Republic of the Philippines

COMMISSION ON AUDIT
Regional Office No. IV-A
Audit Team R4A-08, Audit Group NGS-3-B
Office of the Auditor
Commonwealth Avenue, Quezon City
___________________________________________________________________________

AOM No. 2020-005 (2019)

Date: January 22, 2020

AUDIT OBSERVATION MEMORANDUM (AOM)

For: DIRECTOR MARIO G. LIPANA

OIC-Regional Director
Commission on Audit
Regional Office No. IVA
Commonwealth Avenue, Quezon City

Attention: Consolacion J. San Luis

OIC-Service Chief
Administrative, Training and Finance Services

Delvee G. Sacdalan
Regional Accountant

We have audited the payroll and its supporting documents pertaining to the honoraria of
the lecturers, facilitators and/or coordinators incurred for the period ending December 31, 2019,
and observed the following deficiency:

Honoraria of the lecturers, coordinators and/or facilitators amounting to P438,925.61 were

not supported with complete documentation, contrary to Section 4 of Presidential Decree
No. 1445 and COA Circular No. 2012-001 dated June 14, 2012. Moreover, honoraria of the
lecturers who were not part of the agency were included in the payroll, contrary to
Appendix 33 of the Government Accounting Manual for National Government Agencies,
Volume II, hence, the propriety and validity of the transactions could not be ascertained.

Item 6, Section 4 of PD No. 1445 states that claims against government funds shall be
supported with complete documentation.

Item 5.7.4 of COA Circular No. 2012-001 prescribes the guidelines and documentary
requirements for the honoraria of the lecturers/coordinators, including but not limited to:

Office Order
Coordinator’s Report on Lecturer’s Schedule
Course Syllabus/Program of Lectures
Duly approved DTR in case of claims by the coordinators and facilitators
 Appendix 33 of the Government Accounting Manual (GAM), Volume II states that
payroll is a form used by and agency/entity to pay salaries, wages and PERA, and other
monetary benefits to its officers/employees for a specific period of time or on a given date.

The Regional Office incurred P438,925.61 for the payment of honoraria of the lecturers
and coordinators, as shown below:

Particulars Reference No. Amount

Seminar on Use of GAM for NGAs for Agency Personnel on July 15-19, 2019. JEV-2019-08-000069 18,600.00
Seminar on RRSA and RRPC for Agency Personnel on July 25-26, 2019. JEV-2019-08-000070 8,650.00
Seminar on Gender and Development (GAD) Planning and Budgeting for Agency
JEV-2019-08-000073 29,530.26
Personnel on August 5-7, 2019.
Seminar on Appraisal and Disposal of Government Properties on August 14-16,
JEV-2019-09-000095 12,175.00
2019.
Seminar on Cash Management and Control System (CMCS) for Agency Personnel
JEV-2019-09-000096 15,975.00
on September 4-6, 2019.
Seminar on Customized Training on Laws and Rules on Government Expenditures
(LARGE) for Personnel of DepEd Division Office, Calamba City on August 27-29, JEV-2019-09-000099 55,150.00
2019 and August 28-30,2019
Seminar on Laws and Rules on Government Expenditures (LARGE) for Agency
JEV-2019-10-000129 21,075.00
Personnel on October 1-4, 2019.
Customized Training on PSMS and ADUP for DepEd Calamba City Personnel on
Sept. 25-26, 2019 at Chipeco Hall, Jose Rizal Memorial School, Calamba City, JEV-2019-10-000130 22,100.00
Laguna.
Trainer's Training on Brgy Financial Management for COA Personnel on October
JEV-2019-10-000133 13,475.00
16-18, 2019
Seminar on Gender and Development (GAD) Planning and Budgeting for Agency
JEV-2019-11-000149 29,880.26
Personnel on September 18-20, 2019.
Trainer's Training on Barangay Financial Management for COA Personnel on
JEV-2019-11-000209 13,875.00
October 23-25, 2019.
Trainer's Training on Barangay Financial Management for COA Personnel on
JEV-2019-11-000214 14,175.00
November 6-8, 2019.
Seminar on Property and Supply Management System (PSMS) on November 12-15,
JEV-2019-11-000216 21,562.50
2019.
Lecture on Stress Management on November 19, 2019. JEV-2019-12-000539 19,175.00
Seminar on VALUES ENHANCEMENT PROGRAM on June 24-26, 2019 per
JEV-2019-08-000625 11,200.00
Office Order No. 2019-145 dated June 13, 2019.
Seminar on CASH EXAMINATION on July 9-12, 2019 per Office Order No. 2019-
JEV-2019-08-000668 14,800.00
158 dated June 28, 2019.
Seminar on AUDIT OF GOVERNMENT EXPENDITURES on July 30 to August
JEV-2019-08-000673 17,800.00
2, 2019 per Office Order No. 2019-188 dated July 12, 2019.
ORIENTATION SEMINAR on August 7-9, 2019 per Office Order No. 2019-187,
JEV-2019-09-000718 19,984.17
2019-187A and 2019-214 dated July 12, July 24 and Aug. 1,2019.
Lecture on Stress Management for COA RO IV-A Personnel held on August 20,
JEV-2019-09-000758 12,631.58
2019.
RRSA and RRPC SEMINAR on August 22-23, 2019 per Office Order No. 2019-
JEV-2019-09-000730 8,825.00
226 dtd 08/15/2019.
Seminar on law on Procurement (RA 9184) and Philippine Bidding Documents on
Sept 11-13, 2019 per Office Order No. 2019-241 dtd 08/27/2019, Office Order No. JEV-2019-09-000737 16,575.00
2019-241A dtd 09/05/2019.
Seminar on Gender and Development (GAD) Planning and Budgeting on
JEV-2019-10-000825 28,680.26
September 25-27, 2019.
Lecture on Stress Management on November 19, 2019. JEV-2019-12-000986 13,031.58
TOTAL 438,925.61

Review of the transactions disclosed that course syllabus/programs of lectures and the
duly approved DTR in claims by the coordinators and facilitators were not attached.
 It was also noted that, there were cases wherein honoraria of the lecturers who were not
officers/employees of the Regional Office were also included in the payroll.

The incomplete documentation of the transactions and the inclusion of the payment for
the honoraria of the lecturers who were not part of the Regional Office, aside from non-
adherence to existing rules and regulations, the propriety and validity of the transaction were
difficult to ascertain.

We recommend that the OIC-Regional Director instruct the Regional Accountant

to:
 ensure that payroll and/or disbursement vouchers have complete supporting
documents; and

 use proper form in paying the honoraria of the lecturers who are outside the
agency.

May we have your comments on the foregoing audit observation within five (5) days
upon receipt hereof.

MARIA VICTORIA D. ALBANO

Audit Team Leader

ANASTACIA V. ARGENTE
OIC - Regional Supervising Auditor

Proof of Receipt of AOM

Copy for Signature Date
Director Mario G. Lipana
OIC - Regional Director
Ms. Consolacion J. San Luis
OIC – Service Chief
Delvee G. Sacadalan
Regional Accountant