Annex B

ACTION PLAN MONITORING TOOL

Sector: National Government Sector Prepared by: Janet L. Pito Date: January 17, 2018
Team: Audit Team No. R11-04 Reviewed by: Jocelyn Y. Abad Date:
Agency Audited: Bureau of Local Governement Finance - Regional Office No. XI Approved by: Jocelyn Y. Abad Date:
Audit Period: January 1 to December 31, 2016
AAR Date:

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION RESULTS of COA Validation

Agency Action Plan Status of Reason for Partial/Delay / Action Taken/ Date of Status of Actual Implementation Remarks
Audit Observations Audit Recommendations Target Implementation Implementation Non-Implementation, if Action to be Taken Follow-up Implementation Date
applicable
Ref Action Plan Person/Dept. From Date To From To
Responsible

AOM No. Payments of the Collective We recommended that management: Strict Moonyeen B. 25-May-17 30-May-17 Fully Implemented Two (2) Lacking Letter-explanation Fully June 2017 Dec. 2017
BLGF RO XI Negotiation Agreement (CNA) compliance with Arenos, LAOO IV documents, i.e. copies of dated May 30, 2017 Implemented
2017-01(16) Incentive for FY 2016 totaling a. Secure from the BLGF Central Office the following applicable laws, compliance on the to COA; submission
dated May P300,000.00 were not in supporting documents: rules and Concepcion V. submission of of supporting
15, 2017 accordance with the guidelines regulations Tanudtanud AO III Accomplishment Report documents
issued by the Department of i. Copy of the CNA executed between the (Cashier II) and document relative to
Budget and Management (DBM) agency and the recognized employee organization which the accomplishment of
and lacked the necessary includes a provision on cost-cutting measures to be Tolentino J. Jumat, targets
supporting documents, thereby undertaken collectively by the agency and its personnel; AO I (Records
creating doubt on the legality of Officer) Designated
the disbursement, contrary to ii. Copy of the written resolution on the payment of the Budget Officer
Sections 1.3, 1.4, 4.1, 4.3 and 4.4 CNA incentive signed by agency representatives from
of the Department of Budget and both labor and management, and approved by the Wilson M. Reyes,
Management Budget Circular agency head; AA III (Senior
No. 2016-7 dated December 1, Bookkeeper)
2016 and Item 6, 'Section 4 of iii. Copy of the document/s re: (1) amount of CNA
the Presidential Decree No. incentive determined by the DBM; (2) approval of the
1445. DBM on the use of available MOOE allotments for the
payment of CNA Incentive; (3) compliance on the
submission of accountability reports;

iv. Certification/copy of the document relative to the

accomplishment of targets; and

v. Written Order/Directive from the BLGF Central

Office to BLGF R.O. XI on the release of the CNA
incentive;

as well as the written authority of the BLGF R.O. Xl

Local Assessment Operations Officer IV to approve the
payment of the CNA Incentive (2nd release) to BLGF
RO Xl personnel per DV No. 2016-12-459 dated
December 28, 2016;

and to forward/submit the said requirements to the

Office of the Auditor immediately in order to justify the
legality of the payment of the CAN Incentive;
 AOM No. Management failed to submit the
BLGF RO XI revised CY 2015 financial
2017-02(16) statements pursuant to Philippine
dated May Public Sector Accounting
19, 2017 Standards (PPSASs) which
resulted to the agency's inability
to submit the required
comparative financial
information (for CY 2015 and
CY 2016), thus created doubts on
the reliability and accuracy of
their financial statements,
contrary to Section 6.1.a.1 of the
COA Circular No. 2015-002
dated March 9, 2015 and
management assertions on
accuracy.
We recommended that management: Strict Wilson M. Reyes, 25-May-17 30-May-17 Partially Ongoing compliance with Letter Explantion Nov. 2017 On-Going
compliance with AA III (Senior Implemented PPSAS dated May 30, 2017 Verification
a. Seek the assistance of the BLGF Central Office applicable laws, Bookkeeper to COA
Accountant on the proper implementation of the rules and
PPSASs in the regional level. Considering that the regulations
designated bookkeeper is not even an accounting
graduate, management or the Central Office Accounting
Head could have made an effort to ascertain that support
was given to him to ascertain compliance with the
accounting standards adopted by the government and the
proper presentation and accuracy of their financial
reports;
b. Ascertain the immediate submission of the CY 2015
financial statements pursuant to PPSASs and to make
the necessary revisions in the CY 2016. financial reports
to comply with the required formats and proper
application of PPSASs; and

c. Consider the hiring of an Accountant or even an

Accountancy graduate to ascertain that the person
handling the books of the agency has the necessary
skills to deliver the required financial reports.

AOM No. Payments of wages to Job Order We recommended that management: Strict Gloria B. Trinidad, 25-May-17 30-May-17 30-May-17 Letter Explantion Fully June 2017 Dec. 2017
BLGF RO XI (JO) personnel for services compliance with AO V (Retired) dated May 30, 2017 Implemented
2017-03(16) rendered in CY 2016 totaling a. Submit the following: applicable laws, to COA;
dated May 11133,430.34 were not supported rules and Wilson M. Reyes, Submission of
19, 2017 with accomplishment reports, i. Accomplishment reports to support the disbursement regulations AA III (Senior lacking documents
thus the necessity of hiring them of P133,430.34; and Bookkeeper)
could not be properly ascertained
and that the actual performance ii. Written explanation on the failure of management to
of tasks were not attested, comply with the requirements.
contrary to Section 4(6) of
Presidential Decree No. 1445 b. Ascertain that the accomplishment report of every JO
and Item 1.2.1 of COA Circular for the 15-day period is attached to its corresponding
No. 2012-001 dated June 14, disbursement voucher.
2012.

AOM No. Liquidation of the cash advances We recommended that management: Strict Wilson M. Reyes, 25-May-17 30-May-17 Letter Explantion Partially Recuring Issue;
BLGF RO XI for travel granted to BLGF R.O. compliance with AA III (Senior dated May 30, 2017 Implemented Delayed
2017-04(16) XI officers and employees for a. Implement monitoring measures to ascertain that all applicable laws, Bookkeeper) to COA; Liquidation of
dated May the calendar year 2016 totaling cash advances are liquidated within the prescribed rules and Submission of Cash Advance
19, 2017 P21,120.00 were made beyond period. We suggest that the accountant/bookkeeper regulations lacking documents
30 days from date of return to submit to the Regional Director a monthly report on the
workstation, ranging from 67 to status of cash advances granted;
90 days delayed, contrary to
Section 25(b), Chapter 6 of the b. Direct all officers and employees to comply with the
Government Accounting Manual requirement/s on the liquidation of cash advances.
(GAM), thus reflective of
management's lack of measures
to ascertain compliance with
laws.
 AOM No. Management failed to ascertain We recommended that henceforth, all agency personnel Strict Tolentino J. Jumat, 25-May-17 30-May-17 Fully Implemented Letter Explantion Fully June 2017 Dec. 2017
BLGF RO XI compliance with the procedures concerned ascertain compliance with the procedures for compliance with AO I (Records dated May 30, 2017 Implemented
2017-05(16) for government disbursements government disbursements by properly filling out the applicable laws, Officer) Designated to COA;
dated May totaling P8,432,313.91, thereby prescribed government forms and providing all the rules and Budget Officer Submission of
19, 2017 defeating the purpose of necessary data and information on all DVs, ORSs and regulations lacking documents
establishing effective controls, related supporting documents. Wilson M. Reyes,
contrary to Chapter 6 of the AA III (Senior
Government Accounting Manual Bookkeeper)
(GAM) for National Government
Agencies (NGAs) [Volume 1],
Section 4(6 - 7) of Presidential
Decree No. 1445 and Section 2
and Rule IV Section 1 of
Republic Act No. 6713.

AOM No. Management failed to submit a We recommended that management: Strict Gloria B. Trinidad, 25-May-17 30-May-17 Partially Lacking PCW Endorsed Letter Explantion Partially
BLGF RO XI copy of the PCW-endorsed compliance with AO V (Retired) Implemented GAD Plan and Budget for dated May 30, 2017 Implemented
2017-06(16) Gender and Development (GAD) Ascertain compliance with Section V of COA Circular applicable laws, GAD Focal Person CY 2016 to COA;
dated May Plan and Budget for CY 2016 No. 2014-001 regarding submission of the PCW rules and Submission of
23, 2017 and the corresponding GAD endorsed GAD Plan and Budget and the corresponding regulations Wilson M. Reyes, lacking documents
Accomplishment Report, thus GAD Accomplishment Report using the required AA III (Senior except PCW –
GAD activities conducted by the templates per PCW-NEDA DBM Joint Circular 2012- Bookkeeper) Endorsed GAD Plan
agency costing P70,530.00 01; and Ensure completeness of the documentary and Budget for CY
cannot be ascertained if they requirements for liquidation and transparency on the 2016
were in accordance with the transactions of the agency. We suggest that photos be
approved GAD Plan and Budget, submitted also to prove the conduct of the activities of
contrary to Section V of COA the agency.
Circular No. 2014-001 dated
March 18, 2014, Section 35 of
the General Provisions of the
General Appropriations Act
(GAA) for FY 2016 and Section
4(6) of Presidential Decree No.
1445.
 AOM No. Proficiency and diligence in the We reiterated and strongly recommended that Strict Gloria B. Trinidad, 25-May-17 August 22, Fully Implemented Letter Explantion Fully June 2017
BLGF RO XI preparation of financial management: compliance with AO V (Retired) 2017 dated May 30, 2017 Implemented
2017-07(16) statements and performance of applicable laws, GAD Focal Person to COA;
dated May tasks by the agency bookkeeper a. Give priority to the matter by informing the rules and The Office is in the
25, 2017 were lacking, thus resulted to Central Office about the situation and request for regulations Wilson M. Reyes, process of
misleading information and assistance from the Central Office Accountant or his/her AA III (Senior reconstructing the
unreliability of the financial representative to reconstruct the financial statements of Bookkeeper) financial statements;
statements, contrary to Sections BLGF R.O. XI that will provide accurate and reliable and Mr. Wilson
ill and 112, Chapter 2 and information, pursuant to PPSASs, as well as resolve the Wilson M. Reyes, Reyes was relieved
Section 121, Chapter 3, Title III issue about the negative balance that exists relative to AA III (Senior from his regular
of Presidential Decree No. 1445. PPE/IT Equipment. The foregoing observations should Bookkeeper) duties and functiona
have been noticed also by the Central Office Accountant as Senior
and/or his/her staff considering that consolidation of Andrea H. Besinan, Bookkeeper
financial reports is performed by them; LAOO III/ Acting effective June 1,
Property Officer 2017 Mr. Tolentino
b. Relative to the handling of the books of the Office J. Jumat AO I
and re-evaluate his credentials and assign tasks that he is (Records Officer)
capable of performing; and was relievec as
Acting Budget
c. Hire immediately an Accountant or Accountancy Officer and
graduate and provide him/her the necessary designated as Acting
trainings/orientation to be able to handle the books of Bookkeeper
BLGF R.O. Xl. If such cannot be done immediately, we Meanwhile Ms.
suggest that re-evaluation of the credentials of the Lydia R. Padilla
existing regional office personnel be done and identify LTOO II is
those who have accounting education, and designate one designated Acting
to take over the accounting/bookkeeping functions. Budget Officer. A
follow up from
central office was
made on the status
of the filling up of
vacant positions of
this office and
requested for the
speedy process to
address the multi-
tasking of the

Prepared by: Approved By:

JANET L. PITO JOCELYN Y. ABAD

State Auditor III Date State Auditor IV Date
Audit Team Leader OIC-Regional Supervising Auditor

Note: Status of Implementation may either be (a) Fully Implemented, (b) Ongoing, (c ) Not Implemented, (d) Partially Implemented, or (e) Delayed