EXECUTIVE SUMMARY
Introduction
The Bicol University (BU) is composed of six (6) campuses, namely:
1. Main Campus with five operating units including the General
Administration (GASS);;
2. Legaspi East Campus that includes the College of Engineering and
College of Industrial Technology;
3. Daraga Campus composed of College of Political Science and Social
Sciences and Philosophy and College of Business and Management;
4. Guinobatan Campus which is known as College of Agriculture and
Forestry (BUCAF)
5. Polangui Campus (BUPC)
6. Tabaco Campus (BUTC) that includes College of Fisheries and Extended
Program Departments.
Each campus maintains a complete set of books only for the General Fund (Fund
101) otherwise a Revolving Fund (F161) is maintained if it has an IGP. For Special Trust
Fund (Fund 164), the campuses and operating units submit the financial reports to the
GASS for recording in the books of accounts.
Financial Highlights
I.
II.
Comparative Financial Position
Particulars
2006
2005
Assets
Liabilities
Government Equity
P570,645,200.48
54,381,655.51
516,263,544.97
P570,645,200.48
54,381,655.51
516,263,544.97
%
Increase/Decrease
15%
73%
11%
2006
P283,299,534.93
2005
P283,299,534.93
Increase/Decrease
(7%)
109,463,426.66
109,463,426.66
12%
268,021,599.64
64,097,945.64
268,021,599.64
64,097,945.64
1%
2%
4,109.53
332,123,654.81
P 60,572,857.68
4,109.53
332,123,654.81
P 60,572,857.68
936%
5%
(31%)
Sources and Application of Funds
Particulars
Total Subsidy
Income from NG
Total Tuition and
Other Fees
Personal Services
Maintenance and
Other Operating
Expenses
Financial Expenses
Total Expenses
Excess of Income
Over Expenses
Operational Highlights
Instruction
The first year students admitted in June, 2006 for SY 2006-2007 totaled 4,077 out
of the 11,356 who took the entrance test posting a decrease of 466 or 10.26% as
compared with the previous school year of 4,543. One of the reasons was the
inavailability of slots for those seeking admission in popular courses like BS in Nursing
and Accountancy.
Over the five year period, from SY 2002-2003 to 2005-2006, enrolment in tertiary
education programs in the University has progressively increased, decreased in the
graduate levels, and reduced deliberately in basic education.
For SY 2006-2007, enrolment in tertiary education (15,955) increased by 1.2% or
190 over that of SY 2005-2006 (15,765). Enrolment in the graduate level teacher
education program is greater in percentage (374 or 50%) than in the corresponding
undergraduate level program. The reduction in the enrollment at the basic education
level is in keeping with the 500-student enrolment limit set by the DBM for laboratory
schools in state colleges and universities.
The March 2006 graduates of Bicol University totaled 2,682 distributed as
follows: 46 in the graduate level; 2,356 in the baccalaureate level; 68 in the certificate
program; and 212 in basic education. This total number is 149 or 3.95% more than the
March, 2005 graduates of 2,533. Of this graduates, 125 (5.31%) graduated with honors.
Accreditation
The Colleges of Education and Fisheries have obtained CHED Center of
Excellence status for their programs, while the College of Science has recently applied
for Center of Development Status.
Performance in Licensure Examination
The performance of BU Graduates in various licensure examinations speak of the
quality of instruction they receive. For the CPA examination conducted in May, 2006,
out of 9 examinees, six passed or 67% passers as against the National percentage of 24%
while for the Architect Licensure, 16 passed the board exam out of the 28 examinees or
57% as compared with the national percentage of 43%.
Scope of Audit
The audit was aimed to ascertain the fairness and reliability of the agency’s financial
position and the results of its operations. The audit conducted included examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements.
The audit was for the period January to December 31, 2006.
Auditor’s Report
The auditor issued an adverse opinion on the fairness of the presentation of the financial
statements because the validity, accuracy and reliability of the balances of the Cash-inBank Local Currency Account amounting to P73,243,481.40 could not be ascertained due
to inadequacy of available records and some deficiencies in the preparation/maintenance
of records and reports required under existing regulations. Likewise, the validity,
accuracy and existence of the Inventory accounts and Property, Plant and Equipment
accounts totaling P57,719,169.63 and P323,692,979.15, representing 10% and 55%,
respectively, of the total assets, could not be ascertained because of management’s failure
to conduct complete physical inventory, prepare the required accounting and property
records and accordingly reconcile the balances of the accounts with the results of the
physical count.
Significant Observations and Recommendations
1. Delayed implementation of approved activities ranging from two to five months as
Commission on Higher Education’s (CHED) identified Center of Excellence pursuant
to Republic Act 8435 for want of insights on financial management as well as its
weak monitoring of activities resulted in unutilized funds amounting to
P1,458,930.40 representing 33% of the total CHED Subsidy of P4.5M.
We recommend that the university:
¾ Prioritize time-bounded undertakings/projects/activities
¾ Adequately orient project implementers not only on the project but
including financial management
¾ Regularly conduct assessment or review of project implementation in order
to ensure timely completion of the undertaking and identification of issues
and concerns that would hinder the success of the project.
2. Absence of guidelines and lack of monitoring on research outputs costing
P134,992.66 as required in Section O of the Manual of Operation for Research
resulted in the failure to attain the project’s viability and could result to infringement
of intellectual property rights.
We recommend that the University fast track the development of guidelines on
Intellectual Property Rights.
Implementation of Prior Year’s Recommendations
Of last year’s 24 audit recommendations, seven or 29% were fully implemented, six
or 12% were partially implemented and fourteen or 58% were not implemented.