EXECUTIVE SUMMARY

A. Introduction

The Presidential Electoral Tribunal (PET) was established on June 21, 1957,
through Republic Act (RA) No. 1793. Its mandate is to act as the sole judge of all
contests relating to the election, returns, and qualifications of the President and the
Vice-President pursuant to the Act and Article VII, Section 4 of the 1987
Constitution. On April 18, 1992, the Tribunal adopted and promulgated the Rules
governing its proceedings in accordance with the same provision of the
Constitution.

The PET is presently presided by Chief Justice Alexander G. Gesmundo of the

Supreme Court of the Philippines (SCP), as Chairman, with the 14 Associate
Justices, as Members, namely:

1. Hon. Marvic Mario Victor F. Leonen 8. Hon. Mario V. Lopez

2. Hon. Alfredo Benjamin S. Caguioa
3. Hon. Estela M. Perlas-Bernabe
4. Hon. Rosmari D. Carandang
5. Hon. Amy C. Lazaro-Javier
6. Hon. Henri Jean-Paul B. Inting
7. Hon. Rodil V. Zalameda
9. Hon. Ramon Paul L. Hernando
10. Hon. Samuel H. Gaerlan
11. Hon. Ricardo D. Rosario
12. Hon. Jhosep Y. Lopez
13. Hon. Japar B. Dimaampao
14. Hon. Jose Midas P. Marquez

During the year, former Chairperson Chief Justice Diosdado M. Peralta and former
Associate Justice Edgardo L. Delos Santos have retired as Chairperson and Member
on March 26, 2021 and June 29, 2021, respectively.

The PET activities include the continuing research, study, and discussion of new
approaches or amendments of its current rules to ensure a simpler, inexpensive and
expeditious procedure for conducting the processes of collecting ballot boxes,
revision of ballots, reception of evidence, photocopying and technical examinations
of contested ballots, and other election documents and exhibits.

The PET has a total personnel complement of 151 as of December 31, 2021, of
which two have permanent status while 67 are coterminous. The unfilled positions
totaled 82.

B. Financial Highlights

The comparative financial condition, and sources and application of funds of the
PET for Calendar Years (CYs) 2021 and 2020 are as follows:

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 2020 Increase/
Particulars 2021
(Restated) (Decrease)
A. Financial Condition
Financial Position
Assets P 200,610,849.91 P 127,540,748.57 P 73,070,101.34
Liabilities 40,571,180.80 39,466,214.88 1,104,965.92
Net Assets/ Equity 160,039,669.11 88,074,533.69 71,965,135.42
Financial Performance
Income 3,929.50 6,225.07 (2,295.57)
Expenses 85,199,211.21 114,167,918.20 (28,968,706.99)
B. Sources and Application of Funds
Appropriation 162,952,388.48 154,430,539.33 8,521,849.15
Allotments Received
Current 160,064,360.00 151,832,657.00 8,231,703.00
Continuing 2,888,028.48 2,597,882.33 290,146.15
162,952,388.48 154,430,539.33 8,521,849.15
Obligations Incurred
Current 160,064,359.78 151,542,510.85 (151,542,510.85)
Continuing 123,606.77 _________0.00 0.00
160,187,966.55 151,542,510.85 8,645,455.70
Unexpended Allotments P 2,764,421.93 P 2,888,028.48 P (2,888,028.48)

The details of appropriation, allotments, obligations, disbursements, and balances

above are presented in Annex A of this report.

C. Scope and Objectives of the Audit

The audit was focused on the PET’s financial accounts and operations for CY 2021.
The audit aimed to: a) verify the level of assurance that may be placed on
Management’s assertions on the financial statements; b) recommend agency’s
improvement opportunities; c) determine the propriety of transactions as well as the
extent of compliance with pertinent laws, rules and regulations; and d) determine
the extent of implementation of prior year’s audit recommendations. Moreover,
audit was conducted in accordance with the International Standards of Supreme
Audit Institutions (ISSAIs).

D. Independent Auditor’s Report on the Financial Statements

We rendered an unqualified opinion on the fairness of presentation of the PET’s

financial statements for CY 2021.

D. Significant Audit Observations and Recommendations

1. The existence of Due to Officers and Employees account with an outstanding

balance of P0.103 million as at December 31, 2021 cannot be determined due to
absence of Subsidiary Ledgers (SL) to support the General Ledger account
balance, thus, rendering the account doubtful. (Observation No.2)

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 We recommended and Management agreed to require the Chief Accountant to
prepare and maintain SL for the account to establish validity and existence of
the account.

2. Unserviceable properties with carrying value of P0.254 million as at December

31, 2021 recorded under the Other Assets account remain undisposed, contrary
to Section 79 of Presidential Decree No. 1445, thus, depriving the agency of
possible income from the sale of properties; causing further deterioration and
diminution of the asset’s recoverable value. (Observation No. 3)

We recommended and Management agreed to require the Property Division to:

a) prepare, update the IIRUP and thereafter, submit the same to the Audit Team
for verification; and b) facilitate the immediate disposal in accordance with the
provisions of National Budget Circular No. 425.

The foregoing observations and recommendations contained in the Report were

discussed with the Officials of the agency during the exit conference conducted on
March 21, 2022. Management comments were considered in the report, where
appropriate.

E. Status of Audit Suspensions, Disallowances and Charges

There were no audit suspensions, disallowances and charges issued by the Audit
Team as of December 31, 2021.

F. Status of Implementation of Prior Year’s Audit Recommendations

The lone audit recommendation embodied in the prior year’s Annual Audit Report
(AAR) on the audit of the PET was fully implemented as of year-end.

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