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    02-PSU2016 Transmittal Letter To Board Of-Regents

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    jaymark camacho
    The Commission on Audit transmitted the Annual Audit Report of Pangasinan State University to its Board of Regents. The audit found a qualified opinion on the university's financial statements due to discrepancies between reported property and a physical inventory. It also identified issues with liability accounts not following guidelines and unsupported long-term investments. The report details audit findings including unliquidated cash advances, suspensions, and disallowances that the university must address through an action plan within 60 days.

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    02-PSU2016 Transmittal Letter To Board Of-Regents

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    jaymark camacho
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    The Commission on Audit transmitted the Annual Audit Report of Pangasinan State University to its Board of Regents. The audit found a qualified opinion on the university's financial statements due to discrepancies between reported property and a physical inventory. It also identified issues with liability accounts not following guidelines and unsupported long-term investments. The report details audit findings including unliquidated cash advances, suspensions, and disallowances that the university must address through an action plan within 60 days.

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    02-PSU2016 Transmittal Letter to Board of-Regents

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    The Commission on Audit transmitted the Annual Audit Report of Pangasinan State University to its Board of Regents. The audit found a qualified opinion on the university's financial statements due to discrepancies between reported property and a physical inventory. It also identified issues with liability accounts not following guidelines and unsupported long-term investments. The report details audit findings including unliquidated cash advances, suspensions, and disallowances that the university must address through an action plan within 60 days.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    42 views2 pages

    02-PSU2016 Transmittal Letter To Board Of-Regents

    Uploaded by

    jaymark camacho
    The Commission on Audit transmitted the Annual Audit Report of Pangasinan State University to its Board of Regents. The audit found a qualified opinion on the university's financial statements due to discrepancies between reported property and a physical inventory. It also identified issues with liability accounts not following guidelines and unsupported long-term investments. The report details audit findings including unliquidated cash advances, suspensions, and disallowances that the university must address through an action plan within 60 days.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Republic of the Philippines

    COMMISSION ON AUDIT
    Regional Office No. 1
    City of San Fernando, La Union
    Telefax No. (072) 888-6781

    April 24, 2017

    THE BOARD OF REGENTS


    Pangasinan State University
    Lingayen, Pangasinan

    Gentlemen/Mesdames:

    We are pleased to transmit the Annual Audit Report on the Pangasinan State
    University, Lingayen, Pangasinan, for the year ended December 31, 2016 in compliance
    with Section 2, Article IX-D of the Philippines Constitution and Section 43 of
    Presidential Decree No. 1445.

    The audit was conducted to ascertain the propriety of financial transactions and
    compliance with prescribed rules and regulations. It was also made to ascertain the
    accuracy of financial records and reports, as well as the fairness of the presentation of the
    financial statements. Likewise, a Value for Money Audit (VFM) was conducted to
    determine whether the resources of the University were utilized in an economical,
    efficient and effective manner.

    We expressed a qualified opinion on the fairness of the presentation of the


    financial statements of the University for the reasons stated in the independent Auditor’s
    Report in Part I of the report.

    The significant findings and observations that need immediate actions are:

    1. The consolidated balance of the Property, Plant and Equipment (PPE)


    accounts of PSU totaling P1,991,968,010.29 as of year-end does not
    reconcile with the Report on the Physical Count of Property for Plant and
    Equipment of P1,701,905,242.39, or a difference of P290,062,767.90, which
    is not in conformity with Section 38 and 42 of the Government Accounting
    Manual (GAM), thus the accuracy, existence and physical condition of these
    assets could not be ascertained.

    2. Collections/receipts from students and from other National Government


    Agencies (NGAs) were recognized in the books under Trust Liability and
    Other Payables accounts amounting P4,543,800.00 and P6,052,168.62,
    respectively or a total of P10,595,968.62, which is not consistent with the
    Revised Chart of Accounts (RCA) of the Government Accounting Manual
    (GAM) and the provisions of CHED Memo No. 20 series of 2011 on the use
    of income and IRR of R.A. 8292, thus rendering unreliable the consolidated
    balance of the liability account.

    3. Long-Term Investment amounting to P3,750,000.00 included in the balance


    of the Other Assets account was not supported by a Certificate of Investment
    or equivalent official document containing the terms and conditions of the
    investment, rendering the propriety, validity, and existence of the reported
    investment doubtful.

    4. Cash Advances totaling P1,886,666.59 were not liquidated within the


    prescribed period and remained outstanding as of December 31, 2016,
    although the purpose for which it were granted have already been served,
    contrary to COA Circular No. 97-002, thus, expenses were not immediately
    recognized when incurred, and rendering unreliable the balances of the
    affected accounts.

    5. In addition, as of December 31, 2016, the total suspensions and disallowances


    of all campuses amounted to P17,425,134.51 and P12,979,270.96,
    respectively.

    Details of these significant findings and observations together with the other audit
    findings and observations are discussed in detail in the Observations and
    Recommendations portion in Part II of the report.

    We acknowledge the support and cooperation that you and your staffs extended to
    the Audit team thus facilitating the submission of the Report.

    We request that the recommended remedial measures be immediately


    implemented by submitting the duly accomplished Agency Action Plan and Status of
    Implementation form hereto attached within sixty (60) days from receipt hereof, in
    pursuance with the General Provisions of the General Appropriations Act (GAA) of 2016
    (Republic Act No. 10924).

    Very truly yours,

    MICHAEL R. BACANI
    OIC-Regional Director

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