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[Audio] COAST GUARD DISTRICT SOUTHWESTERN MINDANAO CGIA EXIT CONFERENCE.

[Audio] COLLECTING AND REMITTING OFFICER Criteria/Reference Condition Auditee/ Concern Unit Sec. 4.1 BTr Circular No. 1-2022 dated 20 May 2022 “Determination of Accountability and Amount of Bond Premium. The amount of bond shall be based on the following accountabilities, provided, the total maximum amount of bond of each accountable officer shall not exceed Eleven Million Pesos (P 11.0M). 4.1.1.1 National Collecting Officer (NCO). The accountability shall be based on the highest amount collected in a given day in the preceding year, which is the possible amount of accountable of the NCO exposed to risk. Absence of Maximum Cash Accountability (MCA) in the designation order CGS Western Leyte CGS Western Samar CGS Southern Leyte CGS Northern Samar CGS Biliran.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit 4.4, Page 23, Internal Control System for Philippine Public Sector “Proper turnover of money and accountability except if newly activated unit/station 3.B Chapter 2 Government Accounting Manual (GAM) Volume 1 states that “When government funds or property are transferred from one AO to another, or from outgoing officer to his successor, it shall be done upon properly itemized invoice and receipt which shall invariably support the clearance to be issued to the relieved or outgoing officer, subject to regulations of the Commission” Absence of proper turnover of money and property accountability of Outgoing CRO to Incoming CRO No documentation exist for proper turnover of duties and responsibilities as collecting and remitting officer. (e.g certification or property transfer receipt of booklet) ALL Station CRO, Except CGS Western Samar CGDEV FSU-CRO newly installed.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Every officer of any government agency whose duties permit or require the possession or custody of government funds or property shall be accountable therefor and for the safekeeping thereof in conformity with law. Every AO shall be properly bonded in accordance with law. (Sec. 101, P.D. No. 1445; Section 50, Chapter 9, Subtitle B, Book V, Executive Order (E.O.) No. 292) Incorrect designation on Btr Confirmation Letter. ALL CRO CGDEV FSU-CRO CGS Eastern Samar CGS Southern Leyte CGS Biliran CGS Northern Samar CGS Western Leyte CGS Eastern Leyte CGS Western Samar.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Sec. 73, GAAM Volume I Pre-numbered ORs shall be issued in strict numerical sequence. All copies of each receipt shall be exact copies or carbon reproduction in all respects of the original. Usage of Official Receipt was not in sequence or chronological order CGS Western Leyte CGS Eastern Samar.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit IV (15) NHQ-PCG/CGFS MC Nr 08-22 dated 12 September 2022 Order of payments is mandatory prior to issuance of ORs. The Accounting Division/Unit shall prepare order of payment based on a bill and shall be prepared for each payor. For Coast Guard Stations without an accounting unit within an area, the District Accountant should train and designate accounting personnel per Coast Guard Station to issue the order of payment, preferable personnel with knowledge of the fines and penalties collected by Marine Environmental Protection Units and Maritime Safety Units Personnel. No order of payment and corresponding bill prior to the issuance of OR ALL CRO Except CGDEV-FSU CRO.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Item 12, VI General Guidelines on NHQ-PCG/CGFS MC Nr. 08-22 dated 12 September 2022 “All CRO’s shall secure a cashbox, safety vault or safety deposit box for safe keeping of collections and ORs. It shall be kept in a secured location.” Sec. 105 (2) of PD 1445 - Measure of liability of accountable officers. - Every officer accountable for government funds shall be liable for all losses resulting from the unlawful deposit, use, or application thereof and for all losses attributable to negligence in the keeping of the funds. The CRO did maintain cashbox or safety vault but can be accessed by multiple personnel CG Southern Leyte CGS Biliran CGS Western Samar CGS Eastern Leyte CGS Western Leyte.

[Audio] COLLECTING AND REMITTING OFFICER Criteria/Reference Condition Auditee/ Concern Unit Sec. 101 (1) of PD 1445 Every officer of any government agency whose duties permit or require the possession or custody of government funds or property shall be accountable therefor and for the safekeeping thereof in conformity with law. Sec. 105 (1) of PD 1445 Every officer accountable for government property shall be liable for its money value in case of improper or unauthorized use or misapplication thereof, by himself or any person for whose acts he may be responsible. We shall likewise be liable for all losses, damages, or deterioration occasioned by negligence in the keeping or use of the property, whether or not it be at the time in his actual custody. Official receipts were issued and collected by personnel verbally authorized by the collecting officers Official receipt issued was not properly signed by the AO CGS Eastern Samar CGS Biliran CGS Biliran CGS Eastern Leyte.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Sec. 101 (1) of PD 1445 Every officer of any government agency whose duties permit or require the possession or custody of government funds or property shall be accountable therefor and for the safekeeping thereof in conformity with law. Sec. 10.1.4 Internal Control System for Philippines Public Sector (ICSPPS) states that “Access to resources and records is limited to authorized individuals who are accountable for the custody and/or use of the resources. Collections were deposited by personnel other than the CRO All CRO – Except CGDEV FSU CRO.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit IV (19 & 20) of NHQ-PCG/CGFS All collections/payments received shall be deposited to the Agency Government Servicing Bank (AGSB) within the day before closing of the bank; however collections received after the closing of the bank should be deposited not later than the next banking day When collections are minimal and daily deposit thereof becomes costly and impractical, the COs shall deposit their collections at least once a week or as soon as the collection reach P10,000.00 Collections were deposited late 1 day Late - OR no. (4102602) - OR no. (4102603) - OR no. (4102604) 2 days Late - OR no. (4102610) 7 days Late - OR no. (4102611) CGS Eastern Leyte CGS Eastern Samar.

[Audio] COLLECTING AND REMITTING OFFICER Criteria/Reference Condition Auditee/ Concern Unit GAM Volume II, Report of Accountability for Accountable for Accountable Forms Improperly filled-out and Incorrect format Report of Accountability for Accountable Forms (RAAF) All CRO.

[Audio] Observation 1. Incorrect accountability/position indicated in the fidelity bond Revenue Collecting Officer 2. MCA was not indicated in the Approved Order 3. Order of Payment should adhere to the GAM format.

[Audio] Recommendations 1 Collections and Reports of Collection shall be stored or kept in a secured vault with sole access of the CRO. 2 Request TI&E to FSU for proper filing out of accountable forms. 3 Request establishment of PIC in stations to District Accountant for the issuance of the Order of Payment. (NHQ-PCG/CGFS MC No. 08-22 dated 12 September 2022) 4 Careful and proper filing out of issued ORs so as to avoid unwanted and unnecessary corrections. 5 Careful filling out of fidelity bond application. 6 Follow up Btr for the correct designation in the confirmation leter. 7.

[Audio] Reminder:. Reminder:. -OUTGOING DISPATCH- COAST GUARD INTERNAL AUDIT CALL CGIA TO INFO SERIAL NR CPCG DISTRICT CDRS DATETIME 27 'OOOH FEB 2024 PRECEDENCE -p_ : CG SCTY/CLSFN UNCLAS DRAFTED BY APPROVED BY: CG RELEASED BY: CG M LVA-CAMPO BT... UNCLAS X CITE CGIA-lA3-0224-004 X DESIGNATION OF REMITTING OFFICER X LLECTING AND.

[Audio] PETTY CASH FUND CUSTODIAN Criteria/Reference Condition Auditee/ Concern Unit Sec IV (4) NHQ-PCG/CG-6 SOP 24-21 dated 23 Nov 2021 “Only permanently appointed officials shall be designated as Disbursing Officer. PCG personnel with minimum rank of Seaman Second Class (SN2) for non-officers and Ensign (ENS) for Officers shall be designated as the PCFC. Upon approval of Confirmation Letter, the AO has a rank of ASN which does not suffice the minimum rank requirement CGSS Maripipi Sec IV (4) NHQ-PCG/CG-6 SOP 24-21 dated 23 Nov 2021 “Newly appointed PCFC shall be briefed by COA and Chief Accountant respectively before discharging his duties and responsibilities and shall be evidenced by a certification to be signed by the Chief Accountant.” No provided certification from the Chief Accountant that the PCFC understood his duties and responsibilities CGSS NAVAL Sec. IV (6) of NHQ-PCG/CG-6 SOP Nr 24-21 dated 23 November 2021 “The Commanding Officer/Chief of Office shall ascertain that he has understood the duties and responsibilities of the appointed PCFC/DO/SDO by issuing certification for the same” No provided certification from the Commanding Officer that the PCFC understood his duties and responsibilities CGSS Sogod CGSS Maripipi.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Sec. IV (7) of NHQ-PCG/CG-6 SOP Nr 24-21 dated 23 November 2021 “Duly appointed PCFC/DO/SDO shall provide a certification that he has read and understood all relevant provisions of published PCG SOPs and COA Circulars relating to Petty Cash/Cash Advances in accordance with his role and capacity to perform his duties and responsibilities.” No provided certification from the PCFC himself that they understood his duties and responsibilities CGSS NAVAL Sec. 10.1.4 Internal Control System for Philippines Public Sector (ICSPPS) “Access to resources and records is limited to authorized individuals who are accountable for the custody and/or use of the resources”. More than one personnel can access the cash vault.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Sec. 4.8 of Treasury Circular Nr 02-2019 “The fidelity bond shall be subject to renewal, before or 30 days prior the expiration of the present bond coverage while the accountable officer is holding such position for which he/she was bonded.” Expired Fidelity Bond Item 4.b, V. Granting of Cash Advances on NHQ-PCG SOP Nr 24-21 dtd 23 November 2021 “The cashbook shall be initially opened with a Certification in the opening page indicating and attaching copy of the Designation Orders, Bond and the like. The Certification shall be approved by the Chief of Office/Unit. Cashbook was observed by the PCFC but no certification in the opening page before the start of entry in the cashbook..

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Item 6.3, COA Circular Nr. 97-002 dtd 10 February 1997 “The AO shall reconcile the book balance with the cash on hand daily. He shall foot and close the books at the end of each month. The AO and the Accountant shall reconcile their books of accounts at least quarterly.” No Foot and Close at the end of each month Sec. VII Petty Cash Fund (f) “Approved Purchased Request with Certificate of Emergency Purchase – duly accomplished and signed by requestor/Logistics Officer and Deputy Commander or 2nd ranking official and shall indicate the specific purpose of the activity. Purchase request shall be pre-numbered” Based on the audited purchase request presented by the PCFC, it showed that the approving individual of the PR was the Commanding Officer/Station Commander of the concerned unit..

[Audio] Criteria/Reference Condition Auditee/ Concern Unit National Guidelines on Internal Control Systems, pg. 27 “Segregation of Duties” Key duties and responsibilities need to be divided or segregated among different people to reduce the risk of error or fraud. This includes separating the assignment or responsibilities for processing, reviewing, recording, custody and approval/authorization of certain transactions. Logistics related designation CGSS Maripipi Appendix 60 of GAM Volume II, Purchase Request Incomplete entries on the PR particularly Stock/Property No. Stock/Property No, Unit, Responsibility Center Code.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Appendix 50 of GAM Volume II, Petty Cash Fund Record Item A, Appendix 50 of GAM Volume II states that "Each PCFC shall maintain PCFR to record his/her cash advance, utilization and replenishment made and to monitor the PCF balance. All transactions for the day shall be recorder immediately. Different Format of Petty Cash Fund Record Unreconciled PCFRec, Cashbook and Receipt Section 50 (1), Chapter 9 of Accountability and Responsibility for Government Funds and Property, of EO 292 states that “Every officer any government agency whose duties and permit or require the possession or custody of government funds shall be accountable therefor and for safekeeping thereof in conformity with law.” PCFC has no cash box/vault to secure its fund CGSS Sogod CGSS Maripipi.

[Audio] Criteria/Reference Condition Auditee/ Concern Unit Sec. V(2.a) of COA Circular No. 97-002 The PCFC to be established should be sufficient for the recurring expenses of the agency for one month. The disbursing officers may request for replenishment of cash advance when the disbursements reach at least 75%, or as the need requires, by submitting a replenishment voucher with all supporting documents duly summarized in a report of disbursements. 20 July 2022 to 02 Nov 2022- 99.80% 4.11 of Treasury Circular Nr 02-2019 dated 25 April 2019 When bondable officer is separated from the service by reason of resignation or retirement, or relieved of accountability by reason of his/her removal or transfer to another position or government agency, the Head of Agency concerned shall immediately request the BTr for the cancellation of the fidelity bond. The cancellation of the bond shall take effect on the date of separation, relief or transfer. Late termination of designation CGSS Sogod.

[Audio] PETTY CASH FUND CUSTODIAN RECOMMENDATION For District, Stations, and Substations to determine personnel to undergo Petty Cash Fund Custodian seminars and training with certificate to equip them with the proper knowledge of being accountable officer. PCFC should be responsible for safeguarding and safekeeping of all documents pertaining to his Petty Cash, to indicate his order, fidelity bond, Petty Cash Fund Record, PCV, and RPPCV. PCFCs to observe the proper filing and issuance of GAM forms and other related documents The PCFCs to attach certification with an approved copy of the Designation Order and Bond by the Chief of Office/Unit on the initial page of the cashbook. Moreover, foot and close of the said must be observed;.

[Audio] RATING: Very Satisfactory Has demonstrated exceptional level of compliance to rules and regulations; Designated Personnel awareness and compliance on his duties and responsibilities, and requirements set by rules and regulations is marked as good..

[Audio] THANK YOU!. THANK YOU!.