MINUTES DURING THE SEMINAR/WORKSHOP ON THE PREPARATION OF MID YEAR FINANCIAL
REPORTS LAST JULY 7-11, 2014 AT RELC, CABATANGAN, ZAMBOANGA CITY
Opening Program was at 9:00AM. The Statement of Purpose was delivered by the Chief of the
Budget and Finance Division, Mrs. Elizabeth B. Tatel. The following are the objectives of the activity:
1. To facilitate preparation of accurate and reliable financial reports for submission to different
regulatory bodies of government.
2. Reconciliation of Reciprocal Accounts
3. Reconciliation of Actual Releases of Allotments and NCAs from DBM and DepEd-CO
4. To be informed or updated in the implementation of new budgetary innovations
5. Common issues are discussed to come up with an immediate resolution
6. To meet with the CORE Group and discuss status of compliance on audit findings and
recommendations
Expectations from this Seminar/Workshop:
1. Accomplishment and submission of accurate and reliable consolidated Division Outputs per
List of Requirement by the CO
2. Well informed on the status of implementations of new financial reforms and its execution
3. Improved % of compliance of COA audit findings and recommendations
4. Resolved common issues and concerns
5. Increased percentage of compliance on reportorial requirements
ISSUES & CONCERNS:
1. Status of EMDPS Implementation and ATM Implementation
DIVISIONS
1.
DAPITAN CITY
% OF
IMPL
REASONS FOR
%
Date of
THE
OF
IMPL
UNIMPLEMENTED IMPL
%
REMARKS
94%
Teachers already applied
and still on process.
To be implemented July, 2014
0%
1.1 Division
Office
Advised
teachers
and
employees to open bank
accounts for their claims thru
ADA.
2.SE
To be implemented July, 2014.
0%
2.
DIPOLOG CITY
88%
3.
Three to four times
submitted applications
but no feedback from
the bank.
Encourage creditors to open
accounts with the same with
the agency’s gov’t servicing
bank.
2.1 Division
Office
0%
2.2 SE
0%
PAGADIAN CITY
78%
Some forms are with
discrepancies, so the
teachers resubmitted
Page 1 of 21
Already implemented for
external creditors only. Bank
advised DO TO open mother
current account but per
applications, on process
2.1 Division Office
instruction from CO, IUs are
not authorized to open and
maintain current accounts.
0%
To be implemented July, 2014
2.2 SE
4. Zamboanga Sibugay
Division
0%
54%
Submitted applications
to the bank. DO should
inform and submit to
RPSU
new
ATM
Accounts numbers of
newly hired teachers.
1.1 Division
Office
1.2 SE (other
IUs)Zambo
Sibugay NHS
5.Zamboanga del Norte
75%
Initial Implementation.
Already implemented for PS.
For MOOE, target date of
implementation is July, 2014.
Have to advise creditors to
open bank accounts.
0%
May 2014
50%
June, 2014
Last Aug, 2013,
submitted applications
but no feedback from
the bank. Newly hired
teachers failed to submit
to DO their newly
opened bank account
numbers.
Actually started last year.
Schedule orientation for the
purpose. Should be the same
bank with the agency servicing
bank.
January,
2014
1.1 Division Office
0%
1.2 SE
6. Zamboanga del Sur
75%
200 cards withdrawn
from PVB, while others
are still on process.
MVTS applications to be
signed by SDS and to be
endorsed to the bank
yet. Requested by DBP
to open current
account (payroll
servicing account).
No implementation yet for PS
and MOOE. External creditors
(contractors already direct
payment). For PS ,SB is DBP
while ATMs are under PVB.
Seek authority from CO to
open payroll Servicing account
(current)
10%
1.1 Division Office
For implementation this July,
2014. For PS only, run out of
checks.
1.2 SE (Tambulig NHS)
June , 2014
50%
Page 2 of 21
7. ISABELA CITY
87%
106 newly hired
teachers have applied
already and still on
process.
Difficulty in contacting 5
teachers assigned in
remote schools.
1.1 Division Office
For implementation this, July,
2014. They are apprehensive
on the issuance of Official
receipts by the creditors. Bank
is asking for authority to open
current accounts from
principals for the downloading
of MOOE. For ADA,
Apprehensive on the issuance
of OR by the creditors.
0%
For Implementations this July,
2014. For Begang NHS, ongoing application. For Basilan
NHS , this July, 2014 for PS.
1.2 SE
8. ZAMBOANGA CITY
1.1 Division Office
97%
Implemented for PS and
Internal creditors. Will be
implemented for MOOE this
July, 2014
3% represents the newly
hired teachers.
For implementation this July,
2014.
1.2 SE
50%
0%
2. Status of Implementation on the downloaded Special Programs and Projects – Upon receipt of
the utilization guidelines, the funds were transferred to the Implementing Units through the
issuance of Sub-AROs and the corresponding funding checks to the Division Offices. Secondary
schools will receive their NCA from the DBM inasmuch as they are not authorized to maintain
current accounts.
3. Status of Retirees under EO 366
- Contract of Service – Services of affected employees were extended up to September
30, 2014, thus were issued their Contract of Service.
- Realignment of Funds – PS Funds was realigned to MOOE for the payment of their
services.
4. RAMT compliance to commitments
Endorsements of requests to DBM – should be coursed to RO who will review and sanitize the
reports
- undated indorsements – all requests from IUs coursed to the RO should be dated.
Page 3 of 21
- incomplete documentations – Attach all supporting documents so as not to delay action on
communications and other requests
5. Status of School-based Feeding Program – checks are already processed and soon ready for
release at the Cashier’s Office for the Orientation of the School Based Feeding Program.
6. Status of Compliance on Reports – All
UPDATES ON BUDGETARY MATTERS – By: Ms. Maria Concepcion R. Salcedo, Head-Budget Section
The following were discussed briefly.
Budget Items Comprehensively Released to the Regional Offices but Implementation of Which
Needs Issuance of Guidelines from the Central Office.
1. Every Child A Reader Program
2. Financial Assistance to RSHS (DO No. 15, s. 2014)
3. Support to Secondary Schools with Special Programs for the Arts and Sports (DO NO. 15, s.
2014)
4. Support to SPED Centers/Schools (DO NO. 15, s. 2014)
5. Support to ESEP High Schools (DO NO. 15, s. 2014)
6. Support to Special Elementary Science Schools (DO NO. 15, s. 2014)
7. Support to Multi-grade Schools (DO NO. 30, s. 2014)
Comprehensive release means the funds are already lodged in the region (not in Central) as reflected
in the FY 2014 GAA.
Budget Items Comprehensively Released to the Regional Offices But Implementation of Which
Needs Issuance of Guidelines from the Central Office.
1. MOOE Allocation for Kindergarten Education under Operations of Schools
2. Allocations of the Regional Offices for Human Resource Development for Teaching,
Teaching-Related, Non-Teaching and Other Personnel
3. Allocations of the Division Offices for Human Resource Development for Teaching, TeachingRelated, Non-Teaching and Other Personnel???
4. Magna Carta Benefits of DepEd’s Public Health Workers
Budget Allocations of Regional Offices for Centrally-Managed Items TRANSFERRED to the Central
Office Per National Budget Circular (NBC) No. 551
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Textbooks/Instructional Materials (including P100M for Children with Special Needs
Science and Mathematics Equipment
Department of Education Computerization Program
Construction, Repair and/or Renovation of Buildings for the Library Hub Program and
Education Learning Centers
Basic Education Madrasah Program
Government Assistance to Students and Teachers in Private Education (GASTPE)
Implementation of Indigenous Peoples Education Program
Textbooks/Instructional Materials (including P100M for Children with Special Needs
Science and Mathematics Equipment
Department of Education Computerization Program
Construction, Repair and/or Renovation of Buildings for the Library Hub Program and
Education Learning Centers
Basic Education Madrasah Program
Government Assistance to Students and Teachers in Private Education (GASTPE)
Implementation of Indigenous Peoples Education Program
Page 4 of 21
Release of Funds
•
RO Finance Division
Effects the transfer of allotment comprehensively released to the RO as reflected in the
GAA 2014 to the respective units through the issuance of Sub-AROs
•
SDO/IUs
Upon receipt of Sub-ARO shall record receipt and obligation of allotment in the RAOMO
being maintained by the respective units.
•
Sub-AROs issued by the RO
NCA requirements were included in the RO revised MDP programmed in July, 2014
RO will release the NCA thru funding check
•
IUs (Sec Schools) will receive the NCA directly from DBM
Sub-AROs issued by the Central Office that were received after the submission of the revised MDP last
June 30, 2014
•
DBM RO will coordinate with DBM CO and seek confirmation on the latest revised MDP.
(NCA requirements should be included in the MDP of the CO)
Upon receipt of the NCA
The SDO shall effect the transfer of the allocated amount to the heads of the non-IUs in the form of
cash advance. For non-IUs with large allocation, the SDS may release in tranches depending on the
timelines in the approved Work Plan. Subsequent cash advances may be given, provided that at least
75% of the previous cash advances have been liquidated.
Other Issues and Concerns:
•
Request for Accounts Payable is not consistent with FARs and MDP
•
No unpaid payables in Annex A.
•
NCA requirement was not included in the revised MDP.
•
Reports submitted should not be for the purpose of submission only. It should be with integrity,
transparent and not manipulated.
•
Submit advance copies of reports to the Regional Monitoring Team on FARs by uploading same
in the website of the BFD with domain name http://depedbfd9.wikispaces.com
Attached is the status for the transfer of allotment for the various Special programs and projects to
the Division Offices and Implementing Units as of June 30, 2014.
Support to Special Science Elementary Schools
Division/School
1. Zamboanga City (Putik CS)
Sub-ARO No.
RO-9-ZC-14-05-010
Amount
P 300,000.00
2. Zamboanga del Sur
(Margosatubig RP ES)
RO-9-ZS-14-05-011
300,000.00
TOTAL
P 600,000.00
Page 5 of 21
Support to SPED Centers
1. Zamboanga del Norte
RO-9-ZN-14-05-015
P 1,132,800.00
2. Zamboanga del Sur
RO-9-ZS-14-05-016
2,496,000.00
3. Zamboanga Sibugay
RO-9-SIB-14-05-017
2,998,400.00
4. Dapitan City
RO-9-DAP-14-05-018
452,000.00
5. Dipolog City
RO-9-DIP-14-05-019
456,000.00
6. Pagadian City
RO-9-PC-14-05-020
434,400.00
7. Isabela City
RO-9-IC-14-05-021
783,200.00
8. Zamboanga City
RO-9-ZC-14-05-022
2,927,200.00
TOTAL
P11,680,000.00
Financial Assistance to Regional Science High Schools
1. Regional Science High
RO-9-ZC-14-05-012
School
TOTAL
P 1,810,000.00
Support to Schools with Special Program for the Arts and Sports (SPA/SPS)
1. Zamboanga del Norte
RO-9-ZN-14-05-013
(Sergio Osmena NHS – SPA)
2. Zamboanga del Sur NHS
(SPS)
P 1,810,000.00
P
RO-9-PC-14-05-014
500,000.00
500,000.00
TOTAL
1,000,000.00
HRTD Funds (Training of Grade 3 Teachers
1. Zamboanga del Norte
RO-9-ZN-14-05-001
P
4,059,000.00
2. Zamboanga del Sur
RO-9-ZS-14-05-002
4,088,000.00
3. Zamboanga Sibugay
RO-9-SIB-14-05-003
2,747,000.00
4. Dapitan City
RO-9-DAP-14-05-004
491,000.00
5. Dipolog City
RO-9-DIP-14-05-005
586,000.00
6. Isabela City
RO-9-IC-14-05-006
486,000.00
7. Pagadian City
RO-9-PC-14-05-007
566,000.00
8. Zamboanga City
RO-9-ZC-14-05-008
2,580,000.00
TOTAL
P15,603,000.00
Compensation of Kinder Volunteer Teachers for 1st qtr., CY 2014
1. Zamboanga City
RO-9-ZC-14-06-028
P 2,151,000.00
2. Zamboanga Sibugay
RO-9-SIB-14-06-031
3,549,000.00
3. Pagadian City
RO-9-PC-14-06-032
981,000.00
4. Zamboanga del Sur
5. Dapitan City
RO-9-ZS-14-06-033
RO-9-DAP-14-06-041
6,804,000.00
367,500.00
P 13,852,500.00
TOTAL
ERF, MT and Reclassification of Positions
1. Pagadian City
RO-9-PAG-14-05-009
2. Regional Science HS
RO-9-ZC-14-06-029
3. Maria Clara L. Lobregat NHS
4. Dapitan City
RO-9-ZC-14-06-030
RO-9-DAP-14-06-042
5. Ayala NHS
RO-9-ZC-14-06-043
6. Dapitan City NHS
RO-9-DAP-14-06-044
Page 6 of 21
P
882,646.00
85,929.00
304,768.00
194,083.00
53,162.00
554,628.00
TOTAL
2,075,216.00
Support to Multi-grade schools
1. Zamboanga del Norte
RO-9-ZN-14-06-034
P 2,674,929.00
2. Zamboanga del Sur
RO-9-ZS-14-06-035
3,441,922.00
3. Zamboanga Sibugay
RO-9-SIB-14-06-036
1,396,422.00
4. Dipolog City
RO-9-DIP-14-06-037
71,708.00
5. Isabela City
RO-9-IC-14-06-038
80,738.00
6. Pagadian City
RO-9-PC-14-06-039
107,827.00
7. Zamboanga City
RO-9-PC-14-06-040
459,454.00
TOTAL
8,233,000.00
PROVIDENT MATTERS – By Ms. Lucshil G. Pioquinto, Provident Fund Controller
Conversion Entry for Provident Fund FS as of December 31, 2013
 COA Circular 2014-003 dated April 15, 2014.
Phil. Govt. Chart of Accounts
Revised Chart of Accounts for NGAs
(COA Circular 2004-008)
1. Due from National Treasury
Cash-Treasury/Agent Deposit, Special Account
1010402000
2. Advances to Officers & Employees
Advances to Special Disbursing Officer (1990103000)
Advances to Officers & Employees (1990104000)
Accountable Forms, Plates & Stickers Inventory
1040402000
3. Accountable Forms Inventory
4. IT Equipment and Software
Information & Communication Technology Equipment
1060503000
5. Due to Regional Offices/Staff Bureaus
Due to Regional Offices (2030103000)
6. Government Equity
7. Income and Expense Summary
8. Due from Other Funds
Accumulated Surplus/(Deficit) (3010101000)
Revenue and Expense Summary (3030101000)
XXXX
SUMMARY OF DISTRIBUTION OF THE 26 MILLION FUNDING CHECK IN 2014
Division
Amount
Isabela City
1,371,781.06
Dapitan City
983,655.44
Dipolog City
856,312.78
Pagadian City
1,036,708.86
Zamboanga City
3,926,622.05
Zamboanga del Sur
4,344,343.50
Zamboanga del Norte
4,789,400.93
Zamboanga Sibugay
3,930,867.34
Regional Office
161,354.03
Common Fund
5,350,261.50
Page 7 of 21
TOTAL
26,751,307.50
PROVIDENT FUND (PF) BOOKS
Recording of Funding Check
The RO shall record the transfer of Service Fee from CO by crediting the account “Other
Business Income (40202990-99)” for its own share and “Other Payables” for the share of the DO.
The DO shall also record the release of its share of the Service Fee from RO as ‘’Other Business
Income (40202990-99)”.
ISSUES AND CONCERNS
Status of Funds Report should be properly
accomplished (complete data).
Cash Flow
Aging of Loans Receivable
Submit complete Financial Reports before the National Workshop on July 21-25, 2014.
 EPIP and SPHERE Fund
Phil. Govt. Chart of Accounts
Revised Chart of Accounts for NGAs
(COA Circular 2004-008)
1. Construction in Progress-Agency Assets Construction in Progress-Buildings & Other
Structures
(1061003000)
2. Due to Other Funds
XXXX
3. Guaranty Deposits Payable
2.
Guaranty/Security Deposits Payable (2040104000)
4. Government Equity
Accumulated Surplus/(Deficit) (3010101000)
5. Subsidy from Central Office
Subsidy from Other NGAs ( 4030102000)
Regional Budget and Finance Division Website
http://depedbfd9.wikispaces.com
- Updates on Registered users
ACCOUNTING ISSUES AND CONCERNS – By: Mr. Ben-Hur J. Maddas, OIC-Accounting Section
1. Checking of Financial Reports shall be done by respective Division, ROP will
the Consolidated Division Financial Reports.
Recommendation/Strategies
check only
Designate an In-charge for efficient and effective review and consolidation
2. For Checking:
NCA Received
+ TRA
- Refunds(Travel refunds,etc.)
= SING
Lapsed NCA per NCA Utilization Report will tally to the Unadjusted Trial Balance code
10104040-Cash NT-MDS
Page 8 of 21
PRESENTATION OF SING (Must be Uniform in all FS)
RECEIPT OF NCA / INCOME FROM NATIONAL GOVERNMENT
As of May 31,2014
PARTICULARS AMOUNT
Total NCA Received for Previous Month
Total NCA Received for Current Month
Total NCA
Add: Remittance of Taxes withheld thru TRA
Total NCA and TRA (Total Subsidy)
Less: Lapsed NCA
Refund
BALANCE As of May 31,2014
AMOUNT
P 74,160,000.00
20,098,000.00
94,258,000.00
2,586,745.03
96,844,745.03
22,453,366.44
1,320.00
P 74,390,058.59
Also attached are sample report on NCA Utilization, Notes to the Financial Statement and JEV
Conversion.
The free hours in the afternoon was utilized in the reconciliation of Reciprocal Accounts and the
reconciliation of Allotments and Sub-AROs Received to be facilitated by the Regional Office In-Charge
(Accounting and Budget Sections) and the Divisions and Implementing Units concerned.
SECOND DAY – JULY 8, 2014
The Opening Activity started at 8:30 AM. It was workshop for the day, but the reconciliation of
Reciprocal Accounts and Allotments Received still continues and also the submission of copies of SAROs
as facilitated by Ms. Susan Callao. Issues and concerns relative to budget and auditing matters were
collected and consolidated by the Regional Facilitators in preparation for the COA and DBM Hours.
THIRD DAY – JULY 9, 2014
Though it was still workshop for the day, Mrs. Tatel, the BFD Chief took the opportunity to
discuss on COA-DBM Joint Circular No. 2014-1 dated July 2, 2014 with the subject “Guidelines
Prescribing the Use of Modified Formats of the Budget and Financial Accountability Reports (BFARs)”.
This Circular superseded DBM-COA Joint Circular No. 2013-1 dated March 15, 2013.
RATIONALE:
With the implementation of important financial reforms effective Jan. 1, 2014 such as:
- GAA as a release document
- Unified Account Code Structure (UACS)
- Integration of PIB structure in the GAA
- adoption of PPSAS (new chart)
There is an emergent need to adapt to these innovations the harmonized budget and financial
accountability reports (BFARs) prescribed by DBM & COA.
PURPOSE:
With the implementation of important structural reforms effective Jan. 1, 2014 such as:
- GAA as a release document
- Unified Account Code Structure (UACS)
- Integration of PIB structure in the GAA
Page 9 of 21
- adoption of PPSAS (new chart)
COVERAGE:
With the implementation of important structural reforms effective Jan. 1, 2014 such as:
- GAA as a release document
- Unified Account Code Structure (UACS)
- Integration of PIB structure in the GAA
- adoption of PPSAS (new chart)
GUIDELINES:
With the implementation of important structural reforms effective Jan. 1, 2014 such as:
- GAA as a release document
- Unified Account Code Structure (UACS)
- Integration of PIB structure in the GAA
- adoption of PPSAS (new chart)
The following are the reports/documents that are required for submission to the DBM and COA:
BAR No. 1 - Quarterly Physical Report of Operations
FAR No. 1 - Statement of Appropriations, Allotments, Obligations, Disbursements & Balances
FAR No. 1 -A - Summary of Appropriations, Allotments, Obligations, Disbursements & Balances
By Object of Expenditures
FAR No. 1-B - List of Allotments & Sub-Allotments (LASA)
FAR No. 3 - Aging of Due and Demandable Obligations (ADDO)
FAR No. 4 - Monthly Report of Disbursements (MRD)
FAR No. 5 - Quarterly Report of Revenue and Other Receipts
(QRROR)
BAR No. 1 – Quarterly Physical Report of Operations
Reflects the agency’s actual physical accomplishments as of a given quarter, in terms of the
performance measures indicated in its Physical Plan (BED No. 2)
FAR No. 1 – Statement of Appropriations, Allotments, Obligations, Disbursements & Balances
It shall reflect the authorized appropriations and adjustments, total allotments received
including transfers/adjustments, total obligations, total disbursement and the balances of unreleased
appropriations, unobligated allotments, and unpaid obligations of an agency by Fund Cluster and by
allotment class.
FAR No. 1-A - Summary of Appropriations, Allotments, Obligations, Disbursements & Balances By
Object of Expenditures
It shall reflect the authorized appropriations and adjustments, total allotments received
including transfers/adjustments, total obligations, total disbursement and the balances of unreleased
appropriations, unobligated allotments, and unpaid obligations of an agency by Fund Cluster and by
allotment class.
FAR No. 1-B – List of Allotments & Sub-Allotments (LASA)
It shall reflect the Allotments released by the DBM and the Sub-allotments issued by the Agency
Central Office/Regional Office, their corresponding numbers, date of issuance, and amounts by
Allotment class and by Fund Cluster. The total Allotments per this report should be equal to the total
Allotments appearing in the SAAODB (FAR No. 1)
FAR No. 3 – Aging of Due and Demandable Obligations (ADDO)
Page 10 of 21
Shall be prepared by Fund Cluster and shall reflect the balance of unpaid obligations as
indicated in the Obligation Request and the aging of Due and Demandable Obligations as of
year-end.
FAR No. 4– Monthly Report of Disbursements (MRD)
Shall reflect the total disbursements made by department, office or agency and operating unit
by Fund Cluster from the following disbursement authorities: NCA and TRA.
FAR No. 5 - Quarterly Report of Revenue and Other Receipts (QRROR)
Shall reflect the report on actual revenue and other receipts of the agency/operating units for
the current year presented by quarter, and by specific sources consistent with the COA Revised Chart of
Accounts
RESPONSIBILITIES
BFARs shall be prepared and certified correct by:
Budget Officer/Head of Budget Unit
› For the portion of the report pertaining to appropriations, allotments, obligations,
unpaid obligations – not yet due and demandable, unreleased appropriations and
unobligated allotments
Chief Accountant/Head of Accounting Unit
For the portion of the report pertaining to disbursements and unpaid obligations – due
and demandable
Head of each OU, Office or Agency Shall be responsible for the timely submission of the BFARs prescribed in the Circular to the
DBM Offices concerned and to the COA – Audit Team Leaders and Government Accountancy
Sector (GAS)
TIMELINES of submission:
Within 30 days after the end of each quarter
BAR No. 1 (QPRO)
FAR No. 1 (SAAODB)
FAR No. 1-A (SAAODBOE)
FAR No. 1-B (LASA)
FAR No. 2 (SABUDB)
FAR No. 2-A (SABUDBOE)
FAR No. 5 (QRROR)
FAR No. 3 (ADDO) - On or before 30th day following the end of the year.
th
FAR No. 4 (MRD) - On or before 30 day of the following month covered by the report.
PROCEDURES OF SUBMISSION FOR AGENCY W/ CO:
Schools & DOs - direct to COA ATL & DBM-RO cc DepEd-RO & CO within 5 days after the end
of each quarter, for consolidation purposes.
RO shaLl consolidate reports of DOs including ROP & submit to DepEd-CO and COA-GAS within
10 days after the end of each quarter
Page 11 of 21
DepEd-CO prepare department consolidated and submit to DBM-CO and COA-GAS within 30
days after the end of each quarter.
REMINDERS:
COA & DBM shall regularly monitor agency compliance with the reporting requirements
prescribed in this Circular.
PENALTY CLAUSE
6.1 The concerned offices of COA and DBM designated as the recipients of the BFARs shall
notify the agency concerned on the non-submission of the said reports. Pursuant to Section
57, Chapter 6, Book VI of EO 292 and Par. 2, Section 122 of PD 1445, payment of salaries of
the Budget Officer/Head of Budget Unit and the Chief Accountant/Head of Accounting Unit,
or their authorized representatives, who fail to prepare and submit the BFARs shall be
automatically suspended from the time the reports are due until they are received by COA
and DBM.
6.2 In addition to suspension of salary as above provided, any violation of this Joint Circular
without justifiable cause for three (3) consecutive times during the calendar year by the
officials concerned shall be a ground for administrative disciplinary action, subject to
pertinent civil service rules and regulations
EFFECTIVITY: IMMEDIATELY
Budget Accountability Reports (BARs)
BAR No.
BAR No.
BAR No.
BAR No.
BAR No.
12345-
Quarterly Physical Report of Operations
Quarterly Financial Report of Operations
Quarterly Report of Income
Statement of Allotment, Obligation and Balances
Monthly Report of Disbursements
DBM-COA Joint Circular No. 2013-1 dated. March 15, 2013
Annex A - Statement of Appropriations, Allotments, Obligations, Disbursements & Balances
Annex A.1- List of Agency Budget Matrix/ Special Allotment Release Orders
Annex B - Detailed Statement of Current years’ Obligations, Disbursements & Unpaid
Disbursements
Annex C - Summary of Prior Years Obligations, Disbursements and Unpaid Prior Years
Obligations
Annex D - Summary Report of Disbursements
The instructions on the accomplishment of the modified formats for BFARs were further
discussed by Ms. Salcedo, Regional Budget Officer for FAR No. 1, 1-A and B while FAR No. 3,4
and 5 were discussed by Mr. Ben-Hur Maddas, OIC Regional Accountant.
FOURTH DAY: JULY 10, 2014
COA Hour is the meeting of the COA Auditors and the Finance people of the DepEd to be
updated on the latest COA issuances/innovations, to discuss status of compliance on audit findings and
recommendations and the Management Letter for the period from Jan to December, 2013 and to
resolve issues and concerns relative to execution of the budget.
Page 12 of 21
The Management also acknowledged the presence of some Superintendents, their
representatives and some Secondary School Principals , as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Supt. Amelia P. Torallba – Zamboanga Sibugay Division
OIC Supt Tamtailer P. Nandu – Dapitan City Division
ASDS Marcolm F. Borangan – ASDS, Zamboanga del Sur Division
Supt. Victorina G. Perez – Dipolog City Division
Mrs. Helen Tangon – Zambo Norte
Mrs. Celestina P. Lomoljo – SSP II, Liloy NHS
Mrs. Erlinda M. Orilla –SSP 1, Sindangan NAS
Mr. Arnold Z. Dinglasa – SSP 1, Bacungan NHS
Mr. Gerardo R. Montilla – SSP IV, Pinan NHS
Mr. Crisologo L. Singson – OIC-Administrative Officer
Mr. William E. Peralta – Regional Physical Facilities Coordinator
ATL Clydelyn P. Pablo of DepEd RO introduced the newly assumed auditors per COA Memo No.
94-2014-318 to 357 under Team Audit 13 to the DepEd Group as follows:
1.
2.
3.
4.
5.
6.
7.
8.
Ms. Estrella T. Avila - Supervising Auditor
Mr. Julius Aleman - ATM, DepEd RO Group
Ms. Isis Josephine M. Cabrera – ATL, ZDS/Pagadian City
Mr. Enrique A. Francisco, Jr. – ATL, Dipolog/Zambo Norte and Dapitan Group
Ms. Arlyn T. Marcos – ATL, Zamboanga City
Ms. Sonia T. Tan – ATL, Zamboanga Sibugay
Ms. Dolores T. Balagon – ATM, Zamboanga Sibugay
Ms. Ma. Carolina Enriquez – Isabela City
After the introduction, Auditor Pablo discussed on the Summary of Consolidated Audit Findings
and Recommendations for 2013, among, which are the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Improper use of the Petty Cash Fund
Preparation and submission of monthly bank reconciliation statements
Failure to update regularly the Check Disbursement Record (CkDR)
Failure by the Disbursing Officer to submit RCI to the Bookkeeper
Maintenance of a Current Account without proper authority
Unliquidated cash advances
Accountant’s Certification of no unliquidated cash advances
Propriety in the grant of Cash Advances
Deficiency in the maintenance of inventory records and direct charging of procured
inventories to expense account
Failure to prepare and submit the monthly RAAF
Unrecorded properties acquired through donation
Erroneous classification/recording of Acquired Assets
Completed projects still recorded under Construction in Progress account
Reporting difference between property and accounting records
Failure to provide depreciation for School property, Plant and Equipment
Failure to conduct actual physical count of inventory and PPE accounts and subsequent
submission of reports thereof.
Validity of Due to Officers and Employees accounts
Outstanding obligation which represents unremitted amount due to GSIS were not reflected
nor disclosed in the year-end financial statement
Delayed remittance to GSIS, Pag-IBIG and Philhealth
Failure to deduct employee share for GSIS premium contribution
Validity of Hazard pays granted to Division Health Workers/School Nurse
Validity of payment of Loyalty Award granted to officials and employees
Page 13 of 21
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
Irregularity in the monetization of leave credits
Erroneous classification/recording of expense account
Payment of overtime services
Reasonableness of amount incurred for Fuel Consumption
Incurrence of subscription expense even on non-working days
Payments of unrecorded prior year’s expenditure charged to the current appropriation –
Stop paying prior year unpaid obligations. No funds availability prior to issuance of PO but
delivered. Not valid claims.
Payment of professional fees were not deducted with the corresponding amount of
withholding taxes
Incomplete/Insufficient supporting documents/No Official Receipts
Various deficiencies in the liquidation of School MOOE
Deficiency in the Management and Utilization of Balik Paaralan Out of School Youth Adult
(BPOSA) Funds
Deficiency resulting to the understatement in the asset account balance (SEDIP)
Non-compliance to RA 9184
Full disclosure of significant information in the Financial Statements
Delayed submission of vouchers, reports and other required documents
Failure to prepare and submit an Annual Procurement Plan (APP)
Failure to prepare and submit an Annual Procurement Plan for common-use supplies and
equipment (APP-CSE)
Books of Accounts not properly maintained
Submission of Recorded Liquidation reports
Submission of contracts – within 5 working days from perfection of contracts
Submission of Purchase Orders and Notice of Delivery- delayed due to POW has to be
approved by CO yet.
Contracts/Purchase Orders
Erroneous entry of disallowances – reclassify erroneous entries
Accountable Officer not bonded Creation of Bids and Awards Committee – If School BAC is not available, then use the BAC of
the Division Office.
Lapses in the procurement process – Procurement was paid yet units with defects.
Compliance with Gender and Development (GAD) – Implemented by RO
Senior Citizens and Differently-Able Persons – RO had already formulated programs and
projects for Senior Citizens and the Differently-Able Persons
Compliance with Tax laws – all taxes should be remitted.
HIGHLIGHTS:
1. Prohibition of charging of unbook obligations against our current appropriation
2. Compliance of AOMs to prevent its maturity to disallowance.
3. Reiterated the conduct of physical count of inventories especially on our Property, Plant
and Equipment (PPE) which composed 80% of our assets. If this is not complied, they will
be forced to render adverse opinion on our Financial Statements.
4. Reiterate the submission of our contracts of our construction projects within 5 days upon
perfection of the contract for review.
Audit concerns raised and addressed by the COA Team.
1. Unexpended cash balance from funding checks issued by the RO. Will the DO remit the
unexpended balance to RO or will it be remitted to the BTr? Remit the unused/unexpended
balance back to the source agency.
2. Account Due to other Funds and Due from Other Funds in NGAS has no equivalent account in
the UACS. What account shall be used? Use Due from RO (Reg Fund Draw from EPIP deposit to
BTr.
Page 14 of 21
3. What account will be used to take up liquidation and prior year adjustment inasmuch as there is
no more Prior Year Adjustment account in UACS? Use Government Equity Account –Should be
disclosed to the notes to the financial statement.
4. For contract review:
a. Who will transmit the documents for review to COA? BAC Secretariat will prepare
transmittal letter to be signed by the RD.
b. How much is the threshold amount? No threshold amount.
c. Are we allowed to process the payment after the documents are transmitted to COA for
review? Yes, as long as the contract was submitted within the 5 days elementary period.
5. For fund transfer (LDDAP-ADA) with bank charges included in the ADA:
a. Does the DO allowed to use bank charges entry: In the implementation of the LDDAPADA, charges is on the personal account.
b. What amount should be reflected in the Official Receipt of the RO. Separate OR for the
amount payable and for the bank charges because it is a personal account.
CORE GROUP Meeting:
COA Hour was followed by the CORE Group Meeting. It was presided by the Mrs. Elizabeth Tatel,
Chief of the Budget and Finance Division. The Auditors did not attend the said meeting but left an
instruction to update compliance based on the group’s previous meeting. Accountants were requested
to sit in front with their respective Superintendents and/or representative for the latter to be informed
on the status of compliance of their divisions.
Management Letters from the Central Office for the years 2012 and below were taken up one
by one. The Accountants and Bookkeepers were ask to comment on the findings of their respective units
and were made to promise on the submission of their compliance. July 17, 2014 was the due date for
submission of compliance to give ample time for consolidation by the RO inasmuch as the National
Seminar-Workshop will be on July 20-25, 2014. The following is the Summary of Compliance of the
Division Offices and Implementing Units, to wit:
YEAR
COMPLIANCE STATUS
TOTAL FINDINGS/IU'S
2008
TOTAL FINDINGS/IU'S
NOT IMPLEMENTED
PARTIALLY
IMPLEMENTED
FULLLY IMPLEMENTED
TOTAL FINDINGS/IU'S
2010
ISABELA
3
6
4
NOT IMPLEMENTED
PARTIALLY
IMPLEMENTED
FULLLY IMPLEMENTED
2009
ROP
DAPI
TAN
NOT IMPLEMENTED
PARTIALLY
IMPLEMENTED
FULLLY IMPLEMENTED
DIPO
LOG
PAG
ADIA
N
ZAM
BOA
NGA
CITY
ZAMBOAN
GA DEL
NORTE
ZAMBO
ANGA
DEL
SUR
ZAMBOANG
A SIBUGAY
3
2
3
3
3
2
1
2
3
6
3
3
2
3
1
3
2
4
1
3
6
2
7
6
7
4
1
1
4
4
1
1
4
3
1
3
6
2
3
1
5
12
1
6
9
1
6
14
14
6
5
4
1
4
8
3
4
1
5
2
6
11
2
2
10
1
Page 15 of 21
TOTAL FINDINGS/IU'S
2011
NOT IMPLEMENTED
PARTIALLY
IMPLEMENTED
FULLLY IMPLEMENTED
TOTAL FINDINGS/IU'S
2012
NOT IMPLEMENTED
PARTIALLY
IMPLEMENTED
FULLLY IMPLEMENTED
8
2
4
4
1
3
7
1
7
2
4
4
1
2
5
4
1
7
4
2
1
9
2
7
3
4
6
3
DIVISION OFFICES
3
1
4
9
3
10
22
3
1
3
2
3
2
3
1
5
5
15
2
3
4
LAST UPDATE
FEBRUARY 2014
ISABELA CITY
DAPITAN
NO UPDATES AS OF JAN. 17,
2014
DIPOLOG
NO UPDATES AS OF JAN. 17,
2014
ZAMBOANGA CITY
MAY 31, 2014
NO UPDATES AS OF JAN. 17,
2014
ZAMBOANGA DEL NORTE
NO UPDATES AS OF JAN. 17,
2014
ZAMBOANGA DEL SUR
ZAMBOANGA SIBUGAY
MAY 31, 2014
APRIL 2014
PAGADIAN
REMINDER:
1. Don’t wait for the AOM to mature into a Disallowance. Seek help from your respective COA.
If not satisfied with your compliance, then ask as to what is the best thing to do.
Attached is the Status of Compliance on the AOM Findings as of July 31, 2014 of the
concerned Implementing Units (IUs) as committed during the Seminar/Workshop. The Status is shown by
year.
DIALOGUE WITH THE PHILIPPINE VETERANS BANK (PVB) PERSONNEL ON THE REQUESTS
FOR ATMS
Due to various concerns on the requests for ATM Implementation and the time constraint for
100% ATM Implementation which is on September, 2014, the management invited PVB Personnel in the
persons of Manager Norma Cabato and Donnel Oscar Enriquez, In-Charge of ATM applications to
address issues and concerns on ATM applications.
1. Dipolog City Division - submitted ATM applications three to four times but as of to date, no
feedback as to status of application. Comment: The bank has cards pending with them but
can’t be segregated/sorted as to what divisions do they belong. It was requested that the DO
will furnish the bank lists of teachers paid through checks for the latter to sort the cards by
Division. Cards are to be uploaded for forwarding to DepEd RO. Maximum days for
Page 16 of 21
processing ATMS for Zamboanga City based teachers is one month but for Zamboanga
Sibugay and other divisions, it takes two (2) months.
2. 4,000 cards pending for delivery is ready for release. Soft file already submitted to the RPSU.
Some accounts are already uploaded last year but still with zero balance. This was because
the teachers are still paid through checks.
3. Zamboanga City – PVB and other conduit banks ATM machines are offline on Saturdays and
Sundays and Holidays. Comment: ATM Banks are being loaded in the afternoons of every
Fridays. No charges imposed when withdrawing from ATM machines of other banks.
4. Bank Charges imposed on withdrawals from banks in Isabela City will be looked into by the
PVB Management.
5. Activate cards effective August, 2014.
6. Visit the bank to further clear doubts.
DAY 5 – JULY 11, 2014
DBM HOUR
The DBM Team was headed by no less than the Regional Director, Dir. Annabelle C. Echavez.
With her are the staff of the Division In-Charge of DepEd headed by the Chief BMS, Ms Mary Rosslyn
M. Cabanero, with staff Mr. Erwin Marcos, Supervising Budget Management Specialist, Ms. Esperanza
R. Caoile and Ms. Flordeliz May R. Palencia.
RD Garma extended welcome to our very valued partner, the DBM Team headed by RD Echavez
and thanked them for coming over. He further emphasized the role of the Regional Office in this activity,
as follows: “This is an initiative on the part of the Region to assist and guide our personnel in the field as
being the biggest in terms of number in the bureaucracy. The Finance people are the “red blood
corpuscles. Kayo ang gumagamot sa pamumutla ng mga teachers pagdating sa kanilang mga benepisyo’’.
On the other hand, the officers are the “white blood corpuscles’’ that combat infection. He also
appreciated and emphasized the importance of the Superintendents’ presence as it shows their support to
their financial staff and also eager to learn more on financial matters.
Thanked BFD for facilitating the activity. Reiterated also to maximize the use of the RELC
Facilities for which income is for its improvement.
Message of RD Echavez – Thanked RD Garma and staff for the accommodation. Acknowledged
the efforts of Maam Cabanero’s Team especially on the timely preparation and delivery of the Notice of
Cash Allocation (NCAs) to the DepEd Implementing Units.
RD Garma took the opportunity to inform DBM RO that the agreements discussed and reached
during the R-AMT Meeting last June 10, 2014, were already translated into Regional Memorandum No.
34, s. 2014 dated June 13, 2014 per our commitment for compliance. DepEd has also created a website
and a Secretariat exclusive for DBM financial reports.
CBMS Mary Rosslyn M. Cabanero informed and discussed on the following:
Item no. 1
NCA releases for operating requirements for 2nd Semester, 2014
(July to December 2014)
-
Cover only the following:
1. CY 2014 comprehensive release for PS and MOOE
2. RLIP
3. Newly filled positions (PS and RLIP)
Page 17 of 21
-
Item no. 2
Do not include Accounts Payables (Prior Years and Not Yet Due and
Demandable)
1. A/Ps will be released separately as they will be subjected to validation
and further evaluation
2. The newly organized Regional Monitoring Team on Financial
Accountability Reports (RMTFARs) constituted under DepEd Regional
Memorandum No. 34 s. 2014 shall go over the A/Ps reflected in the
consolidated Revised MDP as of May 31, 2014 against the
accountability reports as of June 2014 of concerned IUs. DBM RO IX
will release NCAs for A/Ps in August or earlier after the above Team
has evaluated and reviewed them, and same have been endorsed by
the DepEd IX Regional Director to DBM RO IX.
3. All IUs to reckon their allotment balance and not simply their cash
balance
Update on unbooked obligations per COA letter to DBM Secretary Abad
dated March 7, 2014 which states
“This Commission shares the view that payment of unbooked obligations
violates Section 29 (1), Article VI of the Constitution; hence, our auditors
cannot certify as to their validity. The claimants may file their individual
money claims with this Commission pursuant to the general audit
jurisdiction of this Commission to settle “all debts and claims of any sort
due from or owing to the Government” under Section 26 of Presidential
Decree No. 1445, and following the procedure outlined under Rule VIII of
the 2009 Revised Rules of Procedures of the Commission on Audit. It is,
likewise, reiterated that the provision on unbooked obligations be deleted
in subsequent GAAs.”
This letter contradicts Section 17 of 2014 GAA on the use of the Current
Year’s Appropriations which states that provision on unbooked obligation be
deleted in subsequent GAAs, and implementation of said section shall be subject
to the guidelines to be jointly issued by DBM and COA.
(provide copy to DepEd RO IX)
Item no. 3
DepEd approved Rat Plan and its implementation
Roles of DBM ROs:
1. Validate List of Retirees under EO 366 received from DBM CO against
List to be submitted by DepEd RO
2. Process NOSCA, SARO and NCA once requests are received from
DepEd RO
3. Suggest for a meeting with DepEd RO IX after it has prepared a
Comparative Matrix of the Existing Staffing Pattern and Agency Staffing
Action per approved Rat Plan
Item no. 4
Creation of Non-teaching/Financial Staff position (Bookkeeper
Disbursing Officer positions) for DepEd IX IUs
-
Item no. 5
and
The proposals were not in order for various reasons so we wrote DBM CO.
DBM-SPIB coordinated with DepEd CO. DBM RO IX was verbally informed
that concerned Schools Divisions/IUs received emails from DepEd CO for
compliance of standard requirements and submit corrections. Please comply
as soon as possible.
Issuance of Organization Codes to newly created schools
Page 18 of 21
Per letter of DBM Undersecretary Luz M. Cantor dated May 7, 2014,
organization codes may be assigned to newly created schools for budget
preparation purpose only but will not yet be activated for budget execution, i.e.
direct release of funds pending recommendation from DepEd CO and
compliance with requirements under DBM-DepEd Joint Circular No. 2014-1
(Guidelines on the Direct Release of Funds to DepEd Regional Offices and
Implementing Units (IUs)).
Item no. 6
Newly issued COA-DBM Joint Circular No. 2014-1dated July 2, 2014 on
Guidelines Prescribing the Use of Modified Formats of the Budget and
Financial Accountability Reports (BFARs)
-
For our study
POINTS OF CLARIFICATION:
1.
Supt. Pedro Melchor Natividad of Zamboanga City Division – Zamboanga City Division has
a pending unpaid 3 million prior year step increments of teachers. Can we pay these teachers?
RD Echavez replied: At this point of time, compute the differentials and pay only the current
year salary adjustments. Then adjust the salary of the teachers to its adjusted current rate.
2.
DepEd has not submitted yet the Comparative Matrix of the existing Staffing Pattern and the
Agency Staffing Action per approved RAT Plan, not even a request.
RD Garma clarified to DBM that the Comparative Matrices were already submitted to
Central Office as per their instruction and under the guidance of the Change Management Team
(CMT). There was no signal or instruction yet to submit to DBM. The submitted matrices will
still be evaluated by the CSC if the placements did not violate the three step salary grade
(Quantum Leap). That was the reason why DepEd RO IX has not submitted to DBM yet. But if
DBM wants, DepEd can give you a copy. He corrected the impression that DepEd RO IX has not
done anything on that matter, in fact, it was Region IX who first submitted to CO. There were
several revisions already, five (5) times for corrections and revisions. We would want that what
we will submit to DBM is just the same as evaluated and approved by our Central Office. CO
would like to submit it on a national level then DBM CO will cascade it to DBM RO. Divisions
should not go directly to DBM. Should first ask the Regional Office or the RD, ask or text RD.
3.DepEd RO submitted a request for issuance of NCA for salary differentials due to ERF, MTs and
reclass with NOSCA approved in 2013 charge to 2014 appropriation for the purpose. Cannot be
charged to MPBF, because once you access MPBF, you will be pre-empted to use the savings. Can
we integrate it already in the 2015 payroll?
Yes, because whatever deficiency, DBM will
release the funds. As long as you have the legal basis to adjust which is the NOSCA, then integrate
it in the payrolls.
BUDGET ISSUES AND CONCERNS:
1. Are we assured that once the PSIPOP is uploaded as of November 30, 2013, it is already integrated
in the funding requirements for FY 2015 Budget? How do we know? Yes, in fact the deadline was
extended up to May, 2014. Through the NEP 2015.
2. Fund for salary adjustments for ERFs, MTs and Reclass was already issued SARO up to December
2014. Can they be integrated in the regular payroll in the PSS? Yes, if allotment is deficit, then
submit a Special Budget Request to DBM for SARO and NCA and include it in your MDP.
3. Delayed issuance of ARA by the GSIS also delays the integration of the new positions to the
General Payroll. Comment: DBM RO IX gave a word to help DepEd RO IX on this matter by
making representations with the GSIS.
Page 19 of 21
4. Upgrading of Disbursing Officer I items to II for Siay, Buayan and Bayog NHSs. Upgrading of
Bookkeeper to Senior Bookkeeper for Siay NHS. Comment: Submit as soon as possible requests for
upgrading of positions with supporting justifications.
5. Should we adopt the new BFAR forms for the first and second quarters of 2014? Comment: The new
forms will be used in the third and fourth quarter reports.
6. Affected RAT Plan retirees were renewed of their appointments up to September, 2014. Request for
realignment of funds for the third quarter should be coursed to DepEd CO to DBM CO then the
same will be cascaded to the respective DBM ROs.
7. Constraints in the implementation of E-MDPS
a. Opening of accounts under the 3 government servicing banks. In cases where the creditor
opens an account not the same with the servicing bank of the agency, then he has to pay the
bank charge for the transfer of funds and also the charge of the bank where the fund was
transferred. This is a disadvantage on the part of the creditor/payee.
i. Internal Creditors
ii. External Creditors
Comment: Creditors are encouraged to open accounts the same with the agency servicing
banks to get rid of the charges.
BIR HOUR
Resource Persons from the BIR Regional Office IX were invited to update the group on new
issuances/procedures on tax remittance and to address/resolve issues and concerns on BIR matters in the
persons of :
1. Marcelina D. Wee Sit – Revenue Officer II
2. Alexander A. Jikiri – Revenue Officer I
3. Rechedel M. Grafia – Revenue Officer I
Withholding Tax System - old law still apply except the submission of diskettes. Previously, less
than 10 employees, no need to submit diskette. Now, regardless of the number of employees/payees, you
really have to submit hard and soft copies to BIR. Tax Law – an effective tool of collection for the
sustenance of the government. Salaries came from taxes collected and all the privileges we are enjoying.
Who is a withholding agent? Any person or entity who is in control of payment, therefore required to
withhold and remit taxes to the government. Duties and obligations of a withholding agent: 1. Register 2.
Withhold from salaries and payments (1601 Expanded withholding) 3. Go to BIR to validate PIN
numbers 4. Remit to accredited banks 5. File withholding tax returns. 6. Issue withholding tax
certificates to suppliers. Reiterated the importance to remit taxes on time.
BIR ISSUES AND CONCERNS:
1. Form 2316 should be filled up. Names of the children and dates of birth should be filled up.
Exemptions are not updated by the teachers There should be a system in the filling up of forms.
The original copy should be submitted to BIR. Form 2305 already submitted to the DO so the DO
should update Form 2316 based from 2305.
2. Affected RAT Plan retirees are now hired as Contract of Service (COS). What should be the
Withholding tax for Contract of Services? 2% EWT based on services rendered (Form 1601B)
and 3% business tax (non-vat individual Form 1600).
3. What if the retired employees refused to register as non-VAT individuals? The retirees should
update their BIR profile from employees before to self-employed now. The Office should still
remit the amount withheld. BIR will just write the concerned COS employees.
Page 20 of 21
4. Age limit to be a dependent is 21 years old. The dependent should not be reflected already on
the year he reached the age of 22 years old. Computation of taxes is by per taxable year.
5. Updating of 2305 – When their dependents reached 22 years old, the teachers refused to update
their 2305. What can be done to delete their dependents in their exemptions. Comment : When a
teacher refuses to submit any documentary papers for that matter, then compute their withholding
tax to zero dependents.
Minutes Taken By:
MARIA CONCEPCION R. SALCEDO
Administrative Officer V (Budget)
Date: August 4, 2014
JENNIFER L. PINEDA
COS
Date : August 4, 2014
JOSEPHINE Q. ANDALAJAO
COS
Date: August 4, 2014
NOTED:
ELIZABETH B. TATEL
Chief Administrative Officer – Finance
Page 21 of 21