ACTION PLAN MONITORING TOOL. Prepared by: Mezanie M. Andres Reviewed by: Concepcion M. Caldit Approved by: Connie G. Benedictos. Agency Action Plan

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1 Sector: NGS SUCs and Other SAAs Team: 04 Agency Audited: Romblon State University Audited Period CY 2016 AAR Date: April 28, 2017 Ref. Audit Observas Audit Recommendas The validity and existence of We recommended that: the Property, Plant and a. both the Accountant and the Equipment (PPE) with total Supply Officer maintain the carrying value of prescribed property records 199,227, as of yearend, and ensure proper could not be fully reconcilia as regularly as ascertained due to a) required; unreconciled difference of b. the Supply Officer report the P27,416, in the results of the annual physical balances of the accounts inventory on the prescribed between General Ledger and Report on the Physical Count property records; b) nonconduct of Property, Plant and of appraisal of those Equipment (RPCPPE) in the PPE to determine their (Appendix 73 of GAM, Volume revalued amount; and c) III) and submit the same to the inclusion in the PPE accounts respective offices concerned; of tangible items below the and capitaliza threshold of c. the Accountant (i) reclassify P15, amounting to tangible items below the P1,735, contrary to the capitaliza threshold of provisions of the Government 15, as semiexpendable property; and (ii) Manual (GAM), Vol. I. submit to DBM and COA the list of all items reclassified pursuant to DBM Circular Letter No dated July Inventory accounts with an aggregate amount of P41,545, as of December 31, 2016 were doubtful as to actual existence due to a) unreconciled difference of P40,978, between accounting and property records; and b) nonavailability of complete records 20, We also recommended that the University cause the conduct of appraisal of all its property, plant and equipment as required under Philippine Standards (PAS 16) and COA Resolu No dated March 17, University : a. instruct the Inventory Committee to prepare the Report of Physical Count of Inventory (RPCI) in the prescribed form and submit the same to the Audit Team within the prescribed period; b. require the Supply Officer to Agency Supply Office Supply Office Prepared by: Mezanie M. Andres Reviewed by: Concepcion M. Caldit Approved by: Connie G. Benedictos to be Equipment property card is maintained in the unit For submission in January 2018 RCPI in the prescribe form for submission in January 2018 RSMI is properly

2 Ref. availability Audit of Observas complete records require Audit Recommendas the Supply Officer to at the Office for prepare the RSMI and other the accounts. These were all prescribed forms in GAM, Vol. in viola of Sec 102 of II, which shall be promptly and ial Decree No regularly submitted to the and the Government Accountant for recording; and Manual, Volume I. c. remind the Accountant to (i) maintain Supplies Ledger Cards; (ii) record regularly the related expense account upon issuance of the inventories based on the RSMI; and (iii) ensure that accounting records are reconciled at any given time with the property records. Despite constant reitera in previous years audit reports, University : the University has continuously a. failed to submit within the initiate a meeting with all prescribed period the required accountable officers financial reports, disbursement concerned and find ways to vouchers, payrolls, receipts address the perennial problem and other financial documents on delayed submission of contrary to Secs 100 and accounts and reports; and 122 of ial Decree No. b. consider the hiring of 1445 and Sec 7.2.1(a) of addial personnel to COA Circular No augment the present dated September 15, 2009 manpower in the accounting thus, precluding the Auditor unit and ensure a well-defined from performing timely review work assignments, duties and and evalua of the Agency s responsibilities so as to related transacs. accomplish the tasks/reports in time for their submission within the prescribed period. Agency HRMO to be properly submitted to the Sec for recording Bank Reconcilia Statements for CY 2016 were not timely submitted in contraven to COA Circular No A dated March 4, 1992, thus, Cash-in-Bank balances could not be accurately verified and ascertained. University remind the Accountant to ensure timely prepara and submission of the monthly Bank Reconcilia Statements and effect the necessary adjustments in the books for the reconciling items so as to arrive at the correct cash balance. For the meantime, we also recommended that the University consider the hiring of addial personnel to augment the existing workforce in the Jerome Fesalboni (Accountant ) was hired for the purpose

3 Ref. Audit Observas the existing Audit Recommendas workforce in the Department. Collecs totaling We therefore recommended 777, remained that the University : undeposited as of year-end in a. viola of Sec 69 of officially designate the ial Decree No. 1445, Disbursing Officer of the thereby exposing government University as Collecting Officer funds to risk of loss or of Sibuyan Campuses and misappropria. have him properly and adequately bonded in accordance with law; and b. ensure to implement measures for timely recording and deposit of collecs as prescribed in DBM DOF Joint Circular 1-81 so as to reflect the accurate cash balances in the financial statements. The parcels of land with recorded value under the Land University : account of 14,879, as a. require an independent survey of year-end are not titled, thus of all land and land rights to ownership thereof could not be determine the actual area of properly established. the agency-owned lands and cause the immediate titling of all the lots to establish absolute ownership over the properties; and Agency and Copy of Communica s forwarded to COA dated 6/17/2017 to be Mr. Alen Gaa is designated as disbursing Officer in Sibuyan and Copy of Communicat ions forwarded to COA dated 6/17/2017 b. direct both the Accountant and the Supply Officer to maintain and update Property, Plant and Equipment Ledger Cards (PPELCs) and property cards, respectively, and reconcile them as regularly as required so that adjustments shall be effected as necessary. comp[lied Only documents in the Supply Office is intact Outstanding cash advances We reiterated that the for all funds accumulated to as Management, through the much as 7,494, as of Accountant, (a) take extra December 31, 2016, of which 725, have remained effort to demand the immediate liquida of all outstanding cash outstanding for over five years advances from the concerned due to management's failure to officials and employees pursuant strictly enforce the guidelines provided under Sec 89 of ial Decree No to COA Circular Nos and dated February 10, 1997 and November 28, 2012,

4 Ref. ial Audit Observas Decree No Audit and November Recommendas 28, 2012, and COA Circular No respectively, (b) henceforth, dated February 10, 1997 in the require the refund of all cash granting and liquida of advances which are no longer cash advances within the needed or has not been used for a prescribed period. period of two months; and (c) impose sancs prescribed in the Circulars for non-compliance Balances of various cash, receivables, inventory and liability accounts as of December 31, 2016 showed abnormal balances totaling 476,881.86, thus, rendered the reliability of the accounts doubtful. thereof. We further recommended that the University require the Accountant to: a. ensure the timely liquida of cash advances and that no addial cash advance is granted to officials and employees unless the previous cash advance given to them is first settled and fully liquidated; and b. exert extra effort to evaluate the dormant accounts amounting to 725, and initiate the proper disposi of the account. University instruct the Accountant to analyze the accounts with negative/abnormal balances and ensure appropriate adjusting/correcting entries are made and corrective measures are implemented to avoid the recurrence of the same deficiency in the future. Non-moving accounts with a cumulative amount of University Accountant (a) exert P1,320, remained in the efforts to locate pertinent books of accounts for several documents relative to these years now and their validity receivables and payables to could not be ascertained due establish their validity and to lack of supporting existence; (b) send demand documents and records thus, letters to persons concerned for casting doubt on the reliability the full settlement of the accounts of these accounts. Also, this with the University; (c) trace back is a clear case of infidelity in previous records of long the handling of public records. outstanding obligas to determine which among the payables are to be retained or reverted; (d) pay those found valid in order to clear the books of these payable accounts; and (e) Agency to be

5 Ref. Audit Observas these Audit payable Recommendas accounts; and (e) with the approval of the Board of Regents, revert/reclassify to the Accumulated Surplus account recorded obligas without valid documenta and/or which have been outstanding for two years or more and against which no actual claim has been filed. The University is not compliant in the repayment of its loan University allocate obligas with the CHED funds for the settlement of its loan amounting to P1,000, obligas of P1 million with the under the CHED Higher CHED. Educa Development Fund (HEDF) which remained overdue for a period of 11 years due to losses incurred by the University in the funded Income Generating Project. Agency to be Alloca for the purpose is scheduled this coming fiscal year that will be charged agianst income The University failed to fulfill its role as co-implementer of Joint University (a) ensure Memorandum Circular (JMC) compliance with all the No in view of the nonposting of the quarterly ESGP-PA, in particular the requirements of the JMC on financial and accomplishment posting of the quarterly reports on reports in the official website of financial and physical the agency, thus may affect accomplishments of the program, the transparency of the including the list of studentgrantees in the official website of program to the disadvantage of the general public. the SUC; and (b) instruct the Project Management Office to request the IT Department to post the said reports of the program for Copies of perfected contracts/purchase Orders (POs) and their supporting documents were not submitted within the prescribed period as provided under COA Circular dated February 12, 2009 thus, prevented the timely review and rendi of relevant audit results. Payments for the purchases of goods, equipment and services totaling 197, lacked sufficient transparency purposes. We therefore reiterated our recommenda that the University together with the BAC and its Secretariat, initiate control measures to ensure strict adherence to pertinent COA rules and regulas in the submission of POs/contracts and supporting documents to facilitate timely review and evalua and immediate communica of defects and deficiencies noted therein, if any. University, through the Accountant, (a) require the concerned staff to submit PMO BAC/Supply Office Posted as of October 2017 and as of December 28,2017

6 Ref. Audit Observas Audit Recommendas lacked sufficient concerned staff to submit documenta contrary to complete supporting documents pertinent provisions of for payments made to various Republic Act No and its suppliers totaling P197,429.00; Revised Implementing Rules and (b) henceforth, ensure and Regulas (RIRR), complete documenta on all Sec 4(6) of ial procurement transacs Decree (PD) No and pursuant to the provisions of PD COA Circular No No and COA Circular No. dated June 15, 2012 thus, the dated June 14, 2012 to validity and propriety of ascertain the validity and propriety reported disbursements could of disbursements. not be ascertained. Agency to be Monetiza of leave credits totaling P2,866, by 100 officials and employees of the University for CY 2016 was not in accordance with the requirements set forth under Secs 22 and 23 of Rule XVI of the Omnibus Rules Implementing Book V of Executive Order (EO) 292, otherwise known as the Omnibus Rules on Leave, thereby affecting the validity of the disbursements incurred. The University s alloca on GAD of 10,300, was within the required five percent of the total approprias of 225,715, However, only 4,083, or 40% of the GAD planned activities were undertaken in contraven to Sec 2.4 of DBM, NEDA and PCW Joint Circular No dated April 5, Also, the approved GAD Plan and Budget, with the corresponding Accomplishment Reports, were not promptly furnished to the Auditor thus, timely evalua of the projects could not be made. University instruct the: a. Human Resource in-charge to determine the available balances of employees leave credits and update the leave cards to exclude sick leave credits unless the requested monetiza is for illnessrelated purposes; and b. Accountant to ensure that payrolls in payment thereof are duly supported with proper documenta pursuant to COA Circular No dated June 14, We reiterated prior year s recommenda that the University instruct the GAD Focal Person to: a. prepare GAD Plans and Budget and GAD Accomplishment Report earlier and submit it to the Commission on Audit not later than the dates prescribed by COA Circular No for timely analysis and evalua; and b. coordinate with the heads of responsible units/offices on the execu of GAD programs, projects and activities based on the approved plans and budget. Recommend a was reiterated by the RSU Coordina has been initiated and established HRMO GAD office/char maine Gaa GAD coordinators & Heads of units as of 3/3/17 for the date when COA received the communicat ion as of 3/3/17 for the date when COA received the communicati on

7 Ref. Audit Observas Audit Recommendas Agency to be Agency sign-off: _DR. ELVIN F. GAAC/Vice for Academic Affairs Name and Posi of Agency Officer 28-Dec-17 Date Note: may either be (a) Fully Implemented, (b) Ongoing, (c ) Not Implemented, (d) Partially Implemented, or (e ) Delayed