EXECUTIVE SUMMARY
INTRODUCTION
Cavite State University (CvSU)- Main Campus was established in 1906 as a
pioneer intermediate school in Indang, Cavite. The University was first named as Indang
Intermediate School. It became known as the Don Severino Agricultural College (DSAC)
in 1964 under Republic Act (RA) No. 3917 creating it as a State Agricultural College.
On January 22, 1998, it was converted into a State University by virtue of Republic Act
No. 4868.
The University is primarily tasked 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, that shall produce
professional, skilled and morally upright individuals for global competitiveness.
The premier University in the historic Cavite is recognized for its 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 its new management headed by Dr. Divinia C. Chavez who was appointed as the new
University President on August 1, 2008 under BOR Resolution No. 62 s. 2008. She is
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. Cristeta M. Montano.
Dr. Alexander F. Ferre
Dr. Cecilia F. Genuino
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 1,030 personnel, composed
of 338 regular and 692 contractual, temporary, fulltime and part-time faculty and
employees.
FINANCIAL HIGHLIGHTS
For the year 2011, CvSU had a total budget of P267,537,034.00. Actual allotment
released to the University in accordance with Republic Act No. 10147 or the General
Appropriations Act of 2011 totaled P267,537,034.00 while expenditures amounted to
P262,698,828.22.
The total assets, liabilities, government equity, income and expenses for CY 2011
compared with the preceding year are as follows:
2011
Assets
Liabilities
Equity
Income
Expenses
Excess of Income
over expenses
P
916,448,784 P
90,182,468
826,266,316
706,580,892
661,728,274
44,852,618
2010
714,575,064
85,231,813
629,343,251
613,105,508
571,985,886
41,119,622
P
Increase
(Decrease)
201,873,720
4,950,655
196,923,065
93,475,384
89,742,388
3,732,966
Total Income totaling P706,580,891.68 from internal and external sources were
also
received
and
managed
by
the
University.
A
total
of
P706,580,891.68 was budgeted and approved for utilization of income by the Board of
Regents as of the end of the year.
SCOPE OF AUDIT
Financial and compliance audits were conducted on the accounts and operations
of the Cavite State University for the calendar year ended December 31, 2011. The audit
was conducted to ascertain the fairness of presentation of the financial statements and
compliance of the University, with laws, rules and regulations as well as the economical
efficient and effective utilization of resources.
AUDIT OPINION ON THE FINANCIAL STATEMENTS
The auditor rendered an unqualified opinion on the fairness of presentation of the
agency’s financial statements.
SUMMARY OF SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS
Below are the significant findings and the corresponding recommendations:
1. The University failed to collect from the former Accountable Officer of the CvSUCavite City Campus, the amount of P874,495.95, the balance of his collections for
calendar year 2007, in violation of Section 80 of Presidential Decree (PD) No. 1445,
thus, exposing the funds to possible loss/misuse..
We recommended that President compel the former Dean of Cavite City Campus
to settle his obligations immediately or file a criminal case against him.
2. Four items were reported lost/missing in the Physical Report of Property, Plant and
Equipment and one was discovered lost during the physical count and all were not
reported to the Office of the Auditor, in violation of Section 494 of the Government
Accounting and Auditing Manual (GAAM) Volume I, thus losing the opportunity for
the agency to recover the cost of the lost items.
We recommended that the President instruct the Supply Officer to recover from
Mr. Arreza the cost of Dell Laptop which was lost through his negligence. In the case
of Mr. Jeciel, try to locate his address and let him pay for the cost of the item. For
Ms. Diloy and Ms. Mojica will have to answer for the costs of the lost items.
3. A total of P1,643,685.53 of agency funds used to pay monetization of sick leave
credits of 67 personnel of the University were suspended in audit for absence of
supporting valid justification from concerned employees in their application for
monetization required under Section 22 and 23 of Omnibus Rules on Implementing
Book V of Executive Order No. 292.
We recommended that University President require submission of valid
justifications from employees concerned for monetized sick leave credits constituting
50 percent or more of their total leave credits in order to settle audit suspensions
relative thereto.
4. Twenty units typewriters acquired by CvSU-Silang Campus worth P325,240.00
remained idle from the time there were acquired and stored at the Supply Office of
the Main Campus up to audit date, thereby defeating its purpose for which they were
purchased, thus resulting in the waste of government funds.
We recommended that University President find ways that above idle typewriters
be utilized the soonest possible time otherwise, the total cost of which will be
disallowed in audit and concerned agency officials involved in the procurement of the
same shall be made accountable therefore.
5. Unserviceable properties totaling P11,913,884.95 were still included in the Physical
Inventory Report of Property, Plant and Equipment and no proper disposal was made.
Also, no reconciliation was made on the difference in amount that existed between
the Trial Balance and the Inventory Report of P860,163.99 as of December 31, 2011,
in violation of Section 448 of the Government Accounting and Auditing Manual
(GAAM), Volume I, resulting in the overstatement/understatement of the Property,
Plant and Equipment and the Government Equity accounts.
We recommended that President instruct the Supply and Property Officer to
prepare the Inventory and Inspection Report of Unserviceable Property and submit
the same to the Office of the Auditor. Moreover, proper disposal thereof should be
made in order to forestall further deterioration and derive recoverable value. After
proper disposal, the original copy will be submitted to the Accountant for the
preparation of the journal entry voucher to drop the unserviceable properties from
the books and the third copy to be retained by the Supply Office to support the
dropping of the properties from the ledger cards. The second copy to be retained by
the Auditor.
6. The cashbooks for the check disbursements for all funds still have no running
balance, in violation of Section 181 of the Government Accounting and Auditing
Manual (GAAM) Volume I, thus accountability for a certain date could not be
determined.
We strongly recommended that the University President require the Cashier to
record in the cashbook the cash allotment received for the PS and the MOOE and
the deposits for the Trust – Income and Trust Miscellaneous of the Main Campus
and all the other campuses. Also, use a separate cashbook for PS and MOOE.
Reconcile the records with the Accounting records.
7. Daily Report of Collections and Deposits were not prepared by the CvSU- Main
Campus, contrary to Section 22 of the Manual on the New Government Accounting
System (NGAS), Volume I, and Section 54 of NGAS, Volume II thereby control and
monitoring over cash collections were weak and the risk of misuse and manipulation
of records are high.
We recommended that the University President require the Collecting Officer to
accomplish the Report of Collections and Deposits at the close of each business day
in accordance with the aforementioned sections in the NGAS Manual and in order to
adequately safeguard the funds of the agency.
8. The amount of fidelity bond of Mrs. Florinda M. Ayos, as Sr. Administrative Asst. IV,
Acting University Cashier was not adequate as compared to her cash accountability.
Also, the designated Collecting Officer of CvSU-Carmona, Silang and Trece Martires
City Campuses were not bonded, contrary to Item 7.1 of COA Circular No. 97-002 as
amended by COA Circular No. 2006-2005 dated July 13, 2006 and Section 182 of
GAAM, Volume I, thereby the government funds under their accountability 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, Ms. Ayos, and correspondingly apply for an
appropriate amount of fidelity bond for her. We also recommended that the Trece
Martires Campus Dean follow-up their request on the approval of the plantilla
position for Collecting Officer and once approve, apply for his/her immediate
bonding to comply with Section 101 of P.D. 1445. For the Collecting Officers of
CvSU-Silang and Carmona, we recommended that they also apply for the bonding
requirements.
9. Collections of CvSU-Trece and Silang Campuses were not remitted daily to CvSUMain Campus and collections were utilized for payments of some Maintenance and
Other Operating Expenses (MOOE) of the campus which is not in accordance with
Section 21 of the New Government Accounting System (NGAS) Manual, thus and
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 officers 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.
10. Disbursements for payment of electricity and water bill of Rosario Campus’
concessionaires amounting to P65,021.62 were charged against Fund 164 instead of
the Income Generating Projects (IGPs) or Fund 163, thus the reported expenses
under both Funds were misstated with the same amount and contrary to Section 28
of the Manual on the Government Accounting System (NGAS).
We recommended that disbursements for payment of expenses against Fund 163
and 164 be made in accordance with the afore cited provisions of the NGAS Manual
in order to present fairly the financial statements under each Fund.
11. The agency was not aggressive in implementing the programs/activities/projects of
the GAD, in violation of Section 4.6 of the Joint Circular No. 2004-1 resulting in
the under implementation of the GAD plans and budget, thus depriving the intended
beneficiaries of the benefits that may be derived therefrom.
We recommended that the University President try to prepare the budget in an
amount equivalent to at least 5% of the MOOE budget and to implement all the
planned programs/activities/projects of the GAD and that GAD Focal Point do her
part of monitoring its implementation in its fullest.
12. The University- Rosario Campus did not implement Gender and Development (GAD)
Plan in violation of DBM, NEDA and NCRFW Joint Circular No. 2001-1 dated
August 15, 2001, thus gender issues and concerns of their clients and personnel were
not addressed.
We recommended that the University Dean implement a GAD Plan and include
and/ or allocate not less than five (5%) of the agency’s total budget/ appropriation
for its implementation pursuant to the aforementioned provisions of DBM, NEDA
and NCRFW Joint Circular.
13. A total of P283,624.27 of agency funds were used to pay monetized sick leave
credits of some officials and non-teaching employees of Cavite State UniversityNaic Campus contrary to Sections 1 and 2 of Civil Service Commission-Department
of Budget and Management Joint Circular (CSC-DBM) No. 2-97 dated January 25,
1997, thus could result in audit disallowances for such payment and amount.
We recommended that the Campus Dean stop the practice of monetizing sick
leave credits and comply strictly to the guidelines set forth in Sections 1 and 2 of
CSC-DBM Joint Circular No. 2-97.
14. Non-submission by management to COA of a copy of government contracts, purchase
orders and other supporting papers and documents within the prescribed period is
contrary to COA Circular No. 2009-001 dated February 12, 2009, hence, resulted in
the delay in the auditorial review and evaluation, particularly on the technical aspects
of the contracts.
We recommended that the Campus Dean require the OIC-Office of the
Accountant to submit all contracts, purchase orders and their supporting documents
within the prescribed period to facilitate auditorial review as well as inspection of the
items procured.