EPUREICOF THE PLALAPPINES COMMISSION ON AUDIT REGIONAL OFFICE NO. XI NATIONAL GOVERNMENT SECTOR CLUSTER 8 — AGRICULTURE AND ENVIRONMENT CP. Garcia Highway, Buhangin, Davao City Office of the Auditor — Audit Team No. RI1-33 AUDIT OBSERVATION MEMORANDUM (AOM) AOM No. December i DENK - PENRO RXI-4 MR. ALBERTO N. BANDIOLA PENR Officer j 2IGOS, DAVAG DEL SUR Provincial Environment & Natural Resources Office Ben UNIT Mabini Supethighway, Aplaya a = Digos City, Davao del Sur Re un ; O Attention: MARIFE E. ABAYRATE —— OIC ~ Chief, Management TIME SJUVY C. HOFILENA, OIC — CENR Officer, CENRO Davao City We have examined the cash and cash accounts of the Credit Officer ! of CENRO Davao City for the period covering September 23, 2020 to September 8, 2022 and observed the following Collections accumulating to P10,000.00 and above were not deposited within the next banking day, thus, exposing the funds to possible loss due to theft and/or misappropriation. 1. Section 21 of the Manual on New Goverment Accounting Standards (MNGAS) for NGAS requires that Al Collecting Officers shall deposit intact all thetr collections, as well as collections turned over to them by sub-collectors tellers, with AGDB daily or not later than the next bank day. They shall record all depostis made in the Cash Receipts Record. 2. On September 8, 2022, the Audit Team conducted a cash count on the Credit Officer | of CENRO Davao City covering the period September 23, 2020 to September 8, 2022 3. Review of the frequency of deposits revealed collections were not deposited daily or on the next banking day, with amounts ranging from 10,930.00 to P40,350,582.60. The delays in deposits ranged from 1 to 6 days, as summarized in the table below (Details in Annex A): OM No, 224007 Page 1 of 3 PENRO Davao del Surcal [ No. of times: ['No. of days delayed | Amount Involved 1 2103 14,687.00 180,680.55 I i 45,636.00, [December 2020__| Stes 7,400.00 - 40,350,582 60 _ anvary 2021 I Tto6 13,976.00 - 761,585.00 [Februan 2021 | 1103 10,930.00- 444.214.76 | March 2021 to 2 15,806 00 — 2,137,945 00 [apni 2001 102 11,293.00~ 8,927,729.78 | May 2021 1102 | 94502.27 —4554.854.00 | June 2021 102 [11,315 00— 27,886.00) uly Tto3 | 12,440.08 ~ 24.46.00 | ‘August 2021 Ttod | 103,033.27 —1,546,895.99 September 2021 Vt02 14,154.00 101,008 27 October 2021 1103 11,032.00 -2.777,393.31 1103 45,370.70 ~ 2,348,097 67 1103 92.997 27 ~ 4.961, 180.00 1106 | 759,425.00 — 14,356,108.98 3105 | 92,697.27 — 200,262.85, ik 1 9554727 | Apnl 2022 | | (August 2022 ‘The Accountable Officer (AO) explained that she refrains from traveling outside the office due to her vertigo attack, hence the task of depositing the collections was assigned to her alternate, However, the alternate Collecting Officer has to perform the duties of her other designations as Assistant Records Officer and Administrative Officer, resulting in the delays of deposits of collections. ‘The delays in the deposit of collections is not only contrary to the pravisions of the MNGAS but also exposes government funds to possible misuse and losses. ‘We recommend that Management requires the Accountable Officer of CENRO Davao City to deposit the collections daily and intact in consonance with the provisions of MNGAS and to preclude exposure of government funds to possible misuse or losses. We also recommend that Management assess the physical condition of the AO if she is fit to discharge her duties and responsibilities, otherwise consider designating other personnel to do the cashiering work. May we have your comment on the foregoing audit observations within fifteen (15) llendar days from receipt hereof, AOM No, 22-007 Page 2 of 3 PENRO Davao del SurREYNA B. Statl/ Auditor 1V Audit Team Leader g abrir vo FLOREEN MARIE 0. VERDAD ‘State Auditor V Regional Supervising Auditor PROOF OF RECEIPT OF AOM: AOM No. 22407 Page 3 of 3 PENRO Davao de! Sur