DepEd QCDivision TBP MS2002-01B PDF

Management Services
Report No. 2002-01B

Sectoral Performance Audit
Textbook Program
for Elementary Students
DEPARTMENT OF EDUCATION
DIVISION OF QUEZON CITY
Republic of the Philippines
Commission on Audit
MANAGEMENT SERVICES
Commonwealth Avenue, Quezon City, Philippines
Telephone Nos.: 931-9235 , 931-74-55
March 5, 2003
The School Division Superintendent

Division of City Schools
Quezon City
Madam:
We are pleased to transmit the report on the sectoral audit of the textbook
program for elementary students. The audit was conducted in compliance with
COA Assignment Order No. 2002-023 dated July 18, 2002 by a team from this
Office from July 18 to October 30, 2002. The results of the audit were discussed
with the City Mayor and a representative from the Division of City Schools,
Quezon City in an exit conference conducted on November 5, 2002. Their
comments were incorporated in the report where appropriate.
The audit covered the implementation of textbook program of the

government from January 2001 to September 2002 intended for School Year
2001-2002. The agencies included in the audit were the Department of Education
(DepEd) Main Office, DepEd National Capital Region and the Division Offices
and Local Government Units in the Cities of Quezon, Caloocan and
Mandaluyong.
The audit focused on the identification of needs for additional textbooks

and allocation and distribution of available textbooks. The performance of the
agencies audited were assessed using the following criteria.
a. Established Policies and Guidelines

b. Appropriate Resourcing
c. Comprehensive Performance Monitoring Framework
d. Sound Risk Management Process
e. Effective Relationship/Coordination of Government Offices
We look forward to the proper implementation of the recommendations

and we would appreciate being informed on the actions taken on this report
within one month from receipt hereof.
We acknowledge the cooperation and assistance extended to the audit
team by the officials and staff of the Division Office and the City Government of
Quezon.
Very truly yours,
By Authority of the Chairman:
ILUMINADA M.V. FABROA

Director IV
Management Services
Contents Page
Part I Executive Summary 1
Background 2
Audit Objective 4
Audit Scope and Methodology 4
Audit Conclusion 5
Management’s Reaction to Audit Observations 7
Part II Audit Observations and Conclusions 8
Chapter 1 Policies and Guidelines 9
Determination of Textbook
Requirements 10
Introduction 11
Guidelines/Policies 11
Management’s Comments and Team’s
Rejoinder 15
Recommendations 16
Receipts and Distribution of Available

Books 17
Introduction 17
Guidelines/Policies 17
Management’s Comments and
Team’s
Rejoinder 20
Recommendations 21
Chapter 2 Risk Management Process 22
Introduction 23
Risk Management Processes 24
Teams Rejoinder 27
Recommendations 27
Contents Page
Chapter 3 Appropriate Manpower Resourcing 29
Introduction 30
Inadequate Work Plan 31
Evaluation of Performance 32
Training 32
Team’s
Rejoinder 34
Recommendations 34
Chapter 4 Performance Monitoring 36
Introduction 37
Performance Reporting 37
Effectiveness Measures 38
Procurement Plan 44
Rejoinder 44
Recommendations 46
Chapter 5 Effective Relationship/Coordination of

Government Offices 47
Introduction 48
Coordination within DepEd Offices and
between the DepEd and the Local
Government Units 48
Rejoinder 51
Recommendations 52
Part I
Executive Summary
1
EXECUTIVE SUMMARY
BACKGROUND
The provision of free elementary education is one of the priority programs of the
government identified in the Medium Term Philippine Development Plan for
2001-2004. The provision of school education by the government carries with it
the responsibility to provide facilities by which education will be delivered.
The appropriation for school education in calendar years 2001-2002 for the
implementation of the Department of Education (DepEd) is P169.385 billion, the
highest among all agencies, representing 12.73% of the total government budget.
Of the total budget, P1.609 Billion was allocated for the procurement of
textbooks.
For school year 2001-2002, there were 11,927,480 elementary students enrolled
throughout the country distributed in 16 regions. Of the total students, 237,552
were enrolled in 94 schools within the Division of Quezon City.
The adequacy of textbooks largely relating to quantity access has been a

recurring issue for a number of years. Newspaper articles, budget debates and the
July 23, 2001 State of the Nation Address (SONA) of President Gloria
Macapagal-Arroyo highlighted the importance of the provision of education
facilities including textbooks to improve the quality of education.
The access of students to textbooks has an impact both on the effectiveness of

the education system and the educational opportunities available to students. The
importance of textbooks as a tool in the learning process has been recognized by
the government. For this reason, the provision of textbooks was included in
Social Expenditure Management Project (SEMP) I of the government funded by
the World Bank and implemented by the DepEd Main Office in coordination
with the field offices (Region, Division and District Offices). Of the total loan
amount of P2.963 B for the education component, P1.648 B was allocated for the
procurement of textbooks. SEMP I was intended to be implemented from
February 2000 to December 31, 2002.
SEMP I aims to produce 25,000,000 textbooks for elementary and high school
students by the end of 2002 in order to achieve a 1:2 textbook-pupil ratio. The
projected quantity of 25,000,000 to be procured out of the loan was computed by
the DepEd based on an estimated cost of P70 to P80 per book. The books were
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EXECUTIVE SUMMARY
however acquired at a lower cost of P30 to P40 resulting in procurement of

more books than the targeted quantity.
The DepEd objective for SY 2001-2002 was to move to a textbook pupil ratio of
1:1 in 5 priority subjects (Science, Math, English, Filipino, Social Studies) for
Grades I to IV. The textbook pupil ratio in SY 1999-2000 as reflected in the
briefing materials for the proposed DepEd budget for calendar year 2001 was
1:5.
As of August 2002, 42,213,558 books for elementary and secondary students

nationwide had` been contracted by the DepEd to be funded under SEMP I of
which 9,586,889 were allocated for elementary schools within the National
Capital Region (NCR).
As the financing agency for SEMP I, the World Bank assesses the
implementation and progress of the project on an on-going basis. In one of their
Assessment Reports it was noted that, there has been a number of long standing
problems in the distribution and utilization of textbooks under the program
including the procurement and receipt, financial reporting, communication links
between the Central and Regional Offices and links between planning and
financial management functions. The absence of a reliable, integrated and timely
information system was also reported to be a major weakness.
In addition to the loan secured to finance SEMP I, the Division Offices,

including the Division of Quezon City, also procure textbooks from their own
appropriations for Maintenance and Other Operating Expenses (MOOE).
In order to further ensure the delivery of education services, the Special

Education Fund (SEF) under the Local Government Units (LGUs) was created
under Republic Act No. 5447 enacted by the Philippine Congress in 1969, for the
purpose of providing additional financial support for education facilities and
services as provided by the Constitution. Among the activities to be undertaken
through SEF is the procurement of textbooks.
Using SEF, the City Government of Quezon procure textbooks for the use of
schools under its jurisdiction.
The funding of textbooks for the educational needs of the DepEd National
Capital Region (NCR) is therefore being funded through three sources, SEMP I,
the Divisional MOOE and the SEF. This sectoral audit focused on evaluating
whether thru the implementation of these programs, the government’s objective
of attaining 1:1 textbook pupil ratio for Grades I to IV had been attained.
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EXECUTIVE SUMMARY
In the process, the team assessed operations of the different agencies involved in
meeting this objective by determining the textbook requirements and
monitoring the progress of the program.
AUDIT OBJECTIVE
The audit objective was to assess whether the implementation of SEMP I and
SEF have been effectively managed to contribute to the effective achievement of
the government’s objective of giving quality education through the provision of
textbooks considering the determination of textbook requirements and
distribution of available books.
AUDIT SCOPE AND METHODOLOGY
The audit covered the implementation of the textbook component of SEMP I and
SEF programs of the government for elementary education from January 2001 to
September 2002 intended for SY 2001-2002 considering the determination of
textbook requirements and distribution of available books. The agencies
included in the audit were the DepEd Main Office, DepEd NCR and the
Division Offices and LGUs in the Cities of Quezon, Caloocan and
Mandaluyong.
As of audit date, the total textbook allocation for elementary students from
SEMP I for the Division of Quezon City was 690,414 books. Procurement of
textbooks by the Division Office from January 2001 to September 2002
amounted to P3,516,201.90 while procurement by the City Government out of
SEF for the same period amounted to P17,811,957.30. The City Government also
purchased textbooks from the General Fund amounting to P3,841,764.80.
The performance of the Division Office was assessed using the following
criteria:
a. Established Policies and Guidelines;

b. Sound Risk Management Process;
c. Appropriate Manpower Resourcing;
d. Comprehensive Performance Monitoring Framework; and
e. Effective Relationship/Coordination of Government Offices.
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EXECUTIVE SUMMARY
During the audit, the team performed the following procedures, among others:
a. Reviewed existing policies and guidelines on the determination of

textbook requirements and distribution of available textbooks;
b. Interviewed personnel involved in the implementation of SEMP I and
SEF;
c. Reviewed accomplishment/annual reports, work plans and other relevant
reports pertaining to the implementation of SEMP I and SEF;
d. Assessed the Risk Management Process in place;
e. Reviewed and evaluated the roles and responsibilities of agencies involved
in the implementation of SEMP I and SEF;
f. Inspected selected schools and assessed the sufficiency of textbooks
provided to the students;
g. Analyzed the existing textbook condition based on available records;
h. Determined if the actions taken by the different agencies involved in the
implementation of SEMP I and SEF are coordinated;
i. Assessed the adequacy of trainings/seminars and performance/
accomplishments of personnel involved in the implementation of SEMP I
and SEF; and
j. Assessed the extent of the implementation of SEMP I and SEF against
program objectives.
The audit was conducted from July 18 to October 31, 2002 pursuant to COA
Assignment Order No.2002-023 dated July 18, 2002. The results of the audit
were discussed with the City Mayor, other City Government officials and a
representative from the Division Office of Quezon City on November 5, 2002.
AUDIT CONCLUSION
The DepEd, thru the Division Office and the City Government of Quezon have
not effectively managed the implementation of SEMP I and SEF through the
determination of textbook requirements and the distribution of available books
contributing in a failure to attain the government’s objective of achieving a 1:1
textbook pupil ratio in 5 priority subjects for Grades I to IV.
At the time of audit, only 6 subjects for Grades I to IV within the Division of
Quezon City have sufficient textbooks. The available books in these subjects
even exceeded the textbook requirements by 25,785 as the Division Office was
not able to determine the actual needs per subject and grade. The excess books
will still increase to 163,185 upon receipt of the forthcoming deliveries from
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EXECUTIVE SUMMARY
IMCS of additional allocation for the Division Office. On the other hand books
in other subjects are short by 179,643. The insufficiency of books reduces the
effectiveness of the education services provided to students thru the provision of
sufficient books in all subjects, grades, sections and schools and wasted limited
and valuable government resources.
The excess books were among those procured by the Instructional Material
Council Secretariat (IMCS) under SEMP I, by the Division Office out of MOOE
and by the City Government of Quezon out of SEF.
At the time of audit, while there were excess books in some subjects, some
schools did not have sufficient books for these subjects due to inequitable
distribution of textbooks among schools. The purpose of providing textbooks
then which is to enhance and strengthen the student’s capacity to learn was
defeated and rendered such books worthless.
The audit concluded that the shortcomings in the implementation of SEMP I

thru the Division Office and SEF programs discussed above were caused by the
following:
a. Inadequate guidelines in the determination of textbooks requirements,

distribution and effective utilization of available books;
b. The Division’s failure to monitor the sufficiency of textbooks available to
the students within the Division;
c. Lack of coordination of agencies involved in the implementation of
SEMP I and SEF; and
d. Inadequate planning to manage the risks in the implementation of
SEMP I and SEF that led to procurement of books in excess of the
actual requirements and inequitable distribution of books.
The audit covered the implementation of the textbook component under SEMP I
and procurement under SEF from January 2001 to September 2002. The textbook
program is again included in SEMP II to be implemented from September 2002
to December 2005 to complete the on-going reforms started in SEMP I. The
Division Office and City Government are also continuously addressing the
textbook needs of students. Therefore, for a more effective implementation of
SEMP II and SEF and to avoid the recurrence of the problems discussed above,
the Division Office and the City Government should seriously consider
addressing these concerns.
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EXECUTIVE SUMMARY
MANAGEMENT’S REACTION TO AUDIT OBSERVATIONS
The results of the audit were discussed with the City Mayor, other City
Government officials and a representative from the Division Office in an exit
conference conducted on November 5, 2002. Overall, the Division Office and
the City Government acknowledge the team’s observations. The Division
Superintendent assured the team that all recommendations shall be considered
and that implementation shall follow. On the other hand, the City Government
did not provide any written comments.
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Part II
Audit Observations
and
Recommendations
8
Chapter 1
Policies and Guidelines
9
POLICIES and GUIDELINES
DETERMINATION OF TEXTBOOK REQUIREMENTS
INTRODUCTION
Effective policies and guidelines established by an agency for running the day to
day business contribute to the achievement of the program’s outcome. It also
helps the agency mitigate the effect of risks, detect and prevent untoward
incidents and safeguard the attainment of the program’s objective. This should
also be clearly documented in procedures manuals and made available to staff
responsible for their implementation.
The audit noted that, the Division Office and the City Government have not
issued guidelines to ensure that the data on the number of textbooks available
and still needed by the students was accurate. As a result, the reported needs
were not reflective of the actual textbook requirements. Consequently, both
offices were not able to address the priority needs and they tend to procure
textbooks for subjects already being addressed by the IMCS resulting in excess
books in some subjects while books in other subjects remained insufficient to
address the student needs. The insufficiency of books in other subjects affects
the learning capacities of students and eventually limit work opportunities.
In relation to this program, the DepEd issued the following orders to submit the
total textbook requirements:
a. DECS Order No. 31 dated May 12, 2000

Regional Offices should prepare their textbook allocation
lists for priority subjects by grade level by district and
submit the same to the DepEd by May 31, 2000.
b. DECS Memo. No. 87 s. 2001 dated March 12, 2001
Guidelines on the use of CY 2001 Regional appropriations

for instructional materials. Regional Offices to prepare
summary of textbook requirements for five priority subjects
on a per grade/year per division basis.
10
c. Memorandum dated May 16, 2001 of Usec. Ramon C. Bacani
Division Offices to report the textbooks needed and

available as of May 15, 2001 on a per school, per district,
and per division basis for consolidation and submission to
IMCS not later than May 30, 2001.
OBSERVATION
The Division Office and the City Government of Quezon do not have
established guidelines to determine the actual textbook requirements.
They merely rely on the guidelines issued by the DepEd which were
found insufficient to produce accurate data in a timely manner. As a
result, the needs were not properly addressed as the reported needs were
not reflective of the actual textbook requirements. As of audit date,
books in some subjects exceed the requirements while books in other
subjects are still inadequate. This contributed to the failure of the
government to achieve the objective of attaining 1:1 textbook pupil ratio
for Grades I to IV in 5 priority subjects.
The procurement of books within the Division is a shared responsibility of the

DepEd, thru the Division Office, and the Quezon City Government. For this
reason, in addition to textbook allocation from the IMCS, a substantial amount is
being appropriated yearly by the Division Office and the City Government to
augment the textbook needs of students. The team however noted that, while
these offices were addressing textbook needs, they have not issued guidelines to
determine their textbook requirements and ensure each agency is working
towards the same goal and objective. The Division Office merely relies on the
guidelines issued by the DepEd which were found insufficient to establish the
actual textbook needs for the following reasons:
a. The guidelines were issued only for a particular period and not intended to
be regularly observed. It was not intended to make the determination of
needs a continuing activity for the Division Office, and yet procurement of
books is being undertaken by different offices on an on-going basis.
b. At present, elementary books are being procured by the IMCS chargeable

against SEMP I and the Third Elementary Education Program (TEEP)
11
funds; by the Division Office out of MOOE; and the Quezon City
Government out of SEF. The strategy to avoid duplication of needs being
addressed by these offices were not established.
c. The reports were required to be submitted by the Regional Offices within

16 to 20 days after the issuance of the guidelines. As the data to be
reported by the Division Offices was sourced from the schools, the
reporting deadline was rarely met by the Regional Offices within the time
frame given.
d. Under the DepEd guidelines, the following factors should be

considered in arriving at the total textbook requirements for SY 2001-
2002 to be submitted within the deadline set for planning forthcoming
purchases:
Deadline for
Guideline Submission Factors to be Considered
DECS Order No. 31 05-31-00 1. Projected SY 2001 enrollment;

05-12-00 2. Estimated usable textbook per grade level for
the five priority subjects (procured before SY
2001 from other sources);
3. Estimated number of textbooks that may be
procured out of SEMP 1999 and 2000. (Note:
SEMP 1999 and 2000 started to be
implemented in CY 2000)
DECS Order No. 87 03-30-01 1. Textbook requirements for five priority

03-12-01 subjects in elementary on a per grade per
division basis for utilization of nationwide
appropriation for procurement of textbooks.
Memorandum dated 05-30-01 1. Total textbook available and needed for five
05-16-01 priority subjects.
e. In using these guidelines, the Division Office could not establish the actual
textbook needs of schools and students. The guidelines do not address the
following:
1. The office responsible for preparing the textbook requirement report;

2 The basis for overall textbook requirements such as:
 the source data of the Division Office and the schools;

 the basis of SY 2001-2002 projected enrollment . Is it a certain
percentage of previous enrollment or another option? What
particular month would be considered as the basis of projecting
enrollment for the succeeding year?;
 the office responsible for estimating the usable textbook;
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 the basis of the estimate;

 the books that will form part of usable textbooks. Is it confined to
the so-called New Generation books or include relevant old books
in good condition?;
 the office responsible for assessing usable textbooks;
 the source data of usable books. Is it based on actual inventory of
prior year or latest inventory report or from a separate report to be
submitted by the schools.
3. The list of Divisions with textbook allocations from other sources;

4. Percentage of the total allocation with the total textbook requirements.
Will the allocation list cover the total textbook requirements?;
5. The office responsible for checking/evaluating the data submitted by
the schools;
6. The basis for evaluation. From what report will the evaluator validate
the data submitted by the Schools;
7. The office responsible for the implementation and dissemination of
the guidelines and assessing their applicability.
On the basis of these issuances, the Division Office submitted the reports
required. However, the audit noted that due to inadequacies in the guidelines,
confusion over reporting needs and the time frame to collect the data, reporting
was not undertaken effectively and was then of little value in the procurement
decision making process. The reports which refer to the needs for the same
school year 2001-2002 reflects different figures without any explanations
casting doubts on the accuracy of the reports.
NEEDED TEXTBOOKS (5 Priority Subjects)

GRADE May 2000 Feb. 2001 May 2001
I 57,713 62,694 52,596

II 70,163 56,403 52,696
III 187,521 80,590 60,597
IV 163,704 178,404 89,281
To ascertain the accuracy of the reports, the team then analyzed the submitted
needs for Grade 4. The needs submitted on May 2000 increased by 14,700 in
February 2001 when there were deliveries between the period May 2000 to
February 2001 of 30,000 copies. The needs therefore was expected to decrease
by the same quantity. On the other hand, the needs submitted on February 2001
decreased by 89,123 in May 2001 when only 13,700 copies were delivered
from February 2001 to May 2001. This demonstrates that the methods for
13
calculating needs do not have a common basis. This inconsistencies led to a

problem in ensuring the accuracy of the reported needs:
NEEDS AS OF DIFFERENCE ACTUAL DELIVERY

------------------------------------------- -------------------------------- -------------------------------
May 2000 Feb. 2001 May 2000 Feb. 2001

Subjects May Feb. May to to to to
2000 2001 2001 Feb. 2001 May 2001 Feb. 2001 May 2001
English-L 23624 29259 No break- (5635) 4150

R 24782 29381 down of (4599) 4150
Science 19232 31676 needs per (12444) 5400
Math 23534 - subject 23534 20000 -
Filipino - W 22460 24721 area (2261) 5000 -
Filipino-P 22353 27231 (4878) 5000 -
Sibika 27719 36136 (8417) -
Total 163704 178404 89281 14700 (89123) 30000 13700

====== ===== ===== ===== ====== ===== =====
Consequently, as of audit date, as the needs reported were not reflective of the
actual textbook requirements, the actual needs of students were not addressed.
Hence, books available in selected subjects already exceeded the actual
requirements while books in other subjects remained inadequate. This
contributed to the failure of the government to achieve the objective of attaining
1:1 textbook pupil ratio for Grades I to IV in 5 priority subjects.
On the other hand, at the time of audit, the Quezon City Government relies
heavily on the needs/requests submitted by the Division Office without
validating these needs as to accuracy. The audit however, noted that the
submitted needs to the City Government are often the same needs being
addressed by the DepEd from the national level to the division level. This is
manifested in the 2001 Annual Procurement Plans of the Division Office and
the City Government chargeable against the SEF which contains exactly the
same books at the same quantity.
This has created two major risks for the City Government in ensuring efficient
and effective expenditure of SEF. One is that, the requests submitted by the
Division Office may not reflect the actual needs while the doubling up of
submission of requests to the DepEd and the City Government guarantees the
purchase of excess books as what is actually happening. The other is the failure
to ensure that the role of the City Government in providing additional funds to
meet the shortfall identified by the DepEd is met.
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Management’s Comments Team’s Rejoinder
The Division of City Schools of Quezon The Division Office should consider
City submits various reports on the informing the NCR or the IMCS of all
needed textbooks to the DEP-ED NCR procurement undertaken by the Division
but deliveries of SEMP textbooks were Office after the needs have been
made two years later, thus, the reported submitted and providing an updated list
requirements were no longer in of needs for their guidance and
conformity with the present needs. information.
There should be immediate delivery of The team appreciates the management’s

needed textbooks to school in order to immediate action of formulating the
meet the reported requirement. The necessary guidelines to determine their
Division Office came up with the actual textbook requirements. Although
guidelines to determine the actual the team was not furnished with a copy of
textbook requirements, ensuring the the said guidelines, it is presumed that, on
accuracy of the data gathered by the basis of such guidelines, the Division
incorporating the following as may now be able to determine their actual
recommended. needs to improve their performance and
eventually achieve their objective.
a. The office responsible in preparing
such reports and
verifying/validating the
correctness;
b. The specific source of data from
which the reports should be based;
c. Benchmarking of reports
specifically which are to be
submitted periodically considering
the magnitude of the data to be
gathered;
d. Sanctions for failure to comply or
for submitting incomplete and
inaccurate data.
In order that appropriate preparations

could be made, the Division Office is
coordinating, with the Dep-Ed NCR and
IMCS regarding the delivery schedules
within the prescribed period for proper
notification to the school District Office.
15
The Division Office is coordinating with

the Regional Office/IMCS regarding the
non-delivery of textbooks within the
delivery schedule indicated in the notice
so that appropriate action could be taken
thereon, per recommendation.
RECOMMENDATION
In the absence of any guidelines prepared by the Central Office, the

Division Office should consider formulating its own guidelines to
determine the actual textbook requirements. The guidelines should
ensure, among others, that the data to be gathered would be accurate by
incorporating the following:
a. The office responsible in preparing the reports and in

verifying/validating its correctness;
b. The specific source of data from which the reports should be
based and validated;
c. The deadline for submission of reports required to be submitted
periodically considering the magnitude of the data to be
gathered;
d. Monitoring system to ensure compliance and early identification
of problems; and
e. Sanctions for failure to comply or for submitting incomplete and
inaccurate data.
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RECEIPTS and DISTRIBUTION OF AVAILABLE BOOKS
INTRODUCTION
Considering that the total textbook requirements could not all be addressed at
once, the distribution process that would ensure that books are actually delivered
at schools in time for the opening of classes is crucial. To address this problem,
the delivery function was passed on by the DepEd to the suppliers. As prescribed
in the guidelines and in the contracts, books will be delivered direct to the
District Offices by the suppliers. The suppliers however need to inform the
Regional/Division Offices of the delivery schedules 15 days before the delivery
dates. The District Offices in turn will deliver the books to schools under their
jurisdiction in time for the opening of classes.
The audit concluded that there were some lapses on the part of the suppliers
particularly in delivering the books on time and informing the District Offices of
the actual delivery schedules. There were also cases of undistributed books as
the District Offices were not properly equipped to perform the function of
receiving and distributing books. The distribution problems create a backlog on
the students’ study program of a particular subject matter and retard the progress
of their education development.
OBSERVATIONS
1. The School District Offices were not notified/informed of the

delivery schedules within the prescribed period. As a result, the
District Custodians are sometimes not present to check and receive
the deliveries and prepare for storage facilities. Some textbooks
were also delivered by suppliers 8 to 36 days after the delivery
schedules depriving the students on the immediate use of this
education resource.
17
As provided in the distribution guidelines, the Regional Offices should

inform the District Offices of the delivery schedules and provide them a list
of textbooks to be delivered by the suppliers as a basis for checking,
inspecting and accepting deliveries.
As gathered from the interviews with the District Supervisor of District

Offices II, VI , XVI and XVIII, these offices were not informed by the
Regional Office of the distribution schedules. Records further show that, the
Division Superintendent was the one advised by the Regional Office about
the delivery schedules. Such advises were not however within the prescribed
period and were served only when actual delivery is already on-going:
Supplier Date of Memo Date Rec’d by Div. Off Delivery Schedule
JC Palabay 02-07-02 02-08-02 02/02-03/31/02

Watana 11-13-01 - To start on 11-13-01
SD Publication 04-04-02 - 04/15-29/02
FNB Educ. Inc. 01-11-02 01-14-02 01/7-23/02
It was also observed that, the notices did not indicate the specific date and
time of delivery of the books to any particular District Office. It merely
notified the Division Office that a particular supplier would deliver the books
within a certain period. Considering that the Division has 19 District Offices,
the District Offices, even if notified, would not know the exact date and time
of the delivery.
The very purpose then of sending notice, which is to ensure that the District
Supervisor or his/her duly authorized representative is present at the time of
delivery, is defeated. It may be noted that, the designated Property
Custodians are in most cases, teachers with regular teaching loads. In view
of this deficiency, the supplier had either to wait for the availability of the
Property Custodian or had to return to have the deliveries accepted.
The team also noted that in the case of District VI, there were instances
where textbooks were delivered by the suppliers 8 to 36 days after the
scheduled delivery dates:
No. of days from

Supplier Delivery Schedule Actual Delivery 02/28/02
EDUSYSTEM 01/25/02/28/02 04-05-02 36

EDUSYSTEM -do- 03-08-02 8
18
There were however no records to show that, the District Office had
informed the IMCS or the Regional Office of these problems. Meanwhile,
the students were deprived on the immediate use of these textbooks
affecting the quality of education services provided to students by the
government.
2. The District Supervisors were not fully equipped to perform the

functions of receiving the textbook deliveries and distributing the
books to schools. There are no storage facilities, personnel, and
equipment available for distribution, thus the books were not
distributed to schools in time for school opening. These problems, if
left unattended, would affect the availability of books to students at a
greater scale.
As prescribed in the guidelines, the suppliers should distribute the books

directly to the District Offices. The books should be received by the District
Supervisor or any of his/her authorized representative. The guidelines also
provide that the District Offices are to have adequate storage facilities to
protect the delivered textbooks and distribute the books to schools before the
opening of classes.
The District School Supervisors handle 2 to 3 school districts at a time and

are stationed in one of the schools under their respective jurisdiction. They
do not have staff to assist them in the discharge of their functions. In order
to manage the additional function involving receipt, storage and distribution
of textbooks, they utilize the Property Clerk/Custodian assigned to the school
where the District Office is located. Textbooks are distributed to schools by
requesting respective school Property Clerks to collect their allocation at the
District Offices.
The books were stored in various places such as:
District Storage Area
II Library
XVI Classroom
XVIII Computer Laboratory
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In order to determine how the District Offices manage this situation, the team
inspected School District VI on September 16, 2002. Inspection revealed
that, in view of inadequate resources, there were cases of undistributed
books to schools. At the time of inspection, 1,740 textbooks received on May
27, 2002 intended for Pasong Tamo and Tandang Sora Elementary Schools
were still in the custody of the District Office. There were no documents
presented indicating that their respective school Property Custodians had
been informed to collect their textbook allocation. However, the District
Custodian claimed that they are waiting for the school Property Custodians
to collect these books.
In another case, books received on April 6, 2002 were distributed only on

September 13, 2002 or three months after the opening of classes.
The District Supervisors in School District Nos. II, VI, XVI and XVIII
claimed that the said constraints were reported to the Division Office. The
team could however not document the actions taken by the Division Office
as there were no records made available to the team.
The problem on inadequate resources provided to the District Supervisors,

if left unattended, would affect the availability of textbooks to students at a
greater scale.
Proper notification/information of the The team appreciates the Division’s

delivery schedules of textbooks within concern on the issues raised by the team
the prescribed period should be made and is looking forward to the
to enable both the school property implementation of the team’s
custodians and the suppliers recommendation.
concerned to prepare for the
deliveries.
The Dep-Ed should properly

coordinate and inform the School
District Offices regarding the delivery
schedule within the prescribed period.
The suppliers should be required to
deliver to schools the textbooks on the
scheduled dates of delivery so that the
students can use the basic textbooks
they urgently need.
20
Dep-Ed should make timely schedule

to avoid delay in delivery so as not to
deprive the students on the use of such
books. In as much as there are some
District Supervisor who were not fully
equipped to perform the functions of
receiving the deliveries of textbooks
and delivering the same to schools due
to lack of storage facilities, personnel
and equipment, this Division
requested School Principals to make
provisions for the storage of the
textbook delivered. Some textbooks
were taken by school property
custodian/property clerks and some
textbooks were delivered by this
Division to schools concerned.
RECOMMENDATIONS
The Division Office should consider:
1. Notifying/informing the School District Offices of the delivery

schedules within the prescribed period, so that appropriate
preparations could be made. The District Offices should also be
required to inform the Regional Office/IMCS when suppliers were
not able to deliver the textbooks within the delivery schedules
indicated in the notice so that appropriate actions can be taken.
2. Requiring the District Offices to inform the Regional/Central

Office of all problems encountered in the receipt and distribution
of textbooks, so that appropriate actions can be taken on a timely
manner.
21
Chapter 2
Risk Management Process
22
RISK MANAGEMENT PROCESS_
INTRODUCTION
Managing risk is an essential element of good management practice. The benefits

of effective risk management include improved transparency in decision-making,
effective and efficient allocation of resources, more creative and innovative
management practices, increased standards of service and the capacity to manage
in the face of increasing demand.
It is also important to note that, effective risk management encompasses the

acceptance of small mistakes, while encouraging managers to consider the
lessons that can be learned and how to avoid the same mistakes in the future.
In an environment characterized by increasing demand for high level satisfaction

with education services and limited resources, the application of sound risk
management practices by the officials aimed at protecting the interest of the
students, and ensuring that their needs particularly the textbook requirements are
effectively addressed, is vital. The key to such an approach is being proactive,
well informed and having an appropriate controlled environment in place.
Risk is defined as the chance of something happening that will have an impact
upon objectives. It is measured in terms of consequences or effects in the
attainment of the objectives and likelihood or certainty of its occurrence. Risks
should be identified at the earliest stage of the project. To be effective, the risk
management process needs to be rigorous and systematic. It demands that a plan
of action be developed, in relation to identified risks, that minimize the
likelihood and consequences of these occurring. As well, the plan needs to be
continuously monitored and reviewed because risks, not only change over time,
but their relative significance may also change, as may the mechanisms and
tools required to manage the risks efficiently and effectively.
The audit noted that, the Division Office and the City Government have not
adequately managed the risks in the implementation of SEMP I and SEF
resulting in a failure to achieve their objective.
23
RISK MANAGEMENT PROCESS
OBSERVATION
The Division Office and the City Government have not adequately
managed the risks in the implementation of SEMP I and SEF. As a
result, the textbook requirements were not met, the available textbooks
were not equitably distributed and books were not efficiently utilized.
Occasionally, actions were taken as the problems are encountered. The
major risks however, such as ensuring that the data on textbook
requirements are accurate and sound monitoring of the achievement of
the project objective are not managed. The failure to manage these risks
contributed in ineffective delivery of education services.
In order to ensure the smooth implementation of SEMP I and SEF, the Division
Office and the City Government should be able to identify and adequately
managed the risks in the implementation of the programs. The risks should be
identified at the start of the project and the intended treatment should be
established in order to avoid the occurrence of the risks and/or minimize its
effect on the program.
Evaluation of the documents gathered during the audit and interviews with the
officials and employees involved in the project however revealed that, the
Division Office and the City Government do not have structured processes to
manage the risks.
Upon the request of the team, the Division Office prepared a list of risks
encountered and the measures taken or to be taken as follows:
RISKS MEASURES
 Curriculum contents of some  Teachers and principals initiated

SEMP books do not jibe with write-ups/draw supplementary
2002 concern. instructional materials to reconcile
and adapt the textbooks to the 2002
Restructured Basic Education
Curriculum (RBEC).
24
 Surplus of textbooks deliveries  Principals reported excess textbooks

were observed in various schools, to Division Property Section.
grade levels, learning area in view Property Section reallocated excess
of SEF purchases. textbooks to other schools which
lacked textbooks. Review
requirements and audit SEMP and
SEF purchases.
 Textbook allocation for some  Old textbooks were utilized to offset

learning areas registered a 1:1 lack/late deliveries of textbooks in
ratio in Grade 1 but 1:2 or lower several learning areas or grades;
in other Grades. Deliveries did book sharing was encouraged.
not coincide with school
enrollment or start of classes.
 Book cases (cartons) were found  School principals/ property

to have defective textbooks or custodians informed publishers of
incomplete sets. defective and short deliveries for
replacement or additional textbooks.
 School Districts do not have  Respective school teacher-

personnel and storage facilities custodians acted as District
for SEMP textbook Custodian and principals shouldered
deliveries/acceptance/ inspection. the transportation expenses to
Deliveries from district to schools school.
entailed cost.
 Delivery dates not properly  District Supervisors coordinated

communicated to the Districts or with Division SEMP/Division
unannounced Property Section on delivery dates
The identified risks are mostly related to delivery problems and relevance of
the delivered books to the new curriculum. It is interesting to note that, even
with this awareness and the proposed treatment, the problems remained
unmanaged.
In view of the absence of the structured processes, they were not able to
detect a number of problems in the implementation of the program such as:
a. inaccurate data on textbook needs;

b. inequitable distribution of books;
25
c. inefficient utilization of textbooks in view of the adoption of

multiple textbook policy and the implementation of the new
curriculum;
c. ineffective monitoring/reporting system; and
d. incapability of the District Supervisors to handle the receipt and
distribution of books to school and report deliveries.
This resulted in the oversupply of books in some subjects and some schools
while other books in other subjects remain insufficient. The inequitable
distribution of books was also not corrected. This condition affects the
learning abilities and quality of education provided to students.
These problems can be managed by:
a. Establishing a clear policy/guidelines on the determination of textbook

requirements. The guidelines should include, among others, the factors to be
considered in arriving at the textbook requirement per grade level and
subject area, the office in charge of the same and the frequency of reporting
the data generated. The data should be kept up to date from time to time so
that the textbook condition could be established any time;
b. Issuing distribution procedures to ensure that the books are distributed only
to schools in need;
c. Promulgating specific guidelines in the management of textbooks

considering the adoption of a multiple textbook policy environment and the
implementation of the new curriculum. The guidelines should include the
proposed action to be taken in the presence of as many as four books in one
subject without any one book title attaining a 1:1 textbook pupil ratio, in
some cases, and the identification of the books most suitable to the new
curriculum. This was also not consistent with the current DepEd’s policy of
targeting standardization of learning by class and discouraging the mixing
of books not only on a national level but also on a class level;
d. Issuing guidelines in the proper reporting of the textbook condition

particularly the textbook pupil ratio per subject and grade level and the
frequency of submitting such reports;
e. Preparing the District Supervisors on the storage and distribution

functions and ensuring the availability of storage facilities and manpower
requirements to handle the tasks.
26
The real cause of the problem is the The risk of late delivery of textbooks could
delayed delivery of textbooks under have been identified and properly
SEMP. If the textbook requirements under managed if the Division Office developed a
SEMP were delivered on time, then the sound risk management processes at the
textbook requirements shall have been onset of program implementation. The
met. management of risks is an effective tool to
ensure that potential problems are
addressed or treated to avoid its occurrence
or at least minimize its impact on the
program objective.
RECOMMENDATIONS
1. As the program is already on going, preparing a Status Report of

the project indicating the actions to be taken to determine the
actual textbook condition and the reasons for not meeting the
objective of the textbook program including potential and actual
risks. The report should also include actions to be taken to identify
the remaining textbook needs in the presence of multiple textbooks
and the change in curriculum and to correct the inequitable
distribution of textbooks.
2. Establishing structured processes in managing risks before the

implementation of the next textbook program. At the onset, the
Division Office should identify the potential risks that would affect
the implementation of the program. These risks should be evaluated
in order to determine the possible impact in the achievement of the
objective.
27
3. Developing an appropriate treatment plan for identified risks and

identifying the office responsible in executing and the appropriate
time to carry on such treatment. The intended treatment should as
much as possible, avoid the occurrence of the risks and/or minimize
its impact in the attainment of the objectives. The process should
include consultations with those involved in the execution of the
program and dissemination of the plan to concerned officials and
employees.
28
Chapter 3
Appropriate
Manpower Resourcing
29
APPROPRIATE MANPOWER RESOURCING
INTRODUCTION
The success of any project also depends on available resources. Resources

include adequate, competent personnel with properly defined responsibilities and
specific deliverable outputs.
In the performance of their duties and functions, the personnel involved in the
implementation of the program should be guided by a well-designed work plan
of activities geared towards the attainment of the program’s objective. The
evaluation of accomplishment is also necessary to assess the performance of the
personnel and address their training needs and other problems that may affect
the attainment of the objective.
The audit disclosed that the Division Office does not have a well defined work
plan to guide them in the performance of their duties and was not monitoring the
performance of the personnel involved in the implementation of the program.
There was also no training program designed to improve their performance. As a
result, the Division Office was not able to detect the non-performance of key
controls to ensure the smooth implementation of the program.
The audit noted that the offices involved in the provision of textbooks are the
following:
Office Functions
Planning Section 1. Collects, collates and interprets data gathered from

the field;
2. Monitors the educational programs and projects
undertaken by the Division;
3. Determines the educational resource needs and makes
necessary recommendation;
4. Prepares Action Plans Annual Reports, statistical and
other reports required by the Mayor’s Office, DECS-
NCR and the Central Office for review and approval
of the District Superintendent;
5. Maintains and updates the Educational Management
Information System (EMIS) of the Division.
30
Property and 1. Takes charge of the procurement and acquisition of

Supply Section supplies, materials and equipment including:
* Property warehousing and distribution;

* Property accounting, inventory and disposal.
OBSERVATION
The Division Office does not have adequate work plan of activities to
guide them in the performance of their duties and was not evaluating
the performance of personnel assigned to the program. The inadequate
work plan may also lead to inadequate manpower resourcing. Further,
the performance of the personnel were not strengthened as there was no
training program designed to enhance their performance. As a result,
the non-performance of key controls to ensure the success of the
program was not detected demonstrating a breakdown in processes that
affect the ability of the program to achieve its objectives.
a) Inadequate work plan of activities
A work plan is a schedule of activities intended to be undertaken during a

particular period to achieve a specific objective. A well designed work plan
would guide both management and personnel in the performance of their
functions and ensure adequate resourcing is provided to complete all
necessary activities.
Records show that although the Planning Office has developed the Work
Plan for CY 2002, the activities included therein are limited to
school/academic activities and do not include administrative matters
particularly, the determination of textbook requirements, the monitoring of
the attainment of the DepEd objective on the provision of textbooks and the
validation of the reports submitted by the schools.
The work plan should also include the performance target, manpower
requirements and expected output of each unit to define accountabilities and
responsibilities. In this case, the inadequate work plan led to a breakdown in
controls and non-performance of essential administrative functions such as
31
monitoring the progress of the program to ensure on-going achievement of

outputs.
b) Non-evaluation of Performance of personnel
The monitoring of accomplishments is one way of assessing the

competencies of the personnel assigned to perform certain tasks and a tool in
enhancing the capabilities of personnel. It is also a means of monitoring the
progress of the program and identifying the problems encountered in the
process.
At the time of audit, the personnel of the Division Office were not required
to submit accomplishment reports regularly. They also failed to submit their
Performance Rating for the year 2001. Consequently, the performance of
personnel and their respective accomplishments were not assessed and their
failure to perform the monitoring function was not detected.
c) Absence of training program designed to enhance their performance
Training is one way of upgrading the personnel’s knowledge and improving

their performance. To enhance the performance of employees, the agency
should design a training program appropriate to meet their needs and
demands.
Analysis of available records show that the Division Office does not have
training program designed for its employees. Surveys conducted by the team
with the concerned personnel showed that they have attended the following
seminars/training during CYs 2001 and 2002.
Inclusive
Name Section Title of Seminar Dates
ESTRELLA G. MANSUR Planning * Preparation of Budget 03/26-28/01

(Chief, Planning Sec.) Proposal
* Teacher Deployment and
Utilization of Public
School Teacher
* Administration of
Diagnostic Test
01/10-11/02
Planning * DECS-NFE staff
32
* Adm. Of 2001 PEPT-
* DECS-NETRC Student 06/07/02
ARACELI LIWANAGAN Tracking System
(Sup. Educ. Prog. Spec.) * Teacher Deployment
and 03/22-23/01
Utilization of Public 07/31-08/02/01
School Teachers 11/13-15/01
Planning * Computer Literacy

01/10-11/02
EDGAR B. FABIAN Planning * Computer Education

(Statistician Aide) Jan. – Mar.
2002
AMELITA C. MANIPOL Supply * New Government
(Educ. Prog. Spec.) Accounting System Oct.’01-
Mar.’02
ELIZABETH MARTIN Supply * New Government
(Supply Officer) Accounting System
2002
CARMENCITA VITUG T. Sora * Basic Library Skills
(Storekeeper) E/S
2002
PEARL JOCELYN
VICTORIA, Prop. P. Tamo * Basic Library Skills 08/22-24/01
Custodian E/S
RAYMUND ALMEDA, Culiat E/S * BEC Seminar 08/22-24/01

Property Custodian * Basic Library Skills
REY BONDOC, Property GSIS E/S * Computer Seminar May 2001

Custodian
2001
RONALD FERNANDEZ, 2001
Property Custodian
As shown above, personnel involved in the program lacks proper training

relevant to the function of monitoring the textbook requirements and
distribution. This may lead to lack of understanding among personnel of the best
way to undertake their responsibilities leading to inefficient and ineffective
performance.
In view of the absence of a well-defined work plan to guide the personnel in the
performance of their duties and the failure of the Division Office to monitor the
performance of personnel, the non- performance of the key controls necessary to
ensure the achievement of their objective was not detected and addressed. The
inadequate work plan may also lead to inadequate resourcing of the function.
33
The Division Office had prepared a The team appreciates the initial steps
work plan of activities and is taken by management to implement the
undertaking performance evaluation. recommended measures to address the
In order to enhance the performance issue on the lack of a work plan,
of personnel and to keep them abreast performance evaluation, personnel
on this recent COA rulings, the training and in recognizing their
Division Office is sending them to the importance towards the attainment of
Seminar-Workshop on Property the objective.
Management and Accountability
being conducted by Dep-Ed NCR in The training should not only be
four batches in Jonel II Calamba limited to Division Office personnel but
Laguna. Five of the property should also include School Property
personnel already attended the Custodians. Training needs should be
Seminar on Property Custodian in assessed to determine the aspect of
1999 RELC. work that needs improvement. The
training should give emphasis on the
The actual textbook condition is being determination of textbook needs,
monitored by the Division Office to distribution and allocation of textbooks
meet the actual needs of the school. per subject and classroom and
The Division Office is using monitoring of textbook condition to
Textbooks Situation Analysis form. avoid overprocurement of books and
ensure that textbooks are utilized
efficiently. In that way, the textbook-
pupil ratio of 1:1 will be achieved.
RECOMMENDATIONS
1. Preparing an adequate Annual Work Plan to ensure the effective

delivery of outputs geared towards the achievement of the program
objective. The Work Plan should include activities such as
monitoring of textbook condition, validation of the accuracy of the
data submitted by the different schools and monitoring the effective
utilization of textbooks. The performance target, manpower
requirements and expected output of each unit should also be
included in the work plan.
34
2. Monitoring/evaluating the performance of personnel in order to

ensure that the tasks are accomplished as programmed and to
address problems that would affect the achievement of the objective.
3. Designing an appropriate training program that would enhance the

performance of personnel and would define their responsibilities.
35
Chapter 4
Performance Monitoring
36
PERFORMANCE MONITORING
INTRODUCTION
To measure performance of a particular program and the achievement of its

objective, an agency needs to monitor the operations and activities of that
program. Monitoring performance and controls enables the agency to gauge
progress against objective and effectively respond to problems.
Monitoring of performance should be undertaken on an on-going basis. The

scope and frequency of monitoring will depend upon the risks involved and the
scope and extent of the implementation of the program.
On going monitoring can be achieved through traditional management and

supervisory activities and by encouraging staff to identify breakdowns,
redundancies, duplications and gaps in control procedures.
Monitoring performance is closely linked to information and communication. It

provides answers and feedbacks on whether the program objectives are being
achieved efficiently and effectively. It also provides an on-going check on the
effectiveness of the control instructions.
The audit noted that the Division Office and the City Government were not
accurately monitoring the textbook condition such that they were not aware of
the needs to be addressed. As a result, they were procuring books no longer
necessary wasting limited and valuable government resources.
OBSERVATIONS
1. The reported figures for textbooks existing in schools as of

December 2001 were significantly increased or decreased as of June
2002 without any explanation raising concerns on the method of
calculation, accuracy and transparency in the process. The
inaccurate reporting of available books would greatly affect the
determination of textbooks needed to be procured.
37
The attainment of a particular objective will only be realized if it is being

monitored and accurately reported. The team however noted that, while the
Division reports the textbook-pupil ratio, the accuracy of such reports could
not be confirmed as the method of calculation and source data were not
provided to the team.
Moreover, comparison of the reported textbooks existing as of December

2001 and June 2002 showed great disparity without any explanation raising
concerns on the method of calculation, accuracy and transparency of the
process. In the case of Grade IV, the available books in some subjects
reported in December 2001 either significantly increased or decreased as of
June 2002 without any explanation as illustrated below:
Available books as of Delivery Increase

Subject Dec. 2001 June 2002 January-June (Decrease) %age
English
Language 9223 33870 30000 (5353) 58
Reading 8065 34145 30000 (3920) 48
Filipino
Wika 10387 41070 30000 683 6
Pagbasa 10494 44103 30000 (3609) 34
Math 8038 38439 - 30,401 378
Science 12362 37449 30000 (4913) 39
Sibika 3878 35795 30000 1917 49
As illustrated above, after considering the deliveries during the period

January to June 2002, the increase or decrease in figures ranged from 6% to
378%. There were no reported delivery of books for Math 4 during this
period and yet, the inventory increased by 30,401 copies. On the other hand,
there were reported deliveries of 30,000 copies of books for all other
subjects.
The inaccurate report on available textbooks would greatly affect the

determination of textbooks needed to be procured and may lead to over or
underprocurement of textbooks.
2. As derived from the Inventory Report of the Division Office as

of June 2002 submitted to the Regional Office, the Office had
attained textbook pupil ratio of 1:0.88 to 1:0.97 in six (6) subjects
for Grades I to IV while the other 14 subjects have ratios ranging
from 1:1.002 to 1:27.19. The ratios represent excess textbooks of
38
1,212 to 5,571 or a total of 25,785 and shortages ranging from 91 to

37,824 books or a total of 179,643. This affected the attainment of
the government’s objective of improving the quality of education
provided to students by providing sufficient books in all subjects and
wasted limited resources. This excess will further be increased to
163,815 due to the forthcoming deliveries of books allocated to the
Division Office under SEMP I 2000 Reorder.
The Division Office submitted a Textbook Inventory Report as of June 2002

to the NCR. The report, which was prepared by the Property Section,
indicates the available textbooks as of this date per subject area and grade
level, the actual enrolment and the present needs of the Division. The team
however noted that, the enrolment figures per grade level indicated in the
report are different from the data obtained by the team from the Planning
Section.
In order to reflect the present textbook condition, the team considered the
actual enrollment for school year 2002-2003 as of July 2002 as supplied by
the Planning Section and compared the same with the existing inventory in
five priority subjects for Grades I to IV as reflected in the Textbook
Inventory Report.
Comparison of the two data revealed that, in six (6) subjects, available
books exceed the requirements by 1,212 to 5,571 representing 1:0.88 to
1:0.97 textbook pupil ratio, while others are still short by 91 to 37,824
equivalent to 1:1.002 to 1:27.19 textbook pupil ratio. The ratios derived by
the team follow:
Reported
Enrollment Existing Textbook
Grade Subject SY2002-03 Inventory Pupil Ratio Excess Short
I English 48932 41465 1:1.18 7467

Science and Health 54503 1:0.90 5571
Mathematics 47480 1:1.03 1452
Filipino 22227 1:2.20 26705
Civic and Culture 48841 1:1.002 91
II English 41418 32810 1:1.26 8608
Mathematics 39340 1:1.05 2078
Filipino 27410 1:1.51 14008
39
III English-Language 39268 1444 1:27.19 37824

- Reading 1652 1:23.77 37616
Mathematics 43697 1:0.90 4429
Filipino – Wika 34344 1:1.14 4924
- Pagbasa 30067 1:1.31 9201
IV English-Language 38999 33870 1:1.15 5129
- Reading 34145 1:1.14 4854
Mathematics 38439 1:1.01 560
Filipino – Wika 41070 1:0.95 2071
- Pagbasa 44103 1:0.88 5104
TOTAL 25785 179643
The excess will be further increased to 163,815 due to the forthcoming

deliveries of the following books allocated to the Division Office under
SEMP I 2000 Reorder which has already been contracted by the DepEd.
Excess/ Forthcoming Total

Book Title (Short) Delivery Excess
Science and Health I 5,571 40,344 45,915

Science and Health 2 4,699 36,239 40,938
Landas sa Wika at Pagbasa 2 (14,008) 20,539 6,531
Civic and Culture 2 1,212 - 1,212
Math for Everyday Use 3 4,429 33,341 37,770
Civic and Culture 3 2,699 - 2,699
Science and Health 4 (1,550) 6,570 5,020
Hiyas sa Wika 4 2,071 6,634 8,705
Hiyas sa Pagbasa 4 5,104 5,643 10,747
Pilipino Ako, Pilipinas ang Bayan Ko 4 3,204 7,482 4,278
TOTAL 163,815
The textbooks in Science for Grades I and 2 were not issued to students as
the Property Custodian claimed that, this subject was already integrated into
English under the New Curriculum. This demonstrates the inefficient
utilization of resources and defeats the purpose of providing books which is
to enhance the students learning abilities.
The failure of the Division Office to monitor in a timely manner the existing
textbook condition affected the attainment of the government’s objective of
improving the quality of education provided to students by giving sufficient
books in all subjects and grade levels. At the same time, the oversupply of
40
books in some subjects while books in other subjects remain insufficient,

resulted in wasted government resources.
3. Distribution of books to schools was not equitable. At the time of

audit, 2 schools visited by the team have insufficient books in 3
subjects when the Division Office has excessive supply of books for
these subjects. This is due to the allocation of books in some schools
in excess of their needs. On the other hand, while books in some
subjects were not yet sufficient to address the entire needs of the
Division Office, some schools have undistributed books in these
subjects. The inequitable distribution rendered some books useless in
some schools while these books could have guided the students in
other schools in their learning exercises.
The optimum benefits to be derived from textbooks could only be realized if

the books are efficiently utilized. Efficient utilization would mean timely
allocation of books to students who need this educational resource and not
merely procurement of books. For this reason, the Division Office should
ensure that textbooks already available are distributed where they are most
needed.
Review of the inventory reports of different schools however showed that,

distribution of books was not equitable. In 6 subjects, where books are
already in excess of the total textbook requirements of the entire Division,
there are still schools with insufficient books as other schools were given
more than their needs. In the 2 schools visited by the team, the shortage
ranged from 9 to 120 books:
Qty. of Book- Total

Enroll- Available Pupil Excess
School Ment Grade Subject Textbook Ratio Shortage Supply
New 479 II Sibika 454 1:1.06 25 1212

Era 535 III Math 421 1:1.27 114 4429
Sibika 415 1:1.29 120 2699
T.Sora 556 II Science 488 1:1.14 68 4699
523 III Math 516 1:1.01 9 4429
Sibika 484 1:1.08 41 2699
41
On the other hand, review of the distribution records of the School Custodians
also showed that there were undistributed books in their custody for subjects
that have not yet attained the 1:1 textbook pupil ratio.
School/
District Book Subject Qty Shortage
GSIS Math for Everyday Use I Math 606 1452
Math for Everyday Use II Math 270 2078
GSIS Landas sa Wika at Pagbasa II Filipino 425

T. Sora Landas sa Wika at Pagbasa II Filipino 350
Culiat Landas sa Wika at Pagbasa II Filipino 750
1525 14008
The inequitable distribution of books renders some books useless when these
books could have guided the students of other schools within the Division
in their learning exercises.
4. The increased number of titles of textbooks per subject increases the

risks of the District Office and schools in managing the utilization
of books and achieving the program’s objective of a 1:1 textbook
pupil ratio. Moreover, there were no guidelines and processes
established to manage the presence of multiple books per subject. As
a result, there are schools with as many as four books in one subject
but have no or insufficient books in other subjects.
Prior to 1996, the textbook requirements of public schools was being

addressed by the Instructional Materials Development Center. During that
time, only one textbook was approved per subject per grade to be used
throughout the country.
On July 1994, Republic Act No. 8047 was passed providing for the
development of the book publishing industry. The Act was promulgated to
provide for the continuing development of the book publishing industry with
the active participation of the private sector. It also provides that, the DepEd
shall, within a period of not more than three years from the effectivity of the
Act, phase out its textbook publication and distribution functions and support
the phasing in of private publishers to assume these functions. Under this
42
Act, the DepEd adopted a multiple textbook policy environment wherein

more than one textbook was approved per subject per grade level.
As of May 19, 2000, some 458 books have been approved by the DepEd as
prescribed textbooks for elementary schools consisting of 1 to 18 textbooks
per subject area and grade level. This policy created a situation where the
Division Offices have as many textbooks as possible per subject. This
prompted the DepEd to issue a Memorandum on May 16, 2001 directing all
regional/division/district school officials to ensure that the same textbook
titles are used within a given class for each subject when these textbooks are
available. There should be no instance where any class would use more than
1 textbook title in any particular subject. The same school may however,
allow 1 class to use title A while another will use title B in a specific subject
and grade level.
Evaluation of distribution records to teachers in selected schools showed

that this instructions was not observed. Books for a particular subject with
different titles were retained by the schools and were all distributed to
teacher in charge of one section leading to a situation where a student could
have as many as four books in one subject while the same student has no
books in other subjects.
Grade/ No. of No. of

School Sec. Subject Books Issued Books Pupil Remarks
Pasong I-1 Science Into the Future 50 66 While majority of the

Tamo Moving Onward 45 students have as many
Science for Everyone 43 as 4 books in Science,
Science and Health 49 not one book would be
Total 187 the same for all students.
Sibika Sibika I 50 These students also do
English - not have books in all
Math - other subjects.
Filipino (500 books allocated -
to school not yet
distributed)
The absence of books in some subjects and the use of different books in one
subject within the same class would affect the ability of the students to learn.
The team also noted that while there was an instruction to use only one book
title, there were no guidelines and processes established to implement this
instructions. The Memorandum did not also require the Division/District
Offices to swap or return books of different titles to other schools or
43
Divisions who may have preference for such titles after they have selected a
particular title.
5. Textbooks in 5 subjects already in excess of the textbook

requirements as of June 2002 were still programmed to be procured
under the 2002 Annual Procurement Program of the Division Office
in amounts ranging from 40.87% to 50.93% of the total enrollment
for SY 2002-2003.
As of June 2002, the inventory report of the Division Office of Quezon City
showed that there were about six (6) subjects for Grades I to IV with
textbooks exceeding textbook requirements. Review of the 2002 Annual
Procurement Program for MOOE however, show that books for four of
these subjects were still programmed to be procured within the year from
the MOOE in amounts representing 40.87% to 50.93% of the total
enrollment for SY 2002-2003.
Reported To be
Enrollment Existing Procured %age
Grade Subject SY 2002-03 Inventory Excess MOOE Enrollment
I Science 48932 54503 5571 20000 40.87

II Science 41418 46117 4699 18000 43.46
III Math 39268 43697 4429 20000 50.93
Social Studies 39268 41967 2699 17000 43.29
IV Fil.-Pagbasa 38999 44103 5104 18500 47.44
The team also observed that some schools are no longer using their textbooks
in Science for Grades 1 and 2 as the School Property Custodian claim that
Science is integrated into English under the New Curriculum implemented
this SY 2002-2003. Yet, substantial quantity are still intended to be procured
for these subjects out of the Division’s MOOE. As of September 30, 2002,
however, there was no recorded procurement for these textbooks.
Management ‘s Comments Team’s Rejoinder
The Division Office has been The team appreciates management’s

monitoring and reporting the actual action to include the textbook condition
textbook condition. The information on in the Annual Accomplishment Report.
whether or not the 1:1 textbook pupil They should however, take actions to
ratio per subject area and grade level ensure that the textbook condition
44
had been attained, will be included in reported is accurate.

the Annual Accomplishment Report, as
recommended.
Textbooks requirements under SEMP The Division Office should properly

1999 to 2002 did not arrive on time. inform the Regional Office/IMCS of
Instead, textbooks for SEMP 1999 were the intended and actual procurement of
delivered only last year 2001 and books for consideration by the IMCS
textbook for SEMP 2000 were in their procurement plans. As soon as
delivered only last year 2002, their needs were addressed from other
especially textbooks of Grades I to III. sources, they should submit to the
Since textbooks needed for the year Regional Office/IMCS their revised
1999 and 2000 were delayed and did textbook needs in order to avoid the
not arrive on time, the City government occurrence of oversupply of books.
in order not experience the shortage of
textbooks, was obliged to allocate
funds and purchased books last SEF
1999 and 2000.
So with the arrival of textbooks under The management’s initial action on

SEMP 1999 only last year 2001 and redistributing books is commendable.
SEMP 2000 only this year 2002, there In order to avoid inequitable
was an excess of textbooks especially distribution, the Division Office should
for Grades I to III. consider the actual textbook needs of
schools within its jurisdiction.
During the time of audit some
textbooks under SEMP 2000 which are
in excess from the Districts, are being
pulled out by the Division Office for
the distribution to other schools, that
are in need of textbooks.
The Division Office will follow-up the There is nothing wrong with allocating
District Office or Property Custodian funds from MOOE and SEF for the
for immediate distribution of books. procurement of books. However, the
books to be purchased should pertain to
Regarding the policy of multiple subjects that have not yet attained the
adoption per subject the Division 1:1 textbook condition and that
Office will bring this matter to the procurement should be properly
attention of the Dep-Ed NCR. coordinated with each other.
Delivery of textbooks under SEMP was

always delayed by two years. To avoid
the shortage of textbooks caused by the
delayed delivery under SEMP, the
45
Division Office allocated a certain

amount under the Annual Procurement
Program.
RECOMMENDATIONS
1. Monitoring and accurately reporting the actual textbook condition.

The Annual Accomplishment Report should include accurate
information on the achievement of 1:1 textbook pupil ratio per
subject area and grade level;
2. The existing textbook condition before any procurement of books is

undertaken by considering the textbook inventory as of June 2002,
expected deliveries from the IMCS and intended procurement from
SEF. The Division Office should also maintain an updated records
per school indicating the enrollment and available textbooks per
subject and grade level;
3. The existing textbook condition maintained above in distributing

books acquired from all sources. Meanwhile, redistribute the excess
books already identified to schools in need of these books;
4. Establishing guidelines on the distribution of books that would

ensure each school has the same book title for every subject. Make
representation to the Regional Office/IMCS on the difficulty of
managing multiple textbook policy;
5. Reviewing the Annual Procurement Program to ensure that only

actual needs are included in the program.
46
Chapter 5
Effective Relationship/Coordination of
Government Offices
47
EFFECTIVE RELATIONSHIP/COORDINATION OF
GOVERNMENT OFFICES
INTRODUCTION
The provision of textbooks to students and determination of textbook

requirements are concern not only of the IMCS but of the different offices from
the national level down to the school level. The roles and functions of each
office are enumerated under Republic Act 9155, where the principle of shared
governance was recognized. Every unit in the education bureaucracy has a
particular role, task and responsibility inherent to the office and for which it is
principally accountable for outcomes. It also emphasizes the importance of
democratic consultation in the decision making process at appropriate levels.
In addition to the offices enumerated under RA 9155, the DepEd, through

various issuances, created offices and committees for the implementation of
SEMP I.
The delivery of the education program is also a responsibility of the LGUs.

Therefore to ensure coordinated approach on the education program and
achievement of the program’s objective, the relationship within the DepEd
Offices and between the DepEd and the LGUs should be enhanced.
The audit noted that, the lack of coordination among the agencies involved in the
program and the lack of guidelines to dictate the communication working
protocol resulted in a situation whereby all agencies were addressing the same
textbook needs of schools. These led to a breakdown in the overall funding
objective of the government which had been designed to maximize school
textbook purchases through tripartite involvement and ensure accessible and
equitable education services to school children.
OBSERVATION
The textbook procurement plan of the Division Office and the City
Government, designed to augment the allocation from IMCS, are not
coordinated to IMCS. There were even no guidelines established to
provide a clear direction to all concerned parties on their roles and
responsibilities. As a result, the IMCS is allocating scarce resources to
48
EFFECTIVE RELATIONSHIP/COORDINATION OF GOVERNMENT OFFICES
the needs already being addressed by the Division Office and the City
Government contributing to the failure to achieve their objective.
To augment the allocation of books from the IMCS, the Division Office also
procure books from the MOOE and the City Government out of the SEF. For
this purpose, the Division Office prepares two Annual Procurement Plans
(APPs), one for each funds.
Both APPs clearly indicate the particular book for subject and grade level
intended to be procured. Results of interviews revealed that the determination of
the total quantity to be programmed were based on enrollment and available
books. This could however, not be documented as there were no records or
reports submitted to the team.
There were also no guidelines presented to determine the needs to be considered

by the Division Office and the City Government over and above the needs being
addressed by the IMCS. The team could therefore not assess whether the APP
considers the proposed allocation by the IMCS to the Division Office. The APP
chargeable against the Division’s MOOE was submitted to NCR for approval by
the Regional Director while the City Government approved the APP chargeable
against the SEF.
As programmed, the Division Office and the City Government implement their
respective plans and continue with the procurement and distribution of textbooks
to the different schools without informing the Regional Office or the IMCS. The
IMCS, on the other hand, proceeded with its own procurement and distribution
schedules.
The audit noted that in view of the lack of coordination among the three offices,
they were addressing the same needs simultaneously as illustrated below:
P R O C U R E M E N T
---------------------------------------------------------------------------------------------------------------------
IMCS CITY DIVISION OFFICE
Delivery Excess/
Grade Subject Qty. Date Qty. Date Qty. Date Total (Short)
I Into the Future 3900 No data 3900

Science and For 7732 06-08-00
Health 40344 delivery 4281 08-02-00 52357
Moving Onward 6232
with Sc. & Health 6232 03-16-01
49
Science for
Everyone 8000 04-11-00 8000
Sub-total 44244 14232 12013 70489 21557
II Sc. & Health 3450 No data 39689

36239 For
delivery
Moving Onward 6231 03-16-01 14231
with Sc. & Health 8000 04-11-01
Sub-total
39689 14231 53920
III Science 4150 11-07-00 4150

Science for 26688 09-10-02 6500 04-11-00 6577 07-10-02 39765
Everyone
30838 6500 6577 43915 4647

Sub-total
Keeping up with 6515 05-19-00

Math 6515 08-02-00
Math for 6515 10-13-00 19545
Everyday Life 4250
Math for 33341 No Data 4250
Everyday Use For 6000 01-31-01 39341
delivery
Sub-total
37591 6000 19545 63136 23868
Sibika 3250 No Data 8730 03-16-01

13253 04-26-00
4426 12-27-00
5000 01-25-01
34659
Sub-total 3250 31409 34659 (4609)
IV Diwang
Makabansa-Wika 5150 5150
Hiyas sa Wika 4150 No data 40784
30000 05-22-02
6634 For
delivery
Sining sa Wika 5000 01-25-01
6430 12-10-01
1465 2001 12895
Sub-total 40784 18045 58829 19830
Hiyas sa Pagbasa 4150 No data 1617 2001

30000 05-22-02 7097 12-10-01
5643 For 5000 01-25-01
delivery
Sub-total
39793 13714 53507 14508
50
The Division Office however, failed to inform the IMCS that they were
purchasing the same textbooks to be supplied by the IMCS out of the MOOE
and SEF.
The absence of coordination between the City Government and the DepEd
and among the offices within the DepEd resulted in excessive procurement of
books in some subjects wasting valuable and limited resources while books in
other subjects are insufficient. It also demonstrate a breakdown on the
government’s strategy to supplement the budget of the DepEd thru SEMP I
with SEF to attain the government’s objective and target.
The strategy would only work if there is a system in place that would ensure
that the procurement is timely and responsive, well coordinated, will address
the priority needs and would prevent duplication of actions on a particular
need to avoid overprocurement and wastage of government’s limited
resources.
Procurement Plan for textbooks to be The shortcomings of another office

charged against the funds of the involved in the program should not be
Division and the Special Education used as an excuse for any deficiencies
Funds of the City Government of committed by an agency. It should be
Quezon to augment the allocation from stressed that each office/agency has its
IMCS was coordinated at the National own responsibility and accountability to
Level. However, the problem lies in the ensure that government resources are
delay of delivery of books by SEMP utilized efficiently and effectively. In
for two (2) years. As a result, there this case, had there been proper
were excess books in some subjects coordination between and among the
while books on other subjects are still Dep-Ed Main Office, Division Office,
inadequate. and the City Government and the
guidelines established to that effect, the
oversupply of textbooks in some
subjects could have been avoided.
51
RECOMMENDATIONS
1. Informing the IMCS, the Regional Office and the City Government
regularly of the textbook condition clearly indicating the subjects
and grade level that have already attained the 1:1 textbook pupil
ratio and the excess quantity of books per subject and grade level for
possible redistribution to other Divisions;
2. Informing the IMCS on the textbook procurement plan of the

Division Office and the City Government;
3. Advising the IMCS on the specific textbook needs that could not be
addressed by the Division Office and the City Government.
52
Submitted in compliance with COA Assignment Order No. 2002-
023 dated July 18, 2002.
MILA M. LOPEZ
Team Member
LINA R. MACARAIG
Co-Team Leader
NORMITA N. NARVAEZ
Team Leader
Reviewed by:
SUSAN P. GARCIA
Team Supervisor
Approved by:
ILUMINADA M.V. FABROA

Director IV
53

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Management Services

Report No. 2002-01B

The School Division Superintendent

The audit covered the implementation of textbook program of the

The audit focused on the identification of needs for additional textbooks

a. Established Policies and Guidelines

We look forward to the proper implementation of the recommendations

Very truly yours,

By Authority of the Chairman:

ILUMINADA M.V. FABROA

Part I Executive Summary 1

Part II Audit Observations and Conclusions 8

Chapter 1 Policies and Guidelines 9

Receipts and Distribution of Available

Chapter 2 Risk Management Process 22

Chapter 4 Performance Monitoring 36

Chapter 5 Effective Relationship/Coordination of

The adequacy of textbooks largely relating to quantity access has been a

The access of students to textbooks has an impact both on the effectiveness of

however acquired at a lower cost of P30 to P40 resulting in procurement of

As of August 2002, 42,213,558 books for elementary and secondary students

In addition to the loan secured to finance SEMP I, the Division Offices,

In order to further ensure the delivery of education services, the Special

AUDIT SCOPE AND METHODOLOGY

a. Established Policies and Guidelines;

a. Reviewed existing policies and guidelines on the determination of

The audit concluded that the shortcomings in the implementation of SEMP I

a. Inadequate guidelines in the determination of textbooks requirements,

MANAGEMENT’S REACTION TO AUDIT OBSERVATIONS

Policies and Guidelines

DETERMINATION OF TEXTBOOK REQUIREMENTS

a. DECS Order No. 31 dated May 12, 2000

b. DECS Memo. No. 87 s. 2001 dated March 12, 2001

Guidelines on the use of CY 2001 Regional appropriations

c. Memorandum dated May 16, 2001 of Usec. Ramon C. Bacani

Division Offices to report the textbooks needed and

The procurement of books within the Division is a shared responsibility of the

b. At present, elementary books are being procured by the IMCS chargeable

c. The reports were required to be submitted by the Regional Offices within

d. Under the DepEd guidelines, the following factors should be

DECS Order No. 31 05-31-00 1. Projected SY 2001 enrollment;

DECS Order No. 87 03-30-01 1. Textbook requirements for five priority

1. The office responsible for preparing the textbook requirement report;

 the source data of the Division Office and the schools;

 the basis of the estimate;

3. The list of Divisions with textbook allocations from other sources;

NEEDED TEXTBOOKS (5 Priority Subjects)

I 57,713 62,694 52,596

calculating needs do not have a common basis. This inconsistencies led to a

NEEDS AS OF DIFFERENCE ACTUAL DELIVERY

May 2000 Feb. 2001 May 2000 Feb. 2001

English-L 23624 29259 No break- (5635) 4150

Total 163704 178404 89281 14700 (89123) 30000 13700

Management’s Comments Team’s Rejoinder

There should be immediate delivery of The team appreciates the management’s

In order that appropriate preparations

The Division Office is coordinating with

In the absence of any guidelines prepared by the Central Office, the

a. The office responsible in preparing the reports and in

RECEIPTS and DISTRIBUTION OF AVAILABLE BOOKS

1. The School District Offices were not notified/informed of the

As provided in the distribution guidelines, the Regional Offices should

As gathered from the interviews with the District Supervisor of District