Republic of the Philippines

Iloilo Science and Technology University

Burgos St., La Paz, Iloilo City, 5000 Philippines
Trunkline: (+6333) 320-7190 | Telefax: (+6333) 329-4274
https://www.isatu.edu.ph/
mail@isatu.edu.ph

 SUMMARY OF GAPS

I. Detailed Audit Findings (Criteria, Condition, Conclusion, and Cause), Audit

Recommendations, Management Comments, and Team’s Rejoinder

A. PETTY CASH FUND – SUPPLIES AND OTHER PETTY EXPENSES

1. Cash Count

1.1. Audit Findings

Cashier’s Office Date of Cash Count: June 14, 2023, 10:24am

PCF Custodian: Mrs. Maria Luisa N. Eiman/Ms. PCF Accountability: Php 15,000.00
Lizette M. Fusin
Petty Cash Count
Total cash on hand Php 842.00
Un replenished expenses Php 14,158.00
Total cash on hand and un replenished expenses Php 15,000.00
PCF accountability Php 15,000.00
Overage/(Shortage) Php 0.00

Criteria Condition Conclusion Cause

1.1.1. Chapter 6, The current unreplenished expense of the Cashier has not The PCF
Section 35: Cash Cashier’s Office is P14,158, while the properly complied custodian is not
Advance for Petty designated amount for their petty cash fund with Chapter 6, aware of the
Operating is P15,000. They consumed 94% of their Section 35: Cash internal guidelines
Expenses of petty cash fund before they applied for Advance for Petty regarding the
Government replenishment. Operating replenishment of
Accounting Expenses of the the petty cash
Manual: …” The Government fund.
PCF shall be Accounting
replenished as Manual.
soon as
disbursements Almost fully
reach at consuming the
least 75% or as Petty Cash Fund
needed.” would result to
shortage or
suspension of
issuance of such
fund.
1.1.2. Section 37: During our audit, the Cashier was not able This is on contrary The Cashier
Accounting to present the Report on Paid Petty Cash to Section 37 ensured that all
Books, Records, Vouchers (Appendix 49) and Petty Cash Chapter 6 of the documentary
Forms and Fund Record (Appendix 50) immediately Government requirements were
Reports to be upon request. Accounting met by the
Prepared and Manual. requestor before
Maintained of issuing the petty
Government In the absence of cash fund,
Accounting PCFR, there is no resulting in the
Manual: “The monitoring or late preparation of
PCFC shall summarization of the Report on
prepare the PCF established or Paid Petty Cash
RPPCV and replenished and Vouchers and
maintain the Petty the disbursements Petty Cash Fund
Cash Fund Record charged therein. In Record.
(PCFR) the absence of
(Appendix 50) to RPPCV, there is
monitor and no basis for the
control the preparation of the
granting and DV to replenish
utilization of the the PCF.
fund.”
1.1.3. Section 3 of Upon inspection on June 14, 2023, of the Once a fidelity The person-in-
Internal petty cash fund covered by the fidelity bond expires, the charge of
Guidelines on bond, we found out that the fidelity bonds special disbursing processing the
Petty Cash Fund: of all three (3) Bonded Public Officers of officer is no fidelity bond of
Each custodian ISAT U Miag-ao Campus issued from the longer protected the special
must have a copy Bureau of Treasury had already expired on against losses disbursing
of their Authority March 9, 2023, three (3) months and five resulting from officers has not
to Maintain Petty (5) days after we conducted our petty cash employee yet renewed the
Cash Fund and fund audit. See Annex 1 dishonesty or said bond due to
updated Fidelity fraud. Any her busy schedule.
Bond from the subsequent
Bureau of incidents of
Treasury. employee theft or
fraud will not be
covered by the
expired bond.

In addition, it is
contrary to Section
3 of the Internal
Guidelines on
Petty Cash Fund.
1.1.4. Section 2: Under RER No. 2, the entity name and fund If the receipts are The personnel
Specific cluster were not filled out. not properly assigned to the
Guidelines for completed or lack petty cash fund
IIRGP Operation See Annex 2 essential was not informed
no. 1 of Office information, they of the guidelines
Memorandum No. may be rejected for filling out the
3, s. of 2019 outright. The Reimbursement
Internal organization or Expense Receipt
Guidelines on entity responsible (RER). She was
Petty Cash Fund for reimbursement just maintaining
“For purchases might have the practice of the
from wet market specific personnel
or consigned requirements assigned before
goods, the IIRGP regarding the her.
Units shall be information that
requested to use must be included
Reimbursement on receipts.
Expense Receipt Failure to comply
(RER) Form and with these
List of Purchases requirements can
result in the denial
of reimbursement
requests.

Furthermore, it is
contrary to Section
2: Specific
Guidelines for
IIRGP Operation
no. 1 of Office
Memorandum No.
3, s. of 2019
Internal
Guidelines on
Petty Cash Fund
1.1.5. COA The Cashier does not utilize the This is on contrary The assigned
Circular No. 2021- Certification of Expenses not requiring to COA Circular person was not
021: Clarification Receipts for transactions or expenses No. 2021-021. oriented, aware or
on the use of amounting to P300.00 or less purchased informed of the
Reimbursement from or rendered by establishments not COA circular and
Expense Receipt issuing receipts or invoices. has just been
(RER) and maintaining their
Certification in previous practice
relation to of complying with
reimbursement of required
expenses not documents for
requiring Official transactions or
Receipts (ORs) expenses not
issuing receipts or
invoices through
the use of RER,
regardless of the
amount.
1.1.6. Section Budget Request for Provision of Meals and This is contrary to Simple human
36(c): Liquidation Snacks Form dated March 17, 2023 under Section 36(c): error or oversight
of PCF no. 12 of PCV No. 2023-03-036 was not signed by Liquidation of can contribute to
Government the Campus Administrator. PCF no. 12 of the failure to
Accounting Government verify the
Manual: “Such See Annex 3 Accounting approval of the
other supporting Manual. receipts. In busy
document that or high-pressure
may be required.” Incomplete form environments,
like no signatures individuals may
might signify as unintentionally
non-approval of skip or overlook
such document. the verification
step, leading to
unintended
consequences.
1.1.7. PD 1445. The receipts of the expenses or transactions This practice of The assigned
Chapter 4. Internal under the petty cash fund were not verified not verifying the person was not
Control Systems. or reviewed for correctness by the Supply availability of the oriented, aware or
Sec 123. or Inspection Officer. In addition, there is item requested informed and has
Definition of no certification from the Supply Officer that from the Supply just been
Internal Control. the item requested is unavailable in the Office could lead maintaining their
Supply Office. to double expenses previous practice
since the item of complying with
requested might required
also be available documents for
in the Supply transactions or
Office. expenses under
 their Petty Cash
This is contrary to Fund
PD 1445. Chapter
4. Internal Control
Systems. Sec 123.
Definition of
Internal Control.

1.2. Audit Recommendations

1.2.1. The Cashier must monitor the cash flow of their petty
cash fund and ensure that they replenish it if it reaches
50% or as needed based on their experience. This is to
ensure that the Petty Cash Custodian will avoid a
shortage of Petty Cash Funds or the suspension of the
issuance of their Petty Cash.

1.2.2. The Cashier must utilize the using of Report on Paid

Petty Cash Voucher (RPPCV) (Appendix 49) and Petty
Cash Fund Record (PCFR) (Appendix 50). Both forms
can help ensure that expenditures are properly
authorized, supported by appropriate documentation,
and recorded accurately. They can prove that there is
documentation or tracking of cash disbursements. They
make it easier to account for the use of funds and
understand how the cash was spent.

1.2.3. The office of Administrative Officer V and Cashier

must ensure that the fidelity bonds of the accountable
officers are renewed before their expiration and that
there is sufficient time to initiate the renewal process,
allowing for any necessary adjustments or negotiations.
She must see to it that each officer is informed of their
designated petty cash fund amount and their duties,
responsibilities, and limitations as disbursing officers.

1.2.4. The Petty Cash Custodian should properly fill out the
Reimbursement Expense Receipts (RER) including the
entity name and fund cluster. Improperly filled out
receipts can raise concerns during internal or external
audits. If there are discrepancies or missing information
on reimbursement receipts, it may trigger further
scrutiny and investigation into the legitimacy of the
expenses. This can lead to potential compliance issues
and damage the individual's reputation or credibility.

1.2.5. The Cashier must strictly adhere to COA Circular No.

2021-021 in using RER and Certification of Expenses
not requiring Receipts. The office must identify which
of the two documents must be used in transactions or
reimbursement of expenses not requiring Official
Receipts (ORs).
 As for COA Circular No. 2021-021, for transactions or
expenses amounting to P300.00 or less purchased from
or rendered by establishments not issuing receipts or
invoice, “Certification of Expenses not requiring
Receipts” must be used. For Transactions or expenses
amounting to more that P300 purchased from or
rendered by establishments not issuing receipts or
invoices, “Reimbursement Expense Receipt (RER) must
be used”.

1.2.6. The Cashier should properly review and monitor the

completeness of the filling of the Petty Cash Voucher
and its documentary requirements during the issuance
and liquidation of the Petty Cash Fund. With complete
documentation, the office can provide the required
information during audits or regulatory inspections. It
would also be easier to track and validate financial
transactions, leading to accurate financial records.

1.2.7. Cashier must ensure that before paying the requesting

personnel’s request to purchase outside office supplies
and other items that are part of the Annual
Procurement Plan (APP), the Supply Officer has
properly reviewed the items to be purchased stated in
the PCV. The latter officer should sign the PCV and
make a comment that “Supplies to be purchased are not
available in the stockroom”.

After purchase by the requesting personnel, he/she must

return to the Supply Office for the Inspection and
Acceptance by the Supply Officer. Said officer shall
verify that the approved items indicated in the PCV are
the same items purchased by the requesting personnel.
The PCF Custodian will accept the liquidation if the
official receipts or other documents bear the stamp of
the Supply Officers that the purchased items have been
inspected.

Responsible Person:

Administrative Officer V, Cashier, Supply Officer, Requesting Officer

1.3. Management Comments

1.4. Team’s Rejoinder
  SUMMARY OF GAPS

II. Detailed Audit Findings (Criteria, Condition, Conclusion, and Cause), Audit
Recommendations, Management Comments, and Team’s Rejoinder

B. PETTY CASH FUND – GASOLINE

2. Cash Count

2.1. Audit Findings

PCF – Gasoline Date of Cash Count: June 14, 2023; 1:51 PM

PCF Custodian: Maria Luisa N. Eiman / Richel Joy P. PCF Accountability: Php 15,000.00
Napilan
Petty Cash Count
Total cash on hand Php 9,633.25
Un replenished expenses Php 5,370.58
Total cash on hand and un replenished expenses Php 15,003.83
PCF accountability Php 15,000.00
Overage/(Shortage) Php 3.83

Criteria Condition Conclusion Cause

2.1.1.Internal During the cash count of the Petty Cash Although the The overage is
Guidelines on Fund (PCF), the office had an overage of overage of PCF is due to the
Petty Cash Fund Php 3.83. immaterial, it will immaterial
(PCF), I. General result in the amount of coins
Guidelines 5. following accumulated after
Recording of PCF observations: the driver refills
overage and the fuel and
shortage. 1) This is contrary returns it to the
to the Internal custodian.
Guidelines on PCF,
I. General
Guidelines 5.
Recording of Petty
Cash Fund overage
and shortage.

2) Accounting
discrepancies. An
overage can indicate
errors in recording
transactions or
reconciling the petty
cash.

3) Lack of control.
An overage suggests
a lack of control and
proper monitoring
of the PCF.

4) Reconciliation
difficulties. An
overage can
complicate the
reconciliation
process. It requires
identifying the
specific transactions
 or errors that led to
the overage and
rectifying them
accurately.

2.1.2. PD 1445. The campus still uses the old QF forms for In the absence of The campus is not
Ordaining and travel requests and the use of university monitoring for the aware that there is
Instituting a vehicles. The following are the old forms Gasoline Used in a revision in the
Government still in use:  the Vehicle Trip Quality Forms
Auditing Code of Ticket (QF- used in the
the Philippines. 1) Vehicle Trip Ticket TRANS-02), the official travel
Chapter 4. campus would not requests and the
Internal Control Old Form - QF-HRD-MC-07; Effective be able to have use of university
Systems. Sec 123. Date: September 1, 2015 See Annex 4 control over vehicles.
Definition of gasoline
Internal Control. New Form – QF-TRANS-02; Revision consumption and
Internal control is No. 03; Effective Date: January 3, 2019. possibly allow theft
the plan of or misuse of
organization and Issue: The old form has no Item B for gasoline.
all the coordinate Gasoline Used. This is used to monitor the
methods and movement of gasoline and include the The campus has not
measures adopted following details: balance in tank properly
within an (beginning), purchased outside, gasoline disseminated and
organization or used (based on odometer reading), and implemented the
agency to balance in tank (ending). Office
safeguard its Memorandum
assets, check the issued by the
2) Request for Use of Vehicle
accuracy and University. Thus, it
reliability of its resulted in non-
accounting data, Old Form - QF-HRD-MC-06; Effective compliance and
and encourage Date: September 1, 2015. See Annex 5 policy violations,
adherence to lack of awareness,
prescribed New Form – QF-TRANS-01; Revision miscommunications,
managerial No. 02; Effective Date: February 15, 2023 decreased
policies. productivity and
Issue. The old form has no details for missed opportunities
Office Certified as to: Availability or Non- for improvement.
Memorandum No. Availability of Vehicle.
81, s. 2023.
Newly Created
Quality Forms for
System Wide Use.
Revised Forms.
Request for Use
of University
Vehicle.

2.1.3. Internal The PCFC and university driver were not This practice is The campus
Guidelines on able to obtain a canvass from at least three contrary to the personnel who are
Petty Cash Fund (3) suppliers before purchasing gasoline: internal policy of involved in
(PCF). I. General the University. custodianship and
Guidelines. 4. The 1) PCV No. 23-06-069; purchased of the purchase of
Petty Cash Fund gasoline; Php 2,359.89; Sales Invoice No. Canvassing in the gasoline were not
shall be 01-000045153; dated 06/13/2023; Php government aware of this
maintained as 2,359.89 See Annex 6 promotes requirement, as
follows. 4.5. transparency, stated in the
Canvass from at 2) PCV No. 23-06-070; purchased of accountability, fair University’s
least three (3) gasoline; Php 3,010.69; Sales Invoice No. competition, Internal
suppliers will be 01-000045218; dated 06/13/2023; Php compliance with Guidelines on
required for 3,010.69 See Annex 7 regulations, and PCF.
purchases cost-effective
involving Php procurement. It
1,000.00 and safeguards the
above, except for university interest,
purchases made ensures responsible
while on official use of taxpayer
travel and IIRGP funds, and supports
purchase of the delivery of
goods. quality goods and
services to the
government and its
constituents.
2.1.4. Government In PCV No. 23-06-069 dated June 12, Not properly filling The PCFC is not
Accounting 2023, amounting to Php 3,000.00, the out a petty cash properly oriented
Manual (GAM). PCFC has released the petty cash to the form can have according to the
Chapter 6. requester and liquidated it even though the several effects: internal
Disbursement. Sec PCV form was not properly filled out and guidelines of the
38. Utilization of approved by the requestor’s immediate 1) Lack of PCF.
Cash Advance supervisor. documentation. If
from PCF, Seq 3- the PCV form is
10; Liquidation of See Annex 8 incomplete or
Cash Advance inaccurate which
from PCF, Seq can create
11-23. difficulties during
audits or when
reconciling the PCF.

2) Inaccurate record
keeping. A properly
filled out PCV form
helps maintain
accurate records of
petty cash
transactions. Failure
to properly fill out
the form can result
in errors, omissions,
or inconsistencies in
the records, leading
to difficulties in
reconciling and
tracking the fund’s
usage.

3) Difficulty in
reimbursement.
Incomplete or
inaccurate PCV
form may delay or
complicate the
liquidation process.

4). Lack of
transparency.
Incomplete or
improperly filled
out PCV forms can
raise question about
the accuracy and
legitimacy of the
expenses,
potentially leading
to suspicion or
distrust regarding
 the use of the PCF.

5) Compliance
Issues. Incomplete
or inaccurate PCV
forms may violate
the University’s
Internal Guidelines
on PCF or create
compliance issues.

2.2. Audit Recommendations

2.2.1. The Petty Cash Fund Custodian (PCFC) must ensure that the cash on
hands, unreplenished expenses is tallied with the established
accountability. Additionally, the PCFC is requested to implement a
stronger internal control such as regular review of her PCF that can
help prevent future overages.

As per Internal Guidelines on Petty Cash Fund (PCF), I. General

Guidelines 5. Recording of PCF overage and shortage. 5.1 Cash
overage discovered that cannot be satisfactorily explained by the
PCFC shall be forfeited in favour of the University and an official
receipt shall be issued by the cashier. The cash overage shall be taken
as Miscellaneous Income.

2.2.2. The management of Miag-ao Campus must ensure that they strictly
complied with the Office Memorandum issued by the University. To
avoid a negative effect, it is crucial to establish a culture of reading and
implementing the memos promptly, and implementing mechanisms to
track and confirm receipts of memo can help ensure that important
information is not overlooked or disregarded.

2.2.3. The PCFC and university driver must ensure that they obtain a
canvass from at least three (3) suppliers before the purchase of
gasoline. Canvassing is a GAM requirement for purchases involving
Php 1,000.00 and above, except for purchases made while on official
travel and IIRGP purchase of goods.

2.2.4. The PCFC must ensure that PCV Part 1 is properly filled out and
approved before the release of petty cash to the requestor. The same is
true during the liquidation part II of PCV, in which the PCFC ensures
that the requestor has properly liquidated the petty cash.

Responsible Person:

Iloilo City Campus:

Campus Administrator, Administrative Officer V, PCF Custodian

2.3. Management Comments

2.4. Team’s Rejoinder

ANNEX 1. Lack supporting documents

ANNEX 2. No Entity Name and Fund Cluster
ANNEX 3. Not signed by the Campus Administrator
ANNEX 4. Outdated Vehicle Trip Ticket Form
ANNEX 5. Outdated Request for Use of Vehicle Form
ANNEX 6. No canvass forms
ANNEX 7. No canvass forms
ANNEX 8. Incomplete filling out of PCV