Continuation of State Universities and Colleges are Haunted by COA's 2009 Audits into their Financial Expenditures (A Series of Articles co-located on one (1) continuously updated link): 1. Polytechnic University of the Philippines

1. Polytechnic University of the Philippines (continued)

COA said that PUP officials agreed to “comply strictly with the provisions of COA Circular No. 97-002 dated February 10, 1997 on the grant, utilization and liquidation of cash advances; to issue demand letters to accountable officers with long outstanding cash advances and enforce salary deduction, when necessary to ensure liquidation, and to avoid being reported to appropriate agencies for the filing of charges in accordance with COA Memoranda Nos. 2004-014 dated February 24, 2004 and 2005-074 dated September 15, 2005.” PUP officials also agreed to require the accountable officers with dormant Petty Cash Funds to immediately liquidate said funds in their possessions.

But the procedural lapses in the billing, collection and monitoring of the University’s income generating project’s (IGP) operations resulted in PhP 13 million accumulated receivables, non-recording of PhP 1.7 million thereof and possible losses of PhP 10.8 million due to bad debts from delinquent or absconding concessionaires, hindering the University’s capability to generate additional funds, COA said in its report.

COA recommended that the Business Relations Office furnish the Accounting Office with complete rental contracts issued to concessionaires in all PUP-Branches including subsequent changes; and strictly monitor collections and adopt strict measures by disconnecting utilities of delinquent tenants and coordinate such actions with the Accounting Office.

Likewise, COA required the Accounting Office to: (a) issue billing statements to all concessionaires in the main campus and demand letters to delinquent lessees or tenants and to monitor collections or settlements thereof by maintaining complete and updated subsidiary ledgers; (b) set up receivables as income are realized and to determine and record unbooked receivables

A total of PhP 1.1 million unauthorized expenses for the University Governing Board’s honoraria/per diem was incurred from CY 2004-2009 as payments thereof were in excess of the limit prescribed under DBM Circular No. 2003-6 dated September 29, 2003, COA said.

COA recommended that the PUP administration require the members of the Governing Board refund the honoraria/per diem received in excess of the limit prescribed under DBM Budget Circular Nos.2003-5 and 2003-6; and to adhere strictly to the rates prescribed in the said DBM budget circulars in the payment of honoraria and per diem, as the case may be.

A review of the Student Financial Assistance Program’s (STUFAP) implementation likewise disclosed an absence of records to adequately monitor student borrowers after graduation, hence, affecting the capacity of the University to provide continuous funds to sustain the Program.

COA recommended and management agreed to: (a) revisit the loan agreements entered into with the student borrowers to determine the university official/s responsible of the stipulated repayment period which was not uniformly applied and did not conform to CHED Memorandum Order No. 4, series 2004 which could have contributed to the very low rate of loan repayment; (b) require the STUFAP to maintain and up-date their borrowers’ records and extensively monitor their whereabouts and employment status, and issue demand letters to all student-borrowers and their co-makers/guarantors and to coordinate with their relatives or friends some of whom may be employed in the University to establish the whereabouts of the borrowers/grantees; (c) submit to CHED the required reports as stipulated in the Memorandum of Agreement; and (d) review the provisions of the loan agreements with students and see to it that it includes clear and detailed program implementation, repayment scheme with established dates whey repayment will commence, including the manner of payment to allow other student borrowers to avail of the program.


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State Universities and Colleges are Haunted by COA's 2009 Audits into their Financial Expenditures (A Series of Articles co-located on one (1) continuously updated link)