Annex A

DEPARTMENT OF AGRARIAN REFORM

Elliptical Road, Diliman, Quezon City

AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION

Of the Audit Observations and Recommendations
For the Calendar Year 2021
As of ______________
REGION:
Agency ActionPlan Reasonfor Partial/
*Statusof
Target Delay/Non- Action Taken/
Ref. AuditObservations Audit Recommendations Person/Dept. Implementatio
ActionPlan Implementation Date implementation,if Actionto beTaken
Responsible n
From To applicable
FINANCIAL AUDIT
2021 Accounting We recommended and
CAAR
errors/omissions and Management agreed to
Page deficiencies require the Accountants
83-88 1. Accounting of:
errors/omissions
amounting to ₱512.742 a)Responsible Region and
million in the keeping POs to effect the
of accounts and necessary adjustments on
accounting deficiencies
the errors/ omissions with
such as absence of
subsidiary ledgers the corresponding
(SLs)/schedules, supporting documents;
negative SL balances
and unreconciled b) Responsible Region
balances on 138 and POs to prepare SL/
accounts with an schedules, BRS and
aggregate amount of maintain SLCs, SCs and
₱358.186 million PPELC for each controlling
affected the fair account in the GL; and
presentation of the henceforth see to it that
agency’s Financial
the supporting records are
Statements.
updated and the totals of
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 Annex A

Agency ActionPlan Reasonfor Partial/

*Statusof
Target Delay/Non- Action Taken/
Ref. AuditObservations Audit Recommendations Person/Dept. Implementatio
ActionPlan Implementation Date implementation,if Actionto beTaken
Responsible n
From To applicable
the SL balances reconcile
with the corresponding GL
controlling accounts;

e) Responsible Region
and POs to coordinate
with the Supply/Property
Officer to ensure the
timely and proper conduct
of physical count for all
inventories and PPEs at all
times, thereafter, assign
focal team to reconcile
PPE and Inventory
between the accounting
and property records and
identify possible
adjustments to ensure
accuracy of reported
balances;

Submission of accounting We recommended and

and property reports Management agreed to
direct Responsible
2. Various accounting Region and POs to:
reports were not submitted
2021 within the required period, (i) address the significant
CAAR
ranging from 1 to 385 days, delays in the submission
Page thus, affecting the timely of accounting, property

2
 Annex A

Agency ActionPlan Reasonfor Partial/

*Statusof
Target Delay/Non- Action Taken/
Ref. AuditObservations Audit Recommendations Person/Dept. Implementatio
ActionPlan Implementation Date implementation,if Actionto beTaken
Responsible n
From To applicable
88-90 verification and and project reports, as
communication of audit well as DVs and various
results to Management, reports with deficiencies;
which could have served as and
an aid in management
decisions and inputs in (ii) thereafter, require the
respective Accountants
enhancing financial
accountability. and concerned
accountable officers to
observe the prescribed
timelines on the
submission of all
accounting reports.

COMPLIANCE WITH OTHER LEGAL AND REGULATORY REQUIREMENTS

Fund utilization/obligation We recommended and
2021
CAAR and Cash utilization Management agreed to
direct the agency/FAPs
Page 3. Of the agency’s allotment head of:
91-97
for CY 2021 of ₱11,690.272
million, only ₱9,273.387 a) CO, FAPs SPLIT,
million or 79.33 percent was ConVERGE and IARCDSP,
utilized/obligated and Responsible Region and
₱8,769.638 million or 94.57 POs to resolve any
percent was disbursed until adverse effects of the
December 31, 2021. Under identified causes of slow
Agrarian Reform fund and cash utilization
Beneficiaries Development whether due to delayed
and Sustainability Program and foregone services or
(ARBDSP) which constitutes excessive operational cash
3
 Annex A

Agency ActionPlan Reasonfor Partial/

*Statusof
Target Delay/Non- Action Taken/
Ref. AuditObservations Audit Recommendations Person/Dept. Implementatio
ActionPlan Implementation Date implementation,if Actionto beTaken
Responsible n
From To applicable
12.26 percent of the budget in order to
agency’s total allotment, it maximize fund utilization
registered a utilization rate and ensure that the
of 97.77 percent with Monthly Disbursement
implementation deficiencies. Program matches the
Moreover, of the total cash actual operating cash
allocation of ₱11,661.663 requirements to avoid
million available during the lapsing and idling of cash;
year, ₱10,554.766 million or and
90.51 percent was utilized,
b) Concerned Regional
leaving a balance of
₱1,106.896 million which and Provincia Responsible
Region and POs office to
was reverted back to the
Bureau of the Treasury (BTr), properly implement as
planned the various
except for the amount of
₱722.229 million sourced activities relative to the
ARBDSP to ensure full
from FAPs Loan Proceeds
(LP) that was retained in the utilization of funds
considering the
respective LP bank accounts.
implementation of cash
budgeting system and
validity period of
allotment.

4
 Annex A

Non-reversion of dormant We recommended and

cash, unauthorized accounts Management agreed to
and unnecessary fund direct the Accountant of
2021 Responsible Region and
CAAR 4. Dormant cash, POs to revert the
unnecessary funds and
Page dormant/unauthorized
98-99 unauthorized accounts and unnecessary cash
amounting to ₱5.740 million, accounts to the National
were not Treasury, thereafter,
reverted/deposited by five closure of the said
DAR offices to the National accounts shall be carried
Treasury. out, as the case maybe.

5
 Annex A

Granting, utilization and We recommended and

liquidation of cash advances Management agreed to
2021 direct the Accountant and
CAAR 5. Of the total cash AOs/ SDOs in:
Page advances in CO, two FAPs,
99-102 five ROs and 11 POs a) CO, FAPs COnVERGE
amounting to ₱27.605 and SPLIT, Responsible
million, only ₱10.875 million Region and POs strictly
or 39.40 percent were enforce the prescribed
utilized/liquidated thereby period of liquidation and
leaving an unliquidated require the immediate
balance of ₱16.729 million refund/return of any
or 60.60 percent due to non- excess amount thereof,
enforcement of otherwise, cause the
liquidation/settlement deduction from the
thereof. salaries of the AOs/SDOs
concerned; and (ii) issue
demand letters to notify
the concerned officials
and employees, if
settlement was not made;
and

b) Responsible Region
and POs to ensure that
only duly appointed or
designated disbursing
officer shall perform
disbursing functions for
special cash advances.

Granting, utilization and We recommended and

liquidation of fund transfers Management agreed to
6
 Annex A

to implementing agencies direct the Accountants of:

2021
CAAR a) CO, FAPs ConVERGE,
6. Of the total fund transfers Responsible Region and
Page by CO, FAPs ConVERGE,
103-105 POs to enforce the
three ROs and 10 POs to provisions of COA Circular
NGAs, LGUs and GOCCs No. 94-013 by assigning a
amounting to ₱1,031.343 focal person in charge to
million, only ₱83.278 million monitor the
or 8.07 percent were implementation of
utilized/liquidated due to projects and coordinate
non-monitoring of with the IAs for the
liquidation and non- submission of liquidation
reconciliation of records reports and return of any
with the implementing unexpended/ unutilized
agencies (IAs) despite lapse funds particularly for
of time, thereby leaving a projects which are already
balance of ₱948.065 million completed and aged over
or 91.93 percent. 10 years, thereafter,
request for write-off of
dormant accounts aged
over 10 years pursuant to
the provisions of COA
Circular No. 2016-005
dated December19, 2016;
and

b) CO to prioritize the
conduct of thorough
review and evaluation of
Due from GOCCs account
to get rid the financial
statements of outstanding
7
 Annex A

accounts not supported

with SL.

Granting, utilization and We recommended and

liquidation of fund transfers Management agreed to
2021 to NGOs/CSOs direct the Accountants of
CAAR
CO, Responsible Region
Page 7. Fund transfers to and POs:
106-107 NGOs/CSOs during the year
amounting to ₱0.049 million a) enforce the provisions
were not utilized/liquidated of COA Circular No. 2007-
in accordance with Section 001 by assigning a focal
67 of the GP of FY 2021 GAA person in charge to
and COA Circular No. 2007- coordinate with the
001. Also, there were still NGOs/CSOs for the
unliquidated fund transfers immediate submission of
in prior years amounting to liquidation reports and
₱463.432 million or 98.10 return of any
percent of prior year’s unexpended/unutilized
balance of ₱472.412 million. funds particularly for
projects which are already
completed and aged over
10 years; and

b) request for write-off of

dormant accounts aged
over 10 years pursuant to
the provisions of COA
Circular No. 2016-005
dated December19, 2016.

Granting, utilization and We recommended and

2021 liquidation of advances to Management agreed to
8
 Annex A

CAAR PS-DBM direct the concerned

Page Accountants to
107-110 8. Advances to Procurement coordinate with Property
Service-Department of Officers in charged with
Budget and Management monitoring of deliveries
(PSDBM) aggregating in:
₱795.716 million for the
procurement of office a) CO, FAPs ConVERGE,
supplies and equipment Responsible Region and
requirement were not POs to
liquidated due to non-
reconciliation of records and (i) reconcile regularly with
PS-DBM to intensify the
non-delivery of items
requested. timely delivery of supplies
and equipment for the
immediate need of end-
users in their day-to-day
operation; and

(ii) demand from PS-DBM

the delivery of farm
machineries and
equipment and common-
use
supplies/materials/PPE,
and if delivery is no longer
expected/necessary,
require the refund of any
unused funds; and

b) Concerned regional
office to make a
representation with CO
9
 Annex A

and PS-DBM for the

reversion of the unutilized
balance to the BTr.

Dormant receivables not We recommended and

2021
CAAR requested for write-off Management agreed to
direct the:
Page 9. Dormant receivables,
110-112
unliquidated cash advances a) Accountants of
and unliquidated fund Responsible Region and
transfers amounting to POs to immediately
₱1,070.588 million were submit the deficient
either not requested for documents to formally
writeoff or the requests for write-off the dormant
write-off were returned due accounts; and
to insufficiency of supporting
b) Accountants and
documents.
concerned focal
persons/end-users of CO,
Regional Officess and
Provincial Offices to
strictly comply with the
guidelines provided under
COA Circular No. 2016-
005, particularly the
request for the write-off
of dormant receivables,
unliquidated cash
advances and
unliquidated fund
transfers with complete
documentary

10
 Annex A

requirements.

Insurance of physical assets We recommended and

with GSIS Management agreed to
2021 direct the:
CAAR 10. Eighteen (18) DAR offices
Page failed to insure property a) Chief, General Services
113-116 amounting to ₱262.245 Division of CO,
million, thus, the agency is at Responsible Region and
risk of not being indemnified POs to insure all its
in case of damage or loss of insurable PPEs based on
property. the appraised value or
amount provided in
accordance with Republic
Act 656; and

b) Acting Property
Custodians of PO Negros
Occidental to request
funds to assist and
facilitate the payment of
insurance of farm
machineries of ARBOs that
are financially incapable.

Disposal of unserviceable We recommended and

property Management agreed to
2021 require the:
CAAR 11. Unserviceable properties
Page with an aggregate amount of a) Responsible Region
116-119 ₱47.487 million remained and POs to expedite the
not disposed of, thus, requirements for the
exposing them to further proper disposal of

11
 Annex A

deterioration and decreasing unserviceable properties,

their realizable value. thereafter, ensure strict
compliance with Section
79 of PD No. 1445; and

b) Responsible Region
and POs to facilitate the
conduct of physical count
of agency’s properties and
segregate all that are
found to be
unserviceable/
condemnable.

Submission of government We recommended and

contracts Management agreed to
direct the Procurement
12. Copy of government and Personnel Divisions
contracts, purchase orders
2021 of:
CAAR and their supporting
documents totaling 5,738 a) CO, FAPs ConVERGE
Page
119-121 with corresponding amount and SPLIT, Responsible
of ₱287.257 million were not Region and POs to ensure
submitted within the compliance with the
prescribed period and with instructions set forth by
delays in submission ranging COA Circular No. 2009-001
from 1 to 398 days. Likewise, on the proper and timely
review of submitted copies submission of
of contracts and purchase contracts/POs with
orders disclosed various supporting documents
deficiencies. and complete information
indicating all the essential
information/ fields
12
 Annex A

therein; and

b) CO to stop the practice

of splitting government
contracts/POs to ensure
efficiency, transparency
and obtaining the most
advantageous price in
government procurement.

Compliance with GSIS Law We recommended and

Management agreed to
13. Significant balance of direct the CO Responsible
₱17.658 million withheld by Region and POs to resolve
10 DAR offices for
2021 the deficiencies and
CAAR employee’s contributions prepare schedule for the
and loan payments
Page unremitted balance and
121-124 remained outstanding in the coordinate with GSIS for
books and not remitted to reconciliation and possible
the GSIS as at year-end. needed remittance or
refund, as the case may
be. Henceforth, strictly
comply 123 with the
requirements prescribed
regarding the remittances
of GSIS contributions.

Compliance with the We recommended and

National Health Insurance Management agreed to
Law require the Accountants
of CO, Responsible Region
14. Significant balance of and POs to expedite the
₱0.495 million withheld by reconciliation/analysis of
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 Annex A

CO, three ROs and PO the outstanding balances

Davao del Sur for and remit the appropriate
employee’s share remained balances to PhilHealth, if
outstanding in the books any, to avoid imposition of
and not remitted to applicable
Philhealth as at year-end. sanction/penalty and
deprivation of employees’
benefits. Henceforth,
strictly comply with the
requirements prescribed
regarding the remittance
of PhilHealth
contributions.

Compliance with the Pag- We recommended and

IBIG Fund Law Management agreed to
direct CO, Responsible
15. Significant balance of Region and POs to
₱0.730 million representing expedite the review and
2021
CAAR employee’s contribution and analysis of outstanding
loan payments remained balances for immediate
Page
124-126 outstanding in the books of remittance to Pag-IBIG to
10 DAR offices and not avoid imposition of
remitted to Pag-IBIG as at applicable sanction/
year-end. penalty and deprivation of
employees’ benefits.
Henceforth, ensure that
the requirements
prescribed regarding the
Pag-IBIG contributions are
strictly followed,
particularly the intact and
14
 Annex A

on time remittance.

Compliance with the BIR We recommended and

Law and Regulations Management agreed to
direct the Accountants of:
2021 16. The amount of ₱4.432
CAAR million representing taxes a) CO, Responsible
Page withheld from compensation Region and POs to
126-129 income of officials and expedite the reconciliation
employees, government involving outstanding tax
purchases and contract of withheld balances which
services from remained outstanding in
suppliers/contractors, the books and either
remained outstanding in the adjust the excess credits
books of eight DAR offices as or remit the balance, as
of year-end. Likewise, CO, the case may be; and b)
PO Davao del Sur and SPLIT CO, FAPs SPLIT,
PPMO Samar failed to ConVERGE, IARCDSP, RO
withhold proper taxes VI, PO Davao del Sur and
contrary to existing tax laws, FAPs SPLIT Samar PPMO
rules and regulations. to strictly observe the
compliance as regards to
the tax withheld, intact
remittance of tax within
the prescribed period, and
the proper computation of
taxes from the payment of
salaries of COS personnel,
honoraria, and other
service providers.

Hiring of and payments to We recommended and

job orders, contractual and Management agreed to
15
 Annex A

consultants 17. Various direct the Accountant of:

2021 deficiencies were observed
CAAR in CO, FAPs SPLIT and CO to –

Page ConVERGE as to the validity a) revisit the rates paid to

129-133 and propriety of transaction
concerned Legal
in the hiring and payments Specialist/Consultants and
to JOs/ COS and consultants. undertake action to
refund the overpayment,
as applicable, to preclude
disallowance in audit.
Henceforth, ensure that
payments are processed
based on the authorized
rates in the supporting
documents;

b) coordinate with the

end-user of the concerned
legal/individual
consultants and lawyers
hired under COS to submit
the lacking/ deficient
supporting documents to
preclude suspension in
audit. Thereafter, always
ensure that DVs are
supported with complete
documentation;

SPLIT PPMO Davao

Oriental to –

16
 Annex A

c) request for a
confirmatory approval
from the DAR FASPO for
the hiring of individuals
covered with a COS whose
relevant work experience
and training hours do not
meet the qualification
requirements in the TOR
and observe strict
implementation of the
TOR and Project
Operations Manual; and
133

SPLIT PPMO Camiguin

and ConVERGE Camiguin
PMO to –

d) review the procedure

for computation of the
payment of monthly
salary of COS workers,
which may be included in
the contracts and make
the necessary
adjustments, if warranted.

Gender and Development We recommended and

Management agreed to
18. The agency allocated the direct:
amount of ₱819.879 million
or 7.37 percent of the a) Responsible Region
2021
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 Annex A

CAAR current appropriations of and POs to

Page ₱11,124.557 million for GAD
133-135 programs and activities. Of (i) coordinate
immediately with DAR
the said GAD allocation,
₱444.500 million or 16.91 GAD Focal Point System
for the preparation and
percent of ₱2,629.053
million pertains to overseas submission of Annual GPB
and GAD AR to the PCW
development assistance
GAD programs and activities. and the audit team, for
review/ evaluation;
Moreover, planned activities
were implemented with (ii) strictly comply with
fund utilization of ₱595.886 the provisions of Section
million or 72.68 percent. 32 of the General
However, two ROs and five Provisions of the FY 2021
POs were not able to GAA and RA No. 7192 as
implement all of its planned regards to GAD
activities, while deficiencies implementation,
were observed in the particularly ensuring full
implementation of GAD utilization of GAD budget
activities in five DAR offices. and reporting of
accomplishment by
integrating various GAD
programs and projects in
the Agency’s regular
activities;

b) POs Davao del Sur and

Davao Oriental to analyze
GAD intended programs
and projects using the
HGDG for
programs/projects to
18
 Annex A

determine their gender

sensitiveness and to be
able to attribute part or
whole of the PPAs budget
to GAD budget;

c) PO Davao Oriental to
institutionalize the GAD
database with adequate
and systematically
gathered sex-
disaggregated data which
will provide the bases for
gender analysis, planning,
programming and policy
formulation and 135
undertake gender analysis
to identify and confirm
existing gender issues and
ensure that the PPAs are
responsive thereto; and

d) FAPs SPLIT (RPMO IV-A,

PPMOs Batangas and
Rizal) to perform HGDG
test for SPLIT to assess the
attainment of the required
percentage of funds
received from ODA in
support of gender-
responsive programs and
projects and include in the

19
 Annex A

GAD AR the
accomplishments on the
implementation of GAD
PPAs including the
amount spent thereon.

Senior Citizen and Person We recommended and

with Disability (SCPD) Management agreed to
instruct Responsible
19. DAR offices spent
2021 Region and POs to
CAAR ₱15.433 million in the formulate plans, programs
implementation of the
Page and projects intended to
135-137 activities for the SCPD, in address the concerns of
addition to providing ramps, SCPD, insofar as it relates
a wheelchair and priority to their mandated
lane for them except for 21 functions, and integrate
DAR offices that did not the same in their regular
formulate PPAs for SCPD. activities. Thereafter,
submit the same to the
Office of the Auditor for
evaluation purposes.

Implementation of FAPs and We recommended and

ODA Funded Projects Management agreed to
direct the SPLIT National
20. Commitment fees Project Director and
amounting to ₱44.347 concerned PPMOs to:
2021
CAAR million were incurred by
FAPs SPLIT during CY 2021 a) provide catch up plan to
Page
137-140 attributed to the slow increase the
availment and disbursement withdrawal/availment
of fund visà-vis programmed rate to minimize the
amount in the project commitment
20
 Annex A

implementation during the fees/charges, thereafter,

year. Further, the ensure efficient fund
accomplished activities of 16 utilization and
SPLIT PPMOs under the disbursement considering
Project Component I- readiness in project
Parcelization of Collective implementation, as well as
CLOAS for CY 2021 were the monitoring of outputs
short of its target due to in accordance with the
delayed hiring of Field approved physical targets,
Validation Team (FVT), schedules, costs, and
among others. financing to timely detect
and resolve deviations
between targets and
outputs for the benefit of
target beneficiaries;

b) discuss with the

Oversight Agencies, i.e.
NEDA and DOF, regarding
the provision in the Loan
Agreement of the
commitment fee which
should be based on the
unwithdrawn
programmed amount per
year instead of the entire
unwithdrawn loan
balance, for consideration
in future loan agreements;

c) improve overall project

implementation in 16

21
 Annex A

PPMOs by developing
strategies and proper
mechanisms to detect any
deviations in the outputs
and programmed
activities, ensuring that
the approved timelines,
schedules, and budgets
are followed and taking
the necessary actions to
address the identified
causes of delays; and

d)submit immediately the

deficient
reports/documents to
support the validity of
order of priority for
parcelization in PPMOs
Aklan and Capiz and
ensure that CCLOAs falling
within the priority
category will be given
primary attention for
systematic parcelization
process and in the
distribution of individual
title afterwards.

Audit suspensions, We recommended and

2021 disallowances and charges Management agreed to
CAAR direct the Head of DAR

22
 Annex A

Page 23. Notices of Suspension FMS to require CO, FAPs

142-144
(NSs) and Notices of ConVERGE, Responsible
Disallowance (NDs) Region and POs to:
amounted to ₱51.250
million were issued for a) enforce
collection/settlement of
transactions audited during
the year due to non- disallowed amount within
the prescribed period, as
compliance with various
laws, rules and regulations. directed in Section 7.1.1
of COA Circular No. 2009-
Out of the total suspensions,
disallowances and charges of 006 to avoid accumulation
of outstanding
₱5,281.327 million including
prior years’ balance of suspensions,
disallowances, and
₱5,230.077 million, only
₱46.057 million was settled charges except for those
with pending Appeals;
with corresponding Notices
of Settlement of Suspension, b) persons liable to
Disallowance and Charge consider the filing of
(NSSDCs) issued during the request for installment
year, thereby leaving a payment for
balance of ₱5,235.270 disallowances/charges
million. pursuant to the guidelines
of COA Resolution No.
2017-021 dated
November 3, 2017; and

c) require the Cashier to

withhold the salary of
liable persons, as
applicable, in compliance
with Section 23 of the
RRSA on the settlement
23
 Annex A

thereof.

COMPLIANCE AUDIT
National Task Force to End We recommended and
Local Communist Armed Management agreed to
2021 Conflict (NTF-ELCAC) direct the NTF-ELCAC
CAAR
focal persons of:
Page Attribution, utilization and
144-151 disbursement of funds PO Oriental Mindoro to –

24. DAR attributed a total a) submit basis for

budget of ₱909.518 million attribution of ARBOld in
sourced from FYs 2020 and CY 2020 and the Provision
2021 GAA, of which only of Agrarian Legal
59.44 percent or ₱540.616 Assistance and
million was obligated while Adjudication of Agrarian
₱435.964 million was Reform Cases in CY 2021
disbursed for the to ELCAC Project;
implementation of programs
and activities in support of b) provide satisfactory
explanation on the basis
the End Local Communist
Armed Conflict (ELCAC). of the attributed amounts
and targets for each PAP
Moreover, various
deficiencies were noted in relative to ELCAC and on
the relation of activities/
the implementation of PPAs
in 11 DAR offices projects actually
conducted and/or
implemented with ELCAC
Project and/or with PPAs,
and the ELCAC issues
addressed by the PPAs in
CYs 2020 and 2021 for

24
 Annex A

evaluation;

RO VI and PO Northern
Samar to –

c) make a representation
with the CO to identify the
PPAs with NTF–ELCAC
fund attribution in the
Sub-ARO; 150

POs Samar, Biliran and

Leyte to –

d) stop the payment of

irrelevant expenses not
related to the purpose for
which the fund was
appropriated or allotted
to preclude audit
disallowance, thereafter,
be more circumspect in
the use of the ELCAC
attributed funds and
ensure that the same is
used for the intended
purpose;

RO XI, POs Abra, Davao

City, Davao del Sur and
Davao Occidental to –

e) properly coordinate
with the CO with respect
25
 Annex A

to the target which should

be based on PAP of the
agency in order that
proper attribution can be
done; and f) prepare the
WFP to serve as the basis
for the release of funds
for the implementation of
the program that would
set the agency’s
performance
commitments as well as
the basis in determining
whether the targeted
physical accomplishments
are achieved

2021 COVID-19 Procurement of We recommended and

CAAR
COVID 19 tests Management agreed to
Page direct the concerned
151-154 25. Procurements of COVID- officials/ personnel of CO
19 tests in CO amounting to to:
₱9.055 million were not
supported by sufficient a) submit for
documentation which cast audit/evaluation
doubt on the necessity, additional pertinent
urgency and interval of the documents/justification to
tests conducted, validity of support the: (i) necessity
selection process of of the conduct of COVID-
supplier/clinics, and 19 tests; (ii) validity of
reasonableness of cost for selection of supplier; (iii)
each test. reasonableness of cost

26
 Annex A

incurred; (iv) type/urgency

of test; and (v) test
intervals; and

b) submit or formulate a
clear protocol and policy,
if there is none yet, in
connection with the
conduct of COVID-19 tests
for CO personnel.

2021 Unauthorized/unsupported We recommended and

CAAR
claims for Hazard Pay Management agreed to
Page direct the
154-156 26. Claims for hazard pay in officials/personnel of ROs
six DAR offices amounting to I, II, IVA and three POs to
₱1.794 million were not submit the lacking
supported with valid and supporting documents to
sufficient documentary support validity of claims
requirements. and preclude the issuance
of suspension/
disallowances, as
applicable. Thereafter,
refrain from processing
DVs in the absence of
complete and proper
documentation.

2021 Unsupported payments for We recommended and

CAAR
other COVID-19 related Management agreed to
Page expense direct the:
156-157
a) PO La Union to require
27
 Annex A

27. Payments for other (i) the concerned officials

COVID-19 related expenses and employees to demand
amounting to ₱3.286 million from the supplier the
by POs La Union and Eastern required documents and
Samar were not supported cause the refund of the
with complete and proper excess and unauthorized
documentary requirements payment; (ii) the Budget
thereby casting doubt on the Officer, Accountant,
validity, propriety, and Cashier and all concerned
regularity of the officials and employees to
expenditures. effect the proper
processing and review of
all DVs with complete
supporting documents
prior to payment; and

b) PO Eastern Samar to
require the Accountant to
submit the lacking
supporting documents to
establish the validity of
the disbursements for
COVID-19 initiatives and
written
explanation/justification
why the above
circumstances occurred.
This is without prejudice
to the issuance of
suspension or
disallowance in the course

28
 Annex A

of audit.

       
Name of Agency Head Date

Note: Status of Implementation may either be (a) Implemented (b) Not Implemented

29