2009 Audit Findings
Commission on Audit
1
Operations Audit
2
Finding - GASTPE


The implementation of the GASTPE for SY 2009 –
2010 through the ESC and EVS for SY 2009-2010
showed no significant effect of decongesting the
class size of public high schools particularly those
experiencing shortage of teachers and
instructional rooms.
The Division Offices have no available data
regarding the program due to their noninvolvement and of the schools in the program’s
activities thus finding it difficult to gather,
understand and assess the extent and success of
program implementation
COMMISSION ON AUDIT
3
GASTPE

Late arrival of the vouchers under the
Educational Voucher System (EVS) led to
its distribution directly to participating
private schools and were awarded to
students coming from public schools
regardless of whether they met the
required qualifications.
COMMISSION ON AUDIT
4
Recommendation

We recommended that DepEd:



in coordination with FAPE revisit the guidelines
especially on the allocation of slots for graduates of
public schools over those from the private schools.
the Principals of highly populated schools and those
experiencing acute teachers and classroom shortages
in coordination with the GASTPE Coordinator in the
Division Office recommend qualified deserving
students to become ESC/EVS grantees.
DepEd Central Office consider increasing EVS slots for
the Division Office of Mandaluyong and the schools be
vigilant in the submission of their request so that all or
more EVs applications could be accommodated.
COMMISSION ON AUDIT
5
Recommendation
-
We recommended that the School Principals
and the Division Office need to take active
role in the dissemination of the program to
widen information to students and parents in
order to maximize the availment of the
program for the benefit of the students, the
private schools and the public schools. The
GASTPE Coordinator monitor the submission
of reports from the private schools regarding
the status of the ESC and EVS scholars.
COMMISSION ON AUDIT
6
Furniture and Fixtures

Timelines of the DepEd Desk/Armchair Project
amounting to P80,141,663.06 for 2008 and 2009
were not met due to a) delayed release of funds
from DBM, b) delayed execution of the
procurement process contrary to the provisions
under the Revised Implementing Rules and
Regulations (IRR) of RA 9184, c) late deliveries by
contractor/s, d) deficiencies in the workmanship
and materials used on the delivered items and e)
non conformity with the prescribed designs under
the DepEd School Furniture Program.
COMMISSION ON AUDIT
7
Furniture and Fixtures




We recommended that Management of DepEd RO
and the aforementioned Division Offices:
a. make representation with the DBM for the prompt
release of subsequent program funds of RO;
b. instruct the RBAC to carry out procurement
activities in accordance with Revised IRR of RA No.
9184 ;
c. ensure that the delivered and accepted items are
in good order and condition;
COMMISSION ON AUDIT
8
Furniture and Fixtures
 notify the concerned contractors to either rectify
the defects or replace the defective items
delivered following the standard DepEd
specifications and the Regional/Division Office
requirements for materials to be used, if any;
 impose sanctions and applicable liquidated
damages on claims for payment for the late
deliveries; and
 determine acceptability of items with changes in
the prescribed designs of the DepEd with due
consideration to cost and durability.

COMMISSION ON AUDIT
9
Gender and Development

The Region and its Division Offices did
not prepare and submit GAD Plan and
Budget as provided under Section 29 of the
General Provisions of the 2009 GAA and
the implementing guidelines resulting to
non-implementation of
programs/projects/activities that will
contribute to the attainment of our
country’s international commitment to
pursue women’s empowerment and gender
equality.
COMMISSION ON AUDIT
10
Recommendation
We recommended that:
 a. The and Division Offices prepare a GAD Plan and Budget
using the prescribed format under Joint Circular 2004-1. Only
programs, activities and projects that directly address gender
issues and concerns should be included. The GAD Plan should
be submitted to NCRFW for the required review and
endorsement to DBM.
 b. The Regions and Division Offices allocate at least five
percent of their total appropriations.
 c. An Annual GAD Report of Accomplishment be prepared and
submitted. The report should contain the actual
accomplishments of the targeted GAD activities with
corresponding amount spent thereon.
COMMISSION ON AUDIT
11
IT Equipment

Computer units and related items
purchased out of the President’s Social
Fund amounting to P9,999,880.00 were not
in conformity with the Division Office’s
proposed hardware and software package,
hence, not fully utilized for the maintenance
of School Integrated Records Management
Database and Information System as
confirmed by 16 of the 22 recipient schools
validated.
COMMISSION ON AUDIT
12
IT Equipment




We recommended that the Officer in Charge of the Division of
City Schools :
Explain why the specifications per proposal was not the same
with the items approved in the contract;
Verify from and ensure that recipient schools utilize the
computers units delivered in accordance with the proposed
eMS-SBP; and
Monitor the performance of the Trading Company as to the
terms and conditions of the contract specifically on the
installation of the software, utilization by the 22 recipient
schools of the software as intended, licenses for pre installed
Windows XP or Vista and product warranties.
COMMISSION ON AUDIT
13
Financial and
Compliance
14
Cash Accounts

The Region’s Division Offices and some of
their Secondary Schools subscribe to the
practice of establishing Current Accounts
without proper authority, to deposit funds
received from grants/sponsorship/donations
and transfers from the MDS account of
unutilized balances of Notices of Cash
Allocations (NCAs).
COMMISSION ON AUDIT
15
Recommendation

We recommended that management to
implement a sound cash management
system by stopping the practice of
transferring unused balances of NCAs to
current account, without proper basis, or
otherwise obtain proper authority from the
Permanent Committee on the maintenance of
separate accounts for grants and donations
as well as for the utilization of the same.
COMMISSION ON AUDIT
16
Cash In Bank

Audit of Cash in Bank-Local Currency,
Current Account disclosed that balances of
various collections totaling P70,074,073.63
were not remitted to the National Treasury,
contrary to Section 22 of Manual on NGAS
Volume I, Section 2 of COA Circular Letter No.
2004-04 and the General Provisions of GAA,
and exposing funds to possible misuse
COMMISSION ON AUDIT
17
Cash in Bank

We recommended that management remit
to the National Treasury the above funds
in compliance to the aforementioned
regulations and Section 2 of COA Circular
Letter No. 2004-004 dated October 5,
2004, and hindering the risk of misuse of
these funds
COMMISSION ON AUDIT
18
Payroll Fund


The Payroll Fund for teacher’s salary and
receivables for deposit to the payroll fund recorded
by the Regional Office is not reconciled with the
corresponding liabilities for net pay and salary
deductions for remittance to GSIS, HDMF, Philhealth
and Private Lending Institutions because of lack of
adequate recording and reconciliation procedures
resulting in a difference of P23,745,629.42.
Delayed payment of salaries and other benefits due to
continued preparation, processing and payment of
supplementary payrolls in the Regional Payroll Service
Unit (RPSU)
COMMISSION ON AUDIT
19
Cash – Payroll Fund




We recommended the following:
Require the Accountant to adjust the receivable Due from
Operating Units for salaries already remitted by the OUs. Remit
the excess cash in the current accounts of the payroll fund to
the Bureau of Treasury.
The Head of the Budget and Finance Division improve the
recording and reconciliation procedures in taking up receipt of
cash remittance by the OUs to assure correct and complete
recording in the books of accounts.
Management to submit explanation as to the maintenance of
six current accounts for payroll fund instead of only two
current accounts required in DepED Order No. 37 s. 2004 as
amended
COMMISSION ON AUDIT
20
Cash Advances
1.
Cash advances to officers and employees
amounting
to
P40,210,715.06
remained
unliquidated at year end even if the purpose for
which these were granted have already been
served, primarily due to lack of monitoring of
liquidation and inability to complete supporting
documents contrary to the pertinent provisions of
COA Circular 97-002.

COMMISSION ON AUDIT
21
Cash Advances
We recommended that:
 a. The Accountable Officers immediately settle their unliquidated cash
advances.
 b. Refrain from granting additional cash advances unless the
previous ones are first liquidated.
 c. Impose sanctions on accountable officers that fail to comply with
the timeframe for submission of liquidation requirements by
withholding/suspending their salaries pursuant to Executive Order No.
248 as implemented by COA Circular No. 96-004.
 d. Monitor closely utilization, immediate liquidation and prompt
recording of liquidation of cash advance.
 e. Request for write-off the cash advances which have been
outstanding and non-moving for more than five years after complying
with the guidelines set forth under COA Circular No. 97-001 dated
February 5, 1997. (DO-Mandaluyong).
COMMISSION ON AUDIT
22
Downloading of MOOE

Allocation of MOOE was not downloaded to elementary
and secondary schools as of Dec. 31, 2009 due to the
failure of the DOs to release regularly the intended
MOOE funds through cash advance

Accumulation of unliquidated cash advances for MOOE
due to non submission of vouchers for pre-audit

We recommend that MOOE allocation be immediately
released to schools to attain the objective of empowering
school principals.
COMMISSION ON AUDIT
23
Recording of Furniture and
Fixtures

Procured school tables and chairs
amounting to P9,226,403.41 were carried in
the books of the Division Offices as
Furniture and Fixtures (Account 222)
instead of as Other Supplies Inventory
(account 165) or Other Supplies Expense
(account 765) upon acquisition and
issuance respectively resulting in
overstatement of assets and
understatement of Other Supplies
Inventory or Other Supplies Expenses.
COMMISSION ON AUDIT
24
Construction – in - Progress

Completed constructions/rehabilitations amounting to
P258,786,758.57 was not reclassified to School Buildings
account but remained in Construction-in Progress (CIP)
account contrary to Paragraph 2, Section G.1 of the Manual on
the National Government Accounting System (NGAS), Volume I

Conversely, partial billings for constructions and major repairs
of school buildings/classrooms at the DO were outrightly
debited to the School Building and Other MOOE accounts
instead of CIP resulting in the understatement of CIP account
by P21,798,349.79 and overstatement of School Buildings
account by P P17,795,690.17 and MOOE by P4,002,659.62.
COMMISSION ON AUDIT
25
Reciprocal Accounts

The reciprocal accounts of the Regional Office are not
reconciled with that of the Operating Units, with a net
difference of P46,054,516.23; thus, affecting the fair
presentation of the financial statements.
We recommend:

Require the Accountants of the RO and OUs to prepare
schedules of the reciprocal accounts and reconcile the
difference.

b. The Regional Accountant draw a JEV to correct the
balances of accounts affected after reconciliation.

c. Thereafter, require the Accountants to prepare a regular
periodic quarterly reconciliation at least quarterly to
immediately correct any discrepancies noted.
COMMISSION ON AUDIT
26
Expenses
Subsistence Allowance
 Claims of the Division’s school health and nutrition
personnel of the City and health workers of the
Division Offices pertaining to Subsistence Allowance
exceeded the prescribed rate set by Republic Act No.
7305 (Magna Carta for Health Workers) and its
Revised Implementing Rules and Regulations (IRR)
by 100 percent, thereby incurring overpayment in the
total amount of P1,062.650.00.
COMMISSION ON AUDIT
27
Expenses
Mobile/Communication

Inadequate management controls on the use of
mobile phones and entitlement to cellular cards by
the Regional Office Proper and the Division Offices
provided no sound basis over the incurrence of
such expenditures. In like manner, the DepEd
ROP incurred overpayment of call card allowance
in the total amount of P341,284.41 which were
either in excess of the monthly allocation or
without authority.
COMMISSION ON AUDIT
28
Expenses
Training
Audit of liquidation reports on the conduct of
Training Program showed that the approved
budget estimates for travel expenses were
excessive by 63 percent. Conversely,
disbursements for professional
fees/honorarium were excessive by 24
percent as well as supplies and materials
including training kits by 242 percent.
COMMISSION ON AUDIT
29
Expenses
We recommended thatTRAINING


Management officials spearheading the trainings plan ahead
all activities to be conducted during the year including the
staffing and needed supplies, to be realistic as possible,
taking into consideration the requirement of the end-users.
Include in the DepEd’s Annual Procurement Plan the supplies
requirements for the efficient discharge of its functions and
daily operations.
Strictly adhere to the guidelines that there must be canvass
from three reputable suppliers for procurement of supplies
and materials to obtain the most economical and reasonable
price.
COMMISSION ON AUDIT
30
Expenses
We recommended thatTRAINING
Supplies and materials procured be duly received by the
authorized end-users and inspected by authorized
officials.
Ensure that transactions are within the authorized limits and
for purposes originally approved;
Management prepare uniform guidelines on the grant of honoraria to
the resource persons, assessors, facilitators and coordinators
and within the rates prescribed under existing regulations i.e.
based on the actual number of lecture hours. Any increase in
rate should be properly justified and approved by authorized
officials.
COMMISSION ON AUDIT
31