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    Exercise 4 CASE AOM

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    Naye Tomawis
    The audit observation memorandum summarizes deficiencies found in disbursement vouchers for computer purchases totaling 7.5 million pesos by the Department ABC Region III office. Officials approved purchases exceeding their authority as defined by General Memorandum Order 003, which sets authorization limits based on the transaction amount. The memorandum recommends officials observe the authorization limits and that administrative sanctions be enforced if violations occur.

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    Exercise 4 CASE AOM

    Uploaded by

    Naye Tomawis
    67 views3 pages
    The audit observation memorandum summarizes deficiencies found in disbursement vouchers for computer purchases totaling 7.5 million pesos by the Department ABC Region III office. Officials approved purchases exceeding their authority as defined by General Memorandum Order 003, which sets authorization limits based on the transaction amount. The memorandum recommends officials observe the authorization limits and that administrative sanctions be enforced if violations occur.

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    The audit observation memorandum summarizes deficiencies found in disbursement vouchers for computer purchases totaling 7.5 million pesos by the Department ABC Region III office. Officials approved purchases exceeding their authority as defined by General Memorandum Order 003, which sets authorization limits based on the transaction amount. The memorandum recommends officials observe the authorization limits and that administrative sanctions be enforced if violations occur.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    67 views3 pages

    Exercise 4 CASE AOM

    Uploaded by

    Naye Tomawis
    The audit observation memorandum summarizes deficiencies found in disbursement vouchers for computer purchases totaling 7.5 million pesos by the Department ABC Region III office. Officials approved purchases exceeding their authority as defined by General Memorandum Order 003, which sets authorization limits based on the transaction amount. The memorandum recommends officials observe the authorization limits and that administrative sanctions be enforced if violations occur.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Republic of the Philippines

    COMMISSION ON AUDIT
    Bangsamoro Autonomous Region in Muslim Mindanao
    OFFICE OF THE TEAM LEADER
    Team 49 Audit Group D, Lanao del Sur
    Department ABC BARMM
    Matampay, Marawi City

    AUDIT OBSERVATION MEMORANDUM (AOM)

    AOM NO. 2017-001


    June 25, 2017

    For: REGIONAL DIRECTOR


    Department ABC, Region III

    Attention: Accountant
    Cashier
    Property Officer

    We have audited the disbursement vouchers for the month of May 2017, and observed
    the following deficiencies/errors:

    Officials of Regional Office III exceeded their authority in approving the disbursements for
    the purchase of computers and related computer supplies totaling Php 7,500,000.00,
    contrary to General Memorandum Order (GMO) No. 003 dated January 6, 2000 issued by
    the Secretary.

    The Secretary approved and issued General Memorandum Order (GMO) No. 003 dated
    January 6, 2000, setting a policy on delegation and providing for the rules on the authority to
    certify and approve Disbursement Vouchers (DVs) which as follow:

    Document
    s Amount
    Particular Signing Official
    Authorized

    Certified that expenses are


    ARD for Operation / ARD for
    Box A necessary, lawful and incurred Below Php1
    Admin & Finance
    under his direct supervision million
    RD
    Box C Approval for payment

    Regional Director / Asst.


    Certified that expenses are
    Secretary concerned
    Box A necessary, lawful and incurred
    under his direct supervision Php1 million to
    below Ph5 million
    Undersecretary concerned /
    Undersecretary for
    Box C Approval for payment Administrative and Finance

    Certified that expenses are Undersecretary concerned / Php5 million &


    Box A necessary, lawful and incurred undersecretary for above
    under his direct supervision Administrative and Finance
    Box C Approval for payment Secretary

    Furthermore, said memorandum provides that “All checks shall be signed by the Chief,
    Cashier Section; and countersigned by the official approving the Disbursement Voucher”.

    Audit of RO III showed that General Memorandum Order (GMO) No. 003 was
    disregarded when the signing officials exceeded their authorities delegated under the GMO. The
    approval authority of the Regional Director who signed Box C and of the Asst. RD who certified
    on Box A of about seven disbursement vouchers totaling P7.5 million were exceeded, when the
    signing officials should act within the limits provided in the above table. A summary of the
    infringed transactions is shown below:

    Signatory to DV
    DV# Amount Actual Should Be
    Box A Box C Box A Box C
    1 1,100,000 ARD for Operation RD RD USEC

    2 1,100,000 ARD for Operation USEC


    RD RD

    3 1,100,000 ARD for Operation USEC


    RD RD
    RD RD
    4 1,050,000 ARD for Admin & Finance USEC

    5 1,050,000 ARD for Admin & Finance RD RD USEC

    6 1,000,000 ARD for Admin & Finance USEC


    RD RD

    7 1,100,000 ARD for Admin & Finance USEC


    RD RD
    Tota
    7,500,000
    l

    In addition, from the above transactions, about 7 checks were subsequently counter
    signed beyond authority of the RD, instead of the Undersecretary. This failure to comply by the
    approving officer, as provided in GMO No. 003 pertaining to the authority to certify and approve
    disbursement as to the limitation of the amounts, is tantamount to usurpation of authority and
    signify illegal transactions.

    We recommend that the concerned official should faithfully observe the provisions
    of GMO No. 003 as approved by the Secretary in the exercise of signing authorities.
    Administrative sanctions provided therein and appropriate laws and rules should also be
    enforced.

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

    LANTUD M. MAHATMA
    State Auditor IV
    Audit Team Leader

    RASDY S. GUILING
    OIC – Supervising Auditor

    Proof of Receipt of AOM:

    ___________________
    Date:______________

    ___________________
    Date:______________

    Page 2 of 3
    2. Not highlighted

     Splitting of Purchase Orders as prohibited in COA Circular No. 76-41.


     Specifications of computers purchased are not fully not in accordance with the
    specifications recommended by Task Force and provided in the Computerization
    Program Memorandum/Document.

    3. Evidence missing:

     Purchase Order
     Contracts
     APP
     Bidding Documents

    4. Weaknesses in internal control:

     In process of Purchase Request


     Failure to inspect properly the purchased computers with regards to its
    specifications.

    5. Accounts affected:

     PPE accounts
     Material - Qualified due to departure from the PPSAS 17

    6.

    Page 3 of 3

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