Republic of the Philippines

COMMISSION ON AUDIT
National Government Sector
Cluster 5 – Education and Employment
Audit Group A, Team R2-12
Department of Education
Division of Cagayan
Tuguegarao City
ND No: 2020-003-101(2018)
Date : February 7, 2020

NOTICE OF DISALLOWANCE (ND)

FOR : MR. ORLANDO E. MANUEL, CESO V

Schools Division Superintendent
Department of Education
Division of Cagayan
Tuguegarao City

Attention: Engr. Armando C. Soriano Jr.

Engineer III

We have audited the payment for the repair/rehabilitation of school buildings

damaged by typhoon Lawin – Lot 34 in the amount of ₱3,020,609.30, covered by the
following reference documents and particulars:

DV No. ADA No. Date Amount Payee Remarks

MIG Aggregates and
2018-01-191 9900002131 1-Feb-18 ₱445,338.00 Mobilization
Concrete Products
MIG Aggregates and
2018-04-3012 9900002340 19-Apr-18 1,008,318.80 Partial payment
Concrete Products
MIG Aggregates and
2018-04-3753 9900002357 2-May-18 276,881.06 Partial payment
Concrete Products
MIG Aggregates and
2018-05-4025 9900002395 29-May-18 515,643.21 Partial payment
Concrete Products
MIG Aggregates and
2018-06-4969 9900002418 13-Jun-18 147,165.42 Partial payment
Concrete Products
MIG Aggregates and
2018-07-6437 9900002477 26-Jul-18 93,124.01 Final payment
Concrete Products
MIG Aggregates and Partial payment –
2018-06-4970 9900002148 13-Jun-18 202,178.12
Concrete Products Extra Work
MIG Aggregates and Final payment –
2018-07-6435 990002477 26-Jul-18 9,762.34
Concrete Products Extra Work
MIG Aggregates and
2018-07-6456 9900002477 26-Jul-18 322,198.34 Retention fee
Concrete Products
TOTAL 0

The amount of ₱55,724.17 was disallowed in audit because the inspection and
evaluation conducted on the above cited repair/rehabilitation of school buildings damaged by
Typhoon Lawin which was implemented by the Department of Education Division of
Cagayan and contracted by MIG Aggregates and Concrete Products disclosed the following
findings/observations and deficiencies which resulted in the loss or wastage of government
funds:

Location Observations and Deficiencies Amount

Building 3 – 1CL PTA Building (4m x 8m):
The programmed Roofing Works was not undertaken by the
contractor amounting ₱ 26,305.95
to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Instead, Ceiling Works was undertaken in another 1CL
building attached to the project but no Variation Order
Sisim ES issued to support this claim, hence, could not be considered.

Building 5 – 2CL BOD Building (7m x 8m):

All the works stipulated in the program were undertaken
except for the programmed blackboard, hence a deficiency
amounting to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,008.77
Sub-total ₱ 33,314.72
Inspection disclosed that under Roofing Works, Trusses and
Members were made of steel and as per interview, this is the
original trusses of the building. As per certification by the
OIC, Mr. James C. Taguinod, Head Teacher III, which was
Quibal ES not present during the inspection, only ¼ (approximately) of
the purlins was replaced. Since Variation Order was not
issued to support the claim, the programmed Carpentry
Works-Trusses and Members becomes a deficiency ₱ 15,038.45
amounting to . . . . . . . . . .
Sub-total ₱ 15,038.45
Building 18 – 1CL SEDP Building (7m x 12m):
The programmed “Refurbishment of Windows” was not
Peñablanca
implemented considering that the same has no windows but ₱ 7,371.00
NHS
steel grills which is already part of the building before the
typhoon (Lawin). Hence a deficiency amounting to . . . . . . .
Sub-total ₱ 7,371.00
Grand Total ₱55,724.17

The following persons have been determined to be liable for the transactions:

Nature of Participation in the

Name Position/Designation
Transaction
Signed the Certificate of Completion that
the above infrastructure project is
Head of Procuring satisfactorily complete in accordance with
Leila P. Areola, CESO VI
Entity the Program of Works, plans and
specifications.

Romel L. Libang Chief, School Signed the Certificate of Completion that

Governance and the above infrastructure project is
Operations Divisions satisfactorily complete in accordance with
(SGOD) the Program of Works, plans and
 Nature of Participation in the
Name Position/Designation
Transaction
specifications.

Signed the Punchlist of Corrective

Armando C. Soriano Jr. Division Engr. III
Works /Inspection Report on the “Jointly
Inspected by” portion of the report and
Certificate of Completion that the above
infrastructure project has been
satisfactorily complete in accordance with
the approved Program of Works, plans
and specifications.

Signed the Certificate of Completion that

the above infrastructure project is
EFD (CO) satisfactorily complete in accordance with
Jason Almoite
Representative the Program of Works, plans and
specifications.

Signed the Punchlist of Corrective

Works /Inspection Report on the “Jointly
Noel A. Macasaddug Project Engineer
Inspected by” portion of the report.

Signed the Punchlist of Corrective

Works /Inspection Report on the “Jointly
Elison John B. Ramos Project Engineer
Inspected by” portion of the report.

Signed the Punchlist of Corrective

Member, Inspectorate Works /Inspection Report on the “Jointly
Jeffrey M. Zinampan
Team Inspected by” portion of the report.

Signed the Certificate of Turn- Over that

she accepts the turn-over of the repair
Head Teacher made at Sisim ES buiding that has been
Jessilyn B. Peralta
Sisim ES certified as completed as shown in the
Certificate of Completion.

Signed the Certificate of Turn- Over that

he accepts the turn-over of the repair
Principal/School Head made at Quibal ES building that has been
James C. Taguinod
Quibal ES certified as completed as shwn in the
Certificate of Completion.

Signed the Certificate of Turn- Over that

she accepts the turn-over of the repair
Principal/School Head made at Peñablanca NHS building that
Joycelle T. Macarilay
Peñablanca NHS has been certified as completed as shown
in the Certificate of Completion.

B.A. Lagazo Builders Contractor For receiving the payment

 Please direct the aforementioned persons liable to settle immediately the said
disallowance. Audit disallowances not appealed within six (6) months from receipt hereof
shall become final and executory as prescribed under Sections 48 and 51 of P.D. 1445.

AIDA E. BACCAY
Audit Team Leader

RITA R. PABLO
OIC-Regional Supervising Auditor

PROOF OF SERVICE OF COPIES OF ND TO PERSONS LIABLE:

Received by
Name of Person Liable Position/Designation Date
(Pls. Print and Sign)
Head of Procuring
Leila P. Areola, CESO VI
Entity
Romel L. Libang Chief, SGOD
Armando C. Soriano Jr. Division Engr. III
EFD (CO)
Jason Almoite
Representative
Noel A. Macasaddug Project Engineer
Elison John B. Ramos Project Engineer
Member, Inspectorate
Jeffrey M. Zinampan
Team
Head Teacher
Jessilyn B. Peralta
Sisim ES
Principal/School Head
James C. Taguinod
Quibal ES
Principal/School Head
Joycelle T. Macarilay
Peñablanaca NHS
B.A. Lagazo Builders Contractor