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COMMISSION ON AUDIT
National Government Sector
Cluster NGS-5-Education and Employment
Audit Group R16-C, Audit Team No. R16-C-04
Department of Labor and Employment-Field Office, Bacolod City
Technological University of the Philippines-Visayas
Philippine Normal University Visayas
Technical Education and Skills Development Authority (TESDA), Talisay City
____________________________________________________________
We have audited the accounts and operations of the Technological University of the
Philippines – Visayas, Talisay City and observed the following deficiencies/errors:
In preparing the statement of cash flow, last paragraph of Section 23, Chapter 19 of the
Government Accounting Manual for NGAs. Volume 1 provides:
The net increase in cash provided by (used in) operating activities, investing activities and
financing activities for the year, and the cash balance at the start of the year, shall equal the
cash balance at the end of the year as shown in the Statement of Financial Position.
Financial Statements must be reliable. A reliable information is free from material error and bias,
and can be depended on by users to represent faithfully that which it purports to represent or could
reasonably be expected to represent (sec 6(e), Chapter 19, GAM, Volume I)
Review of the agency’s financial statements shows erroneous mathematical computation of cash
balance at the end of the year. Instead of adding the increase in cash to the cash balance at the
beginning of the year, the same was however, deducted to the latter. Thus, instead of a cash balance
of ₱129,128,071.06 only the amount of ₱121,226,596.22 were reported, as shown below:
As obtained from the records, this amount pertains to its cash balance under Fund 164. Same cash
balance (₱121,226,596.22) were also reported in the agency’s statement of financial position as
of December 31, 2017 as follows:
This erroneous presentation, and the agency’s consistent failure to submit its bank reconciliation
statement under fund 164 for more than two years as stated in our previous audit observations,
raises our doubts as to the correctness of the cash balances reported by the agency. Moreover, we
wonder how this cash balance as presented in the Statement of Cash Flows coincide with its
Statement of Financial Position, when the such amount were mathematically incorrect,
Based on the foregoing, we recommend that the agency immediately submit to us copy of its bank
statement as of December 31, 2017 for all of its bank accounts, specially under Fund 164 for us to
verify the correct cash in bank balance.
May we have your comments on the following observations within five (5) days from
receipt hereof.
NAID A. BRASILEÑO
State Auditor III
Audit Team Leader
BENEDICTA B. PAGUNSAN
State Auditor IV
OIC, Regional Supervising Auditor
Proof of receipt of AOM