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Date Posted: 19:36:32 10/18/03 Sat
Author: scavenger
Subject: THE COA REPORT 1999 (FYI)

PART I - AGENCY BACKGROUND

Romblon State College is one of the oldest learning institution in the Southern Tagalog Region. Founded in 1914 as the Odiongan Farm School, the school has undergone series of conversion until the passage of Batas Pambansa Blg. 393 dated May 13, 1983 renaming the school of what is known today as the Romblon State College.

Batas Pambansa Blg. 393 defines the philosophy and mission of the College. Section 2 of the Charter states that the College shall �primarily provide higher technological, professional and vocational institution and training in science, agriculture and industrial fields as well as short-term technical vocational course. It shall promote research, advance studies and progressive leadership in its areas of specialization.�

ORGANIZATIONAL SET-UP

Romblon State College is presently under the able leadership of
Mr. Ricardo A. Wagan, Officer-in-Charge and concurrently President of the Laguna State Polytechnic College, vice Mr. Victorino L. Aguila who served as College President for 26 years.

For the year 1999, the College registered a total workforce of 167 employees consisting of 148 regular employees and 19 casual employees.

A detailed listing of employees assignment in the different areas of operations are hereby presented below:

Administration _ _ _ _ _ _ _ _ _ _ 44

Higher Education _ _ _ _ _ _ _ _ _ 111

Auxiliary _ _ _ _ _ _ _ _ _ _ _ _ _ 11

Advance Education _ _ _ _ _ _ _ _ 1
------
167
===

Aside from the regular workforce presented, the College is also governed by a Board of Trustees. The Board of Trustees is empowered to make policies and decisions consistent with the mandates and objectives of the school and in line with Republic Act 8292, otherwise known as the �Higher Education Modernization Act of 1997�. The Act provides for a uniform composition and power of the governing boards, the manner of appointment and term of office of the President of Chartered State Universities and Colleges and for other purposes.

MAJOR ACCOMPLISHMENTS

The major accomplishments of the agency vis a vis its plans and targets for the year 1999 were verified and validated on a test basis as follows:

Programs/Project Targets Accomplishments % of Accomplishment

On Educational Program

Graduate 155 155 100%
Undergraduate 6,000 6,000 100%
Secondary 691 691 100%
--------- -------- -----------
Total 6,846 6,846 100%
===== ==== =======

As gleaned from the foregoing, the College registered a 100% accomplishment on the targeted number of enrolment for the year.

On Other Related Programs and Projects

The College registered a revenue collection of P2,809,000 source out from tuition fees, library fees, laboratory fees and other fees collected from the students. Total collection registered an increase of 31% or by P863,000 from the projected target of P1,946,000.

Purchased new sets of academic books for the use of students and faculty members in research and academic studies.

Constructed and completed the College Canteen Building with a total cost of P375,000.

FINANCIAL PROFILE

Sources of Application/Utilization of Funds

The preceding data shows the actual income and allotments received by the agency as well as the expenditures incurred for the calendar year 1999.

Income

Income of the College for the year amounted to P2,809,000 showing an increase by 1,602,000 or 57 % from the previous year�s income of P1,747,000.

Increase
1999 1998 Decrease

P2,809,000 P1,747,000 P1,602,000
======== ======== ========

Allotments and Expenditures

Allotment received by the agency in support of its major projects amounted to P37,801,792. The amount was intended for the following:

Personal Services P 30,500,000
Maintenance and Other Operating
Expenses 7,301,792
Capital Outlay -
-----------------
Total P 37,801,792
==========

Aside from the regular allotment received, the agency has a continuing appropriation of P845,604, showing a total funds available of P38,647,396 for the year.

Total Expenditures amounted to P35,652,326 while Total Assets, Total Liabilities and Residual Equity amounted to P58,733,700, P3,893,878 and P54,839,822 respectively.

PART II - RESULTS OF FINANCIAL STATEMENTS AUDIT

Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. IV
Quezon City

STATE AUDITOR�S REPORT ON THE FINANCIAL STATEMENTS

The Officer In-Charge
Romblon State College
Odiongan, Romblon

Pursuant to Section 2, Article IX-D of the Philippine Constitution and pertinent provisions of Presidential Decree No. 1445, we have audited the accompanying balance sheet of Romblon State College, Odiongan, Romblon as of December 31, 1999 and the related statement of operations for the year then ended. These financial statements are the responsibility of the Auditee. Our responsibility is to express an opinion on the financial statements based on our audit.

We conducted our audit in accordance with generally accepted state auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatements. Our audit included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also included assessing the accounting principles used and significant estimates made by the Auditee as well as evaluating the overall financial statements operations. We believe that our audit provides reasonable basis for our opinion.

In our opinion, except for the account Furniture, Fixtures, Equipment, Books and Work Animals totalling P14,100,284 which were not validated due to absence of physical inventory report, the financial statements referred to above present fairly, in all material aspects, the financial position of Romblon State College, Odiongan, Romblon as of December 31, 1999, and the results of its operations for the year then ended in accordance with applicable laws, rules and regulations and in conformity with generally accepted state accounting principles.

COMMISION ON AUDIT

by:
GIL T. JAVIER
State Auditor III
Unit Head
February 2, 2000

Romblon State College
Odiongan, Romblon
Consolidated Balance Sheet
December 31, 1999
With Comparative Figures for 1998

Increase
1999 1998 (Decrease)
ASSETS

Current Assets
Cash (Note 1) P 2,254,999 P 3,370,788 P (1,115,789)
Receivables (Note 2) 108,378 108,378 0
Inventories 908,338 226,203 682,135
---------------- ---------------- ----------------
Total Current Assets 3,271,715 3,705,369 ( 433,654)
---------------- ---------------- -----------------

Contingent Assets
Contingent Assets 6,615 6,615 -
----------------- ---------------- ------------------Total Contingent Assets 6,615 6,615 -
----------------- ---------------- ----------------
Total Current and
Contingent Assets 3,277,880 3,711,534 ( 433,654)
------------------ ----------------- --------------------

Investment and Fixed Assets
Land and Land Improvements 377,460 377,460 -
Buildings and Structures 40,978,076 29,576,487 11,401,590
Furniture, Fixtures, Equipment,
Books and Work Animals 14,100,284 8,548,890 5,551,394
----------------- ---------------- ------------------
Total Investment and Fixed Assets 55,455,820 38,502,837 16,952,984
----------------- ------------------ ------------------
TOTAL ASSETS P 58,733,700 P 42,214,371 P 16,519,329
============ ============ ============

LIABILITIES AND SURPLUS
Current Liabilities
Payables P 532,787 P 507,417 P 25,370
Continuing Appropriations,
Capital Outlay 400,000 400,000
Obligations Incurred in Excess of
Allotments 1,096,855 1,096,855 -
Obligations Liquidated in Excess of
Allotments (1,096,855) (1,096,855) -
Trust Liabilities 2,052,753 3,112,441 ( 1,059,688)
Other Liabilities 908,338 226,203 682,135
---------------- ---------------- -----------------
Total Current Liabilities 6,087,588 3,846,061 2,241,527
----------------- ----------------- -----------------
Total Liabilities P 3,893,878 P 3,846,061 P 47,817
----------------- ----------------- -----------------

RESIDUAL EQUITY
Cumulative Results of Operation
Per Statement of Operations P 1,726,145 P ( 251,251) P 1,977,396
National Clearing Account (2,348,308) 110,559 (2,458,867)
------------------ ------------------- ----------------
Total Cumulative Results
of Operation ( 622,163) ( 140,692) ( 481,471)
------------------ ------------------ -----------------
Invested Capital 55,455,820 38,502,837 16,952,983
-------------------- ------------------- --------------------
Contingent Capital 6,165 6,165 -
-------------------- ------------------- --------------------
Total Residual Equity 54,839,822 38,368,310 16,471,512
----------------- ----------------- -----------------
TOTAL LIABILITIES AND
RESIDUAL EQUITY P 58,733,700 P 42,214,371 P 16,519,329
========== ========== ==========

�See Accompanying Notes to Financial Statements�

CERTIFIED CORRECT:

NOEL P. GUERRA
Accountant III

Romblon State College
Odiongan, Romblon
Consolidated Statement of Operations
For the Year Ended December 31, 1999
With Comparative Figures for 1998
General Fund 101

Increase
1999 1998 (Decrease)

CRO at the beginning of the Year:
Continuing Appropriations P 845,604 P 3,426,899 P (2,581,295)
Overdraft in Appropriation (1,096,855) (1,096,855) -
---------------- ---------------- ----------------
( 251,251) 2,330,044 (2,581,295)
---------------- ---------------- -----------------

Add: Allotments Received During the Year
RA 8745
Personal Services 30,500,000 28,463,027 2,036,973
Maintenance and Other
Operating Expenses 7,301,792 3,847,250 3,454,542
Capital Outlay 3,175,000 (3,175,000)
----------------- ---------------- -----------------

Total Allotments Received During
the year 37,801,792 35,485,277 2,316,515
---------------- -------------- -----------------

Total Allotments Received During
the Year 37,550,541 37,815,321 ( 264,780)
----------------- ---------------- -----------------

Less: Obligations Incurred
Personal Services 28,695,990 28,414,594 281,396
Maintenance and Other Operating
Expenses 6,130,799 3,821,890 2,308,909
Capital Outlay (Continuing
Appropriation) 825,537 3,886,861 (3,061,324)
---------------- ---------------- -----------------
Total Expenditures/Obligations
Incurred 35,652,326 36,123,345 ( 471,019)
---------------- ---------------- -----------------

Excess of Allotment Over
Obligations Incurred 1,898,215 1,691,976 206,239

Add: Income During the Year
Adjustments 917,270 ( 917,270)
--------------- ----------------
917,270 ( 917,270)
--------------- ----------------
Total Cumulative Results of Operation
During the Year 1,1898,215 2,609,246 ( 711,031)
------------------ --------------- -----------------

Less: Reversion to CRO � Unappropriated
Income
Adjustments 811,070 ( 811,070)
Unexpended Balance of Allotment-
Current Year ( 20,067) 73,793 ( 93,860)
Unexpended Balance of Allotment �
Prior Year ( 134,003) 1,975,634 (2,109,637)
------------------- --------------- -----------------
Sub-total ( 154,070) 2,860,497 (3,014,567)
------------------- --------------- -----------------
CRO at the end of the Year P 1,1726,145 P(251,251) P 2,285,536
=========== ======== ==========

8-90-000 2,823,000 845,604 1,977,396
8-90-700 ( 1,096,855) (1,096,855)
------------------- -------------- -----------------
P 1,726,145 P( 251,251) P 1,977,396
========== ======== =========

CERTIFIED CORRECT:

NOEL P. GUERRA
Accountant III

Notes to Financial Statements

1. Cash Account P2,254,999 consists of the following:

PNB and LBP Odiongan, Romblon P1,817,260
Collecting Officer 144,188
Disbursing Officer 293, 551
--------------- P2,254,999
=========

2. Receivable Accounts totalling P108,378 is broken down as follows:

National Government Agencies P 57,816
Miscellaneous 50,562
---------------
P 108,378
=========

3. The overdraft in appropriation amounting to P1,096,855 consists of P663,790 in personal services incurred in 1990 and P433,065 of which has existed since 1985.

CERTIFIED CORRECT:

NOEL P. GUERRA
Accountant III

PART III - FINDINGS AND RECOMMENDATIONS AND FAVORABLE OBSERVATIONS

A. FINDINGS AND RECOMMENDATIONS

1. FINDING

Physical inventory report on Fixed Assets � Furniture, Fixtures, Equipment, Books and Work Animals valued at P14,100,284 was not submitted to Auditor, thus the reliability of the account could not be ascertained.

Section 490 of the Government Accounting and Auditing Manual Volume I provides that �physical stock-taking is an indispensable procedure for checking the integrity of property custodianship. In all cases, the physical inventory-taking which is required semi-annually or annually should be regarded with importance�.

For the year 1999, the Supply Officer continues to deny the agency and the Auditor of an inventory report that will substantiate the existence, whereabouts and condition of the physical assets of the College. Likewise, it prevents the Auditor to conduct inspection, verification and evaluation of property records. The absence of such report cast doubt as to the correctness of the amount of P14,100,284 appearing in the trial balance and in violation of Section 490 of the Government Accounting and Auditing Manual. Alternative audit procedures was not undertaken considering the absence of documents, records and reports which will serve as basis in the conduct of physical inventory during the year.

In a dialogue with the Supply Officer, he told us that the inventory report for the two years period 1998-1999 are now with the Office of the President for signature. However, to date, the Office of the Auditor has not received a copy of an inventory report thus casting doubt as to the correctness of the amount as of December 31, 1999.

RECOMMENDATION

Require the Supply Officer to facilitate the completion of the inventory report and to submit the same to the Office of the Auditor to validate the existence, whereabouts and condition of the physical asset of the College. Require also the reconciliation of the property and accounting records to ascertain the correctness of both records.

2. FINDING

Cash advances of P293,550.92 remained unliquidated at the end of the year contrary to COA Circular No. 97-002.

Cash advances as of December 31, 1999 amounted to P293,550.92 of which P80,630.03 were outstanding for more than two (2) years and P212,920.89 from one month to seven months contrary to the provision of COA Circular No.97-002 dated February 10, 1997.

The amount of cash advance as of year end represents the balance of unliquidated cash advances as reported in the previous years Annual Audit Report. We deemed it appropriate to reiterate the same to continuously call the attention of management on the settlement of outstanding cash advances at year end.

COA Circular No. 97-002 specifically provides that all cash advances shall be liquidated at the end of the year. Cash advances shall be reported and liquidated as soon as the purpose for which it was given has been served. No additional cash advance shall be given unless the previous cash advance has been first settled or a proper accounting thereof was made.

The abovementioned observation was presented to management during our exit conference last January 12, 2000. Management asserted that they will follow up the settlement to all concern and will send memorandum letters to force the settlement of outstanding cash advances.

RECOMMENDATION

Cause the immediate settlement of all outstanding cash advances as of December 31, 1999 amounting to P293,550.92 and observe strictly the provision of COA Circular No.97-002 which states that no cash advance shall remain unliquidated at the end of the year.

3. FINDING

Representation and Transportation Allowance (RATA) of P16,000 was paid to Mr. Herbert F. Fadriquela, Board Secretary of the College, when he is not entitled to such RATA contrary to DBM Notice of Organization, Staffing and Compensation Action (NOSCA) dated August 12, 1999.

Review of the General Payroll for the month of November, 1999 revealed that Mr. Herbert F. Fadriquela, Board Secretary of the College was paid Representation and Transportation Allowance in the total amount of P16,000. The payment covers the date his position was reclassified as Board Secretary I to Board Secretary V or for a period of four (4) months from August to November, 1999.

The payment of RATA was not in accordance with the Department of Budget and Management Notice of Organization, Staffing and Compensation Action (NOSCA) which clearly indicates that the reclassification of position of Mr. Fadriquela does not entitle him to Representation and Transportation Allowance. Despite the prohibition however, the agency allowed Mr. Fadriquela to collect the RATA. The RATA claimed was later on disallowed in audit due to lack of legal basis.

Mr. Fadriquela was one of the agency officials present during the exit conference. Mr. Fadriquela admitted that he had claimed the RATA and offered to refund immediately the amount of P16,000.

RECOMMENDATION

Collect from Mr. Herbert F. Fadriquela the amount of P16,000 representing claim of Representation and Transportation Allowance without legal basis pursuant to DBM Notice of Organization, Staffing and Compensation Action (NOSCA) dated August 12, 1999.

4. FINDING

Several scholars of Congressman Eleandro Jesus F. Madrona were allowed to graduate in College and were issued clearance by agency officials despite balances in matriculation fees and other related fees. A total amount of P189,000.00 were still collectible by the agency as of December 31, 1999.

Records of the Cashier�s Office as of December 31, 1999 shows that the scholars of Congressman Eleandro Jesus F. Madrona has an outstanding or unpaid balance in matriculation fees amounting to P189,000. Records also disclosed that some of the scholars were allowed to graduate in college and were issued clearances by agency officials despite balances in matriculation fees and other related fees to the disadvantage of the government.

In a dialogue with management, the Cashier explained that she had already sent a statement of account with Congressman Madrona informing him of the unpaid balance of his scholars amounting to P189,000.

RECOMMENDATION

Make a representation with Congressman Eleandro Jesus F. Madrona for the payment of P189,000 representing deficiency in payment of matriculation fees of his scholars.

5. FINDING

Possible revenue of P120,000 could have been earned had the agency collected rentals from the use of school cottages and housing lots occupied by the employees.

Information gathered from agency officials disclosed that a total of 13,575.40 square meters consisting of 28 lots and 21 cottages were constructed/maintained out of the agency funds and were presently occupied by the teachers and employees for free.

A rental computation was also provided by management based on the number of cottages and the area occupied in square meters revealed that a possible revenue of P120,000 could have been earned had the agency obliged occupants to pay rentals for the use of its school cottages and housing lots instead of using the facilities for free. (A detailed list is shown in Annex B)

Management reaction on this observation was that they will require occupants to pay rent this school year so as to realize additional revenue of P120,000 for the school.

RECOMMENDATION

Oblige the teachers and employees who are occupants of the cottages and housing lots to pay a reasonable cost of rent to provide the College of additional revenue.

Direct also the occupants to pay through salary deductions to minimize the burden of payment of monthly obligations.

6. FINDING

The agency could have saved P28,100 had officials and employees not claimed honorarium contrary to DBM Compensation Policy Guidelines No. 5-77.

Paragraph 1.0 of Compensation Policy Guidelines No. 5-77 issued by the Department of Budget and Management embraces the rates of additional compensation that may be authorized for faculty members and administrative support personnel involve in school programs or projects outside official working hours.

Paragraph 2.1 of same guidelines provides that it shall apply to school officials, faculty members and other employees who teach or work outside of regular office hours in school, college or university programs/projects such as evening, summer or Saturday classes for secondary, opportunity (vocational), post secondary, undergraduate or graduate programs.

It was observed, however, that 14 officials and employees of the administrative and support services claimed honoraria in 1998 amounting to P28,100. Ten out of 14 officials claimed P200 each per month for one year or P24,000; three employees claimed P100 each per month also for one year or P3,600; and one claimed P100 per month for five months or P500. While it was true that there was a special project being implemented by the College, the claim of honorarium with regard to the project was not in accordance with the Compensation Policy Guidelines No. 5-77, which specifically provides that the services to be rendered by the employees shall be outside of their regular office hours or in the evening, summer or Saturdays. Since the employees did not perform actual services outside of their regular office hours, the claim of honorarium were considered irregular and not in accordance with the Compensation Policy Guidelines No. 5-77.

RECOMMENDATION

Require the 14 officials and employees of the administrative and support services to refund the amount of P28,100, representing claimed of honorarium not in accordance with Compensation Policy Guidelines No. 5-77.

7. FINDING

Laxity of agency officials to implement properly the rules and regulations of the Civil Service Commission in the allocation of personnel in the government service resulted to adversed findings on the appointments issued as well as disallowances in the payment of salaries of concerned personnel of P138,016.12.

Section 1, paragraph 2, Rule VI of CSC Memorandum Circular No.40, s. 1998 dated December 14, 1998, provides that in cases of appointments issued by accredited agencies, the Report of Personnel Actions (ROPA) together with photocopies of appointments issued during the month shall be submitted within 15 days of the succeeding month. Appointments not submitted within the prescribed period shall be made effective 30 days prior to date of submission. On the other hand, CSC Memorandum Circular No. 27, s. 1991 issued rules implementing Republic Act No. 7041 requiring the regular publication of existing vacant positions in government offices except those positions which are primarily confidential, policy determining, highly technical; positions co-terminous with that of the appointing authority and where tenure of office is limited to the duration of a particular project and other non-career position identified under Section 9, Subtitle A, Title I, Book V of Executive Order No. 292.

The agency issued 15 appointments of concerned teachers and employees on July 16, 1999 and July 26, 1999. The corresponding Monthly Report on Personnel Actions (ROPA) of said appointments were prepared on July, 1999 but submitted to the Civil Service Field Office, Romblon on September 2, 1999. It appeared that the same was submitted beyond the prescribed period for the submission of monthly ROPA, i.e. within the first 15 days of ensuing month, hence the same are considered lapsed or ineffective. Further verification also showed that out of the submitted 15 appointments, three (3) were issued in violation of civil service laws, rules and regulations thus the same were not entitled to payment of salaries from the government.

Due to the adversed findings, abovestated disallowance in the payment of salaries increases to P138,016.12.

Management prepared and submitted to the Civil Service Commission, Regional Office No. IV, Quezon City a Letter of Request for Reconsideration of the action taken by the former in the disapproval of the said appointments.

RECOMMENDATION

Adhere strictly to the rules and regulations of the Civil Service Commission in the allocation of personnel in the government service and in the preparation and issuance of appointments.

Reports on Personnel Action (ROPA) must be submitted within the prescribed period and that vacant position must be published except for those that are exempted by law, prior to the issuance of a corresponding appointment.

8. FINDING

The agency could have earned P10,120 had it collected in full/accounted the rentals of the canteen and set of caps, gowns and hoods in accordance with Section 54, Volume 1 of the Government Accounting and Auditing Manual .

Section 54 Volume I of the Government Accounting and Auditing Manual provides that all monies and property received by a public officer in any capacity or upon any occasion must be accounted for as government funds.

Existing rules and regulations also provide that the agency head is responsible for collecting and accounting all revenues and receipts falling under his jurisdiction. It is also his duty to take all possible steps to minimize the risk of losses, defalcations and other types of irregularities.

The audit revealed that the College Canteen was leased in 1992 at P550 per month including water and light expenses. Review of the contract disclosed that the contract was not duly subscribed before a notary public and the date of the effectivity of the contract was not stated therein nor the date of the contract was signed by both parties. Records also disclosed in 1992 that the net income accounted for in the books of the agency amounted to P2,000 only. The total net income that should have been collected for one year was P6,600 thereby leaving a balance of P4,600 still collectible from the lessor. Furthermore, the agency rented 122 sets of caps, gowns and hoods for the use of students and faculty members. The cost per rentals was pegged at P120 or in the total amount of P14,640. However, further review of the agency�s records disclosed that the amount of P8,880 was only collected. A balance of P5,760 were still collectible from the teachers who attended the graduation last March, 1992.

RECOMMENDATION

Exert effort to collect the amount of P10,120 from the lessor of the Canteen and the teachers who rented the caps, gowns and hoods to provide additional income for the College.

B. FAVORABLE OBSERVATION

COMPLIANCE WITH TAX LAWS

It is worth mentioning that Romblon State College has generally complied with all the tax laws required by the Bureau of Internal Revenue. Withholding of taxes of salaries of employees and contractors� tax on businesses were collected and remitted to the Revenue District Office of the Province.

PART IV

STATUS OF IMPLEMENTATION BY THE AUDITEE OF
PRIOR YEARS� AUDIT RECOMMENDATIONS

Of the 15 audit recommendations contained in the 1998 Annual Audit Report, six were fully implemented by management and have strengthen the internal control operation of the agency while seven were partially implemented and two remained unimplemented by the agency. The details are shown in Annex A.

PART V

ANNEXES

Annex A - Status of Implementation by the Auditee of Prior Year�s Audit
Recommendation

Annex B - List of Cottages

ANNEX A

STATUS OF IMPLEMENTATION BY THE AUDITEE OF
PRIOR YEARS� RECOMMENDATIONS
As of December 31, 1999

STATUS OF IMPLEMEN-TATION
FINDINGS RECOMMENDATION Fully Partially UnImplemented REMARKS
1. Collections from income-generating projects totalling P321,113.32 were booked up as trust liabilities instead of income account. Instruct the Accountant to correct the erroneous accounting of collections and direct the Cashier to remit the amount to the Bureau of Treasury . X
2. The amount of P108,372.64 could have been utilized had accounts receivables not been allowed to be outstanding for more than one year. Intensify collection of Accounts receivables amounting to P108,372.64 and send bills/tracers to delinquent debtors. X The account still exist as of to date. The Accountant claimed that it is difficult for him to prepare the required documents because previous Accountants did not maintain subsidiary record for the same. Thus it was reiterated that he should be guided by COA Circular No. 97-001.
3. Collection of P127,958.33 from U.S. Peace Corps were not booked- up in violation of Section 43 of PD 1445. Require the personnel concerned to submit the required reports on accounting the money as government funds and collect the cash advances granted to teachers and employees. X
4. Parcels of land owned by the College are without torrens title or any document of ownership. Secure torrens title for parcels of land owned by the Romblon State College X The Officer-in-Charge promised that he will attend to the development of land titling which the late College President had started.
5. The agency could have earned P10,120 had it collected the rentals of the canteen and sets of gowns, caps, and hoods. Send collection letter to the previous lessor of the canteen and remit collections of the rentals from set of caps, gowns and hoods to the Cashier. X The Budget Officer claimed that she will settle the amount this year(AAR Page 18)
6. Erroneous booking up of cash advances totalling P451,992.50 to Account 0-83-000, Obligations Liquidated, in Violation of Section 26 Vol. IIof the GAAM. Adhere strictly with the provisions of Section 26, Vol. II of the Government Accounting and Auditing Manual relative to the booking up of cash advances to Account 8-70-500, Cash Disbursing Officers. X
7. Failure to attach documentary requirements rendered the validity and legality of the payment of hazard pay totalling P741,600.00 Doubtful. Require the submission of documentary requirements for the hazard pay. X
8. Lack of adequate control in the procurement of supplies resulted to overstocking in the amount of P921,426.27 Strengthen control in the procurement of supplies and materials to avoid overstocking. X There was a slow pace in the implementation of this recommendation.
9. The agency could have saved a total of P21,308.00 had construction of the Student Center been exactly in accordance with its Plans and Specifications. Instruct the persons liable to refund the amount corresponding to the losses incurred by the agency. X The balance of P1,652.00 as of December 31, 1997 remained unsettled as of year end 1999.
10. Cash Advance as of December 31, 1997 in the total amount of P60,527.62 Remained unliquidated. Instruct the Accountant to initiate steps to facilitate immediate liquidation. X Efforts by the Accounting Unit to settle cash advances are now being undertaken. As of December 31, 1999 a balance of P293,550.92 remained unliquidated.(AAR Page 10)
11. Delay in the submission of financial reports resulted to delay in post-audit work Submit financial report within the reglamentary period of ten (10) days in order not to delay post-audit work. X
12. Suspensions as of December 31, 1997 amounted to P3,825,688.10 of which only 4.16% was settled while disallowances totalled P286,161.02 with only 6.87% settlement. Enforce immediate settlement of all suspensions and disallowances in accordance with Section 9.1 of the revised Manual on CSBs. X To date the agency have submitted the required documents in compliance with the audit suspension and disallowances.
13. Failure of the Supply Officer to notify the Auditor of the scheduled delivery within 24 hours, spot inspection were not conducted. Notify the Auditor of scheduled delivery pursuant to COA Circular No. 95-006. X It was observed that there was improvement relative to the inaction of prior years.
14. Subsidiary records were not maintained by the Accountant Contrary to section 403 Vol. II of the GAAM. Maintain adequate subsidiary records for all controlling accounts in order to provide information as to their breakdown and to ascertain their accuracy as of a given date. X Those concerned said they will try to comply with the report.
15. Income of P180,000.00 could have been realized had the College Dormitory been Completed/readied for occupancy in 1997. Exert effort to complete the College Dormitory. X

Annex B
LIST OF COTTAGES

Type of Proposed
Name of Occupant Cottage Lot Area Rental/Month

1. Ernesto Gado semi-concrete 486 sq.m. (/) P 500.00
2. Arnulfo de Luna 399 sq.m. (E) 100.00
3. Visitacion Patnugot 300 sq.m. (E) 100.00
4. Elbe Fadriquel semi-concrete 580 sq.m. (/) 500.00
5. Nelson Fedelin semi-concrete 1,220 sq.m. (/) 500.00
6. Melita Alojado 637.5 sq.m. (E) 100.00
7. Ruth Fordan 235 sq.m. (E) 100.00
8. Max Factor 1,160 sq.m. (/) 500.00
9. Freddie Fabiala semi-concrete 760 sq.m. (/) 500.00
10. Irvelio Ferrancullo 660 sq.m. (/) 500.00
11. Patricio Panoy 452.4 sq.m (/) 300.00
12. Johnny Galicia 630 sq.m. (/) 300.00
13. Dorothy Galisanao 300 sq.m. (/) 300.00
14. Ismael Fos 450 sq.m. (/) 500.00
15. Noel P. Guerra concrete 400 sq.m (/) 1,500.00
16. Dario Gacu 306 sq.m. (E) 100.00
17. Edgar Fadallan 378 sq.m. (/) 300.00
18. Meriam Lee Fetil 560 sq.m. (/) 300.00
19. Villardo Fadallan 160 sq.m. (E) 100.00
20. Ana Fajanilan 462 sq.m (/) 300.00
21. Amada Mayuga 357 sq.m. (/) 300.00
22. Emelyn Villanueva 462 sq.m. (/) 300.00
23. Daniel Fabello 200 sq.m. (E) 100.00
24. Feve de la Vega 430.5 sq.m. (/) 300.00
25. Antonio Casinto 575 sq.m. (/) 500.00
26. Allen Gaa 550 sq.m. (/) 300.00
27. Johnny Urbano 240 sq.m. (/) 300.00
28. Alfredo Fronda, Jr. 225 sq.m. (/) 1,000.00
------------------ ---------------
Total Area 13,574.4 sq.m. P 10,000.00
=========== x 12
---------------
Total Projected Rental P120,000.00
========

Legend:
(/) Lot and Cottage
(E) Lot only; Cottage provide by employee

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