STATUS OF ACTIONS TAKEN ON COA AUDIT

OBSERVATIONS/RECOMMENDATIONS
AS OF JUNE 30, 2019

Results of the interview with the concerned Program focal persons and review of the related documents
relative to the Actions Taken by DOLE RO 8’s Management to address the COA’s audit observations and/or
recommendations for CY 2018 audit report showed that out of 12 audit observations four (4) were fully
addressed leaving nine observations partially or not yet addressed, as follows:

CY Total Full Partial

2018 8 3 5
2017 3 1 2
2015 1 1
Total 12 4 8
Percentage 100% 33% 67%
Minimum 30%

FULLY ADDRESSED COA OBSERVATIONS:

2018  Submission of Monthly Reports of Fuel Consumption and Official Travels and
Driver’s Trip Tickets were not serially numbered and not completely filled-out
 Control on Accountable forms not observed
 Transportation Allowances were granted to DOLE RO 8 officials who have been
issued, assigned or use a government motor transportation
2017  Delayed submission of CY 2017 accounts

The audit observations categorized as follows:

1
Financial - (3)
Observations Status Starts
CY 2018
1. The account Due to NGAs and Due to GOCCs with P Action Taken:
balances of ₱829,294.69 and ₱495,462.97,  The Accountant committed to make the
respectively, remained unadjusted thus, affecting necessary adjustment for those
the fair presentation of the Financial Statements identified accounts by September 2019
for Calendar Year 2018.
Recommendation:
 Immediately adjust those that are
already identified.

CY 2017 Action Taken:

1. Bank Reconciliation Statements (BRS) were not
prepared and submitted on time, whereas,
reconciling items remained not recognized in the
books contrary to Section 74 of PD No. 1445 and
relevant provisions of Chapter 21 of the
Government Accounting Manual (GAM) for
National Government Agencies (NGAs) Volume 1,
thus, the reported balance of Cash in Bank –
LCCA (CIB – LCCA) could not be ascertained as to
correctness and accuracy.
P  Latest submission of BRS, April 2019.
Note: The Accountant has no ample time to
prepare and submit the BRS on time. Thus,
she needs assistance in its preparation.
Recommendation:
 Consider to augment the manpower of
the Accounting Unit especially during
the preparation of BRS.

2. Appreciation cash gifts totaling ₱80,000.00 P Actions Taken:

granted to honor the invaluable services of  Settled as of date P63,621.60, balance =
retiring officials and employees of the DOLE were P16,378.40 – accountable person
without legal basis, thus, tolerance over invalid already retired.
expenses was shown.
Recommendation:


Financial and Programs/Project (4):

2
Observations Status
CY 2018
1. DOLE Integrated Livelihood and Emergency
Employment Program (DILEEP) disbursement
vouchers (DVs) totaling ₱12,437,274.21 were not
supported with beneficiaries’ Certifications of
Non-Coverage to 4Ps while a total fund assistance
of ₱542,915.00 were granted to unqualified
beneficiaries contrary to Section 10 of Department
Order No. 173-17.
Remarks
P Actions taken
NI  For the ineligibility of JO employees
and brgy. Kagawads, RO Mgt. will
instruct FO Heads and Focal persons to
strictly enforce the evaluation of
projects in accordance with DO 173-17.
Recommendations:

2. The full liquidation of the ₱6,822,026.46 account
balance of the Due from Non-Government
Organizations/People’s Organizations (NGOs/POs)
is doubtful because 72 percent or ₱2,857,846.06
of which remained dormant for over five to 20
years, and due to the deficient documentation and
poor monitoring of reports from NGOs/POs and
laxity in the enforcement of the provisions of
Department Order (DO) No. 26 series of 1995 and
Sections 5.3 and 5.4 of COA Circular No. 2007-001
dated October 25, 2007.
P  P2.857 M dormant accounts for 5-20
years Balance: P3.965
Actions taken:
 As of Jun: P3.474,941.58 were
already liquidated or 50% of the
P6.822 M
 RO Issued Office Order No. 125-05-
2019 creating a “Livelihood Projects
Monitoring Team.”
Auditor’s recommendation:
 Conduct of Periodic monitoring; and
 Sending of Demand Letters

Recommendation:
 Role of the officers and employees
composing the RPMT should be
identified; their outputs specific and
measurable.

3. Deficiencies noted on the grant, liquidation and P Action taken:

monitoring of funds transferred to Local  As of June 2019, P27,670,755.90
Government Units (LGUs) for the implementation was liquidated
of DOLE Integrated Livelihood and Emergency  Creation of PMT
Employment Program (DILEEP) were
contradictory to COA Circular 94-013 and other Cause:
relevant rules, thus, concluded to have caused  Laxity on the enforcement of the
the accumulation of unliquidated or unsettled provisions of the MOA relative to the
balances and attainment of the program’s submission of liquidations report
objectives could not be adequately measured  Close monitoring on the
implementation of the project was not
3
Observations
CY 2015:
1. Fund transfers to NGAs, LGUs, NGOs/POs in the
aggregate amount of ₱151,127,763.04 for the
implementation of livelihood projects and other
DOLE Programs remained unliquidated for 1 year
to over five years due to inadequate monitoring
of project implementation and laxity in the
enforcement of the provisions of COA Circular
No. 94-013 and MOAs between the DOLE and the
LGUs, NGAs, NGOs/POs resulting in the difficulty
of ascertaining the proper utilization of funds and
doubtful validity of the reported balances of such
receivables.
Projects / Programs (1)
Observations
CY 2018
1. Defective Job Search Kiosks (JSK) were not
repaired while functional ones contain outdated
information due to low maintenance and non-
updating of the system thus, making it less useful
to job seekers.
Status Remarks
adequately carried out.
Recommendation:
 Role of PMT, per member should be
identified; their outputs specific and
measurable.
p Remarks: This is a Continuing effect on the
accumulation of Fund Transfers to LGUs and
NGOs/POs.
Actions taken:
 Liquidations – P121,855,388 = 80.6%
 Creation of Project Monitoring Team
Recommendation:
 Role of the members of the created
Monitoring Team must be specified.
Their OUTPUTS must be specific and
measurable.
Status Remarks
Actions Taken
P  Already communicated with BLE relative
to the status of the JSK;
 Will conduct another round of inventory,
for update:
Recommendation:
 FOs to submit to TSSD the latest status
of JSK in their jurisdiction;
 TSSD focal person to coordinate with
BLE relative to the update and
maintenance of the JSK units