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Republic of the Philippines

Office of the Auditor
Team 18, NGS-Cluster 5A
Mangaldan National High School
Mangaldan, Pangasinan
e-mail address: Telefax No. (075) 653-1278

AOM No. 2015-001

Date: January 4, 2016



Secondary School Principal IV
Department of Education
San Fabian National High School
San Fabian, Pangasinan
School Canteen Manager
The School Canteen Manager has not submitted School Canteen Report for ___
months, from _____ to _____ which is noncompliance to DepEd Order No. 8 dated
February 6, 2007.

DepEd Order No. 8 , s. 2007 dated February 6, 2007 provides the Revised
Implementing Guidelines on the Operation and Management of School Canteens in
Public Elementary and Secondary Schools. Among the pertinent provisions of DepEd
Order No. 8 s. 2007 relative to the submission of financial statements are the following:

Reportorial Requirements


All entities operating and managing a school canteen,

including the laboratory canteen, shall regularly prepare
the following reportorial requirements to be submitted to
the DepEd and or CDA, whichever is applicable:

The school head/ principal shall also post on the schools bulletin board a
statement of receipts and disbursements, indicating the share it received from the teacher
cooperative managed canteen.

Accounting of Funds
5.4.1 A book of accounts and statement of sales and disbursements shall be
maintained for recording daily transactions related to the operations of the canteen. Receipts
and other similar documents shall be kept to support sales, purchases and disbursements made.
The books of accounts should be kept up-to-date and made available for examination and
inspection at any appropriate time by the school level auditing committee or the COA
representative based in the division office. Xxx

In view of the Commissions exclusive authority to promulgate accounting rules

and regulations vested in it by Section 2 (2) , Article IX-D of the 1987 Constitution, COA
issued COA Resolution No. 2014-003 dated January 24, 2014 which prescribes the
adoption of the Philippine Public Sector Accounting Standards (PPSAS) effective
January 1, 2014. In relation to the submission of financial statements of School Canteens
as required in DepEd Order No. 8 , s. 2007, the complete set of financial statements as
required in paragraph 21 of PPSAS 1 (Presentation of Financial Statements) are the

Statement of Financial Position (formerly Statement of Financial

Condition or Balance Sheet)

Statement of Financial Performance (formerly Statement of Operations

or Statement of Income and Expenses)

Statement of Changes in net assets/ equity

d Cash Flow Statement


When the entity makes publicly available its approved budget, a

comparison of budget and actual amounts either as a separate additional
financial statement or as a budget column in the financial statements; and

Notes, comprising a summary of significant accounting policies and other

explanatory notes

Likewise, since the canteen is a business-type activity of the school, its operations
and funds are governed by Section 8 of the General Provisions of Republic Act No.
10651 (General Appropriations Act for FY 2015) which reads:

Section 8. Revolving Fund. Revolving funds shall be established and

maintained only for receipts derived from business-type activities of departments,
bureaus, offices, and instrumentalities of the National Government, including
Constitutional Offices enjoying fiscal autonomy, SUCs, and GOCCs, and which
are expressly created and authorized by law or this section.
The revolving fund shall be separately recorded and deposited in an
authorized government depository bank, and considered self-perpetuating and
self-liquidating. All eligible obligations or expenditures incurred for the

operations of the business-type activity including maintenance of building and

facilities shall be charged against the revolving fund: PROVIDED, That no
amount of the revolving funds authorized in this Act shall be used for the payment
of discretionary and representation expenses.
The aforementioned provisions of NGAS, COA Circulars, COA and DBM Joint Circular
No. 2014-1, Section 74 of Presidential Decree (PD) No. 1445 and DepEd Orders explicitly stated
the deadlines for submission of required monthly and quarterly reports to concerned offices.
We recommend that the Management shall require the respective personnel to submit all
required reports on time to the Commission on Audit so that any deficiencies could be timely
detected for proper recommendation of actions that management will undertake to improve
agency operations.

State Auditor III
Audit Team Leader
State Auditor V
Regional Supervising Auditor
Proof of Receipt of AOM:
Date: __________________