EXECUTIVE SUMMARY

A. INTRODUCTION

Agency Profile

The Western Mindanao State University (WMSU) was created under Presidential
Decree No. 1427 in June 10, 1978. Its current status is greatly strengthened with the
approval of RA 8292 on June 6, 1997 providing for the uniform composition and powers
of the governing board of State Universities and Colleges (SUCs) and placing them under
the supervision of the Commission on Higher Education (CHED).

The Board of Regents is the policy making body of the Western Mindanao State
University (WMSU), which is composed of 12 members, as follows:

Chairman Chairman, Commission on Higher Education

Represented by: Com. Nona S. Ricafort
(March 25, 2011- to present)

Vice- Chairman President, Western Mindanao State University

Dr. Milabel E. Ho, RN, Ed.d

Members Chairman, Senate Committee on Education, Culture & Arts

Hon. Senator Edgardo J. Angara
Represented by: Hon. Renato S. San Agustin

Chairman, House Committee on Higher & Technical Education

Hon. Juan Edgardo M. Angara
Represented by: Hon. Mayor Celso L. Lobregat

Regional Director, NEDA RO IX

Hon. Teresita Socorro C. Ramos

President, WMSU Faculty Union

Hon. Edgar R. Araojo

President, WMSU Alumni Association, Inc.

Hon. Eduardo F. Sanson

President, University Student Council (USC)

Hon. Jay S. Calumpon

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 Private Sector Representative:
Hon. Servando M. Evangelista
Dr. Emmylou B. Yanga – Consultant/Resource Person

The Executive Officers of WMSU is headed by the University President/Officer-

In-Charge on the following dates:

Name of Executive Officer Appointments/ Period of Service

Dr. Luningning M. Umar
Dr. Armando A. Arquiza
Dr. Carmelita M. Felisilda
Dr. Milabel E. Ho
Designations
University President Nov. 15, 2011-Feb. 15, 2012
(Feb.9-14,2012 official travel)
Officer-In-Charge Feb. 9-14, 2012
Officer-In-Charge Feb. 15, 2012-April 16, 2012
University President April 17, 2012 to Present

The above executive officers are assisted by the following Vice Presidents:
Name of Vice-Presidents Appointments/ Period of Service
Designations
Dr. Milabel E. Ho Vice Pres. For Research, Jan. 1, 2012- April 16, 2012
Extension & Development
Dr. Roberto B. Torres OIC, Vice Pres. For April 28, 2012 – Present
Research, Extension &
Development
Dr. Carmelita M. Felisilda Vice Pres. For Academic Nov, 23, 2011 – Present
Affairs
Dr. Loyda A. Bangahan OIC, Vice Pres. For Aug. 2, 2010 – July 31, 2012
Planning, Administration
and Finance
Vice Pres. for Planning, Jan. 4, 2012 – July 31, 2012
Administration and Finance
Dr. Ederlinda M. Fernandez OIC, Vice Pres. For July 16, 2012 – Aug. 30, 2012
Planning, Administration
and Finance
Vice Pres. For Planning, Sept. 1, 2012 – Present
Administration and Finance

As to the University and Board Secretary, the following personnel served as such,
to wit: OIC University and Board Secretary Ricardo Danilo E. Corteza, Ed.D. and
Yolanda Alcala. The Chief of Staff is Prof. Myrna Joy B. Mendoza.

As of December 31, 2012, the WMSU has a total personnel complement of 1,302,
broken down as follows:

a Administrative Staff 144

b Regular Faculty Members 542
c Visiting Lecturers 339

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 d Casuals 12
e Job-Orders 39
f Contract of Service 225
g Substitute Teachers 1
Total 1,302

B. FINANCIAL HIGHLIGHTS

The University’s financial conditions, results of operation and sources and

application of funds are as follows:

Financial Condition
2012 2011 Increase/(Decrease)
Assets 322,922,025.00 288,744,760.00 34,177,265.00
Liabilities 93,415,949.00 61,730,052.00 31,685,897.00
Government Equity 229,506,076 227,014,708.00 2,491,368.00

Result of Operation
2012 2011 Increase/(Decrease)
Income 460,578,581.00 484,044,422.00 (23,465,841.00)
Expense 455,948,412 472,591,141.00 (16,642,729.00)
Net Income 4,630,16 11,453,281.00 (6,823,112)

Sources and Application of Funds

2012 2011 Increase/(Decrease)
Allotment Received 320,478,705.32 293,723,931.00 26,754,774.32
Obligations Incurred 315,078,603.69 287,257,501.00 27,821,102.69
Unexpended Balance 5,400,101.63 6,466,430.00 (1,066,328.37)

The Statement of Allotments, Obligations and Balances are presented in detail in

Annex “A”.

C. Operational Highlights

The year 2012 witnessed the ascendancy of Dr. Milabel E. Ho to the WMSU
presidency in April. The University continued to honor an age-old tradition of excellence
in education and service by preparing for the intensified and expanded accreditation of
curricular programs by the Accrediting Agency for Chartered Colleges and Universities
of the Philippines (AACCUP).

In CY 2012, the College of Criminal Justice Education, WMSU was given the
“Special Award for School/Academe Category” in the Criminology Awards given by the
PNP Regional Office IX for having consistently produced well-trained and reliable

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licensed criminology graduates who give outstanding performances in PNP recruitment
examination as well as in police training programs.

The University did well in the licensure examinations in 2012 producing the
following topnotchers: 5th place, Forester Licensure Examination; 9th place, Nutrition and
Dietetics Licensure Examination; 7th and 9th place, Nurse Licensure Examination; 5th place,
Geodetic Engineer Licensure Examination. Table 1 shows WMSU’s percentage passing
rate compared to the national passing rate in various licensure examinations

Table 1. WMSU Performance in Licensure Examinations

LICENSURE WMSU National Passing
EXAMINATION Passing Rate
Rate
Agriculturist 26% 38%
Forester 33% 38%
Architect 47% 51%
Environmental Planner 50% 63%
Accountant 31% 44%
Criminologist 36% 32%
Teachers (BEED) 48% 47%
Teachers (BSED) 34% 37%
A.T.E.P. 31% 18%
Civil Engineer 40% 39%
Electrical Engineer 53% 50%
Electronics Engineer 67% 52%
Geodetic Engineer 30% 35%
Master Electrician 32% 35%
Master Plumber 31% 40%
Mechanical Engineer 45% 67%
Sanitary Engineer 39% 50%
Nutritionist-Dietician 32% 67%
Nurse 52% 41%
Chemist 44% 45%
Guidance Counselor 100% 55%
Social Worker 52% 62%

Graduates of the following non-formal courses of the Department of Extension

Services and Community Development (DESCD) registered a hundred percent rate in the
National Certificate II (NCII) administered by TESDA: Baking, Cooking and Food
Processing, Plumbing and Practical Electricity.

The Student Scholarships Office granted scholarships to a total of 2,223 students

under a total of 53 scholarship programs offered by individuals and institutions outside of
the University, in addition to the 10 scholarships programs that WMSU itself grants.

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 In research, there were a total of 11 completed research projects at the end of the
year. The University renewed its commitment in extension services and constructed a
new floating school with a grant from the Japanese Embassy.

D. SCOPE OF AUDIT

Our audit covered the financial transactions of the Western Mindanao State
University (WMSU) - Main, Zamboanga City as of December 31, 2012 as reflected in the
financial statements. It was conducted to: (a) verify the level of assurance that may be
placed on management’s assertion on the financial statements; (b) recommend agency
improvement opportunities; and (c) determine the extent of implementation of prior
year’s audit recommendations. Excluded in our scope of audit are transactions pertaining
to the 15 External Studies Units (ESUS) of the University.

E. STATE AUDITOR’S REPORT

The auditor rendered a qualified opinion on the fairness of the presentation of the
financial statements of WMSU in view of the following prior year deficiencies that had
not been corrected:

 unreliability of the balance of the Inventory Accounts totalling P9,136,161.93 due

to various lapses in supply management;
 unrecorded receivable from delinquent scholars in the total amount of
P33,918,769.02;
 non-valuation of land account; and
 inaction and/or non-adjustment of dormant account in the total amount of
P6,807,387.32.

F. SUMMARY OF SIGNIFICANT AUDIT OBSERVATIONS AND

RECOMMENDATIONS

Below are the audit team’s significant observations and the corresponding
recommendations:

1. The unexpended balance amounting P3,627,295.48 representing savings from

completed projects funded by Commission on Information and Communication
Technology (CICT) were not returned to the source agency in violation of the
Memoranda of Agreement entered into by both parties and COA Circular 94-013 dated
Dec. 13, 1994 thus depriving the government needed funds for other projects.

We recommend that management should adhere strictly to the provisions of MOA

entered into with CICT and Section 4.9 of COA Circular 94-013 dated December 13,
1994 by returning the net savings to the source agency, as in this case, the Bureau of
Treasury after terminal report had been rendered. In future MOAs, when there are other
instructions made to the project coordinator after the project had been completed, a

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revised or amended MOA should be executed by both parties to make it legal instead of
verbal instructions or request for realignment, as it is considered null and void.

2. Payments for honoraria totaling P 4,609,218.00 were not in accordance with the
General Appropriations Act (GAA), DBM Circular No. 97-002 and contrary to the
provisions of COA Circular No. 94-013, thus could result in unnecessary used of
government funds.

We recommend that payment of honoraria should be based on MOA provided it

does not exceed the rates prescribed under DBM Circular No. 2007-002 dated October 1,
2007 and shall not exceed 25% of the annual basic salaries taking into account other
honoraria received during the year from all other sources/projects. Moreover,
management should submit an explanation on the legal basis of the rates used to pay the
honoraria which varies from one study leader to another including the administrative
support staff.

3. Registration fees claimed by teaching and non-teaching personnel who

participated in conventions/conferences/seminars were not in accordance with the rate
provided under National Budget Circular Letter No. 486 dated October 17, 2003, thus,
resulted in disallowances amounting to P41,900.00.

We recommend that management should stop the practice of allowing participants

to claim registration fees for seminars, conferences, conventions, symposia and other
non-trainings or gatherings sponsored by non-government and private organizations in
excess of what is allowed under NBC No. 486 to avoid disallowances in audit.
Moreover, require the claimants to refund the excess registration fee as required in the
said circular.

4. Disbursement of funds pertaining to the research “ CHED Enhancing Productivity

of Abaca for Region IX and CARAGA” were not in accordance with the prepared budget
resulting to overdraft of the budget for honoraria totaling P10,000.00.

We recommend that expenditures charged against the project be limited to what

are specified in the approved budget since it is their authority to disburse. The Director
for Finance and the Accountant to submit an explanation as to the incurrence of
overdraft due to excessive payment of honorarium.

5. Disallowances amounting to P 378,938.53 remained unsettled despite the issuance

of Notice of Finality of Decision and Certificate of Execution, hence, not in keeping with
COA Circular No. 2009-006 dated Sept. 15, 2009.

We recommend that management exert effort to enforce immediate settlement of

disallowances thru deduction from any outstanding claim of persons liable or through the
withholding of salaries of those who failed to settle their disallowances.

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 We also recommend that management instruct the Accountant to prepare a
periodic schedule of deductions from the salaries of officials and employees concerned to
facilitate monitoring and collection of disallowances.

G. STATUS OF IMPLEMENTATION BY MANAGEMENT OF PRIOR

YEAR’S AUDIT RECOMMENDATION

We looked into the actions taken by the agency to implement the prior year’s
recommendations. The status of implementation is summarized as follows :

Year Fully Partially Not Total

Implemented Implemented Implemented
2011 6 2 8
2010 4 4
2009 3 1 4
2008 2 1 1 4
2007 1 1 2

The details are discussed in Part III of this report.

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