510.13 located in 12 Page
regions were not done/completed 144 - CO
as planned/scheduled due to non- 153 Department formed a cluster under Partially
observance of the rules and contract of service that will be assigned in Implemented
procedures of RA No. 9184 and its divisions with no engineers or those
revised IRR that delayed the divisions with high volume of
procurement process and constructions to properly monitor project
implementation of projects, and implementation
unattended deficiencies/defects
which affected the efficient a. Repairs/Rehabilitation of classrooms
implementation of the projects. not completed/done as scheduled/
planned
Moreover, delayed provision of
classrooms in Region VII (DO RO I
Bohol) has been observed as total Delay of the implementation was due to Partially
of 88 classrooms or 68.22 percent revision of Program of Work (POW) Implemented
of 129 classrooms for construction hence the proposed school building were
worth P53,446,425.39 funded by already repaired by the School during
CY 2012 BEFF were completed as Brigada Eskwela and some were
of December 31, 2015, while 41 or programmed by the LGUs.
31.78 percent of classrooms with
allocated cost of P25,685,547.52

310
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
were abandoned but no action was RO II
taken against the erring contractors Management commented that they will be Fully
that resulted in unfinished/ more diligent in the monitoring of these Implemented
unstarted projects to the detriment projects and requested the engineers to
of the students. immediately take appropriate actions to
ensure that implementation of the projects
We recommended that the is within timelines and in accordance with
Management require concerned plans and specifications.
Offices of the Department to
exercise diligent monitoring and RO III
supervision on the Already inspected by and paid the 2014 Fully
implementation of projects on BEFF – Repair and Rehabilitation of Implemented
the construction and Classrooms.
rehabilitation of classrooms to
RO VIII
immediately address issues and
Management will hasten the release of Partially
lapses thereof, which certainly
fund to be able to proceed and fully Implemented
affects the delivery of physical
implement the said program/project.
targets, to address resource gap
in school facilities and the Equipment availability and failure,
provision of adequate, safe, weather condition and transportation
comfortable and functional constraints.
facilities conducive to learning
and teaching. RO XIII
Constant coordination with the CO. Partially
Implemented
Proceeded with the procurement process
while waiting for the SARO to expedite
the repair and rehabilitation of the
identified schools.

CAR
Management also added that concerned
Partially
personnel/officials are required to review
Implemented
the different stages of procurement,
identify the cause of delay and avoid
similar lapses in future procurements.

RO VI
All construction were reported to be
Partially
100percent and was inspected last June
Implemented
2016

311
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation

RO XI
DO COMVAL, Davao del Sur, Digos City Fully
Implemented
b. Non-compliance with applicable
provisions of RA No. 9184 and its IRR

RO V
Some corrective works that were Partially
recommended by the Engineer were not Implemented
yet inspected.

Region VI
Province of Negros Occidental Partially
Implemented
c. Deficiencies/Defects on repairs
undertaken

RO IV-B
Partially
The Schools Division Superintendent of Implemented
Oriental Mindoro through the Chief,
School Governance and Operations
Division (SGOD) submitted the
certifications from the Contractors that
the deficiencies and findings have been
rectified/corrected and submitted pictures
showing the renovations made on each
concerned cluster including the school
building in Balugo NHS. The
Management requested for re-inspection
of the projects, however, the team could
not forward the request to COA-TAS
pending the submission of Agency
Inspection Reports.

Timelines in the project implementation


were not followed. Repair and
rehabilitation of School Buildings
particularly those located in the 3rd
legislative district of Albay (lot 8) and 2nd
legislative district of Sorsogon (lot 13)

312
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
were still unfinished as of December 31,
2016.

d. Delayed completion of construction of


School Buildings out of the FY 2012
BEFF

DO Bohol
Some of the unstarted projects were Partially
already given allocations such as Biasong Implemented
ES, Loon which has a new classroom
funded by DepEd thru Public Private
Partnership, Busao HS, Maribojoc which
has a new construction of two classrooms
funded by DepEd QRD fund, Canmaya
Centro Diot, Sagbayan which has three
new classrooms funded by Aboitiz
Foundation, Handumon ES and
Handumon HS, Getafe which has one
classroom and three classrooms,
respectively, from BEFF 2014 Batch 1
and Datag ES, Inabanga which has an
allocation for a 2 storey 4 classroom
building in the BEFF 2014 Batch 6.
Implementation of projects under Basic Educational Facilities Fund
 DPWH constructed School Buildings
4. In Region X (DO Gingoog CAAR Partially
City), of the 150 classrooms 2015 Implemented
having total contract cost of Page
P199,827,967.32 supposed to be 154- CAR
accomplished during the year by 156
The issue on the ownership of the school Partially
the DPWH, only five classrooms
site at Apatan ES has already been Implemented
or three percent costing
resolved to date. For the Kalinga NHS-
P4,439,899.17 was reported 100
Ambato Tinglayan Annex, the school
percent completed; 131
building has already been completed,
classrooms or 88 percent worth
P181,634,458.15 were still under- There are still some corrective works to be
going construction; while 14 undertaken for the Ambato Tinglayan
classrooms or nine percent of the Annex .
total number of classrooms

313
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
amounting to P13,753,610.00 For Butbut and Loccong ES, Management
were not yet started due to committed to coordinate with DPWH
problems encountered in the Management to address the problem.
procurement, site and release of
funds. On the other hand, the RO X
inability to consider site condition DO Gingoog
in cost estimates, the school Still on process of coordinating with Partially
buildings with allocated amount of DPWH for monitoring of new projects Implemented
P24,015,939.46 for two schools
under NCR (DO Caloocan) were On-going inspection & verification of
not fully completed for insufficient Completed School buildings
fund; while in CAR (DO Kalinga),
four school buildings funded by NCR Fully
the 2013 BEFF remained Implemented
unfinished and abandoned as of
December 31, 2015 due to legal
disputes on land ownership and
labor.

We recommended that the


Management require the ROs
and DOs to strictly observe the
monitoring/coordination re-
quirement starting from the pre-
construction stage to completion
of school buildings constructed
by DPWH as provided under
DBM, DepEd and DPWH Joint
Circular No. 2013-1 and DepEd
Order No. 1, s. 2010.
Implementation of projects under Basic Educational Facilities Fund
 Provision of school furniture under BEFF
5. The equitable and adequate CAAR Partially
provision of school furniture in the 2015 A. Delayed execution of procurement Implemented
schools located in Regions NCR, Page and timely delivery of school furniture
CAR, II, VI, X and XI to address 156-
the gaps in school facilities under 162 RO II-ROP
BEFF was affected by: The Management is closely monitoring Partially
(a) deficiencies observed in the the deliveries of the school furniture to Implemented
execution of procurement process ensure that these are available before the

314
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
that delayed the use of furniture classes start for SY 2016-2017.
with allocated budget of at least Liquidated damages will also be imposed
P69,367,593.76; (b) inclusion in to the supplier if there are late deliveries.
delivery of defective or inferior
quality armchairs attributable to RO XII
At present, progress billings are now Partially
leniency in adhering the required
processed for payment to contractors and Implemented
procedures on inspection of
procured furniture worth delivery of the school furniture are now
P1,282,070.00; (c) non-adherence on going.
to the prescribed procedures in
RO VI
accepting deliveries; (d) non- Fully
Procurement is being undertaken by the
compliance with applicable Implemented
agency up to Resolution to Award (RTA)
provisions of RA No. 9184 and its
while still waiting for the fund/allotment.
IRR and (e) inadequate
assessment/validation of school B. Delivery of defective or inferior
furniture allocation. quality armchairs attributable to leniency
in adhering the required procedures on
We recommended that the inspection of procured furniture.
Management require the
concerned Offices to strengthen RO X
the monitoring of project The Management through the Regional Fully
implementation and to ensure Inspectorate Team informed the supplier, Implemented
that funds and school furniture Ang Panday Producer’s Cooperative, to
reached the intended act on the findings and observations made
implementers and recipient by the composite COA-DepEd Regional
schools early on before the start Inspectorate Team held on January 26 –
of school year, the Suppliers/ February 19, 2016 at the schools/DOs of
Contractors faithfully perform Lanao del Norte, Iligan City, Ozamis
their contractual obligations, and City, Misamis Oriental and Bukidnon.
the DepEd Regional/Division/
School officials observe prudence C. Non-compliance with applicable
in carrying out their duties to provisions of RA No. 9184 and its IRR
avoid delays in the provision of
RO V
adequate school seats.
DO Masbate: the contractor has already Partially
requested for time extension and the BAC Implemented
had prepared a resolution granting the
request of contractor and approved by the
SDS and also promised to impose
liquidated damages, if necessary, for the
unfinished contract.

315
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation

RO XI Fully
DO COMVAL: Management admitted the Implemented
lapses and immediately furnished the
COA office of the lacking documents.
With regards to the questioned 12 percent
VAT of the bid price, the Management
opted not to pay the supplier the whole
contract amount but retained the
equivalent 12 percent, pending on-going
consultation with proper authorities for
the validity of the transaction.

NCR
DO Caloocan implemented the audit Partially
recommendation Implemented

Coordination with DPWH officials to


hasten construction of the SBs were not
done by DOs Navotas and Valenzuela
School Based Feeding Program (SBFP)
6. The implementation of the CAAR To assign a Regional Technical Working Fully
SY 2015-2016 SBFP as reported in 2015 Group or a focal person to monitor the Implemented
five ROs (IV-A, VI, VIII, X, NCR) Page activities of the SDOs including the
with disbursements aggregating to 162- timely release of funds to SHs, progress of
P213,483,449.00 encountered 171 implementation, liquidation of funds and
interruptions/delays due to late submission of reports, as required by
receipt or lack of funds of DepEd Order No. 33, s. 2015;
implementers that eventually
resulted to deferred/non To conduct regular monitoring in the Fully
completion of the 120 feeding days release, receipt and use of funds and Implemented
and unprocured or inadequate enforce the timely submission of reports
provision of iron supplement, by the Regions/DOs and schools to
toothbrush/toothpaste/soap immediately address issues concerning
essential to health care and the program implementation so that
hygiene; and unmonitored cycle concerned officials can strategize for the
menu and healthy meals served. effective delivery of desired results for
These lapses could adversely SBFP;
affect the attainment of the
To exert extra effort to observe the Partially
targeted significant impact on the
implementing guidelines set forth under Implemented

316
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
health and nutritional status of the DepEd Order No. 33, s. 2015 on SBFP;
school children and likewise, and
depriving them to have gain the
full benefits expected from the for DSWD funded SBFP, submit to Partially
program. DSWD all required reports and return any Implemented
unutilized fund balance as provided for
Similarly, the DSWD-funded under DepEd Order No. 37, s. 2014.
SBFP for SY 2014-2015 also
encountered delayed SBFP for SY 2015-2016
implementation attributed to late
RO IV-A
receipt of funds and non-
Division of Calamba City Partially
compliance to operational
The BAC recommended the Alternative Implemented
guidelines by implementing
Method of Procurement (Shopping).
schools affecting completion of the
Using this method, the Agency was able
120 feeding days and healthy food
to issue Purchase Orders for iron tablets
requirements.
and health kits. During the orientation
We recommended that the made by the CO, DepEd HNC recognized
Management require concerned that the budget allotted for iron tablets and
implementing DepEd Offices/ health kits are very low, but they were
Schools to:: able to find suppliers for the said
commodity. Also, they acknowledged the
 assign a Regional Technical late issuance of SUB-ARO.
Working Group or a focal
person to monitor the activities Division of Sta. Rosa City quotations
of the SDOs including the from the three local pharmacies was P0.70
timely release of funds to SHs, per tablet so that no local pharmacy can
progress of implementation, supply the quantity of the said item as
liquidation of funds and indicated in the program. Likewise, they
submission of reports, as were forwarding to the CO their comment
required by DepEd Order No. about the very low budget allocated for
33, s. 2015; iron tablets and health kits to come up
with a more realistic budget of the above
 conduct regular monitoring in commodities.
the release, receipt and use of
funds and enforce the timely Division of San Pablo City, iron tablets
submission of reports by the and health kits were purchased on
Regions/DOs and schools to December 23, 2015 using part of the
immediately address issues Division’s MOOE fund to comply with
concerning the program the required time table set by the DepEd
implementation so that CO to improve the school children’s
health and nutrition values and behavior

317
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
concerned officials can and the conduct of complimentary
strategize for the effective activities such as good grooming and
delivery of desired results for personal hygiene.
SBFP;
DO Rizal
The Division has already instructed the Fully
 henceforth, exert extra effort Implemented
to observe the implementing personnel in charge with the SBFP of
guidelines set forth under DepEd Rizal to constantly coordinate
DepEd Order No. 33, s. 2015 with the DepEd RO for the prompt release
on SBFP; and of funds.

RO VIII
 for DSWD funded SBFP, DOs of Leyte Tacloban City, Borongan Fully
submit to DSWD all required City, Northern Samar, Eastern Samar, Implemented
reports and return any Calbayog City, Ormoc
unutilized fund balance as
provided for under DepEd DO Maasin Partially
Order No. 37, s. 2014. Implemented
RO X
DO El Salvador Fully
During the exit conference, the SBFP Implemented
Focal Person and the Division Accountant
stated that numerous verbal
communications had been made to follow
up DepEd CO of the release funds through
the DepEd RO X prior to the full release
of the first tranche to ensure that
implementing schools can have the
funding on time.

SBFP for SY 2014-2015

RO II Fully
DO Isabela Implemented
RO III Fully
ROP; DOs Malolos will closely monitor Implemented
the implementation of the School Based
Feeding Program as stipulated in DepEd
Order No. 37 s. 2014.

318
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
NCR Partially
DO Tapat Implemented
Collating all the reports and explanations

DO Marikina Partially
The cycle menu were not followed Implemented

DO San Juan; Parañaque Fully


The SBFP for SY 2015- 2016 have been Implemented
fully downloaded to recipient Schools

DO Quezon City Partially


Unutilized SBFP funds of DO QC in the Implemented
amount of P3,494,528.00 were not yet
returned to DSWD as of December 31,
2016.

The actual utilization/distribution of the Partially


6,310 bottles ferrous sulfate by the SBFP Implemented
beneficiaries is yet to be accounted for

RO IV-B
Fully
DO-Oriental Mindoro and Calapan City
Implemented

Partially
DO-Palawan
Implemented

Partially
RO V
Implemented
DO Albay
Fully
DO Camarines Norte
Implemented
RO VI Partially
DOs Antique, Passi City, Implemented

RO X Partially
DOs of Iligan, Malaybalay, Valencia Implemented
DO Cagayan de Oro; DO Gingoog Fully
Required reports were already submitted Implemented
on time.

319
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
DepEd Computerization Program
7. The lack of a more CAAR To ensure the school readiness Fully
comprehensive monitoring and 2015 immediately after the project planning Implemented
evaluation by the Program Page design stage and not during contract
Management Committee for CY 171- implementation. Early notice to school
2014 DepEd Computerization 183 recipients allows for preparation with
Program covering Batches 26, 27 adequate time, resources and personnel
and 28 E-Classroom Packages before project implementation. It will also
totaling P2.7 billion resulted to: allow the Management to consider a
(a) undelivered computer packages realistic contract completion date for the
amounting to P1.5 billion which project which will eliminate extension of
are delayed following the time completion dates.
schedule prescribed in the contract
that could not only adversely affect To conduct an effective program Fully
the timely provision of appropriate orientation for the recipient schools, Implemented
technologies to public schools as division and ROs highlighting the
desired by DepEd but would also importance of coordination, and
determine suppliers’ liability for preparation of reports in accordance with
liquidated damages on late existing DepEd guidelines. The
deliveries without valid time reportorial requirements as per the related
extension; (b) unrecorded DepEd issuances serve as indicators that
deliveries of IT Packages totaling would allow the CO to objectively
P1.1 billion in the books of measure the program’s progress, verify
accounts of the DOs and secondary the achievement of its objectives and
schools hence no controlling become aware of other conditions which
account for the accountability and could restrict the progress of activities,
understating the appropriate and the primary outcome of the program.
equipment account in their
Property Division to prepare the Property Partially
respective financial statements;
Transfer Report for the delivered ICT Implemented
and (c) payment of suppliers’
packages to be submitted to Accounting
progress billings not in compliance
Division which the latter will be used as a
with the payment provisions of the
basis for dropping the ICT equipment
contract.
from the books of accounts.
We recommended and the
Accounting Division to consider the
Management agreed to require Partially
interest of the government by not
the concerned CO Offices: Implemented
allowing payments to supplier billings not
in accordance with the conditions as
stipulated in the provisions of the
contract.

320
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
a. ICTS -
CO
 to ensure the school Management also emphasized that ICTS Partially
readiness immediately after developed a DCP ticketing system that Implemented
the project planning design will address the deployment monitoring in
stage and not during the schools and the supplier’s
contract implementation. performance on responding to after sales
Early notice to school concerns reported by recipient schools.
recipients allows for The plan is to use this system in the 2015
preparation with adequate DCP batches which will commence
time, resources and deployment in May 2016.
personnel before project
implementation. It will also CAR
allow the Management to The Inventory and Monitoring Team Partially
consider a realistic contract included the assessment of connectivity of Implemented
completion date for the schools in the inventory conducted in
project which will eliminate April and May 2016
extension of completion
dates. RO II
Computer units per school were Partially
 to conduct an effective categorized as working, not working, for Implemented
program orientation for the repair. A report was sent to the supplier of
recipient schools, division the ICT packages.
and ROs highlighting the
importance of coordination, So far only one laptop has been repaired
and preparation of reports from among the laptop that were
in accordance with existing determined to be not functional further,
DepEd guidelines. The Replacement of the defective AVR found
reportorial requirements as during the validation remained not acted
per the related DepEd upon/replaced.
issuances serve as indicators
that would allow the CO to
objectively measure the
program’s progress, verify
the achievement of its
objectives and become
aware of other conditions
which could restrict the
progress of activities, and
the primary outcome of the
program.

321
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
b. Property Division to prepare
the Property Transfer Report
for the delivered ICT
packages to be submitted to
Accounting Division which
the latter will be used as a
basis for dropping the ICT
equipment from the books of
accounts.

c. Accounting Division to
consider the interest of the
government by not allowing
payments to supplier billings
not in accordance with the
conditions as stipulated in the
provisions of the contract.
DepEd Internet Connectivity Project (DICP)
8. In six Regions, the inability CAAR Facilitate early release of funds to Fully
to evaluate and regularly monitor 2015 implementing offices for the efficient Implemented
implementation of the DepEd Page implementation of DICP;
Internet Connectivity Project 183-
hampered the immediate provision 194 Remind the School heads/Principals of Fully
of necessary interventions on IUs to charge internet subscription fees Implemented
internet connectivity problems and from the DICP funds; avoid charging
proper utilization of funds that them from school MOOE; and strictly
could be detrimental to students adhere to the guidelines set on each
and teachers learning activities pursuant to DepEd Order No. 50 s. 2009.
through the use of high-tech
communication facilities. Funds for internet connectivity was
already included in the Schools MOOE
We recommended that the
Management in concerned Institute assessment and monitoring Partially
offices: mechanism on the DICP implementation Implemented
to determine actual condition of the
a. DepEd CO –
internet connections in schools and to
 facilitate early release of immediately address problems
funds to implementing offices encountered along the way so as not to
for the efficient hamper students and teachers school
implementation of DICP; activities; and

322
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation

b. Region/DOs – RO I

 institute assessment and DO Ilocos Norte; DO Laoag City; DO Partially


monitoring mechanism on Batac City; DO-Urdaneta City Implemented
the DICP implementation to
determine actual condition of ROP; DO Ilocos Sur; DO-La Union; DO- Fully
the internet connections in Pangasinan II; DO-Alaminos City; DO- Implemented
schools and to immediately Dagupan City
address problems
encountered along the way so DO Vigan; DO-Candon; DO-San Not
as not to hamper students Fernando City; DO-Pangasinan I; DO- Implemented
and teachers school San Carlos City
activities; and
RO III
 remind the School heads/ City of San Fernando ;DO-Aurora; DO- Fully
Principals of IUs to charge Bulacan; DO- City of Malolos; Olongapo Implemented
internet subscription fees City
from the DICP funds; avoid The Division will closely monitor the
charging them from school implementation of the program.
MOOE; and strictly adhere
to the guidelines set on each DO-San Jose Del Monte City Fully
pursuant to DepEd Order Information Technology Officer Arthur Implemented
No. 50 s. 2009. Francisco has been directed and has
started to visit schools to monitor and
provide technical assistance on the DICP
implementation.

DO-Nueva Ecija; DO-Gapan City Partially


Require school head to comply strictly to Implemented
the guidelines and organized a team
composed of Division ICT Coor. ,
Accountant & TLE Supervisor to review
& evaluate the efficiency & quality of
service provided by the ISP

DO-Mabalacat City
Issued Division Memorandum No. 57, s. Fully
2016 dated March 4, 2016 informing the Implemented
recipient schools to: Discontinue charging

323
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
internet subscription fees from their
School MOOE funds. Instead, the fees
shall be charged against DICP funds. And
all School Heads/Principals are expected
to fully utilize the monthly allotment of
schools amounting to P4,000 by
subscribing additional lines, if necessary.

DO-Zambales
Beginning CY 2016, MOOE allocation of Fully
each secondary and elementary schools Implemented
are inclusive of DICP Fund.

RO IVA Fully
DO Lipa Implemented

RO V Fully
Implemented

RO X
DO-Ozamis City; DO-El Salvador City; Fully
DO-Gingoog City;DO-Valencia City Implemented
Currently, the unutilized portion of the
budget of each school recipient have
already been downloaded to the schools

RO XI
DO-Davao del Norte: Management Partially
recognized the existing problem and the Implemented
Schools Division Superintendent
assigned the Chief of the Curriculum
Implementation Division and Division
Accountant together with Division ICT
Coordinator to monitor and address a
solution to this existing problem.

DO-Panabo City
The Management together with the Fully
Division ICT Coordinator provide Implemented
help/assistance to the secondary IUs and

324
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Non-IUs and elementary central school in
the facilitation of internet connectivity in
their respective schools. Some of the
school principals started signing contracts
with the Telcos/provider.

RO VIII Fully
DO-Maasin City and 6 IUs Implemented

RO XII
NTC certificates and business permits for Fully
CY 2013 to 2014 were already submitted Implemented
last October 30, 2015. For CY 2015
Allotment: for Compliance The
Management will change provider to
PLDT

CAR
Management had conducted an Fully
assessment of the DICP implementation Implemented
and Secondary schools with funds
allocated for the DICP within the Division
of Kalinga are already connected to the
internet.

RO II
Funds were already downloaded to Fully
recipient schools. Implemented

RO IV-B Fully
DO-Marinduque Implemented

RO V Partially
DO Albay Implemented

DO Iriga City Fully


Implemented

Region VI Partially
DOs- Aklan, Antique Implemented

325
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
RO VIII Partially
DO of Southern Leyte Implemented

RO X
ROP, DOs of Iligan, Gingoog, Fully
Malaybalay , Valencia,Misamis Oriental, Implemented
Ozamiz
Deficiencies in the Implementation of the Payroll System
9. The DepEd Payroll System CAAR Enhance or upgrade the payroll system to Fully
allowing the “Queuing” of loan 2015 consider the provision of Section 48 of the Implemented
deductions or the “First In – First Page General Provisions of FY 2015 GAA and
Served” system in the employees’ 194- the yearly GAA thereafter which provides
payroll slips impaired the 205 the order of priority of authorized
prioritization of deductions deductions from payroll such as the
provided under Section 48 of the preference for contributions and loans due
General Provisions of RA No. to BIR, PhilHealth, GSIS and HDMF to
10651 (FY 2015 GAA) thereby avoid incurrence of penalty and
causing the piling up of surcharges which affect the benefits due
employees’ obligations due to the to teachers/employees upon their
Government Service and retirement/separation from the service,
Insurance System (GSIS), Home and the required minimum monthly net
Development Mutual Fund take home pay of P3,000.00.
(HDMF)/Pag-IBIG and Private
Lending Institutions (PLIs) which Disregard the classification of loan Partially
deprives the employees-borrowers deductions into two column deductions Implemented
of their benefits due upon (left side and right side deductions) in the
retirement since the amount Payroll System and adopt only one
equivalent of the outstanding loan, column area of all mandatory and other
inclusive of interest, penalties and authorized loan deductions in the Payroll
surcharges would be later System in consonance with the provision
collected/deducted from their of the GAA.
benefits.
Strengthen internal control system in the Partially
We recommended that the payroll processes through appropriate Implemented
Management enhance or review and approval by concerned
upgrade the payroll system to officials of SS/ES/IUs/DOs and RO of
consider the provision of Section payroll documents such as Form 7, DTRs,
48 of the General Provisions of Application for Leave; Payroll
FY 2015 GAA and the yearly Disbursement Reports, detailed Payrolls
GAA thereafter which provides and other supporting papers, and their

326
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
the order of priority of timely submission for updating of records
authorized deductions from and effecting actual service;
payroll such as the preference
for contributions and loans due Submit the duly reviewed Monthly Partially
to BIR, PhilHealth, GSIS and Payroll Worksheet and Report of Service Implemented
HDMF to avoid incurrence of (Form 7) in a timely manner so that
penalty and surcharges which retired/separated/ transferred teachers and
affect the benefits due to employees are deleted immediately from
teachers/employees upon their the payroll;
retirement/separation from the
service, and the required Cause intensive cleansing of the database, Partially
minimum monthly net take updating of personnel information on a Implemented
home pay of P3,000.00. regular basis through reconciliation of
records with that of the DOs/IUs/SS/ES,
Likewise, we recommended that comprehensive enhancement of the
Management disregard the payroll system by ascertaining security
classification of loan deductions features and access rights of users and
into two column deductions (left facility for review and approval of all
side and right side deductions) in transactions;
the Payroll System and adopt
only one column area of all Ensure that remittances to the GSIS and Partially
mandatory and other authorized HDMF for premiums and loans Implemented
loan deductions in the Payroll amortizations and the PLIs shall be
System in consonance with the supported with the monthly billing
provision of the GAA. statements and that the total amount
remitted should correspond to the total
In Regions II, VIII, X, XIII, the
amount billed;
unreliable RPSU database,
inadequate systems controls, and
Ensure that the Summary of Partially
inefficient processing of payrolls
Payroll/Disbursement Reports with Implemented
by the Secondary/Elementary
detailed payrolls indicating the
Schools, Implementing Units
employees’ names and corresponding
(IUs), DOs and the ROs resulted in
deductions be transmitted to the DOs/IUs
the overpayment in salaries/
with ample time for their review before
allowances/benefits of employees
transfer of payroll funds be made to the
no longer in service amounting to
RO;
P2,631,549.28, over remittances of
employees payroll deductions to
Embed in the payroll system adequate Partially
the GSIS amounting to
integrity constraints to prevent Implemented
P5,569,739.48, deleted/unverified
duplication of ID Numbers and retention
deductions from the monthly

327
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
salary teachers and employees for of old Personnel Information Profile to
loans amortizations to the GSIS, avoid retrieval of erroneous record during
HDMF and the PLIs totalling to payroll preparation; and
P8,542,029.10 and unsupported
monthly remittances to GSIS for Determine the total amount of Partially
premiums and loan repayments overpayment in salaries and cause refund Implemented
showing variance of thereof in coordination with the
P282,701,496.73. concerned DOs/IUs and the amount of
overpayment/over-remittance to the
We recommended that the GOCCs and PLIs for the offsetting in
Management undertake the future remittances.
following courses of action:
ROI :ROP
a. Regional Director to –
To make representation with the CO to Partially
 strengthen internal control study the payroll system in disregarding Implemented
system in the payroll the right side deduction to comply with
processes through DepEd Order No. 101, s. 2009.
appropriate review and
approval by concerned RO IX
officials of SS/ES/IUs/DOs In the exit conference conducted with Partially
and RO of payroll documents DepEd RO IX Management, the Chief of Implemented
such as Form 7, DTRs, the Budget and Finance Division
Application for Leave; commented that they have to confer and
Payroll Disbursement clarify first from DepEd CO regarding the
Reports, detailed Payrolls matter as the DepEd CO are the ones
and other supporting papers, identifying those deductions from the
and their timely submission salary payroll for the payment of loans to
for updating of records and PLIs.
effecting actual service;
RO XI :ROP
b. Schools Division Super- The Regional Director directed the Partially
intendents to – regional payroll unit to do manual Implemented
adjustments, especially for GSIS loan
 submit the duly reviewed renewals, in order to temporarily address
Monthly Payroll Worksheet the issue until a computer programmer,
and Report of Service (Form who can modify the system, will be
7) in a timely manner so that available.
retired/separated/transferred
teachers and employees are
deleted immediately from the
payroll;

328
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
c. RPSU to – RO II :ROP
The Management will make an Partially
 cause intensive cleansing of arrangement with GSIS on how to collect Implemented
the database, updating of or recover the over remittance. To avoid
personnel information on a or minimize also the incurrence of over
regular basis through remittance resulting from the inclusion in
reconciliation of records with the payroll of retired or separated
that of the DOs/IUs/SS/ES, personnel, the RO will remind all SDO’s
comprehensive enhancement to submit in advance the list of personnel
of the payroll system by expected to retire within the next 3
ascertaining security features months and the timely submission of
and access rights of users and Form 7.
facility for review and
approval of all transactions; RO VIII :DO Calbayog Fully
Implemented
 ensure that remittances to the DO Samar
GSIS and HDMF for The Administrative Officer and HRMO Partially
premiums and loans will have to verify the records of those Implemented
amortizations and the PLIs retired/separated employees who have
shall be supported with the received salaries despite their separation
monthly billing statements from the DO.
and that the total amount
remitted should correspond RO XIII
to the total amount billed; Issued a Memorandum addressed to the Partially
field directing the recoupment of the Implemented
 ensure that the Summary of
salaries, benefits, premiums paid of
Payroll/Disbursement
retired, transferred and/or separated
Reports with detailed
teachers and directing the field to send
payrolls indicating the
demand letters to the concerned teachers,
employees’ names and
requiring them to refund the salaries and
corresponding deductions be
benefits they received which they are no
transmitted to the DOs/IUs
longer entitled to.
with ample time for their
review before transfer of
RO X Partially
payroll funds be made to the
Implemented
RO;

 embed in the payroll system


adequate integrity
constraints to prevent
duplication of ID Numbers

329
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
and retention of old
Personnel Information
Profile to avoid retrieval of
erroneous record during
payroll preparation; and

 determine the total amount of


overpayment in salaries and
cause refund thereof in
coordination with the
concerned DOs/IUs and the
amount of overpayment/over-
remittance to the GOCCs and
PLIs for the offsetting in
future remittances.
FINANCIAL AND COMPLIANCE
Delayed deposit of collections
10. Non-adherence to the laws, CAAR Partially
rules and regulations regarding 2015 Implemented
recording, handling and deposits Page CO
of collections resulted not only to 205- The Management is seeking six months Partially
either unaccounted or unremitted 207 extension for two bank accounts to be Implemented
of the same totaling retained for collections from donor
P28,898,758.45 but likewise partners.
exposed government funds to
misappropriation and losses. RO II Partially
San Agustin NHS Implemented
We recommended that
Management require concerned RO VI :DO-Iloilo
officials to strictly adhere to the Efforts were exerted by other Accounting Not
laws, rules and regulations on staffs to identify the person/s accountable. Implemented
the handling, recording and
utilization of collections,
pursuant to Sections 63 and 69 of
PD No. 1445, Section 21, Volume
I of the NGAS Manual and
Sections 5 and 6 of the General
Provisions of the GAA for FY
2014.

330
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Unauthorized maintenance of Cash in Bank, Local Currency Current Account (LCCA) Account
11. Various collections received CAAR Adhere strictly to the General Provisions Partially
which aggregated to 2015 of the 2015 GAA and deposit with the Implemented
P1,585,876,650.65 as of year-end Page National Treasury all receipts covered
were maintained as trust account in 207- under Section 2 of COA Circular Letter
authorized government depository 212 No. 2004-004 dated October 5, 2004
banks (AGDB) contrary to following the procedures prescribed
pertinent provisions of FY 2015 under COA-DBM-DOF Joint Circular
GAA and other applicable rules (JC) No. 1-97 dated January 2, 1997 and
and regulations on the matter. DepEd-DBM JC No. 2004-01;
Furthermore, lapsed Notice of
Cash Allocations (NCAs) were Require the FMS to determine the actual Partially
transferred to the same trust balances of collections from various Implemented
account in violation of Section 3.1 sources and unutilized lapsed NCAs for
of DBM CL No. 2011-15 dated Centrally Managed Projects (CMPs)/
December 26, 2011. These regular programs which were deposited in
practices limit the utilization of the Local Currency Current Account
scarce government resources and (LCCA) account and remit the same to the
expose them to possible National Treasury; and
misappropriation.
Ensure maximum utilization of issued Partially
We recommended that the monthly NCAs to avoid lapsing and Implemented
Management of concerned refrain from depositing the unutilized
offices: balances to the trust account maintained
with the AGDB.
 adhere strictly to the General
Provisions of the 2015 GAA RO X :DO-Gingoog City Fully
and deposit with the National 1. Stop the practice of transferring NCAs Implemented
Treasury all receipts covered from MDS to local accounts.
under Section 2 of COA 2. Revert to National Treasury all
Circular Letter No. 2004-004 unutilized NCAs for the quarter.
dated October 5, 2004 3. Adhere strictly to the provisions of
following the procedures DepEd-DBM Joint Circular No. 2001-
prescribed under COA-DBM- 001 dated January 1, 2004 & Section
DOF Joint Circular (JC) No. 6.0 of DBM Circcular Letter No. 2013-
1-97 dated January 2, 1997and 12 dated November 21, 2013.
DepEd-DBM JC No. 2004-01;
DO-Gingoog City
 require the FMS to determine Fully
1. Instruct the Accountant & Budget
the actual balances of Implemented
Officer to maximize the use of NCA
collections from various releases.

331
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
sources and unutilized lapsed 2. Remind the claimants of the proper
NCAs for CMPs/regular supporting documents to every claim to
programs which were facilitate fast processing of transactions
deposited in the LCCA /disbursements before the cut-off date.
account and remit the same to
the National Treasury; and RO XII :DO Cotabato Province Partially
Follow up the processing of transfer of Implemented
 ensure maximum utilization of ATM account at the RPSU to close LBP
issued monthly NCAs to avoid accounts.
lapsing and refrain from
depositing the unutilized CAR :DO-Ifugao Fully
balances to the trust account Remitted to the National Treasury the Implemented
maintained with the AGDB. amount of P433,674.67

DO-Benguet and 11 schools Not


The schools used the unutilized DICP Implemented
funds as maintaining balance for their
current accounts

RO II :DO Nueva Vizcaya Fully


Remitted the amount of P3,558,451.29 to Implemented
National Treasury. While the amount of
P1,303,920.30 were paid to suppliers

DO Isabela Partially
Implemented
NCR
Remittance to BTr Partially
OFFICE/DO -DATE AMOUNT Implemented
ROP- 3/1/16 44,590,607.82
QC-2015 2,477,198.35
MUNTINLUPA -2015 1,300,069.68
Pasig- 6/15/16 2,338,920.93
Partially
RO IV-B Implemented
RO V Partially
DO Albay Implemented

332
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Non-preparation/delayed submission of Bank Reconciliation Statement
12. The non-completion/ CAAR Strictly comply with the provisions on Partially
preparation and delayed 2015 record keeping and reconciliation of Implemented
submission of the monthly Bank Page accounts as required under Section 74 of
Reconciliation Statement (BRS) as 212- PD No. 1445 and Section 12, Volume II of
required under Section 74, PD No. 219 the NGAS Manual;
1445 and COA Circular No. 96-
001 resulted to the difficulty of Enroll in an online banking services Partially
ascertaining the accuracy and where bank statement information can Implemented
reliability of the Cash in Bank – readily be obtained at any time and
Local Currency, Current Account facilitate the timely preparation of the
amounting to P1,890,564,945.49 BRS;
and Treasury/ Agency Cash
Accounts of P23,612,312.96 as of Cause the timely preparation of monthly Partially
December 31, 2015. Bank Reconciliation Statements so that Implemented
errors/omissions and/or reconciling items
We recommended that the would be immediately detected for
Management: correction and adjustment in the books of
accounts, thus, ensuring the accuracy and
 strictly comply with the reliability of the Cash in Bank-LCCA
provisions on record keeping Cash account balances in the agency’s
and reconciliation of accounts financial statements.
as required under Section 74 of
PD No. 1445 and Section 12, CO:
Volume II of the NGAS The discrepancy pertains to prior years’ Partially
Manual; transactions which remained unaccounted Implemented
 enroll in an online banking in the absence of documents. Adjustments
services where bank statement were prepared to correct the balance of
information can readily be CO Trust LCCA 0672-1000-20.
obtained at any time and
facilitate the timely RO II
preparation of the BRS; ROP/ DO Cagayan Tuguegarao City Fully
Submitted the December 2015 BRS for Implemented
 cause the timely preparation of Trust Fund
monthly Bank Reconciliation
Statements so that errors/ DO Nueva Vizcaya
omissions and/or reconciling The Accountant commented that they Fully
items would be immediately have already updated its BRS and will Implemented
detected for correction and accordingly reflect the necessary
adjustment in the books of adjustments.

333
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
accounts, thus, ensuring the DOs Batanes and Isabela Partially
accuracy and reliability of the Implemented
Cash in Bank-LCCA Agency RO III
Cash account balances in the Balanga City; Angeles City; San Jose Del Fully
agency’s financial statements. Monte Implemented
Prepared updated monthly bank
reconciliation statements

ROP ;Mabalacat City; DOs of Pampanga Partially


Implemented

City of San Fernando Not


Implemented

Region V Fully
DO-Legaspi City Implemented

Region VII
DO Cebu City; DO-Tagbilaran City Fully
Communicate with the bank as to the late Implemented
delivery of bank statements thereby
delaying also the preparation of bank
reconciliation statements and submit to
COA a written explanation for the delay

Region XII
DO Sultan Kudarat Partially
DO Koronadal City Implemented
Enroll the Account to LBP “we access” so
that bank balance can be check anytime

DO Cotabato
To process enrollment on EMDS. Partially
Implemented
DO Kidapawan City
Submission of BRS Fully
Implemented
Region XII
Fully implemented by Division of Surigao Partially
del Sur and partially implemented by Implemented
Division of Bislig City.
NCR

334
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Management submitted the BRS for CY Partially
2016 for all bank accounts of the Deped- Implemented
NCR ROP, NEAP, EPIP and SHERE

RO IV-A Partially
D.O Batangas Implemented

D.O Lipa Fully


Implemented

RO VI Partially
ROP, DO Aklan Implemented

DO Antique Fully
Implemented
RO VIII :DO Leyte
Absence of records prevented Partially
reconciliation as beginning balances Implemented
cannot be established
Unliquidated Cash Advances
13. The laws, rules and CAAR Demand from all officers and employees Fully
regulations in the granting, 2015 with outstanding balances to liquidate/ Implemented
utilization and liquidation of cash Page settle immediately their cash advances
advances required under Section 219- and/or refund all unexpended balances
89 of PD No. 1445, COA Circular 230 pursuant to COA Circular Nos. 97-002
Nos. 97-002 and 2012-004 dated and 2012-004, otherwise cause the
February 10, 1997 and November suspension of salaries of erring
28, 2012, respectively, as well as accountable officers;
DepEd Order No. 12 s. 2014 dated
March 6, 2014 on downloading of Initiate the undertaking of the legal Fully
MOOE to schools, were not remedies provided for under COA Implemented
strictly observed at the CO and 14 Circular No. 2012-004 and request for the
regions resulting in unliquidated write off of the accountabilities of
cash advances granted to officers deceased AOs; and
and employees and school heads
totaling P2,430,150,739.07 in over All concerned officers and employees Partially
one to more than three years in the strictly comply with Section 89 of PD No. Implemented
financial statements as of 1445 and COA Circular No. 97-002 and
December 31, 2015. 2012-004 on the granting, utilization and
liquidation of cash advances.

335
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that the CO
Management: Unliquidated cash advances as of Partially
December 31, 2015 have been reduced by Implemented
 demand from all officers and P19,514,341.31 or 21.28 percent of which
employees with outstanding cash advances to special disbursing
balances to liquidate/settle officers were reduced by P18,071646.46
immediately their cash or 38.72 percent as of March 31, 2016.
advances and/or refund all Demand letters to all accountable officers
unexpended balances pursuant to officially inform them on their
to COA Circular Nos. 97-002 outstanding balances for a given period
and 2012-004, otherwise cause are being issued quarterly.
the suspension of salaries of
erring accountable officers; NCR
ROP, DOs of Quezon City, Tapat, Partially
 initiate the undertaking of the Muntinlupa Implemented
legal remedies provided for DO Makati Fully
under COA Circular No. 2012- Implemented
004 and request for the write Region I
off of the accountabilities of The percentage of liquidation as of June Partially
deceased AOs; and 30, 2016 is 84.64 percent. Implemented

 henceforth, all concerned Region II Partially


officers and employees strictly ROP, DOs of Tuguegarao, Nueva Implemented
comply with Section 89 of PD Vizcaya, Batanes, and Isabela
No. 1445 and COA Circular Catch-up plan were prepared to liquidate
Nos. 97-002 and 2012-004 on before Quarter CY 2016 ends
the granting, utilization and
Region III
liquidation of cash advances.
ROP Partially
The percentage of liquidation as of June Implemented
30, 2016 is 92.19 percent.

Region IV-A
DO Batangas
Some school settled said cash advances Partially
and reconciliation was made with Implemented
Accounting records.

DO Cavite Fully
Implemented

336
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region IV-B Partially
DOs-Palawan, and Occidental Mindoro Implemented
Imposition of clear cut policies of
granting cash advances only to those who
have properly liquidated their CAs.
Not
DO-Romblon Implemented

Region XIII Fully


Division of Agusan del Sur; Division of implemented
Surigao del Sur
Prepared necessary adjusting journal
entries
Partially
Surigao del Norte Implemented
Conducted seminar regarding the proper
recording and journalizing of accounting
transactions

RO V Partially
DOs of Albay, Ligao City, Legazpi City, Implemented
Camarines Sur, Iriga City. Masbate City
In Camarines Sur out of unliquidated cash
advances of P429,066,175.36 for CYs
2008-2015, P222,681,806.01 or 52
percent was already settled as of year-end.

RO VI Fully
DO Antique Implemented
Collected the unexpended balances and
return the amount to the National
Treasury.
Partially
DO Iloilo Implemented

RO X Partially
DOs of Iligan, Valencia, Cagayan de Oro, Implemented
Misamis Oriental
Issue Demand Letters
Fully
ROP, DO Gingoog Implemented

337
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
ROXI Partially
COMVAL Division Implemented
Accumulation of unliquidated fund transfers to DBM-PS
14. Deficiencies noted in the CAAR Property Officer to make representation Fully
previous years’ audit for the 2015 with the DBM-PS on the status of the Implemented
account Due from National Page procured items with them; and
Government Agencies-DBM-PS 230-
in DepEd-CO were not yet 235 Property Officer to apply its current Fully
corrected which renders the requirements from the outstanding Implemented
account balance totaling balances with the PS-DBM and/or
P4,897,365,764 as of December demand the refund of prepayments, and
31, 2015 doubtful and unreliable remit the same to the National Treasury.
because of the still unreconciled
Property Officer and the Accountant to Partially
discrepancy of P3,559,427,110
exert efforts to reconcile the advances Implemented
between the PS-DBM book
made to PS-DBM and make necessary
balance of P1,337,938,654 and
adjustments in the DepEd-CO’s book
accumulation of long outstanding
balances;
balance of P4,751,419,521 or 97
percent aging over one to more CO
than ten years. The outstanding For current year transactions, DBM Partially
balance still includes the advance agreed that previous year’s outstanding Implemented
payment for IT packages worth balances be applied to current year
P2,076,399,780 verified delivered requirements to avoid accumulation of
to recipient schools by PS-DBM balances.
but not yet recorded in the DepEd
accounting records.

We recommended that
Management require the:

 Property Officer and the


Accountant to exert efforts to
reconcile the advances made to
PS-DBM and make necessary
adjustments in the DepEd-
CO’s book balances;

 Property Officer to make


representation with the DBM-
PS on the status of the

338
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
procured items with them;
and

 Property Officer to apply its


current requirements from the
outstanding balances with the
PS-DBM and/or demand the
refund of prepayments, and
remit the same to the National
Treasury.
Unliquidated balances of Due from National Government Agencies/Local Government Units/Non-
Governmental Organizations/Private Organizations
15. The continuous practice of CAAR Send demand letters and/or coordinate Partially
DepEd-CO for non-monitoring of 2015 with the project implementers to cause the Implemented
the submission of the Liquidation Page submission of liquidation reports/report
Reports/Report of Disbursements 235- of disbursements on transferred funds for
of the project accomplishments 246 completed programs/projects for proper
and utilization of transferred funds recording;
within the prescribed period as
required under COA Circular No. Prepare the necessary adjusting journal Fully
94-013 dated December 13, 1994 entries on submitted liquidation reports, Implemented
and COA Circular No. 2007-001 verified errors in recording to correct the
dated October 25, 2007, resulted in balance of the affected accounts;
the accumulation of the
Request authority from COA to write-off
unliquidated balances which aged Partially
the dormant accounts following the
over one year to over 10 years of Implemented
guidelines provided under COA Circular
the accounts Due from National
No. 97-001. However, this can be done
Government Agencies/Local
after Management had shown that
Government Units/Non-
exhaustive efforts had been made to
Governmental Organizations/
collect/settle the outstanding accounts;
Private Organizations (NGAs/
and
LGUs/NGOs/POs) with an
aggregate amount of Monitor the liquidation and reporting
P257,513,846.00. Further, requirements of funds transferred to Partially
erroneous accounting treatment for NGAs/LGUs/NGOs/POs/ROs pursuant Implemented
some of the transfers overstated to COA Circular Nos. 94-013 and 2007-
the account Due from Regional 001, and observe compliance on proper
Office (ROs) and the Accumulated releasing of fund allocation to ROs/SBs as
Surplus/(Deficit) by prescribed under GAFMIS Circular Letter
P1,766,949,121.00. No. 2003-004.

339
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that CO
Management: Management commented that
deficiencies in the recording of
 send demand letters and/or transactions were already adjusted in
coordinate with the project February 2016 through Journal Entry
implementers to cause the Vouchers (JEV). Likewise,
submission of liquidation communication was sent to TESDA on
reports/report of disburse- April 26, 2016 requesting submission of
ments on transferred funds for liquidation documents.
completed programs/projects
for proper recording;

 prepare the necessary


adjusting journal entries on
submitted liquidation reports,
verified errors in recording to
correct the balance of the
affected accounts;

 request authority from COA


to write-off the dormant
accounts following the guide-
lines provided under COA
Circular No. 97-001. However,
this can be done after
Management had shown that
exhaustive efforts had been
made to collect/settle the
outstanding accounts; and

 henceforth, monitor the


liquidation and reporting
requirements of funds trans-
ferred to NGAs/LGUs/NGOs/
POs/ROs pursuant to COA
Circular Nos. 94-013 and
2007-001, and observe
compliance on proper
releasing of fund allocation to
ROs/SBs as prescribed under

340
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
GAFMIS Circular Letter No.
2003-004.
Unreconciled reciprocal accounts
16. The reciprocal accounts Due CAAR Conduct a regular periodic quarterly Partially
from/to RO/OU in the CO Books 2015 reconciliation of reciprocal accounts to Implemented
and Due to/from CO in the RO Page immediately correct any discrepancies
Books showed unreconciled 246- noted;
balances totaling 248
P2,502,820,584.25 while Due Draw a JEV to correct the balances of Partially
from/to OUs in the RO Books and accounts affected after reconciliation and Implemented
Due to/from ROs in the OU Books provide their counterparts with copy of
also have unreconciled balances JEVs for proper recognition of the
totaling P1,775,945,596.12, corresponding entries involving intra-
casting doubts on the reliability of agency receivables and payables; and
the account balances in the
financial statements. Coordinate with all Regions/Division/ Partially
School Accountants/Bookkeepers for the Implemented
We recommended that the immediate/quarterly reconciliation of
Management require DepEd reciprocal accounts to present accurate
Accountants to: and reliable balances of accounts.
 conduct a regular periodic
quarterly reconciliation of
reciprocal accounts to
immediately correct any
discrepancies noted;

 draw a JEV to correct the


balances of accounts affected
after reconciliation and provide
their counterparts with copy of
JEVs for proper recognition of
the corresponding entries
involving intra-agency
receivables and payables; and

 coordinate with all Regions/


Division/School Accountants/
Bookkeepers for the
immediate/quarterly recon-

341
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
ciliation of reciprocal accounts
to present accurate and reliable
balances of accounts.
Inventory accounts
17. The validity, accuracy, and CAAR Supply Officer to submit the RPCI Partially
existence of the Inventory 2015 pursuant to Section 65 of the Manual on Implemented
Accounts are doubtful due to Page NGAS and coordinate with the
absence of inventory reports and 248- Accounting Section for the reconciliation
records on inventories totaling 251 of the said account and submit the same to
P223,478,289.33 reported in eight the Audit Team within the prescribed
regions, existence of dormant period;
inventory account balances of
P57,855,676.00 in three regions, Property Officers concerned to submit Partially
unreconciled discrepancies of regularly the RSMI which is the basis of Implemented
P51,377,874.44 between the Accounting Unit in recording the
accounting and property records in supplies expenses for the period. Maintain
two regions, and direct charging to stock cards and update them periodically
expense of inventory purchases of to solve or minimize the perennial
P5,893,956.89 in three regions. problem of unreconciled Accounting and
Property records;
We recommended that
Management require the: Accountant/Bookkeeper to record the Partially
purchases of supplies and materials as Implemented
 Supply Officer to submit the inventories upon acquisition and the
RPCI pursuant to Section 65 of related expense accounts upon issuance of
the Manual on NGAS and inventories based on the RSMI in
coordinate with the Accounting accordance with Section 43 of the NGAS
Section for the reconciliation of Manual and COA Circular No. 2005-002
the said account and submit the and draw a JEV to adjust the affected
same to the Audit Team within accounts; and
the prescribed period;
Direct the Accountant and the Supply Partially
 Property Officers concerned Officer to monitor and reconcile their Implemented
to submit regularly the RSMI records and make the necessary
which is the basis of the adjustments on the discrepancies noted to
Accounting Unit in recording reflect the true balances of the Inventory
the supplies expenses for the accounts in the financial statements.
period. Maintain stock cards
and update them periodically

342
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
to solve or minimize the Region II Partially
perennial problem of DO-Isabela and DO-Nueva Vizcaya Implemented
unreconciled Accounting and
Property records; Region V
DO-Iriga Partially
 Accountant/Bookkeeper to No available record for CY 2011 Implemented
record the purchases of inventories and beyond which consist
supplies and materials as most of the amount reflected in the
inventories upon acquisition financial statement.
and the related expense Region VIII
accounts upon issuance of Partially
Management will conduct Physical
inventories based on the RSMI Implemented
Inventory of PPE and Supplies &
in accordance with Section 43 Materials to facilitate reconciliation of
of the NGAS Manual and COA records between Accounting and Supply
Circular No. 2005-002 and Units
draw a JEV to adjust the
affected accounts; and Region XIII
Fully implemented by DO of Bislig City Partially
 direct the Accountant and the and partially implemented by DO of Implemented
Supply Officer to monitor and Surigao del Sur.
reconcile their records and
make the necessary CAR
adjustments on the Management prioritized the conduct and Partially
discrepancies noted to reflect submission of physical count of Implemented
the true balances of the inventories.
Inventory accounts in the
financial statements. Lack of personnel to closely monitor and
implement the recommendation.

RO III
Partially
Fully implemented by DO Angeles City;
Implemented
Zambales; San Jose City and partially
implemented by ROP; DO Mabalacat
City; Cabanatuan City; Balanga City and
not implemented in DO Pampanga; City
of San Fernando

On-going reconciliation between actual


physical count and general ledger amount.

343
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
RO IV-A Fully
DOs of Tanauan, Batangas City Implemented

RO IV-B Fully
DO-Occidental Mindoro Implemented

RO and DOs – Oriental Mindoro, Partially


Calapan City, PPC and Romblon Implemented
Reconciliation and completion of the
required records are still on-going

RO XI Partially
DO Davao City Implemented
On-going Reconciliation and Recurring
Observation.
Fully
DO Davao del Norte Implemented
Textbooks and Instructional Materials Inventory Account
18. The validity, accuracy and CAAR Monitor the submission of duly Partially
existence of the reported balance 2015 acknowledged Delivery Receipts and Implemented
of Textbooks and Instructional Page Invoice Receipt of Property by the
Materials Inventory totaling 251- recipient schools for proper recording in
P14,620,330.77 cannot be 252 the books of accounts in the respective
ascertained due to existence of DepEd offices; and
non-moving/dormant inventory
account, non-maintenance of Direct the Accountants and Supply Partially
accounting and inventory reports Officers to regularly reconcile their Implemented
and non-recording of issuances. records and to maintain an updated and
complete Supplies Ledger Cards and
We recommended that the Stock Cards as prescribed in the NGAS
Management of concerned DOs: Manual to facilitate reconciliation and
adjustment of discrepancies.
 monitor the submission of duly
acknowledged Delivery CO
Receipts and Invoice Receipt The Management of DepEd CO included
of Property by the recipient in its response that the Accounting and
schools for proper recording in Property Divisions will schedule a
the books of accounts in the reconciliation of the textbooks inventory
respectuve DepEd offices; and accounts. Also, the Property Division is
on its implementation of Asset

344
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
 direct the Accountants and Management System (AMS) therefore all
Supply Officers to regularly current transactions are now recorded thru
reconcile their records and to the AMS, while for the prior years, the
maintain an updated and validated transactions from 2009 to 2006
complete Supplies Ledger are being encoded.
Cards and Stock Cards as
prescribed in the NGAS CAR
Manual to facilitate A copy of the lists of books donated and Fully
reconciliation and adjustment given to various schools was provided by Implemented
of discrepancies. the library. Corresponding JEV was
prepared as of Sept 30, 2016 for the
recording of these books.

RO X Fully
DO Gingoog Implemented

DO Iligan
The Agency already started to trace some Partially
of the unaccounted Textbooks and Implemented
Instructional Materials which are
assigned to schools but were not reported
to our accounting office.

A memorandum shall be issued to the


field to remind schools of proper
reporting.

RO XI Fully
DO-Davao del Norte Implemented
Deficiencies affecting the accuracy and existence of PPE accounts
19. The deficiencies in the CAAR Inventory Committee to conduct annual Partially
Management of PPE accounts are 2015 physical inventory of the PPE accounts Implemented
noted as: (a) absence of RPCPPE, Page and to prepare the RPCPPE to be
property cards, PPELC for PPEs 253- submitted to the Accounting Unit for
totaling P37,752,064,404.13; (b) 263 reconciliation with the PPE subsidiary
reporting difference between ledgers and general ledger accounts;
inventory report and the books of
account of P21,086,267,660.56; Property Officer and the Accountant to: Partially
(c) misclassification of accounts in a) update property cards and property/ Implemented
total amount of equipment subsidiary ledgers,
P1,549,625,768.54; and (d) respectively; b) regularly monitor and

345
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
erroneous recording/non- reconcile their records; and c) make the
recording resulting to net necessary adjustments on the
understatement of discrepancies noted;
P109,351,910.67. These rendered
the accuracy and existence of the Accountant to prepare necessary Partially
reported balance of PPE accounts adjusting entries for unrecorded, Implemented
totaling P139,232,586,625.90 in misclassified and erroneous recording of
the DepEd consolidated financial PPE accounts as well as the yearly
statements as of December 31, provision of depreciation to reflect a more
2015 unreliable. reliable reporting of the balance of PPE
accounts in the financial statements; and
We recommended that
Management of concerned Accountant in coordination with the Partially
Offices/Schools strictly require Property Division to be primarily Implemented
the: responsible for the determination of
amounts to be recognized on acquisitions
 Inventory Committee to of assets particularly on acquisitions
conduct annual physical through exchange and non-exchange
inventory of the PPE accounts transactions.
and to prepare the RPCPPE to
be submitted to the Accounting a. Non-conduct of/Incomplete Physical
Unit for reconciliation with the Inventory/Absence of RPCPPE/Property
PPE subsidiary ledgers and Cards/PPELC
general ledger accounts;
Region II
 Property Officer and the ROP, DOs of Partially
Accountant to: a) update TuguegaraoCity, Cagayan, Quirino, Implemented
property cards and property/ Batanes, Cauayan City, Santiago City and
equipment subsidiary ledgers, Isabela
respectively; b) regularly On-going inventory.
monitor and reconcile their
records; and c) make the DO of Ilagan Fully
necessary adjustments on the Implemented
discrepancies noted; Region III
RO Proper; Mabalacat City; City of San Partially
Fernando; Pampanga; Gapan City;DO- Implemented
 Accountant to prepare
Aurora
necessary adjusting entries for
An Inventory Team was already created.
unrecorded, misclassified and
Actual physical count of PPE in the DO
erroneous recording of PPE
was completed
accounts as well as the yearly

346
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
provision of depreciation to Region IV-A
reflect a more reliable DOs of Calamba City;Sta. Rosa City; San Partially
reporting of the balance of PPE Pablo; Tanauan; Rizal;Antipolo Implemented
accounts in the financial The Accountant and the Supply Officer
statements; and adhered with the provisions of the NGAs
Manual in the recording, monitoring and
 Accountant in coordination disposition of inventories.
with the Property Division to be
primarily responsible for the DOs of Batangas; Cavite; Quezon Not
determination of amounts to be Inspection Report of Unserviceable Implemented
recognized on acquisitions of Property was not submitted.
assets particularly on
acquisitions through exchange Region V
and non-exchange transactions. DO-Ligao Fully
Created a committee on the conduct of Implemented
Actual Physical Count of Property, Plant
and Equipment and submitted the said
report to the concerned agencies specially
to the Commission on Audit.

DO-Iriga Partially
Implemented
Region XI
DO-Davao del Norte and IUs; DO- Fully
Panabo City and IUs; Davao del Sur and Implemented
IUs; Digos City and IUs
Reconstruction of inventory of all PPE
accounts and validation of all records due
to retirees and unaccounted equipment
were conducted.

Region XII
DO-Sultan Kudarat
Partially
The office immediately gathered the
Implemented
submitted report on the Physical Count of
Property Plant & Equipment (RPCPPE)
for consolidation.

Implementing units (IUs) were notified


through an official communication.

347
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
DO-Koronadal; DO-South Cotabato; Partially
DO-Cotabato; DO-Tacurong Implemented
Management instructed the Supply
Officer, with the Division Inventory
team, to round up all schools and provide
assistance where necessary, in
accomplishing the inventory report
forms.

DO-Kidapawan Fully
Implemented
NCR
DO-Quezon City Not
Balances still remained unreconciled Implemented

DO-Marikina
All equipment already have Partially
corresponding PPELC except Implemented
unreconciled discrepancy between SL
and GL of School Buildings.,

RO VIII
DO-Biliran Supply office will conduct Partially
physical inventory of PPE and reconcile Implemented
it with accounting unit.

RO X
DO Lanao del Norte, Misamis Partially
Occidental, Iligan City Implemented
Management partially maintained
subsidiary ledgers and property cards

Also, a partial inventory report was


submitted
Not
DO-Oroquieta City
Implemented
b. Reporting difference between Property
and Accounting Records

CO
Several new accounting policies and Partially
procedures on the recognition and Implemented

348
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
measurements of PPE items as prescribed
in the Government Accounting Manual
were observed starting January 2016.

Region II

ROP
Fully
To date, the transfer of School Building
Implemented
was already effected as per Memorandum
dated May 6, 2016 and JEV No.02016-03-
0094 dated March 31, 2016.

DO Batanes
Accounting Section reconstructs ledgers Partially
for PPE and Supplies to reconcile with Implemented
the Supply Records.

DO-Quirino
Started reconciliation process between Partially
Supply and Accounting Office Implemented

Region X
DO Gingoog Partially
On-going verification of Memorandum Implemented
Receipts on file

ROP
Partially
Ongoing adjustments in the books for
Implemented
PPE accounts

Region VIII
DO Leyte Not
Absence of records for reconciliation Implemented

DO Tacloban Partially
Lack of accounting personnel Implemented

CAR Partially
Implemented

349
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
c. Misclassification of accounts

Region V
DO-Masbate City Fully
Adjusting entries were already made to Implemented
transfer the amount on Construction in
Progress to School Building Account with
JEV#533 dated March 31, 2016 in the
amount of P18,195,326.02 and JEV No.
2016-06-001082 dated June 30, 2016 in
the amount of P2,167,496.92.

Region VIII
DO-Tacloban City
Prepared working paper to properly trace
the Construction in Progress account and
Fully
to justify any reclassification or adjusting
Implemented
entries made.

CAR
prepared the necessary adjusting entry Fully
under Journal Entry Voucher No. JEV- Implemented
2016-03-000323 dated March 22, 2016

RO VI Not
Implemented
d. Error in recording/non-recording

RO V
DO Iriga City Not
No reliable records/ documents Implemented

ROXI Fully
Panabo City Implemented

Davao del Norte


Management failed to process all land Partially
titles of schools under the Division Office Implemented
and there was no re-assessment made to
record its latest market value in CY 2016.

350
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Uninsured Government Properties with the General Insurance Fund of the GSIS
20. School buildings and other CAAR Submit inventory reports of all insurable Partially
school properties in eight regions 2015 properties to GSIS and ensure that all Implemented
with total book value of Page insurable assets and properties are
P4,383,307,823.39 were not 263- adequately covered/insured with the GIF
insured with the General Insurance 266 of the GSIS to protect government
Fund (GIF) of the GSIS despite the properties in the event of serious loss such
mandatory requirement to insure as fire earthquake, typhoon and/or flood;
all government properties with the and
GIF pursuant to Administrative
Order No. 33 dated August 25, Provide a budget for the insurance of all Partially
1987 and COA Circular No. 92- their insurable properties pursuant to the Implemented
390 dated November 11, 1992 provisions of RA No. 656 to protect the
thus, exposing these properties to interest of the government and to be
risk of not being indemnified for indemnified for any damage or loss that
any damage or loss due to any may arise.
fortuitous events such as fire,
earthquake, typhoon and/or flood. Region II
DO-Tuguegarao, Batanes and Isabela Partially
We recommended that the The Management is in the process of Implemented
Management: collecting documentary requirements
necessary to comply with GSIS property
 submit inventory reports of insurance.
all insurable properties to
GSIS and ensure that all The management cannot include yet the
insurable assets and amount for payment of insurance
properties are adequately premium in the budget proposal because
covered/insured with the GIF the Property Management Section is still
of the GSIS to protect in the process of collecting data and
government properties in the cannot recognized yet the total amount to
event of serious loss such as be insured.
fire earthquake, typhoon
and/or flood; and Region V Not
DOs of Ligao City, Legazpi City, Tabaco Implemented
 provide a budget for the City:
insurance of all their
insurable properties pursuant DO Iriga City Fully
to the provisions of RA No. Implemented
656 to protect the interest of
the government and to be

351
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
indemnified for any damage Region VIII Not
or loss that may arise. RO, Borongan DO, Samar DO and Samar Implemented
National High School

DO-Tacloban City Partially


Prepare and submitted the updated Implemented
inventory list of all insurable properties to
GSIS for insurance coverage.

DO-Leyte
Elevate the issue to the DepEd for Not
possible inclusion in the succeeding years Implemented
budget the provision for the insurance of
SDO-owned PPEs

Region X
DO-Gingoog City Partially
The DO is still in the process of assessing Implemented
the value of the property to be insured
with the General Insurance Fund of the
GSIS. They have also instructed the
Budget Officer to include the budgetary
requirements of insurance premium in the
regular appropriation of MOOE to be
submitted to the DepEd RO for approval.

On-going processing of insurance


application to GSIS.

Region XI
DO Panabo City, Davao del Norte Partially
The Management inquired the process of Implemented
building insurance to the GSIS Office for
the application of building insurance.

On-going processing of insurance


application to GSIS and pending fund
allocation.

352
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region III
DO Aurora; DO Bataan Not
No action was taken by the Management. Implemented

No funds available for the payment of


premiums

San Jose City; Science City of Muñoz Partially


Requested for application of insurance to Implemented
GSIS

Region IV-A
DO-Laguna Not
School buildings not yet insured as of end Implemented
of CY 2016
Doubtful validity of Liability Accounts
21. Validity and reliability of the CAAR Recognize liability at the actual time Partially
liability accounts cannot be 2015 goods/service/projects are delivered/ Implemented
ascertained due to recognition of: Page rendered/completed and accepted in
(a) undocumented payables in CO, 266- accordance with the Manual on NGAS
Regions III, V, VI, IX, XI and XII 271 and DBM Circular Letter No. 2014-6
amounting to P392,316,707.53; dated December 23, 2014;
(b) non-reversion of long out-
standing payables without existing Revert all outstanding balances without Partially
valid claims of P45,076,153.59 in valid claims and those which are more Implemented
CO, Regions II, III, and IV B; than two years without actual and valid
(c) misclassification of liability claimants in accordance with Section 98
accounts in net amount of of PD No. 1445; and
P74,816,534.03 in CO and Region
Perform account analysis and prepare the Partially
IV-B; and (d) errors in recording/
necessary adjusting entries to reflect the Implemented
posting of Accounts Payable
accurate balances of the affected accounts
resulting to net balance of liability
for fair presentation in the financial
accounts in CO amounting to
statements.
P961,174.99.
a. Undocumented liability accounts
We recommended that
Management: Region V
DO Legazpi City:
 recognize liability at the actual Management is amenable with the Fully
time goods/service/projects are suggested recommendation and promised Implemented
delivered/rendered/completed

353
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
and accepted in accordance to comply with the recommendations
with the Manual on NGAS and offered. Furthermore, they will
DBM Circular Letter No. implement controls on coordination
2014-6 dated December 23, between budget and accounting being one
2014; of the causes of deficiencies as pictured
out.
 revert all outstanding balances
without valid claims and those DO-Tabaco City
which are more than two years Management promised to comply with the Fully
without actual and valid laws, rules and regulations on recording Implemented
claimants in accordance with and recognizing payable accounts.
Section 98 of PD No. 1445; and
DO Camarines Norte:
 perform account analysis and Management submitted a Journal Entry Fully
prepare the necessary Voucher (JEV) showing the adjustment Implemented
adjusting entries to reflect the made in the books for the noted erroneous
accurate balances of the entries.
affected accounts for fair
presentation in the financial RO XI Fully
statements. Davao del Norte Implemented

b. Non-reversion of long outstanding


payable accounts without valid claims
CO
The oustanding payable for more than 2 Fully
years were already adjusted to Implemented
Accumulated Surplus/Deficit.

Region II Fully
DO Isabela Implemented

DO Batanes Partially
The Accounting Section confirmed the Implemented
transaction with Phil. Veterans Bank
(PVB). However, the statement that PVB
provided, cannot readily determine the
specific transaction which the
Management is looking for. Moreover, we
asked also the help from DepEd, RO PSU
Section if they can give us any details

354
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
regarding the said transaction but they
reasoned out that the files from their PC
were corrupted.

RO IV-B Fully
DO-Occidental Mindoro Implemented

c. Misclassification of liability accounts

CO
The retention fee amounting to Partially
P173,254.01 was already reclassified. Implemented

RO IV-B Fully
ROP Implemented

d. Errors in recording/posting of
Accounts Payable

CO
The supplier's debit balances amounting Fully
to P8,566,145.14 were already adjusted in Implemented
February 2016 and outstanding payable
for more than two years were already
adjusted to Accumulated Surplus/Deficit.
Unremitted Government Contributions
22. GSIS, Pag-IBIG and CAAR Concerned Offices to regularly and Partially
PhilHealth contribution/premium 2015 timely remit the employer and employees' Implemented
withheld from the salary, step Page monthly premium contribution to avoid
increment/salary differential of 271- incurring any interest or penalties due to
employees in Regions IV-B, VIII, 273 delayed/non-remittances, so that the
IX and X amounting to member-employees will fully enjoy the
P339,953,576.82 were not services offered by the GSIS, Pag-Ibig
remitted on time making the and Philhealth; and
concerned offices/schools liable to
penalties and endangering Official concerned responsible for late Partially
suspension of privileges and payments of GSIS/Pag-IBIG/ PhilHealth Implemented
benefits to be accorded to its premiums be made liable for any penalty
members. charges.

355
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that Region III
Management require the: Division of San Jose Del Monte City Partially
Management has instructed Principal Implemented
 concerned Offices to Eduardo V. Cruz that from here on,
regularly and timely remit the personnel accountable for late payment of
employer and employees’ compulsory premiums to GSIS must be
monthly premium required to pay for the penalty due to late
contribution to avoid remittance. Only in cases where the delay
incurring any interest or is due to fortuitous events where no one
penalties due to delayed/non- can be blamed shall the School shoulder
remittances, so that the such expenses.
member-employees will fully
enjoy the services offered by Region VIII
the GSIS, Pag-Ibig and ROP Fully
Philhealth; and Complied with all lacking supporting Implemented
documents.
 official concerned responsible Fully
Region IV-B
for late payments of Implemented
ROP
GSIS/Pag-IBIG/PhilHealth
premiums be made liable for DO-Oriental Mindoro and Calapan City
Partially
any penalty charges. The ownership of the land is still in the
Implemented
name of the donor and not in the school

DO-Romblon
Not
No budget allocation for the insurance of
Implemented
the properties
Various payments lacking proper documentation or wanting legality of expenditures
23. Various disbursements CAAR Comply with the prescribed guidelines/ Partially
totaling P630,018,209.87 included 2015 pertinent rules and regulations on the Implemented
payments of salary, RATA, Page payment of salaries and wages, other
monetization, traveling/training, 273- compensation, other personnel benefits,
and procurement which were found 286 traveling, training, communication,
either contravening to existing repairs, procurement of goods and
government laws, rules and services and other expenses; and
regulations or not supported with
adequate documentation, thus Require the concerned personnel and Partially
casting doubts on the validity and officials to submit the required pertinent Implemented
propriety of expenditures. documents to establish the propriety,
reasonableness and regularity of the
disbursements.

356
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that Region VIII
Management of concerned DO-Borongan; DO-Calbayog; DO-
Offices: Eastern Samar
Required those receiving RATA to submit Fully
 comply with the prescribed the necessary supporting documents and Implemented
guidelines/pertinent rules and adhere to rules and regulations on the
regulations on the payment of grant of RATA.
salaries and wages, other
compensation, other DO-Leyte; DO-Tacloban; Partially
personnel benefits, traveling, Concerned employees are required to pay Implemented
training, communication, the amount disallowed. Some have paid
repairs, procurement of goods in full. Others opted to pay on a monthly
and services and other basis through salary deduction.
expenses; and Fully
DO-Southern Leyte; DO-Northern Samar
Implemented
Submission of the lacking documents.
 require the concerned Disbursement transactions were already
personnel and officials to supported with disbursement vouchers
submit the required pertinent and/or payroll
documents to establish the
propriety, reasonableness and Region XI
regularity of the DO-Panabo
disbursements. Submitted the necessary documents for Fully
the grant of RATA. Implemented

Region I
DO-Ilocos Norte; DO-AlaminosCity; Fully
DO-La Union; DO-Dagupan City; DO- Implemented
Urdaneta City
Compliance to Section 22 of Omnibus
Rules on Leave, Rule XVI of Rules
Implementing Book V of Executive Order
No. 292.

Region II Partially
DO-Isabela Implemented
DO-Borongan
Fully
Management adhered to the
Implemented
recommendation of the Auditor and
proper observance will be applied.

357
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region XI
DO-Panabo
The concerned teachers were notified that Partially
there is an Audit Observation Implemented
Memorandum and followed by Notice of
Disallowance of the Proportional
Vacation Pay (PVP) FY 2014.

COMVAL, ROP Fully


Implemented
Region XIII
Fully
DO-Agusan del Sur; Butuan City
Implemented
DO-Surigao del Sur
Partially
Management will submit ORS and
Implemented
request for augmentation and will
implement “No Allotment No Obligation”
policy.

ROP
Partially
To incorporate the compensation paid to
Implemented
employees subject to tax.
Fully
NCR
Implemented
DOs of Quezon City, Malabon,
Valenzuela
Not
DO-Caloocan
Implemented
Non-submission/delayed submission of Financial Reports and documents
24. Several DepEd Offices and CAAR Strictly comply with the provisions of Partially
Schools were reported delayed or 2015 COA-DBM Joint Circular No. 2014-1 Implemented
failed to submit financial reports, Page dated July 2, 2014 on the submission of
records and other required 286- Financial Accountability Reports within
documents which is not in keeping 294 the prescribed deadlines;
with PD No. 1445, Manual on
NGAS, COA Circular No. 95-006 Instruct the respective Accountants in the Fully
and other applicable laws, rules region/division/NHS on the timely Implemented
and regulations. Moreover, some submission of Financial Statements and
of these offices also failed to other related reports required under COA

358
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
maintain or update their books of Circular No. 2015-002, pursuant to
accounts, financial records and paragraph 21 of PPSAS 1. Include all
registries precluding the timely relevant information in the Notes to
audit of affected agency Financial Statements. The economic
transactions. substance of the accounts as shown in the
Financial Statements should be
We recommended that the completely and appropriately disclosed
Management require the for proper interpretation and to provide
concerned offices/schools to: adequate information.

 strictly comply with the Instruct the responsible accounting Fully


provisions of COA-DBM personnel/disbursing officer/bookkeepers Implemented
Joint Circular No. 2014-1 to immediately submit all due financial
dated July 2, 2014 on the reports and documents to comply with the
submission of Financial provisions of Section 41.
Accountability Reports
within the prescribed If warranted, consider the withholding/ Partially
deadlines; suspension of payment of salaries of Implemented
officials and employees concerned, until
 instruct the respective they shall have complied with the
Accountants in the region/ requirements pursuant to Section 122 (2)
division/NHS on the timely of PD No. 1445.
submission of Financial
Statements and other related Region I
reports required under COA ROP; DO-Ilocos Sur and 9 NHS; DO- Fully
Circular No. 2015-002, Pangasinan II and 5 NHS; Implemented
pursuant to paragraph 21 of
PPSAS 1. Include all relevant Region II
information in the Notes to DOs of Tuguegarao City, Fully
Financial Statements. The Cauayan City and Santiago City Implemented
economic substance of the
accounts as shown in the DOs of Cagayan,
Financial Statements should Batanes, Ilagan and Partially
be completely and Isabela Implemented
appropriately disclosed for Some bookkeepers are still in the process
proper interpretation and to of complying said reports.
provide adequate
information. Region III Fully
DO-San Jose del Monte City-2IUs Implemented

359
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
 instruct the responsible Region V
accounting personnel/ DO-Ligao City; DO-Legazpi City; DO- Fully
disbursing officer/book- Camarines Norte; DO-Catanduanes; DO- Implemented
keepers to immediately Masbate;
submit all due financial Fully
reports and documents to Region VII
DO-Tagbilaran City Implemented
comply with the provisions of
Section 41 of PD No. 1445, Region X Fully
Section 6 of COA Circular DO-Ozamiz City Implemented
Nos. 95-006 and 2009-006;
and Region XII
Partially
ROP; DO-Koronadal; DO-South Cotobato
 if warranted, consider the Implemented
As much as possible forward to Audit
withholding/suspension of Team all reports and supporting
payment of salaries of officials documents before the prescribed period.
and employees concerned, Fully
until they shall have complied DO-Cotobato City
Implemented
with the requirements
Region XIII
pursuant to Section 122 (2) of
Fully implemented by DO of Surigao del Partially
PD No. 1445.
Sur and partially implemented by DO of Implemented
Agusan del Sur.

RO IV-B Fully
DO-Romblon Implemented
DOs-Oriental Mindoro, Palawan and Partially
Occidental Mindoro; IU-PPC Implemented
Submission of reports and documents is
still on-going.

Delay in the submission is due to the


geographical location of the schools.

RO V Fully
DOs of Ligao City, Legazpi City and Implemented
Masbate
Partially
DO-Camarines Norte Implemented
RO X Fully
DOs of Ozamiz and Tangub Implemented

360
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Non-compliance with the provisions of RA No. 9184 and other related issuances on government
procurement
25. The inability of CAAR Partially
Management, as observed in 2015 Implemented
different DepEd Offices and Page Region VIII
schools, to strictly adhere to the 294- DO-Eastern Samar
laws, rules and regulations on 300 Require the BAC to submit copies of Partially
government procurement resulted contracts and purchase orders and all Implemented
to some lapses and violation of supporting documents to the auditors
pertinent regulations on within 5 working days for issuance.
procurement prescribed under RA
No. 9184 and its Revised IRR and DO-Southern Leyte
other related government Submission of the required documents to Fully
regulations on the matter. COA within 5 days from the completion Implemented
of the contract
We recommended that
Management observe faithful DO-Biliran
compliance with applicable rules CPES Implementing Unit was already Fully
and regulations of the revised established to evaluate the performance of Implemented
IRR of RA No. 9184 and other all contractors.
related government issuances on
procurement process. DOs of Leyte, Ormoc and RO Not
No knowledgeable employees on the Implemented
evaluation of contractor’s performance
using the NEDA-approved CPES
guidelines
Fully
DO-Tacloban; Leyte DO Implemented

DO-Northern Samar Partially


Disbursement Vouchers were not Implemented
submitted

Region XIII
The Management submitted the perfected Fully
contracts and bidding documents last Implemented
February 12, 2016.

361
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
RO II
ROP
Pending submission from 2Go Group Inc Partially
and Dalin JD Transport Implemented

DO-Ilagan Fully
Implemented

NCR Fully
DOs of Quezon City, Manila Implemented

RO IV-A
DO-Antipolo Partially
Some IUs are still procuring from private Implemented
businesses, instead of DBM-PS

RO VI
DO-Antique
Not all contracts were furnished to the Partially
Office of the Auditor for review and Implemented
evaluation

DO-Iloilo Fully
Implemented

RO X
DO-Iligan, DO-Cagayan de Oro Fully
Contracts were already submitted implemented

ROP
A similar deficiency in 2016 was noted Not
and documented through an AOM, implemented
consequently suspending the said
transaction in calendar year 2016.

RO XI Fully
COMVAL Implemented

362
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
GENDER AND DEVELOPMENT (GAD)
26. Annual GAD Plans, or the CAAR Identify gender issues and concerns in Partially
corresponding GAD Accomplish- 2015 GAD Plans and allocate at least five Implemented
ment Reports for CY 2015 were Page percent of the total appropriation for the
not prepared by some DepEd ROs, 300- implementation of its GAD Plan pursuant
DOs and Schools for approval of 310 to Section 34 of the General Provisions of
Philippine Commission On RA No. 10651, GAA for FY 2015; and
Women (PCW), while other GAD
programs/projects were not Faithfully adhere to the guidelines on the Partially
allocated of at least five percent of preparation of GAD Plans and Budget and Implemented
their budgets, contrary to Section Accomplishment Reports per PCW-
34 of the GAA for FY 2015, thus NEDA-DBM Joint Circular No. 2012-01.
attainment of GAD objectives to
address gender issues and Region I Fully
concerns was not fully DO-Ilocos Norte; DO-Ilocos Sur Implemented
accomplished.
DO-Laoag City
We recommended that The Management will conduct trainings, Partially
Management: seminars, and other related activities in Implemented
line with the approved GAD plan of the
 identify gender issues and Division. The Management will also
concerns in GAD Plans and make attributions in order to meet the five
allocate at least five percent of percent requirement of GAD.
the total appropriation for the
implementation of its GAD DO-Batac City
Plan pursuant to Section 34 of The Management will formulate a Work Partially
the General Provisions of RA and Financial Plan (WFP) and appropriate Implemented
No. 10651, GAA for FY 2015; the five percent threshold as required by
and GAA.

 faithfully adhere to the Region II Fully


guidelines on the preparation ROP, DOs of Cauayan City and Santiago Implemented
of GAD Plans and Budget and City
Accomplishment Reports per
PCW-NEDA-DBM Joint DO of Tuguegarao City
Circular No. 2012-01. To prepare an Annual Gad Plan to Partially
maximize the utilization of the five Implemented
percent allocation.

363
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region III Fully
DO-Aurora; DO-Mabalacat City; Implemented

Region IV-A Partially


DOs of Antipolo and Tayabas Implemented
Activities were not all undertaken due to
conflict with other school activities.

Region V
RO Proper; DO-Albay; DO Ligao City; Fully
DO-Legazpi City; DO-Camarines Norte; Implemented
DO-Masbate City

Region XIII
Issued Office Memorandum No. 49, Fully
s.2016 regarding the composition of the Implemented
Regional GAD Focal Point System

CAR Fully
DO of Mt. Province Implemented

ROP; DO-Abra; DO-Apayao;DO-Baguio Not


City; DO-Benguet; DO-Ifugao Implemented

RO IV-B
RO, DOs-Oriental, Occidental Mindoro Partially
& Palawan Implemented
There were minimal gender issues to be
addressed

DO-Puerto Prinsesa City & Romblon Not


GAD allocation is still below the required Implemented
percentage; no existing GAD Plan yet.

Region VI Not
ROP Implemented

Region VIII
DOs of Biliran, Southern Leyte Maasin Fully
NVHS, Maasin City Implemented

364
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
DOs of Samar, Eastern Samar Partially
Implemented

ROX Fully
DO-Tangub, Gingoog Implemented

DO-Iligan Partially
Implemented

DO-Misamis Occidental Not


Implemented

RO XI Not
ROP Implemented

DOs of Panabo,COMVAL, Davao del Partially


Norte, Davao del Sur Implemented
SENIOR CITIZENS AND DIFFERENTLY-ABLED PERSONS
27. Failure of various Regional CAAR Partially
and DOs to implement programs/ 2015 Implemented
projects and fully integrate in their Page
regular activities at least one 310- Region II:ROP
percent of their budget for plans/ 313 For CY 2015, the agency conducted Fully
programs/projects that will several activities intended to address the Implemented
address the concerns of senior concerns of senior citizens and the
citizens and persons with differently-abled persons as required
disability as provided in Section under Section 35 of the GAA, FY 2015 or
35 of the GAA for FY 2015 and RA 10651 such as programs for retiring
Joint DBM and DSWD Circular officials and employees.
No. 2003-01 dated April 28, 2003.
DO-Cagayan and 9 IUs
We recommended that the The DO Proper and the 9 schools under Fully
Management integrate in its audit should put up priority lanes and Implemented
regular activities, the plans, ramp for senior citizens and person with
programs and projects intended disability in their respective office/
to address the concerns of senior schools and other activities/projects
citizens and differently-abled concerning them.
persons and utilize at least one
percent of agency budget,
pursuant to Section 35, General

365
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Provisions of the FY 2015 GAA Region III
or RA No. 10651. DO-Gapan City
Identified SC & PWD Focal Person and Partially
prepared SC & PWD plans, programs & Implemented
projects

Region VII Fully


DO-Siquijor Implemented

Region X Partially
DO-Gingoog, Camiguin Implemented

Region XII
DO- South Cotabato; DO-Cotobato City Fully
Implemented
CAR
DO-Ifugao
Ramps were provided for persons with Fully
wheel chairs Implemented

ROP; DO-Abra;DO-Baguio-City Not


Implemented
RO-IVA
DO-Batangas Partially
Implemented

COMPLIANCE WITH TAX LAW

28. DepEd Offices substantially CAAR Partially


complied with the revenue 2015 Implemented
regulations on withholding taxes Page
on salaries, benefits, and 313- Region I; Region III; Region IV-A; Fully
procurement of goods and services 316 Region IV-B; Region XII; CAR Implemented
and the subsequent remittance
thereof pursuant to Revenue Region II Partially
Memorandum Circular No. 23- ROP, DOs of Nueva Vizcaya, Implemented
2007 dated March 23, 2007 and Batanes and Santiago City
BIR Tax Revenue Regulation No. Fully
10-2008 dated July 8, 2008. DO-Isabela Implemented
However, as shown in the financial

366
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
statements of DepEd as of Not
December 31, 2015, there were DO-Cauayan City Implemented
still unremitted taxes totaling
P567,426,041.70. Region V Fully
Implemented
We recommended that the
Management of concerned Region XI Fully
Offices/Schools require their Davao del Norte, Davao del Sur,Digos Implemented
respective Accountants to City, Davao City
strictly implement the
imposition of taxes on certain
income payments and on money
payments due or payable to all
suppliers of goods and/or
services being a withholding
agent of the government, and to
ensure that taxes withheld are
remitted on or before the 10th
day of the month following the
month of withholding, except
for taxes withheld for the month
of December, which shall be
filed on or before the 15th day of
the succeeding year, pursuant to
pertinent revenue regulations.
Compliance with RA No. 8291 on Proper Deductions and Remittances of Premiums to GSIS
29. Deficiencies were noted in CAAR Partially
the remittance of GSIS 2015 Implemented
contributions/premiums by some Page
DOs in the regions, which are 317- Region II Fully
detrimental to the interest of the 319 ROP; DO-Cagayan Implemented
members concerned and depriving
them of the benefits and privileges Region XII Fully
accorded to them. ROP Implemented

We recommended that the Region XIII


Management continue The Payroll Service Unit of this Regional Not
complying strictly with the Office has no authority/power to change implemented
provisions of the GSIS Act of the system

367
Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
1997 and its IRR, and all GSIS
regulations particularly on the Region XI
withholding and remittance of DO COMVAL, ROP,Panabo City,Davao Partially
members’ contributions, del Norte Implemented
repayments of loans, and the
timely remittance thereof to the Davao City Fully
GSIS to ensure continued Implemented
commitment of the system in
promoting the welfare of
government employees through
an insurance system that will
protect its members against
adverse economic effects
resulting from death, disability
and old age.

368

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