Beruflich Dokumente
Kultur Dokumente
Section 2.4 of the GAFMIS Circular Letter No. 2002-001 dated December
16, 2002 provides that, at the end of the year, a Journal Entry Voucher (JEV) shall
be prepared to record the entry for the restoration of cash equivalent to the
unreleased checks by debiting the accounts, Cash-National Treasury, MDS and/or
Cash in Bank-Local Currency, Current Account and crediting the appropriate
payable/liability account/s.
COA Circular No. 92-125A dated March 4, 1992 requires the Accountant to
prepare the Bank Reconciliation Statement (BRS) and immediately after the items
were properly analyzed and verified, prepare correcting/adjusting entries for
discrepancies/errors or other reconciling items requiring corrections by the agency.
Section 74 of PD No. 1445 requires the head of the agency to see to it that
reconciliation is made between the balance shown in the monthly reports of
depositories (bank statements) and the balance found in the books of the agency.
Section 12 of the Manual on the NGAS, Volume II provides that the agency
shall maintain Subsidiary Ledger (SL) containing the details or breakdown of the
balances of controlling accounts appearing in the General Ledger (GL) and the
totals of the SL balances shall be reconciled with their respective control account
regularly or at the end of each month.
The accuracy and existence of the balance of the Cash in Bank - LCCA
account is doubtful due to the delayed/non-preparation of BRS and non-
reconciliation/updating of the GL and SLs balances of bank accounts totalling
P403,830,182.17, as shown:
2
3
Bank Balance
as of Dec. 31,
Deficiency/Agency
2011
(Amount in PhP)
Delayed/non-preparation of Bank Reconciliation Statements
NCH 46,788,878.54
CHD for Bicol 18,446,818.02
BRTTH 105,262,740.87
CHD for Western Visayas 6,380,164.33
DJRMH 35,038,982.41
CHD SOCCSKSARGEN 12,518,612.00
Sub-total 224,436,196.17
Non-reconciliation/updating of GL and SL Balances
RITM 112,704,515.45
ARMC 53,774,237.24
FDA 8,528,967.91
SIGH -Cagayan Valley 3,434,098.34
CHD Northern Mindanao 952,167.06
Sub-total 179,393,986.00
Total 403,830,182.17
3. The grant of additional cash advances for foreign and local travels
and other operating expenses despite non-liquidation of the previous cash
advance resulted to the accumulation of unsettled accountabilities in the
aggregate amount of P6,304,372.40 contrary to Section 89 of PD No. 1445 and
COA Circular No. 97-002.
Section 89 of PD No. 1445 and COA Circular No. 97-002, dated February
10, 1997, provide that a cash advance shall be reported on and liquidated as soon
as the legally authorized specific purpose for which it has given has been served
and no additional cash advance shall be given if the former cash advance has not
been settled.
4
5
Audit showed that additional cash advances for foreign and local travels and
other operating expenses were granted to officers and employees despite the non-
liquidation of the previous cash advance, contrary to Section 89 of PD No. 1445
and COA Circular No. 97-002. This resulted in unliquidated balances of
P6,304,372.40, broken down as follows:
Paragraph 4.6 of COA Circular No. 94-013 dated Dec. 13, 1994 provides
that within ten (10) days after the end of each month/end of the agreed period for
6
the Project, the Implementing Agency (IA) shall submit the Report of Checks Issued
(RCI) and the Report of Disbursement (RD) to report the utilization of the funds.
7
Paragraph6.4 of the same Circular provides that the Source Agency (SA)
shall require the IA to submit the reports duly verified by the Accountant and
approved by the Agency Head.
Sections 4.5.5 and 5.4 of COA Circular No. 2007-001 dated October 25,
2007 provide that whenever staggered fund releases/new fund release is made or
within sixty (60) days after the completion of the project, the NGO/PO shall submit
the final Fund Utilization Report certified by its Accountant and approved by its
President/Chairman to the GO, xxx. Xxx and shall be the basis of the GO in
recording the fund utilization in its books of accounts.
8
751,710,034.0 1,254,164,913.3 1,647,102,321.4 2,208,390,293.9 5,861,367,562.7
Total
7 5 4 1 7
The laxity in the monitoring of liquidations of fund transfers to
implementing partners (NGAs, LGUs, GOCCs, and NGOs/POs), which were not in
accordance with COA Circular Nos. 94-013 and 2007-001 dated December 31,
1994 and October 25, 2007, respectively, resulted to the accumulation of above said
inter-agency fund transfers.
The following errors in recording the fund transfers were also observed:
Understated/
Agency Particulars (Overstated)
(Amount in PhP)
Non-recording of liquidated fund transfers (55,571,286.1
DOH-CO
1)
TMC Recording of liquidation without Credit Notice 55,819,281.84
Non-recording of liquidations covered with Credit (22,631,685.4
9
Notices 7)
Setting up of receivable and payables upon obligation (10,500,
of the allotment for transfer to DPWH 000.00)
Non-recording of liquidations/ Fund Utilization (30,543,
Report of four Region I provinces 724.41)
Non-recording of completed projects of the DPWH (4,868,005.
CHD for
Regional Office I 05)
Ilocos
Erroneous recording of funds transferred to DPWH-
RO1 for the construction of a new drug treatment and 15,000,000.00
rehabilitation center.
Non-recording in the books due to non-submission of
CVMC the list of receivables from the Gobyerno Ti Umili (2,288,477.27)
Medical Assistance Program of Cagayan Province.
CHD for Funds recorded as receivables but not yet transferred
2,614,867.85
Caraga to recipient LGUs
(52,969,028.6
Net overstatement
2)
10
necessary, fund transfers be (DOH-CO, DJNRMH, DJFMH CHD
for Caraga, CDH-Central Luzon, RMC, ZMC, CHD-
SOCKSARGEN); and henceforth be judicious in recording the
liquidations of fund transfers (DOH- CO, TMC, CHD for Ilocos,
CVMC and CHD for Caraga).
11
Inaccurate Recording of Receivables and Dormant Receivables
Overstatement Understatement
Accounts
(Amount in PhP)
Accounts Receivables 47,021,823.99
Notes Receivables 13,150,112.37
Other Receivables 1,157,618.64
Inventory 47,625,487.86
Allowance for doubtful Accounts 1,727,080.61
Rent Income 769,549.33
Hospital Fees 863,071.00
Other Business Income 165,138.31
Bad Debts Expense 1,727,080.61
Prior Years Adjustments (PYA) 11,906,308.50
The above lapses were due to non-observance of the following rules and
regulations:
14
Sections 64 and 66, Volume I of the Government Accounting and
Auditing Manual (GAAM) as to the use of subsidiary ledgers for
accounting units with accounts receivable and for the forms used in
billing procedures respectively.
15
Nursing, Linen, Dietary and Dental Sections/Departments with net amount of
P1,418,035,124.38, broken down as follows:
Per Property,
Per
Laboratory, Pharmacy, Difference
Accounting
Radiology, Nursing, Overstatement/
Records
Account Title Agency Linen, Dietary and (Understatemen
(General
Dental Section/ t)
Ledger)
Department Records
(Amount in PhP)
DOH-CO,
DJNRMH, RITM,
JRRMMC, DJFMH,
BRTTH, 1,613,936,935.1
Drugs and Medicines 1,127,886,187.9
PJGMRMC, CVMC, 6 486,050,747.20
Inventory 6
CHD for Metro
Manila, Central
Luzon, Calabarzon &
Caraga
DOH-CO, NCR-
DJNRMH, FDA,
RITM, ARMMC,
JRRMMC, DJFMH,
Medical, Dental and
CLMMRH, BRTTH,
Laboratory Supplies 259,977,757.13 93,490,839.17 166,486,917.96
DPJGMRMC,
Inventory
CVMC, CHD for
Metro Manila,
Central Luzon &
Caraga
DJNRMH, RITM,
JRRMMC, VMC,
MMMHMC,
Merchandise
CLMMRH, 76,158,099.50 75,901,454.10 256,645.40
Inventory
BRTTH,
DPJGMRMC,
CVMC
DJNRMH, FDA,
RITM, ARMMC,
DJFMH, CLMMRH,
BRTTH,
Office Supplies
DPJGMRMC, 59,081,376.22 7,370,358.26 51,711,017.96
Inventory
CVMC, CHD for
Metro Manila,
Ilocos, Central
Luzon & Caraga
DJNRMH, FDA,
Accountable Forms
RITM, CLMMRH & 1,363,199.27 1,071,000.00 292,199.27
Inventory
CHD for Caraga
Food Supplies DJNRMH,
1,648,752.72 636,435.08 1,012,317.64
Inventory JRRMMC, DJFMH
16
FDA, RITM,
JRRMMC, DJFMH,
CLMMRH, BRTTH,
Other Supplies
DPJGMRMC, CHD 76,968,000.23 4,280,707.00 72,687,293.23
Inventory
for Metro Manila,
Central Luzon &
Caraga
Raw Materials
JRRMMC 130,556.51 150,578.63 (20,022.12)
Inventory
Finished Goods
JRRMMC 5,688,588.94 7,966,021.86 (2,277,432.92)
Inventory
2,094,953,265.6 1,418,035,124.3
Total 676,918,141.30
8 8
CHD for Ilocos - the GL showed all debit entries and no credit
entries to record the issuance of inventories since CY 1980 up to the
implementation of NGAS.
17
Measures that would improve the inventory reporting system like
the Inventory Management Assessment Tool (IMAT) was not
implemented despite inclusion of the system in the Warehouse
Operations Manual (DOH-CO).
Lapses in preparing, maintaining and submission of inventory
records and reports such as RCPI and RSMI (FDA, ARMMC,
DJNRMH, DPJGMRMC, JRRMMC, RITM and CHD for Metro
Manila, Central Luzon, Ilocos and Caraga)
CHD for
Inventory ARMMC SLRWH VMC BMC BS Ilocos DJRMH Total
Accounts Region
(Amount in PhP)
Merchandise 4,005,115.26 5,515,463.43 737,099.95 651,115.58 10,908,794.22
Accountable 356,875.00 208,504.76 123,137.50 154,012.80 842,530.06
Forms
Food 256,410.64 612,283.14 120,715.95 989,409.73
Supplies
Drugs and 3,718,788.83 542,896.03 90,159.80 408,494.33 2,271,282.38 7,031,621.37
Medicines
Textbooks & 10,384.00 10,384.00
Instructional
Materials
Other 4,296,056.71 299,986.87 1,078,907.7 1,036,822.2 19,321,955.0 554,495.23 26,588,223.74
Supplies 1 2 0
Office 1,108,939.64 2,159,458.2 38,682,440.43 358,214.83 530,272.48 42,839,325.65
Supplies 7
MDLS 10,827,640.47 16,432,277. 2,246,221.1 5,591,693.70 3,359,807.23 38,457,639.79
26 3
Spare Parts 472,305.46 296,750.00 769,055.46
18
6.3. Non-maintenance of accounting and property records
Subsidiary Leger Cards and Stock Cards for the following inventory items
were also not maintained by the Accounting Unit and Supply Officers, respectively,
to support the GL balances in total amount of P212,234,192.86, broken down as
follows:
CHD for
Inventory FDA RITM JRRMMC VMC Caraga Total
Accounts
(Amount in PhP)
Merchandise 6,491,701.14 18,834,892.22 2,833,301.58 - 28,159,894.94
Office Supplies 935,639.93 2,952,053.52 287,588.83 2,159,458.27 1,265,576.10 7,600,316.65
Drugs and 3,506,106.45 11,536,341.85 90,159.80 42,151,539.08 57,284,147.18
Medicines
Accountable 26,025.00 1,641,295.00 208,504.76 67,360.00 1,943,184.76
Forms
MDLS 21.944,428.81 4,679,274.95 20,449,450.73 16,432,277.26 369,151.95 63,874,583.70
Food Supplies 19,906.79 19,906.79
Spare Parts 2,018.30 2,018.30
Gasoline, Oil and 28,050.00 28,050.00
Lubricants
Other Supplies 196,233.71 1,261,444.57 1,078,907.71 3,953,000.92 6,489,586.91
Various 40,765,183.18
Inventories of
DOH-CO
Total 22,880,068.74 17,851,394.77 59,880,133.74 22,802,609.38 48,054,803.05 212,234,192.86
19
b. Volume I, Manual on the NGAS
20
six months in three copies and shall be certified correct by the
Inventory Committee and approved by the Head of the Agency.
21
We recommended that Management direct the concerned
Directors/Chiefs/Heads to require the:
22
Assessment Tool (IMAT) include in the Warehouse Operations
Manual.
23
Unreliable balances of Property, Plant and Equipment (PPE) accounts
Audit disclosed that the physical count of the property, plant and equipment
have not been conducted/completed in the following offices/hospitals as of year-end
to substantiate the reported balances of the Property, Plant and Equipment accounts
totaling P4,976,364,962.80:
Balance
Agency Reasons for non-conduct of physical count
(Amount in PhP)
CHD for MM 57,147,210.05 Not stated
DJNRMH 45,066,360.33 The Vice-Chairperson of the Inventory Team informed that
they are still in the process of reconciliation of the actual
quantity counted with the property records.
FDA 743,389,621.93 The Property Officer informed that after the expiry of the
Bureau Personnel Order (BPO) No. 2009-136 issued on
June 4, 2009 creating the Inventory Committee which shall
serve for a period of two years in June 2011, no succeeding
Committee was formed to handle the task of conducting
inventory of FDA assets since management overlooked the
expiration of the term of that Committee.
JRRMMC 612,080,618.15 The Inventory Committee has started the physical
inventory-taking in the second quarter of CY 2011 but this
was not completed as of year-end. The Property Officer
informed that one member of the Committee went on
absence without leave while the other members have
priority duties and responsibilities hence the scheduling of
the inventory taking had always been cancelled.
POC 451,025,758.49 The Hospital did not create any Inventory Committee for
CY 2011 to conduct physical count of its recorded PPE
accounts. It was only on January 8, 2012 that an Inventory
Committee was created.
QMMC 591,530,176.42 For CYs 2010 and 2011, the Inventory Committee was not
able to complete the conduct of inventory of the Centers
property due to the lack of manpower because of the
termination of 15 employees of the Hospital in October
2010.
24
RITM 1,086,773,174.54 According to the Property Officer, the Inventory Committee
was created only on October 14, 2011 with the directive to
complete the inventory taking and submission of the
corresponding report thereon not later than December 31,
2011. Interview with the Chairman of the Inventory
Committee revealed that the Committee has not yet
completed the inventory-taking as of this writing.
RMC 697,899,928.04 Not stated
SLH 429,781,266.47 Not stated
SLRSHW 54,415,577.34 The Supply Officer informed that although initial steps
were already undertaken by the Inventory Committee for
the conduct of inventory for the Hospital properties, the
completion thereof could not yet be made since priority is
given to the workload of her office and to the regular
functions of the designated Inventory Committee.
CHD for Ilocos 142,488,271.04 Lack of Personnel in the Supply Unit to conduct
Region physical count. Due to retirement of organic personnel
there were only two contractual employees and two
permanent personnel remained in the Supply Unit.
CHD for 64,767,000.00 Not stated
SOCCKSARGEN
Total 4,976,364,962.80
25
The non-inclusion of accounts
Hospital and Health Center, Other
Structures, Machineries,
LPGHSTC 197,697,125.17 90,453,945.68 107,243,179.49 Firefighting Equipment and
Accessories and Other
Machineries and Equipment in the
RPCPPE as of CY 2011.
The Accounting Office does not
maintain the PPELC.
Unserviceable properties were
not reclassified from their
respective PPE accounts to
Other Asset account. As such,
these unserviceable properties
were still provided with the
monthly depreciation.
The Inventory and Inspection
Reports for Unserviceable
Property (IIRUP) for various
equipment of the Agencys
ITRMC 506,275,664.60 504,072,858.95 2,202,805.65 different offices, which were
submitted to the Supply Office,
were not reported to the
Accounting Office.
Other Assets amounting to
P19,759,835.09 were still
carried in the Agencys books
although these items were
already disposed of thru sale
thus, overstating this account by
the same amount. Disposal of
various unserviceable equipment
were also not recorded in the
books.
CHD for The Property Cards and accounting
154,161,050.10 87,685,341.92 66,475,708.18
Central Luzon Ledger Cards were not updated.
The discrepancy of P676,394.00
for Motor Vehicles account
between the records of property
and accounting balances per books
was due to the non-conversion of
CVMC 3,674,996.08 2,998,601.09 676,394.99
the currency during the time of
acquisition of two vehicles and the
presence of unreconciled balances
in the ledgers due to insufficient
data.
PPELC and accounting subsidiary
records are not maintained to
WVMC 540,746,021.11 407,464,152.31 133,281,868.80
support and verify the balances of
PPE accounts.
Properties costing P1,469,705.64
DJSMMCEH 22,849,796.68 24,319,502.32 -1,469,705.64 which are no longer existing are
still recorded in the books.
26
Total 1,812,242,624.35 1,576,882,295.33 235,360,329.02
27
Moreover, verification of the accounting records and inspection disclosed
that various PPE totaling P57,559,092.67, which were already unserviceable, were
still recorded under the PPE accounts instead of reclassifying them to Other Assets
account, the details of which are given below.
As such, the Property, Plant and Equipment and Other Assets accounts were
overstated and understated, respectively, both by P57,559,092.67 as of year-end.
28
COA Circular No. 2004-08 - The value of obsolete and
unserviceable assets awaiting final disposition as well as those assets still
serviceable but are no longer be used should be reclassified to account
Other Assets.
29
Section 2.2.1 of COA Circular No. 2005-002 dated April 14, 2005
- Small tangible items with estimated useful life of more than one year
shall be recorded as inventories upon acquisition and expense upon
issuance.
Overstatement/
Account (Understatemen
t)
(Amount in PhP)
Inventory ( 2,659,964.20)
33
Records showed that PPE totaling P261,252,306.88 were not insured as
required under Section 5 of Republic Act No. 656 and Section 489 of the GAAM,
Volume I. Details are shown below:
Period of
Agency Amount in PhP Reasons for non-insurance of properties
Acquisition
The Property Officer was not informed
January 2009 to and aware of on the period of Inventory
TMC 39,073,122.90
October 2011 List submitted to the GSIS as basis for
the computation of the insurable amount
of Hospital properties.
The Accountant informed that the
CY 2004 to Property Officer had not yet submitted
BQ 99,861,471.40
2010 the list of insurable PPE as of CY 2011 as
basis of the application of the amount of
insurance coverage.
DJNRM all properties
122,317,712.58 Not stated
H as of CY 2011
Total 261,252,306.88
With the absence of insurance of the hospital assets, the TMC, DJNRMH
and BQ will not be indemnified in case of destruction, damages to, or loss of its
property through fire, flood, theft or other fortuitous events.
34
We recommended that Management direct the Chiefs/Heads/Directors
of the TMC, BQ and DJNRMH to require their Property Officer to facilitate
the submission of the updated list of inventory of insurable properties with the
GSIS so that the necessary insurance coverage for all the assets can be applied
with the GSIS General Insurance Fund; and thereafter, ensure prompt
renewal of the insurance properties for continuity of their coverage.
35
Unreverted dormant/undocumented payables and erroneous recording of payables
Section 3.2 of COA Circular No. 99-004 dated August 17, 1999 provides that
Payable Unliquidated Obligations which have been outstanding for two years or
more and against which no actual claims, administrative or judicial, has been filed
or which is not covered by perfected contracts on record should be reverted to the
Cumulative Results of Operations Unappropriated (CROU), now Government
Equity.
DBM and COA Joint Circular No. 99-6 dated November 13, 1999 prescribes
that all undocumented accounts payable regardless of the year they were incurred
shall immediately be reverted.
Audit showed that payables totaling P876,671,461.20 were not reverted to CROU,
now Government Equity, even if these are undocumented or there are no actual
claims, administrative or judicial contracts on record. Details are shown below:
Intra- Other
Payable Inter-Agency Total
Agency Liability
Agency Accounts Payables Liabilities
Payables Accounts
(Amount in PhP)
5,074,87 34,618, 39,693,
DJFMH 5.99 - - 244.51 120.50
128,279,10 2,986, 131,265,
RMC 7.91 482.63 - - 590.54
494,466,64 54,530, 548,997,
DOH-CO 2.25 398.24 - - 040.49
CHD for Cagayan 540, 540,
Valley - 416.45 - - 416.45
36
30,824,88 20,973, 51,798,
BMC
0.19 - - 778.50 658.69
39,90 108, 36,768, 36,916,
BRTTH
0.03 353.83 - 180.96 434.82
139,62 139,
BS
1.71 - - - 621.71
Western Visayas 743, 49, 792,
(Consolidated) - 309.49 - 588.42 897.91
17,395,25 5,892 23,288,
CRMC
9.80 - ,792.46 - 052.26
CHD for Zamboanga 269,71 269,
Peninsula 7.58 - - - 717.58
4,786,54 22,022, 16,160, 42,969,
CHD for Caraga
6.09 552.57 - 811.59 910.25
681,276,551.5 80,931,513. 108,570,60
Total 5 21 5,892,792.46 3.98 876,671,461.2
0
Guaranty
Accounts Total
Deposits
Agency Deficiency Payable Liabilities
Payable
(Amount in PhP)
Double recording of the 3rd 2,460 2,460
DOH progress billing for the repair ,470.89 - ,470.89
of the National Center for
Pharmaceutical Access
Management Building
Non-recording of payments
through ADA (P2,518,601.70)
MCS - Zamboanga and erroneous recording of 2,518 3,302
783,751.0
Peninsula advance payments on contracts ,601.70 ,352.74
4
and recoupments
(P783,751.04)
PJGMRMC Non- recording of purchases (313, (313,
Central Luzon and services delivered. 659.90) - 659.90)
Failure to set-up a liability
WVMC Western (4,145, (4,145,
account for purchases made
Visayas 161.73) - 161.73)
and services availed of.
520,250.9 783,751.0 1,304,002.0
Total
6 4 0
The non-recording of purchases and services delivered but not yet paid is
contrary to Section 4.s of the Manual on NGAS, Volume I, which states that
37
Liability shall be recognized at the time goods and services are accepted or
rendered and supplier/creditor bills are received.
38
We recommended that Management direct the concerned
Director/Chief/Head to require their Accountants to make the necessary
adjustments in the books and henceforth see to it that payables which have
been outstanding for two years or more and are undocumented are
reverted/adjusted as required; liabilities are recognized when goods and
services have been delivered; and transactions are recorded correctly.
Republic Act (RA) No. 9271 (Quarantine Act of 2004) provides that the
Bureau of Quarantine (BQ) shall be authorized to use at least fifty percent (50%) of
the income generated and the other fifty percent (50%) shall be treated as income
in the General Fund to be remitted to the Bureau of the Treasury.
Executive Order No. 338 dated May 17, 1996 as implemented by COA,
DBM and DOF Joint Circular No. 1-97 dated January 2, 1997 requires the transfer
to the Bureau of the Treasury (BTr) of all existing trust receipts balances that are
deposited with authorized government depository banks.
39
40
Section 44, Book VI of Executive Order No. 292, series of 1987 which states
that unless otherwise specifically provided by law, all income accruing to the
departments, offices and agencies by virtue of the provisions of existing laws,
orders and regulation shall be deposited in the National Treasury or in the duly
authorized depository of the Government and shall accrue to the unappropriated
surplus of the General Fund of the Government.
Unremitted
Agency Nature Amount
(PhP)
50% share of BTr on quarantine income from 124,504,590.3
April 2008 to December 2010 3
Quarantine income representing the cost of
17,559,048.00
yellow fever vaccines
BQ
Interest earned for the 3rd and 4th quarters of CY
268,833.49
2011
142,332,471.8
Sub-total
2
1,233,891.7
EAMC Interest Income from current account deposits.
7
RITM Interest Income from current account deposits. 336,566.49
Collections from bid/performance bonds and
SLRWH 1,396,967.36
affiliation fees
Grants from World Health Organization (WHO)
and United Nations International Children
Emergency Fund (UNICEF) for various special
FDA 4,397,146.83
projects, seminar fees collected from the trainings
conducted by Regulation Divisions I and II and
performance and bidders bonds.
Refunds from hazard pay and longevity pay and
172,303.07
penalties
MMMHMC Ilocos Sale from salvaged materials 102,935.00
Sale from unserviceable property 161,796.00
Sub-total 437,034.07
CHD for Nine bank accounts which have been inactive
2,318,099.34
SOCCKSARGEN since 2006.
152,452,177.6
Total
8
41
Moreover, of the unremitted collections/income of the BQ, the amount of
P124,504,590.33 was utilized without authority, which is in violation of Article 220
of the Revised Penal Code and Section 103 of PD. No. 1445.
42
Article 220 of the Revised Penal Code states that Any public officer who
shall apply any public fund or property under his administration to any public use
other than for which such fund or property were appropriated by law or ordinance
shall suffer the penalty of prison correctional in its minimum period or a fine
ranging from one-half to the total of the sum misapplied, if by reason of such
misapplication, any damages or embarrassment shall have resulted to the public
service. In either case, the offender shall also suffer the penalty of temporary
special disqualification.
Section 103 of PD. No. 1445 provides that expenditures of government funds
or uses of government property in violation of law or regulations shall be a
personal liability of the official or employee found to be directly responsible
therefore.
It is our position that the other fifty percent (50%) shall be treated as income
in the General Fund to be remitted to the BTr as prescribed under Section 58.5 of
the IRR of R.A. 9271. Also, we strongly believe that the authority of the BQ
Director to approve the utilization of the income pertains only to the fifty percent
(50%) share of the Bureau on income generated but does permit him to ignore/set
aside the share of the BTr pegged at 50% of the income which is due for remittance
to the said agency as mandated in the said law and IRR.
Loss of income
44
Rule VIII of the Revised Implementing Rules and Regulations of the
National Health Insurance Act of 1995 and Philippine Health Insurance Corporation
(PHIC) Circular No. 14 dated May 17, 2001 provide that the PHIC may deny or
reduce any benefit when the claims are attended by the following circumstances:
(a) over-utilization and under-utilization of services; (b) unnecessary diagnostic
and therapeutic procedures and intervention; (c) irrational medication and
prescriptions;(d) fraud; (e) gross unjustified deviations from currently accepted
standards of practice and/or treatment protocols; (f) inappropriate referral
practices; (g) use of fake, adulterated, misbranded pharmaceuticals, or
unregistered drugs; and (h) use of drugs other than those recognized in the latest
Philippine National Drug Formulary (PNDF) and those for which exemptions were
granted by the PHIC Board of Directors.
The specific reasons for the disallowed claims were as follows: (a)
incomplete documentation (DJFMH, ITRMC, R1MC and PJGMRMC); (b) past
due for one to three years (VRH); (c) inability of the Billing Section to comply with
PHIC policies of amount not to be outstanding for 60 days to more than one year
(ASTMMC); and (d) filing/re-filing beyond 60 calendar days in addition to lack of
45
complete documentation, no original signature of member on Statement of Account,
appeal not meritorious, exhausted the 45 compensable days/case not compensable,
forms not properly accomplished and case attended by non-accredited doctors
(JRMMC).
46
We recommended that Management direct the Chiefs of Hospitals of the
DJFMH, ITRMC, R1MC, PJGMRMC, VRH, ASTMMC and JRMMC to
require the:
COA Circular No. 85-55A provides the definition and situational cases of
irregular/unnecessary/ excessive expenses, as follows:
47
Irregular expenditures are expenditures incurred without
adhering to established rules, regulations, procedural guidelines,
policies, principles or practices that have gained recognition in law.
Irregular expenditures are incurred without conforming with prescribed
usages and rules of discipline. Xxx. A transaction conducted in a manner
that deviates or departs from, or which does not comply with standards
set is deemed irregular. An anomalous transaction which fails to follow
or violates appropriate rules of procedure, is likewise irregular.
CHD Metro Manila, Longevity Pay and Step Increment instead of 5,220,437.70
Calabarzon, and VMC requiring the concerned personnel to choose
which of the two benefits they will avail,
which the CDH-MM justified as based on the
instruction of the DOH-CO.
CHD Metro Manila, Hazard pay to officials and employees with 10,625,157.04
Ilocos Region and Salary Grades 20 and above at a fixed amount
JRRMMC of P4,989.75 a month instead of 5% of the
basic monthly salary
49
CHD Caraga Travelling Expenses not in consonance with 8,644,304.61
DOH DO No. 2007-082 as amended under DO
No. 2007-0082-A.
CHD Caraga Transportation Allowance in full to officials 210,000.00
despite use of government vehicle
50
DOH-CO Cost of construction of the 4 storey HEMS and 48,552,452.
NCHP Building was increased by 19.42 01
percent from the original contract
Total 110,093,526.82
51
Agency Nature of Payment
CHD-Cagayan Valley The contractor had reported 60%
accomplishment with actual accomplishment
of only 44% and incurred negative slippages
but no warning notice was issued to the
contractor as provided under Article 14 of the
contract agreement.
CHD-Cagayan Valley The provision with the option to own and the
contract duration were not provided in the
contract for the rental of equipment, thus, the
essential elements of contract execution have
not been adhered to the detriment of the
government.
The following were the specific laws, rules and regulations not complied
with:
CNA Incentive for FY 2011 shall xxx xxx not exceed P25,000.00
per qualified employee.
52
An annual amount not exceeding P1,200.00 per employee-
participant may be used for the purchase of costume or uniform, and
other related expenses in the conduct of cultural and athletic
activities.
53
All Public Health Workers covered under RA 7305 are eligible to
receive full subsistence allowance as they render actual duty.
The public health workers shall have the option to choose which
benefits will be paid to him/her, whenever other laws provided for
the same benefits under this act. However, in the event that the
benefits chosen are less than that provided under this Act, the worker
shall be paid only the difference. (Paragraph 4.0, DBM Circular
Letter No. 2004-4 dated February 26, 2004)
Joint Resolution No. 4 dated July 28, 2008 of the Congress of the
Philippines
Section 51, RA No. 10147 and COA Circular No. 99-002 dated
June 15, 1999
54
The transportation allowance herein authorized shall not be granted
to officials who are assigned or presently use government motor
transportation.
55
G.R. No. 112371, October 7, 1998 re: Aida Domingo vs. COA
Section 3 (g) R.A. No. 3019, the Anti-Graft and Corrupt Practices
Act
Opinion No. 163 s. 2000 dated June 33, 2000 of the Office of the
Government Corporate Counsel (OGCC)
56
All money appropriated for functions, activities, projects and
program shall be available solely for the specific purpose for these
are appropriated.
57
The moratorium on the filling of regular/permanent/itemized
positions, either through original appointment, promotion, transfer or
reemployment, and the hiring of new casuals/contractual, including
personnel on consultancy/emergency/contract of service/job order
basis, shall continue to be implemented in all Departments/
Agencies/GOCCs/GFIs of the Executive Branch whose
Rationalization Plan has not yet been approved consistent with
Section 7 and Section 13 of its Implementing Rules and Regulations.
59
f) observe the moratorium order of EO No. 366 on the hiring of
JOs/CSs unless otherwise specific authority for the hiring thereof
was secured from the DBM and see to it that the
requirements/guidelines for Contract of Services are adhered to
(CHD Metro Manila);
Procurements not in accordance with R.A. No. 9184 and its IRR
60
13. The procurement of infrastructure projects, hospitals medical and IT
equipment and goods and services, totaling more than P396,659,415.96, were
not in accordance with the provisions of RA No. 9184, the Government
Procurement Reform Act and its IRR thereby defeating the purposes on
transparency, competitiveness and accountability in the procurement process
and depriving the agency from availing of the most advantageous offers/prices
in their procurement.
Amount in
Agency Deficiency/Effect
PhP
DJRMH, LHMRH, 1. Non-procurement of commonly-use
ZCMC, MRH, CHDs- supplies and materials from the
Socksargen and Procurement Service of the Department
Zamboanga Peninsula. of Budget and Management (DBM) Not indicated
which resulted to higher prices as
compared to those listed in the PS
catalogue. (Sec. 53.5 of RA 9184)
DJNRMH, BGH, 2. Annual Procurement Plan (APP) was
CHDs-Central Luzon, neither updated nor amended nor does it
Cagayan Valley and contain the entire procurement activity
Zamboanga Peninsula that resulted to ineffective and
Not indicated
inefficient procurement process, as
shown below: (Sec. 7 Article II of RA
9184)
61
in the procurement of drugs and
medicines which resulted in the
procurement out of petty cash fund.
62
5. Non-compliance to the form and
contents of bidding documents resulted
to the delayed implementation of the
contract/PO: (Sec. 17 Art. VI of RA
91.84)
The above practices were not in accordance with RA 9184 and its Revised
Implementing Rules and Regulations (IRR) thereby defeating the purposes on
transparency, competitiveness and accountability in the procurement process and
depriving the agency from availing of the most advantageous offers/prices in their
procurement.
64
a) strictly observe the centralized procurement of commonly-used
supplies with the PS-DBM (DJRMH, LHMRH, ZCMC, MRH,
CHDs-Socksargen and Zamboanga Peninsula);
65
f) conduct post-qualification of all bidders and their quoted
prices to arrive at the most responsive bid (DOH-CO);
g) include the cost of all taxes which shall be itemized in the bid
form and reflected in the detailed estimate (QMMC);
66
14. Copies of contracts, POs, DVs, financial reports and delivery
documents were not submitted within the prescribed period contrary to COA
Circular Nos. 2009-001, 2009-002, 95-006, and Sections 22 and 71 and Section
68 of the Manual on the NGAS, Volumes I and II, respectively, and Section 21-
B of Executive Order No. 175.
The following rules and regulations require the submission of the copies of
contracts, POs, DVs, financial reports and delivery documents to the Office of the
Auditor:
Contract/Purchase Order
Section 3.1 - Within five (5) working days from the execution of a
contract by government or any of its subdivisions, agencies or
instrumentalities, including government-owned and controlled
corporations and their subsidiaries, a copy of said contract and each of
all the documents forming part thereof by reference or incorporation
shall be furnished to the Auditor of the agency concerned.
Deliveries
Section 6.9 of COA Circular No. 2009-002 dated May 18, 2009 -
Furnish the Auditor copies of delivery documents within twenty-four
(24) hours after acceptance of deliveries of goods and services,
regardless of whether or not the transaction is subject to pre-audit.
Financial Reports
67
Year-end Pre-Closing TB/Post-Closing TB and other reports on
or before February 14 of the following year to the COA Resident
Auditor.
68
Section 22 - At the close of each business day, the Collecting
Officers shall accomplish the Report on Collections and Deposits
(RCD) in accordance with the instructions provided in Volume II of the
NGAS Manual for RCD. At the close of each business day, the
Collecting Officers shall accomplish the Report on Collections and
Deposits (RCD) in accordance with the instructions provided in Volume
II of the NGAS Manual for RCD.
Records showed that the submission of contracts, POs, financial reports and
other documents as required by the above-cited rules and regulations were not
submitted or rendition thereof was delayed by the following agencies.
Agency Documents
CHD for Bicol, Western Visayas, Davao, WVMC, Contracts/Job
VRH, JBLMRH, MCS, JRRMMC, CHD for Orders/Purchase
Central Luzon and CRH Orders/MOA
BS, BRTTH, CHD for Northern Mindanao, ORs, DVs, Payrolls,
ITRMC, DJRMH, JRRMMC, CHD for Central RCD, RAAF, Report
Luzon and CRH of
Disbursements/Delive
69
ries, BRS,and JEVs
CHD for Central Luzon and CRH Trial Balance and FS
70
The non/delayed submission of the said documents prevented the Audit
Teams from the conduct of timely audit and review to determine compliance with
applicable rules and regulations and in determining the legality and completeness of
information and documentation of the above documents and reports.
15. Of the total P8,214,733.532.57 target disbursement for the DOH loans
and grants, only P5,404,987,241.66 or 66 percent was disbursed with
unutilized funds of P2,809,746,290.91 despite extension of the projects
duration from one to two years. As a result, commitment fees of P7,384,377.65
were incurred in 2011 and grants amounting to P36,032,296.41 and
P19,819,035.07 were returned and not availed of which caused the non-
implementation of most of the planned project and activities.
Analysis and comparison of the Work and Financial Plan (WFP) of the five
loans and three grants against their actual disbursements from CYs 2005 to 2011
showed that the planned or budgeted projects and activities were not fully
accomplished, hence, their respective funds were not fully utilized. The summary
of the financial performance and physical performance of the projects are as
follows:
Physical * Variance/Undisbursed
Accomplishment Time Elapsed Financial accomplishment *** Funds
Project Actual
Title/Funding Target /Cumulative
Revised Amount
Institution Target Actual Rate Disbursement Rate Rate
Duration (in PhP)
(Amount in PhP)
1. 2WHSMP/ 100% 71 92.34 Jan 2005- 809,143,000.00 274,932,000.00 34% 534,211,000.00 66%
WB Dec 2013
2. NSSHRP/ 64 111.82 Mar 2007- 4,786,942,230.00 3,208,054,953.17 67% 1,578,887,276.83 33%
WB 2012
71
3. HSDP/ ADB 79.9 90 12 Jan 559,816,530.00 412,835,820.00 74% 146,980,710.00 26%
2005-30
Sept 2012
4. HSRA-SP/ 25 80** 27 June 600,000,000.00 106,184,027.40 18% 493,815,972.60 82%
KfW 2008-31
Dec 2012
ext 2012
5. HLK/ Apr 2005 1,348,600,000.00 1,348,600,000.00 100% 0 0%
Netherlands to Dec
2011 ext
100 117.58 Sept 2012
Average %/
Total amount 100% 67.98 104.348 8,104,501,760.00 5,350,606,800.57 58% 2,753,894,959.43 42%
Grants
Dec 2007- 88,529,772.57 52,497,476.16 59% 36,032,296.41 41%
1. Global HIV March
- Round 5 100% 88% 41% 2011
2009- 15,480,000.00 1,848,664.93 12% 13,631,335.07 88%
2. SUSEA 100% 31% 12% 2011
2009- Oct 6,222,000.00 34,300.00 1% 6,187,700.00 99%
3. ME3 60% 26% 1% 2012
110,231,772.57 54,380,441.09 49% 55,851,331.48 51%
Total Loans and Grants 8,214,733,532.57 5,404,987,241.66 66% 2,809,746,290.91 34%
*from draft ODA Report of NEDA; Fact Sheet / BIHC
** per audit
***report of DOH to stakeholders/Funders
Below were the causes and effects of the low utilization/disbursement rates
of the loans and grants:
73
Non-utilization of Hospital Equipment, Buildings and Other Facilities
Microfilm camera, DR- 203,000.00 Used for a short while and became
1600 Minolta Planetary unusable due to non-repair of the
desk top 265,000.00
items.
Microfilm Processor,
Maple 3000E . 370,000.00
Printer Minolta RP603Z, 4,128,766.00
desk top type
CAR
CHD Constructed Multi- 1,499,933.04 Absence of an occupancy permit
purpose Building
74
BGHMC The Molecular 4,484,879.73 Equipment did not pass the proficiency
Laboratory and various testing conducted by RITM as required by
laboratory equipment the DOH.
Cagayan Valley
CVMC Treadmill exercise/stress 1,750,000.00 Lack of the needed accessories such as
test machine cardiac monitor, defibrillator machine,
laryngoscope curve and suction machine to
maximize its functionality.
SIGH Ultrasound Scanner Model 1,610,650.00 MOA with a private company for the
0810 496,100.00 operation Ultrasound Scanner thru 50-
Infant Incubator Model 2,106,750.00 50% profit sharing did not push thru; and
Nanjing Brand Absence of physician to operate the said
equipment.
Central Luzon
MMW X-ray machine 2,200,000.00 Absence of a trained personnel to operate
the machine
Bicol Region
BRTTH Various hospital 7,317,513.00 Due to defects, incompatibility and lack
equipment of manpower training for its use
Zamboanga Peninsula
MRH Ultrasound machine and a 1,394,000.00 Lack regular/permanent qualified
ventilator 960,000.00 personnel to operate the equipment..
Total 42,610,460.40
75
and the condition of its existing facilities so as not to put to waste
government resources ;
76
b) undertake necessary measures to make all the machines which
are still functional or can still be repaired operational such as
immediate repair of the machines and assign personnel to handle
this type of lab test; after the machines became operational,
recommend for termination of the contract for conduct of
laboratory test for histopath with private provider; and henceforth,
ensure that the requirements of the machines are taken-cared of to
maintain their functionality (TMC Head of the Laboratory
Department).
77
h) review personnel requirements of the agency and request for
additional plantilla item/s from the DBM, if warranted, and
formulate policies for maximum use of the hospital equipment to
cater to the needs of the patients and recommend same to higher
authorities (MRH).
78
Poor Implementation, Non-monitoring and Non- utilization of allotments of the Potable
Water System Program
Moreover, the initial allotment for the CHD Caraga Region, in the amount
of P20,000,000.00, for the implementation of the PWSP to identified recipients
(LGUs, Municipalities of La Paz and Sibagat, both in the Province of Agusan del
Sur, at P10,000,000.00 each pursuant to DO No. 2011-0091), was not released and
utilized due to the failure of the CHD to compel the LGUs to submit the pre-release
requirements such as letter-request for the release of funds and proof of separate
bank account intended for the projects. Furthermore, P21,200,000.00 of the
additional allotted amount of P22,500,000.00 for to the Region for identified
priority waterless recipient LGUs (Municipality of Prosperidad for
79
P10,000,000.00, Province of Surigao del Sur, San Miguel Community District
Hospital for P2,500,000.00 and Municipality of Tubod for P10,000,000.00), were
received only in December 2011. These in effect delayed the attainment of the
objectives of the program and deprived the intended beneficiaries the prompt
availment of the benefits from the program.
b) the Director of the CHD for Caraga Region to set the period
for the submission/compliance with documentary requirements both
for the pre-and post-releases of funds for LGUs; intensify the
follow-ups with the LGUs concerned for the submissions of the
documentary requirements; and provide technical assistance, if
necessary, to facilitate the release of project funds.
18. An average shortfall of 17.21 and 8.5 percent from the targets of 70
percent Case Detection Rate (CDR) and 85 percent Cure Rate (CR) for the
Routine EPI and TBCP, defeated the objectives of the program to detect new
sputum smear-positive TB cases and cure new sputum smear-positive TB cases
80
discovered, respectively. Also, the hiring of only 734 nurses with
corresponding disbursement of P12,236,012.79 out of the 950 targeted health
professionals for the RNheals Program with allocated funds totaling
P21,960,000.00, resulted to the non-achievement of the program designed for
the unemployed registered health professionals, particularly the nurses and
midwives for their learning and deployment.
81
In CY 2011, the DOH-CO sub-allotted to the CHD for Calabarzon the
amount of P36,100,000.00 for the MR-SIA, in addition to the continuing
appropriation (CONAP) for CY 2010 of P750,000.00. The amount of P912,300.00
from the current years appropriation of the CHD was allotted for the Routine EPI,
which was not utilized.
On the Routine EPI, the utilization of the EPI Vaccines was low vis--vis the
targets of 2.7 percent and 3.5 percent of the total population of infant below one
year and pregnant women. Only 69.84 percent of the total eligible population of
infants below one year old were fully immunized and 37.15 percent of the total
eligible population of pregnant women was immunized with Tetanus Toxoid 2.
The following problems were cited at the LGU level which contributed to
the low performance of the CHD on the EPI:
82
a) failure to monitor the drop-outs (people who begin the vaccination
schedule but did not complete it);
83
c) failure to conduct outreach activities and other programs were
prioritized.
Clearly, the CDR of the CHD had a continuous increase from CYs 2006 to
2010, but these still fell below the national target of 70 percent by an average of
17.21 percent. CR also fell below the national target of 85 percent by an average of
8.5 percent.
The following factors, among others, have also contributed to the low
performance of the Region:
b) CHD did not prepare a WFP for the Continuing Appropriation for
CY 2010 amounting to P949,653.00;
d) delay in the submission of reports from the RHUs and PHOs and
erroneous reports;
85
Further, out of the P21,960,000.00 budget of the RNheals Program covering
the period from October to December 2011 only P12,236,012.79 or 55.72 percent
for the hiring of 734 out of the 950 registered nurses was utilized for the first
tranche. Details are shown below;
ensure that all logistics for immunization are available all the
time and are functioning properly;
86
intensify supportive supervision to build the capacity to carry
out safe, good quality immunization services in the barangay by
providing on-site training and assistance;
87
P1,102,800.00; inefficient and unsafe operations of the Dietetic Services for
patients undergoing treatment; and rehabilitation was not achieved.
88
Contract Cost % of Total Payment
Phase
(Amount in PhP) Completion (Amount in PhP)
Phase I 13, 471,851.56 100%
-Variation Order 489,720.00 100% 13,961,571.56
Phase II 5,976,676.37 54.31% 3,245,834.54
Total 19,938,247.93 17,207,406.10
The Hospital Engineer informed that the Phase II project could not be
completed since the electrical installation at the TRC Compound is not compatible
with the voltage/electrical requirement of the equipment at the TRC compound.
Despite the delay in the implementation of the Phase II project, the RMC
management did not make any demand to compel the contractor to finish the
project as per agreement and to impose penalty from the contractor for the
unconscionable delay in the completion of the project, if not abandonment of the
project.
This resulted in the delayed transfer of the Dietary Services from RMC to
TRC. Foods, except for the rice which are prepared at the RMC, are transported to
TRC in Bicutan, Taguig City. It was a daily routine for the TRC staff members to
assist in transporting foods from RMC to TRC and in the distribution and serving of
the foods of the patients since September 8, 2008. The RMC has to transport foods
to TRC three times a day on a regular basis. Had the Dietary Building been
completed and used, the RMC could have save about six to nine hours a day/per
staff in man-hours and approximately P1,102,800.00 for expenses in rentals of
motor vehicles in transporting cooked foods and paraphernalia from RMC-Pasig
City to DOH-TRC in Bicutan, Taguig City for CY 2011 alone. The delay in the
transfer of the Dietary Services from RMC to TRC was the result of the delay in the
completion of the Dietary Building which was started in the later part of CY 2008.
a) The approved plantilla position for CY 2011 has only one item for
Supervising Administrative Officer and none for Financial Management
Officer; and
89
b) No Nursing Service Organogram was created although it was
included as one of the three major services departments;
90
Further, the status of additional plantilla positions disclosed that it is still
pending with the DBM. Considering the present physical status/condition of the
hospital and the acquisition of new modern medical equipment and the construction
of new hospital buildings, there should have been additional positions for its
expansion to go hand-in-hand with the new facilities.
91
ascertain that the equipment needed for tertiary level and
Hospitals affiliation be given priority in the procurement.
92
B. OTHERS
Sections Provisions
3.2 (e) The GAD Focal Point shall advocate for, coordinate, guide and
monitor the development and implementation of the agencys
GAD plan and GAD-related programs, activities and projects.
5.1 Agencies shall submit their annual GAD plans and budgets to
the NCRFW for review and endorsement prior to the
submission of the agency budget proposal.
94
5.2 The agency GAD Focal Point shall prepare the annual GAD
accomplishment report in coordination with the agency budget
officers following the format prescribed in Annex B to be
approved by the agency head.
It was observed that the DOH-CO did not designate any GAD Focal Point
Officer to catalyze and facilitate the institutionalization of gender mainstreaming
and womens empowerment since 2009, hence, no report was submitted on GAD.
Budget Expenses/
Utilization vs
Agency Amount % to Appropriations
(In PhP) Appropriations (Amount in PhP/
Percentage)
1. GAD Budget 5% of Appropriation but Low Utilization Rate and/or No Report
25,088,976.40
NCMH 27,870,950.00 5%
90%
1,373,812.08
MMMHMC 1,488,800.00 5%
92%
CHD-Central Luzon 7,746,350.00 5% no report
DPJGMRMC-Talavera
165,150.00 5% Not mentioned
Ext.
19,338,853.00
CHD-Ilocos 26,909,120.23 5%
72%
5% 303,137.00
ITRMC 512,000.00
59%
5% 186,670.00
RIMC 186,670.00
100%
5% 1,373,812.08
MMMHMC 1,488,800.00
92%
95
2. GAD Budget less than 5% of Total Appropriations and/or Low Utilization Rate
and/or No Report
ARMMC 1,621,600.00 0.01% 367,890.00 / 23%
42,098.50
FDA 2,200,000.00 1.91%
2%
NCH 315,000.00 0.2% not mentioned
QMMC 5,133,872.00 2.67% not mentioned
530,168.75
BQ 1,370,000.00 4.73%
39%
1,285,341.32 /
SLRWH 16,311,000.00 2.80%
8%
1,617,892.46
VMC 1,617,892.46 2.41%
100%
CHD-Bicol 5,204,500.00 .60% no report
2,475,411.00
POC 6,429,600.00 1.79%
39%
TMC 663,000.00 0.09% 123,600.00 / 19%
RMC 2,146,650.00 1.07% no report
3. Annual Plans/Programs not Prepared
EAMC
not mentioned
PJGMRMC
4. Annual Plans not Within the Purpose and Objective of the GAD
RMC 2,146,650.00 1.07% no mentioned
DJFMH not mentioned
NCH 315,000.00 0.2% not mentioned
CHD-Calabarzon 900,000.00 not mentioned
5. Non-submission of GAD Plan and Accomplishment Report to NCRFW
JRRMMC 2,175,000.00 not mentioned undetermined
RITM 3,365,650.00 1.99% not mentioned
SLH not mentioned 26,271,650.00
SLRWH 456,200.00 2.80%
FNLGH not mentioned
The afore-cited observations were not in consonance with Joint Circular No.
2004-1 dated April 05, 2004 of the DBM, NEDA and the NCRFW.
Further, with the less than five percent of budget and expenses for GAD
activities and projects, not much benefit are expected/derived.
96
b) direct the concerned Directors/Chief/Heads to require their
GAD Focal Point Persons to -
97
include only those programs, activities and projects that
directly address gender issues and concerns that are well defined
to avoid duplication or overlapping with the regular activities
(RMC, DJFMH, NCH and CHD-Calabarzon);
21. Only two of the 85 agencies (66 hospitals, 16 CHDs and two bureaus
under the supervision of the DOH, including the DOH-CO), provided a budget
for the senior citizens and differently-abled persons as required under Section
32 of the General Provisions of Republic Act No. 10147, the GAA for FY 2011.
98
a budget for the senior citizens and differently-abled persons as required by the
above-cited law as follows:
99
Budget
Agency
Amount % to
in PhP Appropriations
CHD for Metro Manila P1,048,205.00 0.7%
Although the FDA provided funds therefore, it was not however, utilized due
to lack of program, projects and activities identified related to the program. At the
CHD for Metro Manila, it integrated in its regular agency activities the program and
projects intended to address the concern senior citizens and differently-abled
persons.
100
Compliance with Tax Laws
22. The Accountants of four hospitals failed to withhold taxes and remit
the amount totaling P8,517,215.12 and P4,457,954.56, respectively, in violation
of DOF-DBM-COA Joint Circular No. 1-2000 dated January 3, 2000, Sec.3 of
BIR-Revenue Regulation (RR) No.10-2008 and BIR Revenue Memorandum
Circular (RMC) No. 23-2007.
BIR Tax Revenue Regulation No. 10-2008 dated July 8, 2008 and Revenue
Memorandum Circular No. 23-2007 dated March 23, 2007 require the Accountants
to withhold taxes for compensation and Expanded Value Added Tax, respectively.
Taxable Taxes
Agency Income Not Withheld Unremitted Remarks
(Amount in PhP)
Taxes were not withheld
CDH
7,998.07 7,998.07 7,998.07 from KAELCO & Smart
Communications
Taxes withheld from
suppliers for the period
398,694.0
FNLGHTC none 398,694.00 August to December
0
2010
101
The DOH-CO, two DOH attached bureaus, five CHDs and 20 hospitals
included in their reports the compliance with the BIR Tax Revenue Regulation No.
10-2008 dated July 8, 2008 for compensation and Revenue Memorandum Circular
No. 23-2007 dated March 23, 2007 for Withholding Tax and Expanded Value
Added Tax as follows:
2011 Unremitted
Balance as of Balance as of
Agencies Withheld Remitted December 2011
January 2011
(Amount in PhP)
Metro Manila
DOH-CO 4,247,878.40 231,232,547.75 231,738,647.90 3,741,778.25
ARMMC 4,863,726.60 43,071,136.01 36,110,809.87 11,824,053.61
FDA 2,155,371,35 19,471,621.35 19,091,506.44 2,535,486.26
BQ 1,203,605.00 8,062,954.76 8,003,856.27 1,262,703.49
EAMC 10,622,911.99 64,258,162.13 71,448,895.42 3,432,178.70
DJFMH 2,237,199.55 53,482,475.93 49,673,676.27 6,045,999.21
DJNRMH 113,864.31 15,886,708.41 15,852,528.52 148,044.20
JRRMMC 2,774,510.69 48,403,711.18 46,342,375.46 4,835,846.41
LPGH&STC 1,276,213.07 13,619,920.08 11,740,709.80 3,155,423.35
NCH 0.00 20,440,901.42 18,972,954.28 1,467,947.14
NCMH 0.00 40,751,570.73 40,094,323.74 657,246.99
SLH 1,323,208.91 38,780,436.85 38,414,368.81 1,689,276.95
SLRHW 78,110.16 4,020,261.90 x4,047,111.86 51,260.20
POC 3,298,358.99 41,704,833.57 41,074,846.74 3,928,345.82
QMMC 4,345,144.88 38,091,590.17 37,044,846.46 5,391,888.59
RITM 520,576.94 28,990,645.36 29,151,318.17 359,904.13
RMC 3,934,306.73 34,124,682.49 32,317,780.01 5,741,209.21
TMC 2,685,556.57 17,133,025.83 18,165,468.15 1,653,114.25
VMC 362,789.05 11,817,982.69 11,924,472.98 256,298.76
CHD MM 1,749,418.48 13,569,662.24 12,133,965.59 3,185,115.13
Ilocos Region
CHD 0.00 18,107,648.26 14,647,398.21 3,460,250.05
R1MC 0.00 25,331,891.49 25,331,891.49 0.00
Cagayan Valley
BGH 0.00 219,918.04 0.00 219,918.04
Calabarzon
CHD 0.00 17,770,267.86 0.00 17,770,267.86
Bicol Region
BS 0.00 2,732,761.46 2,679,118.37 53,643.09
Caraga Region
CHD 0.00 17,088,605.63 15,843,067.47 1,245,538.16
CRH 0.00 16,432,025.44 16,432,025.44 0.00
SOCCKSARGEN
CHD 0.00 18,467,035.91 18,467,035.91 0.00
Total 47,792,751.67 903,064,984.94 866,745.998.73 84,112,736.98
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The following hospitals and CHDs also reported compliance with tax laws
and regulations but did not give details on the amount withheld and remitted: (i)
CHD for Ilocos Region, ITRMC and R1MC; (ii) CHDs for Cagayan Valley; (iii)
CHD for Central Luzon; (iv) BRTTH and CHD for Bicol Region; (v) CHD for
Northern Mindanao; (vi) NMMC; (vii) MHARSRTTH; (viii) APMC; and (ix)
CRMC.
Audit Suspensions
Agency (Amount in PhP)
DOH-CO 46,470,561.87
ARMMC 87,615,334.79
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EAMC 15,693,043.43
BQ 1,922,400.00
CHD for Metro Manila 12,682,327.30
BGH 594,249.43
CHD for Caraga 23,120,916.26
Grand Total 188,098,833.08
Balance as of December
Agency 31, 2011
(Amount in PhP)
DOH-CO P22,288,780.04
CHD for MM 2,085,722.32
ARMMC 344,064.09
BQ 1,246,312.75
DJFMH 2,879,285.21
DJNRMH 1,435,435.67
EAMC 13,133,575.05
FDA 1,781,481.15
JRRMMC 13,604,006.83
LPGH & STC 736,374.92
NCH 3,276,015.24
NCMH 6,629,836.77
POC 2,074,148.87
QMMC 1,820,087.02
RITM 1,613,560.43
RMC 5,034,743.28
SLH 1,115,597.06
SLRWH 255,361.38
TMC 485,529.78
VMC 553,737.12
Total P82,393,654.98
The appeals filed by the concerned agencies from the audit disallowances
were denied by the Director of National Government Sector, Cluster C (NGS-C),
105
COA, due to lack of merit. Accordingly, as stated in the decisions, it was ordered
that all excess payments of hazard pay to all personnel be refunded by the recipients
thereof. Similarly, the Director denied the appeals from the disallowances on the
payment of consultancy fees of a private lawyer hired by various Hospitals.
Amount
Agency (PhP) Office to issue the NFD
Metro Manila
QMMC not mentioned NGS-C Cluster Director
RITM 25,830.00 not mentioned
VMC 245,251.24 Adjudication and Settlements Board
Amount
Agency
(PhP)
VMC 1,136,193.60
DJNRMH 5,436,526.07
RITM 689,727.96
CHD for CAR 28,967.13
BGHMC 1,511,523.50
CDH 175,929.72
FNLGHTC 45,763.41
LHMRH 59,487.70
BGHMC and MC 1,511,523.50
CHD for Calabarzon 7,683,563.98
CHD for Bicol Region 5,072,797.74
BRTTH 20,601.47
Bicol Sanitarium 61,611.05
CHD for Caraga 14,051,234.46
ASTMMC 229,154.40
Grand Total 37,714,605.69
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