Annex B

BUREAU OF LOCAL GOVERNMENT FINANCE

Regional Office No. XI
Davao City

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Audit Observations and Recommendations
For the Calendar Year 2020
As of July 31, 2021

Agency Action Plan Reasons

Target for
Implement Partial/D
Status
ation Date elay/Non
Person/ of Action
-
Observations Recommendations Dept. Imple Taken/Action to
Ref. Action Plan Impleme
Responsi mentati be Taken
ntation,
ble From To on
if
applicabl
e
AOM Management granted We recommend that the a. Management wrote their reply Admin 01/01/ 12/3 The During the exit
No. Compensatory Time Off Management: on November 3, 2020 on their Officer V 2021 1/20 managem conference held last
2020- (CTO) to BLGF personnel interpretation of the phrase “on 21 ent February 2021, we
001 who are on travel status that a) Stop the grant of travel status”, which they Designate/ awaits were informed by the
liberally interpreted in favor of Acting the Audit Team that per
(19) falls on a weekend and CTO on travel
the employee and that it refers Accountant official their meeting last
holiday contrary to CSC- status; to personal travel of employees written December 2020, they
DBM Joint Circular No. 2, b) Deduct the CTOs and not to official travels. With response have resolved that the
dated November 25, 2015, availed by the BLGF this, although there are no more from the grant of CTO for
resulting in unnecessary XI personnel from CTO on travel being granted in COA on employees on travel
claims of employees’ leave their accumulated 2020, we have not yet complied the status are not allowed
credits. leave credits, and; with the recommendations of matter. and it is clear in the
c) Submit to the Audit COA pending their response on CSC-DBM joint
 Agency Action Plan Status Reasons
Person/ Target of for Action
Observations Recommendations Dept. Implement Imple Partial/D Taken/Action to
Ref. Action Plan
Responsi ation Date mentati elay/Non be Taken
ble From To on -
Team the certified our letter. (Please see attached Impleme circular that “on travel
leave cards of said scanned received letter of status” is not authorized
personnel reflecting response dated Nov. 5, 2020) as rendition of
the adjustments b. We have not deducted yet the overtime. Thus, the
CTOs as listed in the AOM Cluster Director of
(deduction) from
pending COA’s response. NGS 2 instructed the
their accumulated The Administrative Officer V shall regions with the same
leave credits. submit to the Audit Team the concerns to issue an
adjusted leave credits of the AOM for that matter.
personnel involved in the CTO on
travel status pending COA’s
response.
AOM Management adopted We recommend that the a. The Management wrote a Admin 01/01/ 12/3 The The Audit Team
No. Executive Order (EO) 77 Management: reply on November 3, 2020 Officer V 2021 1/20 managem informed the RO XI
2020- prescribing the rules and citing provisions from the EO 77 21 ent management that this
002 regulations and rates of a) Stop granting and DOF Department Order on Designate/ awaits issue was raised in
Acting the
(19) expenses and allowances incidental expenses the contention that the one of our virtual
Accountant official
for local and foreign travels on travel claims when transportation and miscellaneous written
planning conferences
of government personnel using government expenses shall be in addition to response last December 2020.
and the Implementing vehicle; the DTE and that it allowed the from the It was forwarded to
Rules and Regulations b) Stop granting DTE claim of incidental expenses as COA on our lawyers for
(IRR) issued by the during a live-in one of the components of DTE the resolution and they
Department of Finance in seminar/conference regardless when the officer or matter. interpreted in favor of
compliance to Section 21 or a part of it when employee is using government the contentions of the
thereto, of which some the government or vehicle. That DOF IRR does not management.
provisions in the IRR were other parties provided allow the grant of DTE
not adhered. for lodging and/or component for lodging and It was agreed in the
meals, and; meals that are provided for exit conference on
c) Refund the excess government employees, but February 10, 2021
payment of DTE in leaving the incidental expenses that only those
CY 2019 claims of component of the DTE, which personnel who were
concerned personnel. can be claimed. (Please see provided with meals
 Agency Action Plan Status Reasons
Person/ Target of for Action
Observations Recommendations Dept. Implement Imple Partial/D Taken/Action to
Ref. Action Plan
Responsi ation Date mentati elay/Non be Taken
ble From To on -
attached scanned received Impleme and lodging, and
response to COA XI dated those whose meals
November 5, 2020) were paid as part of
b. We have not the registration fees
implemented to stop the grant of will refund.
DTE pending response of COA.
c. We have not
refunded/returned the alleged
excess payment of DTE pending
response of COA.
AOM Non-submission of We therefore reiterate our a. The management has Designate 01/01/ 12/3 Ongoing The management
No. Financial Statements, BRS previous recommendations directed the /Acting 2021 1/20 already directed all
2020- and BFARs from January to that management: Designate/Acting Accounta 21 accountable officers,
03 September 2020 within the Accountant to strictly follow nt both regular and
period presecribed under 1. Direct the the GAM and its mandatory designate, to comply
Section 60 and 7 of Bookkeeper and submissions of financial with the GAM and
Chapters 19 and 21, Budget Officer to reports both to CO and prescribed dates of
respectivly, Volume I of the prioritize the regional audit team. submission of reports
Government Accounting preparation of the b. The management has Designate to the CO and
Manual, and par. 5.2 and required Financial instructed the new /Acting regional Audit
5.3 of COA-DBM Joint Statements, Bank Designate/Acting Budget Budget Teams. The same was
Circular No. 2014-1 dated Reconciliation Officer, effective March Officer 01/01/ reiterated during the
July 2, 2014 hence, Statement, and 2021, to follow prescribed 2021 12/3 audit entrance
propriety of recording and Budget and Financial submission of budgetary 1/20 conference.
reporting of financial Accountability reports both to CO and 21
transactions cannot be Reports and submit regional audit team.
ascertained. the same within the
prescribed period;

2. Implement
adequate measures
 Agency Action Plan Status Reasons
Person/ Target of for Action
Observations Recommendations Dept. Implement Imple Partial/D Taken/Action to
Ref. Action Plan
Responsi ation Date mentati elay/Non be Taken
ble From To on -
that will enable the Impleme
agency to comply
with governing rules
and regulations to
avoid the imposition
of applicable
sanctions in case of
repeated unjustified
failure.
AOM Management failed to We recommend that The management is committed Property 01/01/ 12/3 Not Inventory
No. conduct the actual management ascertain to comply with the said Custodian 2021 1/20 Impleme Committee
2021- physical count of the compliance to the requirement and direct Property 21 nted is yet to be
01(20) provisions provided in Custodian to conduct annual created
Property, Plant and
Equipment (PPE) of the Section 38, Chapter 10 of Physical Count of PPE to be
Bureau of Local the Government conducted by the Inventory
Government Finance - Accounting Manual (GAM) Committee with the presence of
Regional Office No. XI as by conducting the annual the COA auditors
at December 31, 2020 as physical count of PPE and
the submission of the
well as submit the
RPCPPE as at December 31
corresponding Report on
of each year on or before
the Physical Count of January 31 of the following
Property, Plant and year.
Equipment (RCPPE)
contrary to Section 38,
Chapter 10 of the
Government Accounting
Manual (GAM) for
National Government
Agencies (NGAs), which
renders the reported
 Agency Action Plan Status Reasons
Person/ Target of for Action
Observations Recommendations Dept. Implement Imple Partial/D Taken/Action to
Ref. Action Plan
Responsi ation Date mentati elay/Non be Taken
ble From To on -
balances of PPE in the Impleme
books at year-end not
reliable.
AOM Management failed to We reiterate our
No. submit the GAD Plan and recommendation to
2021- Budget (GPB) for CY 2020 Management:
02(20) endorsed by the Philippine
Commission on Women a. Regularly communicate
(PCW) and the in writing with the BGLF
corresponding GAD Central Office about the
Accomplishment Report PCW-endorsed GPB to be
(GAD AR) thus, activities used as reference for the
and programs conducted by implementation of GAD
the agency cannot be activities by the Office;
ascertained if gender issues
were addressed and within b. Ensure compliance with
the mandate of the Office, Section V of COA Circular
contrary to Section V of No. 2014-001 and the
COA Circular No. 2014- yearly GAA provision
001 dated March 18, 2014 related to GAD.
and Sections 7 and 5.4 of
PCW-NEDA-DBM Joint
Circular No. 2012-01.