EXECUTIVE SUMMARY
Introduction
Creation
Republic Act 9261 which was enacted and approved by Congress and the Senate on
March 7, 2004, established the Southern Leyte State University by integrating the
Southern Leyte State College of Science and Technology in the Municipality of
Sogod and Tomas Oppus Normal College in the Municipality of Tomas Oppus. With
this development, five higher education campuses were integrated to comprise the
university since SLSCST has been made host to three other CHED-supervised
institutions in October 1999. Thus. The Southern Leyte State University is composed
of institutions known as the following:
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SLSU- Sogod (Main) Campus
SLSU- Tomas Oppus Campus
SLSU- Bontoc Campus
SLSU- San Juan Campus
SLSU- Hinunangan Campus
Sogod, Southern Leyte
Tomas Oppus, Southern Leyte
Bontoc, Southern Leyte
San Juan, Southern Leyte
Hinunangan, Southern Leyte
However, it was only in Calendar Year 2005 that Subsidy Income from the National
Government for SLSU-Tomas Oppus was integrated with the rest of the SLSU
Campus. Fund releases prior to that period were made directly to SLSU-Tomas
Oppus.
Mandate
The basic purpose of the establishment of the Southern Leyte State University is
clearly stated in section 2 of R.A 9261 to wit;
Section 2. General Mandate. The University shall primarily provide advanced
education, higher technological, professional instruction and training in trade,
fishery, agriculture, forestry, science, education, commerce, engineering and related
courses. It shall also undertake research and extension services, and provide
progressive leadership in its areas of specialization.
Organizational Set-up
The Board of Regents. The governing body of the University is vested on the
Board of Regents (RA 9261, Section 5), composed of eleven (11) members headed
by the CHED representative as Chairperson while the incumbent College President
as the Vice Chairman. Other representatives from the Senate, Congress, NEDA and
DOST are part of the august body together with the federated association presidents
of the University. The representatives from the faculty, alumni and students were
elected among the respective presidents of each campus organization. Two
prominent citizens are also members of this body.
In 2005, the body convened in four regular and one special meetings that resulted in
the passage and approval of 99 resolutions the bulk of which comprises 42 and 48
administrative and personnel matters, respectively. Two of them were academic
while 7 were fiscal matters.
Organizational and Management Structure.
The university is currently headed by a university president (RA 9261, Section 9)
with the new organizational structure (ANNEX “A”) approved by the BOR but has
been reviewed by the DBM for full implementation. The set-up is typical true to all
campuses except on some areas where others have yet to fill up the positions
depending on the availability of funds and the need commensurate to the present
campus situation.
FINANCIAL HIGHLIGHTS
The agency’s comparative Assets, Liabilities and Government Equity for
Calendar Years (CY) 2005 and 2004 are as follows:
2005
2004
Assets
138,970,694.35
===========
87,093,017.00
==========
Liabilities
Equity
11,968,665.27
127,002,029.08
5,522,207.55
81,570,809.45
138,970,694.35
===========
87,093,017.00
==========
For CY 2005, the University received a total allotment from the Department of
Budget and management (DBM) the amount of P 96,967,844.77 while total obligations
amounted to P 95,293,614.69 thus leaving a balance of P1,674,230.08 which was
reverted to the Bureau of the Treasury.
OPERATIONAL HIGHLIGHTS
a. “VS” rating given to SLSU per DBM Annual Performance Review and
Evaluation
The university has garnered a “Very Satisfactory” (VS) rating following the
conduct of the Annual Performance Evaluation by DBM for the third quarter of CY
2005. The evaluation was based on the physical, financial and income
accomplishments of the university which eventually got numerical and descriptive
ratings of 4.00 (VS), 0.99 (S), and 0.30 (Fair), respectively. These modest
accomplishments led to a rating which is a step higher than what the university has
been getting for the past two years. For the physical accomplishments, out of the
maximum of 62.5 points, the university got 50.25 with the following areas being
considered, namely; enrolment (28.25 out of 35points), faculty profile (2.50 out of
3.50points), merit scholarships (2.25 out of 3.50 points), research (7.0 out of 7.0),
extension (3.50 out of 3.50 points), accreditation of program offerings (4.75 out of
7.0 points), performance in licensure examination (2.0 out of 2.0 points), and
auxiliary services - SUC’s with hospitals and custodial services (0 out of 1 point).
For the financial (obligation against allocation) and income (internal income
against expenditures) accomplishments, a “Satisfactory” and “Fair” adjectival
ratings were given by the agency. Accomplishment by campus is presented as
ANNEX “B”.
SCOPE OF AUDIT
The financial audit covered the operations of the Southern Leyte State University,
Sogod, Southern Leyte for CY 2004 and aimed to ascertain the propriety and validity of
the disbursements and receipts as well as the reliability of the accounts as presented in the
financial statements. The audit is also aimed to determine whether plans, programs and
activities for the year were attained in an efficient, economical and effective manner.
AUDITOR’S REPORT
There is reason to believe the balances of the accounts affected, the consolidated
financial statements referred to, present fairly, in all material respects, the consolidated
financial position of the Southern Leyte State University, Sogod, Southern Leyte as of
December 31, 2005 and the consolidated results of operations for the year then ended in
accordance with applicable laws, rules and regulations in conformity with generally
accepted state accounting principles.
OBSERVATIONS and RECOMMENDATIONS
These observations and recommendations were discussed with management and
that their comments were incorporated in the report where appropriate.
1. The discrepancy of P 2,082,675.17 in balances between the General
Ledger and Physical Inventory Reports of the SLSU- Hinunangan, Bontoc,
and Tomas Oppus campuses caused by the absence of reconciliation,
misclassification of the Property, Plant and Equipment (PPE) and Other
Assets items in the Physical Inventory Reports of the SLSU-Tomas Oppus
Campus, absence of physical inventory reports for all PPE items of the SLSU
– Main and San Juan Campuses, and failure to book up to their proper asset
accounts the cost of completed projects valued at P 1,622,749.48 cast doubt
on the validity and accuracy of the PPE and Other Assets accounts balance of
P153,130,713.05. We recommend that management:
a.
Direct the respective Accountants and Property/Supply Officers of
SLSU – Hinunangan, Bontoc, and Tomas Oppus campuses to
reconcile their property and accounting records on Property, Plant and
Equipment as well as Other Assets accounts and to properly classify
their Property, Plant, Equipment and Other Assets items in the
Inventory Reports in accordance with COA Circular No. 2004-008
dated September 20, 2004 ;
b.
Direct the Accountant and Property or Supply Officer of SLSU –
Tomas Oppus to record to their proper asset accounts completed
projects amounting to P 1,622,749.48 which were still recorded in the
Construction in Progress account; and
c.
Direct the Property/Supply Officers of SLSU - Main and San Juan
Campuses to submit Physical Inventory Reports for all PPE and Other
Assets items in accordance with NGAS Vol. II, Sec. 66.
2. The non-booking up to their proper inventory accounts of all purchases
totaling to P1,757,074.53, the total discrepancy of P206,837.10 between
Physical Inventory Reports and General Ledger balances of SLSU – Bontoc,
Tomas Oppus, and San Juan campuses caused by the absence of
reconciliation, misclassification of Inventory items in the physical inventory
of SLSU-Tomas Oppus campus, the absence of physical inventory reports for
all inventory items of SLSU-Main and Hinunangan campuses, the failure to
maintain accounting and property records and absence of reconciliation of
both records, cast doubt on the reliability and validity of the Inventory account
balance of P658,736.78. We recommend that management:
a.
Direct their respective Accountants to draw a JEV to book-up the total
amount of year-end inventories reflected in their physical inventory
reports and also to draw a JEV to record all issuances to come up with
correct account balances. Henceforth, direct their respective
accountants to take up all purchases of supplies/ materials/ drugs and
medicines/ medical/dental/ laboratory, Gasoline
/Oil/Lubricants,
Spare Parts and Other Supplies to their proper inventory accounts.
b.
Direct their respective Accountants and Supply Officers to maintain
accounting and property records and to reconcile both records
regularly, and to make the necessary adjustments, if any, to come up
with correct account balances.
c.
Direct the Accountant of SLSU –Tomas Oppus Campus to drop from
the books the inventory items already issued to end-users to come up
with correct account balances.
d.
Direct the respective Supply Officers of the SLSU – Main and
Hinunangan campuses to conduct a regular physical count of their
inventory balances and to submit a report thereon to the Accounting
Unit for reconciliation and to the Auditor’s Office for audit.
3. The balance of the Receivables-Others account of P1,707.52 as of December
31, 2005 is understated due to the failure of the accountant to book up the
disallowance of P90,644.00 issued per CSB#01-116-101-2002 dated Aug. 21,
2002 which has become final and executory after the lapse of the six months
period wherein which to file an appeal, in violation to Sec.53, Vol. I of
NGAS, thereby affecting the fair presentation of the financial statements. We
recommend that management direct the Accountant to prepare a Journal Entry
Voucher to book up the amount of disallowance as well as the partial cash
settlement thereto, to come up with correct account balances.
IMPLEMENTATION OF PRIOR YEAR’S RECOMMENDATIONS
Of the 11 audit recommendations contained in the Annual Audit Reports for
Calendar Year 2004 , 6 (55%) were fully implemented while 5 (45%) were partially
implemented.