Audit Group B - PNOC and SUBSIDIARIES

AUDIT WORK STEP

For the Period July 1, 2014 - December 31, 2015

Auditee : Philippine National Oil Company (PNOC)

Audit period : July 1, 2014 - December 31, 2015
Prepared by : Rosalina A. Bergonia Date Prepared : 10/20/2014
Reviewed by : Date Reviewed :
Approved by : Date Approved :

Target Dates to Accomplish

No. PROJECT/ACTIVITIES WP PERSONS EXPECTED OUTPUTS 2014 2015
REF. RESPONSIBLE
J A S O N D J F M A M J J A

I. COMPLETION OF THE CY 2013 AUDIT

1 Issue NS/ND/NCs pertaining to CY 2013 audit.

2 Wrap up and archive the CY 2013 Audit R. Bergonia /

Working Papers x x x
J. Umila
3 Follow up receipt of Agency Action Plan
R. Bergonia AAPSI received from x x
and Status of Implementation (AAPSI) Management
from Management
4 Validate the implementation of R. Bergonia /
audit recommendations based on J. Jalil Monitoring Report x x x x x x x x
AAPSI for inclusion in the 2014 AAR.
II. AUDIT OF CY 2014 ACCOUNTS AND OPERATIONS
A. Audit Planning and Risk Assessment
1 Attend Cluster Planning Conference R. Bergonia Cert. of Attendance x
2 Prepare UTA Templates for CY 2014 & 2015 R. Bergonia UTA Templates x x x
3 Assess Agency-level Controls (ALC) R. Bergonia ALC Checklist x x x
4 Prepare walkthrough working papers Process Control Risk
x x x x
on critical path process risks. J. Umali Matrix (PCRM)
5 Prepare Audit Risk Assessment and ARAPT
x x x x
Planning Tool (ARAPT). J. Umali
6 Identify the additional thrust areas for Additional Thrust
x x x x
audit. R. Bergonia Audit Areas
B. Audit Execution
1 Update Audit Programs on selected
x x
audit thrust areas. Updated APP
2 Execute Audit Tests on the following
audit thrust areas: Working Papers, AQMs,
● Receivables AOMs x x
- Collection Efficiency of Receivables

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP PERSONS EXPECTED OUTPUTS 2014 2015
REF. RESPONSIBLE
J A S O N D J F M A M J J A
- Dormant accounts receivable
● Reconciliation of Reciprocal Accounts -do-
- Investments in Subsidiaries and
Affiliates
- Due to/from PNOC Subsidiaries and
Affiliates
● Investment Property -do-
● Property and Equipment -do-
● Other Assets - Banked Gas -do-
● Trust Funds -do-
● Dormant Payables -do-
● Payment of Dividends to the NG -do-
● GSIS, SSS, Pag-ibig, and Philhealth
remittances
-do-
● Compliance with Tax Laws including
remittances of taxes withheld to BIR,
deferred taxes, and income tax
-do-
● Major Source of Income -do-
- Dividend Income
- Rent Income /Deferred Credits
● Allowances and Benefits -do-
● General Insurance of all insurable risks
with GSIS (Insurance Expense) -do-
● Professional/Technical Fees -do-
● GAD Funds -do-
● Validation of accomplishments vs. targets
of the auditees
-do-

3 Perform other audit activities:

a. Conduct cash examination of accountable officers Cash Exam. Report, AOM x

b. Review contracts and prepare Contracts Auditorial and Legal Review

Review Checklist Checklist x x x x x x x x

c. Inspection of goods/infra projects. Inspection Report x x x x x x x x

Witness physical inventory of assets

d. undertaken by Management Witness Report x x x x x x x x

e. Witness public bidding Witness Report x x x x x x x x

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP PERSONS EXPECTED OUTPUTS 2014 2015
REF. RESPONSIBLE
J A S O N D J F M A M J J A

f. Analysis of selected account balances. Working Papers x x x x x x x x x x x x

4 Issue AOMs, AQMs, NS, ND and NC. AOM, AQM, ND, NS, NC x x x x x x x x x x x x

C. Conclusion and Reporting

1 Summarize Audit Results
a. Prepare Summary of Audit Results and
Recommendations
SARR
b. Conduct of exit conference Minutes of meeting x

2 Prepare Annual Audit Report AAR

a. Submission of 1st draft x
b. Submission of final AAR x

3 Perform Overall Audit Review QIT

a. SA level
b. Cluster Level - Audit Quality Control Review

4 Issue NS/ND/NCs pertaining to CY 2014 audit Transmitted NS/ND/NC x x x x x x x x x x x

duly received by the
persons named liable.
5 Reproduce copies of transmitted AAR for Required copies
submission to the OCD. submitted to OCD

6 Wrap up and archive the engagement

a. Organization of WPs Folders/files x x x
b. Organization of AOM files Folders/files x x x

7 Follow up Agency Action Plan and Status of

Implementation (AAPSI) in CY 2014 AAR from AAPSI x x
Management

8 Monitor implementation of audit recomms.

as contained in the AAPSI re: 2004 AAR. x x

III. Start of the Audit of CY 2015 Accounts

1 Identify the audit thrust areas for CY 2015. Proposed Audit Thrust
Areas for CY 2015 Audit x x

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP PERSONS EXPECTED OUTPUTS 2014 2015
REF. RESPONSIBLE
J A S O N D J F M A M J J A
Attend Cluster Planning Conference for CY
2015 Audit and propose identify the thrust
areas for consideration in the CY 2015 Audit.

2 Update IRRBA Templates Updated IRRBA Templates

x x

3 Prepare Audit Programs on selected audit Audit Programs

thrust areas. x x

4 Perform other audit activities as listed under (See Items II.B.3)

II.B.3 for CY 2015 Audit x x

a. Cash Examination
b. Review of contracts
c. Inspection of goods and infra projects
d. Witnessing of physical inventory of assets

e. Witnessing of public bidding

5 Issue AOMs, AQMs, NS, ND and NC. Transmitted AOMs, AQMs,

NS, ND and NC. x x

IV. Pursuant to Cluster 3 Operational Plan for CY 2015

1 Employee Rules and Discipline
1.1 Posting in Audit Group B auditing unit Report to the CD on 100%
the updated: compliance by theTeams x x x
within 3 days from receipt
a. Code of Conduct for COA Personnel
b. Employee Rules/ Guidelines
2 Intensification of agency based performance audit
2.1 Identify the thrust area(s) for VFM audit Audit Thrust Area
for CY 2014 identified for VFM audit for x x x x x x x x
CY 2014
3 Adjudication of appeals, money claims and other legal matters, and related reports
3.1 Recommend for the Decision on request Recommendation of the
for relief from accountability on money ATL for SA Decision
and property not exceeding P100,000. x x x x x x x x x x x x x x

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP PERSONS EXPECTED OUTPUTS 2014 2015
REF. RESPONSIBLE
J A S O N D J F M A M J J A
Recommend action on request for relief Recommendation of the
from money and property accountability ATL and SA submitted to
for losses exceeding P100,000, to the CD. the CD. x x x x x x x x x x x x x x

3.2 Issue NFD on NDs/NCs issued by the SA Issued NFD

and ATLs which are not appealed by the
persons named liable. x x x x x x x x x x x x x x

3.3 Prepare/Review Draft Order to Answer Answer to the Appeals

on Appeals from ND/NC and submit the submitted to the Cluster
same to the CD within the prescribed x x x x x x x x x x x x x x
period.

Prepare draft comments and Comments and

recommendations on cases received by recommendations
the SA and OCD (such as money claims) submitted to the CD
and submit the same to the CD.

3.4 Prepare draft COE for NFD issued by the Draft COE for submission to
SA/ATL the CD. x x x x x x x x x x x x x x

3.5 Submit quarterly inventory of pending Quarterly Inventory of

cases to the OIC - SA. Pending Cases as of the
end of each quarter within
10 days from the end of 10 10 10 10
the quarter.

3.6 Secure updated Inventory of pending Updated Data on the status

cases as of December from the OCD. of appeals and other cases
(Cases include appeals from ND/NC, not available for incorporation
appealed ND/NC, money claims, request in the CY 2014 AAR
for opinion, request for COA’s x x x x x x x x x x x
concurrence in the hiring of lawyers,
requests for write-off, etc)

3.7 Safekeeping of documents pertinent to

the NS, NDs and NCs until these have x x x x x x x x x x x
been fully settled.

4 Assistance in the Preparation of CY 2014 AFR/APSR, and CY 2014/2015 ROSA

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP PERSONS EXPECTED OUTPUTS 2014 2015
REF. RESPONSIBLE
J A S O N D J F M A M J J A
4.1 Accomplish the CY 2014 / CY 2015 AFR AFR Templates submitted
Templates to the CD on or before EO
August 2015
Fill-up AFR Templates and submit the x x x x x
same to the CD

4.2 Accomplish the CY 2014 / CY 2015 APSR APSR Templates submitted

Templates to the CD on or before EO
August 2014 x x x x x

4.3 Prepare Quarterly ROSA for CY Verified ROSA submitted to

2014/2015 the CD within the 10 10 10 10
prescribed period

5 Trainings
5.1 Attendance to the following: All Nominations
• PPSSAs/ISSAIs
• IRRBA
• IRRBAS
• PPSAS/IPSAS
• PFRS/IFRS
• VFM Audit x x x x x x x x
• RA 9184
• Revised Cash Examination Manual

5.2 Prepare/ update templates as All Updated templates

participants in IRRBA x x
x x x x x x
V. Submission of Operational and Administrative Reports
A. Monthly
1. Prepare Monthly Report of Attendance and Report Submitted within
Undertimes (Memo 2011-017) the prescribed period 5 5 5 5

B. Quarterly
1. Prepare Individual Quarterly All
Accomplishment Reports (Res. 2004-010) – -do- x x x x
for ATLs and ATMs
2. Submit Quarterly Accomplishment Reports
(QAR) to OCD -do- x x x x

3. Report of Unliquidated Cash Advances

(Memo 2004-014) -do-

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP PERSONS EXPECTED OUTPUTS 2014 2015
REF. RESPONSIBLE
J A S O N D J F M A M J J A
4. Report of salaries and allowances (ROSA)
Received by Principal Officers and Members 10 10 10 10
of GOCCs
5. Statement of Audit Suspensions
Disallowances and Charges (COA Circular
No. 2009-006) with Status of NSs, NDs & NCs -do- 15 15 15 15

6. Report of Publicized government

Projects/Programs/Activities (COA Circular -do-
No. 2013-004)

C. Semestral
1. Performance Appraisal Form (Res. 2004- -do-
010)
2. Report and Analysis of Disallowances and
Charges (Memo 2009-084) -do- 15 15 15 15
D. Annual
1. Cost of Audit Services
-do- 10

2. Budget Estimates
-do- 10

3. Statement of Assets, Liabilities and Net All

Worth -do- 30

VI. Submission of Operational and Administrative Reports

1. Perform receipt and release of documents,
and liaisoning function x x x x x x x x x x x x x x

COMPOSITION OF TEAM 1 - PNOC:

1. Rosalina A. Bergonia State Auditor IV Audit Team Leader

2. Jalil B. Bagul State Auditor I Team Member
3. Jocelyn T. Umila State Auditor I Team Member

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: 10/20/2014
:
:

Target Dates to Accomplish

2015 REMARKS
S O N D

x
x
x x

x x

x x

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Target Dates to Accomplish
2015 REMARKS
S O N D

x x x x

x x x x

x x x x

x x x x

Page 9 of 19
Target Dates to Accomplish
2015 REMARKS
S O N D

x x x x

x x x x

x x x x

x x x x

Page 10 of 19
Target Dates to Accomplish
2015 REMARKS
S O N D

x x x x

x x x x

x x x x

x x x x

x x x x

x x x x

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Target Dates to Accomplish
2015 REMARKS
S O N D

x x x x

x x x x

x x x x

x x x x

10 10

x x x x

x x x x

Page 12 of 19
Target Dates to Accomplish
2015 REMARKS
S O N D

10 10

x x x x

x x x x

5 5

x x

x x

Page 13 of 19
Target Dates to Accomplish
2015 REMARKS
S O N D

10 10

15 15

15 15

x x x x

Page 14 of 19
Audit Group H - Philippine Postal Corporation
AUDIT WORK STEP
For the Period July 1, 2017 - June 30, 2018

Auditee : PHILIPPINE POSTAL CORPORATION

Prepared by : Jonathan B. Javier Date Prepared :
Reviewed by : Marlyn V. Balazon Date Reviewed :
Approved by : Leila S. Paras Date Approved :

Target Dates to Accomplish

No. PROJECT/ACTIVITIES WP EXPECTED OUTPUTS 2017 2018 REMARKS
REF.
J A S O N D J F M A M J

I. COMPLETION OF THE CY 2016 AUDIT

1 Issue NS/ND/NCs pertaining to CY 2016 M. Balazon/E. Paulino/J. ND/NS/NC
audit. Javier/M. Mamowalas x x

2 Wrap up and archive the CY 2016 Audit J. Javier/M. Mamowalas Working Papers
x x x
3 Follow up receipt of Agency Action Plan Team 1 AAPSI received from
and Status of Implementation (AAPSI) Management
from Management
4 Validate the implementation of J. Javier/M. Mamowalas Monitoring Report
audit recommendations based on x
AAPSI for inclusion in the 2017 AAR.
II. AUDIT OF CY 2017 ACCOUNTS AND OPERATIONS
A. Audit Planning and Risk Assessment
1 Attend Cluster Planning Conference J. Javier Cert. of Attendance x
2 Prepare UTA Templates for CY 2017 Team 1 UTA Templates
3 Assess Agency-level Controls (ALC) Team 1 ALC Checklist
4 Prepare walkthrough working papers J. Javier/M. Mamowalas Process Control Risk
x
on critical path process risks. Matrix (PCRM)
5 Prepare Audit Risk Assessment and Team 1 ARAPT
Planning Tool (ARAPT).
6 Identify the additional thrust areas for Additional Thrust
x x x
audit. J. Javier/M. Mamowalas Audit Areas
B. Audit Execution
1 Update Audit Programs on selected Updated AP
x x
audit thrust areas. J. Javier/M. Mamowalas
Execute Audit Tests on the following Working Papers, AQMs,
2 AOMs
audit thrust areas:
● Receivables from Joint Venture J. Javier x x x x x

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP EXPECTED OUTPUTS 2017 2018 REMARKS
REF.
J A S O N D J F M A M J
● Due to from Area 1 J. Javier x x x x x
● Cash Advance J. Javier x x x x x
● Insurance Expense M. Mamowalas x x x x x
● Dividends to NG M. Mamowalas x x x x x
● Validation of status of implementation J. Javier/M. Mamowalas x
of PYs audit recommendations

● Status of unsettled audit disallowances Team 1

and charges which become final
executory

3 Perform other audit activities:

a. Conduct cash examination J. Javier/M. Mamowalas Cash Exam Reports from
La Loma, Novaliches, COA
and Crame Post Offices X X X X X X X X X X X

4 Issue AOMs, AQMs, NS, ND and NC. M. Balazon/E. Paulino/J. AOM, AQM, ND, NS, NC
Javier/M. Mamowalas X X X X X X x x x x x

C. Conclusion and Reporting

1 Summarize Audit Results
a. Prepare Summary of Audit J. Javier/M. Mamowalas SAOR
Observations and Recommendations x

b. Conduct of exit conference J. Javier/M. Mamowalas Attendance Sheet x x

2 Prepare Annual Audit Report All AAR x

a. Submission of 1st draft
b. Submission of final AAR

3 Perform Overall Audit Review M. Balazon QIT x

a. SA level
b. Cluster Level - Audit Quality Control Review

4 Issue NS/ND/NCs pertaining to CY 2017 M. Balazon/E. Paulino/J. Transmitted NS/ND/NC

audit Javier/M. Mamowalas duly received by the
persons named liable

5 Reproduce copies of transmitted AAR for All Required copies

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP EXPECTED OUTPUTS 2017 2018 REMARKS
REF.
5 J A S O N D J F M A M J
submission to the OCD. submitted to OCD

6 Wrap up and archive the engagement J. Javier/M. Mamowalas Folders/files

a. Organization of WPs
b. Organization of AOM files

7 Follow up Agency Action Plan and Status of J. Javier/M. Mamowalas AAPSI

Implementation (AAPSI) in CY 2016 AAR
from Management

8 Monitor implementation of audit recomms. J. Javier/M. Mamowalas

as contained in the AAPSI

III. Start of the Audit of CY 2018 Accounts

1 Identify the audit thrust areas for CY 2018 Cluster and Team Proposed Audit Thrust
Areas for CY 2018 Audit

Attend Cluster Planning Conference for CY

2018 Audit and propose identify the thrust
areas for consideration in the CY 2018
Audit.

2 Update IRRBA Templates NA Updated IRRBA Templates

3 Prepare Audit Programs on selected audit J. Javier/M. Mamowalas Audit Programs

thrust areas.
4 Perform Cash Examination J. Javier/M. Mamowalas Cash Exam Report

IV. Pursuant to Cluster 3 Operational Plan for CY 2018

1 Employee Rules and Discipline
2 Intensification of agency based performance audit
2.1 Identify the thrust area(s) for VFM J. Javier/M. Mamowalas Audit Thrust Area
audit for CY 2018 identified for VFM audit
for CY 2018 x

3 Adjudication of appeals, money claims and other legal matters, and related reports

Page 17 of 19
 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP EXPECTED OUTPUTS 2017 2018 REMARKS
REF.
J A S O N D J F M A M J
3.1 Recommend for the Decision on M. Balazon/J. Javier Recommendation of the
request for relief from accountability ATL for SA Decision
on money and property not exceeding x x x x x x x x x x x x
P100,000.

Recommend action on request for Recommendation of the

relief from money and property ATL and SA submitted to
accountability for losses exceeding the CD. x x x x x x x x x x x x
P100,000, to the CD.

3.2 Issue NFD on NDs/NCs issued by the SA Team 1 Issued NFD

and ATLs which are not appealed by
the persons named liable.

3.3 Prepare/Review Draft Order to Answer J. Javier Answer to the Appeals

on Appeals from ND/NC and submit submitted to the Cluster
the same to the CD within the prescribed x x x x x x x x x x x x
period.

Prepare draft comments and M. Balazon Comments and

recommendations on cases received by recommendations
the SA and OCD (such as money submitted to the CD
claims) and submit the same to the CD. x x x x x x x x x x x x

3.4 Prepare draft COE for NFD issued by M. Balazon/J. Javier Draft COE for submission
the SA/ATL to the CD x x x x x x x x x x x x

3.7 Safekeeping of documents pertinent to M. Mamowalas

the NS, NDs and NCs until these have x x x x x x x x x x x x
been fully settled.

4 Assistance in the Preparation of CY 2017 AFR/APSR, and CY 2017/2018 ROSA

4.1 Accomplish the CY 2017 AFR Templates Team 1 AFR Templates submitted
to the CD on or before
Fill-up AFR Templates and submit the July 31, 2018
same to the CD

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 Target Dates to Accomplish
No. PROJECT/ACTIVITIES WP EXPECTED OUTPUTS 2017 2018 REMARKS
REF.
J A S O N D J F M A M J
4.2 Accomplish the CY 2017 / CY 2018 Team 1 APSR Templates
APSR Templates submitted to the CD on
or before _____________

4.3 Prepare Quarterly ROSA for CY Team 1 Verified ROSA submitted

2017/2018 to the CD within the
prescribed period

5 Trainings
5.1 Attendance to the following: All Nominations
• PPSSAs/ISSAIs
• IRRBA
• IRRBAS
• PPSAS/IPSAS
• PFRS/IFRS
• VFM Audit x x x x
• RA 9184
• Revised Cash Examination Manual

5.2 Prepare/ update templates as All Updated templates

participants in IRRBA x x x x

V. Submission of Operational and Administrative Reports

See AAW of Team 1

COMPOSITION OF TEAM 3 - PNOC Subsidiary

Marlyn V. Balazon State Auditor V Supervising Auditor

Jonathan B. Javier State Auditor III OIC-Audit Team Leader
Muhammad Reza M. Mamowalas State Auditing Examiner II Audit Team Member

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