STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATIONS
Follow up and validation on the actions of Management on audit recommendations contained
in the Consolidated Annual Audit Report for the year ended December 31, 2015 noted that of the 82
recommendations 22 were fully implemented and 60 were partially implemented:
Observations and
Recommendations
VALUE FOR MONEY
Budget Utilization
1. Of the P42.977 billion
unutilized allotment of the DepEd,
the Central Office (CO) has 69
percent share of the unutilized
portion totaling P29.670 billion, the
ROs with P11.985 billion or 28
percent, and the remaining P1.323
billion or three percent for the
Bureaus. The CO’s unutilized
allotment affected the efficient
implementation of the DepEd’s
programs and projects on the
delivery of its performance targets
attributed to some gaps noted in
carrying out required processes/
procedures such as: (a) 43,544
undelivered ICT packages worth
P7.46 billion under the DepEd
Computerization Program,
(b) 71,692 undelivered packages of
basic Science and Mathematics
Equipment compliant to the K to 12
Curriculum valued at P4.79 billion,
(c) 1,139,192 Out of School Youth
not yet enrolled/ covered under the
Abot Alam Program of P2.92
billion, and (d) 114,307,233
unprocured Kinder to Grade 10
Textbooks and Instructional/
Learning Materials amounting to
P2.413 billion.
Status of
Implementation
Ref. Management's Actions and Results of
Auditor’s
Validation
CAAR To strengthen monitoring and Fully
2015 coordination among the DepEd Offices Implemented
Pages (CO/ROs/DOs/Schools) so that
95 -113 appropriate corrective measures can
readily be provided to successfully carry
out the programs/projects implementation
for the benefit of the students;
To enhance the efficiency and Fully
effectiveness of the procurement Implemented
processes through adequate planning and
realistic timelines to fast track timely
implementation of programs, improve
public spending, and increase the quality
of service delivery to its primary
stakeholders; and
To ensure the optimum utilization of Partially
funds received through timely releases of Implemented
Sub-ARO to operating units and conduct
of regular monitoring in the use of
allotments to immediately address issues
causing inefficient or non-utilization
thereof so that concerned officials can
consider other options/strategies towards
sustainability of the delivery of the
programs/projects’ objectives.
303

Observations and
Ref.
Recommendations
We recommended that the
Management revisit its operating
strategies to ensure achievement
of the strategic objectives that it
envisioned to realize based on the
commitment laid down in the
GAA and strengthen monitoring
and coordination among the
DepEd Offices in the implemen-
tation of various programs/
projects since accomplishment of
every segment of the DepEd’s
organization will have an effect in
the assessment of the
performance of DepEd as a
whole.
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
CO
DepEd Computerization Program (DCP):
In 2016 the DepEd explored the
possibility of procuring a portion of its
computer requirements through the
United Nations Development Program
(UNDP), as allowed under GPPB
Resolution No. 29-2015.
Science and Mathematics Equipment
(SME):
In January 2016, P3.685 billion worth of
SME has been awarded. Deliveries of
equipment are on-going and are expected
to be completed by December 2016. As of
May 2016, P3.174 billion or 79 percent of
the P4.0 billion FY 2015 allotment for
SME has been obligated.
Abot Alam Program:
The updated Learner Information System
(LIS) data will provide a more accurate
count of OSYs mapped and enrolled by
Abot-Alam in basic education and will be
the basis for the next downloading of
funds to the Regions and Divisions to
cover teacher allowances, capacity
building, advocacy and social
mobilization, and monitoring and
evaluation. Thus, after the downloading
of the second tranche of allowances for
ALS implementers from the 2014
continuing funds in June 2015, and before
the Department proceeded with the
downloading of 2015 funds to cover an
additional target of 650,000 learners for
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 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
basic education. The Divisions were
asked to submit their 2014 fund utilization
reports and upload/encode their data of
enrolled learners in the Department’s LIS.
They were also asked to upload on the LIS
their data of “OSYs mapped for basic
education but not yet enrolled”. This
process was scheduled to be completed on
May 20, 2016.

Textbooks/Instructional Materials:

In 2016, P145 million worth of Grades 3,

8 and 9 learning materials were procured
with Notices to Proceed for issuance
while the Grades 1 and 7 materials are
subject to resolution of copyright issues.
Likewise the Grade 5 learning materials
have been evaluated and awarded in 2016
and is already programmed for
reproduction.

Government Assistance to Students and

Teachers in Private Education
(GASTPE):

As of May 2016, only P719 million or 8

percent out of the P8.337 billion FY 2015
allotment for GASTPE remains
unobligated. This amount can be
considered as savings since obligations
for ESC grantees in SY 2015-2016 have
been accounted for, including the
Management fee, in-service training and
research funds allocated for the Private
Education Assistance Committee
(PEAC), the program manager of the
GASTPE program.

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 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Provision and Maintenance of Basic
Education Facilities Fund (BEFF):
The unobligated amount reflected
pertains to the P2.473 billion allotment for
repairs and rehabilitation that was
released by the DBM to DepEd, P1.062
billion directly released to the RO for the
implementation of the Bottom-Up
Budgeting and P1.31 billion that was
released in August 2015. This amount has
since been sub-allotted to the Regional
and DOs upon submission of Resolutions
to Award. However, in the course of
implementation, several failures of
biddings were encountered thereby
resulting to the need to rebid the projects.
Quick Response Fund (QRF):
Most of the budget was used to fund the
repair and rehabilitation of school
buildings damaged by typhoons Amang,
Lando, and Nona. There is a need for the
DepEd engineers to conduct actual
validation of damages to determine the
extent of repair/rehabilitation works or
replacement needed by the schools. This
process takes some time and is the basis
for the allocation of funds under QRF.
On the late releases of sub-allotment to
regions/divisions: A large share of the
funds downloaded in the last quarter were
for the programs wherein DepEd requires
the submission of Resolution to Award
prior to the downloading of funds (i.e.
BEFF and QRF). The Department has
adopted this policy to ensure that the
allotments downloaded to the field units
are fully obligated.

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 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Implementation of projects under Basic Educational Facilities Fund
 Public Private Partnership for School Infrastructure Program (PSIP) I and II
2. The PSIP I with contract cost CAAR CO
of P16.280 billion to construct 2015
9,298 classrooms in ROs I, III and Page On the adequate guidelines for reporting Fully
IV-A and PSIP II for contract 114 - school building infrastructures needing Implemented
amount of P3.859 billion to 144 repair, rehabilitation or reconstruction
construct 4,370 classrooms in CAR, works under PSIP I and II:
CARAGA, Regions I, II, III and X DepEd thru the Education Facilities
to address the backlog and Division (EFD) together with the
increasing classroom requirements respective PSIP 1 proponents conducted
and completely provide the school in 2015 a series of orientation/training
children with the needed school with school heads of PSIP 1 recipient
facilities that would contribute to school. The training is supplemented by a
the improvement of their learning building maintenance manual that
process were not completed within contains the basic procedure for
the construction schedule under the conducting maintenance of PSIP
Build-Lease-Transfer (BLT) completed buildings including a report
Agreement for PSIP I and Build- card where the schools should submit
Transfer (BT) Agreement for PSIP their report to the proponent on any
II due to inability to consider and problems/issues that needs to be
evaluate projects sites and thorough addressed by the proponent.
conduct of assessment of would-be
recipient schools, lapses in the On the Evaluation of project sites and
procurement process and conduct/inspection/appraisal of a Fully
unattended deficiencies/defects thorough assessment of would-be Implemented
which delayed the completion of recipient schools sites:
schools buildings.
Prior to the bidding of the projects in
We recommended concerned 2010-2011, DepEd Regional and DOs
Management to: conducted site appraisals for would be
PSIP sites. The output of this activity
a. CO – which is the Site Appraisal Report (SAR)
was part of the bidding documents issued
 provide adequate guidelines to bidders during the bidding in 2012 and
for reporting school building 2013. It was emphasized during the
infrastructures needing conduct of the bidding that the bidders
repair, rehabilitation, or should conduct due diligence in
reconstruction works under confirming the result of SAR, thus they
the PSIP I and II; may also conduct their own validation.

307
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
 evaluate project sites and During the implementation, realignments
conduct a thorough were made by the proponents in some
assessment of would-be sites due to the following;
recipient schools; 1.) Accessibility issues; 2.) Security
issues; 3.) Site has no buildable space.
 ascertain compliance with the The issue on no buildable space was
PD No. 1096, the 1997 attributed due to the delayed
National Building Code of the implementation of the project (appraisal
Philippines (NBCP) and other in 2011 and actual construction in 2013),
relevant rules and regulations wherein some schools have permitted the
related to construction; construction from other fund sources
thinking that PSIP project will not
 ensure that the Proponent commence. This is inspite of the
undertake the repair, memorandum issued by the Secretary on
rehabilitation, or reconstruc- the reservation of PSIP sites.
tion in accordance with
On compliance with the PD No. 1096, Fully
Section 13 of the BT
1997 National Building Code of the Implemented
Agreement and imposed the
Philippines (NBCP) and other relevant
necessary liquidated damages
rules and regulations related to
upon failure of the Proponent
construction:
to comply therewith;
The standard detailed engineering plans
b. Concerned Regions – and specifications went thru the process
of evaluation during the bidding of the
 make proper coordination projects and were accepted by consultants
among officials/personnel/ as complying with the requirements of the
contractors involved in the Minimum Performance Standard and
implementation of projects to Specifications (MPSS). These were
ensure that the Proponent further reviewed and evaluated by the
comply with its obligation to Independent Consultants (ICs) of the
repair or rectify, at its own project and were recommended to DepEd
cost, all defects and for implementation. The proponent has an
deficiencies observed by obligation to secure building permit for
DepEd during the period in the implementation of the projects.
order to make the Project
conform to the MPSS; On ensuring that the proponent undertake Partially
the repair, rehabilitation, or reconstruction Implemented
 conduct thorough site and the imposition of the necessary
inspection/appraisal and liquidated damages upon failure of the
consider all factors that may proponent to comply therewith:

308

Observations and
Ref.
Recommendations
affect the construction of
proposed school buildings;
and
c. henceforth, exercise diligent
monitoring and supervision of
the implementation of project
to ensure that only those
projects done in accordance
with the requirements of the
contract are accepted and paid.
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
Regular monitoring of the projects
needing repair/rehabilitation/recons-
truction is being done by EFD. This
includes projects under the Defects and
Liability Period (DLP) and under
warranty. Update on this is regularly
being submitted to COA for information.
Per Certification issued by the Office of
Planning Service- Education Facilities
Division dated May 30, 2016, the 64 sub-
projects with noted defects and/or
deficiencies for Contract Package C in
Region IV-A under Citicore-Megawide
Consortium Inc. have already been
completed for the repair works for 55 sub-
projects while 9 sub-projects are still on-
going.
On the monitoring and supervision of the Fully
implementation of the project on the Implemented
regional/division level.
The Division Engineers were also part of
the joint inspection team composed of the
DepEd, IC and proponent for the conduct
of final inspection which was a pre-
requisite for the approval of the
Certificate of Completion and Certificate
of Appearance.
On the proper coordination among Fully
officials, personnel and contractors to Implemented
ensure that the proponent comply with its
obligation to repair or rectify, at its own
cost, all defects and deficiencies observed
by DepEd in conformance with the
MPSS.
Regional and DOs are participants of the
regular Regional Monthly Coordination
Meetings being conducted by the IC
309

Observations and
Ref.
Recommendations
Implementation of projects under Basic Educational Facilities Fund
 Repairs and rehabilitation of classrooms and construction of school buildings under BEFF
3. Repair and rehabilitation of CAAR
classrooms costing at least 2015
P922,568,510.13 located in 12 Page
regions were not done/completed 144 - CO
as planned/scheduled due to non- 153 Department formed a cluster under
observance of the rules and
procedures of RA No. 9184 and its
revised IRR that delayed the
procurement process and
implementation of projects, and
unattended deficiencies/defects
which affected the efficient
implementation of the projects.
Moreover, delayed provision of
classrooms in Region VII (DO
Bohol) has been observed as total
of 88 classrooms or 68.22 percent
of 129 classrooms for construction
worth P53,446,425.39 funded by
CY 2012 BEFF were completed as
of December 31, 2015, while 41 or
31.78 percent of classrooms with
allocated cost of P25,685,547.52
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
together with the proponent to determine
the issues and concerns in the
implementation where the region/division
can provide assistance in the resolution of
issues to avoid further delay in the
implementation of the project. The
Division Engineers were also part of the
joint inspection team composed of
DepEd, IC and proponent for the conduct
of final inspection which was a pre-
requisite for the approval of the
Certificate of Completion and Certificate
of Acceptance.
Partially
Implemented
Partially
contract of service that will be assigned in Implemented
divisions with no engineers or those
divisions with high volume of
constructions to properly monitor project
implementation
a. Repairs/Rehabilitation of classrooms
not completed/done as scheduled/
planned
RO I
Delay of the implementation was due to Partially
revision of Program of Work (POW) Implemented
hence the proposed school building were
already repaired by the School during
Brigada Eskwela and some were
programmed by the LGUs.
310
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
were abandoned but no action was RO II
taken against the erring contractors Management commented that they will be Fully
that resulted in unfinished/ more diligent in the monitoring of these Implemented
unstarted projects to the detriment projects and requested the engineers to
of the students. immediately take appropriate actions to
ensure that implementation of the projects
We recommended that the is within timelines and in accordance with
Management require concerned plans and specifications.
Offices of the Department to
exercise diligent monitoring and RO III
supervision on the Already inspected by and paid the 2014 Fully
implementation of projects on BEFF – Repair and Rehabilitation of Implemented
the construction and Classrooms.
rehabilitation of classrooms to
RO VIII
immediately address issues and
Management will hasten the release of Partially
lapses thereof, which certainly
fund to be able to proceed and fully Implemented
affects the delivery of physical
implement the said program/project.
targets, to address resource gap
in school facilities and the Equipment availability and failure,
provision of adequate, safe, weather condition and transportation
comfortable and functional constraints.
facilities conducive to learning
and teaching. RO XIII
Constant coordination with the CO. Partially
Implemented
Proceeded with the procurement process
while waiting for the SARO to expedite
the repair and rehabilitation of the
identified schools.

CAR
Management also added that concerned
Partially
personnel/officials are required to review
Implemented
the different stages of procurement,
identify the cause of delay and avoid
similar lapses in future procurements.

RO VI
All construction were reported to be
Partially
100percent and was inspected last June
Implemented
2016

311
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation

RO XI
DO COMVAL, Davao del Sur, Digos City Fully
Implemented
b. Non-compliance with applicable
provisions of RA No. 9184 and its IRR

RO V
Some corrective works that were Partially
recommended by the Engineer were not Implemented
yet inspected.

Region VI
Province of Negros Occidental Partially
Implemented
c. Deficiencies/Defects on repairs
undertaken

RO IV-B
Partially
The Schools Division Superintendent of Implemented
Oriental Mindoro through the Chief,
School Governance and Operations
Division (SGOD) submitted the
certifications from the Contractors that
the deficiencies and findings have been
rectified/corrected and submitted pictures
showing the renovations made on each
concerned cluster including the school
building in Balugo NHS. The
Management requested for re-inspection
of the projects, however, the team could
not forward the request to COA-TAS
pending the submission of Agency
Inspection Reports.

Timelines in the project implementation

were not followed. Repair and
rehabilitation of School Buildings
particularly those located in the 3rd
legislative district of Albay (lot 8) and 2nd
legislative district of Sorsogon (lot 13)

312

Observations and
Ref.
Recommendations
Implementation of projects under Basic Educational Facilities Fund
 DPWH constructed School Buildings
4. In Region X (DO Gingoog CAAR
City), of the 150 classrooms 2015
having total contract cost of Page
P199,827,967.32 supposed to be 154- CAR
accomplished during the year by 156
the DPWH, only five classrooms
or three percent costing
P4,439,899.17 was reported 100
percent completed; 131
classrooms or 88 percent worth
P181,634,458.15 were still under-
going construction; while 14
classrooms or nine percent of the
total number of classrooms
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
were still unfinished as of December 31,
2016.
d. Delayed completion of construction of
School Buildings out of the FY 2012
BEFF
DO Bohol
Some of the unstarted projects were Partially
already given allocations such as Biasong Implemented
ES, Loon which has a new classroom
funded by DepEd thru Public Private
Partnership, Busao HS, Maribojoc which
has a new construction of two classrooms
funded by DepEd QRD fund, Canmaya
Centro Diot, Sagbayan which has three
new classrooms funded by Aboitiz
Foundation, Handumon ES and
Handumon HS, Getafe which has one
classroom and three classrooms,
respectively, from BEFF 2014 Batch 1
and Datag ES, Inabanga which has an
allocation for a 2 storey 4 classroom
building in the BEFF 2014 Batch 6.
Partially
Implemented
The issue on the ownership of the school Partially
site at Apatan ES has already been Implemented
resolved to date. For the Kalinga NHS-
Ambato Tinglayan Annex, the school
building has already been completed,
There are still some corrective works to be
undertaken for the Ambato Tinglayan
Annex .
313
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
amounting to P13,753,610.00 For Butbut and Loccong ES, Management
were not yet started due to committed to coordinate with DPWH
problems encountered in the Management to address the problem.
procurement, site and release of
funds. On the other hand, the RO X
inability to consider site condition DO Gingoog
in cost estimates, the school Still on process of coordinating with Partially
buildings with allocated amount of DPWH for monitoring of new projects Implemented
P24,015,939.46 for two schools
under NCR (DO Caloocan) were On-going inspection & verification of
not fully completed for insufficient Completed School buildings
fund; while in CAR (DO Kalinga),
four school buildings funded by NCR Fully
the 2013 BEFF remained Implemented
unfinished and abandoned as of
December 31, 2015 due to legal
disputes on land ownership and
labor.

We recommended that the

Management require the ROs
and DOs to strictly observe the
monitoring/coordination re-
quirement starting from the pre-
construction stage to completion
of school buildings constructed
by DPWH as provided under
DBM, DepEd and DPWH Joint
Circular No. 2013-1 and DepEd
Order No. 1, s. 2010.
Implementation of projects under Basic Educational Facilities Fund
 Provision of school furniture under BEFF
5. The equitable and adequate CAAR Partially
provision of school furniture in the 2015 A. Delayed execution of procurement Implemented
schools located in Regions NCR, Page and timely delivery of school furniture
CAR, II, VI, X and XI to address 156-
the gaps in school facilities under 162 RO II-ROP
BEFF was affected by: The Management is closely monitoring Partially
(a) deficiencies observed in the the deliveries of the school furniture to Implemented
execution of procurement process ensure that these are available before the

314
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
that delayed the use of furniture classes start for SY 2016-2017.
with allocated budget of at least Liquidated damages will also be imposed
P69,367,593.76; (b) inclusion in to the supplier if there are late deliveries.
delivery of defective or inferior
quality armchairs attributable to RO XII
At present, progress billings are now Partially
leniency in adhering the required
processed for payment to contractors and Implemented
procedures on inspection of
procured furniture worth delivery of the school furniture are now
P1,282,070.00; (c) non-adherence on going.
to the prescribed procedures in
RO VI
accepting deliveries; (d) non- Fully
Procurement is being undertaken by the
compliance with applicable Implemented
agency up to Resolution to Award (RTA)
provisions of RA No. 9184 and its
while still waiting for the fund/allotment.
IRR and (e) inadequate
assessment/validation of school B. Delivery of defective or inferior
furniture allocation. quality armchairs attributable to leniency
in adhering the required procedures on
We recommended that the inspection of procured furniture.
Management require the
concerned Offices to strengthen RO X
the monitoring of project The Management through the Regional Fully
implementation and to ensure Inspectorate Team informed the supplier, Implemented
that funds and school furniture Ang Panday Producer’s Cooperative, to
reached the intended act on the findings and observations made
implementers and recipient by the composite COA-DepEd Regional
schools early on before the start Inspectorate Team held on January 26 –
of school year, the Suppliers/ February 19, 2016 at the schools/DOs of
Contractors faithfully perform Lanao del Norte, Iligan City, Ozamis
their contractual obligations, and City, Misamis Oriental and Bukidnon.
the DepEd Regional/Division/
School officials observe prudence C. Non-compliance with applicable
in carrying out their duties to provisions of RA No. 9184 and its IRR
avoid delays in the provision of
RO V
adequate school seats.
DO Masbate: the contractor has already Partially
requested for time extension and the BAC Implemented
had prepared a resolution granting the
request of contractor and approved by the
SDS and also promised to impose
liquidated damages, if necessary, for the
unfinished contract.

315
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Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation

RO XI Fully
DO COMVAL: Management admitted the Implemented
lapses and immediately furnished the
COA office of the lacking documents.
With regards to the questioned 12 percent
VAT of the bid price, the Management
opted not to pay the supplier the whole
contract amount but retained the
equivalent 12 percent, pending on-going
consultation with proper authorities for
the validity of the transaction.

NCR
DO Caloocan implemented the audit Partially
recommendation Implemented

Coordination with DPWH officials to

hasten construction of the SBs were not
done by DOs Navotas and Valenzuela
School Based Feeding Program (SBFP)
6. The implementation of the CAAR To assign a Regional Technical Working Fully
SY 2015-2016 SBFP as reported in 2015 Group or a focal person to monitor the Implemented
five ROs (IV-A, VI, VIII, X, NCR) Page activities of the SDOs including the
with disbursements aggregating to 162- timely release of funds to SHs, progress of
P213,483,449.00 encountered 171 implementation, liquidation of funds and
interruptions/delays due to late submission of reports, as required by
receipt or lack of funds of DepEd Order No. 33, s. 2015;
implementers that eventually
resulted to deferred/non To conduct regular monitoring in the Fully
completion of the 120 feeding days release, receipt and use of funds and Implemented
and unprocured or inadequate enforce the timely submission of reports
provision of iron supplement, by the Regions/DOs and schools to
toothbrush/toothpaste/soap immediately address issues concerning
essential to health care and the program implementation so that
hygiene; and unmonitored cycle concerned officials can strategize for the
menu and healthy meals served. effective delivery of desired results for
These lapses could adversely SBFP;
affect the attainment of the
To exert extra effort to observe the Partially
targeted significant impact on the
implementing guidelines set forth under Implemented

316

Observations and
Ref.
Recommendations
health and nutritional status of the
school children and likewise,
depriving them to have gain the
full benefits expected from the
program.
Similarly, the DSWD-funded
SBFP for SY 2014-2015 also
encountered delayed
implementation attributed to late
receipt of funds and non-
compliance to operational
guidelines by implementing
schools affecting completion of the
120 feeding days and healthy food
requirements.
We recommended that the
Management require concerned
implementing DepEd Offices/
Schools to::
 assign a Regional Technical
Working Group or a focal
person to monitor the activities
of the SDOs including the
timely release of funds to SHs,
progress of implementation,
liquidation of funds and
submission of reports, as
required by DepEd Order No.
33, s. 2015;
 conduct regular monitoring in
the release, receipt and use of
funds and enforce the timely
submission of reports by the
Regions/DOs and schools to
immediately address issues
concerning the program
implementation so that
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
DepEd Order No. 33, s. 2015 on SBFP;
and
for DSWD funded SBFP, submit to Partially
DSWD all required reports and return any Implemented
unutilized fund balance as provided for
under DepEd Order No. 37, s. 2014.
SBFP for SY 2015-2016
RO IV-A
Division of Calamba City Partially
The BAC recommended the Alternative Implemented
Method of Procurement (Shopping).
Using this method, the Agency was able
to issue Purchase Orders for iron tablets
and health kits. During the orientation
made by the CO, DepEd HNC recognized
that the budget allotted for iron tablets and
health kits are very low, but they were
able to find suppliers for the said
commodity. Also, they acknowledged the
late issuance of SUB-ARO.
Division of Sta. Rosa City quotations
from the three local pharmacies was P0.70
per tablet so that no local pharmacy can
supply the quantity of the said item as
indicated in the program. Likewise, they
were forwarding to the CO their comment
about the very low budget allocated for
iron tablets and health kits to come up
with a more realistic budget of the above
commodities.
Division of San Pablo City, iron tablets
and health kits were purchased on
December 23, 2015 using part of the
Division’s MOOE fund to comply with
the required time table set by the DepEd
CO to improve the school children’s
health and nutrition values and behavior
317
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
concerned officials can and the conduct of complimentary
strategize for the effective activities such as good grooming and
delivery of desired results for personal hygiene.
SBFP;
DO Rizal
The Division has already instructed the Fully
 henceforth, exert extra effort Implemented
to observe the implementing personnel in charge with the SBFP of
guidelines set forth under DepEd Rizal to constantly coordinate
DepEd Order No. 33, s. 2015 with the DepEd RO for the prompt release
on SBFP; and of funds.

RO VIII
 for DSWD funded SBFP, DOs of Leyte Tacloban City, Borongan Fully
submit to DSWD all required City, Northern Samar, Eastern Samar, Implemented
reports and return any Calbayog City, Ormoc
unutilized fund balance as
provided for under DepEd DO Maasin Partially
Order No. 37, s. 2014. Implemented
RO X
DO El Salvador Fully
During the exit conference, the SBFP Implemented
Focal Person and the Division Accountant
stated that numerous verbal
communications had been made to follow
up DepEd CO of the release funds through
the DepEd RO X prior to the full release
of the first tranche to ensure that
implementing schools can have the
funding on time.

SBFP for SY 2014-2015

RO II Fully
DO Isabela Implemented
RO III Fully
ROP; DOs Malolos will closely monitor Implemented
the implementation of the School Based
Feeding Program as stipulated in DepEd
Order No. 37 s. 2014.

318
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
NCR Partially
DO Tapat Implemented
Collating all the reports and explanations

DO Marikina Partially
The cycle menu were not followed Implemented

DO San Juan; Parañaque Fully

The SBFP for SY 2015- 2016 have been Implemented
fully downloaded to recipient Schools

DO Quezon City Partially

Unutilized SBFP funds of DO QC in the Implemented
amount of P3,494,528.00 were not yet
returned to DSWD as of December 31,
2016.

The actual utilization/distribution of the Partially

6,310 bottles ferrous sulfate by the SBFP Implemented
beneficiaries is yet to be accounted for

RO IV-B
Fully
DO-Oriental Mindoro and Calapan City
Implemented

Partially
DO-Palawan
Implemented

Partially
RO V
Implemented
DO Albay
Fully
DO Camarines Norte
Implemented
RO VI Partially
DOs Antique, Passi City, Implemented

RO X Partially
DOs of Iligan, Malaybalay, Valencia Implemented
DO Cagayan de Oro; DO Gingoog Fully
Required reports were already submitted Implemented
on time.

319

Observations and
Ref.
Recommendations
DepEd Computerization Program
7. The lack of a more CAAR To ensure the school readiness
comprehensive monitoring and 2015 immediately after the project planning Implemented
evaluation by the Program Page design stage and not during contract
Management Committee for CY 171- implementation. Early notice to school
2014 DepEd Computerization
Program covering Batches 26, 27
and 28 E-Classroom Packages
totaling P2.7 billion resulted to:
(a) undelivered computer packages
amounting to P1.5 billion which
are delayed following the time
schedule prescribed in the contract
that could not only adversely affect
the timely provision of appropriate
technologies to public schools as
desired by DepEd but would also
determine suppliers’ liability for
liquidated damages on late
deliveries without valid time
extension; (b) unrecorded
deliveries of IT Packages totaling
P1.1 billion in the books of
accounts of the DOs and secondary
schools hence no controlling
account for the accountability and
understating the appropriate
equipment account in their
respective financial statements;
and (c) payment of suppliers’
progress billings not in compliance
with the payment provisions of the
contract.
We recommended and the
Management agreed to require
the concerned CO Offices:
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
Fully
183 recipients allows for preparation with
adequate time, resources and personnel
before project implementation. It will also
allow the Management to consider a
realistic contract completion date for the
project which will eliminate extension of
completion dates.
To conduct an effective program Fully
orientation for the recipient schools, Implemented
division and ROs highlighting the
importance of coordination, and
preparation of reports in accordance with
existing DepEd guidelines. The
reportorial requirements as per the related
DepEd issuances serve as indicators that
would allow the CO to objectively
measure the program’s progress, verify
the achievement of its objectives and
become aware of other conditions which
could restrict the progress of activities,
and the primary outcome of the program.
Property Division to prepare the Property Partially
Transfer Report for the delivered ICT Implemented
packages to be submitted to Accounting
Division which the latter will be used as a
basis for dropping the ICT equipment
from the books of accounts.
Accounting Division to consider the
Partially
interest of the government by not
Implemented
allowing payments to supplier billings not
in accordance with the conditions as
stipulated in the provisions of the
contract.
320

Observations and
Ref.
Recommendations
a. ICTS -
 to ensure the school
readiness immediately after
the project planning design
stage and not during
contract implementation.
Early notice to school
recipients allows for
preparation with adequate
time, resources and
personnel before project
implementation. It will also
allow the Management to
consider a realistic contract
completion date for the
project which will eliminate
extension of completion
dates.
 to conduct an effective
program orientation for the
recipient schools, division
and ROs highlighting the
importance of coordination,
and preparation of reports
in accordance with existing
DepEd guidelines. The
reportorial requirements as
per the related DepEd
issuances serve as indicators
that would allow the CO to
objectively measure the
program’s progress, verify
the achievement of its
objectives and become
aware of other conditions
which could restrict the
progress of activities, and
the primary outcome of the
program.
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
CO
Management also emphasized that ICTS Partially
developed a DCP ticketing system that Implemented
will address the deployment monitoring in
the schools and the supplier’s
performance on responding to after sales
concerns reported by recipient schools.
The plan is to use this system in the 2015
DCP batches which will commence
deployment in May 2016.
CAR
The Inventory and Monitoring Team Partially
included the assessment of connectivity of Implemented
schools in the inventory conducted in
April and May 2016
RO II
Computer units per school were Partially
categorized as working, not working, for Implemented
repair. A report was sent to the supplier of
the ICT packages.
So far only one laptop has been repaired
from among the laptop that were
determined to be not functional further,
Replacement of the defective AVR found
during the validation remained not acted
upon/replaced.
321
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
b. Property Division to prepare
the Property Transfer Report
for the delivered ICT
packages to be submitted to
Accounting Division which
the latter will be used as a
basis for dropping the ICT
equipment from the books of
accounts.

c. Accounting Division to
consider the interest of the
government by not allowing
payments to supplier billings
not in accordance with the
conditions as stipulated in the
provisions of the contract.
DepEd Internet Connectivity Project (DICP)
8. In six Regions, the inability CAAR Facilitate early release of funds to Fully
to evaluate and regularly monitor 2015 implementing offices for the efficient Implemented
implementation of the DepEd Page implementation of DICP;
Internet Connectivity Project 183-
hampered the immediate provision 194 Remind the School heads/Principals of Fully
of necessary interventions on IUs to charge internet subscription fees Implemented
internet connectivity problems and from the DICP funds; avoid charging
proper utilization of funds that them from school MOOE; and strictly
could be detrimental to students adhere to the guidelines set on each
and teachers learning activities pursuant to DepEd Order No. 50 s. 2009.
through the use of high-tech
communication facilities. Funds for internet connectivity was
already included in the Schools MOOE
We recommended that the
Management in concerned Institute assessment and monitoring Partially
offices: mechanism on the DICP implementation Implemented
to determine actual condition of the
a. DepEd CO –
internet connections in schools and to
 facilitate early release of immediately address problems
funds to implementing offices encountered along the way so as not to
for the efficient hamper students and teachers school
implementation of DICP; activities; and

322
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation

b. Region/DOs – RO I

 institute assessment and DO Ilocos Norte; DO Laoag City; DO Partially

monitoring mechanism on
the DICP implementation to
determine actual condition of
the internet connections in
schools and to immediately
address problems
encountered along the way so
as not to hamper students
and teachers school
activities; and
 remind the School heads/
Principals of IUs to charge
internet subscription fees
from the DICP funds; avoid
charging them from school
MOOE; and strictly adhere
to the guidelines set on each
pursuant to DepEd Order
No. 50 s. 2009.
Batac City; DO-Urdaneta City Implemented
ROP; DO Ilocos Sur; DO-La Union; DO- Fully
Pangasinan II; DO-Alaminos City; DO- Implemented
Dagupan City
DO Vigan; DO-Candon; DO-San Not
Fernando City; DO-Pangasinan I; DO- Implemented
San Carlos City
RO III
City of San Fernando ;DO-Aurora; DO- Fully
Bulacan; DO- City of Malolos; Olongapo Implemented
City
The Division will closely monitor the
implementation of the program.
DO-San Jose Del Monte City Fully
Information Technology Officer Arthur Implemented
Francisco has been directed and has
started to visit schools to monitor and
provide technical assistance on the DICP
implementation.

DO-Nueva Ecija; DO-Gapan City Partially

Require school head to comply strictly to Implemented
the guidelines and organized a team
composed of Division ICT Coor. ,
Accountant & TLE Supervisor to review
& evaluate the efficiency & quality of
service provided by the ISP

DO-Mabalacat City
Issued Division Memorandum No. 57, s. Fully
2016 dated March 4, 2016 informing the Implemented
recipient schools to: Discontinue charging

323
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
internet subscription fees from their
School MOOE funds. Instead, the fees
shall be charged against DICP funds. And
all School Heads/Principals are expected
to fully utilize the monthly allotment of
schools amounting to P4,000 by
subscribing additional lines, if necessary.

DO-Zambales
Beginning CY 2016, MOOE allocation of Fully
each secondary and elementary schools Implemented
are inclusive of DICP Fund.

RO IVA Fully
DO Lipa Implemented

RO V Fully
Implemented

RO X
DO-Ozamis City; DO-El Salvador City; Fully
DO-Gingoog City;DO-Valencia City Implemented
Currently, the unutilized portion of the
budget of each school recipient have
already been downloaded to the schools

RO XI
DO-Davao del Norte: Management Partially
recognized the existing problem and the Implemented
Schools Division Superintendent
assigned the Chief of the Curriculum
Implementation Division and Division
Accountant together with Division ICT
Coordinator to monitor and address a
solution to this existing problem.

DO-Panabo City
The Management together with the Fully
Division ICT Coordinator provide Implemented
help/assistance to the secondary IUs and

324
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Non-IUs and elementary central school in
the facilitation of internet connectivity in
their respective schools. Some of the
school principals started signing contracts
with the Telcos/provider.

RO VIII Fully
DO-Maasin City and 6 IUs Implemented

RO XII
NTC certificates and business permits for Fully
CY 2013 to 2014 were already submitted Implemented
last October 30, 2015. For CY 2015
Allotment: for Compliance The
Management will change provider to
PLDT

CAR
Management had conducted an Fully
assessment of the DICP implementation Implemented
and Secondary schools with funds
allocated for the DICP within the Division
of Kalinga are already connected to the
internet.

RO II
Funds were already downloaded to Fully
recipient schools. Implemented

RO IV-B Fully
DO-Marinduque Implemented

RO V Partially
DO Albay Implemented

DO Iriga City Fully

Implemented

Region VI Partially
DOs- Aklan, Antique Implemented

325
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
RO VIII Partially
DO of Southern Leyte Implemented

RO X
ROP, DOs of Iligan, Gingoog, Fully
Malaybalay , Valencia,Misamis Oriental, Implemented
Ozamiz
Deficiencies in the Implementation of the Payroll System
9. The DepEd Payroll System CAAR Enhance or upgrade the payroll system to Fully
allowing the “Queuing” of loan 2015 consider the provision of Section 48 of the Implemented
deductions or the “First In – First Page General Provisions of FY 2015 GAA and
Served” system in the employees’ 194- the yearly GAA thereafter which provides
payroll slips impaired the 205 the order of priority of authorized
prioritization of deductions deductions from payroll such as the
provided under Section 48 of the preference for contributions and loans due
General Provisions of RA No. to BIR, PhilHealth, GSIS and HDMF to
10651 (FY 2015 GAA) thereby avoid incurrence of penalty and
causing the piling up of surcharges which affect the benefits due
employees’ obligations due to the to teachers/employees upon their
Government Service and retirement/separation from the service,
Insurance System (GSIS), Home and the required minimum monthly net
Development Mutual Fund take home pay of P3,000.00.
(HDMF)/Pag-IBIG and Private
Lending Institutions (PLIs) which Disregard the classification of loan Partially
deprives the employees-borrowers deductions into two column deductions Implemented
of their benefits due upon (left side and right side deductions) in the
retirement since the amount Payroll System and adopt only one
equivalent of the outstanding loan, column area of all mandatory and other
inclusive of interest, penalties and authorized loan deductions in the Payroll
surcharges would be later System in consonance with the provision
collected/deducted from their of the GAA.
benefits.
Strengthen internal control system in the Partially
We recommended that the payroll processes through appropriate Implemented
Management enhance or review and approval by concerned
upgrade the payroll system to officials of SS/ES/IUs/DOs and RO of
consider the provision of Section payroll documents such as Form 7, DTRs,
48 of the General Provisions of Application for Leave; Payroll
FY 2015 GAA and the yearly Disbursement Reports, detailed Payrolls
GAA thereafter which provides and other supporting papers, and their

326

Observations and
Ref.
Recommendations
the order of priority of
authorized deductions from
payroll such as the preference
for contributions and loans due
to BIR, PhilHealth, GSIS and
HDMF to avoid incurrence of
penalty and surcharges which
affect the benefits due to
teachers/employees upon their
retirement/separation from the
service, and the required
minimum monthly net take
home pay of P3,000.00.
Likewise, we recommended that
Management disregard the
classification of loan deductions
into two column deductions (left
side and right side deductions) in
the Payroll System and adopt
only one column area of all
mandatory and other authorized
loan deductions in the Payroll
System in consonance with the
provision of the GAA.
In Regions II, VIII, X, XIII, the
unreliable RPSU database,
inadequate systems controls, and
inefficient processing of payrolls
by the Secondary/Elementary
Schools, Implementing Units
(IUs), DOs and the ROs resulted in
the overpayment in salaries/
allowances/benefits of employees
no longer in service amounting to
P2,631,549.28, over remittances of
employees payroll deductions to
the GSIS amounting to
P5,569,739.48, deleted/unverified
deductions from the monthly
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
timely submission for updating of records
and effecting actual service;
Submit the duly reviewed Monthly Partially
Payroll Worksheet and Report of Service Implemented
(Form 7) in a timely manner so that
retired/separated/ transferred teachers and
employees are deleted immediately from
the payroll;
Cause intensive cleansing of the database, Partially
updating of personnel information on a Implemented
regular basis through reconciliation of
records with that of the DOs/IUs/SS/ES,
comprehensive enhancement of the
payroll system by ascertaining security
features and access rights of users and
facility for review and approval of all
transactions;
Ensure that remittances to the GSIS and Partially
HDMF for premiums and loans Implemented
amortizations and the PLIs shall be
supported with the monthly billing
statements and that the total amount
remitted should correspond to the total
amount billed;
Ensure that the Summary of Partially
Payroll/Disbursement Reports with Implemented
detailed payrolls indicating the
employees’ names and corresponding
deductions be transmitted to the DOs/IUs
with ample time for their review before
transfer of payroll funds be made to the
RO;
Embed in the payroll system adequate Partially
integrity constraints to prevent Implemented
duplication of ID Numbers and retention

327

Observations and
Ref.
Recommendations
salary teachers and employees for
loans amortizations to the GSIS,
HDMF and the PLIs totalling to
P8,542,029.10 and unsupported
monthly remittances to GSIS for
premiums and loan repayments
showing variance of
P282,701,496.73.
We recommended that the
Management undertake the
following courses of action:
a. Regional Director to –
 strengthen internal control
system in the payroll
processes through
appropriate review and
approval by concerned
officials of SS/ES/IUs/DOs
and RO of payroll documents
such as Form 7, DTRs,
Application for Leave;
Payroll Disbursement
Reports, detailed Payrolls
and other supporting papers,
and their timely submission
for updating of records and
effecting actual service;
b. Schools Division Super-
intendents to –
 submit the duly reviewed
Monthly Payroll Worksheet
and Report of Service (Form
7) in a timely manner so that
retired/separated/transferred
teachers and employees are
deleted immediately from the
payroll;
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
of old Personnel Information Profile to
avoid retrieval of erroneous record during
payroll preparation; and
Determine the total amount of Partially
overpayment in salaries and cause refund Implemented
thereof in coordination with the
concerned DOs/IUs and the amount of
overpayment/over-remittance to the
GOCCs and PLIs for the offsetting in
future remittances.
ROI :ROP
To make representation with the CO to Partially
study the payroll system in disregarding Implemented
the right side deduction to comply with
DepEd Order No. 101, s. 2009.
RO IX
In the exit conference conducted with Partially
DepEd RO IX Management, the Chief of Implemented
the Budget and Finance Division
commented that they have to confer and
clarify first from DepEd CO regarding the
matter as the DepEd CO are the ones
identifying those deductions from the
salary payroll for the payment of loans to
PLIs.
RO XI :ROP
The Regional Director directed the Partially
regional payroll unit to do manual Implemented
adjustments, especially for GSIS loan
renewals, in order to temporarily address
the issue until a computer programmer,
who can modify the system, will be
available.
328

Observations and
Ref.
Recommendations
c. RPSU to –
 cause intensive cleansing of
the database, updating of
personnel information on a
regular basis through
reconciliation of records with
that of the DOs/IUs/SS/ES,
comprehensive enhancement
of the payroll system by
ascertaining security features
and access rights of users and
facility for review and
approval of all transactions;
 ensure that remittances to the
GSIS and HDMF for
premiums and loans
amortizations and the PLIs
shall be supported with the
monthly billing statements
and that the total amount
remitted should correspond
to the total amount billed;
 ensure that the Summary of
Payroll/Disbursement
Reports with detailed
payrolls indicating the
employees’ names and
corresponding deductions be
transmitted to the DOs/IUs
with ample time for their
review before transfer of
payroll funds be made to the
RO;
 embed in the payroll system
adequate integrity
constraints to prevent
duplication of ID Numbers
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
RO II :ROP
The Management will make an Partially
arrangement with GSIS on how to collect Implemented
or recover the over remittance. To avoid
or minimize also the incurrence of over
remittance resulting from the inclusion in
the payroll of retired or separated
personnel, the RO will remind all SDO’s
to submit in advance the list of personnel
expected to retire within the next 3
months and the timely submission of
Form 7.
RO VIII :DO Calbayog Fully
Implemented
DO Samar
The Administrative Officer and HRMO Partially
will have to verify the records of those Implemented
retired/separated employees who have
received salaries despite their separation
from the DO.
RO XIII
Issued a Memorandum addressed to the Partially
field directing the recoupment of the Implemented
salaries, benefits, premiums paid of
retired, transferred and/or separated
teachers and directing the field to send
demand letters to the concerned teachers,
requiring them to refund the salaries and
benefits they received which they are no
longer entitled to.
RO X Partially
Implemented
329
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
and retention of old
Personnel Information
Profile to avoid retrieval of
erroneous record during
payroll preparation; and

 determine the total amount of

overpayment in salaries and
cause refund thereof in
coordination with the
concerned DOs/IUs and the
amount of overpayment/over-
remittance to the GOCCs and
PLIs for the offsetting in
future remittances.
FINANCIAL AND COMPLIANCE
Delayed deposit of collections
10. Non-adherence to the laws, CAAR Partially
rules and regulations regarding 2015 Implemented
recording, handling and deposits Page CO
of collections resulted not only to 205- The Management is seeking six months Partially
either unaccounted or unremitted 207 extension for two bank accounts to be Implemented
of the same totaling retained for collections from donor
P28,898,758.45 but likewise partners.
exposed government funds to
misappropriation and losses. RO II Partially
San Agustin NHS Implemented
We recommended that
Management require concerned RO VI :DO-Iloilo
officials to strictly adhere to the Efforts were exerted by other Accounting Not
laws, rules and regulations on staffs to identify the person/s accountable. Implemented
the handling, recording and
utilization of collections,
pursuant to Sections 63 and 69 of
PD No. 1445, Section 21, Volume
I of the NGAS Manual and
Sections 5 and 6 of the General
Provisions of the GAA for FY
2014.

330
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Unauthorized maintenance of Cash in Bank, Local Currency Current Account (LCCA) Account
11. Various collections received CAAR Adhere strictly to the General Provisions Partially
which aggregated to 2015 of the 2015 GAA and deposit with the Implemented
P1,585,876,650.65 as of year-end Page National Treasury all receipts covered
were maintained as trust account in 207- under Section 2 of COA Circular Letter
authorized government depository 212 No. 2004-004 dated October 5, 2004
banks (AGDB) contrary to following the procedures prescribed
pertinent provisions of FY 2015 under COA-DBM-DOF Joint Circular
GAA and other applicable rules (JC) No. 1-97 dated January 2, 1997 and
and regulations on the matter. DepEd-DBM JC No. 2004-01;
Furthermore, lapsed Notice of
Cash Allocations (NCAs) were Require the FMS to determine the actual Partially
transferred to the same trust balances of collections from various Implemented
account in violation of Section 3.1 sources and unutilized lapsed NCAs for
of DBM CL No. 2011-15 dated Centrally Managed Projects (CMPs)/
December 26, 2011. These regular programs which were deposited in
practices limit the utilization of the Local Currency Current Account
scarce government resources and (LCCA) account and remit the same to the
expose them to possible National Treasury; and
misappropriation.
Ensure maximum utilization of issued Partially
We recommended that the monthly NCAs to avoid lapsing and Implemented
Management of concerned refrain from depositing the unutilized
offices: balances to the trust account maintained
with the AGDB.
 adhere strictly to the General
Provisions of the 2015 GAA RO X :DO-Gingoog City Fully
and deposit with the National 1. Stop the practice of transferring NCAs Implemented
Treasury all receipts covered from MDS to local accounts.
under Section 2 of COA 2. Revert to National Treasury all
Circular Letter No. 2004-004 unutilized NCAs for the quarter.
dated October 5, 2004 3. Adhere strictly to the provisions of
following the procedures DepEd-DBM Joint Circular No. 2001-
prescribed under COA-DBM- 001 dated January 1, 2004 & Section
DOF Joint Circular (JC) No. 6.0 of DBM Circcular Letter No. 2013-
1-97 dated January 2, 1997and 12 dated November 21, 2013.
DepEd-DBM JC No. 2004-01;
DO-Gingoog City
 require the FMS to determine Fully
1. Instruct the Accountant & Budget
the actual balances of Implemented
Officer to maximize the use of NCA
collections from various releases.

331
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
sources and unutilized lapsed 2. Remind the claimants of the proper
NCAs for CMPs/regular supporting documents to every claim to
programs which were facilitate fast processing of transactions
deposited in the LCCA /disbursements before the cut-off date.
account and remit the same to
the National Treasury; and RO XII :DO Cotabato Province Partially
Follow up the processing of transfer of Implemented
 ensure maximum utilization of ATM account at the RPSU to close LBP
issued monthly NCAs to avoid accounts.
lapsing and refrain from
depositing the unutilized CAR :DO-Ifugao Fully
balances to the trust account Remitted to the National Treasury the Implemented
maintained with the AGDB. amount of P433,674.67

DO-Benguet and 11 schools Not

The schools used the unutilized DICP Implemented
funds as maintaining balance for their
current accounts

RO II :DO Nueva Vizcaya Fully

Remitted the amount of P3,558,451.29 to Implemented
National Treasury. While the amount of
P1,303,920.30 were paid to suppliers

DO Isabela Partially
Implemented
NCR
Remittance to BTr Partially
OFFICE/DO -DATE AMOUNT Implemented
ROP- 3/1/16 44,590,607.82
QC-2015 2,477,198.35
MUNTINLUPA -2015 1,300,069.68
Pasig- 6/15/16 2,338,920.93
Partially
RO IV-B Implemented
RO V Partially
DO Albay Implemented

332
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Non-preparation/delayed submission of Bank Reconciliation Statement
12. The non-completion/ CAAR Strictly comply with the provisions on Partially
preparation and delayed 2015 record keeping and reconciliation of Implemented
submission of the monthly Bank Page accounts as required under Section 74 of
Reconciliation Statement (BRS) as 212- PD No. 1445 and Section 12, Volume II of
required under Section 74, PD No. 219 the NGAS Manual;
1445 and COA Circular No. 96-
001 resulted to the difficulty of Enroll in an online banking services Partially
ascertaining the accuracy and where bank statement information can Implemented
reliability of the Cash in Bank – readily be obtained at any time and
Local Currency, Current Account facilitate the timely preparation of the
amounting to P1,890,564,945.49 BRS;
and Treasury/ Agency Cash
Accounts of P23,612,312.96 as of Cause the timely preparation of monthly Partially
December 31, 2015. Bank Reconciliation Statements so that Implemented
errors/omissions and/or reconciling items
We recommended that the would be immediately detected for
Management: correction and adjustment in the books of
accounts, thus, ensuring the accuracy and
 strictly comply with the reliability of the Cash in Bank-LCCA
provisions on record keeping Cash account balances in the agency’s
and reconciliation of accounts financial statements.
as required under Section 74 of
PD No. 1445 and Section 12, CO:
Volume II of the NGAS The discrepancy pertains to prior years’ Partially
Manual; transactions which remained unaccounted Implemented
 enroll in an online banking in the absence of documents. Adjustments
services where bank statement were prepared to correct the balance of
information can readily be CO Trust LCCA 0672-1000-20.
obtained at any time and
facilitate the timely RO II
preparation of the BRS; ROP/ DO Cagayan Tuguegarao City Fully
Submitted the December 2015 BRS for Implemented
 cause the timely preparation of Trust Fund
monthly Bank Reconciliation
Statements so that errors/ DO Nueva Vizcaya
omissions and/or reconciling The Accountant commented that they Fully
items would be immediately have already updated its BRS and will Implemented
detected for correction and accordingly reflect the necessary
adjustment in the books of adjustments.

333
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
accounts, thus, ensuring the DOs Batanes and Isabela Partially
accuracy and reliability of the Implemented
Cash in Bank-LCCA Agency RO III
Cash account balances in the Balanga City; Angeles City; San Jose Del Fully
agency’s financial statements. Monte Implemented
Prepared updated monthly bank
reconciliation statements

ROP ;Mabalacat City; DOs of Pampanga Partially

Implemented

City of San Fernando Not

Implemented

Region V Fully
DO-Legaspi City Implemented

Region VII
DO Cebu City; DO-Tagbilaran City Fully
Communicate with the bank as to the late Implemented
delivery of bank statements thereby
delaying also the preparation of bank
reconciliation statements and submit to
COA a written explanation for the delay

Region XII
DO Sultan Kudarat Partially
DO Koronadal City Implemented
Enroll the Account to LBP “we access” so
that bank balance can be check anytime

DO Cotabato
To process enrollment on EMDS. Partially
Implemented
DO Kidapawan City
Submission of BRS Fully
Implemented
Region XII
Fully implemented by Division of Surigao Partially
del Sur and partially implemented by Implemented
Division of Bislig City.
NCR

334
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Management submitted the BRS for CY Partially
2016 for all bank accounts of the Deped- Implemented
NCR ROP, NEAP, EPIP and SHERE

RO IV-A Partially
D.O Batangas Implemented

D.O Lipa Fully

Implemented

RO VI Partially
ROP, DO Aklan Implemented

DO Antique Fully
Implemented
RO VIII :DO Leyte
Absence of records prevented Partially
reconciliation as beginning balances Implemented
cannot be established
Unliquidated Cash Advances
13. The laws, rules and CAAR Demand from all officers and employees Fully
regulations in the granting, 2015 with outstanding balances to liquidate/ Implemented
utilization and liquidation of cash Page settle immediately their cash advances
advances required under Section 219- and/or refund all unexpended balances
89 of PD No. 1445, COA Circular 230 pursuant to COA Circular Nos. 97-002
Nos. 97-002 and 2012-004 dated and 2012-004, otherwise cause the
February 10, 1997 and November suspension of salaries of erring
28, 2012, respectively, as well as accountable officers;
DepEd Order No. 12 s. 2014 dated
March 6, 2014 on downloading of Initiate the undertaking of the legal Fully
MOOE to schools, were not remedies provided for under COA Implemented
strictly observed at the CO and 14 Circular No. 2012-004 and request for the
regions resulting in unliquidated write off of the accountabilities of
cash advances granted to officers deceased AOs; and
and employees and school heads
totaling P2,430,150,739.07 in over All concerned officers and employees Partially
one to more than three years in the strictly comply with Section 89 of PD No. Implemented
financial statements as of 1445 and COA Circular No. 97-002 and
December 31, 2015. 2012-004 on the granting, utilization and
liquidation of cash advances.

335
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that the CO
Management: Unliquidated cash advances as of Partially
December 31, 2015 have been reduced by Implemented
 demand from all officers and P19,514,341.31 or 21.28 percent of which
employees with outstanding cash advances to special disbursing
balances to liquidate/settle officers were reduced by P18,071646.46
immediately their cash or 38.72 percent as of March 31, 2016.
advances and/or refund all Demand letters to all accountable officers
unexpended balances pursuant to officially inform them on their
to COA Circular Nos. 97-002 outstanding balances for a given period
and 2012-004, otherwise cause are being issued quarterly.
the suspension of salaries of
erring accountable officers; NCR
ROP, DOs of Quezon City, Tapat, Partially
 initiate the undertaking of the Muntinlupa Implemented
legal remedies provided for DO Makati Fully
under COA Circular No. 2012- Implemented
004 and request for the write Region I
off of the accountabilities of The percentage of liquidation as of June Partially
deceased AOs; and 30, 2016 is 84.64 percent. Implemented

 henceforth, all concerned Region II Partially

officers and employees strictly
comply with Section 89 of PD
No. 1445 and COA Circular
Nos. 97-002 and 2012-004 on
the granting, utilization and
liquidation of cash advances.
ROP, DOs of Tuguegarao, Nueva Implemented
Vizcaya, Batanes, and Isabela
Catch-up plan were prepared to liquidate
before Quarter CY 2016 ends
Region III
ROP Partially
The percentage of liquidation as of June Implemented
30, 2016 is 92.19 percent.

Region IV-A
DO Batangas
Some school settled said cash advances Partially
and reconciliation was made with Implemented
Accounting records.

DO Cavite Fully
Implemented

336
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region IV-B Partially
DOs-Palawan, and Occidental Mindoro Implemented
Imposition of clear cut policies of
granting cash advances only to those who
have properly liquidated their CAs.
Not
DO-Romblon Implemented

Region XIII Fully

Division of Agusan del Sur; Division of implemented
Surigao del Sur
Prepared necessary adjusting journal
entries
Partially
Surigao del Norte Implemented
Conducted seminar regarding the proper
recording and journalizing of accounting
transactions

RO V Partially
DOs of Albay, Ligao City, Legazpi City, Implemented
Camarines Sur, Iriga City. Masbate City
In Camarines Sur out of unliquidated cash
advances of P429,066,175.36 for CYs
2008-2015, P222,681,806.01 or 52
percent was already settled as of year-end.

RO VI Fully
DO Antique Implemented
Collected the unexpended balances and
return the amount to the National
Treasury.
Partially
DO Iloilo Implemented

RO X Partially
DOs of Iligan, Valencia, Cagayan de Oro, Implemented
Misamis Oriental
Issue Demand Letters
Fully
ROP, DO Gingoog Implemented

337
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
ROXI Partially
COMVAL Division Implemented
Accumulation of unliquidated fund transfers to DBM-PS
14. Deficiencies noted in the CAAR Property Officer to make representation Fully
previous years’ audit for the 2015 with the DBM-PS on the status of the Implemented
account Due from National Page procured items with them; and
Government Agencies-DBM-PS 230-
in DepEd-CO were not yet 235 Property Officer to apply its current Fully
corrected which renders the requirements from the outstanding Implemented
account balance totaling balances with the PS-DBM and/or
P4,897,365,764 as of December demand the refund of prepayments, and
31, 2015 doubtful and unreliable remit the same to the National Treasury.
because of the still unreconciled
Property Officer and the Accountant to Partially
discrepancy of P3,559,427,110
exert efforts to reconcile the advances Implemented
between the PS-DBM book
made to PS-DBM and make necessary
balance of P1,337,938,654 and
adjustments in the DepEd-CO’s book
accumulation of long outstanding
balances;
balance of P4,751,419,521 or 97
percent aging over one to more CO
than ten years. The outstanding For current year transactions, DBM Partially
balance still includes the advance agreed that previous year’s outstanding Implemented
payment for IT packages worth balances be applied to current year
P2,076,399,780 verified delivered requirements to avoid accumulation of
to recipient schools by PS-DBM balances.
but not yet recorded in the DepEd
accounting records.

We recommended that
Management require the:

 Property Officer and the

Accountant to exert efforts to
reconcile the advances made to
PS-DBM and make necessary
adjustments in the DepEd-
CO’s book balances;

 Property Officer to make

representation with the DBM-
PS on the status of the

338
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
procured items with them;
and

 Property Officer to apply its

current requirements from the
outstanding balances with the
PS-DBM and/or demand the
refund of prepayments, and
remit the same to the National
Treasury.
Unliquidated balances of Due from National Government Agencies/Local Government Units/Non-
Governmental Organizations/Private Organizations
15. The continuous practice of CAAR Send demand letters and/or coordinate Partially
DepEd-CO for non-monitoring of 2015 with the project implementers to cause the Implemented
the submission of the Liquidation Page submission of liquidation reports/report
Reports/Report of Disbursements 235- of disbursements on transferred funds for
of the project accomplishments 246 completed programs/projects for proper
and utilization of transferred funds recording;
within the prescribed period as
required under COA Circular No. Prepare the necessary adjusting journal Fully
94-013 dated December 13, 1994 entries on submitted liquidation reports, Implemented
and COA Circular No. 2007-001 verified errors in recording to correct the
dated October 25, 2007, resulted in balance of the affected accounts;
the accumulation of the
Request authority from COA to write-off
unliquidated balances which aged Partially
the dormant accounts following the
over one year to over 10 years of Implemented
guidelines provided under COA Circular
the accounts Due from National
No. 97-001. However, this can be done
Government Agencies/Local
after Management had shown that
Government Units/Non-
exhaustive efforts had been made to
Governmental Organizations/
collect/settle the outstanding accounts;
Private Organizations (NGAs/
and
LGUs/NGOs/POs) with an
aggregate amount of Monitor the liquidation and reporting
P257,513,846.00. Further, requirements of funds transferred to Partially
erroneous accounting treatment for NGAs/LGUs/NGOs/POs/ROs pursuant Implemented
some of the transfers overstated to COA Circular Nos. 94-013 and 2007-
the account Due from Regional 001, and observe compliance on proper
Office (ROs) and the Accumulated releasing of fund allocation to ROs/SBs as
Surplus/(Deficit) by prescribed under GAFMIS Circular Letter
P1,766,949,121.00. No. 2003-004.

339
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that CO
Management: Management commented that
deficiencies in the recording of
 send demand letters and/or transactions were already adjusted in
coordinate with the project February 2016 through Journal Entry
implementers to cause the Vouchers (JEV). Likewise,
submission of liquidation communication was sent to TESDA on
reports/report of disburse- April 26, 2016 requesting submission of
ments on transferred funds for liquidation documents.
completed programs/projects
for proper recording;

 prepare the necessary

adjusting journal entries on
submitted liquidation reports,
verified errors in recording to
correct the balance of the
affected accounts;

 request authority from COA

to write-off the dormant
accounts following the guide-
lines provided under COA
Circular No. 97-001. However,
this can be done after
Management had shown that
exhaustive efforts had been
made to collect/settle the
outstanding accounts; and

 henceforth, monitor the

liquidation and reporting
requirements of funds trans-
ferred to NGAs/LGUs/NGOs/
POs/ROs pursuant to COA
Circular Nos. 94-013 and
2007-001, and observe
compliance on proper
releasing of fund allocation to
ROs/SBs as prescribed under

340
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
GAFMIS Circular Letter No.
2003-004.
Unreconciled reciprocal accounts
16. The reciprocal accounts Due CAAR Conduct a regular periodic quarterly Partially
from/to RO/OU in the CO Books 2015 reconciliation of reciprocal accounts to Implemented
and Due to/from CO in the RO Page immediately correct any discrepancies
Books showed unreconciled 246- noted;
balances totaling 248
P2,502,820,584.25 while Due Draw a JEV to correct the balances of Partially
from/to OUs in the RO Books and accounts affected after reconciliation and Implemented
Due to/from ROs in the OU Books provide their counterparts with copy of
also have unreconciled balances JEVs for proper recognition of the
totaling P1,775,945,596.12, corresponding entries involving intra-
casting doubts on the reliability of agency receivables and payables; and
the account balances in the
financial statements. Coordinate with all Regions/Division/ Partially
School Accountants/Bookkeepers for the Implemented
We recommended that the immediate/quarterly reconciliation of
Management require DepEd reciprocal accounts to present accurate
Accountants to: and reliable balances of accounts.
 conduct a regular periodic
quarterly reconciliation of
reciprocal accounts to
immediately correct any
discrepancies noted;

 draw a JEV to correct the

balances of accounts affected
after reconciliation and provide
their counterparts with copy of
JEVs for proper recognition of
the corresponding entries
involving intra-agency
receivables and payables; and

 coordinate with all Regions/

Division/School Accountants/
Bookkeepers for the
immediate/quarterly recon-

341

Observations and
Recommendations
ciliation of reciprocal accounts
to present accurate and reliable
balances of accounts.
Inventory accounts
17. The validity, accuracy, and CAAR Supply Officer to submit the RPCI
existence of the Inventory 2015 pursuant to Section 65 of the Manual on
Accounts are doubtful due to Page NGAS and coordinate with the
absence of inventory reports and 248- Accounting Section for the reconciliation
records on inventories totaling
P223,478,289.33 reported in eight
regions, existence of dormant
inventory account balances of
P57,855,676.00 in three regions,
unreconciled discrepancies of
P51,377,874.44 between
accounting and property records in
two regions, and direct charging to
expense of inventory purchases of
P5,893,956.89 in three regions.
We recommended that
Management require the:
 Supply Officer to submit the
RPCI pursuant to Section 65 of
the Manual on NGAS and
coordinate with the Accounting
Section for the reconciliation of
the said account and submit the
same to the Audit Team within
the prescribed period;
 Property Officers concerned
to submit regularly the RSMI
which is the basis of the
Accounting Unit in recording
the supplies expenses for the
period. Maintain stock cards
and update them periodically
Status of
Implementation
Ref. Management's Actions and Results of
Auditor’s
Validation
Partially
Implemented
251 of the said account and submit the same to
the Audit Team within the prescribed
period;
Property Officers concerned to submit Partially
regularly the RSMI which is the basis of Implemented
the Accounting Unit in recording the
supplies expenses for the period. Maintain
stock cards and update them periodically
to solve or minimize the perennial
problem of unreconciled Accounting and
Property records;
Accountant/Bookkeeper to record the Partially
purchases of supplies and materials as Implemented
inventories upon acquisition and the
related expense accounts upon issuance of
inventories based on the RSMI in
accordance with Section 43 of the NGAS
Manual and COA Circular No. 2005-002
and draw a JEV to adjust the affected
accounts; and
Direct the Accountant and the Supply Partially
Officer to monitor and reconcile their Implemented
records and make the necessary
adjustments on the discrepancies noted to
reflect the true balances of the Inventory
accounts in the financial statements.
342
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
to solve or minimize the Region II Partially
perennial problem of DO-Isabela and DO-Nueva Vizcaya Implemented
unreconciled Accounting and
Property records; Region V
DO-Iriga Partially
 Accountant/Bookkeeper to No available record for CY 2011 Implemented
record the purchases of inventories and beyond which consist
supplies and materials as most of the amount reflected in the
inventories upon acquisition financial statement.
and the related expense Region VIII
accounts upon issuance of Partially
Management will conduct Physical
inventories based on the RSMI Implemented
Inventory of PPE and Supplies &
in accordance with Section 43 Materials to facilitate reconciliation of
of the NGAS Manual and COA records between Accounting and Supply
Circular No. 2005-002 and Units
draw a JEV to adjust the
affected accounts; and Region XIII
Fully implemented by DO of Bislig City Partially
 direct the Accountant and the and partially implemented by DO of Implemented
Supply Officer to monitor and Surigao del Sur.
reconcile their records and
make the necessary CAR
adjustments on the Management prioritized the conduct and Partially
discrepancies noted to reflect submission of physical count of Implemented
the true balances of the inventories.
Inventory accounts in the
financial statements. Lack of personnel to closely monitor and
implement the recommendation.

RO III
Partially
Fully implemented by DO Angeles City;
Implemented
Zambales; San Jose City and partially
implemented by ROP; DO Mabalacat
City; Cabanatuan City; Balanga City and
not implemented in DO Pampanga; City
of San Fernando

On-going reconciliation between actual

physical count and general ledger amount.

343
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
RO IV-A Fully
DOs of Tanauan, Batangas City Implemented

RO IV-B Fully
DO-Occidental Mindoro Implemented

RO and DOs – Oriental Mindoro, Partially

Calapan City, PPC and Romblon Implemented
Reconciliation and completion of the
required records are still on-going

RO XI Partially
DO Davao City Implemented
On-going Reconciliation and Recurring
Observation.
Fully
DO Davao del Norte Implemented
Textbooks and Instructional Materials Inventory Account
18. The validity, accuracy and CAAR Monitor the submission of duly Partially
existence of the reported balance 2015 acknowledged Delivery Receipts and Implemented
of Textbooks and Instructional Page Invoice Receipt of Property by the
Materials Inventory totaling 251- recipient schools for proper recording in
P14,620,330.77 cannot be 252 the books of accounts in the respective
ascertained due to existence of DepEd offices; and
non-moving/dormant inventory
account, non-maintenance of Direct the Accountants and Supply Partially
accounting and inventory reports Officers to regularly reconcile their Implemented
and non-recording of issuances. records and to maintain an updated and
complete Supplies Ledger Cards and
We recommended that the Stock Cards as prescribed in the NGAS
Management of concerned DOs: Manual to facilitate reconciliation and
adjustment of discrepancies.
 monitor the submission of duly
acknowledged Delivery CO
Receipts and Invoice Receipt The Management of DepEd CO included
of Property by the recipient in its response that the Accounting and
schools for proper recording in Property Divisions will schedule a
the books of accounts in the reconciliation of the textbooks inventory
respectuve DepEd offices; and accounts. Also, the Property Division is
on its implementation of Asset

344
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
 direct the Accountants and Management System (AMS) therefore all
Supply Officers to regularly current transactions are now recorded thru
reconcile their records and to the AMS, while for the prior years, the
maintain an updated and validated transactions from 2009 to 2006
complete Supplies Ledger are being encoded.
Cards and Stock Cards as
prescribed in the NGAS CAR
Manual to facilitate A copy of the lists of books donated and Fully
reconciliation and adjustment given to various schools was provided by Implemented
of discrepancies. the library. Corresponding JEV was
prepared as of Sept 30, 2016 for the
recording of these books.

RO X Fully
DO Gingoog Implemented

DO Iligan
The Agency already started to trace some Partially
of the unaccounted Textbooks and Implemented
Instructional Materials which are
assigned to schools but were not reported
to our accounting office.

A memorandum shall be issued to the

field to remind schools of proper
reporting.

RO XI Fully
DO-Davao del Norte Implemented
Deficiencies affecting the accuracy and existence of PPE accounts
19. The deficiencies in the CAAR Inventory Committee to conduct annual Partially
Management of PPE accounts are 2015 physical inventory of the PPE accounts Implemented
noted as: (a) absence of RPCPPE, Page and to prepare the RPCPPE to be
property cards, PPELC for PPEs 253- submitted to the Accounting Unit for
totaling P37,752,064,404.13; (b) 263 reconciliation with the PPE subsidiary
reporting difference between ledgers and general ledger accounts;
inventory report and the books of
account of P21,086,267,660.56; Property Officer and the Accountant to: Partially
(c) misclassification of accounts in a) update property cards and property/ Implemented
total amount of equipment subsidiary ledgers,
P1,549,625,768.54; and (d) respectively; b) regularly monitor and

345
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
erroneous recording/non- reconcile their records; and c) make the
recording resulting to net necessary adjustments on the
understatement of discrepancies noted;
P109,351,910.67. These rendered
the accuracy and existence of the Accountant to prepare necessary Partially
reported balance of PPE accounts adjusting entries for unrecorded, Implemented
totaling P139,232,586,625.90 in misclassified and erroneous recording of
the DepEd consolidated financial PPE accounts as well as the yearly
statements as of December 31, provision of depreciation to reflect a more
2015 unreliable. reliable reporting of the balance of PPE
accounts in the financial statements; and
We recommended that
Management of concerned Accountant in coordination with the Partially
Offices/Schools strictly require Property Division to be primarily Implemented
the: responsible for the determination of
amounts to be recognized on acquisitions
 Inventory Committee to of assets particularly on acquisitions
conduct annual physical through exchange and non-exchange
inventory of the PPE accounts transactions.
and to prepare the RPCPPE to
be submitted to the Accounting a. Non-conduct of/Incomplete Physical
Unit for reconciliation with the Inventory/Absence of RPCPPE/Property
PPE subsidiary ledgers and Cards/PPELC
general ledger accounts;
Region II
 Property Officer and the ROP, DOs of Partially
Accountant to: a) update TuguegaraoCity, Cagayan, Quirino, Implemented
property cards and property/ Batanes, Cauayan City, Santiago City and
equipment subsidiary ledgers, Isabela
respectively; b) regularly On-going inventory.
monitor and reconcile their
records; and c) make the DO of Ilagan Fully
necessary adjustments on the Implemented
discrepancies noted; Region III
RO Proper; Mabalacat City; City of San Partially
Fernando; Pampanga; Gapan City;DO- Implemented
 Accountant to prepare
Aurora
necessary adjusting entries for
An Inventory Team was already created.
unrecorded, misclassified and
Actual physical count of PPE in the DO
erroneous recording of PPE
was completed
accounts as well as the yearly

346
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
provision of depreciation to Region IV-A
reflect a more reliable DOs of Calamba City;Sta. Rosa City; San Partially
reporting of the balance of PPE Pablo; Tanauan; Rizal;Antipolo Implemented
accounts in the financial The Accountant and the Supply Officer
statements; and adhered with the provisions of the NGAs
Manual in the recording, monitoring and
 Accountant in coordination disposition of inventories.
with the Property Division to be
primarily responsible for the DOs of Batangas; Cavite; Quezon Not
determination of amounts to be Inspection Report of Unserviceable Implemented
recognized on acquisitions of Property was not submitted.
assets particularly on
acquisitions through exchange Region V
and non-exchange transactions. DO-Ligao Fully
Created a committee on the conduct of Implemented
Actual Physical Count of Property, Plant
and Equipment and submitted the said
report to the concerned agencies specially
to the Commission on Audit.

DO-Iriga Partially
Implemented
Region XI
DO-Davao del Norte and IUs; DO- Fully
Panabo City and IUs; Davao del Sur and Implemented
IUs; Digos City and IUs
Reconstruction of inventory of all PPE
accounts and validation of all records due
to retirees and unaccounted equipment
were conducted.

Region XII
DO-Sultan Kudarat
Partially
The office immediately gathered the
Implemented
submitted report on the Physical Count of
Property Plant & Equipment (RPCPPE)
for consolidation.

Implementing units (IUs) were notified

through an official communication.

347
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
DO-Koronadal; DO-South Cotabato; Partially
DO-Cotabato; DO-Tacurong Implemented
Management instructed the Supply
Officer, with the Division Inventory
team, to round up all schools and provide
assistance where necessary, in
accomplishing the inventory report
forms.

DO-Kidapawan Fully
Implemented
NCR
DO-Quezon City Not
Balances still remained unreconciled Implemented

DO-Marikina
All equipment already have Partially
corresponding PPELC except Implemented
unreconciled discrepancy between SL
and GL of School Buildings.,

RO VIII
DO-Biliran Supply office will conduct Partially
physical inventory of PPE and reconcile Implemented
it with accounting unit.

RO X
DO Lanao del Norte, Misamis Partially
Occidental, Iligan City Implemented
Management partially maintained
subsidiary ledgers and property cards

Also, a partial inventory report was

submitted
Not
DO-Oroquieta City
Implemented
b. Reporting difference between Property
and Accounting Records

CO
Several new accounting policies and Partially
procedures on the recognition and Implemented

348
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
measurements of PPE items as prescribed
in the Government Accounting Manual
were observed starting January 2016.

Region II

ROP
Fully
To date, the transfer of School Building
Implemented
was already effected as per Memorandum
dated May 6, 2016 and JEV No.02016-03-
0094 dated March 31, 2016.

DO Batanes
Accounting Section reconstructs ledgers Partially
for PPE and Supplies to reconcile with Implemented
the Supply Records.

DO-Quirino
Started reconciliation process between Partially
Supply and Accounting Office Implemented

Region X
DO Gingoog Partially
On-going verification of Memorandum Implemented
Receipts on file

ROP
Partially
Ongoing adjustments in the books for
Implemented
PPE accounts

Region VIII
DO Leyte Not
Absence of records for reconciliation Implemented

DO Tacloban Partially
Lack of accounting personnel Implemented

CAR Partially
Implemented

349
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
c. Misclassification of accounts

Region V
DO-Masbate City Fully
Adjusting entries were already made to Implemented
transfer the amount on Construction in
Progress to School Building Account with
JEV#533 dated March 31, 2016 in the
amount of P18,195,326.02 and JEV No.
2016-06-001082 dated June 30, 2016 in
the amount of P2,167,496.92.

Region VIII
DO-Tacloban City
Prepared working paper to properly trace
the Construction in Progress account and
Fully
to justify any reclassification or adjusting
Implemented
entries made.

CAR
prepared the necessary adjusting entry Fully
under Journal Entry Voucher No. JEV- Implemented
2016-03-000323 dated March 22, 2016

RO VI Not
Implemented
d. Error in recording/non-recording

RO V
DO Iriga City Not
No reliable records/ documents Implemented

ROXI Fully
Panabo City Implemented

Davao del Norte

Management failed to process all land Partially
titles of schools under the Division Office Implemented
and there was no re-assessment made to
record its latest market value in CY 2016.

350

Observations and
Ref.
Recommendations
Uninsured Government Properties with the General Insurance Fund of the GSIS
20. School buildings and other CAAR
school properties in eight regions 2015
with total book value of Page
P4,383,307,823.39 were not 263-
insured with the General Insurance 266
Fund (GIF) of the GSIS despite the
mandatory requirement to insure
all government properties with the
GIF pursuant to Administrative
Order No. 33 dated August 25,
1987 and COA Circular No. 92-
390 dated November 11, 1992
thus, exposing these properties to
risk of not being indemnified for
any damage or loss due to any
fortuitous events such as fire,
earthquake, typhoon and/or flood.
We recommended that the
Management:
 submit inventory reports of
all insurable properties to
GSIS and ensure that all
insurable assets and
properties are adequately
covered/insured with the GIF
of the GSIS to protect
government properties in the
event of serious loss such as
fire earthquake, typhoon
and/or flood; and
 provide a budget for the
insurance of all their
insurable properties pursuant
to the provisions of RA No.
656 to protect the interest of
the government and to be
Status of
Implementation
Management's Actions and Results of
Auditor’s
Validation
Submit inventory reports of all insurable Partially
properties to GSIS and ensure that all Implemented
insurable assets and properties are
adequately covered/insured with the GIF
of the GSIS to protect government
properties in the event of serious loss such
as fire earthquake, typhoon and/or flood;
and
Provide a budget for the insurance of all Partially
their insurable properties pursuant to the Implemented
provisions of RA No. 656 to protect the
interest of the government and to be
indemnified for any damage or loss that
may arise.
Region II
DO-Tuguegarao, Batanes and Isabela Partially
The Management is in the process of Implemented
collecting documentary requirements
necessary to comply with GSIS property
insurance.
The management cannot include yet the
amount for payment of insurance
premium in the budget proposal because
the Property Management Section is still
in the process of collecting data and
cannot recognized yet the total amount to
be insured.
Region V Not
DOs of Ligao City, Legazpi City, Tabaco Implemented
City:
DO Iriga City Fully
Implemented
351
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
indemnified for any damage Region VIII Not
or loss that may arise. RO, Borongan DO, Samar DO and Samar Implemented
National High School

DO-Tacloban City Partially

Prepare and submitted the updated Implemented
inventory list of all insurable properties to
GSIS for insurance coverage.

DO-Leyte
Elevate the issue to the DepEd for Not
possible inclusion in the succeeding years Implemented
budget the provision for the insurance of
SDO-owned PPEs

Region X
DO-Gingoog City Partially
The DO is still in the process of assessing Implemented
the value of the property to be insured
with the General Insurance Fund of the
GSIS. They have also instructed the
Budget Officer to include the budgetary
requirements of insurance premium in the
regular appropriation of MOOE to be
submitted to the DepEd RO for approval.

On-going processing of insurance

application to GSIS.

Region XI
DO Panabo City, Davao del Norte Partially
The Management inquired the process of Implemented
building insurance to the GSIS Office for
the application of building insurance.

On-going processing of insurance

application to GSIS and pending fund
allocation.

352
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region III
DO Aurora; DO Bataan Not
No action was taken by the Management. Implemented

No funds available for the payment of

premiums

San Jose City; Science City of Muñoz Partially

Requested for application of insurance to Implemented
GSIS

Doubtful validity of Liability Accounts
21. Validity and reliability of the
liability accounts cannot be
ascertained due to recognition of:
(a) undocumented payables in CO,
Regions III, V, VI, IX, XI and XII
amounting to P392,316,707.53;
(b) non-reversion of long out-
standing payables without existing
valid claims of P45,076,153.59 in
CO, Regions II, III, and IV B;
(c) misclassification of liability
accounts in net amount of
P74,816,534.03 in CO and Region
IV-B; and (d) errors in recording/
posting of Accounts Payable
resulting to net balance of liability
accounts in CO amounting to
P961,174.99.
We recommended that
Management:
 recognize liability at the actual
time goods/service/projects are
delivered/rendered/completed
Region IV-A
DO-Laguna Not
School buildings not yet insured as of end Implemented
of CY 2016
CAAR Recognize liability at the actual time Partially
2015 goods/service/projects are delivered/ Implemented
Page rendered/completed and accepted in
266- accordance with the Manual on NGAS
271 and DBM Circular Letter No. 2014-6
dated December 23, 2014;
Revert all outstanding balances without Partially
valid claims and those which are more Implemented
than two years without actual and valid
claimants in accordance with Section 98
of PD No. 1445; and
Perform account analysis and prepare the Partially
necessary adjusting entries to reflect the Implemented
accurate balances of the affected accounts
for fair presentation in the financial
statements.
a. Undocumented liability accounts
Region V
DO Legazpi City:
Management is amenable with the Fully
suggested recommendation and promised Implemented

353
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
and accepted in accordance to comply with the recommendations
with the Manual on NGAS and offered. Furthermore, they will
DBM Circular Letter No. implement controls on coordination
2014-6 dated December 23, between budget and accounting being one
2014; of the causes of deficiencies as pictured
out.
 revert all outstanding balances
without valid claims and those DO-Tabaco City
which are more than two years Management promised to comply with the Fully
without actual and valid laws, rules and regulations on recording Implemented
claimants in accordance with and recognizing payable accounts.
Section 98 of PD No. 1445; and
DO Camarines Norte:
 perform account analysis and Management submitted a Journal Entry Fully
prepare the necessary Voucher (JEV) showing the adjustment Implemented
adjusting entries to reflect the made in the books for the noted erroneous
accurate balances of the entries.
affected accounts for fair
presentation in the financial RO XI Fully
statements. Davao del Norte Implemented

b. Non-reversion of long outstanding

payable accounts without valid claims
CO
The oustanding payable for more than 2 Fully
years were already adjusted to Implemented
Accumulated Surplus/Deficit.

Region II Fully
DO Isabela Implemented

DO Batanes Partially
The Accounting Section confirmed the Implemented
transaction with Phil. Veterans Bank
(PVB). However, the statement that PVB
provided, cannot readily determine the
specific transaction which the
Management is looking for. Moreover, we
asked also the help from DepEd, RO PSU
Section if they can give us any details

354
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
regarding the said transaction but they
reasoned out that the files from their PC
were corrupted.

RO IV-B Fully
DO-Occidental Mindoro Implemented

c. Misclassification of liability accounts

CO
The retention fee amounting to Partially
P173,254.01 was already reclassified. Implemented

RO IV-B Fully
ROP Implemented

d. Errors in recording/posting of
Accounts Payable

CO
The supplier's debit balances amounting Fully
to P8,566,145.14 were already adjusted in Implemented
February 2016 and outstanding payable
for more than two years were already
adjusted to Accumulated Surplus/Deficit.
Unremitted Government Contributions
22. GSIS, Pag-IBIG and CAAR Concerned Offices to regularly and Partially
PhilHealth contribution/premium 2015 timely remit the employer and employees' Implemented
withheld from the salary, step Page monthly premium contribution to avoid
increment/salary differential of 271- incurring any interest or penalties due to
employees in Regions IV-B, VIII, 273 delayed/non-remittances, so that the
IX and X amounting to member-employees will fully enjoy the
P339,953,576.82 were not services offered by the GSIS, Pag-Ibig
remitted on time making the and Philhealth; and
concerned offices/schools liable to
penalties and endangering Official concerned responsible for late Partially
suspension of privileges and payments of GSIS/Pag-IBIG/ PhilHealth Implemented
benefits to be accorded to its premiums be made liable for any penalty
members. charges.

355
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that Region III
Management require the: Division of San Jose Del Monte City Partially
Management has instructed Principal Implemented
 concerned Offices to Eduardo V. Cruz that from here on,
regularly and timely remit the personnel accountable for late payment of
employer and employees’ compulsory premiums to GSIS must be
monthly premium required to pay for the penalty due to late
contribution to avoid remittance. Only in cases where the delay
incurring any interest or is due to fortuitous events where no one
penalties due to delayed/non- can be blamed shall the School shoulder
remittances, so that the such expenses.
member-employees will fully
enjoy the services offered by Region VIII
the GSIS, Pag-Ibig and ROP Fully
Philhealth; and Complied with all lacking supporting Implemented
documents.
 official concerned responsible Fully
Region IV-B
for late payments of Implemented
ROP
GSIS/Pag-IBIG/PhilHealth
premiums be made liable for DO-Oriental Mindoro and Calapan City
Partially
any penalty charges. The ownership of the land is still in the
Implemented
name of the donor and not in the school

DO-Romblon
Not
No budget allocation for the insurance of
Implemented
the properties
Various payments lacking proper documentation or wanting legality of expenditures
23. Various disbursements CAAR Comply with the prescribed guidelines/ Partially
totaling P630,018,209.87 included 2015 pertinent rules and regulations on the Implemented
payments of salary, RATA, Page payment of salaries and wages, other
monetization, traveling/training, 273- compensation, other personnel benefits,
and procurement which were found 286 traveling, training, communication,
either contravening to existing repairs, procurement of goods and
government laws, rules and services and other expenses; and
regulations or not supported with
adequate documentation, thus Require the concerned personnel and Partially
casting doubts on the validity and officials to submit the required pertinent Implemented
propriety of expenditures. documents to establish the propriety,
reasonableness and regularity of the
disbursements.

356
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
We recommended that Region VIII
Management of concerned DO-Borongan; DO-Calbayog; DO-
Offices: Eastern Samar
Required those receiving RATA to submit Fully
 comply with the prescribed the necessary supporting documents and Implemented
guidelines/pertinent rules and adhere to rules and regulations on the
regulations on the payment of grant of RATA.
salaries and wages, other
compensation, other DO-Leyte; DO-Tacloban; Partially
personnel benefits, traveling, Concerned employees are required to pay Implemented
training, communication, the amount disallowed. Some have paid
repairs, procurement of goods in full. Others opted to pay on a monthly
and services and other basis through salary deduction.
expenses; and Fully
DO-Southern Leyte; DO-Northern Samar
Implemented
Submission of the lacking documents.
 require the concerned Disbursement transactions were already
personnel and officials to supported with disbursement vouchers
submit the required pertinent and/or payroll
documents to establish the
propriety, reasonableness and Region XI
regularity of the DO-Panabo
disbursements. Submitted the necessary documents for Fully
the grant of RATA. Implemented

Region I
DO-Ilocos Norte; DO-AlaminosCity; Fully
DO-La Union; DO-Dagupan City; DO- Implemented
Urdaneta City
Compliance to Section 22 of Omnibus
Rules on Leave, Rule XVI of Rules
Implementing Book V of Executive Order
No. 292.

Region II Partially
DO-Isabela Implemented
DO-Borongan
Fully
Management adhered to the
Implemented
recommendation of the Auditor and
proper observance will be applied.

357
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region XI
DO-Panabo
The concerned teachers were notified that Partially
there is an Audit Observation Implemented
Memorandum and followed by Notice of
Disallowance of the Proportional
Vacation Pay (PVP) FY 2014.

COMVAL, ROP Fully

Implemented
Region XIII
Fully
DO-Agusan del Sur; Butuan City
Implemented
DO-Surigao del Sur
Partially
Management will submit ORS and
Implemented
request for augmentation and will
implement “No Allotment No Obligation”
policy.

Non-submission/delayed submission of Financial Reports and documents
24. Several DepEd Offices and CAAR
Schools were reported delayed or 2015
failed to submit financial reports, Page
records and other required 286-
documents which is not in keeping 294
with PD No. 1445, Manual on
NGAS, COA Circular No. 95-006
and other applicable laws, rules
and regulations. Moreover, some
of these offices also failed to
ROP
Partially
To incorporate the compensation paid to
Implemented
employees subject to tax.
Fully
NCR
Implemented
DOs of Quezon City, Malabon,
Valenzuela
Not
DO-Caloocan
Implemented
Strictly comply with the provisions of Partially
COA-DBM Joint Circular No. 2014-1 Implemented
dated July 2, 2014 on the submission of
Financial Accountability Reports within
the prescribed deadlines;
Instruct the respective Accountants in the Fully
region/division/NHS on the timely Implemented
submission of Financial Statements and
other related reports required under COA

358
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
maintain or update their books of Circular No. 2015-002, pursuant to
accounts, financial records and paragraph 21 of PPSAS 1. Include all
registries precluding the timely relevant information in the Notes to
audit of affected agency Financial Statements. The economic
transactions. substance of the accounts as shown in the
Financial Statements should be
We recommended that the completely and appropriately disclosed
Management require the for proper interpretation and to provide
concerned offices/schools to: adequate information.

 strictly comply with the Instruct the responsible accounting Fully

provisions of COA-DBM personnel/disbursing officer/bookkeepers Implemented
Joint Circular No. 2014-1 to immediately submit all due financial
dated July 2, 2014 on the reports and documents to comply with the
submission of Financial provisions of Section 41.
Accountability Reports
within the prescribed If warranted, consider the withholding/ Partially
deadlines; suspension of payment of salaries of Implemented
officials and employees concerned, until
 instruct the respective they shall have complied with the
Accountants in the region/ requirements pursuant to Section 122 (2)
division/NHS on the timely of PD No. 1445.
submission of Financial
Statements and other related Region I
reports required under COA ROP; DO-Ilocos Sur and 9 NHS; DO- Fully
Circular No. 2015-002, Pangasinan II and 5 NHS; Implemented
pursuant to paragraph 21 of
PPSAS 1. Include all relevant Region II
information in the Notes to DOs of Tuguegarao City, Fully
Financial Statements. The Cauayan City and Santiago City Implemented
economic substance of the
accounts as shown in the DOs of Cagayan,
Financial Statements should Batanes, Ilagan and Partially
be completely and Isabela Implemented
appropriately disclosed for Some bookkeepers are still in the process
proper interpretation and to of complying said reports.
provide adequate
information. Region III Fully
DO-San Jose del Monte City-2IUs Implemented

359
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
 instruct the responsible Region V
accounting personnel/ DO-Ligao City; DO-Legazpi City; DO- Fully
disbursing officer/book- Camarines Norte; DO-Catanduanes; DO- Implemented
keepers to immediately Masbate;
submit all due financial Fully
reports and documents to Region VII
DO-Tagbilaran City Implemented
comply with the provisions of
Section 41 of PD No. 1445, Region X Fully
Section 6 of COA Circular DO-Ozamiz City Implemented
Nos. 95-006 and 2009-006;
and Region XII
Partially
ROP; DO-Koronadal; DO-South Cotobato
 if warranted, consider the Implemented
As much as possible forward to Audit
withholding/suspension of Team all reports and supporting
payment of salaries of officials documents before the prescribed period.
and employees concerned, Fully
until they shall have complied DO-Cotobato City
Implemented
with the requirements
Region XIII
pursuant to Section 122 (2) of
Fully implemented by DO of Surigao del Partially
PD No. 1445.
Sur and partially implemented by DO of Implemented
Agusan del Sur.

RO IV-B Fully
DO-Romblon Implemented
DOs-Oriental Mindoro, Palawan and Partially
Occidental Mindoro; IU-PPC Implemented
Submission of reports and documents is
still on-going.

Delay in the submission is due to the

geographical location of the schools.

RO V Fully
DOs of Ligao City, Legazpi City and Implemented
Masbate
Partially
DO-Camarines Norte Implemented
RO X Fully
DOs of Ozamiz and Tangub Implemented

360
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Non-compliance with the provisions of RA No. 9184 and other related issuances on government
procurement
25. The inability of CAAR Partially
Management, as observed in 2015 Implemented
different DepEd Offices and Page Region VIII
schools, to strictly adhere to the 294- DO-Eastern Samar
laws, rules and regulations on 300 Require the BAC to submit copies of Partially
government procurement resulted contracts and purchase orders and all Implemented
to some lapses and violation of supporting documents to the auditors
pertinent regulations on within 5 working days for issuance.
procurement prescribed under RA
No. 9184 and its Revised IRR and DO-Southern Leyte
other related government Submission of the required documents to Fully
regulations on the matter. COA within 5 days from the completion Implemented
of the contract
We recommended that
Management observe faithful DO-Biliran
compliance with applicable rules CPES Implementing Unit was already Fully
and regulations of the revised established to evaluate the performance of Implemented
IRR of RA No. 9184 and other all contractors.
related government issuances on
procurement process. DOs of Leyte, Ormoc and RO Not
No knowledgeable employees on the Implemented
evaluation of contractor’s performance
using the NEDA-approved CPES
guidelines
Fully
DO-Tacloban; Leyte DO Implemented

DO-Northern Samar Partially

Disbursement Vouchers were not Implemented
submitted

Region XIII
The Management submitted the perfected Fully
contracts and bidding documents last Implemented
February 12, 2016.

361
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
RO II
ROP
Pending submission from 2Go Group Inc Partially
and Dalin JD Transport Implemented

DO-Ilagan Fully
Implemented

NCR Fully
DOs of Quezon City, Manila Implemented

RO IV-A
DO-Antipolo Partially
Some IUs are still procuring from private Implemented
businesses, instead of DBM-PS

RO VI
DO-Antique
Not all contracts were furnished to the Partially
Office of the Auditor for review and Implemented
evaluation

DO-Iloilo Fully
Implemented

RO X
DO-Iligan, DO-Cagayan de Oro Fully
Contracts were already submitted implemented

ROP
A similar deficiency in 2016 was noted Not
and documented through an AOM, implemented
consequently suspending the said
transaction in calendar year 2016.

RO XI Fully
COMVAL Implemented

362
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
GENDER AND DEVELOPMENT (GAD)
26. Annual GAD Plans, or the CAAR Identify gender issues and concerns in Partially
corresponding GAD Accomplish- 2015 GAD Plans and allocate at least five Implemented
ment Reports for CY 2015 were Page percent of the total appropriation for the
not prepared by some DepEd ROs, 300- implementation of its GAD Plan pursuant
DOs and Schools for approval of 310 to Section 34 of the General Provisions of
Philippine Commission On RA No. 10651, GAA for FY 2015; and
Women (PCW), while other GAD
programs/projects were not Faithfully adhere to the guidelines on the Partially
allocated of at least five percent of preparation of GAD Plans and Budget and Implemented
their budgets, contrary to Section Accomplishment Reports per PCW-
34 of the GAA for FY 2015, thus NEDA-DBM Joint Circular No. 2012-01.
attainment of GAD objectives to
address gender issues and Region I Fully
concerns was not fully DO-Ilocos Norte; DO-Ilocos Sur Implemented
accomplished.
DO-Laoag City
We recommended that The Management will conduct trainings, Partially
Management: seminars, and other related activities in Implemented
line with the approved GAD plan of the
 identify gender issues and Division. The Management will also
concerns in GAD Plans and make attributions in order to meet the five
allocate at least five percent of percent requirement of GAD.
the total appropriation for the
implementation of its GAD DO-Batac City
Plan pursuant to Section 34 of The Management will formulate a Work Partially
the General Provisions of RA and Financial Plan (WFP) and appropriate Implemented
No. 10651, GAA for FY 2015; the five percent threshold as required by
and GAA.

 faithfully adhere to the Region II Fully

guidelines on the preparation ROP, DOs of Cauayan City and Santiago Implemented
of GAD Plans and Budget and City
Accomplishment Reports per
PCW-NEDA-DBM Joint DO of Tuguegarao City
Circular No. 2012-01. To prepare an Annual Gad Plan to Partially
maximize the utilization of the five Implemented
percent allocation.

363
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Region III Fully
DO-Aurora; DO-Mabalacat City; Implemented

Region IV-A Partially

DOs of Antipolo and Tayabas Implemented
Activities were not all undertaken due to
conflict with other school activities.

Region V
RO Proper; DO-Albay; DO Ligao City; Fully
DO-Legazpi City; DO-Camarines Norte; Implemented
DO-Masbate City

Region XIII
Issued Office Memorandum No. 49, Fully
s.2016 regarding the composition of the Implemented
Regional GAD Focal Point System

CAR Fully
DO of Mt. Province Implemented

ROP; DO-Abra; DO-Apayao;DO-Baguio Not

City; DO-Benguet; DO-Ifugao Implemented

RO IV-B
RO, DOs-Oriental, Occidental Mindoro Partially
& Palawan Implemented
There were minimal gender issues to be
addressed

DO-Puerto Prinsesa City & Romblon Not

GAD allocation is still below the required Implemented
percentage; no existing GAD Plan yet.

Region VI Not
ROP Implemented

Region VIII
DOs of Biliran, Southern Leyte Maasin Fully
NVHS, Maasin City Implemented

364
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
DOs of Samar, Eastern Samar Partially
Implemented

ROX Fully
DO-Tangub, Gingoog Implemented

DO-Iligan Partially
Implemented

DO-Misamis Occidental Not

Implemented

RO XI Not
ROP Implemented

DOs of Panabo,COMVAL, Davao del Partially

SENIOR CITIZENS AND DIFFERENTLY-ABLED PERSONS
27. Failure of various Regional
and DOs to implement programs/
projects and fully integrate in their
regular activities at least one
percent of their budget for plans/
programs/projects that will
address the concerns of senior
citizens and persons with
disability as provided in Section
35 of the GAA for FY 2015 and
Joint DBM and DSWD Circular
No. 2003-01 dated April 28, 2003.
We recommended that the
Management integrate in its
regular activities, the plans,
programs and projects intended
to address the concerns of senior
citizens and differently-abled
persons and utilize at least one
percent of agency budget,
pursuant to Section 35, General
Norte, Davao del Sur Implemented
CAAR Partially
2015 Implemented
Page
310- Region II:ROP
313 For CY 2015, the agency conducted Fully
several activities intended to address the Implemented
concerns of senior citizens and the
differently-abled persons as required
under Section 35 of the GAA, FY 2015 or
RA 10651 such as programs for retiring
officials and employees.
DO-Cagayan and 9 IUs
The DO Proper and the 9 schools under Fully
audit should put up priority lanes and Implemented
ramp for senior citizens and person with
disability in their respective office/
schools and other activities/projects
concerning them.

365
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
Provisions of the FY 2015 GAA Region III
or RA No. 10651. DO-Gapan City
Identified SC & PWD Focal Person and Partially
prepared SC & PWD plans, programs & Implemented
projects

Region VII Fully

DO-Siquijor Implemented

Region X Partially
DO-Gingoog, Camiguin Implemented

Region XII
DO- South Cotabato; DO-Cotobato City Fully
Implemented
CAR
DO-Ifugao
Ramps were provided for persons with Fully
wheel chairs Implemented

ROP; DO-Abra;DO-Baguio-City Not

Implemented
RO-IVA
DO-Batangas Partially
Implemented

COMPLIANCE WITH TAX LAW

28. DepEd Offices substantially CAAR Partially

complied with the revenue 2015 Implemented
regulations on withholding taxes Page
on salaries, benefits, and 313- Region I; Region III; Region IV-A; Fully
procurement of goods and services 316 Region IV-B; Region XII; CAR Implemented
and the subsequent remittance
thereof pursuant to Revenue Region II Partially
Memorandum Circular No. 23- ROP, DOs of Nueva Vizcaya, Implemented
2007 dated March 23, 2007 and Batanes and Santiago City
BIR Tax Revenue Regulation No. Fully
10-2008 dated July 8, 2008. DO-Isabela Implemented
However, as shown in the financial

366
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
statements of DepEd as of Not
December 31, 2015, there were DO-Cauayan City Implemented
still unremitted taxes totaling
P567,426,041.70. Region V Fully
Implemented
We recommended that the
Management of concerned Region XI Fully
Offices/Schools require their Davao del Norte, Davao del Sur,Digos Implemented
respective Accountants to City, Davao City
strictly implement the
imposition of taxes on certain
income payments and on money
payments due or payable to all
suppliers of goods and/or
services being a withholding
agent of the government, and to
ensure that taxes withheld are
remitted on or before the 10th
day of the month following the
month of withholding, except
for taxes withheld for the month
of December, which shall be
filed on or before the 15th day of
the succeeding year, pursuant to
pertinent revenue regulations.
Compliance with RA No. 8291 on Proper Deductions and Remittances of Premiums to GSIS
29. Deficiencies were noted in CAAR Partially
the remittance of GSIS 2015 Implemented
contributions/premiums by some Page
DOs in the regions, which are 317- Region II Fully
detrimental to the interest of the 319 ROP; DO-Cagayan Implemented
members concerned and depriving
them of the benefits and privileges Region XII Fully
accorded to them. ROP Implemented

We recommended that the Region XIII

Management continue The Payroll Service Unit of this Regional Not
complying strictly with the Office has no authority/power to change implemented
provisions of the GSIS Act of the system

367
 Status of
Implementation
Observations and
Ref. Management's Actions and Results of
Recommendations
Auditor’s
Validation
1997 and its IRR, and all GSIS
regulations particularly on the Region XI
withholding and remittance of DO COMVAL, ROP,Panabo City,Davao Partially
members’ contributions, del Norte Implemented
repayments of loans, and the
timely remittance thereof to the Davao City Fully
GSIS to ensure continued Implemented
commitment of the system in
promoting the welfare of
government employees through
an insurance system that will
protect its members against
adverse economic effects
resulting from death, disability
and old age.

368