NATIONAL GOVERNMENT SECTOR

Cluster 6
Department of Health-NCRO
Audit Group II

Audit Program
Personnel Services
For the Calendar Year 2016

Accounts: Salaries and Wages, PERA, ADCOM, Representation Allowance, Transportation Allowance, Productivity Incentive Allowance,
Cash Gift, Year-end Bonus, Life and Retirement, PAG-IBIG, PHILHEALTH and ECC.

Audit
Risk/s Assertions Audit Procedures Ref.
Objectives
1. There is a 1. To Existence 1.1 Obtain copy of paid payrolls for the audit period PS, Col. 1&2
risk that determine including the summary per office/department.
Valuation
payments whether Review footing and cross-footing.
for personal payments
1.2 Obtain plantilla of personnel, latest appointment PS, Col. 3
services for personal
papers, salary adjustment notices, list of
may not be services
retirements, resignations, transfers and deaths,
recorded in were
administrative charges and fines etc. from the
the books of properly
Personnel Office.
accounts. recorded in
the books of 1.3 Using the prescribed sampling method, select PS, Col. 5-17
accounts. samples of paid payrolls for verification. Payrolls
for the month of January will be audited 100%. In
subsequent months, only the changes will be
audited. The changes can be determined by
comparing the monthly gross pay from January to
December. If in the previous year/s, the January

AP - PS 1
 Audit
Risk/s Assertions Audit Procedures Ref.
Objectives
payroll has already been audited 100%, then only
the changes will be audited, even in January of the
current year.
1.4 Trace sample salary payments to individual index PS, Col. 83-85
cards maintained by Accounting Department to
detect possible double payments.
1.5 Verify whether additional compensation and PS, Col. 32-40
allowances granted are authorized pursuant to
existing rules and regulations.
1.6 Compare payrolls for year end’s bonus and the PS, Row 34
productivity incentive allowance against the
audited January payroll and ascertain the reason
for the discrepancy in the number of personnel.
1.7 See to it that RATA is paid only to authorized PS, Col. 18-31
officials, as provided for in the yearly General
Appropriations Act.
1.8 From the summary in procedure no. 1, trace
payroll amounts up to the financial statements.
Take note of discrepancies.
1.9 Review employees’ contributions/ PS, Col. 41-66
withholdings/deductions on payrolls by reference
audit work done on Inter-Agency Payables
1.10 Verify whether unclaimed salaries and wages are PS, Col. 86-89
excluded from payroll totals and properly recorded
under payable account.
1.11 Trace the account balances in the FS/Trial Balance PS, Row No. 56-58
to the General Ledger (GL). Reconcile postings in
the GL with the monthly totals of Cash
Disbursement Journal and the Report of

AP - PS 2
 Audit
Risk/s Assertions Audit Procedures Ref.
Objectives
Disbursements or the General Journal for salaries
paid through Automated Teller Machine (ATM).
2. There is a 2. To Regularity 2.1 For January payroll:
risk that determine
a. Compare the names of employees
some whether
appearing in the payrolls and the
payments payments
corresponding rates paid with those in the
are not are made
file of appointments and plantilla of
made to only to
personnel. Take note of any disparity.
legally legally
appointed appointed b. Check appointment papers to see if
employees employees these are attested by the Civil Service
or their duly or their duly Commission.
authorized authorized c. Scrutinize paid payrolls and verify
representati representati whether payments were made only to
ves. ves employees concerned or their duly
authorized representative by comparing the
signatures appearing in the specimen
signature/ authorization against those on the
paid payrolls.
d. Recompute individual net pay amounts
to ascertain correctness of payments made.
2.2 For subsequent months:
a. Compare total monthly payments per
office/department using the summary of
paid payrolls, and compute changes in the
monthly payroll amount
(increase/decrease).
b. Check against source documents only
those payroll payments representing
changes during the payroll month audited.

AP - PS 3
 Audit
Risk/s Assertions Audit Procedures Ref.
Objectives
Do this procedure up to the December
payroll payments.
3. There is a 3. To Regularity 3.1 Determine compliance on minimum net pay. For PS, Col. 67-82
risk that the determine computerized payroll, review as follows:
required whether
a. Run query for net pay amounting to
minimum mandatory
P3,500.00 and below.
net take deductions,
home pay of including b. Summarize and get explanation for
P3,500 per leave employees with net pay below P3,500.00.
month is not without pay,
3.2 Reconcile data on reports of attendance/daily time PS, Col. 90-105
being are given
records with record of leave to determine if
followed. first priority
absences and undertimes are deducted from either
in
payroll or leave credits.
implementi
ng the
minimum
net take
home pay of
P3,000 per
month in
accordance
with the
General
Provisions
of the
General
Appropriati
ons.

AP - PS 4
 Audit
Risk/s Assertions Audit Procedures Ref.
Objectives
4. There is a 4. To Presentation 4.1 Compare presentation of accounts with those
risk that determine required by GAM and PPSAS. Ensure that
expenses are whether appropriate disclosures are made in financial
not properly personnel statements where necessary.
described, services
4.2 Review accounting entries and ascertain that PS, Row 55
classified expenses
payrolls are recorded in the proper expense
and are properly
account classification.
presented in described,
the classified
Statement of and
Financial presented in
Performance the
. Statement
of Financial 4.3 Prepare/ summarize audit observations and propose PS, Col 106-108
Performanc adjusting entries where appropriate.
e.

AP - PS 5