House of

Representatives
Electoral Tribunal
 CY 2012
House of Representatives Electoral Tribunal

Constituted under Article 7, Section VI of the 1987 Philippine

Constitution
Acts as the sole judge of all contests relating to the election,
returns and qualifications of the Members of House of
Representatives.
Major function is the adjudication of electoral contests involving the
Members of the House of Representatives
Year 2012
Financial Highlights
 Scope

The audit was conducted on the accounts and operations of

the HRET for the CY 2012. it was aimed to ascertain the
propriety of the financial transactions and determine the
fairness of the presentation of the financial statements of the
agency.
 Observations and Recommendations
1. Insufficient documents to support disbursements
. Other maintenance and Operating expenses amounting to P28, 019,
640.21 (includes the additional allowance) do not have documents to
support the expenditures but only a certification which states that the
amounts were expended in the performance of official duties
. Item 6, section 4 of PD 1445 Claims against government funds shall
be supported with complete documentation
. Practice of supporting expenditures with only certification was
anchored by the Concurrent Resolution No. 10 Adopted by the Senate
of the Philippines and the House of Representatives on August 24 2011
and February 1, 2012
. Memorandum, dated March 25, 2013 was issued by the Supervising
Auditor
.Recommendation: Strict Compliance
2. Non-compliance with Budget Requirement for Programs/Projects
related to Senior Citizens and Differently-abled persons
RA 10155
At least 1%
Recommendation: allocate at least 1% of the total budget
3. Compliance with Tax Laws
Taxes withheld from 2012 disbursements were remitted to the
Bureau of Internal Revenue on or before the due dates.
P8,662,313.90
 Prior Years Audit Recommendation

Implemented - 2
Partially Implemented - 1
Not Implemented 2
Total Recommendations - 5
1. Payments out of the Petty Cash Funds exceeded the P15,000
ceiling
Contrary to 4.3.2 of COA Circular no. 97-002
Implemented
Management gave instructions
Expenses did not exceed P15,000.
1.B The Cashier was designated to as SDO to handle Petty Cash
Funds (PCF)
Contrary to the specific standard of the Internal control on
segregation of duties and functions.
Implemented
PCF was transferred from the Chief of the Cash Management
Service to the LSO IV of the Legal Service.
2. Use of traditional Payroll scheme
Encouraged to use the automated payroll scheme (through banks)
May lead to theft or robbery
Not Implemented
HRET has only 127 employees
3. Agency has not created an Internal Audit Service
Contrary to Administrative order nos. 278 and 70
Not Implemented
Management is reconsidering the implementation on CY 2013
CY 2013
 Scope

The audit was conducted on the accounts and operations of

the HRET for the CY 2013. It was aimed to ascertain the
propriety of the financial transactions and determine the
fairness of the presentation of the financial statements of the
agency.
 Observations and Recommendations

1. Non-submission of approved purchase orders

. Purchase orders attached to the disbursement vouchers were not forwarded
to the Office of the Auditor within 5 working days from issuance
. Section 3.2.1 of COA Circular 2009-001
. Management acknowledged their failure to comply
2. Status of Audit Suspensions, Disallowances, and Charges (SASDC)
. There was no Audit Suspensions and Disallowances for CY 2013
3. Agency was able to Identify, include and attain programs/activities in
its Gender and Development Plan (GAD) plan for CY 2013
Spent 100% of the allocated budget for the GAD Plan
4. Non-compliance with Budget Requirement for Programs/Projects related to
Senior Citizens and Differently-abled persons
RA 10155
At least 1%
Recommendation: allocate at least 1% of the total budget
5. Compliance with Tax Laws
Taxes withheld from 2012 disbursements were remitted to the Bureau of
Internal Revenue on or before the due dates.
P 9,398,274.19
6. Compliance with GSIS premium deductions and remittances
GSIS Social Insurance and Employees Compensation Fun (SIF and
ECIF) were deducted from salaries of employees and remitted on
time
The Due to GSIS Balance was remitted (P3,065.15)
 Prior Years Audit Recommendation

Implemented - 1
Not Implemented 3
Total Recommendations - 4
1. Other maintenance and Operating expenses amounting to P28, 019, 640.21
. Implemented
. Liquidation vouchers are now supported by complete documents
. Management Complied to the instruction of Audit Supervisor
2. The Agency had no programs/activities related to senior citizens and the differently
abled persons.
. Not Implemented
. Management did not prepare and allocate budget for programs related to senior citizens
and differently abled persons.
3. Use of Automated payroll scheme
Not Implemented
Management still uses Traditional Payroll scheme
4. Internal Audit Service/Unit
Not Implemented
The Agency has not created an Internal Audit Service/Unit
Contrary to Administrative Order nos. 278 and 70