NARRATIVE REPORT

INTRODUCTION

Practicum or On-the-Job-Training (OJT) is one of the requirements for 4th year

college students. It serves as a training ground and an actual work setting for them to

practice, gain knowledge and experience on how the real business world really works,

how to apply what they have learned, and be well prepared in facing their future.

Practicum is an experience that requires the practical application of theory and conceptual

knowledge. It is a method by which students are exposed with different work situation

designed to give students an opportunity to experience and a chance to apply the theories

and computation that they have learned from the school.

OJT is very important to students not only because it teaches them regarding their

chosen career path but also to show students the reality about working. It also allows

those who have no prior experience, to work and learn at the same time. On-the-Job

Training helps the trainee to learn more about his chosen field and practice what he has

learned from the school. It also helps building up the trainee’s competence because when

a student is competent enough then, he will be able to do things effectively. After the

training, the trainee will be able to handle situations properly, he’ll also be able to work

well with everyone, and he’ll have a good teamwork, and know how to socialize well

with his colleagues. OJT enhances the critical thinking skills and discipline of the student

conducting his training in a company.

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A proper Practicum Training will help in the preparation of future professionals

for their future jobs. All of what the students learned in their OJT, even the little things,

can be applied when they are already working. Students will be trained not only

academically but socially as well.

The way they work and communicate with others will not be a problem for them

anymore. It also gives the trainee the chance to immerse himself in his chosen field, and

experience and learn the skills necessary to the industry he is interested in. When

working with experienced staff, one will be able to observe how the job is done properly.

Aside from work experience, On-the-Job training allows the trainee to get

acquainted with the real professional and to meet people having different positions in the

company, either high or low. The trainee will be able to know to adjust to other people’s

personalities and attitudes.

On-the-Job Training requires effort and seriousness. A trainee should take the

OJT seriously as it can be a powerful tool for a person in preparing for the next chapter of

life as a professional. It can possibly be a source recommendation when they take that big

lift from being students to career professionals someday.

We were assigned at Philippine Statistics Authority (PSA) under the Commission

on Audit (COA). There were six of us together with my co- trainees Daryll, Quennie,

Kaye, Shiela and John assigned to report on duty in that office.

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First Month (November 9, 2017)

My 500 hours of practicum started last November 9, 2017. We arrived on the PSA

at lunch time to pass our introductory letter but unfortunately the supervisor isn’t around

so we decided to go back after lunch. When we went back we passed our introductory

letter and Ma’am Nemia, our supervisor, asked us if we could start our duty on that day

and we said yes. It’s my first day and I felt nervous, but thankfully the employees in the

office were all nice and approachable. We were first assigned to find transactions of

Noe’s Builders, RCCR and CGGFR from NEDA VI vouchers. On the next day, Ma’am

Nemia was on a travel leave and I was assigned to encode Erroneous Entries from NEDA

VI Vouchers. I could say what those first two days were great and I felt that we are going

to learn a lot of things here. The next week, when Maa’m Nemia returned from travel,

she assigned me to make a Remittance Working Paper of GSIS, BIR, PAG-IBIG and

PhilHealth from NEDA VI Vouchers.

Second Month (December 2017)

The month of December was quite a busy month at Commission on Audit since

its Christmas season. We furnished the office of Christmas decorations so we could feel

also the essence of Christmas; at the same time we’ve been encoding, verifying working

papers, leave forms and filing documents. Ma’am Nemia also taught us how to wrap gifts

for us to use for our Christmas Party.

Third and Fourth Month (January/ February 2018)

January and February are also busy months but compared to the previous months,

January and February are the busiest because they’re a lot of documents that needs to be
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processed and deadlines to be met. But despite of that, we still had the time to relax like

celebrating a Despidida Party for our Accounting Technology co-OJTs because they were

done with the 250 hours of duty that were required for them. During these months, we

need to record and encode Official travel forms, Request for overtime and leave forms

from different department and offices. We need also to check leave credits of faculties

and staffs and encode them because there are many employees who filed leave of absence

during the month of December and to file academic ranks and updating full-time faculty

member’s Salary Scale. We also checked the Property Cards, RPCPPE, RPCI and Stock

Cards of the Bureau of Treasury. There are a lot of works done during these months but

we’ve managed it.

Last month (March 2- 13, 2015)

In the last two weeks as a trainee at COA- PSA, I felt sad because I’m about to

end and thankful because I’m about to finish this training that I was assigned of. During

We have our farewell party at our last day; it was very emotional and memorable, we are

asked to confess those last two weeks we were given tasks like encode AOM Replies and

print the Payrolls of NEDA VI, PSA RO6 and BTr. What we have learned during our

training and lessons we have gained, also the employees are asked to share what they feel

and what their reactions to us trainees. On our last day, Ma’am Nemia told us to come

back next week for our Ratings and for lunch at the Emilion Japanese & International

Cuisine.
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PURPOSE OF PRACTICUM

The purpose of practicum is to provide community and professional based

learning opportunities to students through exposure to new and challenging field

experiences. Practicum is an academic learning experience in which students are

expected to participate in a seminar and successfully complete written assignments which

will provide students the opportunity to apply knowledge acquired in the classroom with

practical experience from their practicum placement.

It provides a continuing series of practical experiences geared to student’s level of

expertise, which will offer a chance to apply principles, skills and techniques that have

been acquired. It helps students to learn how to assume professional roles in a variety of

practice setting while becoming accustomed to a range of organizational structures,

working relationships and job expectations.

The rewards of practicum placements for students can be numerous. Sometimes

they may go unnoticed and not realized until days, months or even years later. Rewards

may be professional, personal or both. Personal rewards include skill development,

greater awareness of likes and dislikes and more. The most important reward may be life

experience and enjoyment. Helping another person, participating in the community and

sharing with others will intensify the students' life experience. Rewards are reciprocal;

your energy rewards others. A practicum is a mutually beneficial experience. As much as

you learn from the students they learn from you as well.
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PLACE OF WORK

I was assigned at Commission on Audit (COA) of Philippine Statistic Authority.

It is located at 2nd floor, J. Villanueva Building, Iznart Street, Iloilo City. The working

area is quite small but it doesn’t really matter because I can perform my tasks

comfortably and gracefully. We were 9 in the Office which consists of 6 OJTs, Ma’am

Nemia, Ma’am Ayeesha and Sir Alvin.

DESCRIPTION OF THE WORK PERFORMED

The duties I performed as an On-the-Job trainee at Commission on Audit Office

include the following:

 Filing and segregating of all working papers.

 Checking the report of check issued from paid vouchers for post audit

 Checking of Check Issued of PSA, Paid Vouchers from folio 1 to 3,

Check issued of National Economic and Development Authority VI RCI

– NEDA VI, Trial Balance, General Ledger, Schedule of BIR

Remittances

 Checking and verifying of Negotiated Checks, Report of Check Issued,

List of deposited of national collections, Report of collections and

deposits, Cash receipt record, Regular Accounting Reports and Financial

Reports,

 Encoding of Audit Observation Memorandum (AOM), Management

Letter, Check Issued, Disbursement Vouchers, and Journal Entry

Vouchers.
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 Verifying Bank Statements (Regular and Trust)

 Sorting and filing the DTR’s by month and alphabetically.

 Answering phone calls.

 Printing and Photocopying forms and other documents.

 Delivering of files and documents to the other departments.

 Receiving Vouchers

 Checking of Payrolls of NEDA VI, PSA RO6 and Bureau of Treasury

DATE AND TIME OF WORK

I started my duty at COA-PSA last November 9, 2017, Thursday at 1:55 in the

afternoon.

My Daily Time Record (DTR) is the basis of my exact number of duty hours I

have rendered at COA- PSA. The official start of the office is 8:00 in the morning until

5:00 in the afternoon.

PRINCIPLES, CONCEPTS, AND SKILLS USED WHILE DOING YOUR WORK

English, known as the universal language, could be useful in communication.

Communication is an act of transmitting or exchanging information from one person to

another. Most of the time I used this skill while answering phone calls and transacting to

other departments. It’s a good thing that we learned in our speech subject the value of
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proper communication. The pronunciation of each word should be given attention

because mispronunciation of it can result to misinterpretation of ideas.

As technology of the present time invades, the need to have basic knowledge in

computer is necessary. As a Business Administration student, it is also part of our

curriculum to enroll in computer subjects. I was lucky enough that I have enrolled to

some basic computer subjects during my early years. The knowledge of computer is very

useful for me during my training especially in encoding leave forms and other

documents.

MAJOR LEARNINGS FROM PRACTICUM EXPERIENCE

The practicum program helps me as a student to experience job reality in terms in

my field. I gained a lot of experience that is really helpful in my career as a Financial

Management student. In this manner, I have connected the gap between theory and

practice which is the primary purpose of the practicum program. The job training helps

my personality as a future professional someday where I could be able to apply all my

learning experiences in my future job.

500 hours working and being trained at the Philippine Statistics- Commission on

Audit Office, I learned many things. Here are some works and type of work I’ve learned

as a trainee:

1. Filing/ Sorting – in this work I sort or arrange files and documents

according to their respective dates, months and years, I filed leave forms

and contracts of faculties and staffs.

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2. Encoding – in this work I encode Payroll, AOM Replies and other

Audit working papers

3. Messenger – in this type work I deliver files and documents to other

departments. I really enjoyed this job because I had a chance to travel to

other offices which I never been to.

4. Recording - recording Official travel form, Request for overtime and

leave forms from different department and offices.

5. Others – other works and task given and assigned by supervisors

should be followed. As a trainee doing task as requested will help you

gain more ideas about other types of works and it also helps in having

good relationship with co-employees in the work place.

Besides this, the number one thing I have learned being a trainee at COA- PSA is

the importance of loving and enjoying your job. If you love your job of course you’re

giving your full efforts to it. Also, I’ve learned how responsibility really is important

while working. I’ve learned to manage my time. It’s also hard working while studying

without time management, sometimes if there’s assignment and projects, because of

working eight hours a day you cannot really give you’re full efforts to it, but when you

manage it, it’s much easier for you to do both.

I’ve also learned that it’s very important to have relationship with your co-

employees, because they are the ones who could help you when you have difficulties and

questions about your work. Ability to work with others is very important when you apply

to companies; because some organizations have what we called ”teams” and you’ll be

working them.
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The learnings I have gained throughout my practicum experience will surely be an

asset to my success.

PERSONAL FEELINGS AND OBSERVATIONS

As student having an OJT was something I looked forward to do. Being a trainee

at COA- PSA, I felt so blessed that I was given a chance to work with them; I’ve learned

so many things from them. I’ve learned the importance of family from them.

They showed me the importance of having a job, because today it is difficult to find jobs.

On my first day as a trainee at COA- PSA, I observed that all of the employees

working there are friendly.

Ma’am Nemia is my supervisor and alongside Ma’am Ayeesha taught me the

nature of work being done in their office; all the things I have learned in COA- PSA

came from them, to encoding leave forms, filling documents, recording official travel

forms and many more. They also gave us advises with regards to our studies and life. I’m

so thankful having them as my supervisors; I owe it to them the experiences and

learnings I have gained.

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Analysis Report

COA logo

Company Profile:

Commission on Audit History

Auditing as a tool for effective governance has been recognized and practiced

since the Spanish colonial era. One proof of this was the residencia, an inquiry into the

administration of an outgoing Governor General and consequently of other officials.

Conducted by the Royal Audiencia, it was designed to hold colonial officials to strict

accountability for all acts during their term of office. Another was the visita de tierra, a

visit of inspection made every three years, which often revealed glaring anomalies in the

handling of local government accounts.

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Colonial officials also performed investigations akin to audit at the time. One was

a fraud audit of sorts for galleon trade conducted in the early 1700s. Another, which

involved the inspection of the Misericordia de Manila in 1751, had shades of financial

audit.

In 1739, a Royal Decree by the King of Spain established the royal exchequer

which was the national treasury of that era. All books of accounts of the Spanish colonial

government were required to pass through the scrutiny and certification of the contador

or the accountant and that of the oidor, a representative of the Spanish crown, who by the

nature of his duties may be considered as the precursor of the auditor.

By mid-19th century, the Tribunal de Cuentas was created. It functioned as the

supreme auditing institution of the islands until the end of the Spanish rule in 1898.

Staffed by a president, two auditors, a fiscal, accountants and examiners, the Tribunal had

exclusive jurisdiction over the audit of all financial matters affecting the colony. These

personnel, all appointees of the King, were required by law to review all vouchers and to

cross-check them against corresponding entries in the books of accounts.

The Birth of an Institution

Nurturing a nascent government requires a mixture of boldness and prudence.

And at a time when the early Philippine government was being zealously fleshed out by

its American rulers emboldened by their newfound power, then President William

McKinley ensured a healthy dose of prudence in these activities.

An unnumbered memorandum signed on May 8, 1899 by McKinley gave birth to

the Office of the Auditor for the Philippine Islands.

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By 1900, the Office had become a fixture of government. The civil government

was formally ushered in 1901 under William Howard Taft. The major change in the

nature of government had ripple effects in the structure of government. One result of such

change was the conversion of the Office of the Auditor of the Philippine Islands to the

Bureau of the Insular Auditor.

However, it was more than a mere change of name. A provincial audit division

was created for the Bureau. Moreover, double-entry bookkeeping was introduced which

accounted for fuller analysis of settlements and ensured a higher degree of correctness.

In 1905, a change of guard took place. Taft resigned as Civil Governor and was

replaced by Luke E. Wright who led as Governor General. Under his administration, Act

No. 1402 was passed whereby the Bureau of the Insular Auditor was renamed the Bureau

of Audits.

Growth and Changes: Becoming a Stronger Institution

As the nation celebrated its independence with the promulgation of the 1935

Constitution, the institution also reached a milestone. The 1935 Constitution expressly

provided for a General Auditing Office, thereby elevating the audit institution to a

constitutional body. Renamed as the General Auditing Office or GAO, it now embarked

on a full Filipinization of the institution as a reflection of the government-wide transition

to self-governance. For the first time, the institution was headed by a Filipino Auditor

General in the person of the Hon. Jaime Hernandez.

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As a major stride towards the independence of the audit institution, the GAO was

explicitly placed under the direction and control of an Auditor General to separate it as an

organization from the Executive and other departments of the government.

In 1972, the country was placed under Martial Law. Government experienced a

major upheaval, and the GAO was not exempted. The GAO was renamed the

Commission on Audit (COA) and was granted broader powers under the new

Constitution promulgated in 1973. Under this Constitution, COA was given a broader

area of audit coverage by including the accounts of all subdivisions, agencies,

instrumentalities of government and government-owned-and-controlled corporations

among those to be examined, audited and settled.

As opposed to having an Auditor General single-handedly leading the GAO, the

new Constitution provided for a three-man collegial Commission on Audit. This change

aimed to strengthen the independence of the auditing office and improve the quality of its

decisions, given the rationale that a three-man body was less susceptible to pressure than

an office held by a single person. It worked as a built-in internal check within the

Commission and encouraged opposing views to surface thereby resulting in earnest

consultation and better deliberation.

In the years that ensued, the Commission was a hub of activity. A landmark

legislation on auditing, Presidential Decree 1445 or the Government Auditing Code was

promulgated in 1978. A Standard Government Chart of Accounts was likewise issued

which greatly facilitated financial audit for computerization purposes. The Commission

also implemented its comprehensive audit program focusing on the 3Es: economy,

efficiency and effectiveness. Installation of this program represented a break from

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tradition that laid undue emphasis on compliance and voucher audit. And on top of all

these, the Commission embarked on a massive reorganization and professionalization of

its personnel.

This era will also be remembered for the significant involvement of COA in

international events such as initiating the establishment of the Asian Organization of

Supreme Audit Institutions (ASOSAI), on to sponsorships of trainings for Asia’s auditors

and culminating with the hosting of the XI International Congress of Supreme Audit

Institutions (INCOSAI) in 1983. It was also during this time that a COA Chairman was

first elected to the United Nations Board of Auditors.

Years later, the world witnessed the 1986 EDSA Revolution. It was truly a

historical event that highlighted the need for reforms in government as a whole. It

provided everyone a chance for introspection and created an avenue towards change. As

fate would have it, the COA again found itself working under a new government, under a

new Constitution and with an even broader scope of authority.

The 1987 Constitution maintained the independence of the Commission on Audit

as the supreme auditing arm of the Philippine government. Moreover, the Constitution

reiterated COA’s role as the sole official external auditor of government agencies as well

as government-owned- and-controlled corporations (GOCCs). In other words, the

previous practice of some GOCCs and other government agencies of hiring private

accounting firms as a requirement of foreign funding institutions to act as their auditors

for foreign-assisted projects were no longer allowed.

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Change, it seems, is the inescapable destiny of the Commission. But as history

proves, whatever the nature of change brought about by national political events, the

Commission manages to make it for the better.

Constitutional Provision

1987 PHILIPPINE CONSTITUTION

ARTICLE IX-D THE COMMISSION ON AUDIT

SECTION 1 (1). There shall be a Commission on Audit composed of a Chairman and

two Commissioners, who shall be natural-born citizens of the Philippines and, at the time

of their appointment, at least thirty-five years of age, certified public accountants with not

less than ten years of auditing experience, or members of the Philippine Bar who have

been engaged in the practice of law for at least ten years, and must not have been

candidates for any elective position in the elections immediately preceding their

appointment. At no time shall all Members of the Commission belong to the same

profession.

SECTION 1 (2). The Chairman and the Commissioners shall be appointed by the

President with the consent of the Commission on Appointments for a term of seven years

without reappointment. Of those first appointed, the Chairman shall hold office for seven

years, one Commissioner for five years, and the other Commissioner for three years,

without reappointment. Appointment to any vacancy shall be only for the unexpired

portion of the term of the predecessor. In no case shall any Member be appointed or

designated in a temporary or acting capacity.

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SECTION 2 (1). The Commission on Audit shall have the power, authority, and duty to

examine, audit, and settle all accounts pertaining to the revenue and receipts of, and

expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the

Government, or any of its subdivisions, agencies, or instrumentalities, including

government-owned or controlled corporations with original charters, and on a post-audit

basis: (a) constitutional bodies, commissions and offices that have been granted fiscal

autonomy under this Constitution; (b) autonomous state colleges and universities; (c)

other government-owned or controlled corporations and their subsidiaries; and (d) such

non-governmental entities receiving subsidy or equity, directly or indirectly, from or

through the Government, which are required by law or the granting institution to submit

to such audit as a condition of subsidy or equity. However, where the internal control

system of the audited agencies is inadequate, the Commission may adopt such measures,

including temporary or special pre-audit, as are necessary and appropriate to correct the

deficiencies. It shall keep the general accounts of the Government and, for such period as

may be provided by law, preserve the vouchers and other supporting papers pertaining

thereto.

SECTION 2 (2). The Commission shall have exclusive authority, subject to the

limitations in this Article, to define the scope of its audit and examination, establish the

techniques and methods required therefor, and promulgate accounting and auditing rules

and regulations, including those for the prevention and disallowance of irregular,

unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of

government funds and properties.

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SECTION 3. No law shall be passed exempting any entity of the Government or its

subsidiary in any guise whatever, or any investment of public funds, from the jurisdiction

of the Commission on Audit.

SECTION 4. The Commission shall submit to the President and Congress, within the

time fixed by law, an annual report covering the financial condition and operation of the

Government, its subdivisions, agencies, and instrumentalities, including government-

owned or controlled corporations, and non-governmental entities subject to its audit, and

recommend measures necessary to improve their effectiveness and efficiency. It shall

submit such other reports as may be required by law.

Principal Duties

1. Examine, audit and settle all accounts pertaining to the revenue and receipts of, and

expenditures or uses of funds and property owned or held in trust by, or pertaining to,

the government.

2. Promulgate accounting and auditing rules and regulations including those for the

prevention and disallowance of irregular, unnecessary, excessive, extravagant or

unconscionable expenditures, or uses of government funds and properties.

3. Submit annual reports to the President and the Congress on the financial condition

and operation of the government.

4. Recommend measures to improve the efficiency and effectiveness of government

operations.

5. Keep the general accounts of government and preserve the vouchers and supporting

papers pertaining thereto.

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6. Decide any case brought before it within 60 days.

7. Performs such other duties and functions as may be provided by law.

Vision

A trustworthy, respected and independent audit institution that is an enabling

partner of government in ensuring a better life for every Filipino.

Mission

To ensure accountability for public resources, promote transparency, and help

improve government operations, in partnership with stakeholders, for the benefit of the

Filipino people.

Core Values

God Centeredness - We believe that everything comes from God and, therefore,

our highest accountability is to Him.

Patriotism - We commit to serve the interest of the Filipino people and the

country which shall have priority over all other considerations.

Excellence - We pursue world-class audit services availing of state-of-the-art

technology in conformity with international standards and best practices.

Integrity - We discharge our mandate in adherence to moral and ethical

principles and the highest degree of honesty, independence, objectivity and

professionalism.
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Professionalism - We believe in the continuous enhancement of the skills,

competence and expertise of our personnel in the basic right of every member of the

organization to self-development and well-being.

Courtesy, Modesty and Humility - We uphold and practice courtesy, modesty

and humility at all times, and acknowledge that we do not have a monopoly of technical

expertise.

Reverence for Truth and the Rule of Law - We pledge to remain steadfast in

our sworn duty to uphold COA's ideals out of reverence for truth and the rule of law.

Organizational Chart
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COA Hymn

Commission on Audit na COA ang turing

Natatanging tanggapang may maselang tungkulin

Ang COA ang tanod sa salaping bayan

Katulong at gabay sa pag-unlad ng ating lipunan

Kaya tayng taga-COA

Sana’y maging tunay na lingcod bayan

At hindi dapat masindak

Kahit sa tukso’t bantang ating hinararap

Ang COA ay bisig ng pamahalaan

Kabang baya’y siniskap mapagbungang tunay

Ang COA ay ating taga-bantay yaman

Katulong at gabay sa pag-unlad ng ating lipunan (2x)

Manuals and Circulars Used in Conducting the Audit

COA is responsible for the verifying the transactions of the Government whether

or not they actually exist and/or recorded properly and correctly. To make this work

prone to less, if not eliminated, errors and fraud, COA uses several devices which

includes Government Accounting Manual (GAM) for National Government Agencies,

Government Auditing Code of the Philippines, Manuals on New Government Accounting

System (NGAS), and COA circulars.

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GAM for National Government Agencies is composed of three volumes. Volume

1 contains the general provisions, basic standards and policies, the specific guidelines and

procedures for each standard, and the illustrative entries for typical transactions of

national government agencies. Volume 2 contains the various formats of books of

accounts, registries, records, forms and reports, and the instructions on their use. Volume

3 contains the List and Description of Accounts per COA Circular No. 2013-002 dated

January 30, 2013, amendments per COA Circular No. 2014-003 dated April 15, 2014,

and additional/modified accounts. This manual is very widely use especially for those

regional offices not only whenever they need to consolidate the financial statements but

also as a basis of correct reporting, journalizing, and posting.

Government Auditing Code of the Philippines also known as Presidential Decree

No. 1445, this law shall be known and cited as the “Government Auditing Code of the

Philippines.” It is the declared policy of the State that all resources of the government

shall be managed, expended or utilized in accordance with law and regulations, and

safeguarded against loss or wastage through illegal or improper disposition, with a view

to ensuring efficiency, economy and effectiveness in the operations of government. The

responsibility to take care that such policy is faithfully adhered to rests directly with the

chief or head of the government agency concerned. In keeping with its Constitutional

mandate, the Commission adheres to the following primary objectives:

1. To determine whether or not the fiscal responsibility that rests directly

with the head of the government agency has been properly and effectively

discharged;
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2. To develop and implement a comprehensive audit program that shall

encompass an examination of financial transactions, accounts, and reports,

including evaluation of compliance with applicable laws and regulations;

3. To institute control measures through the promulgation of rules and

regulations governing the receipts, disbursement, and uses of funds and

property, consistent with the total economic development effort of the

government;

4. To promulgate auditing and accounting rules and regulations so as to

facilitate the keeping, and enhance the information value, of the accounts

of the government;

5. To adopt measures calculated to hasten the full professionalization of its

services;

6. To institute measures designed to preserve and ensure the independence of

its representatives; and

7. To endeavour to bring its operations closer to the people by the delegation

of authority through decentralization, consistent with the provisions of the

new Constitution and the laws.

The New Government Accounting System or NGAS is composed of accounting

system for Local Government Units and National Government Agencies. Obviously, the

manual itself depicts what would be included on its contents. This manual is actually

revisions of other old manuals. This manual is later changed to GAM.

COA circulars are the legal basis for certain rules in Government Accounting. It

has been updated from 1975 to 2016. The latest revisions found in the website of COA
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are the following: 1.) COA Circular NO. 2016-002 – May 31, 2016. Amendment to COA

Circular No. 2013-003, dated January 30, 2013, re: Reiteration of Audit Disallowance of

Payments Without Legal Basis of Allowance, Incentives, and Other Benefits for

Government Officials and Employees in the NGAs, LGUs, and GOCCs and their

Subsidiaries; 2.) COA Circular No. 2016-002 – May 31, 2016. Updates on Prescribing

the Revised Guidelines and Documentary Requirements for Fund Transfers; 3.) COA

Circular No. 2016-003 – August 16, 2016. Amendment to COA Circular No. 2014-004

dated January 30, 2013 Re: Information and Publicity on Programs/Projects/Activities of

the Government Agencies; 4.) COA Circular No. 2016-004 – September 30, 2016.

Guidelines on the conversion of the chart of accounts from the Philippine Chart of

Accounts under COA Circular No. 2004-008 dated September 20, 2004, as amended, to

the Revised Chart of Accounts for Local Government Units under COA Circular No.

2015-00 dated December 1, 2015, and Guidelines on the Preparation of the Calendar

Year 2015 Year-End Financial Statements and Reports. Annex A – Matrix of Conversion

of Accounts, annex A-1 – List of New Accounts Not mentioned in the Conversion

Matrix, annex B – Statement of Financial Position, annex B-1 – Statement of Financial

Position – Trust Fund, annex C – Statement of Financial Performance, annex C-1 –

Statement of Financial Performance – Trust Fund, annex D – Statement of Changes in

Net Assets/Equity, annex E – Statement of Cash Flows, annex E-1 – Statement of Cash

Flows – Trust Fund, annex F – Statement of Comparison of Budget and Actual Amounts,

annex G – Notes to Financial Statements. 5.) COA Circular No. 2016-005 – December 1,

2016-005 – December 1, 2016. Guidelines and Procedures on the Write-off of Dormant

Receivable Accounts, Unliquidated Cash Advances, and Fund Transfers of National

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Government Agencies (NGAs), Local Government Units (LGUs) and Government-

Owned and Controlled Corporations (GOCCs). 6.) COA Circular No. 2016-006 –

December 2, 2016. Conversion from the Philippine Government Chart of Accounts under

the New Government Accounting System per COA Circular No. 2004-008 dated

September 20, 2004, as amended, to the Revised Chart of Accounts for Government

Corporations under COA Circular No. 2015-010 dated December.

Key Officials

Commission on Audit (COA) Chairperson Michael G. Aguinaldo was appointed to

head the Supreme Audit Institution on March 24, 2015. Chairperson Aguinaldo is a

lawyer with extensive legal, governance and administration expertise acquired from 23

years of professional work as private law practitioner, government official and professor.

Prior to his appointment to COA, Chairperson Aguinaldo was the Deputy Executive

Secretary for Legal Affairs of the Office of the President, handling formulation of

operational policies, standards and processes for efficient and effective provision of legal

and legislative assistance and services to the organizational units of the Office of the

President and the different departments and government agencies.

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As Deputy Executive Secretary, he reviewed and prepared decisions on appeals from

resolutions, orders and actions of different departments under the jurisdiction of the

President and petitions for executive clemency. He also reviewed and submitted

recommendations on proposed bills and enrolled bills passed by Congress, the legality of

treaties, conventions and executive agreements entered into by the government with other

countries for consideration of the President.

He headed the Investigation and Adjudication Office (formerly the Presidential Anti-

Graft Commission) and oversaw the implementation of integrity initiatives consistent

with the United Nations Convention Against Corruption.

Before joining government, Chairperson Aguinaldo was a partner and member of the

Executive Committee of the Romulo Mabanta Buenaventura Sayoc & de los Angeles law

firm. Having been with the law firm for 17 years, Chairperson Aguinaldo acquired

extensive expertise handling special projects, particularly in infrastructure,

telecommunications and energy sectors. He has extensive experience in the conduct of

legal audit and due diligence of acquisitions and mergers and in compliance-related

matters for both foreign and domestic corporations. He has also handled litigation and

arbitration for both domestic and international clients in civil, tax, securities and labor

cases, and petitions and appeals before the Court of Appeals and the Supreme Court.

Chairperson Aguinaldo is also a faculty member of the Ateneo de Manila University

School of Law, and has taught courses in Obligations and Contracts, Credit Transactions,

Legal Forms, Labor Relations, Labor Standards Law and Negotiation Seminar.

He obtained his law degree from the Ateneo in April 1992. Afterwards, he worked as an

associate at the De Borja Medialdea Ata Bello Guevara and Serapio law office.
 27

Chairperson Aguinaldo also holds a Special Degree in International Economic Law

obtained from the University of Michigan in Ann Arbor, Michigan in May, 1997. He

placed 7th in the 1992 Philippine Bar Examinations.

Commissioner Jose A. Fabia was appointed to the Commission on Audit (COA) on

May 2, 2014 and was confirmed in record time by the Commission on Appointments

unanimously and without opposition from its members on June 11, 2014. He is a lawyer

with 31 years of experience in law, management, governance issues, business,

communications, and healthcare.

Commissioner Fabia first joined the government in 1987 as Assistant Secretary for Legal

Affairs of the Department of Health. He left the Department in 1991 to run for Mayor of

his town, Binmaley, Pangasinan.

As Assistant Secretary, he assisted in developing the legal and regulatory framework for

the implementation of health programs and policies. His health legal reform advocacy led

to the amendment of the Food, Drug and Cosmetic Act and the enactment of the Milk

Code and the Generics Act. These laws assured safe, effective and high quality, yet

affordable drugs and medicines.

 28

As the legal counsel of the Department, he was instrumental in reviewing internal audit

reports that led to administrative actions against its erring officials and employees. He

also served as Vice-chairman of the Dangerous Drugs Board of the Philippines, member

of the Board of Governors of the East Avenue Medical Center, and trustee of the

Research Institute for Tropical Medicine Foundation.

From 1992 to 1995, Commissioner Fabia served as Municipal Mayor of Binmaley,

Pangasinan where he planned and implemented the Nutrition, Food, Environment and

Medicare Program for Indigents. The program was designed to help malnourished

children and their families, to increase food production in the community, to protect the

environment, and to assist poor patients who have no means to pay for their

hospitalization. The Program was recognized by the Asian Institute of Management, the

Ford Foundation, and the Department of Interior and Local Government as one of the

best local government programs in the country for its innovation, sustainability, and

replicability. It won the Galing Pook Award in 1994.

Commissioner Fabia was the first President and Chief Executive Officer of the Philippine

Health Insurance Corporation, which he transformed from a P150-million company in

1995 to a P20-billion corporation in 1998. At Philhealth, he developed the organizational

and actuarial framework for a universal health insurance program. He partnered with

hospitals and local government units in improving healthcare in the grassroots level, and

headed health financing projects in the Philippines funded by the governments of the

United States and Germany.

Trained in quality assurance in healthcare and healthcare financing under the Joint

Commission International for the Accreditation of Healthcare Providers in the United

 29

States, Commissioner Fabia was awarded for his pioneering efforts in healthcare fraud

detection and prevention and the radio program “Dear Philhealth,” which he started in

1998 and is still airing up to the present, was feted with the Gawad Florendo.

When he left Philhealth in 1998, the poor in the 28 poorest provinces and four cities in

the country were already covered by health insurance, the Medicare program for the

employed both in government and in the private sector were already under Philhealth. He

laid the foundations for one of the biggest and most profitable government corporations

in the country today.

Commissioner Fabia left government service from 1998 to 2010 to fulfill his obligation

of guiding and caring for his growing family. While in private sector, he practiced law

and was consultant of the Glycan Group of Companies in Switzerland and the province of

Sandaun, Papua New Guinea.

He served as Director-General of the Philippine Information Agency (PIA) from 2010 to

2012. At the PIA, he initiated the Anti-Drug Courier Program that won an Anvil Award

in 2011 for successfully disabling illegal drug trafficking syndicates through public

information and education, resulting in an 82% decrease in drug trafficking cases in

2011.

As the PIA head, Commissioner Fabia actively represented the Philippines in the

Association of Southeast Asian Nations (ASEAN) Committee on Information and

Culture (COCI). He ably represented the COCI in its fund management committee. He

likewise successfully shepherded the drafting of the ASEAN communications plan as

chair of its working committee.

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Commissioner Fabia introduced Text Blast as a means of communicating government

programs and projects, informing key decision makers of news in real-time and warning

people about impending natural calamities. Text messaging is now institutionalized by

Congress as a disaster preparedness tool, a service which will be provided to the people

for free by the enactment of Republic Act No.10639, otherwise known as “The Free

Mobile Disaster Act.” He created the Typhoon Juan Facebook account, the first social

media platform for disaster information. The Typhoon Juan Facebook account evolved

into the Weather Watch Account in Facebook. Weather Watch remains to be an effective

information network for disaster preparedness and information.

A serial innovator, Commissioner Fabia anchored the TV program Communications and

News Exchange Forum, a tool to disseminate government programs and a strategy to

make government transparent and accountable. He also started the “One Mindanao” daily

online magazine, the first of its kind in the country.

After passing the bar in 1982 with the grade of 84.75%, Commissioner Fabia started his

law practice in the Province of Pangasinan. He advocated environmental protection,

provided legal representation to poor litigants, and helped watch groups in the prevention

of electoral fraud during the 1986 Philippine Presidential Election. He was also a law

professor at the University of Pangasinan where he introduced critical thinking and case

method in the subjects that he taught.

For his significant contributions in the field of public service, Commissioner Fabia was

awarded the Most Outstanding Pangasinense in Public Service by the Kaluyagan nen

Palaris, a socio-civic confederation of Pangasinan organizations.

 31

Commissioner Fabia holds a Master’s Degree in Entrepreneurship (with Superior

Distinction) from the Asian Institute of Management, a Bachelor of Laws degree from the

University of the Philippines, and a Bachelor of Arts degree from the University of Santo

Tomas.

Commissioner Roland Café Pondoc was nominated to the Commission on Audit

(COA) on 6 February 2018 and was confirmed unanimously by the Commission on

Appointments (CA) on March 14, 2018, for a term expiring on 2 February 2025. A

Certified Public Accountant (CPA) and Lawyer, Commissioner Pondoc concentrated his

love for education with his Alma Mater, the University of Mindanao - Davao City, for 22

years, while practicing both professions.

Commissioner Pondoc served as a professor in the Colleges of Accountancy, Law,

Business Administration, Criminology and the Graduate Studies of the University of

Mindanao (UM) from 1994 to 2016. He was an Assistant Dean of the College of Law and

served as Officer-in-Charge/Director of the Office of the Student Affairs. His exceptional

work as an educator was recognized by the University of Mindanao who awarded

Commissioner Pondoc the Golden Harvest Award for Outstanding Professor in 2008,

2009 and 2010. He was also a National Awardee as an Outstanding Business Educator in
 32

the Field of Accountancy in 2004 and 2011 conferred by the Philippine Council of Deans

and Educators in Business and the Petron Foundation. Moreover, he became a National

Awardee of the Philippine Institute of Certified Public Accountants (PICPA) three times:

Most Outstanding CPA in Education (2008), Most Outstanding PICPA Member (2009)

and Most Outstanding PICPA Chapter President (2015). Before concentrating in the

academe, he worked for private companies such as the Tri-Star Corporation, Eden

Corporation and Jesus V. Ayala Management Corp.

Commissioner Pondoc joined the government service in 2014 as Legal Officer of the

Southern Philippines Medical Center (SPMC), a government hospital which is located in

the heart of Davao City.

Prior to his nomination, Commissioner Pondoc was appointed as the Assistant Executive

Secretary (AES) in the Office of the President in September 2016 and specifically

assigned as the Assistant Deputy Director General for the Administration and

Logistics/Finance for the Association of Southeast Asian Nations (ASEAN) 2017

National Organizing Council for the entire period of the ASEAN 2017 Hosting of

Summits and Related Meetings. He was directly in-charge of all logistic requirements of

each conducted meeting regardless of its location and the number of foreign and local

delegates. He was also in charge of carefully and critically monitoring the proper

utilization of the budget intended for the said events.

Commissioner Pondoc finished his primary education from the University of Immaculate

Conception (formerly ICC) and Rizal Memorial Colleges, and his secondary education

from the Davao City National High School (formerly DCHS). He was a magna cum

laude graduate of Bachelor of Science in Commerce major in Accounting in 1988. He

 33

obtained his Bachelor of Laws in 2001 as a recipient of the Achiever’s Award and his

Master in Business Administration (MBA) in 1997. In 2009, he was a recipient of the

Tambuli Award as Most Outstanding Alumni by the UM Alumni Association, Inc. He is

also a Licensed Real Estate Appraiser and a Licensed Real Estate Broker.

Workplace Practices

COA-PSA audits Philippine Statistics Authority and agencies related to it.

Provinces included within its jurisdiction are Iloilo, Capiz, Antique, Aklan, and

Guimaras. Aside from the provinces mentioned, it also audits the consolidated financial

statements of those mentioned Provinces into one financial statement. From time to time,

accountants come in go in the office, delivering necessary files and answering questions

of the audit team. Whenever discrepancy exists, the audit leader will tell the assigned

accountant or personnel to review or revise its work according to Government

Accounting Manual issued by COA itself. The audit team also travels from province to

province in certain time to insure the accuracy and reliability of the reports from each

provinces. Sometimes, they spent the whole week in just one province.

The financial statements of each different provinces are manually check,

especially the Official Receipts and other supporting documents. Every doubt of the audit

team is individually verified if what had happened why that certain supporting document

has defect.

The correct and legitimate process of post-auditing documents is not very similar

with that of what is practiced. In theory, the first thing should the agencies should submit
 34

the necessary documents based on so called “COA bible”, the Presidential Decree 1445

and some other law not covered with PD 1445. As per, PD 1445, the audit team should

accept immediately as soon the documents were delivered to their officer. By the time the

documents were accepted, post-audit proper should be started next, post-audit involves

checking the amounts, verifying the signatures, tracing each transaction, and checking its

legality. Post-audit proper usually is the most time consuming process because of the

unimaginable volume of transactions and documents. After the post-audit proper, the

findings will be encoded on the working papers. From the working papers, the audit team

will issue its Audit Observation Memorandum (AOM) consisting of their findings as

reflected in their working papers, and recommendations as to what to do with the defects

or doubts. Within 60 days from the issuance of AOM, the agencies should respond to the

recommendations, else the Commission will issue a Notice of Suspension to the agency.

If the agency will still continue to operate despite of having a notice of suspension, the

Commission will issue a Notice of Disallowance, wherein it disallowed the agency to

operate, binding in all law and regulation.

To sum up the workplace practices, in pursuant to Section 6 of Article IX-A of the

1987 Constitution, and by the virtue of the powers vested in it by existing laws, the

Commission on Audit hereby promulgates the following summary of rules governing

pleading and practices before it.

Rule 1: Introductory Provisions

Rule 2: Jurisdiction and Powers of the Commission on Audit

Rule 3: Organizational Structure of the Commission Proper and How It Transacts

Business
 35

Rule 4: Proceedings Before the Auditor

Rule 5: Proceedings Before the Director

Rule 6: Proceeding Before the Adjudication and Settlement Board

Rule 7: Petition for Review to the Commission Proper

Rule 8: Original Cases Filed Directly with the Commission Proper

Rule 9: Pleadings, Mode of Filing, Docketing of Cases and Filing Fee

Rule 10: Proceedings before the Commission Proper

Rule 11: Contempt

Rule 12: Judicial Review

Rule 13: Enforcement and Monitoring of Decision

Rule 14: Administrative Cases

Rule 15: Miscellaneous Provisions

Rule 16: Repealing Clause and Effectivity

Problems Encountered During the Practicum

Based on aforementioned practices, the following problems are generated:

1. The submission of necessary documents from every region experiences

delay. A delay that causes also problems for the audit team to handle

because if the regions have delays on their submission of documents to be

audited and once all of it come at once, the audit team will surely have a

rough time auditing it.

2. The workload is too much to handle for an audit team of 2 to 3 members.

COA audits 5 provinces, Aklan, Guimaras, Capiz, Iloilo and Negros, each
 36

of these have a lot to be audited that’s why there are times that an auditor

performs post-audit.

3. The work of an auditor should be limited to checking the work of an

accountant; however, this is sometimes not true in reality. There are

accountants that were aware that their work is not correct, yet they still

pass it just to comply with the demand of the auditor. In other words, the

professional competency of employees of both the COA and agencies it

handles should be given account since it is also a factor for the success of

the Commission.

4. The interrogation of those subject for verification of the auditor are also

conducted in the same room where checking of files is conducted. It is a

must for every office to have a room for work and a room for special

meetings, but in case of COA, the small room for work is also the same

room for interrogation.

5. There are Property, Plant, and Equipment that are fully depreciated but

still in use. The essence of depreciation is defeated as well as its purpose

of having a new set of PPE. The Government should not deprive the

employees of COA for new set of PPE, so that they will be of great

productivity.

6. In line with the problems, it is not just the problems of COA alone are the

factors, but also the problems with the agencies it handles. Agencies has

only one person that handles the entire operation, thus it is very hard, if
 37

not impossible, for him or her to comply with the demand of the

Commission.

7. The tolerance of COA when it comes to submission of reports is not that

strict that they don’t follow up or contact the other agencies that they need

to audit. The COA must make a deadline and when you say deadline, it

should really be a deadline that whatever happens, the other agency should

be able to submit the documents that they are required to give.

Recommendations

For the purpose of enhancing, if not maximized, the productivity of the

Commission on Audit the following recommendations are advanced based on

aforementioned problems respectively:

1. Strict compliance as to the demand of the auditor. Take note that this

report does not consider the implementation or approving of any plans

written. Strict compliance means that all employees must be given enough

time to do their work and according to their capabilities. The law provides

eligibility criteria for each of the position in COA.

2. In order to boost productivity within an organization, certain investments

must be made. Investing with the quality is good, but quality alone will get

you nowhere unless that quality is baked with quantity. Promulgating a job

fair might somehow solve the problem, but not totally, because people

won’t just work for something if they think it’s not worth it.

3. Training. Whether it is induction, on-the-job training, COAching,

mentoring, cascade training or in-house courses, the purpose of internal

 38

training is to create a motivated, skilled and effective workforce through

which organizational goals are achieved. Internal training has certain

advantages over learning through external provision and formal

qualifications, including job relevance and cost. The employees, though,

might find it is less transferable to other employment if it is too specific.

4. The Government should support the COA financially. To invest in them

for the facilities and equipments to be used, for a better and productive

way of working.

5. Hiring of employees of the agencies is a must considering that their

employee must not only have a bachelor's degree but a degree that is fit

for him/her to work on a certain field.

6. Strict compliance of deadlines. They should be strong enough to make the

other agencies follow what they want when it comes to the submission of

documents to avoid further increasing amount of workload that they need

to finish. This is also for them to avoid cramming when it comes to the

deadlines assigned to them from other agencies.

Conclusion

On-the-job training is a very beneficial requirement for every student. It does not

only enhance their learnings from school but educates them more in a way that serves as

a preparation from a futuristic event that they will soon encounter. The real world is too

different from school boundaries and because of the training allotted to us, we are able to

experience what it is to be in a real job and what environment it has. This is also the final

step for us to brace ourselves on what’s coming for us.

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APPENDICES

1. Copy of Introduction Letter to Supervisor (Original)

2. Application Form for Practicum

3. Waiver

4. Medical Certificate

5. Memorandum of Agreement

6. Practicum Rating Form from supervisor (original)

7. Daily Time Record Showing Total Number of Hours Worked

8. Certificate of Completion

9. Examination Permit (final exam only)

10. Attendance Slip (original)

11. Daily Diary