EXECUTIVE SUMMARY

A. Introduction

The primary mandate of the Juvenile Justice and Welfare Council (JJWC) is to
serve as the lead government agency for the implementation of a comprehensive juvenile
justice and welfare system, advise the President on all matters and policies relating to
juvenile justice and welfare, assist the concerned agencies in the review and redrafting of
existing policies/regulations or in the formulation of new ones in line with juvenile justice
and welfare, develop a comprehensive three to five-year national juvenile intervention
program, with the participation of government agencies, concerned NGOs and youth
organizations, coordinate the implementation of the juvenile programs and activities by
national government agencies and other activities which may have a bearing on the success
of the entire national juvenile intervention program, formulate and recommend policies and
strategies in consultation with children for the prevention of juvenile delinquency and the
administration of justice, as well as for the treatment and rehabilitation of the children in
conflict with the law, initiate and coordinate conduct of trainings for the personnel of the
agencies involved in the administration of the juvenile justice and welfare system and the
juvenile intervention program.

The Council is headed by the Executive Director and the Deputy Executive
Director and shall be chaired by an Undersecretary of the Department of Social Welfare
and Development and placed under its administrative supervision. The JJWC shall be
composed of representatives, whose ranks shall not be lower than director, to be designated
by the concerned heads of the following departments or agencies, DOJ, DSWD, CWC,
DepED, DILG, CHR, NYC, two (2) representatives from NGOs, to be designated by the
Secretary of DSWD, DOH, one (1) representative each from the League of Provinces,
League of Cities, League of Municipalities and League of Barangays. Regional Juvenile
Justice and Welfare Committee (RJJWC) were established in the regions.

There are 93 personnel as of December 31, 2019 composed of 64 permanent

employees and 29 Contract of Service.

B. Operational Highlights

For CY 2019, JJWC exceeded most of its targets for CY 2019. The Council’s CY
2019 Accomplishments vis-à-vis with the Physical targets are presented in Table 1 as
follows:

Table 1. Status of Agency’s Performance targets and Budget Utilizations

AGENCY PERFORMANCE BUDGET
Percentage Percentage (%) of
Accomplish- Budget
Particulars Targets of Accom- Actual Utilization utilization over
ments Allocation
plishment budget allocation
Juvenile Justice and Welfare Program 99,371,149.16 96,097,357.40 96.70%
Outcome Indicators
1. No. and percentage 484 1,729 357%
increase of LGUs with (10%)

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 AGENCY PERFORMANCE BUDGET
Percentage Percentage (%) of
Accomplish- Budget
Particulars Targets of Accom- Actual Utilization utilization over
ments Allocation
plishment budget allocation
Comprehensive Local
Juvenile Intervention
Program (CLJIP)
2. No. and percentage 484 3,322 686%
increase in LGUs with at (10%)
least 1% IRA utilized on
CLJIP implementation
3. Percentage of 8% 10% 125%
resolutions
implemented by the
member agencies
Output Indicators
1. No. of national policies, 39 64 164%
plans and programs
developed, issued,
disseminated and
updated
2. No. of LGUs provided 3,622 3,722 103%
with technical
assistance
3. Percentage of plans 75% 100% 133%
and policies rated by
stakeholders as good or
better
Other Performance Indicators (Not Included in the NEP)
Number of LGUs with - 696
CLJIPS integrated in
the Local Development
Plan (LD)

C. Financial Highlights

The Agency’s financial position and financial performance for CY 2019 with
comparative figures for CY 2018 are summarized as follows:

CY 2018 as Increase/
Particulars CY 2019
Restated (Decrease)
Financial Condition
Assets P84,618,852.61 P66,053,627.72 P 18,565,224.89
Liabilities 2,971,993.64 3,574,236.09 (602,242.45)
Net Assets/Equity 81,646,858.97 62,479,391.63 19,167,467.34
Financial Performance
Revenue 3,525,448.77 3,295,582.50 229,866.27
Less: Current Operating Expenses
Personnel Services 45,073,489.49 40,309,407.15 4,764,082.34
MOOE 33,303,028.66 53,617,422.99 (20,314,394.33)
Financial Expenses 0.00 0.00 0.00
Non-Cash Expenses 1,361,883.60 1,887,081.89 (525,198.29)
Total Current Operating Expenses 79,738,401.75 95,813,912.03 (16,075,510.28)
Surplus/(Deficit) from Current (76,212,952.98) (92,518,329.53) 16,305,376.55
Operations
Net Financial Assistance/Subsidy 97,239,138.76 98,257,165.67 (1,018,026.91)
Share, Grants and Donations (0.00) 198,277.48 (198,277.48)

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 CY 2018 as Increase/
Particulars CY 2019
Restated (Decrease)
Gains 1,500.00 10,008.00 (8,508.00)
Losses 15,585.99 (0.00) 15,585.99
Surplus/(Deficit) for the Period P21,012,099.79 P 5,947,121.62 P15,064,978.17

For CY 2019, the Agency has a total regular, automatic and special purpose fund
appropriation of P1,090,566,000.00, P3,538,261.00 and P3,176,726.00, respectively,
under RA No. 11260. The Agency received total allotments of P99,371,149.16 including
continuing appropriation of P1,326,086.16, of which, total obligations incurred amounted
to P96,097,357.40, thereby leaving a balance of P3,273,791.76.

Allotments, Obligations and Balances

Unobligated
Sources of Funds Appropriation Allotments Obligations Incurred
Balance
Current Year Appropriation
Regular P1,090,566,000.00 P91,330,076.00 P88,124,391.61 P 3,205,684.39
Automatic 3,538,261.00 3,538,261.00 3,515,164.69 23,096.31
Special Purpose 3,176,726.00 3,176,726.00 3,176,724.69 1.31
Continuing Appropriation
Regular 1,326,086.16 1,326,086.16 1,281,076.41 45,009.75
Total P 1,098,607,073.16 P 99,371,149.16 P 96,097,357.40 P 3,273,791.76

D. Scope of Audit

The audit covered the financial and compliance audits of the accounts and
operations of the JJWC for the year December 31, 2019. The audit was conducted to: (a)
verify the level of assurance that may be placed on Management’s assertions on the
financial statements; (b) recommend Agency’s improvement opportunities; and (c)
determine the propriety of transactions, as well as the extent of compliance with pertinent
laws, rules and regulations; and (d) determine the extent of implementation of prior year’s
audit recommendations.

E. Independent Auditor’s Report

A qualified opinion was rendered on the financial statements of the JJWC as at

December 31, 2019 for the misstatements overstating the total Assets, Liabilities and Net
Assets/Equity by P9,305,615.48, P900,777.88 and P7,132,745.46 which represents 11.00
percent, 30.31 percent and 8.74 percent, respectively.

F. Summary of Significant Audit Observations and Recommendations

Among the audit observations and corresponding recommendations discussed in

Part II of this report, the significant observations are summarized as follows:

1. Fund Transfers to DSWD Field Offices and DPWH to defray RJJWCs operating
expenses and for the construction of Bahay Pag-Asa, respectively totaling
P58,329,417.50, remained unliquidated as at year-end, due to delayed/non-submission

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 of LRs by the RJJWCs and delayed implementation of the project by the DPWH
resulting in the understatement of recorded expenses and accumulation of outstanding
receivable as at year-end.

We reiterated our previous recommendation and Management agreed to require

the:

a) RJJWCs/IAs to (i) submit immediately liquidation of fund transfers or within

30 days after completion of the projects and activities under the Work and
Financial Plan (WFP), or before the closing of books at the end of the Fiscal
Year, whichever comes first for CY 2019; and (ii) refund unutilized fund
transfers for completed projects to the JJWC Main Office, if any; and

b) NCMIMD and Accountant to continuously conduct periodic monitoring and

coordination with RJJWCs for the immediate liquidation of fund transfers
and to the DPWH, on the status of implementation of Bahay Pag-asa.

2. The delayed implementation of the construction/improvement of Bahay Pag-Asa for FY

2019 due to delayed implementation and liquidation of the DPWH for the 1st and 2nd
tranches of fund transfers in FYs 2016 and 2017, resulting in the non-achievement of
the objectives within the target period, thus, depriving the intended beneficiaries of the
expected benefits due them.

We reiterated our previous year’s recommendation and Management agreed to

require the:

a) JJWC Project Manager to strengthen their coordination with the DPWH-

Bureau of Construction on the progress of implementation of the project to
ensure that project objectives are accomplished within the specific timeline;

b) DPWH-Bureau of Construction to fast track the implementation of the 1st

tranches of fund transfers in FYs 2016 and 2017 and submit the liquidation
reports immediately as prerequisite in the issuance of the Accountant’s
Certification for the release of the succeeding tranche of the project;

c) NCMIMD to (i) follow-up the status of the contract with the DPWH, (ii) ensure
the commitment of the identified LGUs through signed MOA between the
LGU and JJWC and Sangguniang Panlalawigan Resolution appropriating its
counterpart in the project in their budget for the year; and

d) Require Project Manager to apply an effective monitoring of project

implementation especially those of previous years’ target priority areas and
prepare a well-detailed documentation on the evaluation and progress of the
project.

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3. The non-establishment of Internal Audit Services/Unit in JJWC is not compliant with
the provisions of pertinent laws, rules and regulations and deprives the Agency of the
valuable services that such unit may provide towards the promotion of (a) orderly,
ethical, economical, efficient and effective operation; (b) accountability; (c)
compliance with laws and regulations; and (c) safeguarding of resources.

We recommended that Management evaluate and determine the propriety of

establishing a separate unit of IAS/IAU or the availment of the services of the IAS
of the DSWD, and consider the following courses of action:

a) If availment of the services of IAS of the DSWD is more appropriate and

opted, coordinate with the Department for the extension of the services of its
IAS to the JJWC;

b) Otherwise, the JJWC create a task force for the review of the existing
organizational structure and staffing pattern in the establishment of its
IAS/IAU; and

c) If creation of new plantilla position for the creation of IAS is determined as

more plausible and necessary, submit required documents/reports for
request of new plantilla position and the funding thereof to the DBM.

4. Liquidation of cash advances and reimbursements of traveling expenses were not

supported with proper documentation thus, affecting the regularity of the financial
transactions made out from the fund.

We recommended that Management:

a) formulate internal policy/guidelines on the use of “Certification of Expenses

not Requiring Receipts” to provide additional safeguards in the use of public
funds;

b) require Accountable Officers to submit the required supporting documents

of item nos. 2-4 to the Office of the Auditor to avoid audit suspension and/or
disallowance;

c) direct the IQA Team Leader to submit justification on why the OR submitted
by Richmond Plaza Centre Inc. was P8,720.00 only not the P9,000 net of tax;
and

d) require the Accountant to ensure all necessary supporting documents are

obtained and complete before processing the transactions, to support the
authenticity and validity of the transactions.

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G. Status of Settlement of Audit Suspensions, Disallowances, and Charges

There were no unsettled balance of audit suspensions, disallowance and charges as

of December 31, 2019 as reflected in the Statement of Audit Suspensions, Disallowances
and Charges (SASDC).

H. Implementation of Prior Year’s Audit Recommendations

Of the 41 prior years’ audit recommendations, 30 were fully implemented, and 11

were considered implemented by reason of reiterations. The details are presented in Part
III of this Report.

We enjoin Management to ensure full implementation of all audit

recommendations to improve the financial and operational efficiency of the Agency.

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