1

2009 Audit Findings

Commission on Audit

2

Operations Audit

3

COMMISSION ON AUDIT

Finding - GASTPE

The implementation of the GASTPE for SY 2009 – 2010 through the ESC and EVS for SY 2009-2010 showed no significant effect of decongesting the class size of public high schools particularly those experiencing shortage of teachers and instructional rooms.

The Division Offices have no available data regarding the program due to their non-involvement and of the schools in the program’s activities thus finding it difficult to gather, understand and assess the extent and success of program implementation

4

COMMISSION ON AUDIT

GASTPE

Late arrival of the vouchers under the Educational Voucher System (EVS) led to its distribution directly to participating private schools and were awarded to students coming from public schools regardless of whether they met the required qualifications.

5

COMMISSION ON AUDIT

Recommendation

We recommended that DepEd: in coordination with FAPE revisit the guidelines

especially on the allocation of slots for graduates of public schools over those from the private schools.

the Principals of highly populated schools and those experiencing acute teachers and classroom shortages in coordination with the GASTPE Coordinator in the Division Office recommend qualified deserving students to become ESC/EVS grantees.

DepEd Central Office consider increasing EVS slots for the Division Office of Mandaluyong and the schools be vigilant in the submission of their request so that all or more EVs applications could be accommodated.

6

COMMISSION ON AUDIT

Recommendation

- We recommended that the School Principals and the Division Office need to take active role in the dissemination of the program to widen information to students and parents in order to maximize the availment of the program for the benefit of the students, the private schools and the public schools. The GASTPE Coordinator monitor the submission of reports from the private schools regarding the status of the ESC and EVS scholars.

7

COMMISSION ON AUDIT

Furniture and Fixtures

Timelines of the DepEd Desk/Armchair Project amounting to P80,141,663.06 for 2008 and 2009 were not met due to a) delayed release of funds from DBM, b) delayed execution of the procurement process contrary to the provisions under the Revised Implementing Rules and Regulations (IRR) of RA 9184, c) late deliveries by contractor/s, d) deficiencies in the workmanship and materials used on the delivered items and e) non conformity with the prescribed designs under the DepEd School Furniture Program.

8

COMMISSION ON AUDIT

Furniture and Fixtures

We recommended that Management of DepEd RO and the aforementioned Division Offices:

a. make representation with the DBM for the prompt release of subsequent program funds of RO;

b. instruct the RBAC to carry out procurement activities in accordance with Revised IRR of RA No. 9184 ;

c. ensure that the delivered and accepted items are in good order and condition;

9

COMMISSION ON AUDIT

Furniture and Fixtures

notify the concerned contractors to either rectify the defects or replace the defective items delivered following the standard DepEd specifications and the Regional/Division Office requirements for materials to be used, if any;

impose sanctions and applicable liquidated damages on claims for payment for the late deliveries; and

determine acceptability of items with changes in the prescribed designs of the DepEd with due consideration to cost and durability.

10

COMMISSION ON AUDIT

Gender and Development

The Region and its Division Offices did not prepare and submit GAD Plan and Budget as provided under Section 29 of the General Provisions of the 2009 GAA and the implementing guidelines resulting to non-implementation of programs/projects/activities that will contribute to the attainment of our country’s international commitment to pursue women’s empowerment and gender equality.

11

COMMISSION ON AUDIT

Recommendation

We recommended that: a. The and Division Offices prepare a GAD Plan and Budget

using the prescribed format under Joint Circular 2004-1. Only programs, activities and projects that directly address gender issues and concerns should be included. The GAD Plan should be submitted to NCRFW for the required review and endorsement to DBM.

b. The Regions and Division Offices allocate at least five percent of their total appropriations.

c. An Annual GAD Report of Accomplishment be prepared and submitted. The report should contain the actual accomplishments of the targeted GAD activities with corresponding amount spent thereon.

12

COMMISSION ON AUDIT

IT Equipment

Computer units and related items purchased out of the President’s Social Fund amounting to P9,999,880.00 were not in conformity with the Division Office’s proposed hardware and software package, hence, not fully utilized for the maintenance of School Integrated Records Management Database and Information System as confirmed by 16 of the 22 recipient schools validated.

13

COMMISSION ON AUDIT

IT Equipment

We recommended that the Officer in Charge of the Division of City Schools :

Explain why the specifications per proposal was not the same with the items approved in the contract;

Verify from and ensure that recipient schools utilize the computers units delivered in accordance with the proposed eMS-SBP; and

Monitor the performance of the Trading Company as to the terms and conditions of the contract specifically on the installation of the software, utilization by the 22 recipient schools of the software as intended, licenses for pre installed Windows XP or Vista and product warranties.

14

Financial and Compliance

15

COMMISSION ON AUDIT

Cash Accounts

The Region’s Division Offices and some of their Secondary Schools subscribe to the practice of establishing Current Accounts without proper authority, to deposit funds received from grants/sponsorship/donations and transfers from the MDS account of unutilized balances of Notices of Cash Allocations (NCAs).

16

COMMISSION ON AUDIT

Recommendation

We recommended that management to implement a sound cash management system by stopping the practice of transferring unused balances of NCAs to current account, without proper basis, or otherwise obtain proper authority from the Permanent Committee on the maintenance of separate accounts for grants and donations as well as for the utilization of the same.

17

COMMISSION ON AUDIT

Cash In Bank

Audit of Cash in Bank-Local Currency, Current Account disclosed that balances of various collections totaling P70,074,073.63 were not remitted to the National Treasury, contrary to Section 22 of Manual on NGAS Volume I, Section 2 of COA Circular Letter No. 2004-04 and the General Provisions of GAA, and exposing funds to possible misuse

18

COMMISSION ON AUDIT

Cash in Bank

We recommended that management remit to the National Treasury the above funds in compliance to the aforementioned regulations and Section 2 of COA Circular Letter No. 2004-004 dated October 5, 2004, and hindering the risk of misuse of these funds

19

COMMISSION ON AUDIT

Payroll Fund

The Payroll Fund for teacher’s salary and receivables for deposit to the payroll fund recorded by the Regional Office is not reconciled with the corresponding liabilities for net pay and salary deductions for remittance to GSIS, HDMF, Philhealth and Private Lending Institutions because of lack of adequate recording and reconciliation procedures resulting in a difference of P23,745,629.42.

Delayed payment of salaries and other benefits due to continued preparation, processing and payment of supplementary payrolls in the Regional Payroll Service Unit (RPSU)

20

COMMISSION ON AUDIT

Cash – Payroll Fund

We recommended the following: Require the Accountant to adjust the receivable Due from

Operating Units for salaries already remitted by the OUs. Remit the excess cash in the current accounts of the payroll fund to the Bureau of Treasury.

The Head of the Budget and Finance Division improve the recording and reconciliation procedures in taking up receipt of cash remittance by the OUs to assure correct and complete recording in the books of accounts.

Management to submit explanation as to the maintenance of six current accounts for payroll fund instead of only two current accounts required in DepED Order No. 37 s. 2004 as amended

21

COMMISSION ON AUDIT

Cash Advances

1. Cash advances to officers and employees amounting to P40,210,715.06 remained unliquidated at year end even if the purpose for which these were granted have already been served, primarily due to lack of monitoring of liquidation and inability to complete supporting documents contrary to the pertinent provisions of COA Circular 97-002.

22

COMMISSION ON AUDIT

Cash Advances

We recommended that: a. The Accountable Officers immediately settle their unliquidated cash

advances. b. Refrain from granting additional cash advances unless the

previous ones are first liquidated. c. Impose sanctions on accountable officers that fail to comply with

the timeframe for submission of liquidation requirements by withholding/suspending their salaries pursuant to Executive Order No. 248 as implemented by COA Circular No. 96-004.

d. Monitor closely utilization, immediate liquidation and prompt recording of liquidation of cash advance.

e. Request for write-off the cash advances which have been outstanding and non-moving for more than five years after complying with the guidelines set forth under COA Circular No. 97-001 dated February 5, 1997. (DO-Mandaluyong).

23

COMMISSION ON AUDIT

Downloading of MOOE

Allocation of MOOE was not downloaded to elementary and secondary schools as of Dec. 31, 2009 due to the failure of the DOs to release regularly the intended MOOE funds through cash advance

Accumulation of unliquidated cash advances for MOOE due to non submission of vouchers for pre-audit

We recommend that MOOE allocation be immediately released to schools to attain the objective of empowering school principals.

24

COMMISSION ON AUDIT

Recording of Furniture and Fixtures

Procured school tables and chairs amounting to P9,226,403.41 were carried in the books of the Division Offices as Furniture and Fixtures (Account 222) instead of as Other Supplies Inventory (account 165) or Other Supplies Expense (account 765) upon acquisition and issuance respectively resulting in overstatement of assets and understatement of Other Supplies Inventory or Other Supplies Expenses.

25

COMMISSION ON AUDIT

Construction – in - Progress

Completed constructions/rehabilitations amounting to P258,786,758.57 was not reclassified to School Buildings account but remained in Construction-in Progress (CIP) account contrary to Paragraph 2, Section G.1 of the Manual on the National Government Accounting System (NGAS), Volume I

Conversely, partial billings for constructions and major repairs

of school buildings/classrooms at the DO were outrightly debited to the School Building and Other MOOE accounts instead of CIP resulting in the understatement of CIP account by P21,798,349.79 and overstatement of School Buildings account by P P17,795,690.17 and MOOE by P4,002,659.62.

26

COMMISSION ON AUDIT

Reciprocal Accounts

The reciprocal accounts of the Regional Office are not reconciled with that of the Operating Units, with a net difference of P46,054,516.23; thus, affecting the fair presentation of the financial statements.

We recommend: Require the Accountants of the RO and OUs to prepare

schedules of the reciprocal accounts and reconcile the difference.

b. The Regional Accountant draw a JEV to correct the balances of accounts affected after reconciliation.

c. Thereafter, require the Accountants to prepare a regular periodic quarterly reconciliation at least quarterly to immediately correct any discrepancies noted.

27

COMMISSION ON AUDIT

Expenses

Subsistence Allowance Claims of the Division’s school health and nutrition

personnel of the City and health workers of the Division Offices pertaining to Subsistence Allowance exceeded the prescribed rate set by Republic Act No. 7305 (Magna Carta for Health Workers) and its Revised Implementing Rules and Regulations (IRR) by 100 percent, thereby incurring overpayment in the total amount of P1,062.650.00.

28

COMMISSION ON AUDIT

Expenses

Mobile/Communication Inadequate management controls on the use of

mobile phones and entitlement to cellular cards by the Regional Office Proper and the Division Offices provided no sound basis over the incurrence of such expenditures. In like manner, the DepEd ROP incurred overpayment of call card allowance in the total amount of P341,284.41 which were either in excess of the monthly allocation or without authority.

29

COMMISSION ON AUDIT

Expenses

Training Audit of liquidation reports on the conduct of

Training Program showed that the approved budget estimates for travel expenses were excessive by 63 percent. Conversely, disbursements for professional fees/honorarium were excessive by 24 percent as well as supplies and materials including training kits by 242 percent.

30

COMMISSION ON AUDIT

ExpensesWe recommended that-TRAINING

Management officials spearheading the trainings plan ahead all activities to be conducted during the year including the staffing and needed supplies, to be realistic as possible, taking into consideration the requirement of the end-users. Include in the DepEd’s Annual Procurement Plan the supplies requirements for the efficient discharge of its functions and daily operations.

Strictly adhere to the guidelines that there must be canvass from three reputable suppliers for procurement of supplies and materials to obtain the most economical and reasonable price.

31

COMMISSION ON AUDIT

Expenses

We recommended that-TRAINING

Supplies and materials procured be duly received by the authorized end-users and inspected by authorized officials.

Ensure that transactions are within the authorized limits and for purposes originally approved;

Management prepare uniform guidelines on the grant of honoraria to the resource persons, assessors, facilitators and coordinators and within the rates prescribed under existing regulations i.e. based on the actual number of lecture hours. Any increase in rate should be properly justified and approved by authorized officials.