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REVIEW OF AUDITED FINANCIAL STATEMENT MARGOSATUBIG, ZAMBOANGA DEL SUR TEAM NO. 3 AUDIT GROUP F PARTICULARS Yes VI.

AUDITED FINANCIAL STATEMENT (AFS) A. Common to all AFS 1. Are the AFS presented in accourdance with the presciribed format under the Manual of NGASa. BS? b. SIE? c. SCF? 2. Do account titles in the AFS conform to the Revised Chart of Accounts as prescribeda. BS? b. SIE? c. SCF? 3. Are the AFS presented on a comparative basis showing the figues For the preceding yeara. BS? b. SIE? c. SCF? 4. a Are the fgures in the AFS presented in thousand pesos for final CAAR? b. For Individual agency AAR are the figures up to the last centavo? 5. Does the heading of the AFS inculde in the floowoing: a. Department Name, if applicable? b. Official Agency Name? c. Title of AFS d. Period covered of Date of Statement? 6. Is the caption "See accompanying Notes to Financial Statements" indicated at the bottom of the FS? 7. Are Note Reference Numbers enclosed in parenthesis placed beside the particular account titles for easy reference to the notes as illustrated belowCash-Disbursing Officer (Note 1) 8. Are the following steps performed on the AFS: a. Proofread? b. Calculations and footings checked? c. Previous year's figures appearing in the comparative FS checked with the figures in the previous year's CAAR/AAR? B. Balance Sheet (BS) 1. Is the BS preseneted in detailed form? 2. Are the BS accounts properly classified into the follwing: Assets a. Cash b. Recievables?

No

N/A

Remarks

PARTICULARS c. Inventories? d. Prepayments? e. Other Current Assets? f. Investments? g. Property, Plant and Equipment? h. Other Assets Liabilities i. Current Liabilities? j. Long-term Liabilities? k. Deferred Credits? Government Equity l. Prior Year's Adjustments? 3. Does the BS clearly and appropriately show the following items: a. Total Cash? b. Accounts Receivables-Net? (AR less Allowance for D/A) c. Total Reveivables? d. Total Inventories? e. Total Prepayments? f. Total Other Current Assets? g. Total Current Assets? h. Total Investments? i. Total property, Plant and Equipment? j. Property, Plant and Equipment-Net? (PPE less Allowance for Dep'n) k. Total Other Assets? l. Total Assets? m. Total Current Liabilities? n. Total Long-term Liabilities? o. Total Deferred Credits? p. Total Liabilities? q. Government Equity, Beginning? r. Retatined Operations Surplus? s. Current Operations? t. Prior Year's Adjustments? u. PPE - Public Infrastructures? v. Government Equity, Ending? w. Total Liabilities and Equity? 4. In cases separate Statement of Government Equity is prepared, does the amount of Current Opeartions tally with the amount of Excess over Expenses (or vice cash agree with the amount of the cash balance in the 5. Does the total versa) in the SIE? SCF? C. Statement of Income and Statement (SIE) 1. Is the SIE presented in detailed form? 2. Are the SIE accounts properly classifed in the following: Income

Yes

No

N/A

Remarks

PARTICULARS a. Subsidy Income? b. National Taxes? c. Permits and Licenses? d. Service Income? e. Business Income? f. Other Income? Expenses g. Persona Services? h. Maintenance and Other Operating Expenses? i. Financial Expenses? 3. Does the SIE show clearly and appropriately the follwing items: a. Total Subsidy Income? b. Subsidy Income-Net? (Total Subsidy Income less Reversion of Unused NCA) c. Total Income? d. Total Personal Services? e. Total MOOE? f. Total Financial Expenses? i. Total Expenses? j. Excess of Income over Expenses (or vice versa) ? 4. Are Expenses under each allotment class arranged accourding to the NGAS Chart of Accounts? D. Statement of Cash Flow (SCF) 1. Is the SCF prepared in direct form? 2. Does the Cash balance at the end of the year tally with the totalCash in the DBS? 3. Does the SCF segregate cash inflows and outflows for the following: a. Operating Activities? b. Investing Activities? c. Financing Activities? 4. Does the SCF show clearly and appropriately the follwing items; a. Cash Flow from Operating Activities? b. Total Cash Inflows? c. Total Cash Outflows? d. Cash Provided by Operating Activities? 5. Cash flow from Investing Acitivities; a. Total Cash Inflow? b. Total Cash Outflow? c. Cash Provided by Investing Activities? 6. Cash Flow from Financing Activities; a. Total Cash Inflow? b. Total Cash Outflow? 7. Cash Flow from Financing Activities? a. Total Cash Inflow?

Yes

No

N/A

Remarks

PARTICULARS b. Total Cash Outflow? 8. Cash Provided by Financing Activities? 9. Total Cash Provided by Operating, Investing, and Financing Activities? 10. Cash Balance, Beginning? 10 Cash Balance, Ending? E. Notes to Financial Statements (NFS) 1. Does the NFS conform to the Checklist of Notes to Financial Sttements Guide suggested by the Assistant Commissioner, GAFMIS, under her memorandum dated December 27, 2002 which includes among other the following; Agency Profile a. Basis of Financial Statements presentation? b. Offices/units included in consolidated AFS? c. Summary of significant accounting policies? d. Correction of fundamental error's, if any? e. Subsequent events, if any? f. Additional and necessary information on specific accounts? g. Prior Year's Adjustments? h. Subsidy Income from National Government? i. Receipt of NCA? j. Inter-Agency Fund Transfers? k. Proceeds from Sale of PPE, if any? 2. Does the NFS provide information on the following; a. Allotments, Obligations and Balances? b. Income and Receibables recored in the NG books? c. Portion of the NG income collected and remitted to the BTr? VII. Observation and Recommendations 1. Are the deficiencies discussed in the Observations and Recommendations significant enough to warrant inclusion in the AAR? 2. Are the critical accounts identified during the planning conferecence reported on? 3. Are identified critical accounts which audited balances are unqualified, (no deficiencies observed) adequately supported with working papers? 4. Are the significant observations presented or arranged by account starting with real accounts (BS presentation sequence) and ending with nominal accounts (SIE presentation sequence)? 5. Are the observations headed by a one-liner caption follwoed by a topic sentence containing the gist of the criteria, condition, casue and effect?

Yes

No

N/A

Remarks

PARTICULARS 6. Do the support paragraphs contain the statements of conditions (what was wrong), criteria (by what standard it was judged) , cause (why did it happen) and effects on the fair presentation of the AFS? a. Is the statement of condition adequately supproted by competent and relevant audit evidence in the form of working papers? b. Is the reported deficiency (condition) qualified? c. Is the citation of the criteria in the support paragraph correct? d. is the cause of the deficiency clearly stated? e. Is the Office responsible for the process/activity causing the deficiency identified? f. Is the effect of the deficiency quantified? g. Is the effect o the deficiency traceable to the qorking papers? h. Is the reported deficiency traceable to the audit conclusions? i. Does the audit conclusion proceed logically from the results o the audit prcedres performed? j. Does the audit conclusion answer the objectves of the audit program? 7. Are the effects of unacted significant prior year's deficiencies integrated in the current year's observations on the same account balance? 8. Does the recommendation address the real cause of the issue? a. Is it doable? b. Does it state precisely what needs to be changed or rectified? c. Is it directed to the process/activity owner who is capable of taking Aciton on the deficiency? 9. Are Mangement's Comments and the Auditor's Rejoinder, if any, properly presented in the Observations and Recommendations? a. Are the Mangement's comments refuting the observaitons presented in the "Observations" portion? b. Are the Mangement's commentsagreeing to the recommendations presented after the "Recommendations" portion? 10. Have al facts and observations contained in the draft report been cross referenced to the AOM, and the AOM to supporting working papers? 11. Do annexes attached in support of the observations and Recommendations reconcile with the detailed working paper submitted for review?

Yes

No

N/A

Remarks

PARTICULARS VIII. Woking Paper 1. Do working papers adequately; a. describe work performed? b. and support findings and recommendations? 2. Do the figures in the working paapers tally with those presented int eh audit report? 3. Are top schedules for each critical account prepared to summarize all audit adjustments affecting the account? 4. Are working papers; a. neat, orderly and logically arranged? b. indexed at the lower right corner? c. signed & dated by the preparer? d. reviewed by the SA/RCD? e. bound with a cover sheet and a table of contents? 5. Does the working papaers file contain separators with tabs for each account for easy retrieval? 6. Are working papers properly indexed and cross-indexed to the supporting schedules and annexes? 7. Do the WBS and WSIE show a "difference column" representing the adjustments not accepted by Management, that explains the difference between the audited balances appearing therein and the amounts in the final FS submitted by Management? 8. For conslolidated reports, dith e ATL; a. submit the consolidated WBS and WSIE? b. submit a copy of the elimination worksheet preapred by the Accountant for consolidation purposes? c. verify the accuracy of the elimnation worksheet? d. submit the matrix with the following columns; i. Audit Observations ii. Recommendations iii.Management Comments iv. Auditor's Rejoinder IX. Follow-up of Prior Year's Recommendations 1. Are prior year's recommendations as tlifted from the audit report correctly and complety stated in the Matrix of Follow-up of PYRs with indicated references? 2. Does the matrix contatin the following columns; a. Observations and Recommendations? b. Reference (Paragraph Number of the Prior Year's Report(s)? c. Action taken by Mangement? d. Auditor's Validation Results? 3. Is the status of implementation by Mangement indicasted either by "fully implemented", "partially implemented", or not "not implemented"?

Yes

No

N/A

Remarks

PARTICULARS 4. Are the validation procedures performed by the auditor adequate? 5. Does the auditor's opinion consider the effect on current balances of the unacted significant prior years' deficiencies? X. Timeliness 1. For Individual Agency AAR (without consolidation) For NCR Agency a. Does the ATL submit the draft AAR to the CD within the presribed deadline (not later than February 16) ? b. In case the CD requires prior review by the SA of the audit group, does the latter submit eh reviewed draft AAR before dthe deadline set by the CD? For Agency in the Region a. Does the ATL submit the draft AAR to eh RCD within the prescribed deadline (February 16)? 2. For Consolidated AAR a. Does the ATL of the field unit in the regions submit the FAR to the Regioanl ATL or the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. b. Does the Regional ATL of the field unit in the regions submit the FAR to the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. c. Does the RCD transmit reviewed consolidated consolidated Regional FAR to both the CD and the SA of the Auditee-Department/Head Office concerned within the presricbed deadline (March 15)?If no, please indicate the length of delay in terms of d. Does the SA of the audit group concerned submit the draft consolidated AAR to the CD within the prescribed deadline March 31?If no, please indicate the length of delay in terms of working day.

Yes

No

N/A

Remarks

Sheet 8 of 29 REVIEW OF AUDITED FINANCIAL STATEMENT VINCENZO SAGUN, ZAMBOANGA DEL SUR TEAM NO. 3 AUDIT GROUP F PARTICULARS Yes VI. AUDITED FINANCIAL STATEMENT (AFS) A. Common to all AFS 1. Are the AFS presented in accourdance with the presciribed format under the Manual of NGASa. BS? b. SIE? c. SCF? 2. Do account titles in the AFS conform to the Revised Chart of Accounts as prescribeda. BS? b. SIE? c. SCF? 3. Are the AFS presented on a comparative basis showing the figues For the preceding yeara. BS? b. SIE? c. SCF? 4. a Are the fgures in the AFS presented in thousand pesos for final CAAR? b. For Individual agency AAR are the figures up to the last centavo? 5. Does the heading of the AFS inculde in the floowoing: a. Department Name, if applicable? b. Official Agency Name? c. Title of AFS d. Period covered of Date of Statement? 6. Is the caption "See accompanying Notes to Financial Statements" indicated at the bottom of the FS? 7. Are Note Reference Numbers enclosed in parenthesis placed beside the particular account titles for easy reference to the notes as illustrated belowCash-Disbursing Officer (Note 1) 8. Are the following steps performed on the AFS: a. Proofread? b. Calculations and footings checked? c. Previous year's figures appearing in the comparative FS checked with the figures in the previous year's CAAR/AAR? B. Balance Sheet (BS) 1. Is the BS preseneted in detailed form? 2. Are the BS accounts properly classified into the follwing: Assets a. Cash b. Recievables? c. Inventories?

No

N/A

Remarks

PARTICULARS d. Prepayments? e. Other Current Assets? f. Investments? g. Property, Plant and Equipment? h. Other Assets Liabilities i. Current Liabilities? j. Long-term Liabilities? k. Deferred Credits? Government Equity l. Prior Year's Adjustments? 3. Does the BS clearly and appropriately show the following items: a. Total Cash? b. Accounts Receivables-Net? (AR less Allowance for D/A) c. Total Reveivables? d. Total Inventories? e. Total Prepayments? f. Total Other Current Assets? g. Total Current Assets? h. Total Investments? i. Total property, Plant and Equipment? j. Property, Plant and Equipment-Net? (PPE less Allowance for Dep'n) k. Total Other Assets? l. Total Assets? m. Total Current Liabilities? n. Total Long-term Liabilities? o. Total Deferred Credits? p. Total Liabilities? q. Government Equity, Beginning? r. Retatined Operations Surplus? s. Current Operations? t. Prior Year's Adjustments? u. PPE - Public Infrastructures? v. Government Equity, Ending? w. Total Liabilities and Equity? 4. In cases separate Statement of Government Equity is prepared, does the amount of Current Opeartions tally with the amount of Excess over Expenses (or vice versa) in the SIE? 5. Does the total cash agree with the amount of the cash balance in the SCF? C. Statement of Income and Statement (SIE) 1. Is the SIE presented in detailed form? 2. Are the SIE accounts properly classifed in the following: Income a. Subsidy Income? b. National Taxes?

Yes

No

N/A

Sheet 9 of 29 Remarks

PARTICULARS c. Permits and Licenses? d. Service Income? e. Business Income? f. Other Income? Expenses g. Persona Services? h. Maintenance and Other Operating Expenses? i. Financial Expenses? 3. Does the SIE show clearly and appropriately the follwing items: a. Total Subsidy Income? b. Subsidy Income-Net? (Total Subsidy Income less Reversion of Unused NCA) c. Total Income? d. Total Personal Services? e. Total MOOE? f. Total Financial Expenses? i. Total Expenses? j. Excess of Income over Expenses (or vice versa) ? 4. Are Expenses under each allotment class arranged accourding to the NGAS Chart of Accounts? D. Statement of Cash Flow (SCF) 1. Is the SCF prepared in direct form? 2. Does the Cash balance at the end of the year tally with the totalCash in the DBS? 3. Does the SCF segregate cash inflows and outflows for the following: a. Operating Activities? b. Investing Activities? c. Financing Activities? 4. Does the SCF show clearly and appropriately the follwing items; a. Cash Flow from Operating Activities? b. Total Cash Inflows? c. Total Cash Outflows? d. Cash Provided by Operating Activities? 5. Cash flow from Investing Acitivities; a. Total Cash Inflow? b. Total Cash Outflow? c. Cash Provided by Investing Activities? 6. Cash Flow from Financing Activities; a. Total Cash Inflow? b. Total Cash Outflow? 7. Cash Flow from Financing Activities? a. Total Cash Inflow? b. Total Cash Outflow? 8. Cash Provided by Financing Activities?

Yes

No

N/A

Sheet 10 of 29 Remarks

PARTICULARS 9. Total Cash Provided by Operating, Investing, and Financing Activities? 10. Cash Balance, Beginning? 10 Cash Balance, Ending? E. Notes to Financial Statements (NFS) 1. Does the NFS conform to the Checklist of Notes to Financial Sttements Guide suggested by the Assistant Commissioner, GAFMIS, under her memorandum dated December 27, 2002 which includes among other the following; Agency Profile a. Basis of Financial Statements presentation? b. Offices/units included in consolidated AFS? c. Summary of significant accounting policies? d. Correction of fundamental error's, if any? e. Subsequent events, if any? f. Additional and necessary information on specific accounts? g. Prior Year's Adjustments? h. Subsidy Income from National Government? i. Receipt of NCA? j. Inter-Agency Fund Transfers? k. Proceeds from Sale of PPE, if any? 2. Does the NFS provide information on the following; a. Allotments, Obligations and Balances? b. Income and Receibables recored in the NG books? c. Portion of the NG income collected and remitted to the BTr? VII. Observation and Recommendations 1. Are the deficiencies discussed in the Observations and Recommendations significant enough to warrant inclusion in the AAR? 2. Are the critical accounts identified during the planning conferecence reported on? 3. Are identified critical accounts which audited balances are unqualified, (no deficiencies observed) adequately supported with working papers? 4. Are the significant observations presented or arranged by account starting with real accounts (BS presentation sequence) and ending with nominal accounts (SIE presentation sequence)? 5. Are the observations headed by a one-liner caption follwoed by a topic sentence containing the gist of the criteria, condition, casue and effect? 6. Do the support paragraphs contain the statements of conditions (what was wrong), criteria (by what standard it was judged) , cause (why did it happen) and effects on the fair presentation of the AFS?

Yes

No

N/A

Sheet 11 of 29 Remarks

PARTICULARS a. Is the statement of condition adequately supproted by competent and relevant audit evidence in the form of working papers? b. Is the reported deficiency (condition) qualified? c. Is the citation of the criteria in the support paragraph correct? d. is the cause of the deficiency clearly stated? e. Is the Office responsible for the process/activity causing the deficiency identified? f. Is the effect of the deficiency quantified? g. Is the effect o the deficiency traceable to the qorking papers? h. Is the reported deficiency traceable to the audit conclusions? i. Does the audit conclusion proceed logically from the results o the audit prcedres performed? j. Does the audit conclusion answer the objectves of the audit program? 7. Are the effects of unacted significant prior year's deficiencies integrated in the current year's observations on the same account balance? 8. Does the recommendation address the real cause of the issue? a. Is it doable? b. Does it state precisely what needs to be changed or rectified? c. Is it directed to the process/activity owner who is capable of taking Aciton on the deficiency? 9. Are Mangement's Comments and the Auditor's Rejoinder, if any, properly presented in the Observations and Recommendations? a. Are the Mangement's comments refuting the observaitons presented in the "Observations" portion? b. Are the Mangement's commentsagreeing to the recommendations presented after the "Recommendations" portion? 10. Have al facts and observations contained in the draft report been cross referenced to the AOM, and the AOM to supporting working papers? 11. Do annexes attached in support of the observations and Recommendations reconcile with the detailed working paper submitted for review? VIII. Woking Paper 1. Do working papers adequately; a. describe work performed? b. and support findings and recommendations?

Yes

No

N/A

Sheet 12 of 29 Remarks

PARTICULARS 2. Do the figures in the working paapers tally with those presented int eh audit report? 3. Are top schedules for each critical account prepared to summarize all audit adjustments affecting the account? 4. Are working papers; a. neat, orderly and logically arranged? b. indexed at the lower right corner? c. signed & dated by the preparer? d. reviewed by the SA/RCD? e. bound with a cover sheet and a table of contents? 5. Does the working papaers file contain separators with tabs for each account for easy retrieval? 6. Are working papers properly indexed and cross-indexed to the supporting schedules and annexes? 7. Do the WBS and WSIE show a "difference column" representing the adjustments not accepted by Management, that explains the difference between the audited balances appearing therein and the amounts in the final FS submitted by Management? 8. For conslolidated reports, dith e ATL; a. submit the consolidated WBS and WSIE? b. submit a copy of the elimination worksheet preapred by the Accountant for consolidation purposes? c. verify the accuracy of the elimnation worksheet? d. submit the matrix with the following columns; i. Audit Observations ii. Recommendations iii.Management Comments iv. Auditor's Rejoinder IX. Follow-up of Prior Year's Recommendations 1. Are prior year's recommendations as tlifted from the audit report correctly and complety stated in the Matrix of Follow-up of PYRs with indicated references? 2. Does the matrix contatin the following columns; a. Observations and Recommendations? b. Reference (Paragraph Number of the Prior Year's Report(s)? c. Action taken by Mangement? d. Auditor's Validation Results? 3. Is the status of implementation by Mangement indicasted either by "fully implemented", "partially implemented", or not "not implemented"? 4. Are the validation procedures performed by the auditor adequate? 5. Does the auditor's opinion consider the effect on current balances of the unacted significant prior years' deficiencies? X. Timeliness 1. For Individual Agency AAR (without consolidation)

Yes

No

N/A

Sheet 13 of 29 Remarks

PARTICULARS For NCR Agency a. Does the ATL submit the draft AAR to the CD within the presribed deadline (not later than February 16) ? b. In case the CD requires prior review by the SA of the audit group, does the latter submit eh reviewed draft AAR before dthe deadline set by the CD? For Agency in the Region a. Does the ATL submit the draft AAR to eh RCD within the prescribed deadline (February 16)? 2. For Consolidated AAR a. Does the ATL of the field unit in the regions submit the FAR to the Regioanl ATL or the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. b. Does the Regional ATL of the field unit in the regions submit the FAR to the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. c. Does the RCD transmit reviewed consolidated consolidated Regional FAR to both the CD and the SA of the Auditee-Department/Head Office concerned within the presricbed deadline (March 15)?If no, please indicate the length of delay in terms of d. Does the SA of the audit group concerned submit the draft consolidated AAR to the CD within the prescribed deadline March 31?If no, please indicate the length of delay in terms of working day. Reviewed by Checked by

Yes

No

N/A

Sheet 14 of 29 Remarks

___________________________

GENIA TERESITA S. SORIANO- SA IV AUDIT TEAM LEADER

Sheet 15 of 29 REVIEW OF AUDITED FINANCIAL STATEMENT LAPUYAN, ZAMBOANGA DEL SUR TEAM NO. 3 AUDIT GROUP F PARTICULARS Yes VI. AUDITED FINANCIAL STATEMENT (AFS) A. Common to all AFS 1. Are the AFS presented in accourdance with the presciribed format under the Manual of NGASa. BS? b. SIE? c. SCF? 2. Do account titles in the AFS conform to the Revised Chart of Accounts as prescribeda. BS? b. SIE? c. SCF? 3. Are the AFS presented on a comparative basis showing the figues For the preceding yeara. BS? b. SIE? c. SCF? 4. a Are the fgures in the AFS presented in thousand pesos for final CAAR? b. For Individual agency AAR are the figures up to the last centavo? 5. Does the heading of the AFS inculde in the floowoing: a. Department Name, if applicable? b. Official Agency Name? c. Title of AFS d. Period covered of Date of Statement? 6. Is the caption "See accompanying Notes to Financial Statements" indicated at the bottom of the FS? 7. Are Note Reference Numbers enclosed in parenthesis placed beside the particular account titles for easy reference to the notes as illustrated belowCash-Disbursing Officer (Note 1) 8. Are the following steps performed on the AFS: a. Proofread? b. Calculations and footings checked? c. Previous year's figures appearing in the comparative FS checked with the figures in the previous year's CAAR/AAR? B. Balance Sheet (BS) 1. Is the BS preseneted in detailed form? 2. Are the BS accounts properly classified into the follwing: Assets a. Cash b. Recievables? c. Inventories?

No

N/A

Remarks

PARTICULARS d. Prepayments? e. Other Current Assets? f. Investments? g. Property, Plant and Equipment? h. Other Assets Liabilities i. Current Liabilities? j. Long-term Liabilities? k. Deferred Credits? Government Equity l. Prior Year's Adjustments? 3. Does the BS clearly and appropriately show the following items: a. Total Cash? b. Accounts Receivables-Net? (AR less Allowance for D/A) c. Total Reveivables? d. Total Inventories? e. Total Prepayments? f. Total Other Current Assets? g. Total Current Assets? h. Total Investments? i. Total property, Plant and Equipment? j. Property, Plant and Equipment-Net? (PPE less Allowance for Dep'n) k. Total Other Assets? l. Total Assets? m. Total Current Liabilities? n. Total Long-term Liabilities? o. Total Deferred Credits? p. Total Liabilities? q. Government Equity, Beginning? r. Retatined Operations Surplus? s. Current Operations? t. Prior Year's Adjustments? u. PPE - Public Infrastructures? v. Government Equity, Ending? w. Total Liabilities and Equity? 4. In cases separate Statement of Government Equity is prepared, does the amount of Current Opeartions tally with the amount of Excess over Expenses (or vice versa) in the SIE? 5. Does the total cash agree with the amount of the cash balance in the SCF? C. Statement of Income and Statement (SIE) 1. Is the SIE presented in detailed form? 2. Are the SIE accounts properly classifed in the following: Income a. Subsidy Income? b. National Taxes?

Yes

No

N/A

Sheet 16 of 29 Remarks

PARTICULARS c. Permits and Licenses? d. Service Income? e. Business Income? f. Other Income? Expenses g. Persona Services? h. Maintenance and Other Operating Expenses? i. Financial Expenses? 3. Does the SIE show clearly and appropriately the follwing items: a. Total Subsidy Income? b. Subsidy Income-Net? (Total Subsidy Income less Reversion of Unused NCA) c. Total Income? d. Total Personal Services? e. Total MOOE? f. Total Financial Expenses? i. Total Expenses? j. Excess of Income over Expenses (or vice versa) ? 4. Are Expenses under each allotment class arranged accourding to the NGAS Chart of Accounts? D. Statement of Cash Flow (SCF) 1. Is the SCF prepared in direct form? 2. Does the Cash balance at the end of the year tally with the totalCash in the DBS? 3. Does the SCF segregate cash inflows and outflows for the following: a. Operating Activities? b. Investing Activities? c. Financing Activities? 4. Does the SCF show clearly and appropriately the follwing items; a. Cash Flow from Operating Activities? b. Total Cash Inflows? c. Total Cash Outflows? d. Cash Provided by Operating Activities? 5. Cash flow from Investing Acitivities; a. Total Cash Inflow? b. Total Cash Outflow? c. Cash Provided by Investing Activities? 6. Cash Flow from Financing Activities; a. Total Cash Inflow? b. Total Cash Outflow? 7. Cash Flow from Financing Activities? a. Total Cash Inflow? b. Total Cash Outflow? 8. Cash Provided by Financing Activities?

Yes

No

N/A

Sheet 17 of 29 Remarks

PARTICULARS 9. Total Cash Provided by Operating, Investing, and Financing Activities? 10. Cash Balance, Beginning? 10 Cash Balance, Ending? E. Notes to Financial Statements (NFS) 1. Does the NFS conform to the Checklist of Notes to Financial Sttements Guide suggested by the Assistant Commissioner, GAFMIS, under her memorandum dated December 27, 2002 which includes among other the following; Agency Profile a. Basis of Financial Statements presentation? b. Offices/units included in consolidated AFS? c. Summary of significant accounting policies? d. Correction of fundamental error's, if any? e. Subsequent events, if any? f. Additional and necessary information on specific accounts? g. Prior Year's Adjustments? h. Subsidy Income from National Government? i. Receipt of NCA? j. Inter-Agency Fund Transfers? k. Proceeds from Sale of PPE, if any? 2. Does the NFS provide information on the following; a. Allotments, Obligations and Balances? b. Income and Receibables recored in the NG books? c. Portion of the NG income collected and remitted to the BTr? VII. Observation and Recommendations 1. Are the deficiencies discussed in the Observations and Recommendations significant enough to warrant inclusion in the AAR? 2. Are the critical accounts identified during the planning conferecence reported on? 3. Are identified critical accounts which audited balances are unqualified, (no deficiencies observed) adequately supported with working papers? 4. Are the significant observations presented or arranged by account starting with real accounts (BS presentation sequence) and ending with nominal accounts (SIE presentation sequence)? 5. Are the observations headed by a one-liner caption follwoed by a topic sentence containing the gist of the criteria, condition, casue and effect? 6. Do the support paragraphs contain the statements of conditions (what was wrong), criteria (by what standard it was judged) , cause (why did it happen) and effects on the fair presentation of the AFS?

Yes

No

N/A

Sheet 18 of 29 Remarks

PARTICULARS a. Is the statement of condition adequately supproted by competent and relevant audit evidence in the form of working papers? b. Is the reported deficiency (condition) qualified? c. Is the citation of the criteria in the support paragraph correct? d. is the cause of the deficiency clearly stated? e. Is the Office responsible for the process/activity causing the deficiency identified? f. Is the effect of the deficiency quantified? g. Is the effect o the deficiency traceable to the qorking papers? h. Is the reported deficiency traceable to the audit conclusions? i. Does the audit conclusion proceed logically from the results o the audit prcedres performed? j. Does the audit conclusion answer the objectves of the audit program? 7. Are the effects of unacted significant prior year's deficiencies integrated in the current year's observations on the same account balance? 8. Does the recommendation address the real cause of the issue? a. Is it doable? b. Does it state precisely what needs to be changed or rectified? c. Is it directed to the process/activity owner who is capable of taking Aciton on the deficiency? 9. Are Mangement's Comments and the Auditor's Rejoinder, if any, properly presented in the Observations and Recommendations? a. Are the Mangement's comments refuting the observaitons presented in the "Observations" portion? b. Are the Mangement's commentsagreeing to the recommendations presented after the "Recommendations" portion? 10. Have al facts and observations contained in the draft report been cross referenced to the AOM, and the AOM to supporting working papers? 11. Do annexes attached in support of the observations and Recommendations reconcile with the detailed working paper submitted for review? VIII. Woking Paper 1. Do working papers adequately; a. describe work performed? b. and support findings and recommendations?

Yes

No

N/A

Sheet 19 of 29 Remarks

PARTICULARS 2. Do the figures in the working paapers tally with those presented int eh audit report? 3. Are top schedules for each critical account prepared to summarize all audit adjustments affecting the account? 4. Are working papers; a. neat, orderly and logically arranged? b. indexed at the lower right corner? c. signed & dated by the preparer? d. reviewed by the SA/RCD? e. bound with a cover sheet and a table of contents? 5. Does the working papaers file contain separators with tabs for each account for easy retrieval? 6. Are working papers properly indexed and cross-indexed to the supporting schedules and annexes? 7. Do the WBS and WSIE show a "difference column" representing the adjustments not accepted by Management, that explains the difference between the audited balances appearing therein and the amounts in the final FS submitted by Management? 8. For conslolidated reports, dith e ATL; a. submit the consolidated WBS and WSIE? b. submit a copy of the elimination worksheet preapred by the Accountant for consolidation purposes? c. verify the accuracy of the elimnation worksheet? d. submit the matrix with the following columns; i. Audit Observations ii. Recommendations iii.Management Comments iv. Auditor's Rejoinder IX. Follow-up of Prior Year's Recommendations 1. Are prior year's recommendations as tlifted from the audit report correctly and complety stated in the Matrix of Follow-up of PYRs with indicated references? 2. Does the matrix contatin the following columns; a. Observations and Recommendations? b. Reference (Paragraph Number of the Prior Year's Report(s)? c. Action taken by Mangement? d. Auditor's Validation Results? 3. Is the status of implementation by Mangement indicasted either by "fully implemented", "partially implemented", or not "not implemented"? 4. Are the validation procedures performed by the auditor adequate? 5. Does the auditor's opinion consider the effect on current balances of the unacted significant prior years' deficiencies? X. Timeliness 1. For Individual Agency AAR (without consolidation)

Yes

No

N/A

Sheet 20 of 29 Remarks

PARTICULARS For NCR Agency a. Does the ATL submit the draft AAR to the CD within the presribed deadline (not later than February 16) ? b. In case the CD requires prior review by the SA of the audit group, does the latter submit eh reviewed draft AAR before dthe deadline set by the CD? For Agency in the Region a. Does the ATL submit the draft AAR to eh RCD within the prescribed deadline (February 16)? 2. For Consolidated AAR a. Does the ATL of the field unit in the regions submit the FAR to the Regioanl ATL or the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. b. Does the Regional ATL of the field unit in the regions submit the FAR to the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. c. Does the RCD transmit reviewed consolidated consolidated Regional FAR to both the CD and the SA of the Auditee-Department/Head Office concerned within the presricbed deadline (March 15)?If no, please indicate the length of delay in terms of d. Does the SA of the audit group concerned submit the draft consolidated AAR to the CD within the prescribed deadline March 31?If no, please indicate the length of delay in terms of working day. Reviewed by Checked by

Yes

No

N/A

Sheet 21 of 29 Remarks

___________________________

GENIA TERESITA S. SORIANO- SA IV AUDIT TEAM LEADER

Sheet 22 of 29 REVIEW OF AUDITED FINANCIAL STATEMENT MARGOSATUBIG, ZAMBOANGA DEL SUR TEAM NO. 3 AUDIT GROUP F PARTICULARS Yes VI. AUDITED FINANCIAL STATEMENT (AFS) A. Common to all AFS 1. Are the AFS presented in accourdance with the presciribed format under the Manual of NGASa. BS? b. SIE? c. SCF? 2. Do account titles in the AFS conform to the Revised Chart of Accounts as prescribeda. BS? b. SIE? c. SCF? 3. Are the AFS presented on a comparative basis showing the figues For the preceding yeara. BS? b. SIE? c. SCF? 4. a Are the fgures in the AFS presented in thousand pesos for final CAAR? b. For Individual agency AAR are the figures up to the last centavo? 5. Does the heading of the AFS inculde in the floowoing: a. Department Name, if applicable? b. Official Agency Name? c. Title of AFS d. Period covered of Date of Statement? 6. Is the caption "See accompanying Notes to Financial Statements" indicated at the bottom of the FS? 7. Are Note Reference Numbers enclosed in parenthesis placed beside the particular account titles for easy reference to the notes as illustrated belowCash-Disbursing Officer (Note 1) 8. Are the following steps performed on the AFS: a. Proofread? b. Calculations and footings checked? c. Previous year's figures appearing in the comparative FS checked with the figures in the previous year's CAAR/AAR? B. Balance Sheet (BS) 1. Is the BS preseneted in detailed form? 2. Are the BS accounts properly classified into the follwing: Assets a. Cash b. Recievables? c. Inventories?

No

N/A

Remarks

PARTICULARS d. Prepayments? e. Other Current Assets? f. Investments? g. Property, Plant and Equipment? h. Other Assets Liabilities i. Current Liabilities? j. Long-term Liabilities? k. Deferred Credits? Government Equity l. Prior Year's Adjustments? 3. Does the BS clearly and appropriately show the following items: a. Total Cash? b. Accounts Receivables-Net? (AR less Allowance for D/A) c. Total Reveivables? d. Total Inventories? e. Total Prepayments? f. Total Other Current Assets? g. Total Current Assets? h. Total Investments? i. Total property, Plant and Equipment? j. Property, Plant and Equipment-Net? (PPE less Allowance for Dep'n) k. Total Other Assets? l. Total Assets? m. Total Current Liabilities? n. Total Long-term Liabilities? o. Total Deferred Credits? p. Total Liabilities? q. Government Equity, Beginning? r. Retatined Operations Surplus? s. Current Operations? t. Prior Year's Adjustments? u. PPE - Public Infrastructures? v. Government Equity, Ending? w. Total Liabilities and Equity? 4. In cases separate Statement of Government Equity is prepared, does the amount of Current Opeartions tally with the amount of Excess over Expenses (or vice versa) in the SIE? 5. Does the total cash agree with the amount of the cash balance in the SCF? C. Statement of Income and Statement (SIE) 1. Is the SIE presented in detailed form? 2. Are the SIE accounts properly classifed in the following: Income a. Subsidy Income? b. National Taxes?

Yes

No

N/A

Sheet 23 of 29 Remarks

PARTICULARS c. Permits and Licenses? d. Service Income? e. Business Income? f. Other Income? Expenses g. Persona Services? h. Maintenance and Other Operating Expenses? i. Financial Expenses? 3. Does the SIE show clearly and appropriately the follwing items: a. Total Subsidy Income? b. Subsidy Income-Net? (Total Subsidy Income less Reversion of Unused NCA) c. Total Income? d. Total Personal Services? e. Total MOOE? f. Total Financial Expenses? i. Total Expenses? j. Excess of Income over Expenses (or vice versa) ? 4. Are Expenses under each allotment class arranged accourding to the NGAS Chart of Accounts? D. Statement of Cash Flow (SCF) 1. Is the SCF prepared in direct form? 2. Does the Cash balance at the end of the year tally with the totalCash in the DBS? 3. Does the SCF segregate cash inflows and outflows for the following: a. Operating Activities? b. Investing Activities? c. Financing Activities? 4. Does the SCF show clearly and appropriately the follwing items; a. Cash Flow from Operating Activities? b. Total Cash Inflows? c. Total Cash Outflows? d. Cash Provided by Operating Activities? 5. Cash flow from Investing Acitivities; a. Total Cash Inflow? b. Total Cash Outflow? c. Cash Provided by Investing Activities? 6. Cash Flow from Financing Activities; a. Total Cash Inflow? b. Total Cash Outflow? 7. Cash Flow from Financing Activities? a. Total Cash Inflow? b. Total Cash Outflow? 8. Cash Provided by Financing Activities?

Yes

No

N/A

Sheet 24 of 29 Remarks

PARTICULARS 9. Total Cash Provided by Operating, Investing, and Financing Activities? 10. Cash Balance, Beginning? 10 Cash Balance, Ending? E. Notes to Financial Statements (NFS) 1. Does the NFS conform to the Checklist of Notes to Financial Sttements Guide suggested by the Assistant Commissioner, GAFMIS, under her memorandum dated December 27, 2002 which includes among other the following; Agency Profile a. Basis of Financial Statements presentation? b. Offices/units included in consolidated AFS? c. Summary of significant accounting policies? d. Correction of fundamental error's, if any? e. Subsequent events, if any? f. Additional and necessary information on specific accounts? g. Prior Year's Adjustments? h. Subsidy Income from National Government? i. Receipt of NCA? j. Inter-Agency Fund Transfers? k. Proceeds from Sale of PPE, if any? 2. Does the NFS provide information on the following; a. Allotments, Obligations and Balances? b. Income and Receibables recored in the NG books? c. Portion of the NG income collected and remitted to the BTr? VII. Observation and Recommendations 1. Are the deficiencies discussed in the Observations and Recommendations significant enough to warrant inclusion in the AAR? 2. Are the critical accounts identified during the planning conferecence reported on? 3. Are identified critical accounts which audited balances are unqualified, (no deficiencies observed) adequately supported with working papers? 4. Are the significant observations presented or arranged by account starting with real accounts (BS presentation sequence) and ending with nominal accounts (SIE presentation sequence)? 5. Are the observations headed by a one-liner caption follwoed by a topic sentence containing the gist of the criteria, condition, casue and effect? 6. Do the support paragraphs contain the statements of conditions (what was wrong), criteria (by what standard it was judged) , cause (why did it happen) and effects on the fair presentation of the AFS?

Yes

No

N/A

Sheet 25 of 29 Remarks

PARTICULARS a. Is the statement of condition adequately supproted by competent and relevant audit evidence in the form of working papers? b. Is the reported deficiency (condition) qualified? c. Is the citation of the criteria in the support paragraph correct? d. is the cause of the deficiency clearly stated? e. Is the Office responsible for the process/activity causing the deficiency identified? f. Is the effect of the deficiency quantified? g. Is the effect o the deficiency traceable to the qorking papers? h. Is the reported deficiency traceable to the audit conclusions? i. Does the audit conclusion proceed logically from the results o the audit prcedres performed? j. Does the audit conclusion answer the objectves of the audit program? 7. Are the effects of unacted significant prior year's deficiencies integrated in the current year's observations on the same account balance? 8. Does the recommendation address the real cause of the issue? a. Is it doable? b. Does it state precisely what needs to be changed or rectified? c. Is it directed to the process/activity owner who is capable of taking Aciton on the deficiency? 9. Are Mangement's Comments and the Auditor's Rejoinder, if any, properly presented in the Observations and Recommendations? a. Are the Mangement's comments refuting the observaitons presented in the "Observations" portion? b. Are the Mangement's commentsagreeing to the recommendations presented after the "Recommendations" portion? 10. Have al facts and observations contained in the draft report been cross referenced to the AOM, and the AOM to supporting working papers? 11. Do annexes attached in support of the observations and Recommendations reconcile with the detailed working paper submitted for review? VIII. Woking Paper 1. Do working papers adequately; a. describe work performed? b. and support findings and recommendations?

Yes

No

N/A

Sheet 26 of 29 Remarks

PARTICULARS 2. Do the figures in the working paapers tally with those presented int eh audit report? 3. Are top schedules for each critical account prepared to summarize all audit adjustments affecting the account? 4. Are working papers; a. neat, orderly and logically arranged? b. indexed at the lower right corner? c. signed & dated by the preparer? d. reviewed by the SA/RCD? e. bound with a cover sheet and a table of contents? 5. Does the working papaers file contain separators with tabs for each account for easy retrieval? 6. Are working papers properly indexed and cross-indexed to the supporting schedules and annexes? 7. Do the WBS and WSIE show a "difference column" representing the adjustments not accepted by Management, that explains the difference between the audited balances appearing therein and the amounts in the final FS submitted by Management? 8. For conslolidated reports, dith e ATL; a. submit the consolidated WBS and WSIE? b. submit a copy of the elimination worksheet preapred by the Accountant for consolidation purposes? c. verify the accuracy of the elimnation worksheet? d. submit the matrix with the following columns; i. Audit Observations ii. Recommendations iii.Management Comments iv. Auditor's Rejoinder IX. Follow-up of Prior Year's Recommendations 1. Are prior year's recommendations as tlifted from the audit report correctly and complety stated in the Matrix of Follow-up of PYRs with indicated references? 2. Does the matrix contatin the following columns; a. Observations and Recommendations? b. Reference (Paragraph Number of the Prior Year's Report(s)? c. Action taken by Mangement? d. Auditor's Validation Results? 3. Is the status of implementation by Mangement indicasted either by "fully implemented", "partially implemented", or not "not implemented"? 4. Are the validation procedures performed by the auditor adequate? 5. Does the auditor's opinion consider the effect on current balances of the unacted significant prior years' deficiencies? X. Timeliness 1. For Individual Agency AAR (without consolidation)

Yes

No

N/A

Sheet 27 of 29 Remarks

PARTICULARS For NCR Agency a. Does the ATL submit the draft AAR to the CD within the presribed deadline (not later than February 16) ? b. In case the CD requires prior review by the SA of the audit group, does the latter submit eh reviewed draft AAR before dthe deadline set by the CD? For Agency in the Region a. Does the ATL submit the draft AAR to eh RCD within the prescribed deadline (February 16)? 2. For Consolidated AAR a. Does the ATL of the field unit in the regions submit the FAR to the Regioanl ATL or the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. b. Does the Regional ATL of the field unit in the regions submit the FAR to the RCD within the prescribed period?If no, please indicate the length of delay in terms of working days in the " Remarks" column. c. Does the RCD transmit reviewed consolidated consolidated Regional FAR to both the CD and the SA of the Auditee-Department/Head Office concerned within the presricbed deadline (March 15)?If no, please indicate the length of delay in terms of d. Does the SA of the audit group concerned submit the draft consolidated AAR to the CD within the prescribed deadline March 31?If no, please indicate the length of delay in terms of working day. Reviewed by Checked by

Yes

No

N/A

Sheet 28 of 29 Remarks

___________________________

GENIA TERESITA S. SORIANO- SA IV AUDIT TEAM LEADER

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