UM DIGOS COLLEGE

Students’ Commission on Audit

Roxas Extension, Digos City
Telefax: (082)553-2914

Tessie G. Miralles, Ph. D.

VP – Branch Operations
UM Digos College
Roxas Ext., Digos City

Thru: Joe Carl B. Castillo

OSA Coordinator

INDEPENDENT AUDITOR’S REPORT

ORGANIZATIONS OF UMDC
REPORT ON THE FINANCIAL STATEMENTS

We have audited accompanying statement of receipts and disbursement of the Departments

and Organizations of the University of Mindanao Digos City as of first semester S.Y.
2019-2020.

The officers of these organizations are responsible for the preparation and the fair presentation
of these financial statements in accordance with Philippine Financial Reporting Standards, and
for such internal control relevant to the presentation of financial statements that are free or
material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these statements based on our audit. We

conducted our audit in accordance with the Philippine Standards Auditing. Those standards
require that we comply with ethical requirements and plan to perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.

An audit involves performing procedure to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedure selected depend on the auditor’s
judgement, including the assessment of the risk of the material assessment; the auditor
considers internal control relevant to the organization’s preparation and fair presentation of the
financial statement in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
organization’s internal control. An audit also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of accounting estimates made by the
management, as well as evaluating the overall presentation of financial statement.

We express an adverse opinion on the statement of receipts and disbursement of the overall
organizations of UMDC as of first semester S.Y. 2019-2020.

The basis of such opinion is due to the presence of the following overall findings:

1. Late submissions of documents from organizations. Due to this on the 2nd semester and
onwards, we would like to recommend the enforcement of submissions of liquidation
reports 1 week after the activities of organizations.
 UM DIGOS COLLEGE
Students’ Commission on Audit
Roxas Extension, Digos City
Telefax: (082)553-2914

2. Missing documents. Organizations are recommended to exercise due diligence in

handling their documents as those documents interest the student body.

3. Lacking supporting documents especially documents that represent transactions.

4. Mismatch on the CBL and the activities made as an organization. (eg. Academic
organizations spending and performing activities as an organization in Departmental
activities eg. Mini-olympics)

5. Lacking disclosures on the Financial Statement. The SCOA will improve the format of
the Financial Statements to present appropriate disclosures especially as to the assets
and liabilities of the organization. This includes the following examples:
a. In-kinds as sanctions would be disclosed as inventories.
b. Liabilities from outside entities would be disclosed (eg. Liability from T-
Shirt printing business)
c. Assets would be disclosed (eg. Printers, Balls, Nets, Tarpaulin)
d. And any other necessary disclosures.

6. Inter-organizational transfers of cash (Subsidies). The SCOA would recommend that

these transfers would be eliminated on the proceeding semesters since it is very
vulnerable to misstatements and fraud.

7. Excess of funds used in an activity are not redeposited in the bank.

8. “Claimed” stolen organization cash balance by the CDSG president. Whether or not
the person/s responsible would return/reimburse the claimed stolen amount, the SCOA
would recommend a preventive suspension of the president in doing the president’s
functions as an officer of both CDSG and DTE. The Vice-president of DTE may take
over as president meanwhile the CDSG officers may re-elect a president.

9. Alarming balance on previous administrations were not remitted to the new

administration especially smaller organizations.

10. The Senior High School Department (SHSD) is still under the Office of Student Affairs.
They have not submitted any due diligence documents.

11. SCOA was not given a single centavo for the audit budget but we still conducted our
audit with outmost quality to express an opinion in compliance with ethical
requirements to obtain reasonable assurance.

12. Organizations with no collections have no activities is still questionable. Especially

Academic organizations.

13. Status of organizations’ submission of documents:

 UM DIGOS COLLEGE
Students’ Commission on Audit
Roxas Extension, Digos City
Telefax: (082)553-2914

1. ICPEP.SE – Late Submission Disclaimer 20. LTVTEDS – Late Submission Disclaimer

2. JPMAP 21. CDSG
3. JAAT 22. DBA
4. TNE 23. DTE
5. GLEE 24. DAE
6. PGITS 25. DAS
7. UMHS 26. THE KIT
8. IMSC 27. UM-YCM – Not submitted
9. PSSL 28. GETS – Not submitted
10. JFINEX 29. SAMAFIL – Not submitted
11. SPEM – Late Submission Disclaimer 30. PFO – Not submitted
12. SELL 31. JAPS – Not submitted
13. MSA 32. SFTA – Not submitted
14. JPIA 33. CFS – Not submitted
15. GMITS 34. DCJE – Not submitted
16. SOITS 35. SHS – Not submitted
17. MSA 36. SGO – Not submitted
18. IMA 37. HSSO – Not submitted
19. DTP – Late Submission Disclaimer 38. TVLO – Not submitted

Therefore 12 out of 38 recognized organizations have not yet submitted documents to be

audited. This summary is in accordance with the list of recognized organizations by OSA.

Sincerely yours,

John Dave C. Arquio

SCOA Chairman

Noted by:

Jess Anthony N. Casagan, CPA

SCOA Adviser

cc: D.O.
OSA
All College Dept.