Republic of the Philippines

COMMISSION ON AUDIT
Regional Office No. IV-A
Audit Team R4A-08,Audit Group NGS-3-B
Commonwealth Avenue, Quezon City

AOM No.:2020-001(2019)
Date : January 16, 2020

AUDIT OBSERVATION MEMORANDUM (AOM)

For: Director MARIO G. LIPANA

OIC-Regional Director
COA Regional Office No. IV-A
Quezon City

Attention: Consolacion J. San Luis

OIC-Service Chief, ATFS

Delvee B. Gaasis
Regional Accountant

We have audited the transactions for CY 2019 and observed the following
deficiency:

Other Receivables account balance of P77,431.14 has been dormant for four (4)
years to thirty one (31) years contrary to COA Circular No. 2016-005 dated
December 19, 2016 and COA Circular No. 97-001 dated February 5, 1997, thus, the
said account balance unreliable.

COA Circular No. 2016-005 dated December 19, 2016 provides that the Auditee
should file the appropriate request for write-off for those accounts that had been dormant.

Likewise, Section III.1 of COA Circular No. 97-001 dated February 5, 1997
described Dormant Account as individual or group of accounts that remained non-
moving for more than five years. Further, Section III.B.1 of the same Circular requires
that dormant accounts be reviewed and analyzed. Section III.A.4 likewise provides that
the Chief Accountant and other officials concerned determine the proper disposition of
the dormant accounts.

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 Moreover, Section III.A.10 of the said circular states that if the analysis/review of
the account is not possible due to absence of records and documents, the agency head
concerned shall request authority from the Commission on Audit to write-off the account
balances from the books of accounts supported with the a) list of available records and
extent of validation made on the accounts; and b) certification and reasons as to why the
supporting vouchers/documents could no longer be located.

As of December 31, 2019, the Audit Team noted that the Region’s Other
Receivables account of P77,431. 14 consisting of overpayment of salaries and RATA, tax
deficit, etc. had been dormant for four (4) years to thirty one (31) years, contrary to COA
Circular No. 2016-005 dated December 19, 2016 and COA Circular No. 97-001 dated
February 5, 1997 to wit:
SCHEDULE OF DORMANT OTHER RECEIVABLES

Bill
Name of No. of Years Amount Past
Number/ Date Particulars Remarks
Debtor Outstanding Due
Purpose
Recaido, with
Mauricio 01-02-02 02/28/2001 18 11,994.35 Overpayment request for
of RATA write off
Elculla, Al 02-08-96 02/21/1996 24 13,975.51 Overpayment with
of Salary, request for
PERA & write off
ADCOM-
9/12/95
Perez, 09-13-95 09/07/1995 24 19,919.66 Overpayment with
Theodulo of Salary, request for
PERA & write off
ADCOM- 4-
7/95
Sari, Susan 03-09-93 03/08/1993 25 3,142.85 Overpayment with
of Salary, request for
PERA & write off
ADCOM-2/93
Viernes, 116.00 Overpayment with
Restituto of Salary request for
write off
Total –with 49,148.37
request for
write-off
without
Del Socorro, Tax deficit for
4 2,500.00 request for
Ronelo CY 2014
write off
without
Acedillo, Overpayment
05/08/2014 5 5,000.00 request for
Jose R. of RATA
write off
Rosales, without
Tax deficit for
Wilhelmina 6 2,888.57 request for
CY 2013
C. write off
Retoran, 7/22/2008 11 9,229.20 Overpayment without
Michelle, D. of Salary request for
write off

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 Garcia, 11/30/2006 13 4,575.00 Overpayment without
Dorita M. of RATA request for
write off
Puerto 31 4,090.00 TEV of R.
Princesa Factora & F. without
City Sison 7/19- request for
24/88 write off
Total- 24,192.77
without
request for
write-off
Grand 77,431.14
Total

As can be gleaned in the above table, the amount of P77,431.14 has been dormant
for four (4) to thirty one (31) years and that only the amount of P49,148.37 has been
requested for write-off. Verification of records showed that the said request for write-off
was returned to the OIC Regional Director, COA Region IVA under a letter dated March
22, 2019 requesting submission of documents to support the said request. As of to date,
no updated status report was submitted to the Audit Team.

With the data above the Other Receivables account balance of P77,431.14 is
unreliable.

We recommend that the OIC Regional Director instruct the OIC-Service

Chief, Administrative, Training and Finance Services Section (ATFS) to submit the
necessary documents require in the request for write off. Likewise, exert effort on
the collection on the remaining debtors or if not possible a request to write off the
said other receivables together with the necessary require documents should be
submitted to the Audit Team.

May we have your comments on the foregoing audit observation within five (5)
calendar days upon receipt hereof.

MARIA VICTORIA D. ALBANO

Audit Team Leader

ANASTACIA V. ARGENTE
OIC-Regional Supervising Auditor

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Proof of Receipt of AOM No. 2020-001(2019):

Director Mario G. Lipana

OIC-Regional Director
Date: ______________

Consolacion J. San Luis

OIC-Chief, ATFS
Date: ______________

Ms. Delvee B. Gaasis

Regional Accountant
Date: ________

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