2010 Mvuc Response to Arr

8/13/2019 2010 Mvuc Response to Arr

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LAND TRANSPORTATION OFFICE-NCR

STATUS REPORT ON COA ANNUAL AUDIT REPORT

FOR CY-2010

MOTOR VEHICLE USERS CHARGE (FUND-151)

AS OF APRIL 28, 2011

COA OBSERVATIONS RECOMMENDATIONS/MANAGEMENT COMMENTS STATUS/ACTION TAKEN

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1. The Property, plant and Equipmentaccount costing P107,179,239.61 is

inaccurate/unreliable due to: a) non-dropping from the books of the

transferred equipments to LTO-Main

amounting to P1,719,104.00, b) inclusion

of unserviceable equipments totaling

P6,139,584.00 in the inventory account,

and c)non-preparation and updating of

Property Cards and Acknowledgement

Receipt for Equipment (ARE).

We recommended that management:

a) require the Supply Officer and the Accountant toreconcile the Other Machinery and Equipment accountand require the latter to prepare a journal entry

dropping the returned/transferred equipments from the

books of accounts,

b) require the Supply Officer and the concerned personnelto prepare an Inventory and Inspection Report for

Unserviceable Property (IIRUP) and furnish the

Accounting a copy thereof as basis for dropping the

equipments in the books and subsequent disposal as

provided in Section 502, Volume I of the Government

Accounting and Auditing Manual, and

c) require the Supply Officer and personnel concerned toprepare and update Property Cards and reconcile the

same with the Inventory Report. Any discrepancies

noted should be immediately verified and transmitted to

the Accountant for adjustments in the books and

reconciliation with the Ledger Cards of the Accounting

Unit. Also, require the Supply Officer to renew and

update the Acknowledgement Receipt for Equipment in

compliance with Section 56, Vol. II of the NGAS Manual

The transfers of 9 units Gas Analyzer to LTO Central Office are

already recorded in the books under Journal Entry Voucher MVUC151 No. RA11-03-009 dated 03.14.11. (copy attached)

The personnel concerned for equipment is reclassifying the

unserviceable equipment from the inventory account report to the

Inventory and Inspection Report for Unserviceable Property Report

(IIRUP). Said Report will be submitted on June 15, 2011.

The personnel concerned has started the updating and renewal ofARE beyond three (3) years, also the same with the property card.

Please see attached property card for CY-2010.


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FOR CY-2010




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2. Services of MVUC Personnel whosesalaries were charged against Special

Vehicle Pollution Control Fund total

P9,211,005.63 were not fully utilized inthe implementation of the program and

project of the Fund and expenses for

security services rendered at north and

South MVIC amounting to P543,226.89

were also charged against the Fund in

violation of Section 7 of Republic Act no.

8794.

We recommended that management:

a) require all MVUC personnel to undertake activitiesdirectly related in the implementation of the program

and project of the Special Vehicle Pollution Control Fundand

b) stop/refrain from charging security services against theFund to maximize its use to other related purposes.

a. The job order personnel (MVUC) are tasked to monitorcompliance to emission requirement aimed to control air

pollution from mobile sources.b. Hiring of MVUC personnel on a job order basis augmented our

already depleted work force, with our core functions embodied

in our mandate to ensure that we register roadworthy motor

vehicles and implement laws, policies, rules and regulations

relative to land transportation.

c. Their accomplishment reports are compiled and submitted toMs. Lorna de Leon, Team Leader, PETC Monitoring as the basis

for the management in the decision-making and/or covert

operation by the LTO Monitoring Team.

d. Accomplishment report for anti-smoke belching operations issubmitted is to the Central Office.

e. Further, collection of the MVUC as imposed by RA 8794 isamong the integrated functions of this Office. These personnelplayed a vital factor in the implementation of our core

functions, considering the pendency of the Rationalization Plan

since 2005 and the increasing number of motorists and motor

vehicles in the National Capital Region .

The Office no longer charged security services for its two (2) Motor

Vehicle Inspection Centers from MVUC Fund.


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FOR CY-2010




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Status of Implementation of Prior Years

Audit Recommendations

MVIC not operating in accordance with the

terms of reference P44.63 million

1. Due to lack of interconnectivity,implementing rules and regulations

(IRR) on the establishment of the

upgraded Motor Vehicle Inspection

System, and training of MVIS

personnel, the two Motor Vehicle

Inspection System, and training of

MVIS personnel, the two Motor

Vehicle Inspection Centers under the

LTO-NCR which were acquired for

P44,629,846.96, are not fullyoperating in accordance with the

Terms of Reference, thus, are not

fully operating in accordance with

the Terms of Reference, thus, are not

fully utilized to promote road safety,

generate additional revenues for the

government and recoup investment

We recommended that management coordinate with the

officials of LTO-Main on the immediate establishment of

connectivity of the installed MVIS with the existing MVRS to

provide an on-line, real time data monitoring, promote

training of personnel under a computerized environment;

and follow up the finalization and approval of the

Implementing Rules and Regulations (IRR) to clearly define

the system of collection and operating procedures. (Not

implemented due to the absence of interconnectivity with

MVRS).

1. The MVIC (Phase I) Acceptance Committee submitted last July27, 2010 to ITPEMC its Operational Testing Acceptance

Resolution that four (4) MVIC have successfully passed the

testing and recommended the interface with LTO IT system

MVIS Core Application.

2. The Project Management Committee approved the resolutionlast September 08, 2010 and the ITPEMC will schedule a Walk

Through at MVIC for assessment of the system.

3. The Revised Administrative Order#ACL2009-018 is theapproved Implementing Rules and Regulations governing the

inspection fees is now NEDA for approval which will generate

additional revenues.

4. North MVIC is continuously transmitting data to MVIS Centraldatabase in an on-line, real time data monitoring. All NorthMVIC inspector undergone training re-MVIS enhanced

equipment and procedurals.


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Misclassified accounts

3. Purchases of various equipment andexpenses for security services for CY2009 totaling P961,479.60 were

erroneously classified and recorded

in the books contrary to Section 114,

Volume III of the NGAS Manual.

We recommended that the Accountant reclassify the

transactions to correct the accounts affected and strictlyfollow the Standard Chart of accounts in recording

transactions to ensure proper monitoring of acquired

equipment. (Not implemented)

Reclassification was already made from Office Supplies Expense

(Prior Years Adjustment) account to Office Equipment accountunder JEV MVUC -151 RA 10-08-030 dated 08.31.10 (copy

attached)

For Security Services, reclassification of expenses charge to Other

Professional Services can no longer be effected since the expense

accounts for CY 2009 were already part of the Govt Equity

Account. The AOM for this was received on February 24, 2010, and

our books of accounts were closed at that time. Further, there was

no expense account specifically for Security Services out of the

MVUC fund and charging to Other Professional Services for security

services of our two (2) Motor Vehicle Inspection Centers (MVICs)

whose functions are in line with the objective of the RA 8794; was

made on the premised that Security Services is also part of theProfessional trade. To date, the Office no longer charge security

services from MVUC Fund.


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FOR CY-2010




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Non preparation of Journal Entry Voucher

(JEV) for each transaction.

4. Journal Entry Voucher (JEV) for eachtransaction was not prepared daily

by the Accounting Section in

violation of Sequence No. 23,

Chapter 1, Volume I of the New

Government Accounting System

(NGAS).

The observation was also raised in the CY 2008 and 2009

Management Letter which the management still did not

comply, hence, we reiterated our recommendations that

management:a. Direct the Accounting Unit to strictly comply with the

provisions in the NGAS manual of preparing a JEV daily

for each transaction in order to facilitate verification

and monitoring of transactions.

Our Office is always in adherence with the requirement of the

NGAS. Sequence No. 23 to 25 under Section 34 Procedure of

Disbursements by Checks, Chapter I, Volume I of the NGAS, are as

follows: Sequence 23 Preparation of JEV Daily Records Receipt of

Copy 1 of RCI together with Copy 2 of checks, Copy 1 of DVs,

Copy 3 of ALOBS/OBR and originals of supporting documents

from Cash Unit in the log book, Forward the documents to the

designated staff for JEV preparation

Sequence 24 Examines DVs and checks against RCI. Verifies ifthe serial number of checks actually issued, including spoiled

and cancelled ones, are all accounted for.

Section 25 Prepares JEV in two copies and signs in thePrepared by portion.

It has to be noted that there was no provision stated on the

abovementioned instruction requiring the preparation of JEV for

each transaction. Journal Entry Vouchers are prepared based onthe submitted Report of Checks Issued (RCI) in accordance with

Section 33 of the NGAS RE: All checks actually released to

claimants shall be included in the Report of Checks Issued (RCI)

which shall be prepared daily by the cashier. The RCI shall be

submitted to the Accounting Unit for the preparation of JEV.

The RCI together with the DVs was only submitted to the

Accounting Section at the end of the month; hence the JEV

supported by the Summary of Checks Disbursement which includes

the accounting entry for each transaction was also prepared at the

end of the same month. Verification and monitoring of each

transaction can be done using these reports.


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2010 Mvuc Response to Arr

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