AUDIT OBSERVATION MEMORANDUM

AOM No: 2016 001 SNHS

Date: November 15, 2016

FOR : JOSEFINA S. TAN

Secondary School Principal III
Sicayab National High School
Dipolog City

Attention: EUNEY MARIE S. ATILLO

Disbursing Officer II

Cash Examination was conducted on the cash and accounts of the Disbursing Officer
of Sicayab National High School covering the period from August 8, 2016 to November 3,
2016 and noted the following deficiency/s:

The Disbursing Officer (DO) does not have a safe/vault to keep the cash on hand and unused
accountable forms, thus government funds and accountable forms are not properly secured and
vulnerable to theft, pilferage, or loss contrary to Sections 101 and 102 of Presidential Decree (PD)
1445 and Section 66, Volume I and Section 52, Volume III of Government Accounting and
Auditing Manual (GAAM).

Section 101 of PD 1445 and Section 66 of GAAM Volume I state that every officer
of any government agency whose duties permit or require the possession or custody of
government funds or property shall be accountable therefore and for the safekeeping thereof
in conformity with law.

Furthermore, Section 102 of the PD provides:

a. The head of any agency of the government is immediately and primarily

responsible for all government funds and property pertaining to his agency.

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 b. Persons entrusted with the possession or custody of the funds or property under
the agency head shall be immediately responsible to him, without prejudice to
the liability of either party to the government.

Moreover, Section 52 of GAAM Volume III also states that Tangible assets and
records should be physically safeguarded . . . x x x . . .

It was observed that the DO does not have a safe/vault. In an interview with the DO
revealed that the unused accountable forms and its corresponding reports are kept inside in
the steel cabinet thus, exposing it to possible loss, theft or pilferage.

We recommend that the management ensure that asset of the agency especially
cash and records pertaining thereto are protected and properly safeguarded by
providing vault/safe.

May we have your comments on the foregoing audit observations within fifteen (15)
calendar days from receipt hereof.

Thank you.

ENRIQUE A. FRANCISCO, JR.

State Auditor IV
Audit Team Leader

ESTRELLA B. AVILA
State Auditor V
Regional Supervising Auditor

Proof of Receipt of AOM:

Received by: _________________

Date: ______________________