STATUS OF IMPLEMENTATION BY MANAGEMENT

OF PRIOR YEAR’S AUDIT RECOMMENDATIONS

REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
1. The balances of the Property, Finding
No. 1
 Partially
Plant and Equipment (PPE) Implemented
accounts of the PSU as a whole
with a total
amountP1,644,714,235.95 as of
year-end were not reconcileddue
to the absences of complete and
updatedProperty Ledgers and
Stock/Property Cards,
respectively in the Accounting
Offices and the Supply/Property
Offices, and the non-conduct of
the required annual physical
inventory of PPEs in resulting in
the non-submission of the Annual
Physical Inventory Report, which
is not in conformity with Section
43 of the New Government
Accounting Manual (NGAS),and
Section 490 of Government
Accounting and Auditing Manual
(GAAM, Volume I),thus the
accuracy, existence and physical
condition of these assets could
not be ascertained.

We recommend that
management the following:

a. For the non-conduct of

physical inventory of the Conducted All of the 9
two University Campuses Physical
Inventory taking
Campuses of PSU
(Alaminos and Sta. already conducted
Maria), we recommended inventory taking of
that the Inventory their assets but failed
Committee is required to to reconcile with the
conduct actual count of all ledger balances.
physical assets of the
University in order to
determine their actual
existence and present
condition. After this,
require the Supply Officer
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 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
to prepare a Report in the
Physical Count of
Property, Plant and
Equipment and reconcile
it with the records of the
Accounting Unit and
submit a copy of the said
reports to the Audit Team
in compliance with the
provision of Section 490 of
the GAAM.

b. The Accounting
Department should Reconciliation of Update is on going
reconcile the differences balances between
Inventory Report
noted between the and the General
Inventory Report and the Ledger is on-
General Ledger balances. going.
Appropriate adjustments
should be made on the
overstated/understated
PPE accounts.

c. The inventory committee,

with the direct Five (5) Indorsed to COA
participation of the Supply Campuses of PSU
already requested TAS
Officer, should update the
report of unserviceable COA for
inspection and
property in the prescribed evaluate the
form of Inventory and appraised value of
Inspection of the unserviceable
Unserviceable Property properties for
and follow procedures on disposal.
disposal in accordance
with Section 79 of PD
1445.

d. With regard to the

Livestock Account with no Conducted
inventory, the respective inventory of IGP PSU Infanta has
Project-in-Charge of IGP livestock account already submitted
of the four Campuses their Inventory
concerned should account Report for the
and update records, Livestock account,
71
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
prepare reports on its but no report yet was
operations reflect the submitted by PSU
changes and movements of Sta Maria and San
the swine/piggery/goat Carlos.
projects, and submit the
reports on a regular basis
to the Accounting Office,
copy furnished the Office
of the Auditor.

e. The PSU Legal Officer to

follow-up at the DENR the Coordinated with Coordination was
DENR on the
approval of application of already made by
application for
PSU for titling of the Land titling of land PSU with DENR
thru special patent. The through special and a MOA was
Appraisal Committee patent already prepared per
should determine its verification. Titling
appraised value for fair of the Land thru
presentation of Land special patent is still
account in the financial in process.
statements of the agency.
Likewise, instruct the
Supply Officer to maintain
real property ledger card
in recording the land
account.

f. The Accountant to
record/book up the
cost/value of the Motor
Vehicle and Biological
Assets accounts in the
books of the agency in
order to present fairly the
correct value of the PPE
accounts in the financial
statements of the Campus.

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 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
2. The unexpended balances of Finding
No. 2
Remitted the  Fully Implemented
the MDS accounts of the Five unexpended
balance to the
(5) PSU Campuses totaling Bureau of Check#1154192 Sta.
P3,382,759.77 as of December Treasury Maria
31, 2015 were not
remitted/reverted to the Bureau
Check# 481748 San
of the Treasury as required
Carlos
under Item 3.2 of the National
Budget Circular No. 488, thus
Check# 01106794
the accumulation of huge cash
Asingan
in the account of the
University which is not
Check# 532630
supportive to the government
Binmaley
objective to maximize the use
of scarce government
Check# 1189113
resources by minimizing
Urdaneta
government borrowings and
rationalizing cash management

We recommend the
Accountant to ascertain the
status of the unutilized
balances of the MDS accounts
of the concerned Campuses
and remitting the
unused/unexpended NCAs to
the Bureau of the Treasury in
compliance with DBM-DOF-
COA Circular No. 1-97,
Budget Circular No.
488 and Section 31.3 of
Budget Circular Letter No.
2008-011; and to submit to the
Audit Team copies of JEV and
other documents for
compliance.

73
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
3. Cash Collections were not Finding
No. 3
Required all the  Partially
regularly deposit daily and Cashiers to Implemented
deposit their
intact to the authorized collections daily
government depository bank and intact
contrary to Section 21 of the Issued AOM to the
Manual in the New Cashiers of PSU
Government Accounting Urdaneta and School
System (MNGAS), National of Advanced Studies
Government Agencies, for not depositing
Volume I, exposing the their collections
collections to possible loss or daily and intact
misappropriation.

We recommend the Cashier to

deposit immediately all
collections intact and daily or
not later than the next
working day to the authorized
depository bank to prevent
misapplication or loss of
government fund.

4. The Cashbook balances for Finding

No. 4
Reconciliation of  Fully Implemented
some cash accounts of PSU- Accounting
Records with
Infanta Campus were not Cash Records
reconciled with the accounting
records every end of the month
as required in the Revised
Cash Examination Manual,
hence discrepancies exist in
both records.

We recommend the Cashier to

record transactions regularly
and always reconcile with the
Accounting records on a
monthly basis in compliance
with the provisions of the
Revised Cash Examination
Manual.

5. Cash advances granted in Finding Partially

No. 5
previous years totaling Implemented

74
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
P325,504.32 remained
unliquidated as of December
31, 2015 which was not in
accordance with the provisions
of COA Circular No. 97-
002and Section 89 of
Presidential Decree 1445 thus,
overstated the Accumulated
Surplus (Deficit) account.

We recommend the
Management the following
courses of action:

Opted to comply Issued AOM on 4

*Strictly observe the
with the PSU Campuses for
provisions of COA Circular
provisions of the the non-liquidation
No. 97-002 in granting, said Circular of cash advances
utilization and liquidation of
within the prescribed
cash advances and Section 89
period.
of PD 1445 on the limitations
of cash advances.
*Cause the immediate Issued demand Non-liquidation of
liquidation of all cash letters to prior years’ cash
concerned
advances especially those that employees and advances due to lack
have been outstanding for officials of information on
already long period of time. the whereabouts of
In case the officials and retired PSU
employees concerned fail to employees.
liquidate/settle, apply
sanctions as provided under
Section 5.1.3 of COA Circular Required the
No. 97-002 which states that, management to
“Failure of the accountable request for write off
officer to liquidate his cash of the dormant
advance within the prescribed accounts.
period shall constitute a valid
cause for the withholding of
his salary.”

6. Accounts Receivables with Finding

No. 6
 Partially
a total balance P25,946,114.93 Implemented
at year-end remained long
outstanding, depriving the
75
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
University of funds that could
be used for its operations and
the improvement of its
facilities.

We recommend the Established a

Accountants of the concerned Established a computerized system
collection system
PSU campuses to adopt a to facilitate the
and monitored the
collection scheme that would settlement of collections and
intensify the settlement of unpaid tuition fee enrolment processes.
unpaid tuition fees of students balances of However, settlement
and from various debtors. students of uncollected prior
Also, cause the immediate year receivables on
settlement of the uncollected IGP is still on-going.
prior year receivables on IGP.

7. Other Receivables in the Finding

No. 7
aggregate amount of
P10,322,523.65 remained
outstanding for over three (3)
to ten (10) years or more,
depriving the University much
needed funds for its operations,
especially in the grant of loans
to qualified students under the
STUFAP loan program.

We recommend the
University Accountant the
following courses of action:

a. Analyze the balances of the  Partially

Required
accounts to determine its accounting unit to
Implemented
nature so that appropriate evaluate existing
actions could be taken to have records of Required the
these accounts properly settled STUFAP loans management to
and coordinated request for write off
or collected. Accounts which with student
could no longer be collected service offices on
of the dormant
after having exerted efforts to the status accounts.
collect may be requested for
write-off in accordance with
the 2009 Revised Rules of
Procedure of the Commission

76
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
on Audit, supported with
complete documentation and
justifications.

Fully Implemented
b. Coordinate with the Officer
in charge of Student Services Established
coordination with
to determine the current
CHED.
status of the student-grantees;
and comply strictly with the
prescribed periods on the
settlement of loans granted
per CHED Memorandum
Order No. 4, series of 2014
and CHED Memorandum
Order No. 25, series of 2008.

8. The accountable officer of Finding

No. 8
Required the  Partially
concerned Implemented
PSU-Asingan Campus failed to personnel of PSU
report to the Auditor Asingan Campus
concerned the theft of Ten (10) to submit the
necessary report Report was
computer units within thirty and create a submitted to the
(30) days from occurrence committee to audit team but was
investigate the returned due to non
contrary to the provision cited
theft.
in Chapter 4 page 62 of the submission of
Handbook on PSMS, and the comment/
recommendation of
lost equipment were still
the agency head.
carried in the books of the
Campus, rendering the
overstatement of Property,
Plant and Equipment account.

We recommend the
management to take
appropriate action/steps to
have the case of the
unreported computer units
immediately settled by
conducting an investigation to
determine the official
responsible/liable for the loss.
77
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
9. Long-Term Investment Finding
No. 9
Requested  Partially
amounting to P3,750,000.00 information from Implemented
Landbank and
included in the balance of the Postharvest as to
Other Assets was not the existence of The audit team
supported by a Certificate of the Investment confirmed the
Investment or equivalent existence of the said
official document containing balance to
the terms and conditions of the Quedancor.
investment, rendering the
propriety, validity, and
existence of the reported
investment doubtful.

We recommend the
management to take
appropriate action to
document the Long-Term
Investment and to have it
settled. Also, furnish the
Office of the Auditor a copy of
the Request for Write-off for
record purposes and
monitoring.

10. Disbursements on the Finding

No. 10
Instructed the  Partially
procurement of infrastructure Accountant and Implemented
other concerned
projects and goods costing an officials to strictly
aggregate amount of comply with COA
The management
Php50,386,496.87 and Circular No. has submitted the
Php9,277,515.54, respectively 2012-001. required documents
were not supported with pending further
complete documentation as evaluation by COA
required under COA Circular TAS.
No. 2012-001 dated June 14,
2012, thus the propriety and
validity of the payments could
not yet be ascertained.

We recommend the
Accountant and concerned
officials to comply strictly
with COA Circular No. 2012-
001, and submit the required
documents in support of the

78
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
disbursements that were not
supported with complete
documentation. And for the
Accountant to ensure that all
required documents in
support of its disbursements
are submitted as basis for her
Certification.

11. The Receipt of fund Finding

No. 11
Prepared the  Fully Implemented
transfers from various National necessary
reclassifying
Government Agencies (NGAs) entries
were recognized as Other
Payable account in the books
of PSU-Sta. Maria, and PSU-
San Carlos, which is not in
conformity with the Revised
Chart of Accounts, thus the
unutilized balances totaling
P2,056,244.00 overstated the
Other Payable account and
understated the balance of the
Due to NGAs account by the
same amount.

We recommend that the

Accountant of PSU-San
Carlos and PSU-Sta Maria
draw a Journal Entry
Voucher to reclassify the
balances of the unutilized
fund received from NGAs to
the Due to NGAs account in
accordance with the Revised
Chart of Accounts, as follows:

PSU-Sta Maria

DR.-Other Payables
P1,463,144.00

79
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
CR.-Due to NGAs
P1,463,144.00

PSU-San Carlos

DR.-Other Payables
P593,100.00
CR.-Due to NGAs
P593,100.00

12. Deficiencies were noted in Finding

No. 12
Included in the  Partially
the utilization Research Office Implemented
the handling of
/implementations of specific implementation of
program or project sourced out programs and Issued AOM on
from the funds received from projects from various deficiencies
the various National other National noted in the
Government Agencies, hence, Offices utilization/
main objectives or end results implementation of
may not be attained. specific projects or
programs of other
We recommend that the government agencies
University President ensure
compliance by the officials
concerned on the submission
of the deficiencies observed;
and to cause the withholding
of taxes on payments subject
to withholding taxes, and the
return the unused balance of
the funds after the completion
of the projects in accordance
with the MOA.

13. The Board of Regents of Finding

No. 13
Discontinued the  Fully Implemented
PSU were paid additional payment of
honoraria to the
compensation in the form of members of the
honoraria in the total amount Board of Regents
of Php406,000.00 in addition in compliance
to the authorized per diems for with DBM Budget
every board meetings attended Circular No.
2003-6 and DBM
which is not consistent with the NBC 2007-510
provisions of Republic Act No.
9282, and DBM Budget

80
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
Circular 2003-6 dated
September 29, 2003. In
addition per diems and
honoraria in the amount of
Php24,000.00 and
Php80,000.00, respectively
were sourced from Income
from tuition fees of the
University (Fund 164) which is
not consistent with the
Circular.

We recommend the University

President to discontinue the
payment of the honoraria to
the members of the Board,
and accordingly to inform the
Board of Regents the
prohibition on the grant of
both per diems and honoraria
to the members of the Board
in accordance with DBM
Budget Circular 2003-6 and
DBM National Budget
Circular No. 2007-510; and to
instruct the Budget Officer
and Accountant to charge the
payment of per diems against
its appropriation in the
General Fund.

14. The payments made in the Finding

No. 14
implementation of Scholarship
Program for Expanded
Students’ Grants-In-Aid
Program for Poverty
Alleviation (ESGP-PA) in the
University for the 2nd
semester, SY 2014-2015, and
1st semester, SY 2015-2016 is
not in accordance with the
provisions of CHED
Memorandum Order No. 13

81
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
Series of 2014.

We recommend the
University President to ensure
compliance with CHED
Memorandum Order No. 13,
Series of 2014 on the grant of
scholarship to qualified
students under the Student
Financial Assistance
Programs (StuFAPs), by
undertaking the following:

a. Require the Student 

Services Coordinator of every Required the Fully Implemented
Student Services
Campus to verify the names of Office to
the student-grantees in the coordinate with
official Master list of the the Accounting
ESGP-PA Scholarship Unit to ensure
Program; and to investigate compliance with
scholarship
the reason why the 13 student- policies
grantees included in the
master list were not paid their
financial assistance.

b. Instruct the Accountant to
ascertain the completeness of Partially
Required the
required supporting Implemented
Student Services
documents on all claims for Office to submit a
certified list of There were still
payment; and to reclassify to
qualified scholars documentary
the proper account the to the Accounting deficiencies noted in
purchase of office equipment Unit the release of
in accordance with the
scholarship funds.
Revised Chart of Accounts;
and the Budget Officer of
each campus to ensure that
only authorized expenditures
are charged to the ESGP-PA
Scholarship fund.

15. The University President Finding

No. 15
Stopped the  Fully Implemented
were paid Extraordinary and payment of
Extraordinary and
Miscellaneous Expenses Miscellaneous

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 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
(EMEs) in excess of Expenses beyond
P108,000.00 and P72,000.00, the prescribed
amount allowed in
respectively prescribed under the GAA
Section 39 of the General
Appropriations Act (GAA) of
2015, rendering the payments
irregular.

We recommend the University

President to limit his claim for
Extraordinary and
Miscellaneous Expenses
within the amounts prescribed
under the General
Appropriations Act; and to
submit a detailed accounting
of the excess amount and the
legal justifications for the
additional expenses incurred
in excess of the amount
authorized.

16. Arrears on space rentals in Finding

No. 16
the total amount of
P376,700.00from the two (2)
lessees operating canteen
business remained uncollected
as of December 31, 2015,
depriving the University much
needed funds for its operations.

We recommend the University

President to instruct the VP
for Finance to undertake the
following:
Issued demand  Fully Implemented
a. Investigate the non-
letter and
payment of rentals, and the coordinated with
continued canteen operation the concerned
of Au-Ro General tenants
Merchandising despite the
expiration of its contract and
take appropriate action to

83
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
protect the interest of the
University in accordance of
the Lease Agreements and
existing regulations;

b. Cause the immediate Issued demand Partially


collection of the rentals in letter and Implemented
coordinated with
arrears, as well as rentals due the concerned Verification of
in CY 2015. tenants
documents revealed
that the management
issued multiple
demand letters for
the payment of rent
space used by
Lyssa’s Canteen. It
was observed that
the tenant pays on a
regular basis but at
varying amounts,
resulting to an
balance of
P63,000.00 as of
December 31, 2016.

17. Had the 18 Commercial Finding

No. 17
Required the IGP  Partially
Stalls located at the ground Director to Implemented
formulate the
floor of the Legacy Building necessary policies
been rented out, the University A policy was already
in the renting of
could have generated commercial stalls approved by the
additional income from in the legacy board and the
rentals/rights at the estimated building and bidding process for
implement the tenants is on going
amount of P2,340,000.00 to same as soon as
P3,960,000.00, respectively. possible.

We recommend that
management, particularly the
Business Affairs and
Resource Generation to fast
track the implementation of
the formulated policies
relative to the use of the
commercial stalls to ensure
smooth operation and

84
 REF. STATUS OF
FINDINGS AND MANAGEMENT REASONS FOR NON-
AAR IMPLEMENTATION IMPLEMENTATION
RECOMMENDATIONS ACTION
2015 Full Partial None
collection of income that
could be utilized for more
important projects of the
University.

18. The amount of Finding

No. 18
Required the  Not Implemented
P850,391.39 or barely 15.8% GAD Director
with its The GAD
of the total agency approved coordinators to
budget of P5,380,500.00 was evaluate the
Coordinators of
utilized in the implementation implementation of different Campuses
of programs, activities and GAD Plans and were not provided
projects as indicated in the Programs and with an office or
provide for space with
GAD Plan and Budget, hence, activities that will
activities on gender issues facilitate the
equipment/ supplies
were not fully addressed and utilization of in the performance
the maximum fulfillment of GAD funds. of their functions as
GAD objectives as mandated GAD Coordinators.
in Joint Circular No. 2004-1
dated April 5, 2004, were not Out of GAD Budget
fully achieved. for CY 2016 in the
amount of
We have recommended that P6,572,000.00, only
the GAD Coordinators of the P808,894.91 was
eight PSU campuses to disbursed.
coordinate with the GAD
Executive Director for more
efficient and effective
implementation and delivery
of the University’s GAD
plans, programs and activities
that address gender issues of
women both in the teaching
and non-teaching profession
of the University, and in order
to realize the intended
results/expected benefits
contributing to the attainment
of its objectives.

85