OBSERVATIONS AND RECOMMENDATIONS

A. Financial and Compliance Audit

No Official Receipt or Sales Invoice

1. Of the audited 174 selected transactions for the accounts Training and
Representation Expenses, 112 or 64.37 percent amounting to ₱13,369,922.64
were not supported with the required OR or SI from suppliers/service providers
required for in Item 3.8 of DBM Circular Letter No. 2018-14 dated December
28, 2018, and Section 4 of PD No. 1445.

Review of the 174 selected training and representation expenses showed that
112 transactions or 64.37 percent amounting to ₱13,369,922.64 were not supported
with OR/SI from the suppliers/service providers, as shown below:

Account Transactions No OR/SI Amount

Selected
Training Expenses 25 18 2,217,140.00
Representation Expenses 149 94 11,152,782.64
Total 174 112 13,369,922.64
64.37%

Item 3.8 of DBM Circular Letter No. 2018-14 dated December 28, 2018
reminded National Government Agencies (NGAs) to require their creditors to issue
ORs or Sales Invoice, as follows:

Consistent with accounting and auditing rules and regulations, the

NGAs are reminded to require their creditors to issue Official
Receipts (ORs) or Sales Invoice as evidence of receipt of payment
through LLDAP-ADA and SLIIE or MDS check.

While Section 4(6) of the PD No. 1445 requires that “Claims against
government funds shall be supported with complete documentation”.

The basic presumption of government spending is that money belonging to the

public shall not be spent for private ends; and to show that disbursement is for public
purpose and is a valid government expense, it must be supported with complete
documentation.

Inquiry with personnel tasked to monitor the ORs and SIs disclosed that most
of the ORs and SIs are already in their custody; however, due to the volume of
transactions and workloads, they claimed that they were unable to attach the ORs and
SIs to the JEVs and DVs. They committed to submit the supporting documents after
the finalization and completion of their year-end reports.
35
 As provided by Section 53, Chapter 6, Volume I of Government Accounting
Manual (GAM), the Cashier should monitor the issue of ORs or other acceptable
evidences of receipt of payments by the creditors/payees.

The absence of ORs/SIs made the validation of the authenticity and legality of
payments difficult or could not be made at all.

We recommended that Management:

a. Require the Accountant to attach the ORs/SIs and all other

necessary documents to the JEVs and DVs to support the agency’s
disbursements, in strict compliance with laws, rules and regulations;
and

b. Henceforth, require the Cashier to monitor the submission of ORs

and SIs of service providers and suppliers, and that these are
appropriately attached to the JEVs and DVs.

On June 24, 2020, Management together with their reply submitted the
ORs/SIs of 62 transactions totaling ₱7,447,935.40, and copy of Bank-Validated
Advice to Debit Account (ADA) of 39 transactions totaling ₱4,126,335.00 as proof
of payment while still securing the required ORs. The ORs/SIs of 11 transactions
totaling ₱1,795,652.24 are still being followed-up.

Management explained that the delays are caused by some suppliers that do
not issue ORs until the amounts paid through electronic fund transfers have been
credited in their respective accounts. Transfers made from the Landbank (the servicing
bank of OVP) to another bank usually takes weeks before the amounts are credited to
the payee.

Management assured that they remain committed to the monitoring and

submission of ORs and/or SIs of service providers and suppliers in compliance with
laws, rules, and regulations.

Undisposed Unserviceable and Defective Equipment

2. The undisposed unserviceable/defective PPE totaling ₱6,463,657.20 in CY 2019

could generate income for the government from sale thereof, and the space
utilized for other purposes.

Properties to be considered unserviceable shall be when it is no longer capable

of providing the entity with future economic benefits or service potential. Section
40, Chapter 10, Volume I of GAM provides, as follows:

36
 All unserviceable property shall be reported in the Inventory and
Inspection Report of Unserviceable Property (IIRUP). PPE reported
in the IIRUP shall be dropped from the books by debiting
Impairment Loss-Property, Plant and Equipment (cost of the PPE
less Accumulated Depreciation).

Review of the agency’s RPCPPE disclosed that several equipment under the
following PPE sub-accounts costing ₱6,463,657.20 were unserviceable as at
December 31, 2019:

PPE Sub-Account Description Cost (₱)

Office Equipment 2 units Olympia, Compact 5 Typewriter 40,300.00
4 units Heavy Duty, Martin Yale Paper 75,000.00
Shredder
1 unit Finger Printing Device 62,000.00
1 unit Risograph 210,000.00
Subtotal 387,300.00
ICT Equipment 20 units Personal Computer, Set 655,092.40
8 units Laptop Computer 151,633.92
2 units port switches 87,100.00
2 units Printer 49,495.00
1 unit Cisco Router 15,881.00
1 unit Windows 8 Tablet 31,000.00
Subtotal 990,202.32
Communication 1 set Digital Conference System 65,875.00
Equipment
Subtotal
Other Machinery 2 sets/units Camera 417,630.00
and Equipment 1 pc. Camera Flash 24,888.88
1 set Handycam 152,000.00
Subtotal 594,518.88
Motor Vehicles 1 unit Isuzu Crosswind 989,546.00
1 unit 2013 Ford Expedition 3,195,000.00
Subtotal 4,184,546.00
Other PPE 9 pcs. Microphone 148,325.00
1 unit Motorized Projector Screen 34,000.00
1 set Speakers 24,700.00
1 unit Television 34,190.00
Subtotal 241,215.00
Total 6,463,657.20

These unserviceable properties were not reported in an IIRUP as required in

Section 79 of PD No. 1445; hence, remained undisposed as at December 31, 2019.

Section 97 of the above mentioned PD provides that when government

property has become unserviceable for any cause, or is no longer needed, it shall,
upon application of the officer accountable therefore, be inspected by the head of the

37
 agency or his duly authorized representative in the presence of the auditor concerned
and, if found to be valueless or unsaleable, it may be destroyed in their presence. If
found valuable, it may be sold at public auction to the highest bidder.

The Handbook on Property and Supply Management System would guide the
agency in the identification of properties subject to disposal, the mode of disposal,
and the procedures of disposal. Subsequently, the Accounting Division should
derecognize the disposed properties, in accordance with Section 39, Chapter 10,
Volume I of GAM, as follows:

Derecognition. The cost of the PPE together with the related

accumulated depreciation and accumulated impairment loss shall be
removed from the accounts. The carrying amount of an item of PPE
shall be derecognized on disposal or when no future economic
benefits or service potential is expected from its use or disposal. The
following are the policies on the disposal of PPE:

xxx
d. A JEV shall be prepared by the Accounting Division/Unit to
derecognize the asset from the books of accounts only after
its disposal.
xxx

The delayed disposal exposes these unserviceable properties to further

deterioration, which deprives the government of any benefit/income that can be
derived from their sale, not to mention the benefit of utilizing the occupied space that
would be freed.

This is a reiteration of CY 2018 observation; however, Management did not

comply with the audit recommendation to dispose the unserviceable/defective assets.

As per Management, the scheduled disposal of the unserviceable PPEs in

March 2020 was not able to push through due to the pandemic. Nevertheless, the
Management renewed its commitment to pursue the disposal as soon as the situation
improves.

We recommended and Management agreed to instruct the PO to exclude

the unserviceable properties from the RPCPPE and report them in the IIRUP,
and facilitate their disposal the soonest possible time, with the proper approval
of the respective members of the Disposal Committee.

Procurement of advocacy materials unnecessary

3. Advocacy materials totaling ₱855,750.00 were not utilized on the specific dates
for which these were intended due to gaps in procurement process and not

38
immediately submitting the approved sample of the advocacy materials to the
supplier, which impact on the necessity of the materials at that time.

Our review of the account Other Supplies and Materials for Distribution
revealed procurement of supplies intended for scheduled OVP events dated August
and September 2018, worth ₱855,750.00, as detailed below:

Per FY 2018 Supplemental Procurement Plan No. 18 Per Contract/PO

Procurement Estimated Description of Contract Amount Items
Project Budget Project Procured
Supply and 393,100.00 Provision of advocacy PO No. 08- 246,750.00 Polo Shirt,
Delivery of materials for various 155-18 T- Shirt,
Advocacy Materials OVP events for (August String Bag,
(Small Value August and 22, 2018) Tote Bag
Procurement) September 2018.
Supply and 610,000.00 Provision of advocacy Contract 609,000.00 Polo Shirt,
Delivery of materials for various dated T- Shirt,
Advocacy Materials OVP events for October String Bag,
(Bidding) August and 22, 2018 Tote Bag
September 2018.
Total 1,003,100.00 855,750.00

The projects were for events scheduled in August and September 2018,
however, as seen in the above Table, the Contracts were awarded only on August 22
and October 22, 2018. In addition, the delivery dates indicated in the Technical
Specifications is “within 30 calendar days” and “within 5 calendar days” upon
approval of the sample items, which means on or about October 2018.

In this manner, the required items would not be delivered on time to serve their
purpose. Nonetheless, the contracts pushed through, and ₱800,100.00 worth of
supplies were delivered way beyond the scheduled OVP events, while the remaining
₱55,650.00 is yet to be delivered, as detailed below:

Items Delivered Date of Delivery Amount

For PO No. 08-155-18 dated August 22, 2018
450 pcs. Tote Bag October 2, 2018 45,000.00
134 pcs. T-Shirt A October 8, 2018 22,780.00
66 pcs. T-Shirt A February 18, 2019 11,220.00
242 pcs. T-Shirt B March 8, 2019 39,930.00
107 pcs. T-Shirt B April 15, 2019 17,655.00
1 pc. T-Shirt B May 20, 2019 165.00
130 pcs. Polo Shirt A May 28, 2019 39,000.00
125 pcs. Polo Shirt B July 24, 2019 30,000.00
410 pcs. String Bag September 4, 2019 41,000.00
Total 246,750.00

For Contract dated October 22, 2018

132 pcs. T-shirt A November 10, 2018 23,760.00
October 31, 2018

39
 Items Delivered Date of Delivery Amount
October 24, 2018
497 pcs. Tote Bag October 31, 2018 49,700.00
October 29, 2018
47 pcs. Polo Shirt B October 24, 2018 13,160.00
120 pcs. Polo Shirt B October 24, 2018 33,600.00
338 pcs. T-Shirt A March 8, 2019 60,840.00
180 pcs. T-Shirt B March 8, 2019 32,400.00
80 pcs. Polo Shirt C May 28, 2019 28,000.00
July 3, 2019
49 pcs. Polo Shirt A June 4, 2019 17,150.00
133 pcs. Polo Shirt B June 28, 2019 37,240.00
625 pcs. Polo Shirt D July 24, 2019 175,000.00
50 pcs. Tote Bag September 17, 2019 5,000.00
244 pcs. String Bag October 9, 2019 24,400.00
250 pcs. String Bag December 7, 2019 25,000.00
173 pcs. String Bag December 13, 2019 17,300.00
108 pcs. String Bag December 23, 2019 10,800.00
Total 553,350.00
Total Delivery 800,100.00
Total Contract Price 855,750.00
Undelivered supplies 55,650.00

Interview revealed that the delay was aggravated by the failure of the agency
to immediately submit the approved sample of the advocacy materials.

The PO claimed that due to the urgency of the event, the alternative mode
“Small Value Procurement” was employed in order for the items to be immediately
delivered, to no avail. However, it was further claimed that the items were used
instead for the other advocacy events of OVP in CY 2019.

Further, Management commented that pursuant to the policy on bulk purchase,

the Project Procurement Management Plan (PPMP) reflects indicative quantities of
advocacy materials to be used throughout the year. The requirement was based on
planned OVP events and target number of participants as of date of PPMP. While
not all OVP events are conducted per the initial schedule of events submitted with
PPMP, all advocacy materials delivered were accordingly utilized for OVP events.

We recommended and Management agreed, henceforth, to plan and process

judiciously all procurement activities of the agency.

B. Performance Audit

Unutilized funds for Medical Assistance Program totaled ₱195,088,333.27

4. A total of ₱195,088,333.27 MAP fund, which is substantially composed of

amounts transferred to several hospitals under the GL arrangement, have not
40
yet been utilized as of December 31, 2019. This resulted in lesser than the
expected number of patients assisted through hospital fund transfers during the
year. The unutilized fund was idle for the rest of the fiscal year contrary to
Section 2 of PD No. 1445 on the efficient management of funds.

As part of its continuous pursuit of dedicated service to Filipinos, OVP tasked

its Public Assistance Division (PAD) to oversee the implementation of OVP’s MAP,
which supplements other government healthcare programs that assist poor,
marginalized, vulnerable, and disadvantaged individuals.

Under the old guidelines, medical assistance is deposited directly to the bank
account of the client through the List of Due and Demandable Accounts-Advice to
Debit Account (LDDAP-ADA).

Medical assistance may be granted in any of the following cases, with the
corresponding equivalent amount of grant:

Table 1:
Case Type Maximum Amount
per request
Chemotherapy/Radiation/Branchy 25,000.00
Therapy
Operation/Surgery/Transplant 15,000.00
Hospitalization 15,000.00
Hemodialysis 10,000.00
Implant (General) 10,000.00
Laboratory/Diagnostic Procedure 5,000.00
Medicines (one month’s supply 5,000.00
whichever is lower)

To improve the scope and quality of the assistance provided, and align it with
the best practices of other agencies with similar programs, OVP, in CY 2019 issued
Office Order No. 2019-10 dated August 15, 2019, revising the old guidelines on the
provision of medical assistance.

Accordingly, a Service Delivery Network was established to enable OVP to:

(a) Grant assistance through GL, instead of cash, in partnership with Service
Providers (i.e. hospitals, dialysis centers, specialized clinics, drug stores,
medical equipment companies) from both the public and the private
sectors to ensure that grants are used for their declared purpose;

(b) Decentralize the uncontrollable build-up of crowds during queuing in the

issuance of appointment schedules; and

41
 (c) Adopt a systematic and targeted approach for identifying and assisting
individuals who require further assistance on top of the healthcare
programs of DOH, DSWD, PhilHealth, PCSO, and LGUs.

The revised guidelines provide medical assistance not exceeding ₱20,000.00

to each qualified individual in the form of:

(a) GL for payment of hospital bills to Hospitals-Service Provider within

OVP’s Service Delivery Network (hospitals which OVP has Credit Lines
or Transferred Funds);

(b) Direct fund transfers to Hospitals-Service Provider outside OVP’s

Service Delivery Network through LDDAP-ADA; or

(c) Medicines and/or medical equipment.

To fully understand the changes from the old to the revised guideline, a
comparison is shown in the table below:

Table 2:
Particulars New Guidelines Old Guidelines
1. Amount of medical Not exceeding ₱20,000.00, regardless ₱5,000.00 to ₱25,000.00 depending
assistance per client of the case type on the case type
2. Manner of grant (1) GL (1) Direct deposit to the client’s
(2) Direct fund transfer bank account
(3) Medicines and/or Medical (2) Medicines and/or Medical
Equipment Equipment
3. Frequency of request Once every 12 months Every six (6) months
4. Procedural Guidelines  Appointment Schedule for an  Appointment Schedule for an
and Documentary interview: interview:
Requirements  Written endorsement from the  First Come, First Serve bases
Service Provider is needed. without a need of presenting any
document yet.
 Documentary Requirements to be  Documentary Requirements to be
presented during the interview: presented during the interview:
a.) Letter Request a.) Letter Request
b.) Written endorsement from the
Service Provider
c.) OVP Medical Assistance b.) OVP Medical Assistance
Application Form Application Form
d.) Social Case Study Report c.) Social Case Study Report
e.) Valid Government Issued ID of d.) Valid Government Issued ID of
Client or his/her authorized patient, authorized
representative representative, and bank
account holder
f.) Medical Records (e.g. Clinical e.) Medical Records (e.g. Clinical
Abstract, Medical Certificate) Abstract, Medical Certificate);

42
 Particulars New Guidelines Old Guidelines
f.) Latest Bank Deposit Slip and a
photocopy of ATM/Passbook/
Bank Statement to where the
payment of the medical
assistance thru LDDAP will be
sent; and
g.) Additional Requirements g.) Additional Requirements
depending on the Case Type depending on the Case Type
(Treatment protocol, estimated (Treatment protocol, estimated
cost of operation, statement of cost of operation, statement of
account, promissory note, price account, promissory note, price
quotation, etc.) quotation, etc.)

 If the application is in order, OVP  If the application is in order, PAD

shall issue the Client with a GL Officer shall advise the Applicant
addressed to the Service Provider. of the approval and the
 The Service Provider shall provide approximate date of the fund
medical assistance to Client upon transfer.
presentation of GL issued by OVP,
and verification on the details of GL
presented.

The agency’s CY 2019 Accomplishment Report showed a total disbursement

of ₱317,923,349.51 for MAP. However, the Budget Division clarified that this
amount included the total amount transferred or obligated to government hospitals
whether or not actually utilized or delivered to clients at year-end.

The following Table compares the actual utilization of the CY 2019 medical
assistance versus the agency’s reported Accomplishment Report:

Table 3:
Particulars Recorded Obligation Amount Actually
(Accomplishment Utilized
Report) (Per Audit)
1. Individual Fund Transfer (Prior to New 37,911,771.61 34,640,255.47
Guidelines)
2. Medicines, Laboratory, Diagnostics 3,203,222.30 3,203,222.30
granted through Petty Cash Fund
3. Credit Line Agreement (Within OVP’s 25,808,355.60 25,903,344.96
Service Network Provider)
4. Hospital Fund Transfer 251,000,000.00 55,809,798.22
5. Hospitals Outside OVP’s Service - 3,278,395.29
Network Provider
Total 317,923,349.51 122,835,016.24
Balance Unutilized/Undelivered 195,088,333.27

43
 As can be seen in Table 3, only ₱122,835,016.24 or 38.64 percent of the funds
obligated were actually utilized/delivered to clients as at December 31, 2019. The
low utilization of the obligated funds resulted in having idle funds for the rest of the
fiscal year, contrary to the efficient management of funds under Section 2 of PD No.
1445, to wit:

It is the declared policy of the State that all resources of the

government shall be managed, expended or utilized in accordance
with law and regulations, and safeguarded against loss or wastage
through illegal or improper disposition, with a view to ensuring
efficiency, economy and effectiveness in the operations of
government. The responsibility to take care that such policy is
faithfully adhered to rests directly with the chief or head of the
government agency concerned.

Table 3 also shows that the bigger chunk of the unutilized fund comes from
Hospital Fund Transfer, which pertains to fund transfers and funds obligated to
Government Hospitals-Implementing Agencies to pay for the GLs being provided to
qualified individuals. Of the ₱251,000,000.00, only 22.23 percent or ₱55,809,798.22
was utilized as at December 31, 2019, with the following details:

Table 4:
Particulars Funds Obligated Utilization Utilization
or Transferred Rate
Fund Transfer to Various Hospitals in 40,000,000.00 35,191,778.53 87.99%
June to July 2019
Fund Transfer to Various Hospitals in 77,000,000.00 20,618,019.69 26.78%
August to September 2019
Fund Transfer to Various Hospitals in 42,000,000.00 - 0%
December 2019
Obligated funds not yet transferred to 92,000,000.00 - 0%
Implementing Agencies-Hospitals as
at December 31, 2019
Total 251,000,000.00 55,809,798.22 22.23%

At first glance of Table 4, the low utilization could be attributed to the timing
of the transfer of the ₱42,000,000.00 only in December of 2019. However, even
without the transfer, there is still only 26.78 percent utilization for the ₱77,000,000.00
that was transferred earlier in August to September 2019; hence it would seem that
the new guideline issued in August 2019, supposedly to improve the scope and
quality of the assistance provided, did not make an impact in the last quarter of the
year.

As per Management, as of March 2020, the cumulative utilization of their CY

2019 MAP is already at ₱176,575,626.84 with total beneficiaries of 12,763.

44
 The following certain conditions were noted, that may have affected the
implementation of the program and consequently, the timely and efficient utilization
of appropriated funds:

a) Grant of medical assistance has been suspended during the election ban.
Management asserted that OVP requested COMELEC for an exemption as
early as January 10, 2019, but to no avail;

b) Changes in the frequency of grant meant a longer period for a client to repeat
a request;

c) Changes in the procedural guidelines and documentary requirements as

enumerated in Table 2. Additionally, the mentioned written endorsement
should contain the following:

 Name and contact details of Client

 Assistance already received by Client from other healthcare programs and
charity funds
 Type of medical service or goods already provided/ requested
 Availability of medical service or goods
 Cost of medical service or goods
 Recommended amount of assistance to be provided by OVP
 Certification that:
 Client is most in need of OVP assistance
 Client has complied with the requirements of the Service Provider
 Client agrees to sharing sensitive personal information with OVP

d) Limited access to OVP’s medical assistance. OVP’s medical assistance mostly

caters client-beneficiaries residing or hospitalized in Metro Manila area. Under
the new guidelines, although there are Service Network Provider in the
provinces, only a few were able to avail medical assistance through direct fund
transfers to Hospitals outside OVP’s Service Network Provider since most
private hospitals do not accept payments through GL or LDDAP-ADA due to
delays in the receipt of payment.

To illustrate how the above-stated certain conditions affected the MAP, a

comparative data from the last year’s grant versus this year is shown in the table
below:

Table 5:
Condition Period CY 2018 CY 2019 Decrease Percentage
of Decrease
a) Due to Election ban
March 11,475,859.15 7,499,259.07 3,976,600.08 34.65
April 13,024,613.84 - 13,024,613.84 100.00

45
Condition Period CY 2018 CY 2019 Decrease Percentage
of Decrease
May 24,536,023.16 1,617,850.00 22,918,173.16 93.41
Total 49,036,496.15 9,117,109.07 39,919,387.08 81.41
b) and c) Due to Change in guidelines/procedures
September to 71,781,898.72 70,095,489.50 1,686,409.22 2.35
December

From the comparison made, it is clear that the election ban greatly affected the
grant of medical assistance.

Management claimed that as compared to last election ban in CY 2016, the CY

2019 utilization shows improvement, as follows:

Table 6:
2016 2017 2018 2019
*Amount Allotted 125,735,907.71 388,413,395.27 196,303,650.88 317,923,349.51
Amount Utilized 93,163,086.10 230,891,688.33 175,705,673.53 **176,575,626.84
Percentage 74.09 59.44 89.51 55.54
Beneficiaries 7,921 ***18,697 14,456 12,763
* Based on recorded obligation
** Utilization as of March 2020
*** Includes unutilized funds from CY 2016 and repeat clients under 6-
month eligibility policy

However, with the failure to obtain an exemption from COMELEC in 2016,

OVP should already have taken into account the effects of not having an exemption
in 2019; thus, could have prevented the low utilization of budget for its MAP.

On the changes in the procedural guidelines and documentary requirements,

and the limited accessibility of MAP under the new guidelines, Management
explained that the primary objective of the shift in the policy from a “cash-based” to
a “guarantee letter” is to ensure that the medical assistance could redound to the most
in need and those outside the Metro Manila. While the impact of the change in policy
may take considerable time before the objectives can be fully met, expanding the
reach to more indigent and vulnerable families significantly improved during the
year, as follows:

Table 7:
2017: Cash-Based 2019: Guarantee Letter
Area
Amount Beneficiaries Amount Beneficiaries
Visayas 1,669,662.50 97 12,230,943.58 736
Mindanao 648,900.00 52 7,000,000.00 1,360

Moreover, to further improve and expand the coverage of the Program, PAD
Officer explained that they are in the process of re-evaluating the existing guidelines
to address the difficulties and deficiencies encountered during the year.
46
 Nevertheless, we commended the Agency’s initiative to continually improve
its processes and controls to provide a better quality service to its clients. However,
based on our audit, the New Guidelines failed to create a substantial impact that
would boost the utilization of OVP’s MAP considering its increasing budget. As seen
in Table 6, the CY 2019 registered the lowest utilization rate even if we consider the
utilization of up to March 2020.

With the above discussions, we would like to stress that in order to bring
tangible benefits to the clients, OVP should carefully plan its programs’ budget, such
as assessment of absorptive capacity, and the programs’ implementation in the most
efficient and timely manner. With amounts still unutilized in government hospitals
for CY 2020, and an additional budget in CY 2020, OVP should judiciously
implement and adopt strategies that boosts utilization considering the MAP’s
increasing budget.

We recommended that Management, in their re-evaluation of the

guidelines:

a. Consider alternative service delivery strategies, such as the provision

of cash assistance to those who could not avail of the GL, and those
who could not access OVP’s Service Delivery Network;

b. Increase/expand the Service Delivery Network to include the

provinces and the far flung areas; and

c. Streamline the processes and requirements of the request of medical

assistance, and for those really in need of repeated assistance,
shorten the period for a repeat request.

We further recommended that henceforth, Management:

a. Re-assess the agency’s absorptive capacity when requesting budget

for its MAP to avoid funds becoming idle for the rest of the fiscal
year due to non-utilization; and

b. Transfer funds to the Hospitals-Implementing Agencies on time.

Management in their reply mentioned that, in line with the recommendations

of COA, the following improvements were now reflected in OVP Office Order No.
2020-11:

1. Considered the provision of cash assistance to those who could not avail
of the GL as an alternative delivery strategy.
2. Shortened the period for a repeat request.

47
 Lastly, Management underscore that the adoption of a hybrid system with
majority of the funds under GL arrangement strengthens their commitment to
adequately safeguard the funds from loss or wastage through illegal or improper
disposition. The meticulous process of constantly updating the guidelines strives to
achieve a proper balance between achieving high utilization rates and more
meaningful use of resources. In the past year, focus must have tilted more towards
meaningful use of resources without loss or wastage over high utilization rate.
Nevertheless, OVP are expecting that the balance of the funds transferred to the
hospitals can be fully utilized in no time within CY 2020.

C. Others

Dormant Accounts

5. The table below shows the summary of OVP’s dormant accounts of five years and
above as of December 31, 2019.

No. of Actions
Amount of Reason for being Actions taken
Account years Taken by
Dormant dormant by ATLs
Dormant Management
Receivables
Due from National 7,283,483.30 More than Failure of IAs to Continuous Sent Demand
Government 7 years immediately submit follow-up to Letters and
Agencies liquidation Management Continuous
on the Status follow-ups
of Liquidation
Other Receivables 346,762.95 More than Other receivables
30 years under the defunct
Office of the Prime - -
Minister (OPM).
Receivables- 5,698,388.40 More than Officers and
Disallowances/ 19 years employees are
Charges separated from
government service
and most of them
could not be
located. Officers
and employees were
- -
employed during
the term of the late
Vice President
Salvador H. Laurel
and the
disallowances were
under the defunct
OPM.

48
 Gender and Development (GAD)

6. The PCW-endorsed GPB for CY 2019 was not submitted to the Audit Team,
contrary to Item V of COA Circular No. 2014-001 dated March 18, 2014 and
Item 1.2.3.3.2 of PCW Memorandum Circular No. 2017-03 dated September 29,
2017. Based on the submitted Accomplishment Report, of 19 programmed
activities, 12 were implemented with a total of ₱50,556,046.85 spent to
implement all planned activities on gender issues among OVP employees and
clients.

Item V of COA Circular No. 2014 001 prescribes the responsibility of the
audited agency, to wit:

The Audited agency shall submit a copy of the Annual GAD Plan
and Budget (GPB) to the COA Audit Team assigned to the agency
within five (5) working days from the receipt of the approved plan
from the PCW or their mother or central offices, as the case maybe.
xxx

Likewise, Item 1.2.3.3.2 of PCW Memorandum Circular No. 2017-03 requires

the submission of PCW-endorsed GPB to COA, as follows:

PCW-endorsed GPBs shall be authenticated by the Gender

Mainstreaming Monitoring System (GMMS) with a barcode.
Concerned agencies shall print the endorsed GPB for signature of
their agency head and submit signed copies to PCW and their
respective COA Audit Team within 5 working days from
endorsement.

We noted that only the Unendorsed GPB for CY 2019 was submitted by OVP
on March 7, 2019. Upon receipt of the CY 2019 GAD Accomplishment Report,
differences were observed in the planned program, projects and activities. As of June
26, 2020, the PCW-endorsed GPB for CY 2019 remained unsubmitted to the Audit
Team.

The following activities were included in the submitted Accomplishment

Report with a total actual cost of ₱50,556,046.85:

No. GAD Activity Actual Result Budget (₱) Actual Cost (₱) Remarks
Client-Focused
1 Include malong, sanitary Relief goods, inclusive of 9,750,000.00 - Not
napkins and underwear in relief hygiene kits donated by Implemented
bags to be distributed during partners, and distributed to - Deferred
relief operation in calamity- 112,634 families. Attribution
stricken areas. deferred pending the conduct
of gender analysis.

49
No. GAD Activity Actual Result Budget (₱) Actual Cost (₱) Remarks
2 GAD Training for Women 31 women entrepreneurs - - Implemented
Stakeholders attended Angat Buhay
Workshop. No cost were
incurred as the events were
partner-funded
3 Conduct of national level talk The OVP together with its 735,000.00 - Implemented
and community-level talks or private partners conducted an
Babaenihan event entitled RespetoNaman
which aims to bring issue of
rape and sexual harassment.
Part of the campaign is the
Don’t Tell Me How to Dress
exhibit. No cost was incurred
by OVP in this event.
4 Development and 16 fellows graduated from the 2,103,000.00 117,542.00 Implemented
implementation of modules for Angat Bayi Political
Angat Bayi Empowerment Fellowship
Program and 13 fellows
graduated from the Angat
Bayi Young Women’s
Fellowship Program. Minimal
cost were incurred as the
events were mostly partner-
funded.
5 Entrepreneurship Workshop for Workshop for Aspiring 8,900,000.00 2,621,511.51 Implemented
women entrepreneurs from Women Entrepreneurs was
selected Angat Buhay held on July 13-17, 2019 in
communities Panglao, and Women
Entrepreneurship Boot camp
was held on December 3-7,
2019. Minimal cost were
incurred as the events were
mostly partner-funded.
6 Consolidate and update existing Roll out will be in 2020. - - Not
sex-disaggregated data on Implemented
clients and make it available for
policy and program
development and review
7 Study tour for selected Study tours were infused in 668,500.00 7,325.14 Implemented
entrepreneurial group in Naga Angat Bayi Political
(with Naga City Council for Empowerment Fellowship
Women and social (16 pax), Angat Bayi Young
entrepreneurship businesses). Women’s Fellowship
Program (13pax), AB WAWE
(31 pax), AB WEB (40 pax)
modules. Minimal cost were
incurred as the events were
mostly partner-funded.
8 Review and reformulation of Roll out will be in 2020. - - Not
selection guidelines of strategic Implemented
programs to ensure equality in
representation.

50
No. GAD Activity Actual Result Budget (₱) Actual Cost (₱) Remarks
Organization-Focused
9 Hiring of one GAD consultant GAD assessment tool 487,644.00 - Partially
for GAD processes (Planning, established via existing Implemented
Budgeting, Monitoring & gender analysis tools and - On-going
Gender Analysis) started gender mainstreaming mainstrea-
in flagship program, i.e MAP ming of
PPAs
10 Standardize all OVP forms Most of the forms reflect sex - - Implemented
accomplished by clients to and age.
reflect age and sex.

Establish OVP GAD Database.

11 Creation of GAD Bulletin in the Existing GAD Bulletin in - - Partially
OVP website. OVP Website. Implemented

Annual Reporting on GAD Plan

and Accomplishments on the
One OVP FB Page.
12 Participation of GFPS in GAD- Conducted activities for the 412,422.12 338,836.25 Partially
related training and conferences Women’s Month (i.e. film Implemented
(GST, Gender analysis and showing, Kapihan, GAD t- - Activities
assessment tools, GAD-related shirts for the employees and mentioned
laws) accommodation of Angat in result
Buhay participants to the different
(Women’s Bazaar); and from
participated in the Women’s intended
Summit in SM Aura; GAD
Conducted GAD orientation Activity
to Administrative Officers.
13 Executive Course on Gender No result for this activity. 257,474.04 - Not
and Development Implemented
14 Gender Sensitivity Training Conducted GST to 30 new 78,500.00 96,320.75 Implemented
employees (permanent and
contract of service)
15 Formulate tools to track gender Initial conduct of Harmonized 172,474.04 1,560,000.00 Implemented
outcomes and impacts of Gender and Development
implemented programs and Guidelines (HGDG) for
projects MAP.
16 2020 Annual GAD Planning and GPB approved as developed Implemented
Budgeting Workshop during the year-end
assessment and organization-
wide gender development
activity on November 21-23,
2019.
17 Regular meetings of GAD Focal Regular meetings are 3,100,000.00 2,581,302.62 Implemented
Point System (GFPS) and GAD conducted for the GAD
Focal Point Person per Office/ activities.
Division/Unit as an avenue for
preparation of PAPs
implementation and post
evaluation.
18 Attribution of salaries of GFPS All GAD-related activities Implemented
members to the GAD budget attended by OVP personnel
were attributed
51
No. GAD Activity Actual Result Budget (₱) Actual Cost (₱) Remarks
during implementation of GAD-
related activities.
Attributed Programs
HGDG PIMME/FIMME Total Annual Attributed Remarks
No. Program
Score Cost Cost
19 Medical Assistance Program 6.33 (Promising GAD 136,597,815.42 43,233,208.58 Implemented
Prospect)
Total 163,262,829.62 50,556,046.85

The above table shows that out of the 19 programmed activities, 12 were
implemented, 3 were partially implemented and 4 were not implemented.

Nevertheless, we cannot verify whether the programmed activities were within

the context of the Agency’s GAD commitments because no PCW endorsed CY 2019
GPB was submitted.

We recommended that Management endeavor to accomplish all

programmed activities specifically on the updates of existing sex disaggregated
on clients as input to policy and program development. Moreover, to instruct
the GFPS to comply with the directives to submit GPB within five (5) working
days from endorsement or approval of PCW to the Auditor.

Plans and Projects Related to Senior Citizens and Persons with Disability

7. In compliance with Section 33 of the GP of the GAA of FY 2019 (RA No. 11260),
“All agencies of the government shall formulate plans, programs and projects
intended to address the concerns of senior citizens and persons with disability, insofar
as it relates to their mandated functions, and integrate the same in their regular
activities.”

For CY 2019, OVP provided medical assistance to senior citizens and

differently-abled persons. Moreover, together with the partner organizations, OVP
has provided interventions for the differently-abled persons under the Angat Buhay
Program by mobilizing a total of ₱359,751.00 worth of resources that benefited 100
families and 185 individuals in various areas.

Disaster Risk Reduction and Management

8. OVP conducted risk reduction, climate change adaptation and mitigation measures
in compliance with Section 37 of the GP of the GAA of FY 2019, as follows:

a) Revised the Operations Manual on Workplace Security and Safety on October

17, 2019;
b) Participated in various Fire Evacuation Drills and Earthquake Drills;

52
 c) Designated Safety Officers who attended the Fire Evacuation Seminar and
Drill on July 23, 2019; and
d) Issued Memorandum dated August 7, 2019 on the Scenario and Procedures on
the Conduct of Emergency Drill.

Tax Laws

9. OVP, acting as a withholding agent of the Bureau of Internal Revenue (BIR),

withheld a total of ₱20,763,591.13 and remitted a total of ₱20,761,694.14, leaving a
balance of ₱1,896.99 as of December 31, 2019.

GSIS Premium Deductions and Remittances

10. In compliance with the provisions of RA No. 8291, OVP registered total payroll
deductions for GSIS contributions and loan repayments from salaries and wages of
its officials and employees and government’s share in premium contributions of
₱19,055,362.66 during the year, of which ₱18,907,294.91 was remitted to the GSIS.
The remaining balance of Due to GSIS account is subject for further verification and
reconciliation.

Pag-Ibig Fund Law

11. In compliance with the provisions of RA No. 9679, OVP registered total payroll
deductions for Pag-IBIG contributions from salaries and wages of its officials and
employees of ₱1,325,570.35 and remitted also the total amount to the Pag-IBIG
during the year. The remaining balance of Due to Pag-IBIG account is subject for
further verification and reconciliation.

PhilHealth Fund Law

12. In compliance with the provisions of RA No. 10606, OVP registered total payroll
deductions for PhilHealth contributions from salaries and wages of officials and
employees of ₱1,406,050.08, of which ₱1,382,438.97 was remitted to the PhilHealth,
leaving an unremitted balance of ₱23,611.11 as of December 31, 2019.

Property Insurance Law

13. In compliance with Section 5 of RA No. 656, known as the Property Insurance Law,
OVP ensured adequate insurance coverage of all their insurable assets for CY 2019.

53
Status of Audit Suspensions, Disallowances and Charges

14. There were no Notices of Suspensions, Disallowances and Charges issued in CY

2019.

Fund Utilization

15. The agency had registered utilization rates of more than 80 percent over a 3-year
period of CY 2017 to 2019. In CY 2019, the agency accomplished its good
governance program with actual accomplishments exceeding its targets. Summary of
the utilization of budget of OVP for CY 2017, 2018 and 2019 are shown below:

Amount (₱)
Particular
2017 2018 2019
Appropriations 696,230,132.93 561,829,939.00 675,503,518.00
Allotments 696,230,132.93 561,801,617.00 675,503,518.00
Obligations Incurred 663,431,280.73 558,176,026.72 664,248,728.41
Disbursements 615,229,955.24 470,138,586.04 546,457,867.69
Percentage of
Disbursements Over 88.37 83.68 80.90
Allotments
Percentage of Increase/
(Decrease) in Budget - (19.30) (2.98)
(2017 as base year)

Details of above summary were provided in Annex C.

54