Idea Transcript
EXECUTIVE SUMMARY
INTRODUCTION The Surigao del Sur State University attained its “University” status by virtue of Republic Act No. 9998, which was approved on February 22, 2010. Prior to this, it was known as Surigao del Sur Polytechnic State College (SSPSC) created under Republic Act No. 8628, that provided for the conversion of SSPSC into SDSSU comprising of the following schools: 1. 2. 3. 4. 5. 6.
SSPSC – Tandag Main Campus, Tandag, Surigao del Sur SSPSC – Cantilan Campus, Cantilan, Surigao del Sur SSPSC – Lianga Campus, Lianga, Surigao del Sur SSPSC – Tagbina Campus, Tagbina, Surigao del Sur SSPSC – San Miguel Campus, San Miguel, Surigao del Sur SSPSC - Cagwait Campus, Cagwait, Surigao del Sur
On December 11, 2000, Surigao del Sur Institute of Technology, Cantilan was formally integrated to SSPSC making the said school as the 5th satellite pursuant to BOT Resolution No. 34 series of 2000. In year 2000, another milestone was attained with the approval of the Board of Trustees Resolution No. 05, series 2000, allowing the offering of five (5) Engineering courses at SSPSC Main Campus, namely: Civil, Mechanical, Agricultural, Computer and Electronics and Communication Engineering. In 2005, SSPSC Tandag and SSPSC Cantilan successfully passed the accreditation on its preliminary visit conducted by the Accrediting Agency of Chartered Colleges and Universities of the Philippines (AACCUP).
Philosophy SDSSU believes that higher education is an instrument for the improvement of life through democratized access to quality education and in the development of a well rounded personality.
Vision It envisions itself as a Center of Progressive Leadership in Higher Education For Quality Life and Sustainable Development.
Mission Its mission is to provide opportunities for higher education in the fields of industrial technology, teacher education, agriculture, agri-business and commercial sciences, forestry, aqua – marine technology, environmental science, arts sciences,
engineering and technology, technological education, and advanced studies to support research, extension services and income-generating activities. It also aims to provide effective technical-vocational instruction and training in industries required for immediate entry into occupations consistent with the manpower requirements of the region.
SCOPE OF AUDIT Financial and compliance and value for money audit were conducted on the accounts and operations of the Surigao del Sur State University, Tandag, Surigao del Sur, for Calendar Year 2011. The objective of the audit was to ascertain the fairness and reliability of the university’s financial position and the results of its operation. It also aimed to determine whether applicable laws, rules and regulations were strictly adhered to in the utilization of public funds. AUDITOR’S REPORT We rendered a qualified opinion on the fairness of the presentation of the financial statements for the year ended December 31, 2011.
SIGNIFICANT FINDINGS AND RECOMMENDATIONS
FINANCIAL AND COMPLIANCE AUDIT
1.
A certain official of the SDSSU was granted Representation Allowance amounting to P45,500.00 and Extraordinary Expenses of P54,600.00 despite the fact that said official received the same allowances from her permanent position contrary to Section 3.9.5.2.5.1 of the Manual on Position Classification and Compensation.
The Accountant is required to observe strictly Section 3.9.5.2.5.1 of the Manual on Position Classification and Compensation in the grant of Representation Allowance and Extraordinary Expenses. Likewise, demand the immediate refund of the audit disallowance from the person responsible therefore.
2.
The University granted Collective Negotiation Agreement (CNA) incentive to both management and rank and file employees totaling P1,542,000.00 which was paid out of the Special Trust Fund contrary to CHED Memorandum Order No. 20, thus resulting to disallowances of the same amount in audit.
Refrain from utilizing the income of Special Trust Fund for payment of CNA incentives. Moreover, instruct all personnel concerned to refund the amount so received.
3.
The Accountant failed to prepare monthly bank reconciliation statement for Special Trust Fund account from April 2009 to date in violation of Section 74 of Presidential Decree 1445, thus the account balance could not be determined at any given time.
Require the Accountant to update the preparation of the monthly bank reconciliation statements on the afore-stated account pursuant to Section 4 of PD 1445. Likewise, prepare, Journal Entry Vouchers ( JEVs) to record and/or adjust reconciling items affecting the accounts.
4.
The University collected P13.00 for every P1,000.00 of loan availed of by its personnel under Livelihood Assistance Program which amounted to P358,964.20 as of December 31, 2011 was found deposited under LBP account 0792-0158-40 instead of being utilized for insurance coverage on each of the borrowers thus, their interest and that of the University had not been protected.
Refrain from collecting the amount of P 13.00 for every P 1,000.00 of loan granted if management could not secure insurance coverage on all the borrowers.
5.
Cash advances in the total amount of P1,632,292.71 remained unliquidated as of December 31, 2011 due to inadequate internal control measures being adopted contrary to Sections 4.1.2 and 5.8 of COA Circular No. 97-002, thus overstating the receivable and government equity accounts and understating the total expenses. Issue a demand letter to all officials and employees to settle their unliquidated cash advances. Moreover, instruct the Agency Accountant to deduct a portion of their salary to be applied to their outstanding cash advances in accordance with the above-mentioned COA circular.
VALUE FOR MONEY AUDIT
6.
The University collected only 5.34% or P67,000.00 of the total amount of P1,255,663.13 of loans granted to qualified third, fourth and graduating students under the Student Financial Assistance Program due to the failure of management to collect the amount from student borrowers who
graduated from college, thus reducing the opportunity of other qualified and deserving students from availing the program.
Intensify collection by sending demand letters to student borrowers and guarantors in order to improve collection efficiency.
STATUS OF SUSPENSIONS, DISALLOWANCES AND CHARGSES
Pursuant to COA Circular No. 2009-006 dated September 15, 2009 prescribing the use of the Rules and Regulations on Settlement of Accounts, this Office issued a Statement of Audit Suspensions, Disallowances and Charges (SASDC) for the period ending December 31, 2011. The details are as follows:
Thi s Peri od Begi nni ng Ba l a nce December 31, 2010 to December 31, 2011 Endi ng Ba l a nce NS/ND/NC
December 31, 2010
NSSDC
Noti ce of Sus pens i on P 265,819.35
P
Noti ce of Di s a l l owa n P
P 2,187,460.00 P
19,200.00
P 2,169,700.00
P 2,191,439.05 P
19,200.00
P 2,439,498.40
1,440.00
3,979.05 P
-
December 31, 2011 P 269,798.40
Noti ce of Cha rge Tota l
P 267,259.35
The beginning balance of this SASDC amounting to P 267,259.35 pertains to disallowance and suspensions of SDSSU, Tagbina Campus which will be transferred as beginning balance in the SASDC to be prepared for that Campus by the Audit Team Leader of Team 3, Audit Group G who has the audit jurisdiction over that agency pursuant to COA Office Order No. 2010 dated January 4, 2010.
STATUS OF IMPLEMENTATION RECOMMENDATIONS
OF
PRIOR
YEAR’s
AUDIT
Review of the extent of implementations on eight (8) audit recommendations contained in the Annual Audit Report for CY 2010 disclosed that two (2) or 25% were implemented, five (5) or 62.5% were partially implemented and the remaining one (1) or 12.5% was not implemented.