REGIONAL OFFICE NO.

I
NGS CLUSTER 9- SUCs and Other NGS SAAs
PROVINCIAL SATELLITE AUDITING OFFICE
Govantes Dike, Bantay, Ilocos Sur

Office of the Auditor- Team R1-03

University of Northern Philippines, Ilocos Sur Polytechnic State College

AOM No.: 23-11

Date : August 25, 2023

AUDIT OBSERVATION MEMORANDUM (AOM)

For: Dr. DANILO B. BOSE

Officer-in-Charge
Office of the President
Ilocos Sur Polytechnic State College – Main Campus
Candon City, Ilocos Sur

Attention: KRIZANNE I. LANUZA, CPA

Accountant III

Dr. RODOLFO C. MORENO

BAC Chairman

We have audited the payments of various procurements of infrastructure projects and

goods for the period January to May 2023, and observed the following:

Four infrastructure projects and one procurement of goods made through Public Bidding
with contract amounts aggregating ₱14,033,290.03 were not subjected to contract review
due to non-submission of copies of perfected contracts including its supporting documents
within five working days from execution thereof incurring delays ranging between 173 and
186 working days, which was not in accord with Section 3.1.1 of COA Circular No. 2009-
001, precluding the Audit Team from performing systematic review and evaluation of the
auditorial, legal and technical aspects of the contract which affected the timely rendering of
relevant audit results.

Section 3.1.1 of COA Circular No. 2009-001 dated February 12, 2009 provides:

Within five (5) working days from the execution of a contract by the government
or any of its subdivisions, agencies or instrumentalities, including government-
owned and controlled corporations and their subsidiaries, a copy of said contract
and each of all the documents forming part thereof by reference or incorporation
shall be furnished to the Auditor of the agency concerned. In case of agencies
audited on an engagement basis, submission of a copy of the contract and its
supporting documents shall be to the Auditor of the mother agency or parent
company, as the case may be.

In the audit of transactions for the period January 1 to May 15, 2023, it was noted that
payments for four infrastructure projects and one procurement of goods procured through Public
Bidding with contract cost totalling ₱14,033,290.30 were made. However, copies of perfected
contracts including its supporting documents were not submitted to the Audit Team within five
working days from the execution thereof, incurring delays ranging between 173 and 186 working
days, which is not in consonance with the aforementioned Circular.

AOM No. 23-11

Page 1 of 2
 Schedule of submission of the four procurement contracts is as follows:

Procurement Project (Public Contract Five (5) Date of Incurre Contract

Bidding) Signing Working Days Submission d Days Amount (₱)
(WD) from to the Audit of Delay
Contract Team (As of
Signing Writing)
Infrastructure Projects
1.) Construction, Repair and Nov. 24, 2022 Dec. 1, 2022 Aug. 18, 2023 173 WD 1,937,001.05
Maintenance of
Infrastructure Projects (Lot
1 – Construction of Water,
Sanitation and Hygiene
(WASH) Area)
2.) Construction, Repair and Nov. 24, 2022 Dec. 1, 2022 Aug. 18, 2023 173 WD 3,877,346.50
Maintenance of
Infrastructure Projects (Lot
2 – Land Improvement)
3.) Construction of Two- Nov. 24, 2022 Dec. 1, 2022 Aug. 25, 2023 177 WD 1,131,943.50
Storey Research and
Dev’t. Extension and
Training Center (Savings)
4.) Construction of Three- Nov. 3, 2022 Nov. 10, 2022 Not yet 186 WD 1,086,999.25
Storey Multi-Purpose submitted
Building (Food Court,
Hostel, Conference,
Theatre) (Savings)
Goods
1.) Procurement of Steno Dec. 1, 2022 Dec. 9, 2022 Aug. 25, 2023 173 WD 6,000,000.00
Machines
Total 14,033,290.30
*Saturdays, Sundays and Holidays were not included in the counting of days delayed.

Non-submission of these contracts precluded the Audit Team from conducting auditorial
and technical review and initial evaluation of the same particularly on the compliance on
procurement laws and the completeness of documentary requirements of the contract to promptly
detect/correct possible deficiencies. Consequently, corrective measures, if any, were not
communicated to the management on time.

We recommend that Management instruct the BAC Chairman and BAC Secretariat
to immediately submit to the Audit Team the remaining unsubmitted procurement
contracts, as indicated in the table above, including its supporting documents, in order to
facilitate the auditorial review of such. Henceforth, strictly adhere to Section 3.1.1 of COA
Circular No. 2009-01.

May we have your comments on the foregoing audit observations within fifteen (15)
calendar days from receipt hereof.

JANETTE G. YAGO
Audit Team Leader

BERMELY C. RAMOS
Supervising Auditor

Proof of Receipt of AOM No. 23-11:

Dr. DANILO B. BOSE

Date: ______________________

KRIZANNE I. LANUZA, CPA

Date: ______________________

Dr. RODOLFO C. MORENO

Date: ______________________
AOM No. 23-11
Page 2 of 2