RFB CONSTRUCTION CORPORATION

>General Engineering<>PCAB No.: 41742<>General Building<

Office of the Department of Audit

DEPARTMENT’S ACCOMPLISHMENTS / UPDATES

FROM MARCH 01 – 31, 2023

This report provides information on the audit activities and accomplishments for the month of
March 1-31, 2023.

DAILY AUDIT ACTIVITIES

 Checked and reviewed the payroll after cut-off dates (every 7 th and 22nd day of the month).
 Checked and reviewed vouchers, PCF liquidations, Sub-con ledger accounts, Accounts Payables,
Funding Liquidation and other tasks assigned by the top management.
DEPARTMENT’S ACCOMPLISHMENTS / UPDATES
FROM THE MONTH OF March 01 – 31, 2023

[1]
 RFB CONSTRUCTION CORPORATION
>General Engineering<>PCAB No.: 41742<>General Building<

Office of the Department of Audit

This report provides information on the audit activities and accomplishments for the month of
March 1-31, 2023.

DAILY AUDIT ACTIVITIES

 Checked and reviewed the payroll after cut-off dates (every 7 th and 22nd day of the month).
 Checked and reviewed vouchers, PCF liquidations, Sub-con ledger accounts, Accounts Payables,
Funding Liquidation and other tasks assigned by the top management.

SUMMARY OF CHECK VOUCHERS FOR THE

MONTH OF MARCH 2023

Number of Check Vouchers

RFBCC 301
RBI 233
RFB REALTY 18
RFBCC-RBI ADMIN 24
TOTAL 576

AUDIT FINDINGS & INVESTIGATIONS

Status Audit Findings and Investigations on the submitted PCF Liquidations:

AUDIT FINDINGS AND INVESTIGATIONS STATUS

01 Disallowance of P 7,143.00 has been approved by
VP Operations on October 11, 2022 for the late
submission of the Petty Cash liquidation of Engr.
Jerson Morales covering the period from March 9
to July 30, 2022 of Project ID # 21KB0191
(Maramag, B Bukidnon). A copy of disallowance
was forwarded to the concerned person and to
the office of operations, finance, accounting, and
HR departments for their perusal and
information.
An inter-office memo dated December 22, 2022
where all PCF liquidations for the year 2022
shall be closed before December 29, 2022.
In connection to this, a letter from the
accounting staff dated January 10, 2022,
pertaining to the unliquidated petty cash of
Engr. Jerson Morales in the total amount of PhP
30,000.00 (composed of a P 7,143.00
disallowance and the balance of P 22,857.00).

As of this writing, there has been no feedback

or letter from Engr. Jerson Morales as pertains
to the said disallowance, as also confirmed by
the in-charge finance staff. OPEN

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 RFB CONSTRUCTION CORPORATION
>General Engineering<>PCAB No.: 41742<>General Building<
Office of the Department of Audit
AUDIT FINDINGS AND INVESTIGATIONS
02 Conducted a review on the liquidation of the
payment for material quality testing of the four
projects, namely, Project IDs 22KB099,
22KB0177, 22KB0100, and 22KB0176.
A letter pertaining to this matter, dated
November 28, 2022, was sent to Engr. Ralf
Saloma for his explanation/justification on
attaching temporary receipts and the lack of ORs
in his liquidations.
On December 3, 2022, Engr. Saloma forwarded a
letter to this office as his response to the said
findings. The letter was considered, however,
there’s a pending compliance on the submission
of all ORs.
03 Conducted a review and evaluation on the late
submission of petty cash liquidation by Ms.
Catherine Sajonia, covering the period from
August 8, 2022 to January 30, 2023, and a
request for refund from July 6, 2022 to October 6,
2022.
An explanation letter from Ms. Sajonia, dated
February 1, 2023, was received by this office on
February 6, 2023, explaining the reason for the
delayed submission was because she executes
numerous positions and tasks and has many
responsibilities to work out that require her
attention due to deadlines as well.
STATUS
Therefore, the project ID # 21KB0191 with a
total PCF amount of P 50,000.00 for the year
2022 has still not been closed. The said docket
of liquidation is still with the in-charge finance
staff.
An explanation letter from Engr. Saloma dated
January 6, 2023, and received by this office on
February 10, 2023, pertaining to the changes in
the DPWH testing price list, wherein he
borrowed funds from other projects due to the
urgency of payment and in order to fill the
lacking balances.
Subsequently, upon thorough checking and
review of ALL liquidations on material quality
testing by Engr. Ralf Saloma, it was found out
that there were long overdue unliquidated cash
advances not only in Project IDs 22KB099,
22KB0177, 22KB0100, and 22KB0176 but also
in Project IDs 22KO00314, 22K00362, and
22K00340. Thus, a letter dated February 20,
2023, was sent to Engr. Saloma to settle these
obligations and request his immediate action.
On February 24, 2023, a reply letter from Engr.
Saloma was sent to this office on the same day,
requesting an audit site visit to properly explain
and elaborate more on the reasons of the said
findings. Annotating this, an unannounced
audit site visit will be conducted and scheduled
for April 2023. OPEN
The penalty for the late submission of petty cash
liquidation was waived by the management, and
the letter of justification was CONSIDERED.
Moreover, a letter of stern warning dated March
21, 2023, was sent to Ms. Sajonia, advising her
to strictly follow the policies and guidelines of
the company and that immediate liquidation
should be performed upon the occurrence of
expenses to avoid delay, for there will be no
more consideration to be given as per a
directive from the Office of the VP for
Operations/COO. CLOSED
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 RFB CONSTRUCTION CORPORATION
>General Engineering<>PCAB No.: 41742<>General Building<

Office of the Department of Audit

AUDIT FINDINGS AND INVESTIGATIONS STATUS

Hence, a letter of recommendation was

submitted to the office of the VP for
Operations/COO for the approval of a penalty of
P 5,000.00 as it would not suffice for the neglect
she committed knowing that said liquidation was
already beyond the regulatory period.

04 Conducted a review and evaluation on the late
submission of cash advance liquidation on survey
allowance by Engr. Daniel Benson Pioquinto,
covering the period from November 27, 2022 to
January 30, 2023. Moreover, an explanation
letter dated February 3, 2023 was also attached
to the said liquidation, explaining the reason for
the delayed submission, and was received by this
office on February 10, 2023.
The letter of justification was CONSIDERED by
this office. However, a letter of stern warning
dated March 28, 2023, was sent to Engr.
Pioquinto, advising him to strictly follow the
policies and guidelines of the company and that
immediate liquidation should be performed upon
the occurrence of expenses to avoid delay, for
there will be no more consideration to be given as
per a directive from the Office of the VP for
Operations/COO. CLOSED

WAY FORWARD

PLANNED ACTIVITIES OF THE DEPARTMENT OF AUDIT

LOGISTICS /
SCHEDULED AUDIT STATUS /
OBJECTIVE/S ESTIMATED
DATE ACTIVITIES REMARKS
BUDGET
TBS Orientation / To orient and/or re-orient NONE. Orientation will be
(To be scheduled) Re-orientation accountable officers and done through any
on the Policies employees on the PCF policy social media
and Guidelines in order to mitigate the risk platforms.
of mishandling PCF and any
of Handling
potential problems.
Petty Cash
Fund via
virtual
meeting.

TBS Tax Seminar To enlighten the Speaker’s A planned activity of

(To be scheduled) and Audit accounting, finance and Honorarium the department for
Procedures auditing staff on the tax the professional
= P 10,000.00
and concept and audit development of the
procedures and techniques. mentioned staff. The
Techniques Snacks/Meals venue will be the
and proper Main Office
P 150 x 2 meals
documentation Conference Room,
(snack and lunch) x 20
to be where there’s an

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 RFB CONSTRUCTION CORPORATION
>General Engineering<>PCAB No.: 41742<>General Building<

Office of the Department of Audit

LOGISTICS /
SCHEDULED AUDIT STATUS /
OBJECTIVE/S ESTIMATED
DATE ACTIVITIES REMARKS
BUDGET
participated to pax = P 6,000.00 invited speaker who
by all is an expert on tax
accounting, TOTAL ESTIMATED concepts and
auditing procedures.
finance and BUDGET = P
auditing staff. 16,000.00

TBS Audit To develop high-performing Materials Needed =

(To be scheduled) Department audit personnel who are P 1,000.00
Team Building highly motivated to perform
their tasks effectively and Honorarium /
efficiently. It also helps the
Token for Speaker
said audit personnel to
and with
improve communication
skills, strengthen Facilitators = P
relationships among co- 3,000.00
auditors, improve overall
effectiveness and morale, Snacks and Lunch =
enhance group and P 5,000.00
individual decision-making
skills, stress ‘team play', and Cottage Rental = P
have Fun. 1,000.00

TOTAL ESTIMATED
BUDGET = P
10,000.00

Prepared by:

JESSAH MAE B JUMAMOY

Audit Staff

Reviewed by: Noted by:

MR. REMIGIO C LUNA, JR MS. MERIAN B. AMOGUIS

AVP – Audit VP – Audit

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