Professionalism, Intelligence and Skill. They Shall Enter Public

Cash Examination Report on the Cash and Accounts of Ms. Catherine A.
Ybay
Cashier, Quezon City Central Post Office, Quezon City
For the period September 15, 2020 to July 13, 2021
I. INTRODUCTION
1. Pursuant to COA-PPC Office Order No. 2021-001 dated July 9, 2021, an audit
team consisting of Mr. Muhammad Reza M. Mamowalas, State Auditor II,
conducted examination on the cash and accounts including the accountable forms
of Ms. Catherine A. Ybay, Cashier.
2. The audit was conducted in accordance with COA Memorandum No. 2013-004
dated July 9, 2013 prescribing the use of the Revised Cash Examination Manual.
3. The audit findings and recommendations which are discussed in detail in Part II
hereof shall be incorporated in the 2021 PPC Annual Audit Report, where
appropriate.
II. FINDINGS AND RECOMMENDATIONS
1. Pre-signing of official receipts (ORs) by the accountable officer assigned at

SM North post office contravened Section 4 of Republic Act No. 6713
provides, exposing the accountable forms to improper use.
1.1 Section 4 of Republic Act No. 6713 provides, among others, that:
“Norms of Conduct of Public Officials and Employees. - (A) Every

public official and employee shall observe the following as standards
of personal conduct in the discharge and execution of official duties:
“b) Professionalism. - Public officials and employees shall perform

and discharge their duties with the highest degree of excellence,
professionalism, intelligence and skill. They shall enter public
service with utmost devotion and dedication to duty. They shall
endeavor to discourage wrong perceptions of their roles as
dispensers or peddlers of undue patronage.” (Emphasis Ours)
1.2 During the cash count conducted on July 13, 2021 at SM North post office,
it was observed that the accountable officer Ms. Josephine J. Dela Cruz,
Clerk, was not present at her station and entrusted the transactions of the
post office to Ms. Jonah Mica C. Manalaysay, contract of service.
1.3 Inquiry disclosed that Ms. Dela Cruz left the post office earlier that day and
provided Ms. Manalaysay a pad of pre-signed ORs to be issued for
acknowledgment of collections.
1.4 The practice of pre-signing ORs and entrusting the transactions of the post
office to contract of service personnel and having custody and/or possession
of cash and accountable forms is detrimental to the government. They
cannot be an authorized representative and be issued of fidelity bond hence
the government may be at risk of non-recovery in case of loss due to
robbery, misappropriation or fortuitous event.
1.5 We recommend that the accountable officer assigned at SM North post

office to:
a. Refrain from pre-signing ORs and vacating her station without an

authorized representative;
b. Submit an explanation on the above-mentioned observation; and
c. Observe due diligence and professionalism in performing duties and

responsibilities.
2. The reported balance of philatelic stamps and regular postage stamps

differed with the actual count as of July 13, 2021.
2.1 Ms. Loida C. Sabio, as Stamps Custodian, has the following duties and
responsibilities, among others:
a. Handles custody of postage stamps accountability of the post office.

b. Maintains records of postage stamps
c. Issues/releases postage stamps to postal tellers/extension post offices.
d. Analyzes and prepares postage stamps requisitions by the postal tellers.
e. Prepares and submits Monthly stock report of stamps
2.2 After the physical count of the stamps, the audit team reviewed the
Requisition, Invoice and Receipts for Stamps Stocks (RIRSS) and the
Inventory Reports of Accountability for Stamps, Philatelic and Accountable
Forms (IRASPAF) for the movement of the two accountable forms with
money value. Examination disclosed differences between the stamps
accountability, and actual count of philatelic stamps and regular postage
stamps as of July 13, 2021.
2.3 In the course of audit, the audit team, noted that the cause of the variance in
philatelic and regular stamps was, among others, some stamps were reported
in one line item due to its similarity in denomination, however, it comprises
of stamps with different features, hence, resulting in the commingling of
stamps (See Appendix D).
2.1 We recommend that Management require the Stamps Custodian and

Cashier to reconcile the records to identify causes of differences and effect
the adjustments; copy furnished this Office, to avoid similar observation in
the future cash examinations.
3. Deficiencies were noted in the handling of ORs and ARs and Gummed Tapes.
3.1 The Cashier issues ORs and Acknowledgment Receipt (AR) as proof of
receipt of collections and Gummed Tapes for use of Metered Machine. At
the same time, she prepares Inventory Accountability Report for ORs, ARs,
and Gummed Tapes to monitor the movement and balance of said
accountable forms in a month.
3.2 Examination of pertinent financial reports disclosed various situations

showing mistakes/errors in handling the accountable forms including
unlocated ORs and ARs (Appendix E).
3.3 The deficiencies were attributed to the following:
a. ORs are not issued in strict numerical sequence;

b. Wrong extension of computed number of series in the Inventory
Report; and
c. Non-preparation of Inventory Report for the months of June and
October 2017.
3.4 Also, 3,900 ORs for V. Luna Extension with series 101-4000 remain in the
custody of the accountable officer despite the post office being closed since
2019.
3.5 Proper handling and close monitoring of the movement of accountable forms
are necessary to establish its existence; occurrence of transactions; and
accuracy of presented figures in the Inventory Report.
3.6 We recommended that the Stamps Custodian and Cashier to:
a. Locate the missing ORs and ARs for subsequent presentation in the
Office of the Auditor;
b. Issue ORs in strict numerical sequence so that the its unused balance
could be easily determined; and
c. Return the 3,900 ORs for V. Luna Post office to the Stamps Custodian
at Mega Manila, Philippine Postal Corporation to reduce their
accountability and to prevent the misuse thereof.
III. APPENDICES
Appendix A : General Form 74-A

B : Reconciliation Statement of Accountability for
General and Trust Fund
C : Statement of Accountability for Metered Stamps
Reading
D : Statement of Accountability for Accountable
Forms with Money Value
E : Statement of Accountability for Accountable
Forms without Money Value
F : Copy of Office Order No. 2021-001
Prepared by:
MUHAMMAD REZA M. MAMOWALAS

State Auditor II

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Cash Examination Report on the Cash and Accounts of Ms. Catherine A.

II. FINDINGS AND RECOMMENDATIONS

1. Pre-signing of official receipts (ORs) by the accountable officer assigned at

“Norms of Conduct of Public Officials and Employees. - (A) Every

“b) Professionalism. - Public officials and employees shall perform

1.5 We recommend that the accountable officer assigned at SM North post

a. Refrain from pre-signing ORs and vacating her station without an

b. Submit an explanation on the above-mentioned observation; and

c. Observe due diligence and professionalism in performing duties and

2. The reported balance of philatelic stamps and regular postage stamps

a. Handles custody of postage stamps accountability of the post office.

2.1 We recommend that Management require the Stamps Custodian and

3.2 Examination of pertinent financial reports disclosed various situations

3.3 The deficiencies were attributed to the following:

a. ORs are not issued in strict numerical sequence;

3.6 We recommended that the Stamps Custodian and Cashier to:

Appendix A : General Form 74-A

MUHAMMAD REZA M. MAMOWALAS

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