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 is 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).
It is headed by Dr. Divinia C. Chavez and assisted by the following members of the
Administrative Council:
Vice President for Academic Affairs
Vice President for Admin. 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
Dean, Bacoor Campus
Dr. Ma. Agnes P. Nuestro
Dr. Hernando D. Robles
Dr. Alejandro C. Mojica
Dr. Luzviminda A. Rodrin
Dr. Cristina F. Olo
Dr. Lilibeth P. Novicio
Dr. Alexander F. Ferre
Dr. Camilo S. Polinga
Mr. Gilchor Cubillo
Dr. Cristina M. Signo
Dr. Reynaldo E. Samonte
Dr. Julio G. Alava
Mr. Henry O. Garcia
The University has a total manpower complement of 1,200 personnel, composed
of 501 regular and 699 contractual, temporary, fulltime and part-time faculty and
employees.
FINANCIAL HIGHLIGHTS
The total assets. liabilities, government equity, income and expenses for CY 2012
compared with that of the preceding year are as follows :
2012
Assets
P
Liabilities
Equity
Income
Expenses
Excess of Income Over
Expenses
2011
998,731,941 P
127,235,698
871,496,243
802,575,060
758,155,944
44,419,116
916,448,783 P
90,182,468
826,266,315
706,580,892
661,728,274
44,852,618
Increase
(Decrease)
82,283,158
37,053,230
45,229,928
95,994,168
96,427,670
(433,502)
For the year 2012, CvSU had a total budget of P237,630,582.51. Actual allotment
released to the University in accordance with Republic Act No. 10155 or the General
Appropriations Act of 2012 totaled P237,630,582.51 while expenditures amounted to
P237,626,379.39.
Total Income of P470,505,213.38 from internal and external sources were also
received and managed by the University. A total of P460,650,365.55 was budgeted and
approved for utilization of income by the Board of Regents as of the end of the year.
SCOPE OF AUDIT
The audit covered the financial transactions on the operations of the Cavite State
University Main and its campuses for the calendar year ended December 31, 2012. 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 that the financial statements are free of material misstatement. We
also conducted compliance audit and checked the validity and propriety of the
transactions.
AUDIT OPINION ON THE FINANCIAL STATEMENTS
The Auditor rendered an unqualified opinion on the fairness of presentation of the
Agency’s financial statements.
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SUMMARY OF SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS
Below are the significant findings and the corresponding recommendations:
1. Payment of Calamity Relief Assistance (CRA) in the amount of P21,871,850.00 given
to permanent, temporary and contractual employees charged against Special Trust Fund,
Department of Agriculture, Agricultural Competitiveness Enhancement Fund (DAACEF) and Income Generating Project (IGP) was disallowed in audit for being contrary
to Section 4.3 of PD No. 1445 and Section 12 of RA No. 6758.
We strongly recommended that the Management strictly comply with the laws, rules and
regulations covering the use of trust funds and refund the payment of CRA.
2. Collective Negotiation Agreement (CNA) in the amount of P18,229,855.51 charged
against Special Trust Fund (STF), Department of Agriculture, Agricultural
Competitiveness Enhancement Fund (DA-ACEF) and Income Generating Project (IGP)
is contrary to Section 4.3 of PD 1445 and Section 7.1 of DBM Budget Circular No.
2006-1, hence, was disallowed in audit.
We recommended that the Management strictly comply with the laws, rules and
regulations covering the use of trust funds and require the persons liable as identified in
the ND to refund the disallowed claim.
3. The Management of the University Main and Rosario Campus allowed more deductions
from salaries of their employees, making the latters’ monthly take home pay less than
P5,000.00, contrary to the provisions of Section 37 of the Republic Act No. 10155, thus
could result to weakening their commitment to public service.
We recommended that the Management of the University Main and Rosario Campus
strictly follow the provisions of Section 37 of RA 10155 pertaining to the authorized
deductions from the salaries of employees. Deduction should not reduce the required net
take home pay of P5,000.00 thus, ensuring that they have enough to support their daily
needs until the next pay day.
4. The amount of fidelity bond of the Cashier was not adequate compared to her cash
accountability, contrary to the requirement stipulated under Item 5.1 of the Revised
Schedule of Premium Rates of Treasury Circular No. 02-2009 dated August 6, 2009,
thereby, the government funds under her custody were not properly safeguarded against
loss due to unforeseen events or theft/robbery.
We recommended that the University President direct the Accountant to review the
cash accountabilities of the Cashier and correspondingly apply for an appropriate
amount of fidelity bond for her.
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5.
The University Management failed to act on the P874,495.95 shortage of Mr. Isaac V.
Mahinay, former Dean and Accountable Officer of the CvSU – Cavite City Campus.
The amount represents unremitted collections for calendar year 2007, in violation of
Section 80 of Presidential Decree (PD) No. 1445, thus, the possibility that the subject
funds may not be collected is high.
We reiterated the previous years’ audit recommendation that the President compel the
former Dean of Cavite City Campus to settle his obligations immediately or file a
criminal case against him.
6. Collections of Silang Campus were not remitted daily to the CvSU-Main Campus, in
violation of Section 21 of the New Government Accounting System (NGAS) Manual,
thus, exposing the funds for possible loss and/or misuse.
We recommended that the Campus Dean see to it that all collections received by the
deputized collecting officer are remitted to the Cashier of the Main Campus/ deposited
intact with authorized depository bank daily or not later than the next banking day as
required under Section 21 of the NGAS Manual.
7.
Ownership of the 5,000 square meters of land occupied by Cavite State University
(CvSU)-Silang Campus which was donated by the Municipality of Silang, Cavite in
2010 was not yet transferred/titled in the name of CvSU Silang, Cavite due to the failure
of the Management to facilitate the transfer of ownership, thus, not yet taken up in the
books, in violation of Section 63 of Presidential Decree 1445.
We recommended that the Campus Dean direct the Campus’ Property Custodian to
work on the documentation and determine the amount of taxes and transfer fees needed
to effect the transfer of the subject property in the name of the School.
8.
The Property, Plant and Equipment account year-end balance of the Naic Campus was
unreliable due to the unreconciled discrepancy of P1,488,849.80 between the year-end
inventory report of the Property Section and the book balance of the Accounting
Section. Further, the OIC-Accountant failed to maintain Property, Plant and Equipment
Ledger Card (PPELC), in violation of Section 12 of the Manual on the New Government
Accounting System (NGAS), Volume II, thus understating the account Property, Plant
and Equipment and the Government Equity.
We recommended that the Dean of the Naic Campus require the Accountant and the
Supply Officer to immediately verify the discrepancies on the Property, Plant and
Equipment account and make the necessary reconciliation and adjustments so as to
present fairly the balance of the Agency’s PPE on the financial statements. In addition,
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the Accountant should maintain the PPELC to record promptly the acquisition,
description disposal and other information about the asset.
9. The Monthly Bank Reconciliation Statements (BRS) of Naic Campus were not prepared
for several years, in violation of COA Circular No. 92-125A, thus, correctness of the
Cash account balance at year-end of P27,055,108.28 could not be confirmed.
We recommended that the OIC-Accountant reconcile the discrepancy of the books and
the bank balances by preparing the monthly Bank Reconciliation Statement (BRS) and
effect the correcting/adjusting entries for the discrepancies/errors noted immediately
after the BRS was prepared and items for correction/adjustment were properly verified.
10. The CvSU–Naic Campus did not appropriate the required mandatory cost of
implementing the Gender and Development Plan (GAD) of at least five percent (5%) of
the Agency’s total budget appropriations as required under Section 30 of the General
Appropriations Act (GAA) for Fiscal Year 2005 and Joint Circular No. 2004-01 of the
Department of Budget and Management (DBM), National Economic Development
Authority (NEDA) and National Commission on the Role of Filipino Women (NCRFW).
We recommended that the university officials concerned appropriate the required cost of
implementing the Gender and Development Plan (GAD) of at least five percent (5%) of
the agency’s total budget appropriations as required under Section 30 of the General
Appropriations Act for Fiscal year 2005 and Joint Circular No. 2004-01 of the DBM,
NEDA and NCRFW. Likewise, comply strictly with the other instruction and
documentation requirements cited in the said joint circular.
11. The Rosario Campus did not conduct physical count of all properties, and subsidiary
records were inadequate, in violation of Section 490 of the Government Accounting and
Auditing Manual, Volume I and Section 43 of the Manual on the New Government
Accounting System, Volume I, thus, the reliability, accuracy and existence of the balance
of Plant, Property and Equipment (PPE) accounts amounting to P679,143,318.72 could
not be ascertained.
We recommended that the Campus Dean create the Inventory Committee to prioritize
the conduct of the inventory-taking and submit complete and accurate Inventory Reports
of Inventories and PPE.
We also recommended that thereafter, both the Accountant and Property Officer intensify
review and reconciliation of their records on inventories and property, plant and
equipment to come up with reconciled balance of the account and subsidiary ledger cards
be maintained as support to the recorded inventories and property, plant and equipment
and to facilitate monitoring of the same.
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STATUS
OF
IMPLEMENTATION
RECOMMENDATIONS
OF
PRIOR
YEAR’S
AUDIT
Of the 14 audit recommendations contained in the 2011 Annual Audit Report, 9
were implemented 2 were partially implemented and 3 were not implemented.
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