DA Financial Performance Report by roldangorgonio

Management Committee Meeting

Philippine Rice Research Institute, Maligaya, Muñoz, Nueva Ecija

November 22-26, 2021

Prefatory Statement

The Department of Agriculture submitted to Congress a total proposed budget of Php 231.8-Billion for FY 2022 comprising of Php 77,438,582-Billion (tier1) and Php 154,325,262-Billion under tier2. Our FY 2021 GAA budget was Php 90.1-Billion, thus, there is an increment of Php 141.7 Billion which is 157.43% higher than the 2021 GAA. Net of corporations, the total proposed budget is Php 204.9-Billion. Likewise, the FY2022 budget proposal for attached corporations also increased by 40.76%. The proposed budget amounts to Php 26.8-Billion.

However, only 70.93% of such proposal was reflected in the National Expenditure Program (NEP) translating into Php 18,993,446 million. Note, in FY 2020, the approved budget for attached corporations amounted to Php 19-Billion. As for the NEP for FY 2022, the Department has Php 91,007,940 million or 1.05% higher than 2021 GAA translating this increment to Php 945.M. The breakdown is as follows: Personnel Services, Php 6.3-Billion (6.95%); Capital Outlay, Php 27.5-Billion (30.22%); and MOOE, Php 57.2-Billion (62.83%).

It is worthy to mention that the Administration of Secretary William D. Dar breached the high score of 91.85% performance if we were to base on the obligational rate for FY 2020. As a recap of previous annual utilization reports (net of corporations) from Fiscal Years 2009 to 2020, the year 2009 has 87.75%; 2010, 81.85%; 2011, 72.73%; 2012, 91.26%; 2013, 91.65%; 2014, 79.19%; 2015, 83.96%; 2017, 94.58%; 2018, 85.14%; 2019,85.80%; 2020; 91.85%. The immediately preceding year was defined by uncertainties due to the pandemic. However, special funds (Bayanihan 1 and Bayanihan 2) and the programmed funds under the 2020 GAA, has to be examined in the light of disbursement performance of the Department.

This fiscal report presents the highlights of performance, using some innovations of the Office of the Undersecretary of Administration and Finance in drilling down financial details and the applicable use of digital technology in the graphical illustrations. It has to be noted finally that this report does not necessarily provide a prognosis of the health of our agency’s finances. It elicits its humble analysis on the overarching goals of the Duterte Administration, especially with the issuance of Executive Order (EO) 91, s. 2019 on September 9, 2019, mandating the adoption of cash-based budgeting system beginning fiscal year (FY) 2019, and for other purposes.

The shift from obligation-based budgeting to cash-based budgeting is meant to improve fiscal planning of government agencies and in turn, speed up the implementation of programs and promptly deliver goods and services to the Filipinos. As such, it has implications on government operations, particularly on budget as the new scheme prioritizes the most implementation-ready programs, activities, and projects of government agencies/units, as emphasized by Manasan (2002).

Analysis

1 1

USEC. ROLDAN G. GORGONIO Undersecretary for Administration and Finance

of the President’s Budget Book Series by Rosario Manasan, Philippine Institute of Development Studies

Financial Performance Report as of September 30, 2021

Republic of the Philippines Department of Agriculture

Elliptical Road, Quezon City

Office of Usec. Roldan G. Gorgonio

Undersecretary for Administration and Finance

2021 FINANCIAL PERFORMANCE REPORT as of September 30, 2021

TOTAL ALLOTMENTS - Php 68,153,253,000

Total Obligations Incurred - Php 46,335,646,000

Budget Utilization Rate - 67.99%

Lapsed NCA - Php 1,719,929,467.24

Total Receipts (NCA) - Php 49,950,693,757.00

Total Disbursements - Php 47,015,214,744.53

NCA Utilization Rate - 94.12 %

| 1

2021 Fiscal Report as of September 30, 2021

As gleaned from the above table, out of the Php 68.153 billion allotment received by the Department of Agriculture (DA)1, the obligations incurred amounted to Php 46.335 billion, constituting 67.99 percent. The Office of the Secretary (OSEC)2 received Php 50.095 billion allotment from the current and continuing funds. The obligations incurred by the OSEC amounted to Php 33.486 billion, and the unobligated balance is Php 16.609 billion. On the other hand, the Attached Agencies3 received Php 18.057 billion allotment from the current and continuing funds. The obligations incurred by the Attached Agencies amounted to Php 12.849 billion, and the unobligated balance is Php 5.208 billion. Therefore, as of September 30, 2021, the total unobligated allotments by the DA is amounted to Php 21.817 billion.

In its entirety, the DA obligated almost seven tenth (7/10) of the allotment it has received amounting to Php 46.356 billion. However, included in this allotment is the amount of Php 2.833 billion from Bayanihan II4 funds which was extended up to June 30, 20215. The remaining unobligated allotment for Bayanihan II funds amounting to Php 331.042 million has to be reverted to the National Treasury in compliance with the Republic Act No. 11519.

1DA-OSEC and Attached Agencies

2DA-Central Office (DA-CO), Regional Field Offices (RFOs), Agricultural Training Institute (ATI), Bureau of Agricultural Research (BAR), Bureau of Agricultural and Fisheries Engineering (BAFE), Bureau of Agriculture and Fisheries Standards (BAFS), Bureau of Animal Industry (BAI), Bureau of Plant and Industry (BPI), and Bureau of Soils and Water Management.

3Agricultural Credit Policy Council (ACPC), Bureau of Fisheries and Aquatic Resources (BFAR), Fertilizer and Pesticide Authority (FPA), National Fisheries Research and Development Institute (NFRDI), National Meat Inspection Service (NMIS), Philippine Carabao Center (PCC), Philippine Center for Postharvest Development and Mechanization (PhilMech), Philippine Council for Agriculture and Fisheries (PCAF), and Philippine Fiber Industry Development Authority (PFDA).

4 Republic Act 11494 Bayanihan to Recover as One Act

5 Republic Act No. 11519, An Act Extending the Availability of Appropriations under RA 11494.

2021 Fiscal Report as of September 30, 2021 | 2 BUDGET UTILIZATION AS OF SEPTEMBER 30, 2021

Table

Allotment Received (‘000) Obligations Incurred (‘000) BALANCES (‘000) % Total 68,153,253 46,335,646 21,817,606 67.99% UTILIZATION Current Funds 61,578,820 42,058,162 19,520,658 68.30% Office of the Secretary 44,668,242 30,016,478 14,651,764 67.20% Attached Agencies 16,910,577 12,041,684 4,868,893 71.21% Continuing Funds 6,574,433 4,277,484 2,296,949 65.06% Office of the Secretary 5,427,214 3,469,974 1,957,240 63.94% Attached Agencies 1,147,218 807,510 339,709 70.39%

of September 30, 2021

Likewise, Table 2 illustrates that among the banner programs of the DA, the National Rice Program has the highest incurred obligations in relation to its corresponding allotment it has received at 94.60 percent rate of utilization. The other programs which consist of the National Corn Program, National High Value Crops Program, National Livestock Program, National Organic Agriculture Program, National Fisheries Program, and Halal Food Industry Development Program has a total of 86.49 percent rate of utilization.

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BANNER PROGRAMS Allotment Received Obligations Incurred Rate of Utilization National Rice Program 15,591,276 14,748,638 94.60% National Corn Program 1,549,985 1,299,346 83.83% National High Value Crops Program 1,956,679 1,431,211 73.14% National Livestock Program 1,305,698 918,870 70.37% National Organic Agriculture Program 793,928 661,931 83.37% National Fisheries Program 3,889,254 2,643,314 67.96% Halal Food Industry Development Program 23,843 15,281 64.09% TOTAL 25,110,663 21,718,589 86.49 %

Table 2

NATIONAL RICE PROGRAM FINANCIAL PERFORMANCE

The National Rice program performed well in the utilization of their allotted budget with 94.60 percent expenditure as of September 30, 2021. However, upon assessment of the performance for its operating unit, it shows that the Central Office got the lowest utilization rate at 15.50 percent. Far second is the Bureau of Soils and Water Management (BSWM) AT 49.96 percent. While the rest got higher marks from 71.81 percent to 99.54 percent.

2021 Fiscal Report as of September 30, 2021 | 4

BY OPERATING UNITS Allotment Received Obligations Incurred Unexpended Balances % Central Office 105,556 16,360 89,196 15.50% Region I - Ilocos Region 1,809,162 1,707,382 101,780 94.37% Cordillera Administrative Region 347,149 315,896 31,253 91.00% Region II - Cagayan Valley 2,833,945 2,801,967 31,978 98.87% Region III - Central Luzon 2,920,065 2,901,075 18,990 99.35% Region IVA - CALABARZON 301,541 288,741 12,800 95.76% Region IVB - MIMAROPA 1,411,193 1,332,147 79,046 94.40% Region V - Bicol Region 1,121,377 1,116,179 5,198 99.54% Region VI - Western Visayas 956,892 876,334 80,558 91.58% Region VII - Central Visayas 242,743 177,127 65,616 72.97% Region VIII - Eastern Visayas 662,856 623,449 39,407 94.05% Region IX - Zamboanga Peninsula 223,267 191,073 32,194 85.58% Region X - Northern Mindanao 592,517 570,374 22,144 96.26% Region XI - Davao Region 101,133 76,355 24,778 75.50% Region XII - SOCCKSKSARGEN 1,211,944 1,158,731 53,213 95.61 Region XIII - CARAGA 165,608 140,577 25,031 84.89

GRAND TOTAL (IN THOUSAND PESOS)

NATIONAL CORN PROGRAM FINANCIAL PERFORMANCE

The National Corn Program performed well also with an average of 83.83 percent utilization rate while the Central Office still emerged with the lowest percentage of utilization at 13.36 percent.

GRAND TOTAL (IN THOUSAND PESOS)

2021 Fiscal Report as of September 30, 2021 | 5

BY OPERATING UNITS Allotment Received Obligations Incurred Unexpended Balances % Central Office 38,992 5,211 33,781 13.36% Region I - Ilocos Region 92,215 76,634 15,581 83.10% Cordillera Administrative Region 81,194 76,536 4,658 94.26% Region II - Cagayan Valley 145,250 139,152 6,098 95.80% Region III - Central Luzon 97,085 90,943 6,142 93.67% Region IVA - CALABARZON 93,783 89,858 3,925 95.81% Region IVB - MIMAROPA 82,464 59,030 23,434 71.58% Region V - Bicol Region 100,797 95,137 5,660 94.38% Region VI - Western Visayas 61,711 49,974 11,737 80.98% Region VII - Central Visayas 75,903 55,113 20,791 72.61% Region VIII - Eastern Visayas 69,634 56,366 13,268 80.95% Region IX - Zamboanga Peninsula 64,089 52,438 11,650 81.82% Region X - Northern Mindanao 103,855 94,166 9,689 90.67% Region XI - Davao Region 76,138 58,361 17,777 76.65% Region XII - SOCCKSKSARGEN 127,475 105,300 22,176 82.60 Region XIII - CARAGA 76,512 66,415 10,097 86.60

NATIONAL LIVESTOCK PROGRAM FINANCIAL PERFORMANCE

The National Livestock Program performed also within the average level at 70.37 percent. Though some units garnered higher efficiency level at 94.22%, 98.34% and 95.45 %.

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PARTICULARS GRAND TOTAL (IN THOUSAND PESOS) BY OPERATING UNITS Allotment Received Obligations Incurred Unexpended Balances % Central Office 20,000 - 20,000 0.00% Region I - Ilocos Region 69,377 55,890 13,487 80.56% Cordillera Administrative Region 75,000 70,664 4,336 94.22% Region II - Cagayan Valley 78,403 77,104 1,299 98.34% Region III - Central Luzon 58,035 51,740 6,295 89.15% Region IVA - CALABARZON 55,174 46,043 9,131 83.45% Region IVB - MIMAROPA 48,093 36,397 11,695 75.68% Region V - Bicol Region 69,737 66,756 2,981 95.73% Region VI - Western Visayas 49,888 37,065 12,822 74.30% Region VII - Central Visayas 55,720 48,662 7,057 87.33% Region VIII - Eastern Visayas 51,325 44,470 6,855 86.64% Region IX - Zamboanga Peninsula 54,270 51,802 2,468 95.45% Region X - Northern Mindanao 68,295 52,400 15,895 76.73% Region XI - Davao Region 57,837 39,793 18,044 68.80% Region XII - SOCCKSKSARGEN 54,252 39,368 14,884 72.57% Region XIII - CARAGA 56,148 47,092 9,056 83.87%

NATIONAL HIGH VALUE CROP DEVELOPMENT PROGRAM FINANCIAL PERFORMANCE

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PARTICULARS GRAND TOTAL (IN THOUSAND PESOS) BY OPERATING UNITS Allotment Received Obligations Incurred Unexpended Balances % Central Office 32,214 1,391 30,283 4.32% Region I - Ilocos Region 133,293 102,042 31,251 76.55% Cordillera Administrative Region 105,078 102,133 2,945 97.20% Region II - Cagayan Valley 104,331 103,779 552 99.47% Region III - Central Luzon 117,171 111,051 6,120 94.78% Region IVA - CALABARZON 113,830 92,752 21,078 81.48% Region IVB - MIMAROPA 102,860 73,241 29,619 71.20% Region V - Bicol Region 107,903 103,718 4,185 96.12% Region VI - Western Visayas 79,199 55,785 23,415 70.44% Region VII - Central Visayas 75,013 54,378 20,636 72.49% Region VIII - Eastern Visayas 101,237 80,823 20,414 79.84% Region IX - Zamboanga Peninsula 88,479 73,611 15,137 82.94% Region X - Northern Mindanao 112,809 71,174 41,635 63.09% Region XI - Davao Region 94,973 46,613 48,360 49.08% Region XII - SOCCKSKSARGEN 70,568 54,933 15,636 77.84% Region XIII - CARAGA 88,707 58,831 29,875 66.32%

NATIONAL ORGANIC AGRICULTURE PROGRAM FINANCIAL PERFORMANCE

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PARTICULARS GRAND TOTAL (IN THOUSAND PESOS) BY OPERATING UNITS Allotment Received Obligations Incurred Unexpended Balances % Central Office 8,319 - 8,319 0.00% Region I - Ilocos Region 29,268 21,886 7,382 74.78% Cordillera Administrative Region 15,844 15,227 617 96.11% Region II - Cagayan Valley 20,723 19,993 730 96.48% Region III - Central Luzon 23,991 21,313 2,678 88.84% Region IVA - CALABARZON 19,164 12,197 6,967 63.64% Region IVB - MIMAROPA 17,778 12,887 4,891 72.49% Region V - Bicol Region 24,146 22,660 1,486 93.85% Region VI - Western Visayas 11,159 8,683 2,477 77.81% Region VII - Central Visayas 10,317 9,746 571 94.47% Region VIII - Eastern Visayas 27,435 21,506 5,928 78.39% Region IX - Zamboanga Peninsula 10,698 9,287 1,410 86.82% Region X - Northern Mindanao 12,817 9,213 3,604 71.88% Region XI - Davao Region 9,959 7,832 2,128 78.64% Region XII - SOCCKSKSARGEN 12,783 9,415 3,367 73.66%

HALAL PROGRAM FINANCIAL PERFORMANCE

DISBURSEMENT RATE AS OF OF SEPTEMBER 30, 2021

The DA’s disbursement rate is at 94.84 percent. From January to September 30, 2021, the DA credited Php 49.950 billion in the individual Operating Units Modified Disbursement System (MDS). The total Notice of Cash Allocation (NCA) disbursement amounted to Php 47.015 billion.

2021 Fiscal Report as of September 30, 2021 | 9

PARTICULARS GRAND TOTAL (IN THOUSAND PESOS) BY OPERATING UNITS Allotment Received Obligations Incurred Unexpended Balances % Central Office 8,478 4,205 8,563 64.09% Region I - Ilocos Region 680 678 2 99.75% Cordillera Administrative Region 1,000 995 5 99.54% Region II - Cagayan Valley 250 228 22 91.10% Region III - Central Luzon 415 263 152 63.33% Region IVA - CALABARZON 1,024 667 358 65.07% Region IVB - MIMAROPA 1,000 326 674 32.60% Region V - Bicol Region 250 250 - 100.00% Region VI - Western Visayas 505 180 325 35.70% Region VII - Central Visayas 1,281 1,080 201 84.32% Region VIII - Eastern Visayas 500 304 196 60.77% Region IX - Zamboanga Peninsula 2,014 1,806 208 89.67% Region X - Northern Mindanao 1,200 1,121 79 93.39% Region XI - Davao Region 1,201 1,001 200 83.35% Region XII - SOCCKSKSARGEN 2,441 1,539 901 63.08% Region XIII - CARAGA 413 360 53 87.23

2021 Fiscal Report as of September 30, 2021 | 10 Table

AGENCY Disbursement Performance (MDS) Cash Receipts Disbursements MDS Adjustments Lapsed NCA Adjusted Balances % Disb/Receipts CO 6,768,787,407.67 6,001,703,161.68 5,973.74 763,892,184.04 3,198,035.69 88.67% CARFO 1,163,598,241.00 1,163,534,508.15 -63,732.85 0.00 0.00 99.99% RFO 1 2,629,189,773.00 2,629,189,773.00 0.00 0.00 0.00 100.00% RFO 2 3,258,185,068.00 3,258,184,789.32 0.00 278.68 0.00 100.00% RFO 3 2,794,021,155.26 2,792,648,893.26 0.00 1,372,262.00 0.00 99.95% RFO 4A 1,511,926,914.15 1,487,884,164.98 0.00 24,042,749.17 0.00 98.41% RFO 4B 1,509,157,968.00 1,506,728,332.65 0.00 2,429,635.35 0.00 99.84% RFO 5 2,783,059,272.00 2,783,016,529.73 0.00 42,742.27 0.00 100.00% RFO 6 1,692,668,549.99 1,647,825,282.38 0.00 22,033,913.64 22,809,353.97 97.35% RFO 7 923,622,879.00 783,202,895.40 2,299.06 140,422,282.66 0.00 84.80% RFO 8 1,159,021,206.00 1,158,051,217.76 -124,500.00 845,488.24 0.00 99.92% RFO 9 886,732,642.00 886,732,247.54 0.00 394.46 0.00 100.00% RFO 10 977,043,695.00 968,590,843.72 0.00 8,452,851.28 0.00 99.13% RFO 11 1,215,228,602.93 1,050,348,696.93 0.00 157,702,946.08 7,176,959.92 86.43% RFO 12 1,963,761,694.00 1,963,761,337.97 0.00 356.03 0.00 100.00% RFO 13 784,026,939.00 784,020,199.89 0.00 6,739.11 0.00 100.00% ATI 1,023,318,505.00 1,004,292,001.72 0.00 19,026,503.28 0.00 98.14% BAI 833,535,166.00 619,636,821.91 0.00 211,646,922.68 2,251,421.41 74.34% BAR 1,338,548,479.00 1,338,546,214.94 0.00 2,264.06 0.00 100.00% BPI 964,650,148.00 887,352,228.55 0.00 77,297,919.45 0.00 91.99% BSWM 955,752,158.00 820,532,791.60 0.00 135,219,366.40 0.00 85.85% PRRI 17,076,808.00 17,001,446.37 -73,731.61 1,630.02 0.00 99.56% BAFE 79,302,574.00 79,301,940.03 0.00 633.97 0.00 100.00% Sub-Total, CO, RFOs, SBs, 37,232,215,845.00 35,632,086,319.48 -253,691.66 1,564,440,062.87 35,435,770.99 95.70% ACPC 2,308,371,000.00 2,308,369,543.67 0.00 1,456.33 0.00 100.00% BFAR 3,496,075,118.00 3,490,498,536.44 -2,348,520.23 1,159,938.57 2,068,122.76 99.84% PhilFIDA (FIDA/CODA) 323,952,000.00 323,909,613.42 0.00 27,632.14 14,754.44 99.99% FPA 107,891,000.00 104,286,534.63 0.00 9,328.17 3,595,137.20 96.66% PCAF (NAFC/LDC) 161,284,162.00 147,680,605.59 0.00 13,603,556.41 0.00 91.57% NMIS 498,193,808.00 379,958,168.71 0.00 118,235,639.29 0.00 76.27% PCC 490,189,033.00 490,189,033.00 0.00 0.00 0.00 100.00% PhilMech 5,090,698,469.00 3,896,413,067.98 950,475.00 22,451,853.07 1,172,784,022.95 76.54% NFRDI 241,823,322.00 241,823,321.61 0.00 0.39 0.00 100.00% Sub-Total, Attached 12,718,477,912.00 11,383,128,425.05 -1,398,045.23 155,489,404.37 1,178,462,037.35 89.50% Totals 49,950,693,757.00 47,015,214,744.53 -1,651,736.89 1,719,929,467.24 1,213,897,808.34 94.12%

NCA

2021 Fiscal Report as of September 30, 2021 | 11

the Secretary

NCA Receipts - Php 37,232 billion Disbursements - Php 35,632 billion Lapsed NCAs - Php 1,564 billion Adjusted Balance - Php 35 million Utilization Rate - 95.70 % Attached Agencies: NCA Receipts - Php 12,718 billion Disbursements - Php 11,383 billion Lapsed NCAs - Php 155 million Available Balance - Php 1,178 billion Utilization Rate - 89.50 %

UTILIZATION Office of

(OSEC):

The Notice of Cash Allocation (NCA) utilization rate of the Department of Agriculture – Office of the Secretary (OSEC) is at 93.05 percent while its attached agencies are at 86.71 percent. This equates to a 92.10 percent utilization rate of the Department of Agriculture from January to September 30, 2021, corresponding to Php 45.998 billion out of Php 49.946 billion in NCAs released for the period. Operating Units of the DA may still request for the issuance of another NCA in lieu of the lapsed NCAs subject to the evaluation of the Department of Budget and Management. Cumulative

As stated in the above-mentioned monthly figures, the month of September showed the highest rate of utilization at 94.12 percent. An increase of NCAs utilization for the month of February and March, 2021, respectively, was due to the influx of NCA requests representing Prior Year’s Obligations covered by additional funds received under Bayanihan I and II Projects.

ACTUAL DISBURSEMENT VS MONTHLY DISBURSEMENT PLAN

Every year, all agencies prepare their Budget Execution Plans through the Budget Execution Documents (BEDs) 1, 2 and 3 for their proposed budgetary requirements and usually based on the National Expenditure Program (NEP). All of these BEDs must be prepared and linked with each other. Operational wise, the end result of the BED 1 and BED 2 is the BED 3 or the Monthly Disbursement Program (MDP). This MDP will then be used by the Department of Budget and Management (DBM) as the basis on the release of Notice of Cash Allocations (NCAs) for the current Budget Year. In addition, thereto, NCAs may also be released through separate NCA requests particularly for Prior Year Obligations. The NCA shall only be release by the DBM once the agency provides sufficient

2021 Fiscal Report as of September 30, 2021 | 12

Utilization Month Receipts (‘000) Disbursements (‘000) Unused (‘000) Percent January 6,091 805,414 5,285 13.22 % February 14,006 7,993 6,013 57.07 % March 21,512 16,962 4,550 78.85 % April 24,671 19,263 5,408 78.08 % May 29,937 23,139 6,798 77.29 % June 35,958 32,156 3,802 89.43 % July 41,885 35,013 6,871 83.59% August 45,349 38,400 6,949 84.68% September 49,951 47,015 2,935 94.12%

NCA

information that the requested NCAs will be utilized immediately since they will be requiring a List of Due and Demandable Obligations-Advice to Debit Account (LDDAP-ADA).

2021 Fiscal Report as of September 30, 2021 | 13

FIRST QUARTER GRAPHICAL PERFORMANCE 0 50,000 100,000 150,000 200,000 250,000 Actual Disbursement vs Monthly Disbursement Plan -(In Thousand Pesos)1st Quarter January Actual January Plan February Actual February Plan March Actual March Plan CA RF O RF O I RF O II RF O III RF O IVA RF O IVB RF O V RF O VI RF O VII RF O VIII RF O IX RF O X RF O XI RF O XII RF O XIII ATI BA FE BAI BA R BPI BS W M January Variance -65-40-40-33-63-51-43-39-40-31-53-56-66-47-37-44-60-61-96-57-60 February Variance -460-1420.00.5-2830.-32-38-6.-10-33-53-14-30-37-329.315.-15 March Variance -59-53-27-4.40.20.-2444.-12-18-210.9169-62-5.-18-8.-67-1.45.-19 -150.00% -100.00% -50.00% 0.00% 50.00% 100.00% 150.00% 200.00% Actual Disbursement vs Monthly Disbursement Plan -(In Thousand Pesos) 1st Quarter

We have come up with a table of analysis regarding the actual disbursement vis-a-vis’ the Monthly Disbursement Plan in the Office of the Secretary. As shown in the matrix, the Central office has the highest percentage variance of -95.85%, -86.24%, -98.75% percent, respectively, for the 1st quarter of 2021 or and an average of -93.61% percent. This means that the Central Office has disbursed an average of 06.39% percent of the submitted Bed 3 or the Monthly Disbursement Plan to the DBM. There were also operating units that have shown negative variance in the 1st two (2) months of the year and recover positively in the 3rd month of the 1st quarter to wit; RFO IVA – 40.93%, RFO IVB – 20.39%, RFO VI – 44.23%, RFO XI – 169.23%, BPI – 45.30%, BSWM – 19.03% AND PRRI – 9.45% (as attached, “Annex A”).

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(Graphical Illustration) 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Actual Disbursement vs Monthly Disbursement Plan -(In Thousand Pesos)2nd Quarter April Actual April Plan May Actual May Plan June Actual June Plan

SECOND QUARTER PERFORMANCE

Disbursement vs Monthly Disbursement Plan -(In Thousand Pesos) 2nd Quarter

In the 2nd quarter of 2021, the Central Office still has garnered the highest percentage of variance in the implementation of the Monthly Disbursement Plan. With an average of -93.76% percent, the office has just disbursed 06.34% of the Monthly Disbursement Plan. The following units have improved their actual disbursement performances while others had surpassed the 100% ceiling as stated in their Disbursement Plans. RFO III has shown 556.97% percent disbursement performance of 351,562 million against their MDP of Php 53.512 million for the month of June, 2021. The other positive performers were RFO V – 116.11%, RFO XII – 50.49%, RFO XIII – 64.46%, ATI – 92.66%, BAFE – 10.58%, BAI – 43.37% and PRRI – 29.86%. Ideally, the positive result of variances will result to a positive outcome and good performance of the unit. However, in the same manner those results may just send a wrong signal that we failed to overcome bottlenecks when submitting a Disbursement Plan to the Department of Budget and Management (as attached, “Annex B”).

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CA RF O RF O I RF O II RF O III RF O IVA RF O IVB RF O V RF O VI RF O VII RF O VIII RF O IX RF O X RF O XI RF O XII RF O XIII ATI BA FE BAI BA R BPI BS W M AprilVariance -67-64-41-87-38-74-471.6-52-45-30-16-56-90-52-51-54-42-11-54-62 May Variance -410051.45.-28-23-16-35-36-8.-4351.-90-59-21-3.-50-242.9-61 June Variance -28-7.-14556-8.-25116-48-62-52-51-67-4250.64.92.10.-43-18-15-55 -200.00% -100.00% 0.00% 100.00% 200.00% 300.00% 400.00% 500.00% 600.00% Actual

THIRD QUARTER PERFORMANCE (Graphical Illustration)

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0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Actual Disbursement vs Monthly Disbursement Plan -(In Thousand Pesos)3rd Quarter July Actual July Plan August Actual August Plan September Actual September Plan

Actual Disbursement vs Monthly Disbursement Plan -(In Thousand Pesos) 3rd Quarter

We are now in the 3rd Quarter of the year, but the Central Office still garnered the highest percentage variance with an average of -66.88% of their Disbursement Plan. This means that only 33.12% was paid out of the Total Disbursement Plan. This is an improvement of the First and Second Quarter performance of 06.39 and 06.34 percent, respectively. The operating units with positive results are the following; RFO II – 111.79%, RFO III – 71.05%, RFO IVA – 11.66%, RFO IVB – 38.72%, RFO V – 148.83%, RFO VI – 19.26%, RFO VII – 65.68%, RFO IX – 9.26%, RFO XI – 21.37%, BSWM –58.14%

In the ordinary course of business, these positive performances of some of the units may lead to greater realization of profits. But as a National Government Agency with the mandate responsible for the promotion of agricultural development by providing the policy framework, public investments, and support services needed for domestic and export oriented business enterprise. We should focus on delivering interventions, services or public investment in a timely manner and in accordance with a strategic plan that the over-all aims and interest is to achieve an almost perfect performance in the implementation of deliverables (as attached, “Annex C”).

2021 Fiscal Report as of September 30, 2021 | 17

CA RF O RF O I RF O II RF O III RF O IVA RF O IVB RF O V RF O VI RF O VII RF O VIII RF O IX RF O X RF O XI RF O XII RF O XIII ATI BA FE BAI BA R BPI BS W M July Variance -26-91-68-53-0.-72-90-11-76-61-9.-83-64-77-55-70-15-22-47-4.-59 August Variance -13-79153212-69-3196.-60-66-32-4539.0.9-17-69-15-8.-1221.-22-55 September Variance -1317325053.10521944052.-540.127.41.12733.139124-1228.-19-8.289 -200.00% -100.00% 0.00% 100.00% 200.00% 300.00% 400.00% 500.00%

THIRD QUARTER OF 2021 AGRICULTURE PERFORMANCE OF THE ECONOMY

According to the Joint Statement of the Duterte Administration’s Economic Managers on the Philippine Economic Performance for the 3rd Quarter of 2021 states that, on the production side, the industry sector expanded by 7.9 percent, while the services sector grew by 8.2 percent. In contrast, agriculture slightly declined by 1.7 percent. The increase in palay production, which was aided by the continued implementation of the Rice Competitiveness Enhancement Fund, was more than the value to offset damages caused by typhoons and other calamities to other agricultural crops and by the African Swine Fever to livestocks.

PROSPECTS AND RECOMMENDATIONS

These recommendations aim to provide the Management a better understanding on the importance of the proper preparation of Budget Execution Documents. As per the Department of Budget and Management (DBM) Circular Letter No. 2021 – 11 dated October 28, 2021.

The preparation of the BEDs, the following, among others, shall be strictly observed for the timely implementation of programs/projects such as but not limited to:

1. Ensure that their plans contain the projected budget requirements of programs, activities and projects that can be obligated and implemented within the period January to December of FY 2022.

2. Coordination/synchronization of activities among planning, operations, budget and accounting offices in the program/project implementation.

3. Accounting for timelines for procurement-related procedures; and Considering historical performance (absorptive capacity), seasonality (e.g., peak/slack periods) of activities and other factors that influence programming.

Moreover, facilitation of the program/project implementation including the conduct of pre-procurement activities short of award and the prompt completion of procurement timelines, all concerned Operating Units are reminded to ensure the consistency of the information reflected in the BEDs with the procurement schedules/specifications.

2021 Fiscal Report as of September 30, 2021 | 18

2020 Annual Fiscal Report

Republic of the Philippines

Department of Agriculture

Elliptical Road, Quezon City

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

2020 ANNUAL FISCAL REPORT

“Continuing the Journey to a More Peaceful and Progressive Philippines”

January 2021

Introduction

“The FY 2020 Budget is another opportunity for the Filipino people to come closer to our collective dream of a more peaceful and progressive Philippines. ” - President

Rodrigo Roa Duterte

On January 6, 2020, President Rodrigo Roa Duterte signed into law Republic Act No. 11465, the Fiscal Year (FY) 2020 General Appropriations Act (GAA), underscoring the importance of peace and progress in the process looking forward to 2020 with high hopes.

Budget Comparison (2019 vs 2020)

As the financial program that marks the second half of the Duterte Administration, the PhP4.1 trillion National Budget for Fiscal Year 2020 aimed to continue the path to a more peaceful and progressive Philippines. This is twelve percent (12%) higher than the FY 2019 National Budget.

Budget Dimensions by Expense Class

MOOE - Maintenance and Other OPERATING Expenses

PS = 5,312,830,000; MOOE = 30,460,396,000; FINEX = 1,365,000; CO=28,901,814,000. inclusive of automatic appropriations

2020 Annual Fiscal Report | 2

The Department of Agriculture ranked 8th in the Highest Agency-Specific Budget Allocations.

Notable Events in 2020

To better respond to the Coronavirus Disease 2019 (COVID-19) crisis, the Congress, through Republic Act No. 11469 or otherwise known as the “Bayanihan to Heal as One Act”, granted President Rodrigo Roa Duterte the power to adopt emergency measures such as: providing subsidies to the most vulnerable and most affected families; ensuring the protection of public health workers; fast and efficient procurement of goods e.g., personal protective equipment; and the reallocation and realignment from savings to other items in the 2020 Budget.

The National Budget Circular No. 580, issued on April 22, 2020, provided for the adoption of economy measures in the government, citing Section 4 (v) of the “Bayanihan To Heal as One Act” which directed the discontinuance of appropriated programs, activities, and projects (PAPs) of any agency of the Executive Department, in the FYs 2019 and 2020 GAAs, whether released or unreleased, including unobligated allotments of covered entities as of March 31, 2020, to augment the allocation for any item directly related to support operations and response measures

As of June 9, 2020, cash allocations amounting to PhP 354.46 billion were released. These were sourced from discontinued PAPs under the 2020 and 2019 Budgets. The excess revenue from actual dividend collections of the Bureau of the Treasury has also been tapped for the COVID-19 response.

PhP 8.5 billion was released to the Department of Agriculture to cover the funding requirements of the Rice Resiliency Project (RRP) under the Ahon Lahat, Pagkaing Sapat (ALPAS) Kontra COVID19 Program. The RRP aimed to ensure the availability of rice supply through increased local rice production during the 2020 wet season. Around 3 million rice farmers nationwide were expected to benefit from this program.

2020 GAA PhP 64.7 B 2019 GAA PhP 49.7 B

Department of Agriculture

2020 Annual Fiscal Report | 3

PhP 8.5 Billion

COVID-RELATED RELEASES

*Cash allocations, net of withholding tax, as of June 9, 2020

“We Recover As One”

In the pursuit of providing response and recovery interventions and providing mechanisms to accelerate the recovery and bolster the resiliency of the Philippine Economy, the congress enacted Republic Act No. 11494 or the “Bayanihan To Recover As One Act” (Bayanihan Act II) on September 11, 2020.

As of December 19, 2020, the Department of Budget and Management (DBM), pursuant to Republic Act No. 11494 or the “Bayanihan to Recover as One Act”, has released a total of PhP 107.96 billion to various government agencies for their respective COVID-19 related response programs. With this, PhP 103.24 billion out of the PhP 140.0 billion allocation and an additional PhP 4.7 billion charged from regular funds were released to the different departments and agencies.

The Department of Agriculture received PhP 23.29 billion for the Agriculture Stimulus Package to support agri-fishery enterprises, farmers and fisherfolk registered under RSBSA and agricultural cooperatives through cash or loan interest rate subsidies and the Plant, Plant, Plant Program, among others.

PhP

23,293,650,000.00

COVID-RELATED RELEASES

As of December 2020

Towards the end of the year, President Rodrigo R. Duterte authorized the grant of a one-time Service Recognition Incentive (SRI) for Fiscal Year (FY) 2020 at a uniform amount not exceeding PhP 10,000 for each qualified government employee. Budget Circular No. 2020-6 was issued on December 22, 2020 containing the guidelines for the grant of the SRI for government employees for FY 2020. The SRI was granted to recognize and further encourage the unwavering commitment and dedication of civil servants to providing efficient and effective public service. It was also meant to reward them for their collective and unceasing participation and invaluable contribution to the government's continuing efforts towards the establishment of streamlined government processes, especially amid the COVID-19 pandemic.

2020 Annual Fiscal Report | 4

Contract of service (COS) and Job Order (JO) government employees also received up to PhP 3,000 in gratuity pay in recognition of their invaluable service, especially those part of the emergency COVID-19 response efforts. On December 28, 2020, President Duterte signed Administrative Order No. 38 allowing one-time gratuity pay for workers who have rendered at least four months of satisfactory performance of services as of December 15, and whose contracts are still effective as of the same date. The gratuity pay was sourced from the operating budget of the government offices concerned.

Budget1 Utilization UTILIZATION AS OF DECEMBER 31, 2020

This table shows the budget utilization of the Department as of December 31, 2020., net of corporation. It shows that 91.85% or 77.7 Billion has been utilized.

For Current Appropriations, the Department received 82.4 Billion which includes the Regular Agency Budget, Bayanihan 1 and Bayanihan 2.

For the Continuing Appropriations, only 80.22% of the Office of the Secretary's Fund was utilized, part of the reason may be due to the disapproval for the request for augmentation for the priority projects of Secretary like CHARMP.

PARTICULAR Amount in Thousand Pesos ALLOTMENT RECEIVED OBLIGATIONS INCURRED BALANCES % -1 -2 -3 (4) = (2-3) (5) = (3/2) CURRENT FUNDS 82,447,635 75,970,552 6,477,083 92.14% Office of the Secretary 58,776,228 54,623,638 4,152,590 92.93% Attached Agencies 23,671,407 21,346,914 2,324,493 90.18% CONTINUING FUNDS 2,201,318 1,783,595 417,723 81.02% Office of the Secretary 2,027,201 1,626,130 401,071 80.22% Attached Agencies 174,117 157,465 16,652 90.44% TOTAL 84,648,953 77,754,147 6,894,806 91.85%

2020 Annual Fiscal Report | 5

1 DA Funds are composed mainly of Current and Continuing Appropriations released and available for use to DA-OSEC Offices and the Attached Agencies. DA-OSEC consists of the Central Office, the Regional Field Units and Staff Bureaus, e.g. ATI, BAI, BAR, BPI, BSWM, BAFE, PRRI. BAFS is a Staff Bureau but its financial resources are managed by the Central Office. Attached Agencies on the other hand, consist of the ACPC, BFAR, NFRDI, PCC, PCAF, PhilMech, NMIS, PhilFIDA, and FPA.

Out of the PhP 84.649 billion allotment to the Department of Agriculture, the Office of the Secretary received PhP 60.803 billion, constituting 72 percent, of the total allotment. The obligations incurred by the office amounted to 92.51 percent or PhP 56.250 billion. On the other hand, its attached agencies received 28 percent of the allotment with PhP 23.846 billion. Of this, PhP 21.504 billion was obligated.

Office Allotment Received Obligations Incurred Unexpended Balances Utilization Rate Office of the Secretary 60,803,429.00 56,249,768.00 4,553,661.00 92.51% Central Office 20,581,322.00 19,630,451.00 950,871.00 95.38% Bureaus 6,651,878.00 6,065,582.00 586,296.00 91.19% Regional Field Office 33,570,229.00 30,553,735.00 3,016,494.00 91.01% Agricultural Credit Policy Council 5,118,199.00 5,115,790.00 2,409.00 99.95% Bureau of Fisheries and Aquatic Resources 5,913,648.00 5,580,002.00 333,646.00 94.36% Fertilizer and Pesticide Authority 160,388.00 156,638.00 3,750.00 97.66% National Fisheries Research and Development Institute 275,502.00 275,496.00 6.00 100.00% National Meat Inspection Service 769,781.00 655,778.00 114,003.00 85.19% Philippine Carabao Center 457,545.00 451,416.00 6,129.00 98.66% Philippine Center for Postharvest Development and Mechanization 10,578,089.00 8,729,405.00 1,848,684.00 82.52% Philippine Council for Agriculture and Fisheries 155,758.00 148,603.00 7,155.00 95.41% Philippine Fiber Industry Development Authority 416,614.00 391,252.00 25,362.00 93.91% TOTAL 84,648,953.00 77,754,148.00 6,894,805.00 91.85%

(IN THOUSAND PESOS)

2020 Annual Fiscal Report | 6

# Office of the Secretary

# Agricultural Credit Policy Council

# Bureau of Fisheries and Aquatic Resources

# Fertilizer and Pesticide Authority

# National Fisheries Research and Development Institute

# National Meat Inspection Service

# Philippine Carabao Center

# Philippine Center for Post-Harvest Development and Mechanization

4 Philippine Council for Agriculture and Fisheries

# Philippine Fiber Industry Development Authority

Significant increases in the allotment received since September are due to the releases for the implementation of the “Bayanihan to Recover as One Act”. This allotment included PhP 17.8 Billion which was released by the Department of Budget and Management (DBM) in parts of PhP 12 Billion in October and PhP 5.8 Billion in November of the same fiscal year. Included in the balances for the prior year budget are the amount requested from the DBM for the modification of the allotment intended for the following projects: expansion of the agricultural livelihood program in support of the province of Quirino; rice program for the province of Quezon; Bantay-ASF sa Barangay; and scaling-up of the second cordillera highlands agricultural resource management project.

For the month of December, the department received an additional allotment of PhP 321 million allocated for sustainable agriculture and improved farming systems in upland communities for indigenous people, the Kabuhayan at Kaunlaran ng Kababayang Katutubo (4Ks) Program, the Bayanihan II, and mainstreaming of climate resilient agriculture in regional programs/projects. Thus, the unreleased appropriations of the department totaled to PhP 3.8 billion as of December 10, 2020.

The major OSEC programs consist of the Rice Program, Livestock Program, Corn Program, HVCC Program, Organic Agri Program, SAAD Program, Halal Program, PRDP- Original Loan, PRDPExpansion Loan, Quick Response Fund, Calamity Fund, and ALPaS Program. Out of these programs, the Rice Program incurred the most obligations in relation to its corresponding allotment, at 90.48 percent.

Five funds compose the current budget for 2020: the Regular Agency Fund (which includes New Appropriation, Automatic Appropriations, and Special Purpose Fund net of Bayanihan I), the Agricultural Competitiveness Enhancement Fund, the Rice Competitiveness Enhancement Fund, and the Bayanihan I and II.

2020 Annual Fiscal Report | 7

The operating units committed to obligate PhP 16 billion at the end of the year at a projected 94.49 percent utilization rate. In actuality, the Department of Agriculture was able to obligate 91.85 percent of the allotment received, amounting to PhP 77.75 billion. Despite falling short by almost three percent, this marks the second highest utilization of the department's budget in the past ten years.

2020 Annual Fiscal Report | 8

Disbursement

From January to December 2020, the Office of the Secretary disbursed PhP 37.75 billion while the 9 attached agencies of the Department of Agriculture disbursed PhP 12.63 billion. The rate of disbursements over the obligations of the Department is 64.89 percent

The Philippine Center for Postharvest Development and Mechanization (PhilMech) has paid only 12.65 percent of its obligations. The Agricultural Credit Policy Council (ACPC), Fertilizer and Pesticide Authority (FPA), and National Fisheries Research and Development Institute (NFRDI) exhibited aggressive spending activities at more than 95 percent to 100 percent of their corresponding obligated allotments.

Higher disbursements of ACPC against its obligations were due to a cash advance refund and a stale check of a prior year (2019) obligation that was obligated and charged to FY 2020, resulting in an overpayment. A Notice of Obligation Request and Status Adjustment (NORSA) was issued to cancel the obligation after the payment covering the replacement check was made.

2020 Annual Fiscal Report | 9

NCA Utilization

NCA Receipts

The Notice of Cash Allocation (NCA) utilization rate of the Department of Agriculture - Office of the Secretary (OSEC) is at 89.24 percent while its attached agencies are at 68.22 percent. This equates to an 83.35 percent utilization rate of the Department of Agriculture from January to December 2020, corresponding to PhP 58.087 billion out of PhP 69.693 billion in NCAs released for the period.

Quarterly NCA Utilization

Looking at the quarterly figures, the first quarter showed the highest rate of utilization at 98.39 percent. The low NCA utilization in the second quarter is mainly due to the unused cash allocation of PhP 8.5 Billion for the Rice Resiliency Project (RRP) under the

30,000,000.00 25,841,506.00

2020 Annual Fiscal Report | 10

Ahon Lahat, Pagkaing Sapat (ALPAS) Kontra COVID-19 Program. Since then, PhP 5.25 billion (61.77 percent) was disbursed to cover the program; the balance of PhP 3.249 billion has lapsed.

For Quarter 4, NCAs allocated for PhilMech's Mechanization Program under RCEF contributed a large chunk of the PhP 4.893 billion unused NCAs. This amount excludes the Quarter 3 allocation of PhP 1.193 billion carried forward until the end of 2020.

Cumulative NCA Utilization

Steep increases in NCA levels in April, July, and October of PhP 18.08 billion, PhP 11.55 billion, and PhP 21.20 billion, respectively, are the results of the frontloading policy of the government. For Q2, about PhP 12.1 billion cash allocations for May (PhP 5.7 billion) and June (PhP 6.3 billion) were credited to the accounts of Operating Units (OU) in April by their respective Authorized Government Depository Banks (AGDBs) per instruction of DBM. In Q3, about PhP 6.8 billion cash allocations for August (PhP 3.7 billion) and September (PhP 3.1 billion) were credited to OU accounts in July by their respective AGDBs. For Q4, about PhP 16.47 billion cash allocations for November (PhP 11.28 billion) and December (PhP 5.18 billion) were credited to OU accounts in October by their respective AGDBs, inclusive of the NCA dated October 28-29, 2020 covering the Bayanihan II cash requirements amounting to PhP 8.3 billion (PhP 7.16 billion for November and PhP 1.14 Billion for December).

Disbursements

• Receipts £

Unused

2020 Annual Fiscal Report | 11

NCA Utilization of Attached Agencies

Among the Department of Agriculture's attached agencies, all were able to utilize at least 95 percent to 100 percent of NCAs received, except for three: the Philippine Center for Postharvest Development and Mechanization (PhilMech), the National Meat Inspection Service (NMIS) and the Fertilizer and Pesticide Authority (FPA), which utilized 15.90 percent, 68.23 percent and 84.71 percent, respectively.

The performance of the Department of Agriculture is slightly below the average NCA utilization rate of all government agencies of 95 percent.

Status of Special NCA Releases (Cash)

Status of Special NCA Releases

All the unused NCAs have lapsed. Thus, none of the releases are available for the next period. Total disbursements related to the Rice Resiliency Project amounted to PhP 4.9 Billion. The allocation for Q1 for the cash requirement of the Rice Farmer Financial

Disbursements

B Unused

12,500,000.00 | Unused | Disbursements -9,930,877.0010,000,000.00 7,500,000.00 5,000,000.00 2,500,000.00 0.00 802,491.00 8,500,000.00

2020 Annual Fiscal Report | 12

Assistance (RFFA) project in 2019 was PhP 2.4 billion, which was also obligated in the same year

The Financial Subsidy for Rice Farmers (FSRF) in 2020 amounting to PhP 43.7 million was not successfully transferred due to outstanding unliquidated fund transfers of the Land Bank of the Philippines (LBP) and subsequently lapsed. Total disbursements related to the Quick Response Fund (QRF) amounted to PhP 592 million (85 percent) while PhP 361 million and PhP 368 million lapsed in Q2 and Q3, respectively. The lapsed amount for the Agricultural Competitiveness Enhancement Fund (ACEF) and Trade Remedies: PhP 51.8 million (Q1), PhP 65.3 million (Q2), and PhP 63.8 million (Q4) can be attributed to the delayed perfection of the Memorandum of Agreement (MOA) between DA and CHED and various SUCs. A huge chunk of the Php 5.8 billion unused NCAs under the Rice Competitiveness Enhancement Fund (RCEF) can be attributed to PhilMech's Mechanization Program.

For Bayanihan II, the total receipts were allocated as follows: PhP 2.5 billion NCAs for Agricultural Credit and Financing Programs (ACPC), PhP 299 million for the National Meat Inspection Service (NMIS), PhP 5.5 billion for the Office of the Secretary (OSEC), and the rest for other agencies. These NCAs were dated October 28-29, 2020. The lapsed amount of PhP 802.49 million is attributed largely to the PhP 600 million erroneous NCA releases by DBM to BPI instead of BAR and the PhP 200 million NMIS- led projects. Out of the PhP 9.93 billion NCAs for Bayanihan II, 82 percent, or PhP 8.16 billion were utilized for obligations directly related to the purpose of the NCA releases.

Bayanihan II

2020 Annual Fiscal Report | 13

Fiscal Outlook

The outlook for the Philippine economy, as well as the rest of the world, has been drastically changed by the COVID-19 pandemic. As the country progresses towards the post-pandemic period, it acknowledges that it is foremost a public health crisis - there can be no true economic recovery unless the health crisis is resolved or contained and business confidence returns.

The recovery will be sustained by the government's response measures, supported by the “Bayanihan to Recover as One Act”, the BSP's accommodative monetary policy stance, and the passage of the remaining economic reform agenda. On the supply side, the effective implementation of the government's Plant, Plant, Plant Program could support greater productivity in agriculture to bolster food security.

The passage of the FY 2021 Budget in Congress aims to strengthen its strategies and programs for health, social protection, and economic recovery to better move towards a pandemic-free period.

Releases relevant to RA 11494 were made on a per project basis starting as early as October 28, 2020 towards the end of the fiscal year 2020 knowing that these funds will be reverted back to the national government after D ecember 31, 2020. Since these funds were released only in the latter portion of the 4th quarter, the timing of obligations and payments followed through.

So for DA-OSEC, despite the situation and the challenges it imposes on mobility, we still managed to pay 67.12% of the total obligations made as of December 31, 2020.

Current Appropriations for FY 2020, as described under General Provision No. 60, was enacted to be implemented following the Cash Budgeting System, while the Continuing Appropriations as a GAA for FY 2019, made no mention in its General Provisions that the appropriation is CashBased.

Under a cash-based budgeting system, appropriations and allotments are available only for release and obligations within the fiscal year while completion of cons truction/delivery of goods and services, inspections, acceptance and payments will be made within the extended payment period of three (3) months.

However, for FY 2020 GAA, the extended payment period for Capital Outlay (Infrastructure) for another twelve (12) months, while other Capital Outlays and MOOEs is extended for another six (6) months.

Funds provided under Bayanihan Act I, as component of General Appropriations Act of 2020, were extended for obligations and disbursements until December 31, 2021 as per Republic Act No. 11520 while funds provided under Bayanihan Act II were extended for obligations and disbursements until June 30, 2021 as per Republic Act No. 11519.

Almost half of the P11 Billion additional disbursements is contributed by Central Office

2020 Annual Fiscal Report | 14

alone, thanks to the P5 Billion Farm-to-Market Connectivity Project under the Bayanihan II, which, its disbursements have materialized in early February catapulting the disbursement to obligations rate to almost 100% from its 73% performance as of December 31, 2020.

Regional Offices contributed the other half of the increased disbursements but remains to perform at the average of below 90% while Staff Bureaus, which by historical data always perform better on the Obligations to allotment and disbursement to obligations categories, were not expected at this very low average, performing only at 72% and 88% average disbursement to obligation utilization rate for the cut off dates December 31, 2020 and March 31, 2021, respectively.

Attached agencies have a very low improvement in disbursements within the period of three months. Large chunk of the low disbursement rating as of December 31, 2020 up to this date though is due to the high amount of unpaid obligations under the Mechanization component of RCEF lodged under the PhilMech.

Consistent with the Cash- Based Budgeting System and the existing policy of the DBM as a government resource management agency, I would to like emphasize that when DA will be evaluated by DBM based on this performance ratings, subject of course to several conditions and exclusions, these percentages represent DA's absorptive capacity in implementing its funds and would only mean decreasing the resources to be poured to the agriculture sector.

2020 Annual Fiscal Report | 15

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

A qualified opinion was rendered on the Financial Statements due to various accounting errors/omissions amounting to ₱2,087.408 million, which exceeded the materiality level of ₱ 360.581 million and accounting deficiencies such as absence of subsidiary ledgers and lack of complete accounting records on 379 accounts with an aggregate amount of ₱32,362.002 million which prevented alternative audit procedures to be undertaken to obtain sufficient and appropriate evidence relating to various assertions on the accounts.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

We recommended and Management agreed to require the Chief Accountant to effect the necessary adjustments on the errors/omissions and corrections on the deficiencies observed with the corresponding supporting documents.

an analysis of accounts and adjustments of errors/omissions

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

CAR

To ensure that data and other supporting documents are carefully analyzed for proper recognition and reconciliation of accounts.

Accounting Section 01/08/2021 31/12/2021 Partially Implemented On-going retrieval of relevant supporting documents for any adjustments and for proper reclassification to appropriate accounts.

A total of 34 million was adjusted out of P 62.303 million

Accounting errors, and P 26.304 million are awaiting documents under deficiencies, some items have no adjustment to their nature.

Out of P457.096 million, a total of P9.390 million was adjusted as of July 31, 2021 and P447.705 million is awaiting for documents. Concerned offices are currently reviewing and harmonizing their procedures to include the proper submission of documents for timely recognition of appropriate accounts in our books.

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

Ref.No. Date Observations and Recommendations Action Plan AGENCY ACTION PLAN Responsible Office Target Implementation From To Reason of Partial/ Delay/NonImplementation Action Taken Management Comments Remarks

1 CAAR 2020 p. 5 -13 DA-CO Management

Accounting Division 01/07/2021 31/12/2021 Partially Implemented Due to numerous items

will conduct

and documentations needed for an account to be adjusted and recorded

2 CAAR 2020 p. 5-13

1 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Unadjusted

accounting

errors/omissions and uncorrected accounting deficiencies

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

Summary Report generated on at

Nov 2021 5:19:21 PM

Management made a 100% or P 34.410 million adjustments on the omissions/errors to correct the reported balances of the affected accounts in the Financial Statements through various Journal Entry Vouchers (JEV) with details attached as Annex “A” in our AOM response dated June 2, 2021.

Implemented Management already recorded 100% or P 22.243 million adjustments for errors/omissions, and 100% or P 10.317 million for deficiencies.

Audit Observation/s Audit Recommendation/s Implementation Status No.

3 CAAR 2020 p. 5-13 RFO I Accounting Section 01/05/2021 31/12/2021 Fully Implemented

4 CAAR 2020 p. 5-13 RFO II Accounting Section 01/11/2020 31/12/2020 Fully

2 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

6 CAAR 2020 p.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

and effect the necessary adjustments on the cited

Implemented Management made adjusting entries with a total of P1.404 million out of P 48.382 million for the Due from NGAs, Due from Operating Units, Guaranty /Security Deposits Payable, Due from NGAs, LGUs, NGOs/POs.

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

RFO V

Management will thoroughly examine and verify the accounts to determine necessary adjustments

Accounting Section 01/01/2021 31/12/2021 Partially Implemented Management made P 182.416 million adjustments for errors/omissions as of July 31, 2021 and P 16.885 million for deficiencies and to support the necessary adjustments an investigation is being done.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

5 CAAR 2020 p. 5-13 RFO III To conduct reconciliation

AOMs Accounting Section 01/04/2021 31/12/2021 Partially

5-13

3 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

8 CAAR 2020 p. 5-13

1. Unadjusted accounting errors/omissions

and uncorrected accounting deficiencies

To reconcile the negative balances to correct the deficiencies noted.

Due to the difficulty of retrieving the source documents for basis of reconciliation

A total of P 3.135 million are still awaiting for documents under accounting deficiencies, and an ongoing retrieval of documents is being done by management.

RFO IX

To effect the adjusting entries in the books

Accounting Section 01/04/2021 Fully Implemented Management made 100% or P 94.388 million adjustments on its error/omissions.

Audit Observation/s Audit Recommendation/s Implementation Status No.

7 CAAR 2020 p. 5-13 RFO VII

Accounting Unit 01/01/2021 31/12/2021

Partially Implemented

4 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

RFO X To adhere to the recommendation provided by the finding, by continuing

Accounting Section 01/03/2021 Partially Implemented Management made adjustments of P 104.187 million for errors/omissions and P 1.537 billion are awaiting documents for deficiencies. Demand letters have also been coursed through each Province's Supervising Auditors.

RFO XI Partially Implemented Management already recorded adjustments of P28,706,272.39

Audit Observation/s Audit Recommendation/s Implementation Status No.

2020 p. 5-13

9 CAAR

10 CAAR 2020

5-13

5 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

2020 p.

1. Unadjusted accounting errors/omissions and uncorrected accounting deficiencies

Management made 100% or 3,143.122 million adjustments for deficiencies, and P 1.186 million for errors/omissions.

6 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

11 CAAR 2020 p. 5-13 RFO XII Accounting Section 01/01/2021 30/04/2021

Fully Implemented

CAAR

BAR For immediate compliance Accounting Unit 31/12/2021 Ongoing Implementation The Accounting Unit has already partially made the necessary adjustments of P 1.250 million on the errors/omissions to correct the balances of the affected accounts , and P 1.725 million for deficiencies. This shall be a continuous effort and such corrections shall be forwarded to the Audit Team.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Overall, the agency’s fund utilization/ obligation of ₱ 56,249.768 million is 92.51 percent compared to its allotment of ₱60,803.430 million with unobligated amount of ₱4,553.662 million due to the delays in the procurement process and discontinuance of implemented projects to address the emergency situation brought by COVID-19 pandemic, among others. Moreover, it registered a utilization rate of 97.86 percent for Provision of Agricultural Equipment and Facilities under Rice Program wherein low utilization of funds was observed in RFO V.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

A. Ensure that appropriated funds are fully utilized the soonest possible time for the agency’s programs, projects and activities to hasten socioeconomic development and benefits to intended stakeholders/ beneficiaries; (ii) provide a catch up plan to maximize the available allotment to avoid reversion of the unutilized amount to the Unappropriated Surplus of the General Fund; and (iii) abide by the target timelines for future projects to provide the timely developmental benefits of the projects;

Consistent monitoring of procurement activities and coordination with the LGUs with ongoing sub-projects

01/07/2021 31/12/2021 On-going Implementation Due to numerous activities and the priority in the approval and effectivity of Second Additional Financing

Management will ensure that appropriated funds will be fully utilized by closely monitoring the Procurement activities in the NPCO, PSO, RPCO and LGUs and provide assistance so as not to delay the awarding of contracts for goods and services. Monitoring of sub projects will be given more attention to ensure sub project completion by providing solutions to the challenges in the implementation

BAFE

14 CAAR 2020 p. 14-18

2. Fund Utilization/Obligation

B. Ensure that funds allocated to the agency are utilized based on plans and targets to maximize utilization of funds;

The management will conduct a quarterly assessment on the actual accomplishment versus targets based on Budget Execution Documents to ensure that what's committed was executed and any deviation will be addressed accordingly.

All Division 01/01/2021 31/12/2021 On-going Implementation Due to COVID 19 quarantine restrictions cause delay in the conduct of activities.

Management conducted the 1st quarter assessment for FY 2021 allotment and a catch-up plan was laid down for programs that were not implemented per planned for the quarter.

Audit Observation/s Audit Recommendation/s Implementation Status No.

2. Fund Utilization/Obligation

13 CAAR 2020 p. 14-18 PRDP

PRDP

7 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

2. Fund Utilization/Obligation

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO V

B. Ensure that funds allocated to the agency are utilized based on plans and targets to maximize utilization of funds;

The management will direct the responsible offices to fast track implementation of the projects.

Rice Program, RAED, Accounting Section, and Budget Section

01/01/2021 30/06/2021 Partial Implementation Due to deducted retentions. Management disbursed a total of 34,462,513.20 or 98.96% out of P34,825,000.00 and 362,486.80 were undisbursed as of June 30, 2021. Due to deducted retention and shall only be released 1 year after the acceptance of the project.

2. Fund Utilization/Obligation

C. Continue the monitoring phase of the Program and conduct periodic inspection/ validation on the operational status of cooperatives/associations/ beneficiaries including implementing agencies to determine whether the support services and farm equipment extended are used for purpose of ensuring the maximum utilization of extension services/ facilities for the attainment of the identified project objective;

31/12/2021 On-going Implementation Management will continue the monitoring of various programs and projects by conducting periodic inspection and validation to ensure the purpose and objective of the programs and projects are attained.

Audit Observation/s Audit Recommendation/s Implementation Status No.

15 CAAR 2020 p. 14-18

01/01/2021

16 CAAR 2020 p. 14-18 RFO III Banner Programs, PMED

8 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

2. Fund Utilization/Obligation

18 CAAR 2020 p. 14-18

Fund Utilization/Obligation

Overall, the agency’s fund utilization/ obligation of ₱ 56,249.768 million is 92.51 percent compared to its allotment of ₱60,803.430 million with unobligated amount of ₱4,553.662 million due to the delays in the procurement process and discontinuance of implemented projects to address the emergency situation brought by COVID -19 pandemic, among others. Moreover, it registered a utilization rate of 97.86 percent for Provision of Agricultural Equipment and Facilities under Rice Program wherein low utilization of funds was observed in RFO V.

RFO VII

The management will require the full time delivery unit to strictly monitor the physical and financial targets of all implementing units.

FDU and all implementing units

01/01/2021 31/12/2021 Due COVID 19 restrictions, implemented by LGU, Project implementation was greatly affected

Management direct implementing units to fast track the timely implementation of the projects

E. As much as practicable, (i) fast track the implementation and completion of programs, projects and activities already funded; and (ii) identify, prioritize and formulate a comprehensive plan/program that would improve and normalize as quickly as possible the situation and living conditions of the Filipino people affected by the COVID-19 pandemic; and

RFO XI Programs/Marie Ann Constantino Not yet Implemented Management will adapt to this recommendation

9 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

D. To strategize the procurement process and ensure that all procurement activities are within the time frame to implement the programs and activities; CAAR 2020 p. 14-18

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

2. Fund Utilization/Obligation

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

3. Cash and utilization/disbursements

Of the cash allocation of ₱ 59,056.201 million received during the year, 83.39 percent or ₱ 49,249.663 million was utilized/disbursed, and the balance of ₱9,806.538 million or 16.61 percent was reverted to the National Treasury for the lapsed NCA attributable to delayed delivery of goods, delayed submission of disbursement vouchers (DVs) for payment, and non-implementation of some projects and activities due to the constraints of the COVID -19 pandemic, among others. Also, it registered cash utilization rate of 83.92 percent for Provision of Agricultural Equipment and Facilities under Rice Program wherein deficiencies and inconsistencies in the disbursements were observed in RFO I.

F. To communicate with the Central Office regarding the unobligated allotment due to the late downloading of funds and facilitate the obligations in the first quarter of CY 2021.

A. Plan and strategize to ensure timely implementation of programs and projects especially during this time of pandemic in order to provide the benefits and services that are very much needed by various beneficiaries;

On-going Implementation Lapsing NCA was incurred primarily due to two (2) reasons: (1) failure to execute payment for the bidded lots because majority of the deliveries were made beyond the 2nd quarter of 2020; and (2) due to a series of failures of bidding despite various modes of procurement (e.g EmergencyNegotiated and Competitive Bidding) for the remaining lots of the P 5.6B fertilizer project lodged at DA-Central Office. The consolidated procurement of fertilizers was conducted due to the varying prices of fertilizer across the country.

DA requested the reissuance of NCA and settled partial payments for the bidded lots, amounting to P 1.73B before December 31, 2020. The balance of P 2.4M was fully settled in Feb. 2021. For the remaining balance amounting to P 1.43B, the DA-CO issued Advice Sub-Allotment (ASA) to various RFOs (I,II,III,IV-A, IV-B, VI,VII, IX,X and XII) to support the implementation of Fertilizer Voucher System under the Ahon Lahat Pagkaing Sapat Kontra sa COVID-19 (ALPAS) - RRP in partnership with DBP. The DA-DBP partnership (Agreement/Contract No. 11262020-97) was executed 09 November 2020 and started implementation in the dry season 2020-2021.

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR 2020 p. 14-18

20 CAAR 2020 p. 18-22 DA-CO

prepare

All programs 01/07/2021

Management will

a catch-up plan

31/12/2021

10 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

B. Ensure that disbursements are in accordance with government budgeting; and

(ii) direct the National Deputy Project Director to ensure that the appropriated funds for the agency’s programs, projects and activities are fully utilized the soonest possible time/ within the budget year to hasten socioeconomic development and benefits to the intended stakeholders/beneficiaries and to avoid reversion of unutilized funds;

PRDP NPCO and PSOs were given instructions to ensure that appropriated funds will be fully utilized by their respective clusters.

PRDP 01/07/2021 31/07/2021 On-going Implementation Due to the changing restrictions in the community quarantine of the 1st to 3rd quarter of this year.

Management will ensure that disbursements are in accordance with government budgeting, and funds appropriated during the year will be fully utilized. Management will closely monitor the Procurement activities in the NPCO, PSO, RPCO and LGUs to provide assistance, and to closely monitor the sub projects.

3. Cash and utilization/disbursements

C. Ensure that funds requested from the DBM are maximized and fully utilized to avoid the lapsing of NCAs;

BAFE

The Management will review its Monthly Disbursement Program and revisit the Annual Procurement Plan for Programs/Projects/Activities (PPAs) that are on the pipeline for appropriate action. Also, compute the cash requirements regularly to implement and monitor accordingly.

All Division 01/01/2021 31/03/2021 Fully Implemented Since Notice of Cash Allocation Issued is a common fund, current obligations were prioritized for payment and the balance was used to pay to the payees/suppliers of prior years payable of the Bureau.

Audit Observation/s Audit Recommendation/s Implementation Status No.

3. Cash and utilization/disbursements

21 CAAR 2020 p. 18-22

22 CAAR 2020 p. 18-22

11 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

18-22

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

3. Cash and utilization/disbursements

FOD – Rice Banner Program 01/05/2021 31/12/2021 On-going Implementation Management has partially submitted the lacking documents and explanations on July 7, 2021 to support the deficiencies noted in AOM.

24 CAAR 2020 p. 18-22

3. Cash and utilization/disbursements

E. Closely coordinate with FAs, LGUs, NGOs on the submission of required documents and constant follow ups shall be made to ensure that programs/ activities/projects are delivered and implemented timely;

RFO VII

Closely coordinate with the LGUs/NGOs on the compliance of the required documents for the implementation of the project

Implementing Units 01/01/2021 31/12/2021 On-going Implementation Delay in compliance of required documents was due to COVID restrictions implemented by LGUs.

Management fast track the compliance of the required documents to LGUs/NGOs.

12 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

D. Submit the deficiencies and explain the inconsistencies noted in the disbursements under the Rice Banner Program; CAAR 2020 p.

RFO Management will require the responsible unit to submit the deficiencies and explain the inconsistencies noted in the disbursements under the Rice Banner Program.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

3. Cash and utilization/disbursements

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

F. Require all end users to immediately submit the DVs with complete supporting documents to the Accounting Section to facilitate its payment and to avoid the reversion of fund; and

VII Management will follow up the implementing units for the timely submission of vouchers per BED 3

On-going Implementation Due to difficulty in the retrieval of supporting documents particularly in the LGUs, and COVID restrictions implemented by LGUs

Management submits the vouchers with complete supporting documents to the Accounting Section for processing of payment.

26 CAAR 2020 p. 18-22

3. Cash and utilization/disbursements

F. Require all end users to immediately submit the DVs with complete supporting documents to the Accounting Section to facilitate its payment and to avoid the reversion of fund; and

RFO XII

To conduct regular management meetings with focal persons to monitor the status of each procurement as well as the processing of documents. Also the obligation and NCA status.

Focal persons 01/01/2021 31/12/2021 Partial Implementation Management conducted regular meetings with focal persons to monitor the status, as well as the processing of payment of each project. As of June 2021, total cash returned amounted to Php 329.76.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

25 CAAR 2020 p. 18-22

Implementing Units 01/01/2021 31/12/2021

RFO

13 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

3. Cash and utilization/disbursements

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

Eleven DA offices reported no dormant cash, unauthorized accounts, unnecessary special and trust funds and related accounts for reversion as of year-end, in conformity with Permanent Committee Joint Circular (JC) No. 42012, dated September 11, 2012, implementing Executive Order (EO) No. 431, dated May 30, 2005. However, nine DA offices did not deposit to the National Treasury dormant cash, unnecessary funds/ unauthorized accounts and other receipts/revenues amounting to ₱87.908 million as of year-end.

G. Ensure that their planned projects/ programs/activities are implemented in accordance with budgetary schedules and funding, and establish realistic targets that are attainable in the field to ensure utilization of cash resources.

RFO XI FOD/PMED Not yet Implemented Management will adapt this Recommendation.

A. Deposit dormant cash amounting to ₱39.948 million, balances of unnecessary/unauthorized accounts amounting to ₱ 2.301 million, and receipts/revenues amounting to ₱7.474 million, respectively, to the National Treasury; and

Fully

Management

Audit Observation/s Audit Recommendation/s Implementation Status No.

27 CAAR 2020 p. 18-22

28 CAAR 2020 p. 22-24 DA-CO Accounting Division 01/01/2021 30/06/2021

accounts to the Bureau of Treasury.

Implemented

has already remitted the balances

the affected bank

14 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

30 CAAR 2020 p. 22-24

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

RFO VII

To reconcile balances of all trust fund accounts to ensure accurate reporting before depositing it to National Treasury

Partially Implemented Due to some errors noted in the previous years, some accounts were still unreconciled

Management is doing an ongoing reconciliation to correct errors identified before depositing to the National Treasury.

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

RFO X

To prepare and submit reports required pursuant to the COA Circular.

Accounting Section 01/03/2021 Partially Implemented Compliance with the request for write-off is difficult since documents relative to these items are no longer available.

Management sent letters to the COA to clarify certain matters in the AOM.

Audit Observation/s Audit Recommendation/s Implementation Status No.

29 CAAR 2020 p. 22-24

Accounting Section 01/01/2021 31/12/2021

15 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

RFO XII

To conduct a thorough review and to locate the documents related to the dormant cash balance, and to send confirmation letters to different local banks if the same balance exists in their records.

Cash Unit / Accounting Section

01/01/2021 Partially Implemented Due to no paper or record trail left by the previous bookkeepers,this resulted in difficulty in tracing the balance of the dormant cash account.

Management conducted a thorough review of prior year documents, interviewed previous accountants and staff to trace the existing dormant cash amounting to 1.7 million. Management refunded a total of P366,899.45 to the Bureau of Agriculture Research, P1,105,930.88 remitted to the Bureau of Treasury, and Unidentified bank account amounting P1,791,025.36 is still under further checking.

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

RFO XIII Accounting Section Fully Implemented Management conducted a bank reconciliation to verify the existence of the balance, as per bank statement received, there's no remaining balance reflected.

Audit Observation/s Audit Recommendation/s Implementation Status No.

31 CAAR 2020 p. 22-24

CAAR 2020 p. 22-24

16 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

ATI IAU 01/01/2021 On-going Implementation Management doing an ongoing reconciliation of Cash-in Bank-Trust account

34 CAAR 2020 p. 22-24

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

B. Immediately submit the required liquidation documents for proper accounting of funds transferred to RCPMC, and subsequently identify the remaining unused portions of funds for their immediate reversion to the National Treasury.

RFO III

To discontinue transferring funds to the Regional Crop Protection Center (RCPC) for the current year and succeeding years.

RCPC Unit, Accounting Section

01/02/2021 31/12/2021 Partially Implemented Issued a memorandum addressed to Mr. Edgardo D. Supan, OIC-Center Chief of the Regional Crop Protection Center (RCPC), requiring them to refund the 2019 and prior years unobligated balance on or before March 31, 2021. They were also reminded about the remaining balance of 2020 allotment, and accounting section made the necessary adjusting entries

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR 2020 p. 22-24

17 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

5. Non-liquidation of cash advances

Cash advances for payroll, operating expenses, official local and foreign travels and special purpose/timebound undertakings amounting to ₱368.961 million or 25.49 percent of the cash advances granted during the year amounting to ₱1,518.316 million were not liquidated in accordance with COA Circular No. 97-002. Also, there were still unliquidated cash advances in prior years amounting to ₱ 138.431 million or 15.73 percent of prior years’ balance of ₱879.968 million.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

A. Instruct the Chief Accountant and all Accountable Officers to strictly comply with the provisions of COA Circular No. 97-002 on the grant and liquidation of their cash advances to avoid accumulation of unliquidated balances and to preclude from the withholding of their salaries, and the immediate return of any unutilized amounts of cash advances to the Collecting Officer;

Fully Implemented Management adjusted a total of P19.444 million out of P19.469 million unliquidated cash advances. The remaining P24,484.00 balance due date is on October 14, 2021.

5. Non-liquidation of cash advances

PRDP PRDP Fully Implemented Management liquidated a 100% or P 334,760.00 of cash advances.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

35 CAAR 2020 p. 24-27 DA-CO Accounting Section 01/01/2021 30/06/2021

36 CAAR 2020 p. 24-27

18 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

5. Non-liquidation of cash advances

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

Implemented policy that no cash advances shall be granted unless previous cash advances have already been liquidated.

Accounting On-going Implementation COA Circular No. 97 -002 is being implemented re: No grant cash advance without prior liquidation of previous cash advance if any.

5. Non-liquidation of cash advances

BAI Accounting Section On-going Implementation No additional cash advances were granted to officers and employees unless previous cash advances were fully liquidated.

Audit Observation/s Audit Recommendation/s Implementation Status No.

37 CAAR 2020 p. 24-27

ATI

38 CAAR 2020 p. 24-27

19 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

5. Non-liquidation of cash advances

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

BPI

To comply with the recommendation.

Accounting Section

31/12/2021 Partial Implementation

A total amount of P 105,486,858.78 of the cash advances was already liquidated and refunded this JanuaryApril 2021, and demand letters were sent to the remaining unliquidated balances from Prior Years last May 2021.

40 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

RFO I

To strictly monitor the liquidation of cash advances and remind concerned personnel to submit necessary documents within the prescribed period.

Admin and Finance Division 01/04/2021 On-going Implementation The accounting section regularly reminds the concerned personnel to immediately submit necessary documents on the liquidation of cash advances. Withholding of salaries will be enforced if concerned SDOs still fail to settle their accountabilities.

Audit Observation/s Audit Recommendation/s Implementation Status No.

39 CAAR 2020 p. 24-27

20 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

5. Non-liquidation of cash advances

RFO IVB

Cash advances granted December 2020 were all current and a total cash advance of P4,565,362.21 were intended for salaries/wages of JOs/COs for the month of December 2020 which were paid January 2021. Cash advance totaling to P4,702,492.21 granted December 2020 were liquidated January and February 2021. Most of the cash advances were already liquidated except those dormant accounts.

Accounting Section 01/03/2021 Partial Implementation Due to travel restrictions and quarantine protocols, we have a hard time coordinating with LGUs.

Demand letters were sent to their registered address Will need to coordinate to LGU and request certification that they are no longer residing in the said address and this will serve as support in our request for write-off.

5. Non-liquidation of cash advances

RFO V

The management is now strictly complying with the recommendations provided for this audit finding.

Accounting Section, Collecting Officers, Special Disbursing Officers

01/01/2021 31/12/2021 On-going Implementation Due to ongoing liquidation of cash advances Liquidation for prior year's cash advance is now ongoing and being demanded to respective personnel for the immediate liquidation and refund. A total of P 3,210,094.44 or 23% out of 13,843,597.62 outstanding cash advances for CY 2020 were liquidated as of June 30, 2021. The management has already called the attention of respective personnel/SDOs to immediate liquidation of their outstanding cash advance subject to accounting rules and regulations.

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR 2020 p. 24-27

42 CAAR 2020 p. 24-27

21 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

Non-liquidation of cash advances

Fully Implemented Advances to Special Disbursing Officers amounting to P 53,885.37 and Advances to Officers & Employees amounting to P 5,560.00 were fully liquidated as of March 12, 2021.

5. Non-liquidation of cash advances

Fully Implemented Those concerned personnel with unliquidated cash advance in the prior years had already refunded the amount to the cashier, one submitted an approved relief of accountability for her cash advance attachments/docs lost. Demand letters are sent to them to remind them to liquidate immediately.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

43 CAAR 2020 p. 24-27 RFO VI Accounting Section 01/01/2021 30/06/2021

44 CAAR 2020 p. 24-27 RFO VII Finance 01/04/2021 31/12/2021

22 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

5. Non-liquidation of cash advances

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

46 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

Partially Implemented Management already liquidated an amount of P 1,484 out of P 14,822 under "Advances for local and Foreign travels" and P 336,426.53 out of P 519,937.24 under "Advances for Special Purpose /time-bound undertakings" This office also has conducted Orientations to Accountable Officers.

RFO XI Accounting Division Fully Implemented Region XI Management acknowledges and implemented the recommendations made by the auditor (letter dated 2/20/20)

Audit Observation/s Audit Recommendation/s Implementation Status No.

45 CAAR 2020 p. 24-27 RFO X Accounting Section 01/01/2021 31/03/2021

Office

23 Page

of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

5. Non-liquidation of cash advances

RFO XII

To strictly implement that no cash advances be granted to officers and employees unless previous cash advances had been fully liquidated. And Demand Letters will be regularly sent out to officers and employees to settle their obligations.

Accounting 01/01/2021 On-going Implementation Implemented no new cash advances be granted to officers and employees unless previous cash advances had been fully liquidated. And Demand Letters will be regularly sent out to officers and employees to settle their obligations.

48 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

Cash advances for payroll, operating expenses, official local and foreign travels and special purpose/timebound undertakings amounting to ₱368.961 million or 25.49 percent of the cash advances granted during the year amounting to ₱1,518.316 million were not liquidated in accordance with COA Circular No. 97-002. Also, there were still unliquidated cash advances in prior years amounting to ₱ 138.431 million or 15.73 percent of prior years’ balance of ₱879.968 million.

B. Refrain from granting additional cash advances unless previous ones have been fully liquidated;

Accounting Section On-going Implementation COA Circular No. 97 -002 is being implemented re: No grant of cash advance without prior liquidation of previous cash advance if any.

24 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

BSWM Implemented policy that no cash advances shall be granted unless previous cash advances have already liquidated.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

49 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

B. Refrain from granting additional cash advances unless previous ones have been fully liquidated;

IX No granting of cash advances with previously unliquidated claims.

50 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

B. Refrain from granting additional cash advances unless previous ones have been fully liquidated;

RFO X Strictly no subsequent Cash Advance will be granted unless prior CA is liquidated. However, the Resident COA Auditor has allowed the office to grant another CA to bonded SDOs so long as the purpose of the CA is different from the previous CA

Accounting Section 01/03/2021 On-going Implementation This is with concurrence with our Resident COA Auditor.

The resident COA Auditor has allowed the Office to grant subsequent Cash Advance so long as the purpose is separate and distinct from the previous Cash Advance. The office however ensures liquidation of the Cash Advances granted to be compliant with the prescribed period.

Audit Observation/s Audit Recommendation/s Implementation Status No.

RFO

Accounting Section 01/04/2021 30/04/2021 Fully Implemented

25 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

51 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

B. Refrain from granting additional cash advances unless previous ones have been fully liquidated;

RFO XII

To strictly implement that no cash advances be granted to officers and employees unless previous cash advances had been fully liquidated.

Accounting Section 01/01/2021 On-going Implementation Implemented that no new cash advances be granted to officers and employees unless previous cash advances had been fully liquidated. No significant increase in balances of the cash advances noted as of June 2021 despite 21.8 million cash advances made during the year.

5. Non-liquidation of cash advances

C. Conduct regular monitoring and analysis of cash advances to ensure that these are liquidated within the prescribed periods to avoid accumulation; and

BAR

For immediate compliance Accounting Unit and concerned accountable officers

30/06/2021 Fully Implemented Despite due diligence, the absence of a definite address made it impossible for the management to issue demand letters.

The prior year's unliquidated cash advances are from previous employees who are not anymore connected to BAR. The cash advance granted was long overdue and the management could not anymore locate their whereabouts.

Current Special Disbursing Officers (SDOs) have committed to the immediate liquidation of their respective cash advances complete with all supporting documents.

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR 2020 p. 24-27

26 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

53 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

C. Conduct regular monitoring and analysis of cash advances to ensure that these are liquidated within the prescribed periods to avoid accumulation; and

RFO V On-going Implementation Already with assigned staff for monitoring and analysis of cash advances

54 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

C. Conduct regular monitoring and analysis of cash advances to ensure that these are liquidated within the prescribed periods to avoid accumulation; and

RFO X Strictly adhere to the recommendation provided by this finding.

Accounting Section 01/03/2021 On-going Implementation The office strictly monitors the grant and submission of Liquidation Reports by the Accountable Officers.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec.

for Administration and Finance 27 Page

Roldan G. Gorgonio, Undersecretary

55 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

D. Send a demand letter to Accountable Officers with unliquidated cash advances.

ATI AND RFO V Already sent demand letters. Accounting Section On-going Implementation Management already sent demand letters to accountable officers.

56 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

D. Send a demand letter to Accountable Officers with unliquidated cash advances.

RFO I To issue a demand letter to the concerned employees for the immediate settlement / submission of liquidation report.

Admin and Finance Division

01/04/2021 Fully Implemented A Memorandum was issued to concerned officers /officials dated April 16, 2021. As of to date, out of the total unliquidated balance of P2.24 million ending December 2020, 1.39 million or 62.12% have been liquidated.

Audit Observation/s Audit Recommendation/s Implementation Status No.

28 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

58 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

5. Non-liquidation of cash advances

D. Send a demand letter to Accountable Officers with unliquidated cash advances.

VI & X The Management will send letters to accountable officers and employees to settle their cash advances.

Fully Implemented RFO V, VI & X Management will send demand letters to accountable officers and employees for the immediate liquidation of their cash advances.

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

Fund transfers to NGAs, LGUs, GOCCs and NGOs/POs during the year for the implementation of agency’s project amounting to ₱21,167.472 million, of which ₱ 17,541.533 million or 82.87 percent were not liquidated, were contrary to COA Circular Nos. 94-013 and 2007-001. Also, there were still unliquidated fund transfers in prior years amounting to ₱20,209.835 million or 53.27 percent of prior year's balance of ₱ 37,935.213 million.

A. Require IAs and NGOs/POs to liquidate immediately the fund transfers to them, submit the required reports together with the supporting documents within ten days after the end of each month or end of the agreed period for the project and within sixty (60) days after the completion of the project in accordance with Section 4.6 and 5.4 of COA Circular No. 94-013 and COA Circular No. 2007-001, respectively;

DA-CO Management will prepare demand letters

Accounting Division 01/07/2021 31/12/2021 On-going Implementation The Accounting Division has consistently sent demand letters to various implementing agencies to liquidate the funds transferred to them.

Audit Observation/s Audit Recommendation/s Implementation Status No.

57 CAAR 2020 p. 24-27

Accounting Section 01/01/2021 31/03/2021

RFO

29 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

59 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

ATI On-going reconciliation for all fund transfer accounts by ATI.

IAU 01/01/2021 On-going Implementation During the ATI Finance Mid year Cluster Forum, all accountable officers were advised and required to submit available documents for reconciliation of all fund transfer accounts. COA Ciircular No. 94-043 is being implemeented re: liquidation of fund transfer within the required period.

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs Fund transfers to NGAs, LGUs, GOCCs and NGOs/POs during the year for the implementation of agency’s project amounting to ₱21,167.472 million, of which ₱ 17,541.533 million or 82.87 percent were not liquidated, were contrary to COA Circular Nos. 94-013 and 2007-001. Also, there were still unliquidated fund transfers in prior years amounting to ₱20,209.835 million or 53.27 percent of prior year's balance of ₱ 37,935.213 million.

BAFE

The management will instruct the focal person of projects to constantly communicate with the implementing agencies project leader for the submission of the Liquidation report.

The completion dates of the projects based on work and financial plan will be in June 2021.

The Fund Transfer to the University of Southeastern Philippines (USeP) has submitted the Financial Report, Report on Disbursement, and Schedule of Accounts Payable as of Feb 28, 2021. Also, the International Rice Research Institute has submitted a partial report as of December 31, 2021.

Audit Observation/s Audit Recommendation/s Implementation Status No.

60 CAAR 2020 p. 27-30

Projects Focal Person and Accounting Personnel 01/01/2021 30/06/2021 Partial

Implementation

30 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

61 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

BAI Accounting Section Partial Implementation Management sent a demand letter to Implementing Agencies. A total liquidation of P10.309 million was already posted as of May 2021.

62 CAAR 2020 p. 27-30

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

BPI and BSWM To comply with the recommendation Accounting Section 31/12/2021 Partial Implementation Demand letters were already sent starting this April 2021.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

31 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

CAR Management to follow-up and require concerned implementing agencies to submit supporting documents as soon as possible.

Accounting Section and Implementing Units

Only P699, 000.00 was liquidated for the months of January to June 2021. Accounting section will send another set of demand letters.

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

RFO I IVA & VIII Management commits to strictly comply with the provision of COA Circular No. 94-013, dated December 13, 1994, and COA Circular No. 2007-001, dated October 25, 2007,

Admin amd Finance Division/Program s-Field Operations

01/04/2021 On-going Implemented Due to travel restrictions and quarantine protocols, we have a hard time coordinating with concerned NGAs, LGUs, GOCCs and NGOs/POs, identifying the exact locations and existence of NGOs/POs also adds up to the challenge.

Management strictly comply with the provisions of the COA Circulars to ensure that fund transfers are properly taken up in the books, and management continuously sending demand letters every quarter, conducted meetings and created Monitoring Team for the Unliquidated Fund Transfer per Special Order No. 2021-94.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

63 CAAR 2020 p. 27-30

01/01/2021 31/12/2021 Partial Implementation

64 CAAR 2020 p. 27-30

32 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

CAAR 2020

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

RFO II & IX

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

To continuous sending of demand letters to these implementing agencies

Section Banner Programs

Implemented The management does not grant any additional fund transfers to NGAs, LGUs, GOCCs, NGOs/POs who have pending unliquidated fund transfers unless they submit their Liquidation Report. IX - Follow-up liquidation reports

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

To conduct regular monitoring of the liquidation of fund transfer, require the accounting section to conduct reconciliation of balances with the 17 implementing agencies, instruct the accounting section to effect the necessary adjustments, and request an authority from the COA to write-off for longoverdue accounts.

Accounting Section, Banner Programs

01/03/2021 31/12/2021

33 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

65 CAAR 2020 p. 27-30

Accounting

01/04/2021 31/12/2021

On-going

RFO III

On-going Implementation Management issued a memorandum addressed to banner program coordinators with projects whose fund transfers remained unliquidated, requiring them to submit a list of completed projects and report the status of their uncompleted projects.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

68 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

Accounting Section , Banner Programs

with the demand letters sent by management

A total of 14,797,490.7 or 8% out of 185,221,879.79 outstanding Fund transfers for CY 2020 were liquidated as of June 30, 2021.

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

RFO VI

The Management will send demand letters to NGAs, LGUs, and GOCCs to liquidate their outstanding balances.

Accounting Section Partial Implementation Non submission of liquidation reports

34 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

67 CAAR 2020 p. 27-30

RFO V

The management is now strictly complying with the recommendations provided for this audit finding. 01/01/2021 31/12/2021 Partial Implementation Non-compliance

Letters were sent to NGAs, LGUs, and GOCCs, requiring them to submit the liquidation report and refund the unexpended balances. As of June 30, 2021, we gathered a total of ₱ 56,601,397.43 or 35% of liquidation report

70 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO VII

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

To follow up the submission of liquidation reports.

Accounting Section 01/01/2021 31/12/2021 On-going Implementation

The management sent demand letters to all implementing agencies with unliquidated balances. As of July 31, 2021 Php30,615,841.31 were already liquidated by LGUs and Php 2,000,000 by the NGOs/POs.

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

RFO XI Accounting Section 01/01/2020 On-going Implementation Accounting section already recorded P1,858,218.00(Due to NGOs) , collected a total of P27,353,792.31 liquidation from fund transfer to LGUs and collected a total of P322,669,841.43 fund transfer to NGAs for the year 2020. Due to NGOs/POs: Sagayen, Asuncion and San Isidro Cooperative P1,000,000

St. Michael MPC 50,000

Conservation Farming 100,000

Tagaytay Irrigators 798,218

TOTAL P1,858,218.00

Audit Observation/s Audit Recommendation/s Implementation Status No.

69 CAAR 2020 p. 27-30

35 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

71 CAAR 2020 p. 27-30

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

RFO XII

To send demand letters regularly to remind the IA's of their outstanding balances of fund transfers. And strictly implement that no additional fund transfers unless previous tranches were fully liquidated.

Accounting Section 01/01/2021 On-going Implementation Sent demand letters regularly to remind the IA's of their outstanding balances of fund transfers. And strictly implemented that no additional fund transfers unless previous tranches were fully liquidated.

72 CAAR 2020 p. 27-30

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

B. Require the IAs to fast track the processing of the payments of transactions, prepare the corresponding liquidation reports immediately, and refund the unexpended transfers to avoid the accumulation of unliquidated transferred funds;

PRDP

Require the PSO to strictly implement the submission of monthly submission of Statement of Receipts and Expenditures (SRE)

01/07/2021 31/12/2021 On-going Implementation Due to the changing restriction in the community quarantine from General Community Quarantine to Moderate and Enhanced Community Quarantine for the 1st to the 3rd quarter of this year

PRDP to monitor the funds transferred to LGUs and the promptness by the LGUs in payment of billing of the contractors and suppliers. PRDP to strictly require the LGUs to submit monthly Statement of Receipts and Expenditures (SRE) as liquidation report

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 36 Page

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

C. Submit to the Audit Team the copies of demand letters sent by the Accountant within the 1st Semester of CY 2021 and the results thereof; copy of the updated checklist of required documents prior to payment; memorandum addressed to the Proposal Screening Committee requiring the strict submission by NGO/PO of all documents required under COA Circular No. 2007-001 and inclusion of a statement pertaining thereto in the Evaluation Report; and (ii) issue Certification by the Accountant that funds previously transferred have been liquidated and accounted for in the books as part of the documentary requirements;

Partial Implementation

Some delays in the submission of ORs may be attributed to the location of the Implementing Agency (IAs).

Management sent demand Letters requesting liquidation for specific projects that have already been prepared by the Accounting Unit and shall be sent to IAs within the month of June. This was forwarded to the COA Audit Team together with a summary of Liquidation of IAs that were recorded this CY 2021. The Account Unit has already updated the checklist of required documents prior to payment as indicated. Memorandum addressed to the Proposal Screening Committee were already submitted. Various Original Official Receipts issued by IAs were already forwarded to the Audit Team this June 2021. Further ORs received shall be immediately forwarded. Certification by the Accountant is issued upon submission of the IAs' Audited Financial Reports (AFRs).

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

D. Institute legal remedies against any NGO/PO which failed to complete their project as covered by the MOA, if warranted;

RFO II

Management conduct comprehensive review of different Banner Program projects and identify those which failed to complete as per project's MOA. A list of these projects, indicating timeline, status and issues of each project, will be provided to the Legal Unit for their review.

Accounting SectionReporting Unit Legal Unit

15/08/2021 30/09/2021 On-going

Implementation

Due to focal persons had not reported the status or given the list of uncompleted projects to the management

Management will revisit the status of these uncompleted projects

Audit Observation/s Audit Recommendation/s Implementation Status No.

73 CAAR 2020 p. 27-30

Accounting Unit 31/12/2021

BAR

74 CAAR 2020 p. 27-30

37 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

76 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

E. Revisit the MOA and consider the inclusion of the timelines of the projects’ completion and fixed period to report the liquidation of funds received; and penalty clause for the noncompliance with the stipulations of the MOA;

RFO III On-going Implementation Management issued a memorandum to banner program coordinators for the mandatory inclusion of the following provisions in the MOA.

a.) timeline for the completion of the projects;

b.) fixed period to report the liquidation of funds received and;

c.) penalty clause for the non-compliance with the stipulations of the MOA.

RFO IV A

F. Prioritize the preparation of formal request for the details of the fund transfers and the extensive reconciliation with the records of DA RFO IV-B to verify the existence/status of NGOs/POs received from them;

The management commits to strictly comply with the provision of COA Circular No. 94-013 dated December 13, 1994 and COA Circular No. 2007-001, dated October 25, 2007.

Accounting Unit/Admina and Finance Division

Partially Implemented Due to travel restrictions and quarantine protocols, we have a hard time coordinating with concerned NGAs, LGUs, GOCCs, and NGOs/POs, and identifying the exact locations and existence of NGOs/POs also adds up to the challenge.

Management will sent demand letters and make personal followups to implementing agencies.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

CAAR 2020 p. 27-30

01/01/2021

31/12/2021

38 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

78 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

G. Conduct ocular inspections or visits to the available addresses or location of the grantees to validate the implementation of their projects financed by the funds transferred;

Actual site visit will be conducted to validate the existence of these NGOs/POs and to ensure project implementations.

Accounting Section and PMED

01/03/2021

Partial Implementation Due to the travel restrictions brought about by the community quarantine protocols, actual site visit is extra challenging at this time.

For CY 2021, we have received a total of P6,471,648.79 from LGU, and P3,079,482.17 from NGAs as refund/liquidation from IAs. We still need to coordinate with the remaining IAs for the remaining unliquidated FTs.

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

G. Conduct ocular inspections or visits to the available addresses or location of the grantees to validate the implementation of their projects financed by the funds transferred;

The Management created a Monitoring Team for unliquidated fund transfer per Special Order

Audit Observation/s Audit Recommendation/s Implementation Status No.

77 CAAR 2020 p. 27-30 RFO IVB

01/04/2021

RFO VIII Finance/Program s

31/12/2021 Partial Implementation

Office of

for Administration and Finance 39 Page

Usec. Roldan G. Gorgonio, Undersecretary

80 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

H. Conduct close monitoring of project implementation and verification of financial records and reports of the IAs and NGOs/POs with outstanding/unliquidated fund transfers and ensure their compliance with the provisions of the MOA; and

for the preparation and sending of demand letters

Demand Letters are religiously prepared for the NGO/POs to liquidate the fund transfer

RFO I

To continuously monitor the fund transfer to NGAs, LGUs, GOCCs, NGOs and POs by requiring the immediate submission of liquidation reports at the end of the month or at the end of implementation of the project.

Admin And Finance 01/04/2021 Fully Implemented Management has issued demand letters to various implementing agencies last June and November 2020. Continuous monitoring through phone calls and emails are also being implemented to fast track the liquidation compliance.

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

79 CAAR 2020 p. 27-30 DA-CO Management will prepare Demand Letters Accounting/ Enduser 01/07/2021 31/12/2021 On-going Implementation Unable to

NGOs/POs

locate addresses of some

40 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO IVB

Operational Management Audit System (OMAS) to monitor status of implementations of DA funded programs and projects to implementing agencies to ensure compliance with the agreed terms and conditions stipulated in MOA and also to monitor liquidations of these fund transfers. OMAS team has scheduled itinerary for this CY 2021.

Accounting Section and PMED

01/03/2021 Partial Implementation Due to the travel restrictions brought about by the community quarantine protocols, actual site visit is extra challenging at this time.

For CY 2021, management has received a total of P6,471,648.79 from LGU, and P3,079,482.17 from NGAs as refund/liquidation from IAs. We still need to coordinate with the remaining IAs for the remaining unliquidated FTs.

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

RFO VI

The management will direct the accountants and the inspection committee to conduct close monitoring and inspection of project implementation.

Accounting Section Partial Implementation Monitoring and inspection of the projects will be conducted in the 3rd Quarter.

Management directed the accountant and inspection committee to conduct close monitoring and inspection of project implementation to ensure that projects are implemented within the time frame and liquidation of funds or reports thereon are submitted regularly in accordance with the agreement.

Audit Observation/s Audit Recommendation/s Implementation Status No.

81 CAAR 2020 p. 27-30

CAAR 2020 p. 27-30

41 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

RFO VII Management to closely monitor with the implementing agencies to ensure that projects are implemented in accordance with the signed MOA.

Partial Implementation Actual inspection and monitoring were affected due to pandemic's safety and travel restrictions implemented by LGUs.

The management shall require the operations group to closely monitor the implementation of the project in accordance with the signed MOA, and if actual inspection is not possible, virtual monitoring shall be done.

CAAR

RFO

01/04/2021

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

83 CAAR 2020 p. 27-30

Operations group 01/01/2021 31/12/2021

2020

27-30

VIII Finance/Program s

31/12/2021 Partial Implementation Due to the non availability of liquidation documents in the IA since these transactions were implemented more than ten years ago.

86 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO XII

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

Subsidiary ledgers will be monitored and demand letters will be sent out to IA's. To coordinate with the focal persons in-charge to also monitor the physical status of the projects.

Accounting section and Field Operation Division's Focal Persons

01/01/2021 On-going Implementation Subsidiary ledgers will be monitored and demand letters will be sent out to IA's. To coordinate with the focal persons in-charge to also monitor the physical status of the projects

DA-CO & RFO I

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

To refrain from transferring funds if the previous funds transferred have not yet been liquidated.

Admin. And Finance 01/04/2021 Fully Implemented Fund transfers are only being granted if the previous fund transfers are liquidated.

Audit Observation/s Audit Recommendation/s Implementation Status No.

85 CAAR 2020 p. 27-30

I. Refrain from processing fund transfers if liquidation reports on previous advances are not yet submitted.

43 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

87 CAAR 2020 p. 27-30

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO XII

6. Non-liquidation of fund transfers to implementing agencies and NGOs/POs

I. Refrain from processing fund transfers if liquidation reports on previous advances are not yet submitted.

To strictly implement that no additional fund transfers be granted unless previous tranches were fully liquidated.

Accounting Section 01/01/2021 On-going Implementation Implemented that no additional fund transfers to be granted unless previous tranches were fully liquidated.

88 CAAR 2020 p. 30-32

7. Non-liquidation of fund transfers to PS-DBM and PITC

Five DA offices reported no unliquidated fund transfer to Procurement Service (PS) - DBM and Philippine International Trading Corporation (PITC) during the year. However, of the fund transfers to PS-DBM during the year of seven DA offices for its office supplies and equipment requirement amounting to ₱23.516 million, ₱13.807 million or 58.72 percent were not liquidated, contrary to COA Circular No. 94-013. Also, there were still unliquidated fund transfers in prior years amounting to ₱153.819 million or 80.67 percent of prior year’s balance of ₱ 190.671 million.

A. Monitor the refund from PS-DBM for the undelivered procured items;

DA-CO Reconciliation of advances to Procurement Services

Accounting Section 01/07/2021 31/12/2021 Ongoing Implementation Management has refunded P20.79 million in CY 2020 and P36.27 million in CY2021, leaving a balance of P103.78 million unliquidated cash advance as of June 30, 2021 under fund cluster 01.

Audit Observation/s Audit Recommendation/s Implementation Status No.

44 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

7. Non-liquidation of fund transfers to PS-DBM and PITC

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

B. Require the PS-DBM to return all unused funds that were transferred to the agency in CY 2020 and in the prior years;

Management to require PSDBM to return all unused funds transferred to them in prior years until the year 2020.

Section and Procurement Unit

Partially Implemented Management refunded P 199,308.92. For the remaining accounts, management will send another demand letter.

7. Non-liquidation of fund transfers to PS-DBM and PITC

B. Require the PS-DBM to return all unused funds that were transferred to the agency in CY 2020 and in the prior years;

90 CAAR 2020 p. 30-32 RFO XIII

The Management conforms to patronize the purchase of airline tickets through GFA.

Accounting Section On-going Implementation Management has an existing memorandum directing purchase of airline tickets through GFARemaining balance as of June 30, 2021 amounting to Php 1,423,590.92.

Audit Observation/s Audit Recommendation/s Implementation Status No.

89 CAAR 2020 p. 30-32

Accounting

01/01/2021

CAR

31/12/2021

Office

Finance 45 Page

of Usec. Roldan G. Gorgonio, Undersecretary for Administration and

92 CAAR 2020 p. 30-32

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

7. Non-liquidation of fund transfers to PS-DBM and PITC

C. Instruct Property Officer to submit all Delivery Receipts to the Accounting Section on a monthly basis for recording purposes;

ATI Implemented in June 2021 that all Delivery Receipts submitted to Accounting for booking purposes. Procurement Services delivery receipts booked under JEV No. 2021-06-396 dated June 2, 2021 amounting to Php 1,258,124.48

Property Office/Accounting Office

01/06/2021 On-going Implemented Property Officer were being instructed to submit delivery receipts for proper accounting reporting purposes starting June 2021

7. Non-liquidation of fund transfers to PS-DBM and PITC

D. Reconcile the balance per books with the Agency Summary of Payments and Deliveries of the Procurement Service and determine the cause of variance;

BAR For immediate compliance Property and Supply Unit & Accounting unit

31/12/2021 On-going Implementation

The Accounting Unit is still currently analyzing the variance in the unliquidated fund transfers between BAR and Procurement Service.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

91 CAAR 2020 p. 30-32

Office of Usec.

Administration and Finance 46 Page

Roldan G. Gorgonio, Undersecretary for

94 CAAR 2020 p. 30-32

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

7. Non-liquidation of fund transfers to PS-DBM and PITC

E. Instruct the:

I. General Services Section Chief to retrieve the pertinent documents supporting the outstanding deposits from CY 2020 and prior years; coordinate with the PS-DBM for the necessary reconciliation of records and eventual settlement of the records’ disagreement, and furnish the Accountant of the monthly statement of accounts for regular reconciliation purposes;

II. Chief Accountant to monitor the account and coordinate with and reconcile the accounting records with those kept by the General Services Section Chief regularly; and

RFO III

I. Instruct the accounting section to reconcile and coordinate with PS-DBM the balance of P1,433,748.12 for the Calendar Years 2015 to 2018

II. Instruct the Accounting Section to Coordinate with the General Services Section for the required documents for the reconciliation of records.

Accounting Section, GSS 28/02/2021 31/12/2021 Partial Implementation

I. For the accounting errors, the accounting section has already made the necessary corrections.

II. The Accounting section verified and corrected Due from NGAs -PS-DBM account for CY 2020 from the records provided by the General Service Section resulting in a balance per books of P 0.00 as of Decenber 31, 2020

7. Non-liquidation of fund transfers to PS-DBM and PITC

F. Immediately investigate, reconcile and require PSDBM the immediate liquidation of prior years fund transfers which remained outstanding as of December 31, 2020.

RFO IVB

Reconcile these accounts with the Accounting Unit through the subsidiary ledgers way back CY2020. Once reconciled, PS will issue a certificate from the Treasury to confirm the balances.

Property & Supply Unit 01/03/2021 Partial Implementation Awaiting reply from PS-DBM regarding request for breakdown of balances.

E-mailed PS-DBM last July 9, 2021 for the breakdown of balances and those reverted to Treasury.

Audit Observation/s Audit Recommendation/s Implementation Status No.

93 CAAR 2020 p. 30-32

47 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

8. Dormant accounts for write-off

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the write-off of these accounts, contrary to the said circular.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

We reiterated our prior year’s recommendation and Management agreed to direct the concerned officers to exhaust possible means to secure the needed documentary requirements as stated in Section 8.3 of COA Circular No. 2016-005 dated December 19, 2016 and file the request for authority to write-off of dormant receivable accounts, unliquidated cash advances, and fund transfers, following the procedures prescribed under the said circular.

96 CAAR 2020 p. 32-35

8. Dormant accounts for write-off

ATI ATI exhausts possible means to retrieve documentary documents for write-off.

Accounting On-going Implementation ATI has been exhausting all possible means in securing needed documentary requirements in compliance with COA Cirular No. 2016-005 for the write-off of dormant receivables.

in securing documents for the write of some dormant items

The Accounting Division is exerting best effort to locate all the necessary documentations to support the write-off.

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

95 CAAR 2020 p. 32-35 DA-CO Retrieval of documents for

write-off Accounting Section 01/07/2021 31/12/2021 On-going Implementation Difficulty

the request for

48 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

97 CAAR 2020 p. 32-35

8. Dormant accounts for write-off

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

BAR Accounting Unit 31/12/2021 On-going Implementation Documents are not enough to satisfy the enumerated requirements.

The Management has already instructed the Accounting Unit to prepare and finalize related documents that shall sufficiently comply with the requirements stated in the circular.

98 CAAR 2020 p. 32-35

BPI Accounting Section 31/12/2021 On-going Implementation Management already sent demand letters starting this April 2021.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

8. Dormant accounts for write-off

49 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

8. Dormant accounts for write-off

BSWM

Management to file the request for authority to writeoff dormant receivable accounts, unliquidated cash advances and fund transfers to this office.

On-going Implementation Management will update schedule and prepare request for write-off of dormant account,

100 CAAR 2020 p. 32-35

8. Dormant accounts for write-off

CAR

To re-submit the request for write-off to COA with complete supporting documents.

Accounting Section 01/01/2021 31/12/2021 Partially Implemented Management will gather additional documents for attachment of request. Communicated with DTI for their Certifications.

Audit Observation/s Audit Recommendation/s Implementation Status No.

32-35

CAAR 2020 p.

Section 01/11/2021 30/11/2021

Accounting

50 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO II Management is taking steps to have these accounts be written-off following the procedures prescribed

Management is awaiting for the compliance of these demand letters sent and we are taking steps of complying the 3 demand letters which is a prerequisite in the request for write off

A total of P 204,598,557.76 of the Loans ReceivableOthers has been granted write-off by the COA dated July 17, 2019 amounting to P 8,480,274.03 representing individual loan balances above P 100,00.00 but below P 1,00,000.00 and Nov 11, 2019 amounting to P 196,118,310.73 for accounts below P 100,000.00

8. Dormant accounts for write-off

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the writeoff of these accounts, contrary to the said circular.

RFO IVB

We are regularly submitting a Schedule of Receivables with corresponding remarks but we have difficulty in securing supporting documents due to nonexistent of NGOs/POs with long outstanding balances.

Accounting Section 01/03/2021 Partially Implemented Difficulty in securing supporting documents and unable to establish the existence of NGOs/POs of these dormant receivables

We are regularly submitting a Schedule of Receivables with corresponding remarks but we have difficulty in securing supporting documents due to nonexistent of NGOs/POs with long outstanding balances.

Audit Observation/s Audit Recommendation/s Implementation Status No.

8. Dormant accounts for write-off

101 CAAR 2020 p. 32-35

Accounting SectionReporting Unit 15/08/2021 30/09/2021 Partially Implemented

102

CAAR 2020 p. 32-35

51 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the writeoff of these accounts, contrary to the said circular.

RFO V

To prepare valid requests for write- off of long outstanding dormant for more than 10 years.

of documents to be used in validating the existence of a receivable account.

Preparation and gathering of documents to be used in validating the existence of a receivable account.

8. Dormant accounts for write-off

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the writeoff of these accounts, contrary to the said circular.

RFO VI

The Management will send a demand letter to Philippine Rice Research InstituteNegros and LGU Candoni to settle their unliquidated balance of the fund transfer.

Accounting Section Partial Implementation Due to non submission of liquidation reports

Letters were sent last December 2020 to Philrice-Negros and LGU of Candoni requiring them to submit liquidation reports and return the unused balance of the fund transfer.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

8. Dormant accounts for write-off

103

CAAR 2020 p. 32-35

Section 01/01/2021 31/12/2021 Partial Implementation Tracking

Accounting

104 CAAR 2020 p. 32-35

Office of Usec. Roldan G.

for Administration and Finance 52 Page

Gorgonio, Undersecretary

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the writeoff of these accounts, contrary to the said circular.

RFO VII

Process request for write off of all dormant receivables to COA

in the request for write off was caused by the difficulty in the compliance of required documents

Fast track compliance of the required documents

106 CAAR 2020 p. 32-35

8. Dormant accounts for write-off

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the writeoff of these accounts, contrary to the said circular.

RFO IX

Still in the process to request for authority to writeoff dormant accounts.

Accounting Section 01/04/2021 31/12/2021 Not Yet Implemented Due to lack of records to support request Retrieval of available records

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

8. Dormant accounts for write-off

105 CAAR 2020 p. 32-35

Accounting Section 01/01/2021 31/12/2021 Partially Implemented Delay

53 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

8. Dormant accounts for write-off

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the writeoff of these accounts, contrary to the said circular.

RFO X

Prepare and submit reports required pursuant to COA Circular No. 2016-005.

Accounting section 01/03/2021 Partially Implemented Compliance to the request for write-off is difficult since documents relative to these items are no longer available.

Submitted Quarterly Report on Requests for Write-off and documents mentioned on COA Circular No. 2016-005.

Dormant accounts for write-off

There are no dormant receivable accounts, unliquidated cash advances and unliquidated fund transfers for write-off in PRDP, BAFE, RFOs I, IVA and XII; while ATIITCPH and RFO III had requested for write-off of dormant receivables amounting to ₱1.962 million and ₱1.168 million, respectively, in accordance with Section 8.2 of COA Circular No. 2016-005 dated December 19, 2016. However, 16 DA offices with dormant receivables amounting to ₱5,076.814 million have not requested for the writeoff of these accounts, contrary to the said circular.

Partially Implemented DA RFO XI has a hard time to reconcile this account as this is the result of prior years combination of five (5) bureaus namely the Bureau of Animal Industry (BAI), Bureau of Agricultural Extension (BAEX), Bureau of Soils, Bureau of Fishery and Aquatic Resources (BFAR) and the Bureau of Plant Industry (BPI) to comprise the Department of Agriculture.

Audit Observation/s Audit Recommendation/s Implementation Status No.

107 CAAR 2020 p. 32-35

108 CAAR 2020 p. 32-35 RFO XI Adoption of this recommendation Accounting section 01/01/2021 31/12/2021

54 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

9. Insurance of physical assets with GSIS

Nineteen DA offices insured government property with the GSIS amounting to ₱4,683.274 million with corresponding insurance premiums paid in the amount of ₱33.929 million, in accordance with RA No. 656, otherwise known as the “Property Insurance Law”, as amended by PD No. 245 dated July 13, 1973. However, the physical assets of 14 DA offices amounting to ₱3,683.049 million were not insured against fire or theft, thus, they are at risk of not being indemnified in case of damage or loss of property.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

BAFE

A. Properly insure with the GSIS the physical assets amounting to ₱3,683.049 million and thereabouts; by making proper and timely coordination with the GSIS for the necessary requirements in insuring the agency property; and/or to prepare and submit an updated Property Inventory Form for all insurable assets to the GSIS;

The management will insure its assets against fire or theft with the General Insurance Fund of the GSIS, contrary to Republic Act (RA) No. 656, otherwise known as the “Property Insurance Law”, as amended by Presidential Decree No. 245 dated July 13, 1973.

Newly acquired/delivered PPEs were not yet insured due to numbering, preparation of stickers, and appointing the accountable officer in charge thereof.

Properties of BAFE as of December 31, 2020 were insured at GSIS with Policy ID 100068274.

110 CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

PRDP

To prepare DV for payment of insurance premium to GSIS

01/08/2021 31/12/2021 Partially Implemented Waiting for the Statement of Account from GSIS as basis in the payment.

Property Inventory Form was submitted to GSIS for assessment.

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR

35-37

109

2020 p.

Property Officer 01/01/2021 31/12/2021 Partial Implementation

55 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

9. Insurance of physical assets with GSIS

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

Management already insured the government GSIS

31/12/2021 On-going Implementation Government property is being insured against fir and theft in accordance with PD No. 245 otherwise known as "Property Insurance Law"

112 CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

BAI The Property Unit will reconcile the remaining PPEs that were not insured yet with the GSIS

01/10/2021 31/12/2021 Implemented The management thru the Property Unit already insured the buildings under GSIS Policy No. FI-NMGSISHO-0035375 for the period covered January 1, 2020 to December 31, 2020.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

111 CAAR 2020

35-37 ATI

General Services/Accounti

01/01/2021

Property Unit

56 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

9. Insurance of physical assets with GSIS

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

BSWM Property Section Fully Implemented Management alreasdy properly insure with the GSIS the physical assets and thereabouts; by making proper and timely coordination with the GSIS for the necessary requirements, and/or prepare and submit an updated Property Inventory Form for all insurable assets to the GSIS.

114 CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

CAR To ensure all required property of the agency are insured.

Supply and Property Unit

01/01/2021 31/12/2021 Partial Implementation Physical inventory was completed on July 31, 2021 but the report is expected to be accomplished on or before December 31, 2021. The complete record of properties is necessary to determine the proper insurable properties.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21

CAAR 2020

35-37

113

57 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

9. Insurance of physical assets with GSIS

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

Management commits to submit and update the list of inventory with GSIS and process the PPE insurance.

01/05/2021 31/08/2021 On-going Implementation The updated lists of inventories of Region and ILIARC were already submitted to GSIS in June 2021. We are still awaiting the assessment and billing from GSIS to process the insurance payment.

116 CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

RFO II Management will held a meeting regarding the application of insurance coverage and to include in the future budget preparation the insurance coverage of all assets.

Partial Implementation Management remaining dormant receivable accounts, the agency is still in the process of completing the necessary documents prescribed, and to follow up on the status of request

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

115 CAAR 2020 p. 35-37 RFO

General Services Section (GSS)

58 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

9. Insurance of physical assets with GSIS

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

The management will instruct the property officer to identify the cost of properties including buildings located at research stations and RCPC, and coordinate with the GSIS on the required documents for the application of insurance

GSS 01/03/2021 31/12/2021 On-going Implementation The management strictly monitors the application for insurance on the properties mentioned in the AOM.

118 CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

RFO IVB

Realign fund for payment of insurance premium and to include in budget proposal insurance of these physical assets.

Property & Supply Unit 01/03/2021 Partial Implementation For realignment of funds from savings. Propose insurance premium payment for 2022 budget for the insurable assets.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

117 CAAR 2020 p. 35-37 RFO

III

59 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

120

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

9. Insurance of physical assets with GSIS

A. Properly insure with the GSIS the physical assets amounting to ₱ 3,683.049 million and thereabouts; by making proper and timely coordination with the GSIS for the necessary requirements in insuring the agency property; and/or to prepare and submit an updated Property Inventory Form for all insurable assets to the GSIS;

VII Insure all the physical assets of the region as recommended.

Partially Implemented Some of the assets were not insured due to non availability of funds.

Request for budget allocation for the insurance of uninsured physical assets of the region.

CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

60 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

119 CAAR 2020 p. 35-37 RFO

Admin and Finance 01/01/2021 31/12/2021

RFO

XI GSS

31/12/2021 Ongoing implementation GSS has already submitted insured government properties to the Resident Auditor.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

121 CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

However, the physical assets of 14 DA offices amounting to ₱3,683.049 million were not insured against fire or theft, thus, they are at risk of not being indemnified in case of damage or loss of property.

B. Include in the budget the payment of insurance premiums for all the insurable assets;

RFO II

Management held a meeting regarding the application of insurance coverage and to include in the future budget preparation the insurance coverage of all assets.

Management to request additional funds to cover insurance

To follow up on the status of request

122 CAAR 2020 p. 35-37

9. Insurance of physical assets with GSIS

B. Include in the budget the payment of insurance premiums for all the insurable assets;

RFO VII Budget Section Fully Implemented Request for budget allocation for the insurance of uninsured physical assets of the region

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec.

for

and

61 Page

Roldan G. Gorgonio, Undersecretary

Administration

Finance

9. Insurance of physical assets with GSIS

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

C. Locate the documents pertaining to the transfer of Aircrafts and Aircrafts Ground Equipment to another agency, if still not found, coordinate with the recipient agency for the documentation of transfer.

locate documents of the Aircrafts for transfer

with various recipients for the documentation of transferred

10. Disposal of unserviceable property

BAFE, RFOs IVA and VI reported no unserviceable property subject for disposal while BPI and BSWM disposed of unserviceable property for ₱0.067 million, in compliance with Section 79 of Presidential Decree (PD) No. 1445. However, unserviceable property of 15 DA offices/RFOs with book value of ₱172.236 million remained not disposed of, thus, exposing them to further deterioration and decreasing their realizable value.

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property;

31/12/2021 On-going Implementation Due to the pandemic limited personnel are working on-site.

COA is in the process of inspecting the items listed in the IIRUP prepared by GSD.

Audit Observation/s Audit Recommendation/s Implementation Status No.

123 CAAR 2020 p. 35-37 BSWM Management to

Property Section 01/11/2021 30/11/2021 On-going Implementation Coordinate

aircrafts

DA-CO

PRDP

124 CAAR 2020 p. 37-39

GSD 01/01/2021

62 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

10. Disposal of unserviceable property

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property;

Fully Implemented The concerned officer has already prepared the IIRUP for CY 2020 to facilitate the immediate disposal of unserviceable property

10. Disposal of unserviceable property

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property;

CAAR 2020 p. 37-39 RFO II Management already complied and facilitated the disposal of all unserviceable properties.

On-going Implemented Management is expecting to complete the said report and the disposal of all unserviceable properties within the quarter.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

125 CAAR 2020 p. 37-39 RFO I General Service Section, Property Officer 01/05/2021 31/05/2021

126

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 63 Page

10. Disposal of unserviceable property

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO IVB

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property;

Will prepare and update the IIRUP to indicate all the unserviceable properties subject for disposal. The management also aims to inspect the properties in the regional office first since this is the more feasible option given the current situation

Property and Supply Unit

01/03/2021 Partial Implementation Due to COVID 19 pandemic; offices were lockdown and skeletal workforce was implemented brought about by ECQ, MECQ, confirmed COVID -19 cases and close contact personnels in the MiMaRoPa offices, we have a hard time to do inventory and inspect all the unserviceable properties subject for disposal

128 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property;

RFO X Adhere to the recommendation provided by the finding.

GSS - AFD 01/03/2021 Partially Implemented COVID 19 restrictions has been a huge contributor in the delay.

Various plans have been implemented and conducted meetings with the concerned personnel.

Audit Observation/s Audit Recommendation/s Implementation Status No.

127 CAAR 2020 p. 37-39

64 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

129 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

130 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property;

RFO XI Adoption of this recommendation

GSS 01/01/2020 Ongoing Implementation Inventory count plan is being by GSS

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property;

RFO XII

To implement the immediate preparation of IIRUP to facilitate the disposal of unserviceable PPE.

Property Officer 01/01/2021 On-going Implementation

The property officers exert effort to complete the property records and IIRUP and other reports are made timely to facilitate transactions faster such as disposals of PPE

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 65 Page

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

131

10. Disposal of unserviceable property

The Management conforms to the observation and will issue demand letters to accountable officers to surrender the unserviceable properties in order to undertake disposal thereon.

GSS Not all unserviceable properties were turned-over to GSS

Already issued demand letters to concerned Accountable Officers

2020 p. 37-39

10. Disposal of unserviceable property

DA-CO GSD

01/07/2021

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

CAAR 2020

A. Prepare the Inventory and inspection Report of Unserviceable Property (IIRUP) as soon as possible and facilitate the immediate disposal of all unserviceable property; 37-39

RFO XIII

B. Expedite the evaluation and determination of the appraised value of the unserviceable properties listed in the IIRUP, prepare the appraisal report and schedule disposal thereof in accordance with Section 79 of PD No. 1445. 66 Page

132 CAAR

31/12/2021 On-going Implementation COA is in the process of inspecting the items listed in the IIRUP prepared by GSD.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

133 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

134 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

ATI On-going series of disposal of ATI-CO. Action Plan for the 4th tranche for approval of Director Aton.

Disposal Committee Partially Implemented There is an ongoing series of disposal of unserviceable properties listed in the IIRUP. The evaluation and determination of the appointed value of said unserviceable properties is being expedited. Applicable laws, rules and regulations in the procurement processes are being observed by ATI.

BAR

For immediate compliance Property and Supply Unit, Disposal Committee, & Accounting Unit

31/12/2021 On-going Implementation

The Management had already instructed both the Property Officer and the Disposal Committee to monitor and immediately facilitate the disposal of unserviceable PPE so as to avoid further deterioration and unnecessary utilization of storage space. Other items were already inspected by the Disposal Committee, however the disposal of the items is still in process. Appraisal from third party and/or junk shops are yet to be conducted

Audit Observation/s Audit Recommendation/s Implementation Status No.

67 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

135

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

10. Disposal of unserviceable property

CAR Management to require the concerned unit to dispose of all unserviceable properties of the agency.

Not Yet Implemented Physical inventory was completed on July 31, 2021 but the report is expected to be accomplished on or before December 31, 2021.

To dispose of unserviceable properties upon completion of final physical inventory report at the end of the year.

136 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

RFO & V General Service Section, Property Officer and Disposal Committee

01/05/2021 31/05/2021 Fully Implemented Copies of IIRUP and Disposal Committee’s Appraisal Report were already submitted to COA on May 3 and 19, 2021 for inspection and evaluation.

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR 2020 p. 37-39

Supply and Property Unit 01/01/2021 31/12/2021

68 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

137

10. Disposal of unserviceable property

138 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

RFO X Adhere to the recommendation provided by the finding

30/09/2021 On-going Implementation The management is still in the process of completing the appraisal report and is expected to finish together with the disposal within the quarter.

GSS - AFD 01/03/2021 Partially Implemented Due to COVID 19 restrictions, it has been a huge contributor in the delay

Various plans have been implemented and conducted meetings with the concerned personnel.

69 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

CAAR 2020

37-39 RFO

II Management canvass to set up the price for disposal.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

139 CAAR 2020 p. 37-39

10. Disposal of unserviceable property

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

140 CAAR 2020 p. 39-40

11. Procurement through negotiated procurement (emergency purchase)

This year’s procurement of goods and services through negotiated procurement (emergency purchase) amounting to ₱ 955.667 million by 11 DA offices were in accordance with Section 53.2 of the 2016 Revised Implementing Rules and Regulation (IRR) of RA No. 9184 (Procurement Law). However, ATI RTCs X and XI did not observe the applicable laws, rules and regulations in their procurement amounting to ₱11.625 million.

RFO XI Adoption of this recommendation

GSS 01/01/2020 On-going Implementation Inventory count plan is being by GSS

We recommended and Management agreed to require the ATI RTC X and XI to ensure that procurement of goods and services are in accordance with applicable laws, rules and regulations and instruct the BAC Secretariat of RTC X to submit the lacking supporting documents to preclude the issuance of Notice of Suspension.

ATI BAC, Supply Officer, Accounting, Management

01/01/2021 01/06/2021 Fully Implemented As per view of the Agency's procurement of Goods and Catering services, no single procurement reached P 1,000,000 the treshold that warrants competitive public bidding. All of our procurements, when warranted, are posted on the Philgeps website . We even posted procurement with an amount below the treshold of Php 50,000. The print out of the posting were already attached in the respective Disbursement Vouchers.

Audit Observation/s Audit Recommendation/s Implementation Status No.

70 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

141 CAAR 2020 p. 40-43

12. Submission of government contracts

Thirteen DA offices submitted copy of government contracts, purchase orders (POs), work orders (WOs) and their supporting documents totaling 13,305 with corresponding amount of ₱ 12,195.940 million within the prescribed period. However, POs, WOs, and contracts totaling 4,776 with corresponding amount of ₱5,721.513 million were not submitted within the prescribed period, with delays ranging from one to 574 days, while 751 POs/WOs/contracts with corresponding amount of ₱ 1,445,981 million were not submitted by six DA offices, inconsistent with Items 3.1.1 and 3.2.1 of COA Circular No. 2009 -001 dated February 12, 2009. Moreover, of the 18,081 contracts submitted amounting to ₱17,917.454 million, 4,012 contracts in the amount of ₱2,032.372 million submitted in CAR, RFOs IVA, VI, and XIII were verified to be complete and in order.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

A. (i) Immediate submission of the perfected contracts and POs/WOs with all supporting documents and (ii) henceforth, ensure that these are submitted within the reglementary period with all required information in the contracts and POs/WOs completely filled-up;

ATI Management agreed during the Management Review Meeting not to approve late POs and Contract anymore.

Management On-going Implementation Management has been observing submission of the required submission of perfected contracts and POs/WOs with all supporting documents within the reglementary period in compliance with COA Circular No. 2009-001

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 71 Page

12. Submission of government contracts

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

Fully Implemented The procurement staff uses a matrix that includes the activities, responsible persons and schedules dates with deadlines to monitor the compliance on the timeline of procurement activities.

Audit Observation/s Audit Recommendation/s Implementation Status No.

142 CAAR 2020 p. 40-43 BAFE BAC Secretariat 01/01/2021 31/05/2021

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 72 Page

143

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

2020 p. 40-43

12. Submission of government contracts

BPI Management will comply with recommendation

BAC Secretariat/ Procurement Management Office

31/12/2021 Partially Implemented 18 Contract of Agreement were already submitted one (1 )Contract of Agreement was forwarded to the bidder for review and signature and one (1) Contract of Agreement was cancelled due to no response from bidder despite of several calls

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 73 Page

144 CAAR 2020 p. 40-43

12. Submission of government contracts

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO I Management will immediately submit the perfected contracts, POs and JOs, including supporting documents and reiterate to concerned personnel /officials in their duties and responsibilities to submit within the reglementary period.

Admin. and Finance and Concerned units

01/05/2021 On-going Implemented Memorandum has been issued reiterating the timely submission of Contracts, JOs, POs and other supporting documents to COA to avoid future receipt of AOM regarding this matter. Several reminders both verbal and written have also been issued to concerned units.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec.

for Administration and Finance 74 Page

Roldan G. Gorgonio, Undersecretary

12. Submission of government contracts

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

RFO III

For the calendar year 2021, the management instructed the GSS to coordinate with the responsible offices in observing the compliance of the aforementioned provisions of COA Circular No. 2009-001.

Summary Report generated on at

Nov 2021 5:19:21 PM

30/06/2021

Partially Implemented

The General Service Section (GSS) conducted verification on the submitted contracts. As per verification of the GSS, all “perfected” contracts were submitted to the COA as of February 19, 2021. Unsubmitted contracts, amounting to P8,096,887.11 were either not yet perfected or were cancelled. For the delayed contracts, a total of P233,255,664.41 were cancelled.

Audit Observation/s Audit Recommendation/s Implementation Status No.

145 CAAR 2020 p. 40-43

GSS

01/03/2021

75 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

12. Submission of government contracts

RFO IVB

Management decided that a memorandum will be issued designating the Property Unit to facilitate the urgent signing/execution of the suppliers/contractors of all approved contracts, purchase orders, memorandum of agreement and its timely submission together with and the supporting documents.

BAC 01/03/2021 Partially Implemented Delays in transmittal of procurement documents due to travel restrictions and courier service delays.

Management will strictly implement the Memorandum dated March 16, 2021 designating the Property and Supply Unit to facilitate the submission of certified reproduced copies of government contract and its supporting documents to the COA within five (5) working days after execution/issuance. Taking into consideration advance/e-copies of conformed contracts sent thru email. Strict compliance on the prescribed timeline is being observed effective July 1, 2021.

Audit Observation/s Audit Recommendation/s Implementation Status No.

146 CAAR 2020 p. 40-43

76 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

12. Submission of government contracts

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO V The management strictly complies with the observation.

BAC 01/01/2021 31/12/2021 On-going Implementation The management was now looking into ways in order to minimize, if not eradicate delays caused by the limitations of using the services of document couriers.

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR

147

2020 p. 40-43

Office of Usec.

Gorgonio,

for Administration and Finance 77 Page

Roldan G.

Undersecretary

12. Submission of government contracts

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO X Adhere to the recommendation provided by the finding.

BAC Sec and PSPU 01/03/2021 Partially Implemented COVID 19 restrictions have been a huge contributor in the delay of submission of documents.

The office adheres to the recommendation of the Resident COA Auditor. Efforts have been continuously exerted to comply with the necessary timelines.

Audit Observation/s Audit Recommendation/s Implementation Status No.

148 CAAR

2020 p. 40-43

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 78 Page

12. Submission of government contracts

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

B. Properly accomplish all the needed information in the MOA/PO/WO and their supporting documents, and review for errors/ inconsistencies prior to finalization and/or submission to the Office of the Auditor; and

Fully Implemented Through a memorandum, the Management had instructed all concerned to properly accomplish all the needed information in all government contracts and their accompanying supporting documents.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

149 CAAR 2020 p. 40-43 DA-CO& BAR End-users.AII Concerned Divisions/Units 01/01/2021 31/03/2021

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 79 Page

150 CAAR 2020 p.

40-43

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

12. Submission of government contracts

RFO I & BSWM

Ensure that details in the POs, Jos and Contracts are fully filled-up, and

Admin. and Finance Division/Procure ment Section

01/05/2021 Fully Implemented As part of our ISO quality procedures, all required information shall be completely filled-up and any alterations in the documents are strictly prohibited.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 80 Page

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

151 CAAR 2020 p. 40-43

12. Submission of government contracts

C. Impose sanctions against officials and employees who shall continuously fail to comply with the submission of contracts and POs/WOs in accordance with Section 4.1 and 4.2 of COA Circular No. 2009-001, dated February 12, 2009.

RFO I

Impose sanctions against officials and employees who shall fail to comply with the submission of contracts, POs and Jos.

Admin. and Finance Division 01/05/2021 On-going Implementation Sanctions will be imposed to officials and employees who shall continuously fail to comply with the submission of contracts, POs and Jos in accordance with related COA circulars.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 81 Page

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

12.

Submission of government contracts

Fully Implemented Management submitted to the Audit team the list of personnel assigned to monitor and ensure the submission of contracts within the prescribed period to avoid the imposition of sanctions.

13.

Seven DA offices deducted properly and remitted on time the GSIS premiums and loans of employees amounting to ₱194.110 million, pursuant to RA No. 8291, the GSIS Act of 1997. However, seven DA offices did not deduct properly and remit on time the GSIS premiums and loans of employees amounting to ₱7.247 million, with delays ranging from 3 to 226 days. Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

A. Ensure the timely remittance of all premium payments and loan repayments to GSIS in accordance with the GSIS Act of 1997; and

Personnel Division to

order to properly

Audit Observation/s Audit Recommendation/s Implementation Status No.

BAR All Concerned Divisions/Units 30/06/2021

152 CAAR 2020 p. 40-43 Withholding and remittances of GSIS contributions, loans and employer’s share

2020 p. 43-45 DA-CO Remittance of premium payment and loan repayments Accounting/ Personnel 01/07/2021

82 Page

153 CAAR

31/12/2021 Partially Implemented

update ARA in

remit the withheld amount to GSIS. Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

154 CAAR 2020 p. 43-45

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

155 CAAR 2020 p. 43-45

13.

Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

A. Ensure the timely remittance of all premium payments and loan repayments to GSIS in accordance with the GSIS Act of 1997; and

ATI Accountants were instructed to review the said unremitted amount and make an adjustment for the same and remit the undentified unremitted premium

On-going Implementation ATI remitted the premium payments and loan repayments to GSIS within the required period to be remitted by the agency in pursuance to RA No. 8291

13. Withholding and remittances of GSIS contributions, loans and employer’s share

Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

A. Ensure the timely remittance of all premium payments and loan repayments to GSIS in accordance with the GSIS Act of 1997; and

BAFE

To create a matrix for withholding of GSIS remittances to ensure that what was withheld for the month will be remitted without delay. Close coordination with the GSIS account officer assigned to the Bureau so that new employees for the issuance of GSIS BP number.

Accounting 01/01/2021 28/02/2021 Partially Implemented Remittance for the withheld balance of Due to GSIS as of December 31, 2021 For the period of Jan-Apr 2020 has been made. For the period of JanApril the EBCS handler ensures that the amount withheld for the month is , the EBCS handlers ensure s that the amount withheld for the month is remitted intact.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Withholding and remittances of GSIS contributions, loans and employer’s share

83 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

157 CAAR 2020 p. 43-45

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

13. Withholding and remittances of GSIS contributions, loans and employer’s share

Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

A. Ensure the timely remittance of all premium payments and loan repayments to GSIS in accordance with the GSIS Act of 1997; and

BAR Accounting Unit 31/12/2021 On-going Implementation Due to the Limited allotment for PS (GSIS Contribution), the Accounting Unit is undecided whether it is to be remitted to GSIS or refunded to the concerned employee.

The management had required the Accountant to remit immediately the contributions and loans amounting to P 5,465.02

RFO IVB

13.

Withholding and remittances of GSIS contributions, loans and employer’s share

Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

A. Ensure the timely remittance of all premium payments and loan repayments to GSIS in accordance with the GSIS Act of 1997; and

To address this issue, the management is currently planning to transfer their remittances from GSIS Palawan to GGSIS NCR . The management consulted with the PRES Center Chief to weigh the pros and cons of the said proposal.

Personnel 01/03/2021 On-going Implementation Majority of the late remittances were from the province of Palawan due to the travel restrictions brought about by the community quarantine protocols caused by the pandemic.

We still need to come up with a decision if remittances will be transferred in NCR or will be retained in the provinces but to date all deductions were remitted on time. On-going discussion with provincial offices.

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR 2020 p. 43-45

156

84 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

158

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

13. Withholding and remittances of GSIS contributions, loans and employer’s share

Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

159 CAAR 2020 p. 43-45

13. Withholding and remittances of GSIS contributions, loans and employer’s share

B. Exert effort to analyze and reconcile the unremitted amount and effect remittances, if warranted.

Accounting

Section

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

B. Exert effort to analyze and reconcile the unremitted amount and effect remittances, if warranted. CAAR 2020 p. 43-45 BAFE Accounting Section 01/01/2021 28/02/2021 Fully Implemented Remittances withheld were paid to GSIS per timeline of GSIS law.

01/09/2021

On-going Implementation Reconciliation of account

BSWM Management will do the reconciliation on GSIS Contributions and Loans amounting for prior and current year deductions and remit the unremitted contributions to the GSIS and prepare the subsidiary ledger for each employee to facilitate the monitoring of withholding and remittance of GSIS contribution and loans.

30/09/2021

85 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

160 CAAR 2020 p. 43-45

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

RFO II

13. Withholding and remittances of GSIS contributions, loans and employer’s share

Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

B. Exert effort to analyze and reconcile the unremitted amount and effect remittances, if warranted.

Held a meeting between the Accounting and Personnel Section, who are in charge of the deductions and remittances and identified solutions. Necessary adjustments have been affected to correct discrepancies

On-going Implemented Management to closely monitor the corect premiums of each employees

13. Withholding and remittances of GSIS

contributions, loans and employer’s share

B. Exert effort to analyze and reconcile the unremitted amount and effect remittances, if warranted.

161 CAAR 2020 p. 43-45 RFO V The management strictly complies with the observation.

On-going Implementation Accounts already reconciled and documents needed for refunds are now being prepared for remittance or refund as needed.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

Cash Unit, HRMS

01/01/2021 31/12/2021

Accounting Section

86 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

163 CAAR 2020 p. 45-46

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

13. Withholding and remittances of GSIS contributions, loans and employer’s share

B. Exert effort to analyze and reconcile the unremitted amount and effect remittances, if warranted.

RFO VI Accountants will make further analysis and reconcile the unreconciled balance of “Due to GSIS” account.

Partially Implemented Management instructed accountants to regularly monitor the monthly remittances, GSIS premiums and loan amortizations of regular employees and to remit before the 10th day of the following month. The “Due to GSIS” account for FY 2020 was fully reconciled. Thorough reconciliation is being done in the beginning balance of “Due to GSIS” account for FY 2019 and prior years. If necessary adjustments are needed, it will be adjusted and corrected immediately.

14. Withholding and remittance of Philhealth contributions and employer's share

Twelve DA offices deducted properly and remitted on time the Philhealth premiums amounting to P34.158 million pursuant too RA No. 7875, as amended by RA No. 9241 (National Health Insurance Act of 1995). However, five offices did not remit on time, wiith delay by 4 to 336 days, while eight offices had total year-end balance of P1.249 million, of which,0.882 million were unremitted balances while the remaining amount of P0.0367 million is subject for reconciliation.

A. Remit the PhilHealth contributions on time to avoid imposition of penalties and surcharges; and

DA-CO, BSWM Accounting Section Fully Implemented Accounting Division has already remitted all the withheld contributions

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

CAAR 2020 p. 43-45

162

87 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

164 CAAR 2020 p. 45-46

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

14. Withholding and remittance of Philhealth contributions and employer's share

A. Remit the PhilHealth contributions on time to avoid imposition of penalties and surcharges; and

ATI HRMO and Accounting. Fully Implemented. Penalty was shouldered by the HRMO Officials due to the discrepancy of amount.

ATI remitted the Philhealth contributions within the required period to be remitted by the agency in pursuance to RA No. 7875, as amended by RA No. 9241

165 CAAR 2020 p. 45-46

14. Withholding and remittance of Philhealth contributions and employer's share

A. Remit the PhilHealth contributions on time to avoid imposition of penalties and surcharges; and

BAR For immediate compliance Accounting Unit 31/12/2021 On-going Implementation Due to limited allotment for PS (Philhealth Contribution), the Accounting Unit is undecided whether it is to be remitted to Philhealth or refunded to the concerned employee.

The Management had required the Accountant to remit immediately the contribution of P1,772.78; and henceforth, remit the contributions on time to avoid imposition of penalties and surcharges. Accordingly, upon review by the Accounting Unit, Subsidiary Transaction of "Due to Philhealth" amounting to P1,773.13 was already adjusted/corrected and moved to "Due to Officers and Employees".

Audit Observation/s Audit Recommendation/s Implementation Status No.

88 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

166 CAAR 2020 p. 45-46

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

14. Withholding and remittance of Philhealth contributions and employer's share

B. Exert extra effort to locate the documents/records and analyze/reconcile the unremitted balances and remit the balances to Philhealth, if warranted.

BSWM Management will do the reconciliation on Philhealth Contributions withheld in prior years and remit the unremitted contributions and prepare the subsidiary ledger for each employee to facilitate the monitoring of withholding and remittance of Philhealth contributions.

14. Withholding and remittance of Philhealth contributions and employer's share

B. Exert extra effort to locate the documents/records and analyze/reconcile the unremitted balances and remit the balances to Philhealth, if warranted.

01/01/2021 31/12/2021 Fully Implemented Accounts already reconciled, refund and adjustments has already taken up in the agency books as of July 31, 2021 per JEV # 2021-07-003627

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Audit Observation/s Audit Recommendation/s Implementation Status No.

Nov 2021 5:19:21 PM

Accounting Section 01/08/2021 30/08/2021 On-going Implementation Reconciliation of account

167 CAAR 2020 p. 45-46 RFO V Cash Unit, HRMS Accounting Section 89 Page

169 CAAR 2020 p. 45-46

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

14. Withholding and remittance of Philhealth contributions and employer's share

B. Exert extra effort to locate the documents/records and analyze/reconcile the unremitted balances and remit the balances to Philhealth, if warranted.

RFO VI Accountants will make further analysis and reconcile the unreconciled balance of “Due to Philhealth” account.

Accounting Section 01/01/2021 31/12/2021 Partially Implemented Philhealth premiums of the employees were remitted on time or before cut off.

2. Reconciliation for FY 2020 was already done and necessary adjustments were made to correct the discrepancy.

3.Reconciliation of the “Due to Philhealth” Account is ongoing for FY 2019 and prior years. If necessary adjustments are needed it will be adjusted and corrected immediately.

14.

B. Exert extra effort to locate the documents/records and analyze/reconcile the unremitted balances and remit the balances to Philhealth, if warranted.

RFO XII

To reconcile the differences noted in withholdings and remittances and ensure correct remittance for current periods.

Accounting section and Human Resource Section

01/01/2021 Partially Implemented Prior year differences are still under reconciliation Ensured correct remittance for current periods.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

168 CAAR 2020 p. 45-46

Withholding and remittance of Philhealth contributions and employer's share

90 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

171 CAAR 2020 p. 46-48

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

15. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

Twelve DA offices deducted properly and remitted the Pag-IBIG premiums and loans of employees amounting to ₱ 47.010 million without delay, pursuant to RA No. 9679 or the Pag-IBIG Fund Law of 2009. However, five DA offices did not remit on time the Pag-IBIG premiums and loans, with delay by 3 to 56 days, while seven DA offices had an outstanding year-end balance of ₱3.786 million of which ₱1.111 million were unremitted balances while the remaining amount of ₱2.675 million is subject for reconciliation.

A. Remit on time all withheld contributions and loan amortizations to Pag-IBIG in accordance with RA No. 9769; and

Fully Implemented Accounting Division has already remitted all the withheld contributions and loans amortizations within the required period to be remitted by the agency in pursuance to RA No. 9679

15. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

A. Remit on time all withheld contributions and loan amortizations to Pag-IBIG in accordance with RA No. 9769; and

RFO IVB

Majority of the late remittances were from the province of Palawan due to the travel restrictions brought about by the community quarantine protocols caused by the pandemic. The management instructed both the Accounting and Personnel Unit to closely monitor the remittances and payments of Pag-IBIG remittances. In addition, the Cashier Unit also has been instructed to coordinate with PRES Admin staff to fast track the sending of the relevant documents to the provincial offices.

Personnel 01/03/2021 Partially Implemented On-going discussion with provincial offices

We still need to come up with a decision if remittances will be transferred in NCR or will be retained in the provinces but to date all deductions were remitted on time.

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

Summary Report generated on at

170 CAAR 2020 p. 46-48 DA-CO & ATI Accounting Section/HRMO 01/01/2021 30/06/2021

91 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

173 CAAR 2020 p. 46-48

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

15. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

A. Remit on time all withheld contributions and loan amortizations to Pag-IBIG in accordance with RA No. 9769; and

complies with the observation.

15. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

B. Exert extra effort to locate the documents/records and analyze/reconcile the unremitted balances and remit immediately the balances to Pag-IBIG, if warranted, to avoid penalties and enable all employees to enjoy the privileges and benefits accruing to the member.

BSWM Accounting Section 01/10/2021 31/10/2021 Not Yet Implemented Management will do the reconciliation on Pag IBIG Contributions withheld in prior years and remit the unremitted contributions to the Pag-IBIG and prepare the subsidiary ledger for each employee to facilitate the monitoring of withholding and remittance of Pag-IBIG contributions.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Nov

5:19:21 PM

2021

Summary Report generated on at

172 CAAR 2020 p. 46-48 RFO V The management strictly

Cash Unit, HRMS Accounting Section 01/01/2021 31/12/2021 On-going Implementation Observance of timely Pag Ibig remittances

92 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

15. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

The management strictly complies with the observation.

31/12/2021 On-going Implementation

The management has directed HRMS, Cash Unit, and Accounting Section to fully coordinate with each other for effective and timely remittance and reconciliation of the account. Mostly reconciled and only P5,467.32 remains unreconciled and subject for thorough documents/ records tracking.

15. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

RFO VI Accountants will make further analysis and reconcile the unreconciled balance of “Due to Pag-ibig” account

Accounting Section 01/01/2021 31/12/2021 Partial Implementation Accountants were instructed to monitor remittances of PagIBIG contributions and loan amortizations to avoid penalties; Ongoing analysis and reconciliation is being done on the beginning balance of “Due to PagIBIG” account and all transactions for FY2019 and prior years. Payroll deductions and remittances for 2020 have no variance. Starting March 2021 all necessary and appropriate adjustments will be made to correct erroneous entries, double posting and reclassification of “Due to Pag-IBIG” on prior years until year Dec. 2019 to ensure reliability of amounts reflected in the financial statements.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

174 CAAR 2020 p. 46-48 RFO V

Cash Unit, HRMS Accounting Section 01/01/2021

175 CAAR 2020 p. 46-48

93 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

15. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

To reconcile the differences noted in withholdings and remittances and ensure correct remittance for current periods.

Accounting section and Human Resource Section

01/01/2021 Partial Implementation Prior year differences are still under reconciliation

Ensured correct remittance for current periods.

177 CAAR 2020 p. 48-49

16. Withholding and remittance of taxes

Seven DA offices properly withheld and remitted without delay taxes on gross compensation income from officials and employees and government purchases and contract of services from suppliers/contractors amounting to ₱279.570 million, in accordance with Revenue Regulation No. 10-2008 dated July 8, 2008. However, four DA offices did not remit on time the taxes withheld, with delay by 1 to 304 days, while fourteen DA offices had an outstanding year-end balance of ₱ 58.358 million, of which ₱ 55.272 million were current year unremitted balances while the remaining amount of ₱3.266 million is prior year balance subject for reconciliation.

A. Remit the amount of taxes withheld within the prescribed date in compliance with BIR regulation;

DA-CO & BAFE Accounting Section Fully Implemented The Accounting Division has already remitted all the withheld taxes as of December 31, 2020.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

176 CAAR 2020 p. 46-48 RFO XII

94 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

178 CAAR 2020 p. 48-49

16. Withholding and remittance of taxes

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

A. Remit the amount of taxes withheld within the prescribed date in compliance with BIR regulation

BAR Accounting Unit 01/03/2021 On-going Implementation The Accounting Unit shall strictly ensure that remittances of the taxes withheld within the dates prescribed by the BIR.

179 CAAR 2020 p. 48-49

16. Withholding and remittance of taxes

B. Trace the existence of unreconciled balances by analyzing the unremitted balances and remit immediately the balances to the BIR, if warranted, to avoid penalties; and

BAR Accounting Section 31/12/2021 On-going Implementation The Accounting Unit is already analyzing the unremitted balances amounting to P249,390.58. This shall be remitted immediately to the BIR, if warranted.

Audit Observation/s Audit Recommendation/s Implementation Status No.

95 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

181 CAAR 2020 p. 48-49

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

16.

Withholding and remittance of taxes

B. Trace the existence of unreconciled balances by analyzing the unremitted balances and remit immediately the balances to the BIR, if warranted, to avoid penalties; and

On-going Implementation Management will do the reconciliation on taxes withheld in prior years and current years and remit the unremitted taxes withheld to the BIR and prepare the subsidiary ledger for each payee to facilitate the monitoring of withholding and remittance of taxes.

16. Withholding and remittance of taxes

B. Trace the existence of unreconciled balances by analyzing the unremitted balances and remit immediately the balances to the BIR, if warranted, to avoid penalties; and

RFO VI Accountants will make further analysis and reconcile the unreconciled balance of “Due to BIR” account.

Accounting Section 01/01/2021 31/12/2021 Partially Implemented Analysis and reconciliation is being done on the “Due to BIR” account.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

180 CAAR 2020 p. 48-49 BSWM Accounting Section 01/10/2021 31/10/2021

96 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

182

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

183 CAAR 2020 p. 48-49

16.

Withholding and remittance of taxes

Accounting section and Human Resource Section

Partially Implemented Prior year differences are still under reconciliation

Prior year differences are still under reconciliation.

16.

Withholding and remittance of taxes

C. Unreconciled balances and delay in remittance of taxes to strengthen the review over the recording of tax transactions and remittance of taxes withheld.

RFO V To effect immediate reconciliation of the account

Accounting Section 01/01/2021 31/12/2021 On-going Implementation Ongoing reconciliation of taxes was now being conducted

97 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

CAAR 2020 p. 48-49

B. Trace the existence of unreconciled balances by analyzing the unremitted balances and remit immediately the balances to the BIR, if warranted, to avoid penalties; and 01/01/2021

RFO XII Management will reconcile the differences noted in withholdings and remittances and ensure correct remittance for current periods.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

16. Withholding and remittance of taxes

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

C. Unreconciled balances and delay in remittance of taxes to strengthen the review over the recording of tax transactions and remittance of taxes withheld.

VI Accounts will be instructed to reconcile monthly remittances of “Due to BIR” account prior to its remittance.

Section 01/01/2021 31/01/2021 On-going Implementation Instructions were given to Accountants to regularly reconcile monthly remittances of “Due to BIR” account prior to its remittance.

185 CAAR 2020 p. 48-49

16. Withholding and remittance of taxes

C. Unreconciled balances and delay in remittance of taxes to strengthen the review over the recording of tax transactions and remittance of taxes withheld.

BAFE

The Bureau adheres to the recommendation.

Accounting Section 01/01/2021 28/02/2021 On-going Implemented Reviews and remit all taxes withheld per BIR ruling..

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

184 CAAR 2020 p. 48-49 RFO

Accounting

98 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

2020

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

17. Hiring of and payments to job order and contract of service individuals

The agency hired 9,491 individuals covered with Contract of Service (COS) or Job Order (JO) with corresponding payments amounting to ₱1,941.407 million as of December 31, 2020 pursuant to CSC COA DBM JC No. 1 dated June 15, 2017, as amended. However, deficiencies in the hiring and payment to JO/COS were observed in DA-CO, BSWM, BAR, RFOs I and XI.

A. Revisit the staffing of COS and JO individuals as against the organizational structure of permanent employees; (ii) prioritize existing COS/JO individuals in the appointment to its vacant positions provided that these workers meet the appropriate eligibility and other qualification requirements for the position as required in CSC- COA-DBM JC No. 1 s. 2017, as amended;

HRMO 01/01/2020 On-going Implemented

We are already reviewing the Agency's functions, system and procedures, organizational structure and staffing to determine the appropriate manpower complement for our programs, projects and activities. Management already prioritizes existing COS/JO individuals in the appointment to its vacant positions provided that these workers meet the appropriate eligibility and other qualification requirements for the position as required in CSC- COA-DBM JC No. 1 s. 201

17. Hiring of and payments to job order and contract of service individuals

B. Prepare internal rules/guidelines on the contract preparation and processing of payment to individual Contract of Service

BSWM Management to prepare internal rules/guidelines on the contract preparation and processing of payment to individual Contract of Service including, among others, the recommended processes above mentioned.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

186 CAAR 2020 p. 50-52 RFO

187 CAAR

p. 50-52

Personnel Section 01/08/2021 31/08/2021 On-going Implementation

99 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

188

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

CAAR 2020 p. 50-52

17. Hiring of and payments to job order and contract of service individuals

RFO 1

17. Hiring of and payments to job order and contract of service individuals

D. Stop from entering into service contracts for services not related or incidental to the agency's functions and operations and hiring private lawyers without the written conformity and concurrence of the Office of the Solicitor General and COA.

On-going Implementation

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Audit Observation/s Audit Recommendation/s Implementation Status No.

BAR

C. Submit results of review and alignment in the DAapproved compensation matrix of the positions and compensation of COS individuals; and 31/12/2021

Human Resource Management Unit (HRMU)

The Management had already instructed the HRMU to submit the results of the review and alignment. Said results shall be immediately forwarded to the Audit Team once accomplished.

HRMS 01/05/2021 30/06/2021

100 Page

189 CAAR 2020 p. 50-52

Admin. and Finance Division and

Fully Implemented This office has discontinued the hiring of contract of service with individuals who will be detailed to another agency including the hiring of private lawyer without written conformity of the Office of the Solicitor General (OSG) and concurrence of COA.

18. GAD Budget, Utilization and Accomplishments

Over-all, the agency allocated the amount of ₱ 10,320.085 million or 18.51 percent of the total appropriations of ₱ 55,759.680 million for GAD programs and activities, in compliance with Section 31 of RA No. 11465 or the GAA for FY 2020. Moreover, planned activities were implemented with fund utilization of ₱2,284.483 million or 22.14 percent. However, RFOs VII, and XII failed to comply with the five percent requirement.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

A. Require the GAD Secretariat to submit to the Audit Team the AR within the prescribed period;

Fully Implemented The Office of the GAD Secretariat has already submitted the report to PCW on March 12, 2021 and to COA on March 30, 2021. RFO X - Reports are already submitted

18. GAD Budget, Utilization and Accomplishments

B. Prepare a plan, program, projects and activities for the GAD in accordance with Sec 31 of the General Provision of the GAA and PCW Memorandum Circular (MC) 2019-02, and submit the corresponding accomplishment report thereof;

BAFE Management will be conducting the workshop on the HGDG design checklist by July 2021 or as soon as a New Human Resource Management Officer (HRMO) will be appointed since the GAD alternate is acting as Planning Officer and OIC-HRMO.

BAFE GAD Focal 01/07/2021 31/12/2021

Partially Implemented The workshop was postponed due to lack of personnel support as the GAD Focal was designated OICHRMO and is at the same time the Planning Officer.

The GPB CY 2020 was submitted to the DA Central Office GAD Focal for their consolidation in compliance with PCW MC. No. 2019-02.BAFE GAD focal will copy furnish the Commission on Audit to DA. Coordinated with the GAD Resource Person (RP) who conducted the orientation on the use of Gender Analytical Tools as the same RP who will conduct the workshop on HGDG checklist.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

190 CAAR 2020 p. 52-55 DA-CO & RFO X GAD Secretariat/Focal 30/04/2021

191 CAAR 2020 p. 52-55

101 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

18. GAD Budget, Utilization and Accomplishments

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

C. Attend trainings/orientation/worksho p related to GAD to learn the proper preparation of GPB;

BSWM Management will participate in trainings/orientation/worksho p related to GAD to learn the proper preparation of GAD

18. GAD Budget, Utilization and Accomplishments

D. Direct the GFPS to allocate at least five percent of the agency budget for the formulation and implementation of GPB and maximize utilization of GAD allocated budget to be more responsive in addressing gender issues;

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

at Ref.No. Date Observations and Recommendations Action Plan AGENCY ACTION PLAN Responsible Office Target Implementation From To Reason of Partial/ Delay/NonImplementation Action Taken Management Comments Remarks

Summary Report generated on

192

PB GAD Focal person 01/04/2021 31/12/2021 On-going Implementation

CAAR 2020 p. 52-55

Office of Usec.

102 Page

193 CAAR 2020 p. 52-55

Roldan G. Gorgonio, Undersecretary for Administration and Finance

18. GAD Budget, Utilization and Accomplishments

Moreover, planned activities were implemented with fund utilization of ₱2,284.483 million or 22.14 percent.

However, RFOs VII, and XII failed to comply with the five percent requirement.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

E. Strictly follow the procedures regarding the preparation and timely submission of GPB and AR; and

On-going Implementation Management will ensure compliance with GAD laws, rules and regulations in the preparation of GAD PB and AR

18. GAD Budget, Utilization and Accomplishments

E. Strictly follow the procedures regarding the preparation and timely submission of GPB and AR; and

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

194 CAAR 2020 p. 52-55 BSWM GAD focal person 01/04/2021 30/04/2021

195 CAAR 2020 p. 52-55 RFO X GAD Focal 01/03/2021 30/04/2021 Fully Implemented Reports are already submitted. Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 103 Page

197

CAAR 2020 p.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

18. GAD Budget, Utilization and Accomplishments

F. Accomplish correctly and supply all data required in the GAD AR form and submit the GPB to the Audit Team within the prescribed period

Implemented GAD Focal and Secretariat already submitted the necessary document last. March 29, 2021.

19. Senior Citizen and Person with Disability (SPCD) plans/programs

Twelve DA offices spent ₱ 152.649 million in the implementation of the activities for the SCPD during the year; while eight DA offices did not formulate plans, programs and projects for SCPD, contrary to Section 32 of RA No. 11465, the GAA for FY 2020.

01/07/2021 31/12/2021 On-going Implementation The Office of the Undersecretary for Special Concern coordinated with the GSD for the plan of making the DA building SCPD-friendly.

19. Senior Citizen and Person with Disability (SPCD) plans/programs

A. Formulate plans, programs and activities intended to address the concerns of SCPD; and

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Planning Section 01/07/2021 31/12/2021 Partially Implemented Due to lack of personnel support, we were constrained to prioritize activities. 104 Page

Coordinations were made to the Office of the Undersecretary for Special Concerns for the probable interventions where BAFE may participate

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

196 CAAR 2020 p. 52-55 RFO X GAD Focal

Fully

A. Formulate plans, programs and activities intended to address the concerns of SCPD; and 55-57

DA-CO Office of the Undersecretary for Special Concerns

198 CAAR 2020 p. 55-57 BAFE Management will formulate plans for the SC and PWDs in coordination with DA.

19. Senior Citizen and Person with Disability (SPCD) plans/programs

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

19. Senior Citizen and Person with Disability (SPCD) plans/programs

A. Formulate plans, programs and activities intended to address the concerns of SCPD; and

30/11/2021 On-going Implementation Management will formulate new plans, programs and projects intended to address the concerns of SCPDs, insofar as it relates to their mandated functions, and integrate the same in BSWM regular activities in compliance with the general provision of the GAA

A. Formulate plans, programs and activities intended to address the concerns of SCPD; and

Partially Implemented Formulate plans, programs and projects for SCPD in compliance with RA

19. Senior Citizen and Person with Disability (SPCD) plans/programs

A. Formulate plans, programs and activities intended to address the concerns of SCPD; and

Audit Observation/s Audit Recommendation/s Implementation Status No.

199 CAAR 2020 p. 55-57 BSWM Personnel Section 01/11/2021

200 CAAR 2020 p. 55-57 RFO VII 01/01/2021

31/12/2021

11465

201 CAAR 2020 p. 55-57 RFO X SCPD Focal 01/03/2021 30/04/2021

Office of Usec.

and Finance 105 Page

Fully Implemented Reports are already submitted

Roldan G. Gorgonio, Undersecretary for Administration

202

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

203 CAAR 2020 p. 57-61

19. Senior Citizen and Person with Disability (SPCD) plans/programs

20. Delayed implementation of ODA Funded Projects

The 67 ODA Funded IBuild and I-Reap Subprojects amounting to ₱ 2,178.626 million are already beyond the target date of completion thereby delaying the delivery of benefits to the intended recipients.

We reiterated our prior year’s recommendation and Management agreed to request the Local Chief Executive (LCE) of the 33 proponent LGUs to coordinate with the PSOs on the identified causes of delays to further prevent losses in terms of time and resources which were kept idle to the disadvantage of the intended users.

30/04/2021 Fully Implemented Reports are already submitted

The project has instituted measures to catch-up with the delays and has put in place strategies enabling expeditious work to ongoing PRDP subprojects. Of the 21 delayed I-BUILD subprojects, 14 subprojects are already completed with an amount of P 938.42 million while (2) ongoing projects have positive variance against their target accomplishment. Contractors were required to submit catch-up plan s to ensure that all these subprojects will be finished on time. As of June 2021, IBUILD physical and financial progress stand at 94% and 88%, respectively at 81% time elapsed under the original loan (OL). While 67% time elapsed of first additional financing (AF -1), the IBUILD has so far attained 76% physical and financial performance against the time elapsed of OL and AF-1.

106 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

B. Submit accomplishment reports on the plans, programs and projects intended to address concerns of SCPD. CAAR 2020 p. 55-57 RFO X SCPD Focal 01/03/2021

PRDP PRDP 01/01/2021 31/12/2022 Partially Implemented The project was granted a two-year time extension for both OL ans AF-1 to complete physical implementation until December 2022.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

21. Receipt and utilization of Disaster Related Fund

The agency received disaster related funds amounting to ₱3,495.255 million, of which ₱ 3,153.998 million or 90.24 percent was obligated in CY 2020. Out of the reported obligations, ₱ 1,894.17 million or 60.06 percent was disbursed during the year. However, deficiencies in the utilization of disaster funds were observed in RFOs IVA, X and XI.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

21. Receipt and utilization of Disaster Related Fund

A. Coordinate with the LGU to collect the master list with the signature of individual farmer-beneficiaries to facilitate validation by the Audit Team, otherwise limit the assistance to be provided to the LGU or other partners in the future;

To coordinate with LGU the collection of master lists with the signature of individual farmer-beneficiaries. To closely monitor the distribution of the items and reconcile the actual recipients per province/municipalities with the target number of individuals or groups

Partially Implemented Due to travel restrictions and quarantine protocols, program coordinators had a time collecting the masterlist of beneficiaries

To follow up concerned LGU and beneficiaries thru program coordinators to submit immediately the required documents. To refrain from paying suppliers with no duly signed masterlist of farmer-beneficiaries or other end-use acknowledging receipts

B. Submit strictly the Report on the Receipt and Utilization of the DRRMF sourced from GAA and Report on the Receipt and Utilization of Cash Donations, if any, on the 5th day following the end of each month to the Office of the Auditor; and (ii) instruct the PSPU to prepare and maintain an inventory list of all procured and donated items based on the updated Stock Cards and Property Cards as prescribed in Item VI of COA Circular No. 2014 -02 on the Inventory and Monitoring of all Procured and Donated Supplies, Materials, Equipment and Relief Goods;

Audit Observation/s Audit Recommendation/s Implementation Status No.

204 CAAR 2020 p. 61-63 RFO IVA

Program Coordinators 01/01/2021

31/12/2021

205 CAAR 2020 p. 61-63 RFO X Accounting and Budget 01/03/2021 30/04/2021 Fully Implemented The report is already submitted. The office is fervently complying to the findings. Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 107 Page

21. Receipt and utilization of Disaster Related Fund

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

C. Provide/furnish the office of the Auditor report on the receipt and utilization of funds as prescribed in Annex H of COA Circular No. 2014 -002; and (ii) publish/ post the reports of receipt and utilization of DRRMF in the Agency’s official websites being an implementing agency for transparency and in consonance with COA Circular No. 2014-002.

Fully Implemented

The funds were requested in May 2019 and the funds were released only in October of the same year when the rainfall pattern had already normalized and cloud seeding operations were no longer needed. No gasoline station in the calamity-stricken areas(Magsaysay and Digos City) cannot commit to supply the fuel subsidy intervention for the open surface pump. The Activity did not push through. For certified inbred seeds rice was cancelled due to no available stocks from any supplier. In 202, Rice program had already procured 5,000 inbred rice seeds under its buffer stocking program, which already covered affected farmers.

22.

Audit suspensions, disallowances and charges during the year and in prior years amounted to ₱ 1,330.665 million and ₱ 10,506.093 million, respectively or a total of ₱ 11,836.758 million, of which only ₱2,382.722 million or 20.13 percent were settled during the year, leaving unsettled suspensions, disallowances and charges amounting to ₱9,454.036 million as of the end of the year.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

206 CAAR 2020 p. 61-63 RFO XI PMED/FOD

Audit suspensions, disallowances and charges A. Comply with laws, rules and regulations to avoid audit suspensions, disallowances and charges; 207 CAAR 2020 p. 64-68 RFO III, BAR Accounting Unit 31/12/2021 On-going Implementation Appeal for prior year audit disallowances is on-going.

108 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

208 CAAR 2020 p. 64-68

22. Audit suspensions, disallowances and charges

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

209 CAAR 2020 p. 64-68

22. Audit suspensions, disallowances and charges

A. Comply with laws, rules and regulations to avoid audit suspensions, disallowances and charges;

CAR Accounting and Implementing Units

01/08/2020 On-going Implementation Management to ensure that every transaction of the agency be properly analyzed and in compliance with the laws,rules and regulations to avoid issuance of audit suspensions and disallowances.

210 CAAR 2020 p. 64-68

22. Audit suspensions, disallowances and charges

B. Continue monitor the settlement of all suspensions, disallowances and charges and to record disallowances with issued NFDs pursuant to the Revised RRSA;

DA-CO, BAR Accounting Unit 31/12/2021 On-going Implementation Continuous monitoring of the settlement of suspensions and disallowances is being done.

B. Continue monitor the settlement of all suspensions, disallowances and charges and to record disallowances with issued NFDs pursuant to the Revised RRSA;

01/08/2020 On-going Implementation Settlement of disallowances is recorded upon payment.

Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of

CAR Accounting and Implementing Units 109 Page

22. Audit suspensions, disallowances and charges

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

212 CAAR 2020 p. 64-68

22. Audit suspensions, disallowances and charges

C. Require the Chief Accountant to send demand letters to the persons liable and responsible for the settlement of audit disallowances that have attained finality, and compliance with the requirements of audit suspensions issued;

DA-CO, BAR Accounting Unit 31/12/2021 On-going Implementation The Accounting Unit shall send demand letters to the persons liable and responsible for the unsettled disallowances and suspensions and results thereof shall be immediately forwarded to the Audit Team.

CAR Accounting and Implementing Units

01/08/2020 On-going Implementation Management through the Accounting Unit will send another set of demand letters to persons liable.

Audit Observation/s Audit Recommendation/s Implementation Status No.

211 CAAR 2020 p. 64-68

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 110 Page

22. Audit suspensions, disallowances and charges

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

D. Require those persons liable with NDs that are final and executory to refund, in full, the amount due from them, and in case they opt to settle on installment basis, strictly comply with COA Resolution 2017-021 relative to the rules and regulation in the settlement of disallowance.

22. Audit suspensions, disallowances and charges Audit suspensions, disallowances and charges during the year and in prior years amounted to ₱ 1,330.665 million and ₱ 10,506.093 million, respectively or a total of ₱ 11,836.758 million, of which only ₱2,382.722 million or 20.13 percent were settled during the year, leaving unsettled suspensions, disallowances and charges amounting to ₱9,454.036 million as of the end of the year.

Summary Report generated on at

RFO VI Resubmit to COA Regional Office a letter requesting authority for staggered payment of P1, 500.00 for the settlement of employees’ monthly settlement but the management will continue to deduct P1,500.00 from salaries of concerned employees.

Nov 2021 5:19:21 PM

Accounting Section 01/01/2021 31/12/2021 On-going Implementation Management submitted a letter request for the staggered payments dated March 12, 2021 with attached supporting documents needed for the evaluation. As of this date we still imposed payroll deductions of P1,500.00 for each employee, for those employees whose deduction is less than P1,500.00, a letter was sent to the personnel section requesting strict implementation of a P1,500.00 deductions for all employees with disallowances. For the year 2020, before issuance of clearances of all retiring employees, they were required to settle their disallowances thru deductions upon receipt of their terminal leave benefits.

BAR Accounting Unit 31/12/2021 On-going Implementation The Accounting Unit shall require those persons liable with NDs to settled said balances through the issuances of demand letters

Audit Observation/s Audit Recommendation/s Implementation Status No.

213 CAAR 2020 p. 64-68

214 CAAR 2020 p. 64-68

111 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

22. Audit suspensions, disallowances and charges

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

CAR Management through the Accounting Section will seek authority to deduct disallowances from remaining claims of the concerned individuals or clients.

Accounting and Implementing Units

01/08/2020 Not Yet Implemented To deduct the disallowed amount from the salary of employees or from retention of the supplier. On-going settlement. As of August 3, 2021, an amount of P1, 978,437.71 has been settled.

217 CAAR 2020 p. 68-71

23. Receipt, utilization and disbursement of funds

Overall, the agency’s fund utilization/obligation under the Bayanihan I and II for COVID-19 initiatives of ₱ 24,842.138 million is 91.89 percent compared to its allotment of ₱27,0354.97 million with unobligated amount of ₱2,192.83 million due to the delays in the procurement process, non-implementation of projects due to unavailability of seeds and late release of funds.

A. Ensure the attainment of the purpose for which the said funds were received to prevent the expiration of allotment and the reversion of unexpended obligations;

216 CAAR 2020 p. 68-71 RFO VI

The Management will ensure that balances of the funds will be fully liquidated before expiry of Bayanihan Funds.

Banner Programs 01/01/2021 31/12/2021 Partially Implemented Waiting for Notice of Cash Allocation (NCA) Rice Resiliency Program for Inorganic Fertilizers funds were released last March 24, 2021 per check no. 3115396 for P150M the remaining amount of P50.405M was already included in the request for Accounts Payable with DBM last April 21, 2021.

RFO VI

23.

Receipt, utilization and disbursement of funds

B. fast track the implementation and completion of programs, projects and activities, optimize fund, disbursement and cash utilization to ensure delivery of goods and services to the intended beneficiaries

The Management will ensure that balances of the funds will be fully liquidated before expiry of Bayanihan Funds.

Banner Programs 01/01/2021 31/12/2021 Partially Implemented Non-submission of liquidation report For Bayanihan II Funds, Cattle Feedlot Fattening Project were also released in full amount except for Municipality of Binalbagaan which was released this April 6, 2021 with LDDAP No. 04-001-2021 for P5M. For the Poultry Multiplier Farm Project, it was released to WVSU-CAF last April 6, 2021 with LDDAP No. 04-002-2021 for P5M.

Out of 8,945 heads targeted, 7,912 heads were already delivered or 88% accomplished.

Audit Observation/s Audit Recommendation/s Implementation Status No.

215 CAAR 2020 p. 64-68

Office of Usec. Roldan G. Gorgonio,

for Administration and Finance 112 Page

Undersecretary

23. Receipt, utilization and disbursement of funds

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

C. accomplish the Approved Program of Work and Project Expenditures or Estimated Expenses indicating the project objectives and expected output and other details.

The Management will ensure that balances of the funds will be fully liquidated before expiry of Bayanihan Funds.

All Banner Programs and AMAD were asked to properly monitor implementation of all funds downloaded to different LGUs, and COS. RAED was also instructed to continuously and strictly monitor construction of all infrastructure projects under COVID 19 funds to meet the deadline and expiry of funds on June 30, 2021.

24. Procurement of Fertilizer, seeds and other agricultural products

Procurement of various goods and services of seven DA offices with 31 POs amounting to ₱ 1,004.970 million were in accordance with Section 53.2 of the 2016 Revised Implementing Rules and Regulation (IRR) of RA No. 9184 (Procurement Law) and GPPB Resolution No. 2020-001, from preparation of project requirements to award of contract. However, procurement contracts amounting to ₱ 2,075.653 million of nine DA Offices were processed, approved and awarded to various suppliers/consultants/contr actors despite lacking supporting documents required under Section 3.6 of GPPB Resolution No. 2020-001.

A. Require the Procurement Officer to submit the completed PO/contracts and supporting documents in accordance with the 2016 Revised IRR of RA No. 9184 and GPPB Circular No. 01 -2020;

219 CAR

To ensure that the applicable mode of procurement is in accordance with RA No. 9184 and its IRR

31/12/2021 Not Yet Implemented Rice, Corn and Livestock procurements were from the Agency's budget for the year tagged as "For Later Release" because DBM had not yet release the fund in time of the approval of the GAA. Since the agency's implementing the EPP (Early Procurement Process) , preprocurement process started the prior year. However, when pandemic hit and since these were tagged as FLR Projects.

Audit Observation/s Audit Recommendation/s Implementation Status No.

218 CAAR 2020 p. 68-71 RFO VI

Banner Programs 01/01/2021 31/12/2021 Partially Implemented Non-submission of liquidation report

01/01/2021

113 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

24. Procurement of Fertilizer, seeds and other agricultural products

However, procurement contracts amounting to ₱ 2,075.653 million of nine DA Offices were processed, approved and awarded to various suppliers/consultants/contr actors despite lacking supporting documents required under Section 3.6 of GPPB Resolution No. 2020-001.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

B. Instruct the Bids and Awards Committee to carefully review the appropriateness of mode of procurement before commencing with procurement and strictly adhere to the rules and procedures prescribed in the Revised IRR of R.A. No. 9184 and other GPPB issuances especially in relation to alternative modes of procurement; and

24. Procurement of Fertilizer, seeds and other agricultural products

C. Use negotiated procurement (emergency cases) whenever applicable, in accordance with Section 53.2 of the 2016 Revised IRR of RA No. 9184 and other related GPPB issuances.

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

Summary Report generated on at

220

221 Office of Usec. Roldan G.

for Administration and Finance 114 Page

Gorgonio, Undersecretary

223

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

25. Distribution of fertilizers and seeds and other agricultural products

Five DA offices distributed to beneficiaries the assorted vegetable seeds and livestock amounting to ₱37.471 million, while the distribution of seeds, fertilizers, livestock and feeds in seven DA offices amounting to ₱1,019.499 million were not compliant with DA Memorandum Order (MO) Nos. 19 and 31, series of 2020, Items A and B.II of DA MC No. 26, series of 2020, DA MC No. 12 s. 2020, and DA MO No. 52.

A. Submit the identified lacking documents in consonance with various DA Memoranda and Circulars for validation;

CAR 01/01/2021 31/12/2021 Not Yet Implemented Acknowledgement Receipts for 480,552 kgs (65%) are submitted already to COA thru AFD Accounting from April 16-June 10, 2021. The remaining ARs (35%) are on hand and under review/evaluation at Rice Program Coordinating Unit which is to be submitted to COA within the month of August 2021.

CAAR 2020 p.

25. Distribution of fertilizers and seeds and other agricultural products

01/01/2021

Management to observe the applicable guidelines and recommended modules.

31/12/2021 Not Yet Implemented Documents to be submitted within the months of July and August 2021, and (1) LGU to assist individual household beneficiaries to be registered into local associations: 6 beneficiaries stated in the AOM are organized groups of SAAD Program; No. 21 of page 3 are members of DAEA-CAR; & No. 76 of page 6 are under ELCAC barangays of Mt. Province [DA Response letter dated April 28, 2021] (2) Documents to support membership of the individual beneficiaries; 4 out of 6 individual beneficiaries identified in the AOM have proof of membership in association/group (3) List of beneficiaries of animals produced by the animal stocks maintained at the LGUs breeding center: Close coordination with LGUs (4) Documents that the interventions were received by association thru the MLGU La Trinidad: Close coordination with the MLGU Ls Trinidad to prove that the intervention was received by an association.

115 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

222 CAAR

76-80

2020 p.

B. Comply with the requirements set forth in the implementation of programs/projects/ activities in accordance with the provisions of the approved guidelines; and 76-80

CAR

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

25. Distribution of fertilizers and seeds and other agricultural products

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

C. Fast track the procurement of various goods and cause the immediate distribution to corresponding beneficiaries.

31/12/2021 Not Yet Implemented The Program responded (letter dated, April 28, 2021) that the 3 organizations were the beneficiaries of the livelihood assistance under the regular fund

Confirmation and retrieval of necessary documents are expected to be completed on or before

A. Rice Resiliency ProjectRice Farmers Fertilizer Program (RRP-RFFA)

26. Reimbursements of claims for fertilizer, as provided under DADevelopment Bank of the Philippines (DBP) Joint Memorandum Circular (JMC) No. 04 and DA MO No. 31, were not complied with, which resulted in the:

a) overpayment of fertilizer reimbursement amounting to ₱214.894 million; b) unreliability of reimbursement of ₱0.963 million; and c) low reimbursement in RFO XIII.

A. strictly comply with the provisions of Item 10.2 of the DA DBP JMC No. 04 in applying the unit price of fertilizer to avoid overpayment of the fertilizer assistance to farmer beneficiaries;

concerned DA

01/09/2021 30/10/2021 On-going Implementation The NRP shall submit the corrected version of the database and necessary explanations

Audit Observation/s Audit Recommendation/s Implementation Status No.

224 CAAR 2020 p. 76-80 CAR 01/01/2021

December 31, 2021.

CAAR

80-89

RFOs

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 116 Page

225

2020 p.

DA-CO NRP,

226

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

A. Rice Resiliency ProjectRice Farmers Fertilizer Program (RRP-RFFA)

a) overpayment of fertilizer reimbursement amounting to ₱214.894 million; b) unreliability of reimbursement of ₱0.963 million; and c) low reimbursement in RFO XIII.

B. Explain the reimbursement of fertilizer to unqualified beneficiaries and in excess of the national/provincial price monitored for the month of June 2020;

A. Rice Resiliency ProjectRice Farmers Fertilizer Program (RRP-RFFA)

a) overpayment of fertilizer reimbursement amounting to ₱214.894 million; b) unreliability of reimbursement of ₱0.963 million; and c) low reimbursement in RFO XIII.

C. Update the master list to include the correct needed data for the determination of the total amount to be reimbursed;

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM Summary Report generated on at Ref.No. Date Observations and Recommendations Action Plan AGENCY ACTION PLAN Responsible Office Target Implementation From To Reason of Partial/ Delay/NonImplementation Action Taken Management Comments Remarks

CAAR 2020 p. 80-89

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 117 Page

227 CAAR 2020 p. 80-89

228 CAAR 2020 p. 80-89

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

A. Rice Resiliency ProjectRice Farmers Fertilizer Program (RRP-RFFA)

a) overpayment of fertilizer reimbursement amounting to ₱214.894 million; b) unreliability of reimbursement of ₱0.963 million; and c) low reimbursement in RFO XIII.

D. strictly comply with the provisions of Item 10.2 of the DA DBP JMC No. 04 in applying the unit price of fertilizer and number of bags to be reimbursed to avoid overpayment of the fertilizer assistance to farmer beneficiaries.; and

229 CAAR 2020 p. 80-89

A. Rice Resiliency ProjectRice Farmers Fertilizer Program (RRP-RFFA)

a) overpayment of fertilizer reimbursement amounting to ₱214.894 million; b) unreliability of reimbursement of ₱0.963 million; and c) low reimbursement in RFO XIII.

E. Determine the extent of liability of personnel responsible for the overpayment of fertilizers and impose sanctions if warranted.

27. Total reported number of beneficiaries that had claimed reimbursement of fertilizer assistance with the DBP exceeded the total number of beneficiaries listed in the master list submitted by the DA-ICTS to the DBP for reimbursement by 729 beneficiaries, in contrast with the provisions of DA MO No. 31 and DA DBP JMC No. 04.

A. Reconcile the number of beneficiaries paid by the DBP in excess of the total number of beneficiaries listed in the master list submitted by the DA-ICTS to the bank for the reimbursement of fertilizer assistance; and

230 CAAR 2020 p. 89-90 DA CO

NRP, ICTS 01/09/2021 30/10/2021 Management will coordinate with ICTS and DBP for the updated version of the masterlist and consolidate submissions and explantions for submission.

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

Audit Observation/s Audit Recommendation/s Implementation Status No.

The NRP shall submit the updated version of the masterlist fom ICTS and DBP. 118 Page

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

231 CAAR 2020 p. 89-90

A. Rice Resiliency ProjectRice Farmers Fertilizer Program (RRP-RFFA)

B. Require the concerned FCAs to submit the detailed list of beneficiaries paid thru the Farmers’ Cooperative to determine to total number of unclaimed accounts that might be considered as dormant as required under Section 11.2.7.3 of the DADBP JMC No. 04.

DA CO

The NRP shall coordinate with the concerned DARFOs for the submission of the list of beneficiaries paid through FCAs

DA RFOs Management will coordinate with DARFOs , and consolidate the submissions of concerned DA RFOs for submission.

232 CAAR 2020 p. 91-93

B. Cash and Food Subsidy to Marginalized Farmers and Fisher Folks (CFSMFF)

28. Laxity in the reporting of farmer beneficiaries in the mater list submitted to the DBP resulted in the over remittance of payroll amounting to ₱35.831 million caused by the 7,146 beneficiaries that were reported two or three times, contrary to DABFAR-PCA-SRA-NCIPDBP JMC No. 06. On the other hand, farmer beneficiaries totaling 1,317 who have claimed the ₱ 3,000.00 financial assistance were not included in the master list submitted by the DA-ICTS to the DBP.

A. Thoroughly check the masterlist of beneficiaries prior to the certification and submission to the DA to avoid double reporting of beneficiaries which result to the over statement of the payroll submitted to the bank; and

Reiterated the stricter deduplication process to DA-RFOs and DA-ICTS.

DA-ICTS to coordinate with COA regarding the 7,146 beneficiaries found by COA to be duplicates and confirm the cancellation and replacement procedures undertaken to resolve the issue.

DA-FOS, DAICTS, DA-RFOs 01/11/2021 30/06/2021 Fully Implemented For the farmer's duplicate records and overpayments, the implementation of the project and programs concerned were still ongoing at the time the audit observation was made. The DA assured that matters on duplicate records resulting in overpayments were properly addressed. The DA, in constant coordination with the partner Government Financial Institution, placed corrective actions which include cancellation of claims of duplicate farmers and replacing them with other beneficiaries, among others, and instructed Regional Field Offices, and ICTS to conduct stricter deduplication of lists. Also, to conduct cancellation and replacement if the need arises

Audit Observation/s Audit Recommendation/s Implementation Status No.

119 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

233 CAAR 2020 p. 91-93

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

B. Cash and Food Subsidy to Marginalized Farmers and Fisher Folks (CFSMFF)

B. Determine the extent of liability of personnel responsible for the over remittance of the cash and financial assistance for possible imposition of sanctions.

234 CAAR 2020 p. 91-93

B. Cash and Food Subsidy to Marginalized Farmers and Fisher Folks (CFSMFF)

C. Reconcile the beneficiaries who have claimed financial grants from the DBP with the master list provided by the Implementing Agencies and submitted to the DA-ICTS and to the DBP for payment; and

DA-CO DA ICTS, Implementing Agencies, DBP On-going Implementation Management reconcile submitted list within the liquidation report to be provided by the DBP

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

120 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

235 CAAR 2020 p. 91-93

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

D. Determine the cause/s why payment was made to beneficiaries not included in the master list.

DA-CO

236 CAAR 2020 p. 93-95

29. Leniency in the reporting of farmer beneficiaries in the master list submitted to the LBP resulted in the over remittance of payroll caused by the 6,912 beneficiaries that were reported two or three times, contrary to Section II.6.5.5 of the DA-LBP JMC No. 01, resulting in the over remittance of financial subsidy amounting to ₱ 35,640,000.00. In addition, the failure of the LBP to render liquidation reports as prescribe in the DALBP-DBP JMC No. 16 and in the MOA resulted in the non-validation of the total number of beneficiaries who have claimed financial assistance.

A. Explain the inclusion of 6,912 beneficiaries that were reported two or three times in the list of farmer beneficiaries;

DA-ICTS to coordinate with COA regarding the 6,912 beneficiaries found by COA to be duplicates and confirm the cancellation and replacement procedures undertaken to resolve the issue.

DA-FOS, DAICTS, DA-RFOs 01/01/2019 28/02/2021 Fully Implemented Management corrective measures including detecting duplicate accounts, cancelling them, and replacing them with other eligible beneficiaries are being exercised under the program. Management also instructed Regional Field Offices, and ICTS to conduct stricter deduplication of lists. Also, to conduct cancellation and replacement if the need arises.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Nov 2021 5:19:21 PM

B. Cash and Food Subsidy to Marginalized Farmers and Fisher Folks (CFSMFF) C. Financial Subsidy for Rice Farmers (FSRF)

121 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

237 CAAR 2020 p. 93-95

C. Financial Subsidy for Rice Farmers (FSRF)

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

B. Instruct the concerned RFOs and DA-ICTS to ensure that the list of beneficiaries is properly reviewed to remit the correct amount of financial subsidy to LBP;

DA-CO DA FOS On-going Implementation Management reiterated the stricter deduplication process to DA-RFOs and DAICTS.

238 CAAR 2020 p. 93-95

C. Financial Subsidy for Rice Farmers (FSRF)

C. Provide information on the farm size of the area planted to determine whether the farmer beneficiaries are qualified for the financial assistance in accordance with the provisions of DA LBP JMC 01; and

DA-CO DA RFOs On-going Implementation Management ensures that one of the major qualifications for the eligibility of the farmers is for them to be farming a total rice area of 0.5-2.0 hectares. The DA-RFOs have endorsed these names to the DA-Central Office provided that they have indeed validated this information in the RSBSA.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

Summary Report generated on at

122 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

239 CAAR 2020 p. 93-95

C. Financial Subsidy for Rice Farmers (FSRF)

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

240 CAAR 2020 p. 95-99

30. The accuracy of the farmers’ database could not be relied upon due to the assignment of multiple RSBSA numbers to a single farmer beneficiary and /or the assignment of RSBSA number to two or more farmer beneficiaries.

D. Require the LBP to submit liquidation reports as prescribe in the DA- LBPDBP JMC No. 16 and in the MOA.

DA-CO Management will be sending demand letter to concerned offices or individuals

Accounting, FOS 01/04/2021 31/12/2021 On-going Implementation A letter dated 20 April 2021 on request for liquidation reports and a final distribution report was sent to the partner GFIs for their compliance.

A. Properly monitor the issuance of Reference/Control Number to stop the assignment of multiple RSBSA numbers to a single farmer beneficiary and/or the assignment of RSBSA number to two or more farmer beneficiaries; and

DA-CO

The DA-ICTS shall capacitate all RSBSA regional field offices in conducting these deduplication and database cleaning activities to ensure the assignment of a single reference number only to one registered farmer. "

DA-RFOs, DAFOS, DA-ICTS On-going Implementation Bayanihan 2 implementation is only up to June 30, 2021

The FFRS systemgenerated Reference/Control Number shall be utilized as reference for the Program Target Beneficiary Lists instead of the C/MAOassigned Reference/Control Number as it is prone to duplications due to clerical errors.

In using the systemgenerated Reference/Control Numbers, errors on farmers with multiple reference numbers will be trimmed and further avoided through conducting regular deduplication and database cleaning activities led by DAICTS.

Audit Observation/s Audit Recommendation/s Implementation Status No.

123 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

241

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

CAAR 2020

242 CAAR 2020 p. 99-102

DA-RFOs, DAFOS, DA-ICTS Bayanihan 2 implementation is only up to June 30, 2021

Management will conduct a nationwide (one province per region) validation activity which is scheduled for the last quarter of FY 2021.

31/12/2021

31. Fund transfer to IAs and NGOs/POS

Fund transfers to IAs and NGOs/POs amounting to ₱ 249.422 million were not supported with complete documentation, contrary to Section 6 of P.D. No. 1445; COA Circulars Nos. 94 -013, 2007-001, and 2012 -001. Likewise, the mandatory stipulations provided by the said regulations were not incorporated in the MOA between the Source Agency and Implementing Agencies.

We recommended and Management agreed to ensure that all fund transfers to IAs and NGOs/POs are supported with complete documentation and that the required stipulations under the laws, rules and regulations are included in the MOA.

CAAR 2020

243

The payment for the COVID-19 hazard pay amounting to ₱12.404 million in ATI (RTC CAR&VI), RFOs CAR and XIII was supported with adequate documents that will establish the recipients’ qualifications and compliance with conditions set by applicable guidelines. However, disbursements for the grant of COVID-19 Hazard Pay to regular employees and other personnel amounting to ₱31.337 million in 10 DA offices were not supported with adequate documents

A. Concerned Offices to: i. submit lacking and/or deficient supporting documents;

Undersecretary

Audit Observation/s Audit Recommendation/s Implementation Status No.

B. Require the RFOs to carefully validate the list and ensure that a unique RSBSA number is assigned to farmer beneficiaries to avoid duplication; p.

95-99

DA-CO DA-FOS shall provide guidance to the DA-RFOs in conducting validation at the provincial level to verify the existing records.

32. Grant of Hazard Pay

DA-CO, ATI, BPI, BSWM & IVB Personnel/ Accounting/ HRMO 01/01/2021 30/09/2021

Office of Usec. Roldan G. Gorgonio,

for Administration and Finance 124 Page

ii. instruct the Accountants to refrain from processing claims with incomplete documentation;

102-103

Fully Implemented Management already submitted a Memo on the alternative work arrangement during MECQ in lieu of the required Special Order. Submit S.O which is the lacking document found during audit to COA

32. Grant of Hazard Pay

The payment for the COVID-19 hazard pay amounting to ₱12.404 million in ATI (RTC CAR&VI), RFOs CAR and XIII was supported with adequate documents that will establish the recipients’ qualifications and compliance with conditions set by applicable guidelines. However, disbursements for the grant of COVID-19 Hazard Pay to regular employees and other personnel amounting to ₱31.337 million in 10 DA offices were not supported with adequate documents.

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

B. Ensure that number of days the personnel physically reported for work per DTR is the same with the number of days for skeletal workforce per IWAR; and

32.

C. Require the Accountant to exercise diligence in certifying that supporting documents are complete and amount claimed proper in

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

Summary Report generated on at

244 CAAR 2020 p. 102-103 BAI Personnel Section 01/04/2021 31/12/2021 Partially Implemented The needed documents were already submitted to COA.

Grant of Hazard

Pay

245 CAAR 2020 p. 102-103 BAR Accounting Unit 31/12/2021 On-going Implemented Moving forward, the BAR Accountant shall ensure to exercise due

in the

that

complete prior to disbursement. Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 125 Page

Box C of the DVs.

diligence

certification

all supporting documents are

5. Non-liquidation of cash advances

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO IV A

To strictly monitor the liquidation of cash advances and remind concerned personnel to submit necessary documents within the prescribed period.

Partial Implementation Ongoing liquidation of concerned unit/individual

The Accounting section regularly reminds the concerned personnel to immediately submit necessary documents on the liquidation of cash advances. However, a total of 108,888,878.40 were already liquidated for the period Jan to March 2021, which pertains to Advances for payroll amounting to 45,383,065.00 and Advances to Special Disbursing Officer amounting to 63,505,813.40

247 CAAR 2020 p. 24-27

5. Non-liquidation of cash advances

B. Refrain from granting additional cash advances unless previous ones have been fully liquidated;

RFO V RFO V

The grant of additional cash advance covers only immediate response to sustained Agency targets for food security and other services especially during the pandemic outbreak of African Swine Fever in the region.

Audit Observation/s Audit Recommendation/s Implementation Status No.

246 CAAR 2020 p. 24-27

Accounting Unit 01/01/2021 31/12/2021

Office

126 Page

of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

12.

Submission of government contracts

Fully Implemented Management has already submitted the documents need by COA.

13. Withholding and remittances of GSIS contributions, loans and employer’s share

A. Ensure the timely remittance of all premium payments and loan repayments to GSIS in accordance with the GSIS Act of 1997; and

I Admin and Finance Division

Management has committed to strictly abide by the rules of RA No. 8291 to remit the GSIS personal share and loans within the reglementary period.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

248 CAAR 2020 p. 40-43 DA-CO Procurement/GS D 01/01/2021 30/06/2021

249

43-45

Office of Usec. Roldan G. Gorgonio,

for Administration and Finance 127 Page

CAAR 2020 p.

RFO

01/05/2021

Undersecretary

250 CAAR 2020 p. 43-45

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO XII

13. Withholding and remittances of GSIS contributions, loans and employer’s share

Seven DA offices deducted properly and remitted on time the GSIS premiums and loans of employees amounting to ₱194.110 million, pursuant to RA No. 8291, the GSIS Act of 1997. However, seven DA offices did not deduct properly and remit on time the GSIS premiums and loans of employees amounting to ₱7.247 million, with delays ranging from 3 to d226 days. Moreover, 11 DA offices had unremitted amount of ₱5.768 Million and subject for reconciliation in the amount of ₱7.997 million as of year-end.

B. Exert effort to analyze and reconcile the unremitted amount and effect remittances, if warranted.

To reconcile the differences noted in withholding and remittances and ensure correct remittance for current periods.

Accounting Section and Human Resource Section

On-going Implementation Prior year differences are still under reconciliation Current period remittances were properly checked and reconciled.

251 CAAR 2020 p. 64-68

A. Comply with laws, rules and regulations to avoid audit suspensions, disallowances and charges;

BSWM Management will review and evaluate suspensions, disallowances and charges and send demand letters to responsible persons.

Accounting Section 01/05/2021 30/10/2021 On-going

Implementation

Further review and evaluate unsettles suspensions, disallowances and require those persons liable with NDs that are final and executory to refund in full, and in case they opt to settle on installment basis, strictly comply with COA Resolution 2017 -021 relative to rules and regulation in the settlement of disallowance and also send demand letters to the persons liable and responsible for the settlement of audit disallowances that have attained finality, and compliance with the requirements audit suspensions issued and continue monitor the settlement of all suspensions, disallowances and charges.

Audit Observation/s Audit Recommendation/s Implementation Status No.

128 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

22. Audit suspensions, disallowances and charges

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

To send additional demand letters

Accounting and Implementing Units

01/08/2020 On-going Implementation Demand letters were sent to the persons liable even before the pandemic, but some were returned to sennder. Filing of small claims is under review of NPCO Legal Unit for the unsettled P.0634 million 2015-2016 incentive allowance.

23. Receipt, utilization and disbursement of funds

A. Ensure the attainment of the purpose for which the said funds were received to prevent the expiration of allotment and the reversion of unexpended obligations;

ALL OUs Partially Implemented DA responded thru an official letter dated 23 February 2021 explaining the delay on the issuance of RRP implementation in BARMM which was not obligated. The MOA for the implementation of RRP among DA Central Office , DA RFO XII and MAFAR BARMM was only signed on 18 August 2020 which was 27 days prior to the end of the 2020 Wet Season.

DA RFO XII could not facilitate the procurement and transfer of seeds amounting to P 35.8M since all the seeds available in the area have been committed for the distribution under RCEF. For the P 35.8M thaw was originally not utilized for procurement of seeds, the amount, together with the savings from RRP activities, were carried over for the succeeding seasons with the extension of the Bayanihan I fund. To date, the procurement of seed inputs has been successfully carried out and is waiting for award.

Audit Observation/s Audit Recommendation/s Implementation Status No.

252 CAAR 2020 p. 64-68

PRDP

253 CAAR 2020 p. 68-71

129 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

32. Grant of Hazard Pay

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

255 CAAR 2020 p. 105-106

1. Fund Utilization/Obligation

A. Concerned Offices to: i. submit lacking and/or deficient supporting documents; ii. instruct the Accountants to refrain from processing claims with incomplete documentation;

BAR Human Resource Management Unit (HRMU) and Accounting Unit

31/12/2021 On-going Implementation Management had already required the HRMU Head for the immediate submission of all lacking and/or deficient supporting documents for the payment of previous year's COVID-19 Hazard Pay. Moreover, the BAR Accountant shall refrain from processing future claims with incomplete attachments.

We recommended and Management agreed to require the concerned offices of: i. provide catch-up plan to maximize the available allotment particularly on Donations;

256 CAAR 2020 p. 106-107 DA-CO Accounting Section On-going Implementation All incoming DVs were processed by the Accounting Division

2. Cash utilization/ disbursement We recommended and Management agreed to require the concerned officers of:A. DA-CO and RFO XII to instruct all end users to immediately submit the Disbursement Voucher with complete supporting documents to the Accounting Section to facilitate its payment and to avoid the reversion of fund;

257 CAAR 2020 p. 106-107 BAFE

2. Cash utilization/ disbursement B. DA-CO, BPI, BAFE and RFO XII to fast track the procurement process, and ensure that all procurement activities and implementation of programs are within the time frame;

Audit Observation/s Audit Recommendation/s Implementation Status No.

CAAR 2020 p. 102-103

254

130 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

261 CAAR 2020 p. 108-109

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

2. Cash utilization/ disbursement c. FAPs to: i. require the 16 RPCOs to fast track the disbursement process and revert the unutilized GOP counterpart to the BTr, thru the PSOs;

Require the PSO to strictly implement the submission of monthly submission of Statement of Receipts and Expenditures (SRE)

3. Audit suspensions, disallowances and charges

We recommended and Management agreed to require the concerned offices to:A. require the Chief Accountant to send demand letters to the persons liable and responsible for the unsettled suspensions, disallowances and charges, respectively; and

3. Audit suspensions, disallowances and charges

B. instruct the persons liable to submit a request to the COA for settlement of audit disallowances thru salary deduction, in case they opt to settle on installment basis, pursuant to COA Resolution No. 2017-021 dated November 3, 2017.

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

We recommended and Management agreed to direct the concerned officials of:

A. FAPs, ATI and BAI to deposit collections/ receipts amounting to ₱11.635 million, and BAR, RFOs IVB, VII and XIII to deposit account balances amounting to ₱7.517 million to the National Treasury; and

RFO IVB

We will continuously reconcile this account until the correct balance will be reflected in the books. We just need ample time in doing reconciliations as the duration will also be dependent on the available data and supporting documents.

Accounting Section 01/03/2021 Partially Implemented Difficulty in obtaining supporting documents to correct the recorded book balance.

As per initial investigation of our cashier, Trust Account # 0632-1019-88 has P3,218.31 balance as of May 31, 2006 Bank Statement and has zero balance already as per Bank Reconciliation dated December 31, 2006 and has been closed since October 10, 2010 This balance is inconsistent with the reported book balance of P1,428,529.52 as of December 31, 2019. This balance has been carried over for reporting purposes only and is dormant as early as 2009

Audit Observation/s Audit Recommendation/s Implementation Status No.

258 CAAR 2020 p. 106-107

PRDP

259 CAAR 2020 p. 107-108

260 CAAR 2020

107-108

131 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

We recommended and Management agreed to direct the concerned officials of:

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

We recommended and Management agreed to direct the concerned officials of:

RFO VII

Reconcile balances of all trust fund accounts to ensure accurate reporting before depositing it to National Treasury

Partially Implemented Some accounts were still unreconciled due to some errors noted in the previous years.

Ongoing reconciliation is done to correct errors identified before depositing to the National Treasury.

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

We recommended and Management agreed to direct the concerned officials of:

ATI IAU On-going Implementation Management conducting an on-going reconciliation to Cash in Bank-Trust Account.

4. Reversion of dormant cash, unauthorized accounts and unnecessary funds

B. RFO XII to conduct thorough analysis of the cash in bank accounts by (i) assessing all applicable legal bases to determine if the continuous existence of such accounts is still necessary; (ii) evaluating and settling all pending valid claims, if any, prioritize settlement of obligations;(iii) confirming from the source agency or grantor the existing remaining balances per books; and (iv) identifying the cash accounts as dormant, unauthorized and unnecessary cash in bank accounts and cause the proper and immediate reversion of the same based on the cited pertinent regulations.

Fully Implemented The amount of P5.566 million was already remitted to BTr as of July 30, 2020.

Audit Observation/s Audit Recommendation/s Implementation Status No.

262 CAAR 2020 p. 108-109

Accounting Section 01/01/2021 31/12/2021

108-109

263 CAAR 2020 p.

264 CAAR 2020 p. 108-109 BAI Accounting/Cashi er Section 31/01/2021 31/07/2021

265 CAAR

108-109 Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 132 Page

2020 p.

CAAR

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

266

5. Non-liquidation of cash advances We reiterated our prior years’ recommendations and Management agreed to require the concerned officers of:

Region XI already refrains from granting additional cash advances DA-CO Management has not granted additional cash advances unless previous ones have been fully liquidated

267 CAAR 2020 p. 109-110 DA-CO & BSWM Accounting Section Fully Implemented Unliquidated cash advances at year-end were already liquidated and accounted for in the books

268 CAAR 2020 p. 109-110

5. Non-liquidation of cash advances B. DA-CO, FAPs, BAI, BPI, BSWM, BAFE, RFOs VI, VIII, XI and XII to immediately settle their unliquidated cash advances within the deadline prescribed in COA Circular No. 97-002, otherwise, withhold their salaries until they shall have settled their accounts;

BAI & RFO VI Accounting Section 01/01/2021 31/12/2021 On-going Implementation Demand letter was sent or will be sent to concerned accountable officers and employees. BAI As of June 30, 2021, three accountable officers still have outstanding/unliquidate d cash advances.

269 CAAR 2020 p. 109-110

BPI Accounting Section 31/12/2021 Partially Implemented A total amount of P105,486,858.78 of the cash advances was already liquidated and refunded this JanuaryApril 2021.

5. Non-liquidation of cash advances C. BAR to demand liquidation from the AOs with prior years’ unliquidated balance; and

Office of Usec.

Roldan G. Gorgonio, Undersecretary for Administration

Audit Observation/s Audit Recommendation/s Implementation Status No.

A. DA-CO, FAPs, RFOs IX, XI and XII to refrain from granting additional cash advances unless previous ones have been fully liquidated; 2020

109-110 RFO XI Cashier 01/01/2020 On-going Implementation Finance makes sure all advances are already liquidated before granting additional cash advances

133 Page

270 CAAR 2020 p. 109-110

and Finance

274 CAAR 2020 p. 110-112

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

275 CAAR 2020 p. 110-112

5. Non-liquidation of cash advances D. RFOs III, and VIII to exert extra efforts to identify the persons accountable for the unliquidated balance.

6. Non-liquidation of fund transfers We reiterated our prior years’ recommendations and Management agreed to instruct concerned officers of:

A. DA-CO, BAR, RFOs I, VII, XI, and XII to refrain from granting additional fund transfers to those projects with unliquidated balances;

RFO I Management commits to refrain from transferring funds if the previous funds transferred have not yet been liquidated.

Admin. and Finance Division 01/04/2021 Fully Implemented Fund transfers are only being granted if the previous fund transfers are liquidated.

276 CAAR 2020 p. 110-112

6. Non-liquidation of fund transfers We reiterated our prior years’ recommendations and Management agreed to instruct concerned officers of:

A. DA-CO, BAR, RFOs I, VII, XI, and XII to refrain from granting additional fund transfers to those projects with unliquidated balances;

6. Non-liquidation of fund transfers B. BAR, BPI, BSWM and CAR to send follow-up and demand letters to concerned IAs and NGOs/POs with unliquidated balances;

RFO VII & RFO XI

Ensure that no additional fund transfers will be granted to implementing agencies with unliquidated balances

Accounting Section Fully Implemented The region did not grant additional fund transfer to implementing agencies with unliquidated balances

6. Non-liquidation of fund transfers B. BAR, BPI, BSWM and CAR to send follow-up and demand letters to concerned IAs and NGOs/POs with unliquidated balances;

CAR Management to follow-up and require concerned implementing agencies to submit supporting documents as soon as possible.

Accounting Section and Implementing Units

01/01/2021 31/12/2021 Partial Implementation Only P699, 000.00 was liquidated for the months of January to June 2021. Management will send another set of demand letters.

6. Non-liquidation of fund transfers C. FAPS to closely monitor and validate the status of implementation of the various projects, and to require the LGUs to immediately submit the liquidation reports;

RFO VI, BPI

The Management will send letters to accountable officers and employees to settle their cash advances.

Accounting Section 31/12/2021 On-going Implementation Demand letters will be sent to accountable officers and employees for the immediate liquidation of their cash advances.

Audit Observation/s Audit Recommendation/s Implementation Status No.

271 CAAR 2020 p. 109-110

CAAR 2020

272

p. 110-112

273 CAAR 2020 p.

110-112

134 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

281

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

6. Non-liquidation of fund transfers D. BAR to comply with the procedures for the availment, release and utilization of funds and with the accounting and reporting after the project completion;

6. Non-liquidation of fund transfers E. BSWM to require submission of Official Receipts by the six IAs to acknowledge receipt of fund and submit the same to the Audit Team;

6. Non-liquidation of fund transfers F. RFO III to include in the MOA (i) timelines of the projects’ completion and liquidation of funds received; and (ii) penalty clause for the noncompliance with the provisions of the MOA; and

6. Non-liquidation of fund transfers G. RFO XII to adopt an effective monitoring scheme to enforce submission of liquidation reports of the concerned NGOs/IAs, as well as the progress reports and/or terminal reports of the projects, and/or require refund of the unused funds, if any.

7. Dormant accounts for write- off We recommended and Management agreed to direct the concerned officers of DACO, FAPs, BAI, ATI-CO and RTC-XI, BAR, BPI, BSWM, RFOs CAR, II, IVB, VII, IX, X and XI to file the request for authority to write-off dormant receivable accounts, unliquidated cash advances, and fund transfers, following the procedures prescribed under COA Circular No. 2016 -005 dated December 19, 2016.

DA-CO Accounting Section On-going Implementation Location of documents to be attached for the write-off of accounts

Accounting Division it exerting its best effort to locate necessary documentations for the request for write-off

Audit Observation/s Audit Recommendation/s Implementation Status No.

277 CAAR 2020 p. 110-112

278 CAAR 2020 p. 110-112

279 CAAR 2020 p. 110-112

280 CAAR 2020 p. 110-112

CAAR 2020 p. 112

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 135 Page

282 CAAR 2020 p. 112

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

CAR Management through the accounting section will issue another demand and confirmation letter this year to validate and assert their collectability. On the other hand, the agency will follow up reports from ACPC and the collecting agents for the updates of record or reflection of collections.

Management 01/01/2021 31/12/2021 Submitted to COA the request for write-off but for completion of lacking supporting documents. The Accounting Section will again send demand letters.

Management will resubmit the request for write-off for those accounts with available supporting documents and will continue to analyze the remaining ones.

RFO II

283 CAAR 2020 p. 112

7. Dormant accounts for write- off

We recommended and Management agreed to direct the concerned officers of DACO, FAPs, BAI, ATI-CO and RTC-XI, BAR, BPI, BSWM, RFOs CAR, II, IVB, VII, IX, X and XI to file the request for authority to write-off dormant receivable accounts, unliquidated cash advances, and fund transfers, following the procedures prescribed under COA Circular No. 2016 -005 dated December 19, 2016.

On-going Implementation Management to send the third demand letters within this quarter as it requires 3 demand letters for write off

284 CAAR 2020 p. 112

RFO IVB

We were submitting lists of Receivables for write-off. We still need to reconcile these balances, specifically P577,089.80 unaccounted balances.

Accounting Section 01/03/2021 Partially Implemented Requesting write-off of dormant accounts is not easy as we need to provide supporting documents along with the list of dormant accounts that need to be written off.

We need to collate supporting documents. For those advances from separated/retired employees, we will coordinate with the barangays of their last known address and request Certification which will serve as support in our request for write-off of these dormant cash advances.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Office of Usec.

Administration and Finance 136 Page

Roldan G. Gorgonio, Undersecretary for

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

p. 112 RFO VII Process request for write off of all dormant receivables to COA

286 CAAR 2020 p. 112

Accounting Section 01/01/2021 31/12/2021 Partially Implemented Delay in the request for write off was caused by the difficulty in the compliance of required documents

Fast track compliance of the required documents

The management shall submit a request for write off of all dormant receivables to COA as soon as the required documents are complied.

287 CAAR 2020 p. 112

RFO X Accounting Section 01/03/2021 Partially Implemented Compliance to the request for write-off is difficult since documents relative to these items are no longer available.

Sent letters to the COA to clarify certain matters in the AOM

ATI Accounting Section On-going Implementation Management conducting an on-going reconciliation to Cash in Bank-Trust Account.

Audit Observation/s Audit Recommendation/s Implementation Status No.

285 CAAR

2020

Office of Usec.

Administration and Finance 137 Page

Roldan G. Gorgonio, Undersecretary for

288

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

p. 112

289 CAAR 2020 p. 112

BSWM

Management to file the request for authority to writeoff dormant receivable accounts, unliquidated cash advances, and fund transfers to this Office following the procedures prescribed under COA Circular No. 2016-005 dated December 19, 2016

Accounting Section On-going Implementation Update schedule and prepare request for write-off of dormant account

290 CAAR 2020 p. 112-113

8. Insurance of physical assets with GSIS

We recommended and Management agreed to direct the concerned officers of: A. DA-CO, FAPs, ATI, BAI, BPI, CAR, RFOs I, IVB, IX and XII to make appropriate actions to apply for insurance coverage of the physical assets with the GSIS;

RFO IVB Re-align savings for insurance of government properties.

Property Unit 01/03/2021 Partially Implemented Awaits realignment of savings Propose insurance premium in budget preparation.

291 CAAR 2020 p. 112-113

8. Insurance of physical assets with GSIS

We recommended and Management agreed to direct the concerned officers of:

A. DA-CO, FAPs, ATI, BAI, BPI, CAR, RFOs I, IVB, IX and XII to make appropriate actions to apply for insurance coverage of the physical assets with the GSIS;

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 138 Page

Audit Observation/s Audit Recommendation/s Implementation Status No.

BPI Accounting Section 01/01/2021 31/12/2021 On-going Implementation Demand letters were already sent starting this April 2021. The Management will follow the procedures prescribed under COA Circular No. 2016-005.

ATI IAU Partially Implemented Insured newly constructed building at ATI-CO.

295 CAAR 2020 p. 112-113

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

8. Insurance of physical assets with GSIS We recommended and Management agreed to direct the concerned officers of: A. DA-CO, FAPs, ATI, BAI, BPI, CAR, RFOs I, IVB, IX and XII to make appropriate actions to apply for insurance coverage of the physical assets with the GSIS;

Fully Implemented The management thru the Property Unit already insured the buildings under GSIS Policy No. FI-NMGSISHO-0035375 for the period covered January 1, 2020 to December 31, 2020.

Property Section 31/12/2021 On-going Implementation Payment of insurance coverages of the physical assets with the GSIS are ongoing this CY 2021.

of physical assets with GSIS Supply and Property Unit 01/01/2021 31/12/2021 On-going Implementation Various buildings of the agency amounting to P711,386.06 were already insured.

8. Insurance of physical assets with GSIS B. DA-CO to verify and submit supporting documents on the distributed vehicles under CECAP and abide by the terms and conditions of the signed MOA on borrowed vehicles;

DA-CO Not Yet Implemented Ongoing pandemic restrict the validation of the documents

296 CAAR 2020 p. 112-113

8. Insurance of physical assets with GSIS

C. RFO I to submit an updated list of inventory to GSIS and insure the PPEs amounting to ₱80.944 million with GSIS in order to provide adequate and reliable protection against any damage or loss of property or assets and interests due to fire, earthquake, storm or other fortuitous events;

General Services Section 01/03/2020 31/03/2021 Fully Implemented The updated list of inventory for CY 2019 was submitted to GSIS and already insured with a total payment of P4.71M.

Audit Observation/s Audit Recommendation/s Implementation Status No.

292 CAAR 2020 p. 112-113 DA-CO & BAI Property Unit 01/10/2021 31/12/2021

293 CAAR 2020 p. 112-113

BPI

294 CAAR 2020 p. 112-113

CAR Insurance

RFO I Management commits to submit and update the list of inventory with GSIS and process the PPE insurance. Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 139 Page

9. Disposal of unserviceable property

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

We recommended and Management agreed to direct the concerned officers of:

A. DA-CO, ATI, BAI, BSWM, RFOs I, II, III, IVB, X, IX and XIII to require their respective Property Unit to dispose of unserviceable PPE in accordance with existing laws, rules and regulations, to prevent further deterioration; and

RFO I

Management commits to: a. instruct the Property Unit to dispose of unserviceable PPE in accordance with existing laws, rules and regulations, to prevent further deterioration; and RFO II Canvass is going to set up the price for disposal.

Property Officer 01/01/2021 On-going Implementation

The Property officer has already reconciled the submitted list of properties to GSIS with the Report on the Physical Count of Property, Plant and Equipment of this office. DA-CO On-going COA inspection of the items indicated in the IIRUP for the disposal of the unserviceable PPE RFO II Management to accomplish within this quarter

RFO IVB

9. Disposal of unserviceable property We recommended and Management agreed to direct the concerned officers of:

ATI Action Plan approved by Management. 3rd tranche IRRUP approved by COA last June 23, 2021. Bidding conducted last July 19, 2021

Property Unit Partially Implemented Due to community quarantine protocols and no bidders interested in the auction, we have a hard time to do inventory and inspect all the unserviceable properties subject for disposal

After CY 2021 inventory of PPE we will prepare IIRUP including inspected and returned unserviceable properties subject for disposal. Also we will prepare other supporting documents pertaining to disposal of unserviceable properties, and to evaluate documents for public auction. Revision of documents if necessary or shift to other modes of disposal

299 CAAR 2020 p. 113-114

9. Disposal of unserviceable property

We recommended and Management agreed to direct the concerned officers of:

BAI Property Unit 01/01/2021 31/12/2021 Partially Implemented The Property unit disposed of some of the unserviceable properties through public bidding and donation to government schools.

Audit Observation/s Audit Recommendation/s Implementation Status No.

297 CAAR 2020 p. 113-114

298

CAAR 2020 p. 113-114

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 140 Page

301 CAAR 2020 p. 113-114

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

9. Disposal of unserviceable property

We recommended and Management agreed to direct the concerned officers of: A. DA-CO, ATI, BAI, BSWM, RFOs I, II, III, IVB, X, IX and XIII to require their respective Property Unit to dispose of unserviceable PPE in accordance with existing laws, rules and regulations, to prevent further deterioration; and

BSWM Property Section 01/10/2021 31/10/2021 Management to file an application for disposal of unserviceable property, together with the required documentation, to this Office in compliance with Section 79 of Presidential Decree (PD) No. 1445 and Property and Supply Management System

RFO I

9. Disposal of unserviceable property B. DA-CO, FAPs, RFOs I and IX to identify and determine the amount of the unserviceable office equipment, prepare the corresponding IIRUP and dispose the same immediately.

b. identify and determine the amount of the unserviceable office equipment, prepare the corresponding IIRUP and dispose of the same immediately.

Disposal Committee, Admin and Finance, eneral Service Section, and Property Officer

On-going Implementation

The aggregate unserviceable properties for CY 2019 were already disposed of with a total proceeds of P268K. For CY 2020, copies of IIRUP and Disposal Committee’s Appraisal Report were already submitted to COA on May 3 and 19, 2021 for inspection.

302 CAAR 2020 p. 114-116

10. Procurement of goods and services, consultancy services and infrastructure projects

We recommended and Management agreed to direct the concerned officers of:

A. RFO I to submit the APP/Supplemental APPs (both in hard and soft copies), including a copy of the transmittal of all the approved APP and Supplemental APPs to GPPB;

RFO I Management commits to submit the APP /Supplemental APPs (both in hard and soft copies) of the procurements listed in Annex H, including a copy of the transmittal of all the approved APP and Supplemental APPs to GPPB

Bids and Awards Committee 01/07/2021 31/08/2021 On-going Implementation

The Annual Procurement Plan (APP) /Supplemental APPs were submitted to COA and GPPB on December 16, 2019 and September 12, 2019 respectively. The attachments in the acknowledged email to GPPB will be furnished to COA in August 2021.

Audit Observation/s Audit Recommendation/s Implementation Status No.

300

CAAR 2020 p. 113-114

141 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

10. Procurement of goods and services, consultancy services and infrastructure projects

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

11. Posting of Programs/Projects/ Activities

We recommended and Management agreed to direct the concerned officers of:' B. RFO XI to furnish the Office of the Auditor copy/ies of the SAPP to support their claim of project inclusion to preclude disallowance in audit and prepare We recommended and Management agreed to require the concerned DA offices to fully comply with the requirements embodied in COA Circular No. 2013 -004 in providing information and the Annual Procurement Plan with sufficient details to ensure comparability with the PMR; and

We recommended and Management agreed to require the concerned DA offices to fully comply with the requirements embodied in COA Circular No. 2013 -004 in providing information and publicity on programs/ projects/activities to promote transparency in government transactions.

12. Submission of accounting and property reports

We recommended and Management agreed to require the concerned DA offices to submit the accounting and property reports with their supporting documents within the prescribed deadline or impose administrative sanctions to personnel responsible for the delay/non-submission thereof.

DA-CO Accounting Section Fully Implemented All required reports and documents are submitted to COA.

Audit Observation/s Audit Recommendation/s Implementation Status No.

303 CAAR 2020 p. 114-116

304 CAAR 2020 p. 116

305 CAAR 2020 p. 116-118

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 142 Page

13. Submission of government contracts

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

We recommended and Management agreed to:a. direct the concerned Chiefs of Personnel and Property Divisions to (i) cause the immediate submission of the perfected contracts and POs/WOs with all supporting documents and (ii) henceforth, ensure that these are submitted within the reglementary period with all required information in the contracts and POs/WOs completely filled-up;

13. Submission of government contracts

We recommended and Management agreed to: b. properly accomplish all the needed information in the MOA/PO/WO and their supporting documents before submission to the Office of the Auditor; and

13. Submission of government contracts

We recommended and Management agreed to: c. impose sanctions against officials and employees who shall continuously fail to comply with the submission of contracts and POs/WOs in accordance with Section 4.1 and 4.2 of COA Circular No. 2009-001, dated February 12, 2009.

14. Withholding and remittance of GSIS contributions, loans and employer’s share

We recommended and Management agreed to direct the Accountants of:

ATI, BAFE, BSWM and RFO IVB to ensure the timely remittance of all premium payments and loan repayments to GSIS in accordance with the GSIS Act of 1997; and

with provincial staff to ensure timely remittance of GSIS.

01/03/2021 Partially Implemented On-going discussion with provincial offices. Needs to come up with a decision on how to expedite processing of GSIS remittances.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

Summary Report generated on at

306 CAAR 2020 p. 118-119

307 CAAR 2020 p. 118-119

308 CAAR 2020 p. 118-119

309 CAAR 2020 p. 119 RFO IVB Coordinate

Personnel

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 143 Page

312 CAAR 2020 p. 119

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

14. Withholding and remittance of GSIS contributions, loans and employer’s share

We recommended and Management agreed to direct the Accountants of: B. DA-CO, ATI, BAFE, BSWM, RFOs II, IVB, VI, IX, XI, and XII to exert effort to analyze and reconcile the unremitted balances and effect remittances, if warranted.

Withholding and remittance of GSIS contributions, loans and employer’s share

30/06/2021 Fully Implemented Prior years balance are already remitted to GSIS

313 CAAR 2020 p. 119

14. Withholding and remittance of GSIS contributions, loans and employer’s share

II Held a meeting between the Accounting and Personnel Section, who are in charge of the deductions and remittances and identified solutions. Reconciliation with the agency and necessary adjustments have been affected to correct discrepancies.

On-going Implementation Management to closely monitor the corect premiums of each employees

14. Withholding and remittance of GSIS contributions, loans and employer’s share

We recommended and Management agreed to direct the Accountants of:

B. DA-CO, ATI, BAFE, BSWM, RFOs II, IVB, VI, IX, XI, and XII to exert effort to analyze and reconcile the unremitted balances and effect remittances, if warranted.

RFO IVB

On-going reconciliation of Due to GSIS account.

Accounting Section 01/03/2021 Partially Implemented Lacking personnel who will focus only on account reconciliation.

Continuously reconcile this account.

14. Withholding and remittance of GSIS contributions, loans and employer’s share

We recommended and Management agreed to direct the Accountants of:

B. DA-CO, ATI, BAFE, BSWM, RFOs II, IVB, VI, IX, XI, and XII to exert effort to analyze and reconcile the unremitted balances and effect remittances, if warranted.

RFO VI

Accountants will make further analysis and reconcile the unreconciled balance of “Due to GSIS” account.

Accounting Section On-going Implementation Thorough reconciliation is being done in the beginning balance of “Due to GSIS” account for FY 2019 and prior years. If necessary adjustments are needed, it will be adjusted and corrected immediately.

Audit Observation/s Audit Recommendation/s Implementation Status No.

19 Nov 2021 5:19:21 PM

310 CAAR 2020 p. 119 DA-CO

Accounting/ Personnel 01/01/2021

311 CAAR 2020 p. 119 RFO

144 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary

for Administration and Finance

14. Withholding and remittance of GSIS contributions, loans and employer’s share

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

15. Withholding and remittance of PhilHealth contributions and employer’s share

30/09/2021 On-going Implementation Management will do the reconciliation on GSIS Contributions and Loans for prior and current year deductions and remit the unremitted contributions to the GSIS and prepare the subsidiary ledger for each employee to facilitate the monitoring of withholding and remittance of GSIS contribution and loans.

We recommended and Management agreed to require the Accountants of: A. ATI, BAI, RFOs II and V to remit the PhilHealth contributions on time to avoid imposition of penalties and surcharges; and

RFO II Held a meeting between the Accounting and Personnel Section, who are in charge of the deductions and remittances and identified solutions. Reconciliation with the agency and necessary adjustments have been affected to correct discrepancies

Accounting Section and Personnel On-going Implementation Management to closely monitor the corect premiums of each employees

15. Withholding and remittance of PhilHealth contributions and employer’s share

We recommended and Management agreed to require the Accountants of: A. ATI, BAI, RFOs II and V to remit the PhilHealth contributions on time to avoid imposition of penalties and surcharges; and

316 CAAR 2020 p. 119-120 RFO XI Accounting Section 01/01/2020 Fully Implemented Accounting section has already properly recorded philhealth remittances

15. Withholding and remittance of PhilHealth contributions and employer’s share

We recommended and Management agreed to require the Accountants of: B. ATI, BAI, RFOs II, VI, IX, XI and XII to exert extra effort to locate the documents/ records and analyze/ reconcile the unremitted balances and remit the balances to Philhealth, if warranted.

317 CAAR 2020 p. 119-120 RFO XI Accounting Section 01/01/2020 Fully Implemented Region XI has already fully adjusted the pagibig remittances

Audit Observation/s Audit Recommendation/s Implementation Status No.

314 CAAR 2020 p. 119 BSWM Accounting Section 01/09/2021

315 CAAR 2020 p. 119-120

Office of

145 Page

Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

15. Withholding and remittance of PhilHealth contributions and employer’s share

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

VI Accountants will make further analysis and reconcile the unreconciled balance of “Due to Philhealth” account.

Implementation Reconciliation of the “Due to Philhealth” Account is ongoing for FY 2019 and prior years. If necessary adjustments are needed it will be adjusted and corrected immediately.

16. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

We recommended and Management agreed to require the Accountants of: A. DA-CO, ATI, BAI and RFO II to remit on time all withheld contributions and loan amortizations to Pag-IBIG in accordance with RA No. 9769; and

16. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

30/06/2021 Fully Implemented Remittance was already made to PagIBIG

16. Withholding and remittance of Pag-IBIG contributions, loans and employer’s share

30/10/2021 On-going Implementation On-going reconciliation of Accounting and Human Resource Section.

Accounting Section On-going Implementation On-going analysis and reconciliation is being done on the beginning balance of “Due to PagIBIG” account and all transactions for FY2019 and prior years. Payroll deductions and remittances for 2020 have no variance. Starting March 2021 all necessary and appropriate adjustments will be made to correct erroneous entries, double posting and reclassification of “Due to Pag-IBIG” on prior years until year Dec. 2019 to ensure reliability of amounts reflected in the financial statements.

Undersecretary

Audit Observation/s Audit Recommendation/s Implementation Status No.

318 CAAR 2020 p. 119-120 RFO

On-going

319 CAAR 2020 p. 120 DA-CO Accounting Section 01/01/2021

CAAR 2020 p. 120 BAI Accounting and

01/01/2021

320

Human Resource Management Section

We recommended and Management agreed to require the Accountants of: B. DA-CO, ATI, BAI, RFOs VI, IX, XI and XII to exert extra effort to locate the documents/records and analyze/reconcile the unremitted balances and remit immediately the balances to Pag-IBIG, if warranted, to avoid penalties and enable all employees to enjoy the privileges and benefits accruing to the member. Office of Usec. Roldan G. Gorgonio,

321 CAAR 2020 p. 120 RFO VI Accountants will make further analysis and reconcile the unreconciled balance of “Due to Pag-ibig” account. for Administration and Finance 146 Page

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

17. Withholding and remittance of taxes We recommended and Management agreed to require the DA offices’

the amount of taxes withheld on the prescribe date in compliance with BIR regulation;

17. Withholding and remittance of taxes We recommended and Management agreed to require the DA offices’

to: A. remit the amount of taxes withheld on the prescribe date in compliance with BIR regulation;

17. Withholding and remittance of taxes We recommended and Management agreed to require the DA offices’ Accountants to:

B. trace the existence of unreconciled balances by analyzing the unremitted balances and remit immediately the balances to the BIR, if warranted, to avoid penalties; and

17. Withholding and remittance of taxes We recommended and Management agreed to require the DA offices’ Accountants to:

B. trace the existence of unreconciled balances by analyzing the unremitted balances and remit immediately the balances to the BIR, if warranted, to avoid penalties; and

Reconciliation with the agency and necessary adjustments have been affected to correct discrepancies

Management to closely monitor the correct withholding taxes and remittances of each employees

VI Accountants will make further analysis and reconcile the unreconciled balance of “Due to BIR” account

Fully Implemented Analysis and reconciliation is being done on the “Due to BIR” account. Necessary and appropriate adjustments will be made after a thorough reconciliation.

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

Accountants to: A.

322 CAAR 2020 p. 120-121 RFO II, BAI To remit on due date Accounting Section 01/01/2021 30/10/2021 On-going Implementation Management to be conscious on due dates and on-going reconciliation of unremitted balances.

remit

323 CAAR 2020 p. 120-121 DA-CO & RFO VI Accounting Section 01/01/2021 31/12/2021 Fully Implemented Tax Withheld was already reconciled and remitted to BIR. It will be strictly observed that deductions for each month will be remitted before 10th of the following month to avoid delays and penalties.

Accountants

324 CAAR 2020 p. 120-12 RFO

325 CAAR 2020

120-121 RFO

326 Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 147 Page

17. Withholding and remittance of taxes

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

RFO II

We recommended and Management agreed to require the DA offices’

Accountants to:

C. strengthen the review over the recording of tax transactions and remittance of taxes withheld.

Management assigned a personnel to be in charge on all tax deductions and remittances

Management to closely monitor the correct withholding taxes and remittances of each employee

RFO VI

328 CAAR 2020 p. 120-121

17. Withholding and remittance of taxes

We recommended and Management agreed to require the DA offices’

Accountants to:

C. strengthen the review over the recording of tax transactions and remittance of taxes withheld.

Accounts will be instructed to reconcile monthly remittances of “Due to BIR” account prior to its remittance.

Fully Implemented Instructions were given to Accountants to regularly reconcile monthly remittances of “Due to BIR” account prior to its remittance.

BAFE

329 CAAR 2020 p. 121

18. Hiring of and payments to job order and contract of service individuals

We recommended and Management agreed to require the concerned officers of:

A. BAFE to (i) revisit the staffing of COS and JO personnel as against the organizational structure of permanent employees; (ii) prioritize existing COS/JO personnel in the appointment to its vacant positions provided that these workers meet the appropriate eligibility and other qualification requirements for the position as required in CSC-COADBM Joint Circular No. 1 s. 2017, as amended; and

330 CAAR 2020 p. 122-123

19. GAD Budget, Utilization and Accomplishments

We recommended and Management agreed to require the concerned officers of:

A. DA-CO to require the GAD Focal Person to submit to the Audit Team the AR;

The Human Resource Officer will initiate and execute the recruitment plan for the remaining vacant permanent position of the Bureau.

HR and HRMPSB 01/01/2021 31/12/2021 Currently waiting for the confirmation of CSC for the six (6) plantilla positions vacated by promoted BAFE permanent employees last December 2020.

Additional six plantilla positions were posted for vacancy this March 2021. The HRMPSB has conducted an interview and deliberation for the qualified applicants. As of May 15, 2021, the comparative matrix of scores was prepared and routed to the HRMPSB committee for them to affix their signatures.

Currently, BAFE has 47 permanent employees.

Audit Observation/s Audit Recommendation/s Implementation Status No.

327 CAAR 2020 p. 120-121

148 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

19. GAD Budget, Utilization and Accomplishments

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

We recommended and Management agreed to require the concerned officers of:

B. FAPs to: (i) attend capacity building programs on GAD to be abreast with the mechanics, prescribed guidelines and procedures in the formulation,development, submission,implementation, monitoring and evaluation including accounting of results of agency annual GPB and GAD AR; (ii) revisit the identified gender issues/ performance indicators and align with the PAD requirements; (iii) ensure that targets are specific and measurable to support proper planning, management and monitoring of development activities gearing towards the desired outcome to address gender issues; and (iv) ensure that GAD trainings and workshops is aimed to resolve all identified GAD issues and concerns to justify the conduct of the same and preclude the issuance of disallowance due to nonattainment of purpose and objective;

BSWM

19. GAD Budget, Utilization and Accomplishments

We recommended and Management agreed to require the concerned officers of:

C. FAPs, BAI, BAR, BSWM, ATI (CO, RTCs I and XII) and RFO V to strictly follow the procedures regarding the preparation and timely submission of GAD GPB and AR;

Management will participate in trainings/orientation/worksho p related to GAD to learn the proper preparation of GAD PB; and hereafter, ensure compliance with GAD laws, rules and regulations in the preparation of GAD PB and AR

GAD Focal Person

01/04/2021

31/12/2021

GAD Focal has already attended two (2) trainings relative to GAD: 1) CSC Training (Gender, Diversity and Social Inclusion on April 12, 15, 19, 22, and 29 and 2) HGDG Training for DA Program Implementers last April 16, 2021 by PCW. Next step is to engage the GAD Focal System to register on all GADrelated trainings offered by PCW this second semester

Audit Observation/s Audit Recommendation/s Implementation Status No.

5:19:21 PM

19 Nov 2021

Summary Report generated on at

331 CAAR 2020 p. 122-123

332 CAAR 2020 p. 122-123

149 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance

333 CAAR 2020 p. 122-123

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

19. GAD Budget, Utilization and Accomplishments

We recommended and Management agreed to require the concerned officers of:

D. FAPs, ATI-RTC XI, RFO V and RFO XI to accomplish correctly and supply the required data on the spaces/columns provided in the GPB and AR forms;

334 CAAR 2020 p. 122-123

19. GAD Budget, Utilization and Accomplishments

We recommended and Management agreed to require the concerned officers of:

E. FAPs, ATI-RTC XI, RFO V, RFO XI to follow the procedures in the attribution of GAD activities to DAs major programs using the HGDG tools;

335 CAAR 2020 p. 122-123

19. GAD Budget, Utilization and Accomplishments

We recommended and Management agreed to require the concerned officers of:

J. FAPs and ATI-RTC XII to submit the gender analysis on the sex-disaggregated data to support the gender issues and GAD activities indicated in the GPB.

336 CAAR 2020 p. 124-125

20. Delayed implementation of ODA Funded Projects

We recommended and Management agreed to request the Local Chief Executive (LCE) of the thirtyone proponent LGUs to coordinate with the PSOs on the identified causes of delays to further prevent losses in terms of time and resources which were kept idle to the disadvantage of the intended users.

Audit Observation/s Audit Recommendation/s Implementation Status No.

Nov 2021 5:19:21 PM

Summary Report generated on

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance 150 Page

21. Receipt and utilization of Disaster Related Fund

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Summary Report generated on at

19 Nov 2021 5:19:21 PM

We recommended and Management agreed to instruct concerned officers of:

A. RFO I to strictly observe the related laws, rules and regulations provided in 2016 Revised IRR of RA No. 9184 for bidding procedures and requirements and COA Circular No. 2014-002, dated April 15, 2014 regarding the utilization of DRRM/QR Fund to avoid future suspensions and disallowances in audit; and

RFO Bids and Awards Committee, DRRM Focal and Admin. and Finance

Fully Implemented As of to date, out of the total allotment received for DRRM program amounting to P432,769,160.00, 100% has been obligated and 99.84% has been disbursed with a remaining unpaid retention amounting to P691,010.13. Rest assured that these funds will be utilized and strictly observed in accordance with related laws, rules and regulations.

338 CAAR 2020 p. 125-1263

21. Receipt and utilization of Disaster Related Fund

B. RFO XI to ensure that: (i) the projects will be completed by December 31, 2020 pursuant to RA No. 11464; and (ii) the subsequent Agency Work Plan contains projects that are necessary, feasible and implementable by identifying, prioritizing and formulating a comprehensive relief and rehabilitation plan/program that would improve and normalize as quickly as possible the situation and living conditions of people living in communities or areas stricken by calamities

339 CAAR 2020 p. 126

22. Accounting Errors/ Omissions

We recommended and Management agreed to require the concerned Chief Accountant to effect the necessary adjustments on the errors/omissions amounting to ₱6,645.192 million as well as the trivial amounts aggregating ₱4.355 million with the corresponding supporting documents.

DA-CO Recording of adjustments Accounting Section On-going Implementation Analysis and reconciliation of account is ongoing Partial adjustments were made; analysis of accounts is ongoing to effect adjustments.

The Accounting Division is exerting its best effort to adjust and record the items mentioned in the observation.

Audit Observation/s Audit Recommendation/s Implementation Status No.

337 CAAR 2020 p.

125-126

151 Page

Office of Usec. Roldan G. Gorgonio, Undersecretary for Administration and Finance