EXECUTIVE SUMMARY
INTRODUCTION
Established as a pioneer intermediate school in Indang, Cavite in 1906, the
school was first named as Indang Intermediate School. It became known as the Don
Severino Agricultural College (DSAC) in 1964 under R. A. 3917 creating it as a state
agricultural college. On January 22, 1998 it was converted into a state university by
virtue of R.A. 4868 and is now known as Cavite State University (CvSU).
The University is tasked primarily to provide instruction, research and
extension services in the arts, technology and literature towards the development of
individuals with practical and applied orientation. Its avowed mission is to provide
excellent, equitable and relevant educational opportunities in the arts, technology
through quality instruction and responsive research and development activities. It
shall produce professional, skilled and morally upright individuals for global
competitiveness.
The premier university in the historic Cavite recognized for excellence in the
development of globally competitive and morally upright individuals.
The Cavite State University (CvSU) is governed by the Board of Regents
(BOR) and is currently under the leadership of Dr. Ruperto S. Sangalang who has
been reappointed as University President by the then CHED Chairman Carlito Puno
per BOR Resolution No. 22 s. 2007. He is assisted by the following members of the
Administrative Council who are likewise authorized to continue their functions as
OICs until further notice:
Vice President for Academic Affairs
Vice President for Administration and Support Services
Vice President for Research and Development
Vice President for External and Business Affairs
Dean, Carmona Campus
Dean, Cavite City Campus
Dean, Naic Campus
Dean, Rosario Campus
Dean, Imus Campus
Dean, Trece Martires City Campus
Dean, Tanza Campus
Dean, Silang Campus
Dr. Lorna L. Penales
Dr. Hernando D. Robles
Dr. Simeon S. Crucido
Engr. Jaime Q. Dilidili
Dr. Cristina F. Olo
Mr. Isaac V. Mahinay, Jr.
Dr. Reynaldo E. Samonte
Dr. Isaias A. Banaag
Mr. Gilchor Cubillo
Dr. Celso S. Crucido
Dr. Celso S. Crucido
Dr. Julio G. Alava
The University has a total manpower complement of 994 personnel,
composed of 320 regular and 674 contractual, temporary, fulltime and part-time
faculty and employees.
FINANCIAL HIGHLIGHTS
The financial position of the university is shown below:
2007
Assets
Liabilities
Gov’t. Equity
2006
683,123,326.28
54,527,911.26
715,623,613.36
637,637,176.43
42,131,643.61
595,505,532.82
Increase
(Decrease)
45,486,149.85
12,396,267.65
120,118,080.54
% of Increase/
(Decrease)
7.13%
29.42%
20.17%
For the year 2007, CvSU had a total budget of P153,872,000.00. Actual
allotment released to the university in accordance with Republic Act No. 9401 or the
General Appropriation Act of 2007 totaled P169,637,843.00 while expenditures
amounted to P163,597,973.75.
Special trust funds (STF) totaling P263,402,884.92 from internal and external
sources were also received and managed by the university. A total of
P133,603,091.87 was budgeted and approved for utilization of income from STF by
the Board of Regents as of year end.
OPERATIONAL HIGHLIGHTS
The major accomplishments during the year are as follows:
Plans/Targets
Accomplishments
a. Level IV accreditation
Awarded SUC Level
IV by DBM-CHED
effective July 2007
b.Implemented
the Construction
following
projects Engineering
from the P70M CHED Building
tuition fee support
fund:
Amount
% of
Accomplishment
100%
of
Science
P28,946,902.52
54.89%
Industrial Automation
Equipment
P7,000,000.00
100%
University Networking
P 8,000,000.00
100%
Equipment for ECE
Laboratory
Computers
and
Softwares
of Completion of Ladies
to Dormitory
c.Implementation
projects charged
Fund 164
d.Solicit donation from Received 39,799 books
Ohio State University donation
e.Passing
rates
of Nursing
licensure examinations
LET for Bachelor of
Science in Education
P2,139,527.00
100%
P980,375.00
100%
P11,589,798.85
89.37%
100%
70%
70%
SCOPE OF AUDIT
The audit covered the financial transactions on the operations of the Cavite
State University for the calendar year ended December 31, 2007. The objective of
the audit was to ascertain the fairness of presentation of the financial statements of the
University. We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
We also conducted compliance audit and checked the validity and propriety of the
transactions.
STATE AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
The auditor rendered unqualified opinion on the fairness of presentation of the
agency’s financial statements.
SUMMARY
OF
RECOMMENDATIONS
Below are
recommendations:
the
SIGNIFICANT
other
significant
OBSERVATIONS
findings
and
the
AND
corresponding
1. Cash advances granted to various officials and employees amounting to
P1,316,925.72 remained unliquidated as of December 31, 2007, contrary
to the provisions of COA Circular No. 97-002.
We recommend that the President require the University Accountant to
closely monitor the granting and liquidation of Cash Advances. The
concerned official/employee should enforce immediate settlement of all
unliquidated cash advances especially those which pertain to prior years.
Also, implement the withholding salaries of accountable officers who
failed to liquidate the cash advances within the prescribed period.
2. Utilization and liquidation of the cash advance granted out of the
Agricultural Competitiveness Enhancement Fund (ACEF) loan for the
Coffee Revitalization Project of the Research Center
amounting to
P1,500,000 was not in accordance with COA Circular No. 97-002 dated
February 10, 1997.
We recommend that management adopt measures to ensure that
officials and employees who are granted cash advances are made aware
of their duties and responsibilities regarding cash advances.
We also recommend to require the concerned official to immediately
settle all cash advances in accordance with the above existing rules and
regulations.
3. Failure of the designated collecting officers of different campuses to turnover their collections daily to the main campus cashier due to inadequate
monitoring resulted in delayed remittances of collections and
understatement of cash and income accounts amounting to P993,484.70.
We recommend that the President require the remittances of
collections from the above mentioned campuses be closely monitored by
the University Cashier. Instruct her to refrain from issuing additional
accountable forms if the previously issued ones were still unaccounted.
Likewise, require that adherence with Section 65 of the GAAM be strictly
followed.
4. Uncollected receivables from sales of various merchandise/goods in the
University Marketing Center has accumulated to P1,854,400.40 for failure
to strictly implement the credit and collection policies stated in the
Guidelines on the Improvement and Expansions of Marketing Center
approved per BOT Resolution No 64 s. of 1984 and No 8, s. of 1993.
We recommend that management require strict implementation on the
credit and collection policies embodied in the Resolutions.
5. Receivables arising
from borrower of Student Financial Assistance
Program (STUPAP) loans were not recorded in the books understating
Other Receivables account.
We recommend that management require the Accountant to take up
necessary entries to adjust the account.
6. Some documents/reports affecting Income Generating Projects (IGP)
operations were not submitted to the Accounting Office for recording;
hence some transactions were not reflected in the Financial Statements
resulting in misstatement of income and receivable accounts and not in
accordance with Section 73a of the Manual on the New Government
Accounting System.
We recommend that the president require EBA to submit all financial
documents/reports affecting IGP operations to Accounting Office.
7. Absence of policies/guidelines and controls in the operations of Income
Generating Projects (IGPs) resulted in losses in several projects.
We recommend that management adopt policies, guidelines and
control measures to be embodied in a Manual of Operations for Income
Generating Projects and require strict implementation thereof.
Consider terminating projects that are consistently losing and replace
them with more viable/earning IGPs.
8. Due to the policy on the granting of scholarships to temporary employees,
the number of reneged scholars have increased compared with that of last
year; hence the University’s objective to continuously upgrade the
professional qualifications of faculty members and staff was not attained
during the year, resulting in possible losses of P1,325,102.81 if not
recovered.
We recommend the following for management to:
a) adopt and implement measures to ensure refunds of obligations by
reneging scholars;
b) implement properly the FSDF guidelines and adopt other
strategies/mechanisms to efficiently monitor the status of
scholarships and the collectivity of receivables and the refunds due
from them, thus avoid the incurrence of unnecessary expenses
related to the Contract of Grant of Scholars and to attain the
objective of FSDP to continuously upgrade the professional
qualifications of faculty members and staff.
9. Due to non-implementation of the provisions in the Memorandum of
Agreement (MOA), the Cavite State University (CvSU) failed to complete
the research study, monitor and conduct physical and financial review of
the status of the project “Promotion of Modified Atmosphere and
Minimally Processed Vegetables in Selected Markets in Metro Manila”
thus, the objective of the project to promote a sustainable supply of
ready-to-cook fresh vegetables at reasonable prices in the local markets in
Metro Manila was not attained as of June 30, 2007 and a fund transfer of
P2,500,000 was not accounted for.
We recommend that management should require the strict
implementation of the provisions of the MOA. Moreover, require the BNI
to submit the required reports, remit income that could have been derived
from the project and liquidate the P2,500,000.00 fund transfer.
10.
Submission of trial balances and other financial reports were not in
accordance with PD 1445 and Section 56 of the Manual on New
Government Accounting System (NGAS) thus, audit of related accounts
and balances could not be facilitated.
We recommend that management require the Accountant to observe
timely submission of required reports in accordance with existing rules
and regulations.
11. The Office of Student Affairs (OSA) has not properly implemented Section
4 of the implementing guidelines of CHED Memorandum No. 4 on
STUPAF to formulate, monitor, asses and evaluate the said program
resulting in the non-collection of loans from student borrowers depriving
other students of the loan privilege.
We recommend that management require OSA to ensure the effective
implementation of the program and collection of the due and demandable
loans from borrowers.
12. Non-inclusion of Barangay Scholarship program in the University’s annual
budget from Semestral Years 2001-2008 amounting to P4,970,966.00
deprived the University of the income that could have been utilized in its
operations.
We recommend that CvSU include in its annual budget to be submitted
to DBM the funding requirement to implement Barangay Scholarship
Program.
We further recommend that management, thru its President, make
representation with CHED/local government for tuition fees subsidy for
funding requirement for the barangay scholars in case DBM would not
grant the funding.
We discussed our observations and recommendations with the management
officials and staff, and their comments were incorporated in Part II of the report.
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEARS’
AUDIT RECOMMENDATIONS
Of the five audit recommendations contained in the 2006 Annual Audit
Report, three are partially implemented and two remained unimplemented. The
details are shown in Annex E.