Professional Documents
Culture Documents
A. Introduction
The Department of Trade and Industry (DTI) had its beginning as early as 1898.
Several changes in name, functions, and organization occurred until it was reorganized by
virtue of Executive Order No. 133 dated February 27, 1987 where it is mandated to be the
primary, coordinative, promotive, facilitative and regulatory arm of the government for
trade, industry and investment activities.
In the Philippine Development Plan (PDP) CYs 2011-2016, the DTI shall
endeavor to improve the business environment, increase productivity and efficiency, and
enhance consumer welfare. By CY 2016, the following goals would have been achieved:
The DTI structure, pursuant to Department Order No. 11-47 dated September 29,
2011, was streamlined into six major functional groups composed of the different bureaus
and offices that deliver business and consumer services to its stakeholders and the public,
namely, (1) Office of the Secretary, (2) Management Services Group (MSG),
(3) Consumer Protection Group (CPG), (4) Industry Promotion Group, (5) Industry
Development Group (IDG), and (6) Regional Operations Group (ROG).
With the approval of the Rationalization of the Department, the former Regional
Office-National Capital Region was integrated in DTI Central Office as one of its offices
called National Capital Region Office (NCRO).
Effective December 31, 2014, the Governance Commission for GOCCs (GCG)
approved the abolition of the Cottage Industry Technology Center (CITC). Its corporate
personality was absorbed by DTI including its functions, assets, liabilities and existing
obligations pursuant to Memorandum Order No. 2014-23 dated August 22, 2014. CITC
now becomes part of the NCRO.
Of the approved plantilla positions of 2,353 under the DTI Rationalization Plan
and the Staffing Pattern for DTI-Central Office (CO) and 15 Regional Offices (ROs),
1,982 were filled up, leaving unfilled positions of 371. In addition, DTI had 134
incumbent/co-terminus officials and 83 contractual personnel, thus a total of 2,199 warm
bodies.
The DTI also maintains 27 Foreign Trade Service Corps in Europe, Middle East,
North America, and Asia and the Pacific, headed by a Commercial Attachè, whose goal
is to promote Philippine trade and investment worldwide.
B. Financial Highlights
The agency’s financial position, performance and sources and application of funds
for the year ended December 31, 2016, compared with that of the previous year are, as
follows:
Amount
Particulars
2016 2015
Financial Position
Assets P 3,725,569,632.28 P 3,465,684,897.77
Liabilities 588,188,396.73 616,706,605.44
Net Assets/Equity 3,137,381,235.55 2,848,978,292.33
Financial Performance
Revenue P 374,538,672.66 P 370,722,778.35
Current Operating Expenses 3,291,094,664.63 2,521,838,325.05
Net Financial Assistance/Subsidy 4,061,774,991.76 3,501,104,442.28
Surplus for the period P 1,147,658,009.17 P 1,349,943,903.55
Sources and Application of Funds
Appropriation P 3,676,880,000.00 P 4,133,239,000.00
Allotments 5,355,045,090.71 4,816,743,751.50
Obligations Incurred 4,694,024,185.66 4,313,701,369.54
Unobligated Balances P 661,020,905.05 P 503,042,381.96
The audit covered the CY 2016 transactions, accounts and operations of the DTI.
The audit was conducted to (a) ascertain the level of assurance that may be placed on
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management’s assertions on the financial statements; (b) determine the propriety of
transactions as well as the extent of compliance with applicable laws, rules and
regulations; (c) recommend agency improvement opportunities; and (d) determine the
extent of implementation of prior years’ audit recommendations.
The Financial Statements (FS) are the combined FS of the DTI-CO and 15 DTI-
ROs. Part II of this report, however, does not include the observations and
recommendations pertaining to DTI-RO Nos. IV-A and VII due to non-submission of
Management Letters (MLs) by concerned Audit Team Leaders (ATLs).
1. The DTI exceeded the targets for Licensing and Registration under MFO 5 - Business
and Trade Regulation Services in terms of quantity, quality and timeliness of
approved business names, despite some negative comments/feedbacks from some of
its clients. Moreover, there were deficiencies and inadequacies in the eBNRS which
rendered the physical report of accomplishment unreliable. (Observation No. 1)
2. The National Consumer Affairs Council (NCAC) posted low utilization of allocated
funds at 48 percent or P2.40 million out of P5 million funds in CY 2016. The
physical accomplishment was likewise low since most PPAs were unimplemented
and could not be evaluated against the set targets in the absence of Performance
Indicators (PI) not stated in measurable terms as to quantity and quality.
(Observation No. 2)
We recommended and Management agreed to direct the OIC of CPAB to instruct the
focal person of NCAC, through the CPAB to – (a) maximize fund utilization in
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accordance with the WFP to provide services to more beneficiaries; (b) prepare Work
Plan and Target or its equivalent for any given year using Performance Indicators
expressed in quantifiable terms as to quantity, quality and timeliness for each
programmed P/A/P as a basis in the preparation of the Accomplishment Report to
facilitate evaluation of performance against targets; (c) henceforth, ensure close
monitoring of all approved programs/projects/activities of NCAC for any given year
in order to guarantee their substantial accomplishment within the approved budget
and timelines set for the benefit of the intended users and the general public; and
(d) make representation with Congress and DBM to integrate future funds intended
for the programs and projects pertaining to NCAC in the appropriation of CPAB, to
ensure that the intended benefits envisioned by the government for its consuming
public, through the NCAC, will be maximized.
3. The Cash in Bank-LCCA balances of DTI-CO and its twelve Regional Offices
amounting to P131.921 million were unauthorized and unnecessary but were not
reverted to the National Treasury. (Observation No. 3)
5. The balances of the receivable accounts of DTI ROs amounting to P4.652 million as
of December 31, 2016 have been dormant for ten years and more but not yet
requested for write-off. (Observation No. 5)
6. The DTI management could not strictly enforce the timely submission of financial
reports on the use of GCash ePayment facility for DTI business name registration for
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CY 2016 due to the absence of an approved MOA/contract covering the said
agreement. (Observation No. 6)