TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT RECOMMENDATIONS As of December 31, 2012

OBSERVATIONS AND RECOMMENDATIONS 1. Non-reconciliation of Accounting and Property records of the Regional Office on Inventories, and Property, Plant and Equipment account resulted to a discrepancy in the amount of P13,162,042.97 thus, the reliability of the Inventories, and PPE balances cannot be ascertained contrary to Section 43 of Manual on the New Government Accounting System (NGAS), Volumes I, Section 491 (b) of the Government Accounting and Auditing Manual (GAAM), Volumes I and letter C of the instructions on how to accomplish the Property, Plant and Equipment Ledger Card-Specific Item ( Appendix 8A) of the National Government Accounting System, Volume II. We recommended that the Regional Accountant and the Property Officer reconcile their records to ascertain the correctness and accuracy of the year-end balances of the Inventories, and PPE accounts so that a true and factual data of the financial statements is reflected and the former to submit the reconciled report to the Audit Team in accordance with Section 490 of the Government Accounting and Auditing Manual, Volume I. 2.

STATUS OF IMPLEMENTATION The Regional Accountant Full already has drawn Journal Entry Vouchers (JEVs) to adjust and reconcile the respective PPE and Inventory accounts. The JEV was audited by the Audit Team. MANAGEMENT ACTIONS

AUDITORS VALIDATION

The reliability and accuracy of account, Cash in Bank Local As far as the 2010 Bank

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Currency, Current Account in the books of the Regional Office amounting to P2,447,374.15, could not be ascertained due to the failure of the Accountant to prepare and submit the Monthly Bank Reconciliation Statements (BRS) in violation of Section 74 of PD 1445. Further, subsidiary ledgers were not maintained pursuant to Section 12 of the Manual on the New Government Accounting System (MNGAS), Volume II, thus verification could not be readily made. We recommended that the Regional Director require the Accountant to prepare the Monthly Bank Reconciliation Statements of all its bank accounts and submit the same to the Audit Team pursuant to Section 74 of PD 1445 and also maintain subsidiary ledgers pursuant to Section 12 of the MNGAS, Volume II. In so doing, verification could be made and any discrepancy or error noted could be immediately adjusted. 3. Completed buildings of the Regional Office totaling P1,680,284.38 are still recorded under the Construction in Progress-Agency Assets and not transferred to the appropriate asset account contrary to Section 41 of the Manual on the New Government Accounting System, Volume I, thus overstating the CIP and Government Equity accounts and understating the Office Buildings account. We recommended that the Regional Director direct the Accountant to draw a Journal Entry Voucher (JEV) to transfer the completed buildings to the appropriate asset account pursuant to Section 41 of the Manual on the New Government Accounting System, Volume I.

Reconciliation Statements are concerned, the management was able to submit the same and assured for the regular and prompt submission of the reports required before them. The latest BRS submitted to the Audit Team was December 31, 2011.

The Regional Accountant has drawn Journal Entry Voucher (JEV) to reclassify and transfer the completed buildings to appropriate asset account. The JEV was audited by the Audit Team.

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4.

Advances to Officers and Employees (148) totalling P105,847.00 which represent cash advances granted to officers and employees for official travels, aged more than 31 days to over 3 years remained unliquidated beyond the reglementary period prescribed under existing rules and regulations, resulting to the understatement of the expenses and overstatement of the receivables. Further, no subsidiary ledgers for Advances to Officers and Employees were maintained by the Regional Office pursuant to Section 12 of the Manual on the New Government Accounting System (MNGAS), Volume II, thus verification could not be readily made. We recommended that concerned officers and employees be directed to immediately settle their unliquidated cash advances. It is suggested that management monitor closely outstanding cash advances and demand the immediate liquidation or settlement of same or deduct from their salaries the amount, if warranted pursuant to above-cited laws/regulations. Moreover, the Regional Accountant should maintain subsidiary ledgers for easy verification of the account.

The management agreed to strictly implement the Audit Teams recommendation. The Regional Accountant mentioned that included in this were cash advances totaling P30,000.00 granted to former Director of TESDA RO XII, BayaniSaparri, who died last May 28, 2006.

Partially implemented. This is reiterated in Part II of this report due to increase in the amount by P8,690.00. The management affirmed the audit recommendation to closely monitor cash advances. Likewise salary deductions were then effected to Officers and Employees concerned.

5.

Disbursement vouchers and its supporting documents, and Reports for the CY 2011 were Reports of Checks Issued were not submitted by the already submitted on time. Regional Office within the prescribed period to the Audit Team, depriving the Team of the timely conduct of substantive test, validation of transactions, detection of materials errors and adjustments of accounts affected. In addition, the Monthly Report of Accountability for Accountable Forms was not submitted on time thus, movement and status of accountable forms could not be readily determined at any given time.

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We recommended that the Regional Accountant strictly adhere to the rules and regulations requiring the prompt submission of disbursement vouchers and its supporting documents, and the Report of Checks Issued to enable the Team to conduct a timely review of the transactions. We further recommended that the payment of salaries of the Regional Accountant be suspended until he shall have submitted the required reports. Furthermore, the Accountable Officer should submit the Monthly Report of Accountability for Accountable Forms regularly and promptly.

6.

The Accounting Personnel of the Regional Office failed to Reports were submit timely, the various financial and accounting reports submitted on time. and other supporting documents for the calendar year 2010 as required in Section 5.1 of COA Circular No. 92-89E and Section 450 of Government Accounting and Auditing Manual (GAAM), Volume II, thus, timely verification/validation of the transactions could not be conducted. We recommended that the Regional Director instruct the Accountant to strictly adhere to the requirements of Section 5.1 of COA Circular No. 92-89E and Section 450 of GAAM, Volume II on the submission of reports. We further recommended that the payments of salaries of the Regional Accountant be suspended until he shall have submitted the required reports on time.

already

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7. Value for Money Audit The objective of the Pangulong Gloria Scholarships Program was not achieved by the Regional Office as manifested by an average low employment rate of 23% for the calendar years 2006 to 2009 which is par below the targeted employment rate of 60%. We recommended that the focal persons involved in the implementation of the Pangulong Gloria Scholarship closely monitor its proper implementation so as to effectively achieve the objective of the program.

The management adhered with the recommendation and implemented strict monitoring of the program.

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Certified Correct:

Noted By:

DANTE M. TANTERAS, CPA Accountant IV

ZEUS P. AMPUYAS, CESO IV Regional Director