EXECUTIVE SUMMARY
INTRODUCTION
Republic Act 6975, otherwise known as the “Department of the Interior and Local
Government (DILG) Act of 1990” operationalizes the constitutional mandate for the
establishment of a single and unified police force which is national in scope and civilian
in character under the control and supervision of the National Police Commission. The
same law provides for the establishment and organization of separate fire and jail bureaus
under the DILG.
Significantly, Section 66 of the same Act establishes and constitutes the
Philippine Public Safety College (PPSC) as the “premier educational institution for the
training, human resource development and continuing education of all personnel of the
Philippine National Police, the Bureau of Fire Protection and the Bureau of Jail
Management and Penology.”
For the year 2000, PPSC had sustained its objectives and functions by
satisfactorily accomplishing its various plans and targets. Among its significant
accomplishments are: a) 1,112 participants in the Cadetship (BSPS); b) 21 participants in
the Masteral in Public Safety Administration, c) a total of 148 participants in In-Service
Courses (BSPS); and d) a total of 4,487 participants in the Officer, Non-Officer and
Technical Courses. The PPSC also conducted the 2nd Asia Pacific Conference on Public
Education and training participated by different foreign delegates and representatives
various local government and educational institutions.
During the year, the College had a total allotment of P589,544,241.00 consisting
of regular allotment of P466,296,000.00 and continuing appropriation of
P123,248,241.00. The total expenditures incurred during the year amounted to
P589,520,076.00, leaving a balance of P24,165.00.
SCOPE OF AUDIT
The audit covered the operation of PPSC for calendar year 2000. The objective of
the audit was to ascertain the fairness and reliability of the College’s financial position
and results of its operation, and to determine whether the plans, programs, projects and
activities for the year ended were attained in an efficient, effective and economical
manner. The results of the value-for-money audit are included in a separate report.
STATE AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
The rendered a qualified opinion on the fairness of the presentation of the
financial statements of the College because the existence, validity and correctness of the
fixed assets amounting to P 203,182,991.22 were not ascertained due to the failure of the
Management to conduct the required annual physical inventory thereof. The inadequacy
of records did not permit the application of alternative audit procedures.
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS
For the exception cited above, the Auditor recommended the yearly conduct of the
physical inventory of fixed assets. In addition, the following are the other significant
findings and recommendations:
1. Cash advances in the total amount of P 32,074,086.43 granted to the Disbursing
Officer and the various Special Disbursing Officers of the College remained
unliquidated as of December 31, 2000, contrary to Section 179 of the Government
Accounting and Audit Manual (GAAM).
Direct the accountable officers concerned to settle immediately their corresponding
cash advances by submitting their liquidation documents to the Accounting Division.
Thereafter, the accountable officers should liquidate immediately their cash advances
as soon as the purpose for which these were granted have been served pursuant to
Section 179 of the GAAM, Vol. II.
2. The monthly Bank Reconciliation Statements on account 8-70-707 (Cash-Treasury
Account-Check Disbursements) and the Journal Vouchers issued were not submitted
to the Auditor for verification in violation of COA Circular No. 92-125A and Section
457 of the GAAM, respectively.
Direct the Chief Accountant to prepare the monthly Bank Reconciliation Statements
of account 8-70-707 and submit same to the Auditor within 15 days after the end of
the month pursuant to COA Circular No. 92-125A. Instruct also the Chief
Accountant to submit promptly to the Auditor Journal Vouchers issued pursuant to
Section 457 of the GAAM Vol. II.
3. Monthly Report of Checks Issued by the Deputized Disbursing Officer (RCIDDO)
together with the supporting documents were not submitted promptly to the Auditor.
Likewise, several monthly RCIDDO submitted lacked the corresponding vouchers
and supporting documents.
Direct the Disbursing Officer to promptly prepare monthly RCIDDO, certify and
forward it to the Chief Accountant for recording in the books of accounts and submit
same to the Auditor for post-audit and final custody within ten (10) days after receipt
thereof from the Disbursing Officer pursuant to COA Circular No. 81-156.
4. The government could have maximized the utilization of its resources had the
unexpended balance of trust receipts in the total amount of P 561,403.11 remitted to
the National Treasury.
Remit immediately to the National Treasury the unexpended balance of the trust
receipts in the amount of P 561,406.11 pursuant to Section 2 of Executive Order No.
338 to enable the government to maximize the use of its resources.
The findings and recommendations stated above were discussed with officials of
the College and all comments were incorporated in the report.
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEAR’S
AUDIT RECOMMENDATIONS
The three (3) 1999 audit recommendations were all implemented.