Provincial Government of Agusan del Sur
STATUS OF IMPLEMENTATION
Refere
Audit Observations
nce
2 Various book reconciling items with a net
amount of ₱6,606,926.15 identified in the
previous months remained unadjusted,
thus defeating the purpose of the
preparation of the Bank Reconciliation
Statements.
3 Petty cash fund was not immediately
replenished when disbursements
reached at least 75%, or as the need
requires contrary to COA Circular No. 97-
002 dated February 10, 1997.
4 The existence and validity of Inventory
accounts totaling ₱950,091,573.03 as of
year-end could not be ascertained due to
(a) failure to conduct complete physical
count of all inventories; (b) unrecorded
consumption of supplies and materials
due to non-submission of Summary of
Supplies and Materials Issued (SSMI); (c)
inconsistent recognition of inventory
accounts; and (d) failure to reconcile the
records between the Accounting Office
and the General Services Office with a
variance of ₱937,341,881.86, contrary to
Sections 51, 114, 121 and 124 of the
Audit Recommendations
We recommend that the
Management require the
PAccO to immediately
adjust the identified book
reconciling items to ensure
that correct cash balances
are presented in the
Financial Statements.
We recommend that
Management require the
accountable officers to
replenish the petty cash
fund when disbursements
reach 75% or as the need
requires; and augment the
petty cash fund sufficient
to cover petty expenses of
PGAS Hospitals.
We recommend that the PACCO
Management strictly adhere PGSO
to the provisions provided
in Section 51, 114 and 121
of the Manual on the NGAS
for LGUs related to the
proper recording and
reporting of Inventories.
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COA Audit Observations and Recommendations
For the Calendar Year 2021
As of July 31, 2023
Person/
Status of Reasons for Partial/Delay/Non-
Dept. Action Taken/ Action to be taken
Implementation Implementation. If Applicable
Responsible
PACCO COA AAR 2022 – COA AAR 2022 – SPYAR: Update as of 7/31/2023:
SPYAR: Reconciling items in the Trust Fund
Partially implemented books remained unadjusted. This is
reiterated in 2022 AAR.
Update as of 7/31/2023:
PTO COA AAR 2022 – COA AAR 2022 – SPYAR: Update as of 7/31/2023:
Petty Cash SPYAR: My knowledge of the Petty Cash I should probably look for easy ways to manage and
Custodians Not implemented Fund's policies, procedures, and keep an eye on our cash flow so that I can update the
management is lacking. I've only had fund balance and be informed when it is time to
it for a little over two months, and I'll replenish or when it reaches at least 75%. We need to
admit that I'm still learning and establish petty cash policies and procedures in our
seeking for ways to process it more institution to provide us with guidance.
quickly. I also oversee the pharmacy
department, so I have tons of reports
and paperwork to take care of. The
only time I can process petty cash is
when I have free time.
COA AAR 2022 – This is reiterated in 2022 AAR. Update as of 7/31/2023:
SPYAR:
Partially Implemented
Update as of 7/31/2023:
 Person/
Refere Status of Reasons for Partial/Delay/Non-
Audit Observations Audit Recommendations Dept. Action Taken/ Action to be taken
nce Implementation Implementation. If Applicable
Responsible

Manual on the New Government

Accounting System (NGAS) Volume I for
Local Government Units (LGUs), thus
affecting the accuracy and reliability of
inventory and expense accounts reported
in the Financial Statements.
5 The existence, accuracy and correctness We recommend that the PACCO COA AAR 2022 – This is reiterated in 2022 AAR. Update as of 7/31/2023:
of the Property, Plant and Equipment management complete the PGSO SPYAR:
(PPE) account of the Province of Agusan reconciliation of the Partially Implemented
del Sur amounting to P9,344,073,029.57 RPCPPE with the
(at cost) as of December 31, 2021 accounting office records, Update as of 7/31/2023:
remained uncertain due to the (a) direct the PACCO to
unrecorded difference of prepare and maintain PPE
P544,013,502.33 between the ledger cards and avail one-
accounting and property records; (b) non- time cleansing of non-
maintenance of the PPE ledger cards by existing/missing PPE items
the Provincial Accounting Office; and (c) granted to government
failure to avail the disposition of non- agencies to ensure that
existing/missing PPE items for one-time reported PPE balances are
cleansing of PPE account balances, verifiable as to existence,
contrary to Sections 114 and 120, condition and
Volume I, of the Manual on New accountability.
Government Accounting System for Local
Government Units, Item IV of Section V We also recommended that
of COA Circular No. 180-124 and COA the management establish
Circular No. 2020-006. a system in the PGSO that
can generate reports and
records in soft copy.
6 The province did not adequately observe We recommend that PAccO COA AAR 2022 – This is reiterated in 2022 AAR. Update as of 7/31/2023:
the rules and regulations on the granting, Management strictly SPYAR:
utilization and liquidation of cash comply with the rules and Partially implemented
advances as provided for in Section 89 of regulations provided in the
Presidential Decree (PD) 1445 and COA PD 1445 and the Update as of 7/31/2023:
Circular Nos. 97-002 and 2012-001, thus abovementioned COA
long outstanding advances to officers and Circulars, follow-up the
employees totaling ₱16,446,959.76 demands issued to the
remained unliquidated as of December accountable officers
31, 2021. including those who are
not connected with PGAS
to immediately liquidate
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Refere
Audit Observations
nce
8 The Due to National Government
Agencies (NGAs) account as of
December 31, 2021 included long
outstanding and accounts with insufficient
information of ₱13,715,672.26 and
₱11,331,790.40, respectively, contrary to
Section 4.6 of COA Circular No. 94-013
and Presidential Decree (PD) 1445,
thereby affecting the proper utilization of
funds and the efficiency and
effectiveness of the agency’s course of
action.
9 The Inter-Agency Payable (Due to NGAs)
account of the Province of Agusan del
Sur (PGAS) totaling ₱101,519,341.47 as
of December 31, 2021 was unreliable due
to a net variance of ₱7,841,555.88
between the book balance and the
confirmed balance, in violation to the fair
presentation requirement per
International Public Sector Accounting
Standards (IPSAS).
10 Long outstanding fund transfers to Non-
Government Organizations/People’s
Organizations (NGOs/POs) totaling
₱15,906,555.49 remained unliquidated
as of December 31, 2021 in violation of
Section 5.4 of COA Circular No. 2007-
001 dated October 25, 2007, thus casting
doubt on the utilization of funds and
validity of the projects or programs.
11 The Province of Agusan del Sur did not
Person/
Status of Reasons for Partial/Delay/Non-
Audit Recommendations Dept. Action Taken/ Action to be taken
Implementation Implementation. If Applicable
Responsible
the remaining outstanding
cash advances, and in
case of non-compliance,
find any legal remedies to
compel the
liquidation/settlement of
cash advances.
We recommend that the PAccO COA AAR 2022 – This is reiterated in 2022 AAR. Update as of 7/31/2023:
Management expedite the SPYAR:
utilization and liquidation of Partially implemented
the fund transfers and exert
extra efforts in the tracing Update as of 7/31/2023:
of the carried over amounts
to determine the necessary
procedures in minimizing its
long outstanding Due to
NGAs accounts.
We recommend that the PAccO COA AAR 2022 – COA AAR 2022 – SPYAR: Update as of 7/31/2023:
Management cause the SPYAR: Some balances are carried forward
immediate reconciliation of Partially implemented in the books from 2011 with no
the fund transfers from complete audit trail and data.
NGAs for appropriate Update as of 7/31/2023:
adjustment in the books
and regularly coordinate
with the source agencies
to avoid any discrepancies
in the future.
We recommend that the PAccO COA AAR 2022 – This is reiterated in 2022 AAR. Update as of 7/31/2023:
Management strongly SPYAR:
enforce the submission of Partially implemented
the liquidation reports by
the NGOs/POs concerned Update as of 7/31/2023:
and ensure the submission
of complete and relevant
documents in the request
for write-off.
We recommend that the PPDO COA AAR 2022 – COA AAR 2022 – SPYAR: Update as of 7/31/2023:
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 Person/
Refere Status of Reasons for Partial/Delay/Non-
Audit Observations Audit Recommendations Dept. Action Taken/ Action to be taken
nce Implementation Implementation. If Applicable
Responsible

adequately observe the rules and management expedite the PAccO SPYAR: It is the policy of the PGAS that the
regulations on the release and transfer of liquidation of prior years’ Partially Implemented recipient LGUs liquidated first before
funds to LGUs (Implementing Agencies) fund transfers and ensure another fund transfer is granted,
as provided for in Item 3.1.1 of COA that no additional fund Update as of 7/31/2023: however, some balances are carried
Circular No. 2012-001 resulting in the transfers will be made to forward from 1998 and these are not
accumulation of outstanding Due from the LGUs with unliquidated included in the said policy pending
LGUs balance as of December 31, 2021 balances. confirmation.
amounting to P97,372,905.80.
12 The agency’s request to write-off its We recommend that the PACCO COA AAR 2022 – COA AAR 2022 – SPYAR: Update as of 7/31/2023:
dormant unliquidated Due from LGU management ensure SPYAR: The management is on the process
accounts totaling P6,345,969.91 could completeness of Not Implemented of gathering the required supporting
not be processed and granted due to documents and documents needed for the request
noncompliance on the requirements set attachments before Update as of 7/31/2023: for write-off of the dormant
forth in COA Circular No. 2016-005. submitting the write-off unliquidated Due from LGUs
request and strictly comply account.
with the rules and
regulations provided in the
COA Circular.
13 Transactions amounting to ₱401,468.60 We recommend that PBO COA AAR 2022 – This is reiterated in 2022 AAR. Update as of 7/31/2023:
were charged to 5% Local Disaster Risk Management stop charging PDRRMO SPYAR:
Reduction and Management Fund not in ineligible expenses to 5% PAccO Not Implemented
conformity to the provisions of Sections LDRRM and follow strictly
5.3 and 5.5.1 of the Joint Memorandum the regulation in the Update as of 7/31/2023:
Circular No. 2013-1 of DBM and DILG utilization of the 5% Local
dated March 25, 2013, thus deviating the Disaster Risk Reduction
purpose of which fund was created. and Management Fund as
provided under Section 5.1
of the Joint Memorandum
Circular No. 2013-1 of DBM
and DILG dated March 25,
2013.
14 Technical review and evaluation of We recommend that the PEO COA AAR 2022 – COA AAR 2022 – SPYAR: Update as of 7/31/2023:
Infrastructure Projects undertaken by the management require the SPYAR: Excess on one (1) project will be
PGAS with an aggregate cost of contractor/s to settle the Partially implemented deducted on the final billing of the
P166,572,227.83 disclosed that some deficiencies noted to contractor which is still to be
projects were deemed excessive by compensate the Update as of 7/31/2023: processed.
P2,247,946.13 and were not executed in government from the
accordance with the provisions stipulated contractors’ failure to
in the contract agreement, contrary to observe the standards
COA Circular No. 2012-003 and COA required in the contract
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 Person/
Refere Status of Reasons for Partial/Delay/Non-
Audit Observations Audit Recommendations Dept. Action Taken/ Action to be taken
nce Implementation Implementation. If Applicable
Responsible

Resolution No. 2015-014. agreements.

18 The 20% Development Fund was not We recommend that PPDO COA AAR 2022 – This is reiterated in the 2022 AAR. Update as of 7/31/2023:
optimally utilized wherein some projects, Management ensure the PEO SPYAR:
programs, and activities remained not optimum utilization of the Partially implemented
completed or unimplemented as at year- 20% Development Fund by
end, thus delaying the enjoyment of the full implementation of Update as of 7/31/2023:
benefits that intended beneficiaries could programmed development
be derived from these projects and PPAs during the year and
programs. monitor the implementation
thereof in order to attain
the desired benefits as
envisioned in Joint
Memorandum Circular No.
2017-1 of DILG and DBM.

Agency sign-off:

SANTIAGO B. CANE, JR. _______________

Governor Date

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