AUDIT PROGRAM

FOR THE PERIOD ______________________

Local Disaster Risk Reduction and Management Fund (LDRRMF)

A. Risks statements:

1. The 5% allocation of the estimated revenues from regular sources for LDRRMF
pursuant to Section 21 of RA 10121 may not be complied;
2. The distribution of the LDRRMF as to 30% Quick Response Fund and 70% for
mitigation and disaster preparedness may not be properly made;
3. The utilization of the 70% allocation of the LDRRMF may not be in accordance with
DILG Memorandum Circular No. 2012-73 dated April 17, 2012;
4. The accounting and reporting guidelines for the LDRRMF as prescribed in COA
Circular No. 2012-002 dated September 12, 2012 and COA Circular No. 2014-002
dated April 15, 2014 may not be properly observed;
5. The documentary requirements in the disbursement of the LDRRMF may not be in
accordance with COA Circular No. 2012-001 dated June 14, 2012;
6. The LDRRMO may not be established and the creation of at least four (4) statutory
DRRM positions in every province, city and municipality may not be implemented;
and
7. The existing rules and regulations on the organization of local disaster
council/groups/committees and provision of funds pursuant to IRR Section 1 and 2 of
RA 10121 may not be followed.

B. Audit assertions:

R- Regularity
C- Completeness
EO- Existence or Occurrence

C. Audit Objectives:

1. To ascertain compliance to the 5% allocation of the estimated revenues from regular

sources for the LDRRMF pursuant to Section 21 of RA 10121;
2. To determine the proper distribution of the LDRRMF as to the 30% Quick Response
Fund and 70% for mitigation and disaster preparedness;
3. To verify the utilization of the 70% allocation in accordance with DILG Memorandum
Circular No. 2012-73 dated April 17, 2012;
4. To ascertain compliance to the accounting and reporting guidelines for the LDRRMF as
prescribed in COA Circular No. 2012-002 dated September 12, 2012 and COA Circular
No. 2014-002 dated April 15, 2014;
5. To ascertain compliance with documentary requirements in accordance with COA
Circular No. 2012-001 dated June 14, 2012;
6. To validate compliance on the establishment of LDRRMO and creation of at least four
(4) statutory DRRM positions in every province, city and municipality;

Customized AP/Proposed AP/LDRRMF Page 1

 7. To validate the compliance with existing rules and regulations on the organization of
local disaster council/groups/committees and provision of funds pursuant to IRR Section
1 and 2 of RA 10121.

D. Sub-objectives, criteria, validation procedures and suggested working papers

List of documents needed:

1. Appropriation Ordinance;
2. Annual Budget;
3. Resolution on the organization of the Local Disaster Council;
4. Disbursement Vouchers and its supporting documents;
5. Monthly and Annual Report on the utilization of the LDRRMF (Annex B);
6. Approved LDRRMF Investment Plan and revised LDRRMFIP relative to the disaster
risk reduction management projects to be implemented.

Audit Sub-objective Audit Activities Audit Suggested Audit Working Paper

 Audit Criteria A
S
S
E
R
T
I
O
N
S
Audit Question Yes No Particulars
of the
answer
1. To ascertain Verify the Annual Does the
compliance to the 5% Budget as to the amount
allocation of the allocation of the 5% for appropriated for
estimated revenues LDRRMF. LDRRMF
from regular sources equal to 5% of
for the LDRRMF Compute the 5% the estimated
pursuant to Section allocation for LDRRMF revenues from
21 of RA 10121; regular sources?
Section 21 of R.A.
10121:

“xxx Not less than 5%

of the estimated
revenue from regular
sources shall be set
aside as the LDRRMF
xxx”

Customized AP/Proposed AP/LDRRMF Page 2

 Budget Review
conducted by DBM for
Provinces and Cities
and by the
Sangguniang
Panlalawigan in cases
of Municipalities

2. To determine the Verify the LDRRMF Did the

proper distribution Investment Plan LDRRMO
of the LDRRMF as to distribution as to the prepare the
the 30% Quick QRF and Mitigation and LDRRMF
Response Fund and disaster preparedness. Investment
70% for mitigation Plan?
and disaster Secure copy of the
preparedness; approved IP by the local Is there proper
disaster risk reduction distribution as to
NDRRMC/DBM/DILG management council. the 30% QRF
JMC No. 2013-1 dated and 70%
March 25, 2013: mitigation fund?

Par. 4.0 “xxx The Is the IP

LDRRMF shall cover the approved by the
30% lump-sum allocation council tasked
for QRF and the 70% to review the
allocation for disaster IP?
prevention and mitigation,
preparedness, response,
rehabilitation and
recovery.”

3. To verify the
Compare the items Are the items
utilization of the 70%
listed the LDRRMF listed in the
allocation in
Investment Plan with the LDRRMF
accordance with
items enumerated under Investment Plan
DILG Memorandum DILG Circular No. in accordance
Circular No. 2012-73 2012-73: with DILG
dated April 17, 2012 1. Early warning Circular No.
and RA 9184; systems, 2012-73?
preparedness
DILG Memorandum equipment and
Circular No. 2012-73 other equipage;
dated April 17, 2012. 2. Prevention and
Mitigation
NDRRMC/DBM/DILG Projects and

Customized AP/Proposed AP/LDRRMF Page 3

JMC No. 2013-1 dated activities;
March 25, 2013: 3. Preparedness
Projects and
Section 5.0 Utilization of Activities;
the LDRRMF 4. Response
Projects and
Activities;
5. Reconstruction
and
Rehabilitation
Projects and
Activities

9.0 of COA Circular No. Verify the disbursement Is the

2012-001: Procurement of vouchers together with procurement of
infrastructure, goods and its supporting documents infrastructure,
services and RA 9184. in relation to the goods and
procurement of services in
infrastructure, goods and compliance with
services under the 70% the provisions of
allocation of the RA 9184?
LDRRMF.
Are the
documentary
requirements
complete
pursuant to 9.0
of COA Circular
No. 2012-001?

Are account
codes proper?

Are amounts
correctly
computed?

Are
disbursements
authorized?

4. To ascertain Verify the disbursement Are the

compliance with vouchers and disbursement
documentary completeness of vouchers and its
requirements in supporting documents in supporting
accordance with accordance with COA documents

Customized AP/Proposed AP/LDRRMF Page 4

 COA Circular No. Circular No. 2012-001. complete?
2012-001 dated June
14, 2012.

5. To ascertain Verify the Registries of Are the

compliance to the the LDRRMF as registries for
accounting and follows: LDRRMF
reporting guidelines maintained?
for the LDRRMF as RAAO – for QRF
prescribed in COA RAAO – for MOOE
Circular No. 2012- RAAO – for CO
002 and COA
Circular No. 2014- Verify the sources of the Are the sources
002. fund whether from: of funds of
a. Agency’s LDRRMF
COA Circular No. 2012- appropriated indicated or
002 budget; identified?
b. Cash Donations
Section 5.1.4: Separate from Local and
Registry of Foreign Sources;
Appropriations, c. In-Kind
Allotments and donations from
Obligations (RAAO) shall local and foreign
be maintained for the sources
LDRRMF
Verify the report on the Are reports
RAAO- for QRF sources and utilization of submitted for
RAAO-for MOOE LDRRMF as to sources: verification?
RAAO-for CO a. Agency’s
Appropriated Budget Are the
Section 5.1.5 : A Report (Annex B)-COA disbursements
on the sources and Circular No. 2012-002; properly
utilization of DRRMF b. Cash Donations from recorded in the
using the format in Annex Local and Foreign registries and in
B shall be prepared and Sources (Annex C) COA the books of
certified correct by the Circular No. 2014-002; accounts?
Local Accountant. The c. In-kind donations
LDRRMO shall submit the from local and foreign
report on or before the sources (Annex N and
15th day at the end of each O) COA Circular No.
month through the 2014-002.
LDRRMC and LDC to the Are unexpended
COA of the LGU. Verify the recording of QRF and
transactions relative to mitigation fund
Annex C(Illustrative the disbursements of the MOOE
Accounting Entries) 70% mitigation fund and transferred to

Customized AP/Proposed AP/LDRRMF Page 5

Annex D (Notes to the FS the transfer of the Trust Fund?
Disclosure) unexpended QRF and
mitigation fund MOOE Is a special
COA Circular No. 2014- to the Trust Fund. account/separate
002 dated April 4, 2014. bank account
IV. Accounting created for this
guidelines purpose?
V. Reporting Guidelines

6. To validate Verify the existence of Is the LDRRMO

compliance on the the LDRRMO and and BDRRMC
establishment of BDRRMC. established?
LDRRMO and
creation of at least
four (4) statutory
DRRM positions in
every province, city
and municipality;

Section 12 of RA 10121
and NDRRMC, DILG,
DBM and CSC JMC No.
2014-1 dated April 4,
2014.

Section 12 of RA 10121

a) There shall be
established
LDRRMO in every
province, city and
municipality, and a
BDRRMC in every
barangay which
shall be
responsible for
setting the
direction,
development,
implementation
and coordination
of disaster risk
management
programs within
their territorial
jurisdiction.

Customized AP/Proposed AP/LDRRMF Page 6

4.0 of JMC Circular No. Verify the creation of the Are the 4
2014-1: Policy Guidelines 4 statutory DRRM statutory DRRM
positions. positions
4.1 Pursuant to Section 12 created?
of RA 10121, the
LDRRMO is considered a
mandatory office, and the
BDRRMC, a mandatory
committee. Each
province, city or
municipality shall
prioritize the
establishment of the office,
whereas, each barangay
shall prioritize the
establishment of the
committee;

4.2 The provincial, city or

municipal DRRM Officer
and the three (3) staff
responsible for
administration and
training, research and
planning, and operations
and warning are
considered mandatory
positions.

4.3 The budgetary

requirements for personal
services, maintenance and
other operating
expenditures, and capital
outlay of the LDRRMO
shall be sourced from the
General Fund of the LGU,
subject to Section 76 of RA
7160.

In accordance with Sec

83 of RA 10352, the
enforcement of Sections
325(a) and 331(b) of RA
7160 shall be waived to

Customized AP/Proposed AP/LDRRMF Page 7

enable the LGUs to fund
the initial year
requirements for the
creation of the minimum
four (4) mandatory
positions at the LDRRMO.

4.4 Other MOOE, and

other CO requirements of
the LDRRMO and
BDRRMC in the
implementation of the
DRRM programs shall be
charged to the LDRRMF
subject to the provisions of
Joint NDRRMC, DBM and
DILG MC No. 2013-1 and
COA Circular No. 2012-
002.

7. To validate the Verify the existence of Is there a

compliance with LDRRMF LDDRMF
existing rules and council/groups/committe council/groups/c
regulations on the es ommittee
organization of local created?
disaster
council/groups/comm
ittees and provision
of funds pursuant to
IRR Rule V, Section
1 and 2 of RA 10121.

Section 1 and 2 of RA
10121

EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

1. To verify the causes
in instances of non-
compliance and make
appropriate audit
recommendations
Analyze the instances of Appropriate working papers
non-compliance to
establish the effects and
develop appropriate
audit recommendations

2. To communicate the Prepare the appropriate Audit Observation Memorandum

results of audit with audit/validation (AOM), if applicable
management document reflecting the
results of the

Customized AP/Proposed AP/LDRRMF Page 8

COA Circular No. 2009- audit/validation and
006 dated September 15, transmit to management
2009 re-Prescribing the
use of the rules and
regulations on the
settlement of accounts.

Prepared by: Reviewed by:

______________________ _______________________
Name and Designation Name and Designation

______________________ _______________________
Date Date

Customized AP/Proposed AP/LDRRMF Page 9