ANNUAL AUDIT REPORThret.gov.ph/file-manager/2012 Audited Financial Report.pdf · 2019-05-20 ·...
Transcript of ANNUAL AUDIT REPORThret.gov.ph/file-manager/2012 Audited Financial Report.pdf · 2019-05-20 ·...
Republic of the Philippines COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City
ANNUAL AUDIT REPORT
on the
HOUSE OF REPRESENTATIVES ELECTORAL TRIBUNAL
For the Year Ended December 31, 2012
i
EXECUTIVE SUMMARY
A. Introduction
The House of Representatives Electoral Tribunal (HRET) was constituted
under Section 17, Article VI of the 1987 Philippine Constitution to act as the sole
judge of all contests relating to the election, returns and qualifications of Members
of the House of Representatives. The major function of the HRET and its principal
program, project and activity is the adjudication of electoral contests involving
Members of the House of Representatives.
B. Financial Highlights
A comparative analysis of the financial condition and the allotments and
utilization of funds for the years 2012 and 2011 is presented below:
Particulars
2012
2011
Increase/
(Decrease)
Financial Condition
Assets 18,097,207.69 30,784,284.47 (12,687,076.78)
Liabilities 13,174,669.93 22,269,726.27 (9,095,056.34)
Equity 4,922,537.76 8,514,558.20 3,592,020.44
Particulars 2012 2011 Increase
(Decrease)
Allotments Received 138,551,688.20 130,279,364.91 8,272,323.29
Continuing
Appropriations
4,870,311.80
0.00
4,870,311.80
Obligations Incurred 138,214,961.71 128,260,596.29 9,954,365.42
Unexpended Balance 5,207,038.29 2,018,768.62 3,188,269.67
The Statement of Allotments, Obligations and Balances for calendar year
2012 is shown in Annex A.
C. Scope of Audit
The audit was conducted on the accounts and operations of the HRET for
the CY 2012. It was aimed to ascertain the propriety of the financial transactions
and determine the fairness of the presentation of the financial statements of the
agency.
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D. Auditor’s Report
The Auditor rendered an unqualified opinion on the fairness of presentation
of the financial statements of HRET as of December 31, 2012.
E. Observations and Recommendations
The following are the audit observations and corresponding
recommendations, which were discussed with management officials concerned
during the exit conference on May 23, 2013 and their comments were incorporated
in the report, where appropriate:
1. Other Maintenance and Operating Expenses amounting to P28,019,640.21
included the additional allowance of P82,000 given monthly to the Chairman
and eight Members of the Electoral Tribunal or a total of P8,856,000 with no
documents to support the expenditures but only a certification that the amounts
were expended in the performance of the official duties.
We recommended that Management immediately cause the submission of the
supporting documents for the liquidation vouchers for December 2012.
Further, strict compliance with Section 4 (6) of PD 1445 be adhered to for all
transactions of the HRET starting January 1, 2013.
2. The agency had no programs/projects related to senior citizens and the
differently-abled persons and did not allocate at least one per cent of its budget
as required under Section 29 of the General Provisions of RA No. 10155, GAA
for CY 2012.
We recommended that Management prepare programs/projects related to the
senior citizens and differently-abled persons and allocate at least one percent of
its budget as required in the GAA provision.
F. Implementation of Prior Years Recommendations
Out of the five audit recommendations contained in the 2011 Annual
Audit Report, two were implemented, one was partially implemented and two were
not implemented as of December 31, 2012.
TABLE OF CONTENTS
PART PARTICULARS PAGE
I
Audited Financial Statements
Independent Auditor’s Report
Statement of Management’s Responsibility
for Financial Statements
Balance Sheet
Statement of Income and Expenses
Statement of Cash Flows
Notes to Financial Statements
1
2
3
5
7
9
II
Observations and Recommendations 16
III Status of Implementation of Prior Year’s Audit
Recommendations
19
IV Annexes
Statement of Allotments, Obligations and Balances
Breakdown of Expenditure/Obligations Incurred
Obligations Liquidated/Disbursement and Unliquidated
Obligations
PART I
AUDITED FINANCIAL STATEMENTS
PART II
OBSERVATIONS AND RECOMMENDATIONS
PART III
STATUS OF IMPLEMENTATION OF PRIOR
YEAR’S AUDIT RECOMMENDATIONS
PART IV
ANNEXES
INDEPENDENT AUDITOR’S REPORT
Honorable PRESBITERO J. VELASCO, JR.
Chairperson
House of Representatives Electoral Tribunal
Quezon City
Pursuant to Section 2, Article IX-D of the Philippine Constitution and pertinent
provisions of the Government Auditing Code of the Philippines (PD 1445), we have
audited the accompanying balance sheet of the House of Representatives Electoral
Tribunal as of December 31, 2012 and the related statements of income and expenses and
cash flows for the year ended. These financial statements are the responsibility of the
Auditee. Our responsibility is to express an opinion on these 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 from material misstatement/s.
Our audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and the
significant estimates made by the auditee, as well as, evaluating the overall financial
statements presentation. We believe that our audit provides reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the House of Representatives Electoral
Tribunal as of December 31, 2012, and the results of its operations and its cash flows for
the year then ended in conformity with applicable generally accepted state accounting
principles.
April 15, 2013
Republic of the Philippines
COMMISSION ON AUDIT Commonwealth Avenue, Quezon City
2
Notes 2012 2011
Current Assets
Cash 5
Petty Cash Fund 4,533.30 47,483.79
Cash - National Treasury - MDS 2,465,071.44 3,168,249.03
Cash in Bank - Local Currency, Current Account 6,752,698.47 17,055,772.01
Total Cash 9,222,303.21 20,271,504.83
Receivables 6
Due from NGAs 19,555.32 92,802.59
Advances to Officers and Employees 166,055.64 21,744.15
Total Receivables 185,610.96 114,546.74
Inventories 7
Office Supplies Inventory 221,857.63 353,986.22
Other Supplies Inventory 722.59 1,293.58
Spare Parts Inventory 5,152.00 5,152.00
Total Inventories 227,732.22 360,431.80
Prepayments 8
Other Prepaid Expenses 9,200.00 0.009,200.00 0.00
Other Current Assets 9
Guaranty Deposits 54,709.75 54,709.75
54,709.75 54,709.75
Total Current Assets 9,699,556.14 20,801,193.12
Investments 10
Investments in Stocks 24,500.00 24,500.00
Property, Plant and Equipment 11
Leasehold Improvements, Buildings 3,589,274.21 3,589,274.21
Office Equipment 4,592,149.86 4,791,848.86
Furniture and Fixtures 3,006,586.06 3,003,006.06
IT Equipment and Software 8,200,918.40 8,028,358.40
Library Books 1,131,124.30 1,096,164.30
Communication Equipment 1,451,532.92 1,291,532.92
Firefighting Equipment and Accessories 105,902.85 105,902.85
HOUSE OF REPRESENTATIVES ELECTORAL TRIBUNAL
Balance Sheet
As of December 31, 2012
(With comparative figures for CY 2011)
(In Philippine Peso)
ASSETS
3
Notes 2012 2011
Other Machineries and Equipment 20,992.20 20,992.20
Motor Vehicles 1,945,642.17 1,945,642.17
Total Property, Plant and Equipment 24,044,122.97 23,872,721.97
Less: Total Accumulated Depreciation 15,998,408.57 14,241,567.77
Property, Plant and Equipment- Net 8,045,714.40 9,631,154.20
Other Assets 12
Other Assets 327,437.15 327,437.15
Total Other Assets 327,437.15 327,437.15
TOTAL ASSETS 18,097,207.69 30,784,284.47
Current Liabilities 13
Accounts Payable 6,338,852.93 5,096,581.15
Due to Officers and Employees 5.53 5.53
Due to National Treasury 5,899.67 18,667.00
Due to BIR 0.00 27,504.00
Due to GSIS 4,910.27 41,326.73
Due to Pag-IBIG 300.00 94,939.76
Due to PhilHealth 675.00 37,425.00
Performance Bonds Payable 21,000.00 0.00
Other Payables 6,803,026.53 16,953,277.10
Total Current Liabilities 13,174,669.93 22,269,726.27
Equity 14
Government Equity, Beginning 8,514,558.20 8,058,069.62
Retained Operating Surplus
Current Operations (3,495,572.86) 633,885.43
Prior Years' Adjustments (96,447.58) (177,396.85)
Total Retained Operating Surplus (3,592,020.44) 456,488.58
Government Equity, End 4,922,537.76 8,514,558.20
TOTAL LIABILITIES AND EQUITY 18,097,207.69 30,784,284.47
LIABILITIES AND EQUITY
See accompanying Notes to Financial Statements
4
9
HOUSE OF REPRESENTATIVES ELECTORAL TRIBUNAL
Notes to Financial Statements December 31, 2012
1. General/Agency Profile
1.1 The House of Representatives Electoral Tribunal (HRET) was constituted
under the 1987 Constitution (Section 17, Article VI) to act as the sole judge of
all contests relating to the election, returns and qualifications of Members of
the House of Representatives (HREP).
1.2 The major function of the HRET and its principal program/project/activity is
the adjudication of electoral contests involving Members of the HREP. No
target is set for the number of electoral cases to be resolved each year because
the adjudication depends upon the progress of each proceeding strictly
followed in each case.
1.3 The Tribunal is composed of nine members, three of whom are Justices of
Supreme Court and the rest are Members of the HREP. The Senior Justice
acts as the Chairman.
The following are the incumbent officers of the Tribunal Proper as of
December 31, 2012:
Hon. Justice Presbitero J. Velasco, Jr. Chairman
Hon. Justice Diosdado M. Peralta Member
Hon. Justice Lucas P. Bersamin Member
Hon. Congressman Franklin P. Bautista Member
Hon. Congressman Rufus B. Rodriguez Member
Hon. Congressman Joselito Andrew R. Mendoza Member
Hon. Congressman Justin Marc SB. Chipeco Member
Hon. Congresswoman Ma. Theresa B. Bonoan-David Member
Hon. Congressman Rodolfo B. Albano Member
1.4 The HRET has a total personnel complement of 127 as of December 31, 2012,
as follows:
Permanent 82
Co-terminus 45
Total 127
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2. Basis of Financial Statements Presentation
The Financial Statements have been prepared in accordance with generally
accepted state accounting principles and standards.
3. Summary of Significant Accounting Policies
3.1 The Tribunal uses accrual basis of accounting. All expenses are recognized
when incurred and income is reported upon receipt. Income is generally
composed of filing fees, photocopying and certification charges and sale of
Transcript of Stenographic Notes (TSNs), HRET Rules, CDs and Reports of
the Tribunal.
3.2 Notice of Cash Allocation (NCA) is recorded in the Regular Agency (RA)
books. The agency does not have authority to use whatever income it
receives. All collections are therefore recorded in the National Government
(NG) books and remitted to the National Treasury.
3.3 The modified obligation system is used to record allotments received and
obligations incurred. Separate registries are maintained to control allotments
and obligations for each class of allotment.
3.4 Petty Cash Fund (PCF) account is maintained under the Imprest System.
All replenishments are directly charged to the expense account. The PCF is
not used to purchase regular inventory items for stock.
3.5 The moving average method is used in the valuation of inventories.
3.6 Supplies and materials purchased are recorded using the Perpetual Inventory
System.
3.7 Property, Plant and Equipment (PPE) are carried at cost less accumulated
depreciation. Regular maintenance, repair and minor replacements are
charged against Maintenance and Other Operating Expenses (MOOE) as
they are incurred.
3.8 Straight Line Method of depreciation is used in depreciating the PPE with
estimated useful lives ranging from 5 to10 years as provided for in COA
Circular No. 2003-07 dated December 11, 2003 and as amended by COA
Circular No. 2004-005 dated August 9, 2004. A residual value of 10 per cent
of the cost of the asset is set and depreciation starts on the next month after
purchase.
3.9 Payable accounts are recognized and recorded in the books of account only
upon acceptance of the goods/inventory/other assets and rendition of
services to the agency.
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3.10 Accounts were reclassified to conform with the revised Chart of Accounts
per COA Circular No. 2003-001 dated June 17, 2003 and Updated
Description of Accounts under the NGAS per COA Circular No. 2004-008
dated September 20, 2004.
3.11 Accounts for cash transactions were reclassified in compliance with COA
Accounting Circular No. 2006-001 dated November 9, 2006. Cash Advance
for Payroll recorded as Cash-Disbursing Officers was reclassified to Payroll
Fund. Cash Advance for Special Purpose/Time bound Undertaking
recorded as Cash-Disbursing Officers or as Due from Officers and
Employees were also reclassified to Advances to Officers and Employees.
4. Correction of Fundamental Errors
Fundamental errors of prior years are corrected by using the Prior Years’
Adjustments account. Errors affecting current year’s operation are charged to the
current year’s account.
5. Cash
The Petty Cash Fund of P4,533.30 is maintained for emergency, petty
expenses and urgent requirements of the Tribunal.
The Cash - National Treasury, MDS of P2,465,071.44 represents the
balance of the restored cash equivalent of all unreleased checks at year end.
The Cash in Bank - Local Currency, Current Account of P6,752.698.47 are
deposits of protestants and protestees who are both parties to electoral cases for
expenses incidental to the adjudication of their cases, which are held-in-trust by the
Tribunal.
6. Receivables
Due from NGAs of P19,555.32 consists of prepayments to the Procurement
Service for various office supplies.
Advances to Officers and Employees of P166,055.64 pertains to excess of
cash advances over expenses incurred for travels and other special purposes/time-
bound undertakings embarked on by the HRET officials and employees, which has
already been refunded on the first week of January 2013.
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7. Inventories
This group of accounts totaling to P227,732.22 includes office supplies and
materials, spare parts, and other supplies inventory on hand as of December 31,
2012.
8. Prepayments
The Other Prepaid Expenses account amounting to P9,200 represents
prepayments to Central Book Supply, Inc. for Supreme Court Reports Annotated
(SCRA) Volumes 672 to 676 which have not yet been delivered as of December
31, 2012.
9. Other Current Assets
Guaranty Deposits account of P54,709.75 pertains to deposits for PLDT
telephone lines, MWSS water lines, and cellular phones.
10. Investments
Investment in Stocks of P24,500 pertains to the investment in PLDT stocks
which are carried at cost in connection with the telephone line for HRET’s use.
11. Plant, Property and Equipment
This group of accounts consists of the following:
Account
Description
Balance
12/31/11
2012 Addition /
(Deduction)
Balance
12/31/12
Accumulated Depreciation
12/31/12
Net Book Value
12/31/12
Leasehold
Improvement,
Building
P3,589,274.21 P3,589,274.21 P 673,379.16 P2,915,895.05
Office Equipment 4,791,848.86 (199,699) 4,592,149.86 3,682,492.94 909,656.92
Furniture and
Fixtures
3,003,006.06
3,580
3,006,586.06
2,360,341.19
646,244.87
IT Equipment and Software
8,028,358.40 172,560
8,200,918.40 6,488,927 1,711,991.40
Library Books 1,096,164.30 34,960 1,131,124.30 909,253.03 221,871.27
Communication
Equipment
1,291,532.92
160,000
1,451,532.92
900,478.36
551,054.56
Firefighting Equipment and
Accessories
105,902.85
105,902.85
88,573.51
17,329.34
13
Account
Description
Balance
12/31/11
2012
Addition /
(Deduction)
Balance
12/31/12
Accumulated
Depreciation
12/31/12
Net Book
Value
12/31/12
Other Machineries
and Equipment
20,992.20 20,992.20 14,547.26 6,444.94
Motor Vehicles 1,945,642.17 1,945,642.17 880,416.12 1,065,226.05
Total P23,872,721.97 P171,401 P24,044,122.97 P15,998,408.57 P8,045,714.40
12. Other Assets
The Other Assets account of P327,437.15 represents the net book value of
reclassified unserviceable property and equipment with a total acquisition cost of
P3,272,276.78. The said property are no longer utilized and are for disposal.
13. Current Liabilities
This group of accounts consists of the following:
Accounts Payable totaling P6,338,852.93 consists of obligations to various
suppliers arising from the purchase of goods and services amounting to
P3,780,136.22, the restored cash equivalent of various unreleased checks drawn
from the Cash National Treasury, MDS account of P2,465,071.44, and prior year’s
accounts payable of P93,645.27.
Due to National Treasury of P 5,899.67 represents the unremitted balance of
the interest income earned for the 4th
quarter of 2012 from the HRET Trust Account
maintained at the Land Bank-COA Branch. The said interest income was credited
by the bank on December 28, 2012 and was remitted to the National Treasury in
January 2013.
Other Payables amounting to P6,803,026.53 pertains to the cash deposits
made by various Protestants and Protestees for expenses to be incurred in
connection with the adjudication of their cases filed with the Tribunal. The decrease
in this account was due mainly to the return of unused cash deposits of parties.
14. Government Equity
The Government Equity account amounting to P4,922,537.76 includes the
Prior Years’ Adjustments account with a debit balance of P96,447.58 representing
prior year’s expense paid in CY 2012.
14
15. Subsidy Income from National Government (SING)
This account includes the following:
NCA received from DBM for operational
requirements
P129,464,374.00
Tax Remittance Advice (TRA) issued to BIR 8,662,313.90
Total P138,126,687.90
Less: Return of Salaries and Cash Advances and
overpayment of Expenses
272,249.52
Reversion of unused NCA 1,402,384.44
Net SING P136,452,053.94
16. Income and Expenses
As of December 31, 2012, Income and Expenses amounted to
P136,452,053.94 and P139,947,626.80, respectively, resulting to an excess of
expense over income of P3,495,572.86.
17. Consultancy Services
The increase in Consultancy Services of P2,330,958.02 is due to the
increase in the number of consultants from 18 in CY 2011 to 20 in CY 2012, as
well as in the total number of months the consultants served the Tribunal, as shown
below:
No. of
Consultants
No. of Months
in Service
Total No. of
Months Served
CY 2012
15 12 180
1 11 11
1 7 7
2 2 4
1 4 4
Total 20 206
CY 2011
6 12 72
9 4 36
1 6 6
1 2 2
Total 18 116
Increase 2 90
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18. Allotments, Obligations and Balances
Total allotments available during the year including allotment in CY 2011
carried over in CY 2012 was P143,422,000, while obligations incurred amounted to
P138,214,961.71, details of which are as follows:
Allotment Class Allotments Obligations Balance
PS P 92,886,437.75 P 92,549,711.26 P 336,726.49
MOOE 50,280,492.25 45,410,180.45 4,870311.80
CO 255,070.00 255,070.00 0.00
Total P143,422,000.00 P138,214,961.71 P5,207,038.29
Breakdown of Obligations Incurred:
Obligations Paid P134,434,825.49
Due and Demandable 3,780,136.22
Total P138,214,961.71
For CY 2012, there was no unbooked obligations.
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OBSERVATIONS AND RECOMMENDATIONS
Insufficient documents to support disbursements
1. Other Maintenance and Operating Expenses amounting to P28,019,640.21
included additional allowance of P82,000.00 given monthly to the Chairman
and eight Members of the Electoral Tribunal or a total of P8,856,000 with no
documents to support the expenditures but only a certification that the
amounts were expended in the performance of the official duties.
Item 6, Section 4 of PD 1445 states that, “Claims against government
funds shall be supported with complete documentation.”
Our audit of the Other Maintenance and Operating Expenses amounting to
P28,019,640.21 disclosed that this includes the additional allowance of
P8,856,000 given monthly to the Members of the Electoral Tribunal. Further
verification disclosed that there were no documents to support the expenditures
but only a certification which stated “that the amounts were expended in the
performance of the official duties”, contrary to Item (6), Section 4 of PD 1445.
Further verification revealed that the said practice of supporting
expenditures with only a certification was anchored on the Concurrent Resolution
No. 10 adopted by the Senate of the Philippines and the House of Representatives
on August 24, 2011 and February 1, 2012, respectively. The said Concurrent
Resolution specifically states that:
“...in recognition of the delicate and unique nature of the functions,
operational and organizational structures of the Senate, the House of
Representatives, the Commission on Appointments and the Senate and
House Electoral Tribunals, the Commission on Audit has consistently
allowed the current system of liquidation by way of certification, duly
signed by each Senator and Member of the House of Representatives,
that such amounts allocated to each Member of Congress as part of
their Maintenance and Other Operating Expenses (MOOE) were
utilized or expended in the performance of their legislative functions.”
On January 31, 2013, an Audit Instructions on the Audit of the Senate of
the Philippines and the House of Representatives was issued by the Chairperson
of the Commission on Audit, which was amended on February 8, 2013 to include
the Senate and House of Representatives Electoral Tribunals, which states that:
“xxx It is understood that the practice on liquidation of
accountability by mere “certification” are considered insufficient as
all claims against government funds shall be supported with complete
documentation (Section 4(6) of Presidential Decree No. 1445).”
17
“xxx The result of your audit which shall include, among
others, issues on augmentation and realignment of funds shall be
included in the 2012 Annual Audit Report of your respective agency.”
Consequently, a Memorandum dated March 25, 2013 was issued by the
Supervising Auditor requesting submission of supporting documents for all the
disbursement vouchers and respective liquidation vouchers for CY 2012 of all
transactions with only the “Certification that the amounts were expended in the
performance of their official duties” as supporting documents to facilitate our audit.
However, in consideration of the foregoing circumstances and that the audit
instructions was issued only in January 31, 2013, Management was required to
submit complete supporting documents for additional allowances of P82,000 given
in December 2012 only.
Considering that as of to date, no supporting documents were submitted in
spite of the instructions/directives to submit the same, the validity of the
transactions cannot be ascertained.
We recommended that Management immediately cause the
submission of the supporting documents for the liquidation vouchers for
December 2012. Further, strict compliance with Section 4(6) of PD 1445 be
adhered to for all transactions of the HRET starting January 1, 2013.
Non-compliance with Budget Requirement for Programs/Projecst Related to Senior
Citizens and Differently-Abled Persons
2. The agency had no programs/projects related to senior citizens and the
differently-abled persons and did not allocate at least one per cent of its budget
as required under Section 29 of the General Provisions of RA No. 10155, GAA
for CY 2012.
Section 29 of RA 10155 (GAA CY 2012), provides that, “Programs and
Project Related to Senior Citizens and Differently-Abled. All agencies of the
government shall formulate plans, programs and projects intended to address the
concerns of citizens and differently-abled persons, and integrate the same in their
regular activities, which shall be at least one percent (1%) of their budget.”
For CY 2012, the agency did not implement any activity specific to senior
citizens and differently-abled persons.
Moreover, all government facilities, including infrastructure, non-
infrastructure and civil works projects of the government, as well as office
buildings, streets and highways, shall provide architectural facilities or structural
features and designs that shall reasonably enhance the mobility, safety and welfare
18
of differently-abled persons pursuant to B.P. Blg. 344 and R.A. No. 7277.
We recommended that Management prepare programs/projects
related to the senior citizens and differently-abled persons and allocate at least
one percent of its budget as required in the above cited GAA provision.
3. Compliance with Tax Laws
In compliance with DOF-DBM-COA Joint Circular 1-200 dated January 3,
2000 and Presidential Memorandum Order No. 219 dated February 13, 1989, taxes
withheld from 2012 disbursements were remitted to the Bureau of Internal Revenue
(BIR) on or before due dates. The total taxes remitted to BIR amounting to
P8,662,313.90 consist of taxes withheld from salaries and expanded and final taxes
withheld from payment of goods and services.
19
STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT
RECOMMENDATIONS
Out of the five audit recommendations contained in the 2011 Annual Audit
Report, two was implemented, one was partially implemented and two were not
implemented, details as follows:
Observations and
Recommendations
Reference
2011
AAR
Page No.
Action Taken by
Management
Auditor’s
Validation
Results
1. a. Payments out of the
Petty Cash Fund (PCF)
exceeded the P15,000
ceiling contrary to
Section 4.3.2 of COA
Circular No. 97-002 dated
February 10, 1997.
We recommended that
Management require the
accountable officers with
unliquidated cash
advances to immediately
settle their accounts, in
compliance with COA
Circular No. 97-002 and
EO No. 298.
We recommended and
Management agreed to
ensure that the SDO
comply with the
requirement that payment
out of the PCF shall be
allowed only for small
amounts not exceeding
the limit of P 15,000
per transaction as
provided in COA Circular
No. 97-002.
15-16
Implemented
Management had
instructed the PCF
custodian to
strictly observe
what is provided
for in the said
Circular, and had
exerted effort not
to exceed the
P15,000
Expenses out of
PCF did not
exceed the
P15,000 ceiling
as shown in the
subsequent
liquidation
reports.
20
Observations and
Recommendations
Reference
2011
AAR
Page No.
Action Taken by
Management
Auditor’s
Validation
Results
1.b. The Cashier was
designated as SDO to
handle PCF contrary to
the specific standard of
Internal Control on
Segregation of duties and
functions.
We recommended and
Management agreed that
for the purpose of sound
internal control system of
the agency, the PCF should
be transferred back to the
custody of the SDO,
General Service since the
purpose for which the PCF
was issued is appropriately
the functions of the said
Office.
16-17 Implemented
The PCF was
already transferred
from the Chief of
the Cash
Management
Service to the LSO
IV of the Legal
Service on detail
with the Office of
the Secretary.
Upon resignation
of the LSO IV, the
PCF was
transferred to the
Ballot Examiner
of the Canvass
Board Service on
detail with the
Office of the
Secretary.
The PCF was
transferred to
Mr. Nino
Emmanuel
Magdalita, Ballot
Examiner of the
Canvass Board
Service, detailed
at the Office of
the Secretary.
2. Management was still
using the traditional cash
payroll scheme in paying
the salaries, allowances
and other personnel
benefits of its officers and
employees instead of the
automated payroll-thru-
bank system, thus,
incurring unnecessary
manpower resources and
exposing payroll money
to risks of losses through
theft or robbery.
We recommended that
Management consider
adopting payment of
salaries thru automated
bank scheme to
17-19
Not implemented
The HRET has
only 127
employees and
payment of
salaries,
allowances and
other personnel
benefits is more
convenient using
the traditional
cash payroll
scheme.
Management
contended that
using the
Automated Bank
Scheme would
entail much time
queuing at the
bank. And if
they use such
scheme,
employees
assigned at the
Cash
Management
Service will have
no more duties to
perform.
Moreover, their
depository bank is
21
Observations and
Recommendations
Reference
2011
AAR
Page No.
Action Taken by
Management
Auditor’s
Validation
Results
strengthen internal
control on cash and to
promote operational
efficiency. Initiate
arrangements/coordinate
with government
depository bank to
implement the payroll
thru ATM.
very near the
HRET.
3. The agency has not
created an Internal Audit
Service/Unit contrary to
Administrative Order
Nos. 278 and 70 dated
April 28, 1992 and April
14, 2003, respectively.
We reiterated our
previous recommendation
that Management
organize an IAS pursuant
to Administrative Order
Nos. 278 and 70.
Otherwise, Management
should request an
exemption from the
application of these
regulations.
19-21
Not implemented
In compliance
with the
provision of
Administrative
Order Nos. 278
and 70, the
Tribunal will
create an IAS to
be supervised by
the Section Chief
of the Accounting
Service, who will
be relieved of her
work in the
Processing Unit.
Management is
considering
implementing the
recommendation
in CY 2013.
22
Observations and
Recommendations
Reference
2011
AAR
Page No.
Action Taken by
Management
Auditor’s
Validation
Results
4. Management was not
able to comply with the budget requirement of providing at least five percent equivalent to P5,604,800 of the total appropriation of P112,096,000 for Gender and Development (GAD), as provided under Sec. 31, General Provision of the FY 2011 GAA or RA No. 10147.
We recommended that Management comply with the mandatory provision of the GAA in allocating at least five percent of the total budget and to accomplish the plans and programs relative to GAD. Moreover, it should add more plans and programs relative to GAD for FY 2012. Further, Management should be guided by Joint Circular No. 2004-1 issued by the DBM, NEDA and NCRFW and other issuances on GAD Planning and Budgeting that may come from other concerned oversight agencies.
21-22
Partially
Implemented
The Tribunal
started with its
GAD program in
November 2011,
with a seminar
conducted by a
resource person
from the CSC.
However,
activities lined up
for the
implementation
of the said
program were not
allowable as
indicated in the
letter received
from the National
Commission on
Women.
.
The agency is
conducting a
Wellness
Program through
a one-hour
physical fitness
activity three
times a week.
23
24
25
26
27
28