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DE LOS SANTOS, FEBVIE ROSE C. March 15, 2022

CBET-01-602A AC16

ANNALYSIS OF AN ANNUAL AUDIT REPORT (AAR) OF A NATIONAL GOVERNMENT AGENCY

Audit Report of Bureau of Customs (BOC) Audit Report of Department of Tourism

Parts of the AAR FAMILIAR
NEW REMARK NEW FAMILIAR REMARK
of an NGA INFORMATIO
INFORMATION S INFORMATION INFORMATION S
N
• • Statement of • • Statement of
Independent Management’s Independent Management’s
Auditor’s Responsibility • Needs to Auditor’s Responsibility for • Needs to
Report. for Financial Review. Report. Financial Review
Statements. Statements.
• Statement Government • Statement Government
of Accounting of Accounting
Comparison Comparison
of Budget • Statement of of Budget • Statement of
and Actual Financial • Needs to and Actual Financial • Needs to
Amount. Position. Review. Amount. Position. Review
Audited Financial Government Government
Statements • Notes to Accounting • Notes to Accounting
Financial Financial
Statements • Statement of Statements. • Statement of
- Agency Financial • Needs to - Agency Financial • Needs to
Profile Performance. Review. Profile Performance. Review
- Prior Government - Prior Government
Period Accounting Period Accounting
Adjust- Adjust-
ments • Statement of ments • Statement of
- Statemen Changes in • Needs to - Statemen Changes in Net • Needs to
t of Net Assets. Review. t of Assets. Review
Comparis Comparis
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DE LOS SANTOS, FEBVIE ROSE C. March 15, 2022
CBET-01-602A AC16
-on of Government -on of Government
Budget Accounting Budget Accounting
and and
Actual • Statement of Actual • Statement of
Amount Cash Flows. • Needs to Amount Cash Flows. • Needs to
Payment Government Review. Payment Government Review
s Accounting s Accounting
- Reconcil-
• Notes to iation of • Notes to
Financial • Needs to Net Cash Financial • Needs to
Statements Review. Flow Statements Review
- Statement from - Statement of
of Operatin Compliance
Complianc g and Basis of
e and Activities Preparation
Basis of to of Financial
Preparatio Surplus/ Statements
n of (Deficit) - Summary of
Financial - Report on Significant
Statement the Receipt Accounting
s and Policies
- Summary Utilization of - Changes in
of Disaster Accounting
Significant Risk Policies
Accounting Reduction - Cash and
Policies Management Cash
- Cash and Fund Equivalents
Cash Sourced - Receivables
Equivalent from the - Inventories
s GAA - Non-Current
- Receivable Assets
s - Other Assets
- Inventories
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DE LOS SANTOS, FEBVIE ROSE C. March 15, 2022
CBET-01-602A AC16
- Other - Financial
Current Liabilities
Assets - Inter-Agency
- Property, Payables
Plant, and - Intra-Agency
Equipment Payables
- Intangible - Trust
Assets Liabilities
- Other Non- - Other
Current Liabilities
Assets - Revenue
- Current - Personnel
Liabilities Services
- Tax - Maintenance
Revenue and Other
- Service Operating
and Expenses
Business - Financial
Income Expenses
- Shares, - Non-Cash
Grants, Expenses
and - Net Financial
Donations Assistance
- Non- - Gain
Operating - Losses
Income - Key
- Current Management
Operating Personnel
Expenses Compensatio
- Financial n
Expenses - Allotment,
- Non-Cash Obligations,
Expenses
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DE LOS SANTOS, FEBVIE ROSE C. March 15, 2022
CBET-01-602A AC16
- Net and
Assistance Balances
- Non- Government
Operating Accounting
Income
Government
Accounting
• Accounting • Financial • Cash and Cash
Errors and Audit. Equivalents • Needs to
Deficiencies. Intermediate Review
• Compliance Accounting
• Continued Audit.
Maintenance of • Receivables. • Needs to
Unauthorized Intermediate Review
Bank Accounts. Accounting

• Unremitted • Property, Plant,

Cash to the and Equipment • Needs to
Observations National Intermediate Review
and Treasury. Accounting
Recommendatio
ns • Idle Funds at • Due to GOCCs • Needs to
the PS-DBM. Government Review
Accounting
• Unliquidated
Fund Transfers. • Maintenance
and Other
• Unpaid Post Operating • Needs to
Modifications Expenses Review
Assessments of Government
Duties and Accounting
Taxes.
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DE LOS SANTOS, FEBVIE ROSE C. March 15, 2022
CBET-01-602A AC16
• Uncollected
Internal Revenue
Stamp.

• Overstaying
Cargoes.

• Foregone
Revenue.

• Incomplete
Documentation
of Importations.

• Unreleased
Cash Bonds.

• Non-Forfeiture
of Expired Cash
Bonds.

• Importations
Released with
Insufficient
Security Bond.

• Uncollected
Outstanding Due
and Demandable
Bonds.

• Internal Control
Deficiencies.
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DE LOS SANTOS, FEBVIE ROSE C. March 15, 2022
CBET-01-602A AC16

• Non-
Compliance with
Accreditation
Process.

• Undeposited
Seized
Currencies.

• Non-Imposition
of Liquidated
Damages.

• Actual
Collection vs.
Target for CY
2020.

• COVID-19
Related
Observations.

• Unsupported
and
Overpayment of
Hazard Pay.

• Gender and
Development.

• Senior Citizens
and Persons with
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DE LOS SANTOS, FEBVIE ROSE C. March 15, 2022
CBET-01-602A AC16
Disability, and
Youth.
• A total of 56 • A total of 72
recommendation recommendation
s wherein 23 are s wherein 28
Status if
implemented and were reiterated,
Implementation
the remaining 33 26 were
of Prior Years’
were not from implemented,
Audit
prior years’ audit and 18 were not
Recommendatio
recommendation from the prior
ns
s. years’ audit
recommendation
s.

Insights, Reflection, Realization, and Impact:

Having to read and understand one annual audit report is already to much for me so another one has been really
tiresome, but even with that, it was really interesting to read a financial report from a government agency, especially the
audit reports. I am just amazed on how detailed and on how much of an arduous work it is just by looking at the audit
report. You really have to analyze every nook and cranny of a financial report to make your audit reliable and relevant. I
am also in shock of how much error was seen on the reports although they all seem fine to me, this just means that I still
needs to study and I still have a lot to learn in able to achieve that kind of skill in the future whether I’ll work in government
or private.