NAME OF AGENCY

AUDIT PROGRAM
FOR THE PERIOD ________________

AWARDS AND INDEMNITIES REWARDS

( Account Code 779 )

Account Description: The account Awards and Indemnities is used to record

indemnities for destruction of property, death or injury to persons, awards by
courts or by administrative bodies. Examples are indemnities for persons injured
or killed or property destroyed through military action, indemnities for property
taken by the government through civil action, awards and compensation provided
by laws.

The account Rewards and Other Claims is used to record payment of rewards for
any informer or for any act done in connection with the apprehension of an
offender. This also includes indemnities paid to persons in the government service
who become disabled on account of sickness, injuries, or death which occurred or
which were contacted or sustained in the performance of official duty.

Audit Objectives:

1. To ascertain the accuracy/completeness and correctness of the account

balances as recorded in the books.

2. To ascertain that the expenses incurred are valid, properly authorized,

documented and actually incurred.

3. To determine whether the recorded accounts are properly classified and

presented in the FS and disclosures are adequate.

Assertions: Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality or

Regularity ( VR ), Rights and Obligations ( RO ), Valuation and Measurement
(VM), Presentation and Disclosure ( PD )
ASSERTIONFS

TIME
AUDIT FRAME
TO
WP
PROCEDURES Ref
BE
DONE REMARKS
BY DATE DATE
STARTED COMPLETED

1.1 Trace the account balances in the trial C

balance/FS to the General Ledger EO
(GL).
 ASSERTIONFS
TIME
AUDIT FRAME
TO
WP
PROCEDURES Ref
BE
DONE REMARKS
BY DATE DATE
STARTED COMPLETED

1.2 Reconcile postings in the GL with the C

monthly totals of the Check RO
Disbursements Journal (CDJ).

1.3 Prove the accuracy of footings of the C

GL.

1.4 Check the accuracy of the footings of C

the CDJ and Report of Check
Issued (RCI).

2.1 Secure samples of Disbursement C

Vouchers (DV) in accordance with EO
the approved sampling plan. VR
Examine the nature of expense to
ensure it was incurred in connection
with indemnities for destruction of
property, death or injury to persons,
awards by courts or by
administrative bodies and payments
of rewards for any informer or for
any act done in connection with the
apprehension of an offender.

2.2 Check whether the vouchers were EO

approved by the proper authorities. VR
 ASSERTIONFS
TIME
AUDIT FRAME
TO
WP
PROCEDURES Ref
BE
DONE REMARKS
BY DATE DATE
STARTED COMPLETED

2.3 Examine the authenticity and C

regularity of supporting documents EO
and check whether they contain the VR
following information:

 In case of property claim (ex.

Road right-of-way claims),
Deed of Absolute Sale or
Conveyance executed by the
party and the LGU concerned in
proper form duly registered
with the Register of Deeds.

 In case of injury or death to

person, certificate of death or
physical examination.

 Indemnity Bond in case the

property is unregistered or
untitled.

 Deed of Conveyance or
Agreement to Demolish or
remove improvement executed
in proper form.

 Sanggunian resolution on the

grant, when necessary.

 Acknowledgement Receipt of
grantees/ donees

2.4 Check whether the purchase or VR

acquisition cost is computed in
accordance with existing
regulations. Seek the assistance of
TSO personnel whenever possible.
 ASSERTIONFS
TIME
AUDIT FRAME
TO
WP
PROCEDURES Ref
BE
DONE REMARKS
BY DATE DATE
STARTED COMPLETED

2.5 In the case of NGA’s and LGUs, VR

review the related Obligations Slips
(OS). Trace OS to the Registry of
Appropriations, Allotment and
Obligations – Maintenance and
Other Operating Expenses
(RAAMO).

2.6 Check the validity of the amount C

charged and review computation. VM

2.7 Compare statement presentation with VM

GAAP and NGAS. PD

2.8 Determine that the account is

properly classified and presented as PD
operating expense under MOE in
the FS.

3.1 Take note of deficiencies, if any.

Prepare and issue AOM.

PREPARED BY : REVIEWED BY : APPROVED BY :

Date Date Date