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Department of Labor and Employment
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Regional Office No. XII
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AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION
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Audit Observations and Recommendations
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For the Calendar Year 2024
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As of February 27, 2025
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Ref.Audit ObservationsAudit ReccomendationsAgency Action PlanStatus of ImplementationReason for Partial/Delay/Non-implementation, if applicableAction Taken/Action to be Taken
(IMSD)		Action Taken/Action to be Taken
(TSSD)		Action Taken/Action to be Taken
(CFO)		Action Taken/Action to be Taken (GSCFO)Action Taken/Action to be Taken
(SARFO)		Action Taken/Action to be Taken
(SCFO)		Action Taken/Action to be Taken
(SKFO)
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Action Plan
(IMSD)		Action Plan
(TSSD)		Action Plan
(CFO)		Action Plan
(GSCFO)		Action Plan
(SARFO)		Action Plan
(SKFO)		Action Plan
(SCFO)		Person/Dept ResponsibleTarget Implementation Date
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FromTo
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AOM No. 2025-001(2024) Dormant receivable accounts aging over 10 years up to 31 years still exist amounting to
₱21,708,959.33 as of December 31, 2024 due to inadequate action, monitoring, and control
of receivables, contrary to COA Circular No. 2023-008 dated August 17, 2023, and cast
doubts on the propriety and validity of the transactions posted in the Receivables account. 		We recommended that Management thru the Accountant to:
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Continue to exert efforts in gathering and preparing the relevant documents to
be used in requesting authority to write-off all dormant accounts
following the step-by-step procedures outlined under COA Circular No. 2023
008 dated August 17, 2023, for the one-time cleansing of all dormant accounts;
and		IMSD/Accountant
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Submit to COA thru the Audit Team the request for authority to write-off all
dormant accounts which could no longer be collected after exhaustion of all
possible remedies, pursuant to the same Circular; and 		IMSD/Accountant
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Henceforth, implement monitoring and control measures to ensure that
current transactions are promptly acted upon to prevent them from becoming
dormant. This includes timely documentation and appropriate actions on
accountabilities.		IMSD/Accountant
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AOM No.: 2025-002 (2024) Granting of Mobile Allowances and Data Subscription Plans to DOLE RO XII employees
resulted in duplicate payments for similar expenses amounting to ₱302,500.00 contrary
to Budget Circular No. 2024-2 dated August 2, 2024. 		We recommend that Management:
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Discontinue granting data subscription to DOLE XII personnel who already
have monthly mobile allowance; and		TSSD/IMSD
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Revise the contract with SMART Communications Inc. and consider limiting
the number of handsets provided to reduce the monthly expenses. 		TSSD/IMSD
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AOM No. 2025-003 (2024) Property Management of the DOLE XII highlights deficiencies in recording, disposal,
custody, and record-keeping, which need enhancement to minimize potential risks of
misrepresentation, deterioration, misuse, and loss.		In view of the above noted deficiencies in property management and internal
controls, we recommend that Management, thru the:
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Accountant Designate to immediately make adjusting entries for:
a. Incorrect recording of PPE-ICT equipment as expense;
b. Unserviceable items incorrectly dropped from the books of accounts before
their disposal; and
c. Semi-Expendable Machinery and Equipment, and Other Supplies and
Materials for Distribution that were already issued to end-users but still
recorded as Inventories in the books of accounts.		To prepare and include the necessary adjustment entries in February 2025IMSD/Accountant/Supply and Procurment Officer
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Unreconciled balances between Accounting Unit’s Financial Statement and
Property Unit’s Report on the Physical Count of PPE (RPCPPE) amounting to
₱4,461,345.00.
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Incorrect dropping of unserviceable PPEs from the books of accounts contrary
to COA-DBM Joint Circular No. 2024-1 dated January 30, 2024, on the Revised
Manual on the Disposal of Government Properties.
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Non-disposal of fourteen (14) unserviceable properties with a total cost of
₱3,292,900.00 as of December 31, 2024, contrary to Section 79 of PD 1445 and
COA-DBM Joint Circular No. 2024-1, thereby exposing the items to further
deterioration and depriving the government from earning income that may be
generated from their disposal. 		Supply Officer to:
a. Trace the existence of Office Equipment and make necessary adjustments
on the RPCPPE;

b. Revisit the COA Circular 2022-004 dated May 31, 2022, and to prepare
and maintain the prescribed forms, registry, and reports as outlined
therein; and

c. Conduct together with the Inventory Committee a physical count on semi
expendable properties in compliance with Section 13, Chapter 8 of GAM
for NGAs; and

d. Prepare RSMI and RSPI and submit a copy to Accounting Unit as basis for
the recording of issued supplies and materials, and semi-expendable
properties to end-users, respectively;
a. Ongoing Inventory and Verification
- Supply Officer and assigned staff to trace/verify the existence of the Office Equipment and coordinate with the Accounting Unit to reconcile records.

b. Ongoing implementation

c. To be implemented



d. Ongoing preparation of reports for implementation


- To separate supply unit from procurement unit in order that the Supply/Property Officer can concentrate on inventory management, asset tracking, and physical count reconciliation and to ensure accurate reporting and prevents delays or inventory shortages.
- Assign additional staff to assist		Insert Update from CFO re: Kidapawan City deployed Kiosk
- RO to send a letter to LGU Kidapawan based on the visit and observation done by the ICT team
IMSD/Supply and Procurment Officer
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Non-preparation of significant reports as outlined in the COA Circular 2022-004
dated May 31, 2022 regarding the increase in the capitalization threshold from
₱15,000.00 to ₱50,000.00.		Create a Disposal Committee to facilitate the disposal of unserviceable
properties; and

Implemented		IMSD/Supply and Procurment OfficerIssued Office Order no. 61-25 DOLE 12 Reconstitution of Disposal Committee, dated February 26, 2025

Office Order No. 62, s. 2025 - reconstituted DOLE 12-Technical Property Inspectors
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Failure to conduct Physical Count of Semi-Expendable Properties Supply Officer and/or Disposal Committee to immediately dispose the
identified unserviceable properties in accordance with Section 79 of PD 1445
and the Revised Manual on Disposal of Government Properties as embodied
in COA-DBM Joint Memorandum Circular dated January 30, 2024, to avoid
further deterioration		Ongoing determination and inventory of unserviceable semi-expendable properties.IMSD/Supply and Procurment Officer
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Semi-expendable Machinery and Equipment, and Other Supplies and Materials
amounting to ₱2,084,921.75 were not recorded as expense upon issuance to end users. 		To prepare and include the necessary adjustment entries in February 2025IMSD/Accountant
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AOM No. 2025-004 (2024) Fund transfers to various LGUs and NGOs/CSOs or Accredited Co-Partners for the
implementation of various DOLE programs, totaling ₱549,583,761.06, remained
unliquidated as of December 31, 2024. Of this amount, ₱326,208,609.65 has aged between
less than one year and ten years, while ₱12,892,364.59 has aged from over ten to thirty
one years, due to inadequate monitoring of program/project completion and liquidation.
This is contrary to COA Circular Nos. 94-013 and 2007-001, and DOLE Department
Order No. 239 s. 2023, casting doubts on the utilization of funds for their intended
purpose, and on the propriety and validity of the transactions posted in the Receivables
account.		We recommend that Management:
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 Conduct intensive follow-ups and involve the DOLE Provincial Offices to actively
participate in requiring the LGUs and NGOs/CSOs to liquidate the FTs;		Inclusion in the PESO meeting on the LGUs/NGOs with pending unliquidated -Monthly follow-ups and visits to the Barangay regarding their liquidation -Assist the Barangay/NGOs/CSOs personnel in complying requirements needed for the liquidation- Conduct intensive follow-ups and visits to the LGUs and NGOs/CSOs to liquidate the FTs;
- Remind LGUs thru their PESO to submit liquidations, and orient them if needed;		Conduct of coordination meeting and regular follow-ups to LGUS and NGOs/CSOs regarding submission of liquidation documents/reports.Conduct inventory and intensive follow ups to LGUs,

Send demand letters to Implementing
Agencies/Accredited Co-Partners (LGUs and NGOs/CSOs) requiring them to liquidate the FTs and return the unexpended balance. attache the Dept. Order and COA Circulars

Conduct visits to LGU to follow up liquidation		All FOs/TSSD/IMSDAs of February 2025, GSCFO visited the concerned Barangay/ NGOs/CSOs with unliquidated
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Continue sending demand letters regularly to these Implementing
Agencies/Accredited Co-Partners (LGUs and NGOs/CSOs) requiring them to
liquidate the FTs and return the unexpended balance, if any; 		Continued sending of demand letters regularly to these Implementing
Agencies/Accredited Co-Partners (LGUs and NGOs/CSOs) requiring them to
liquidate the FTs and return the unexpended balance, if any;
For scheduling of visit to BGUs with unliquidated 		Personal sending of demand letters to the barangay captains and discuss their difficulty in liquidating such fund transfers, assist them if needed - Continue sending demand letters regularly to these Implementing ACPs (LGUs and NGOs/CSOs) require them to liquidate the FTs and return the unexpended balance, if any;Issue formal communications and sending demand letters regularly to the concerned LGUs and NGOs/CSOs requiring them to liquidate the FTs and return the unexpended balance within the timelines, if there is any.All FOs/TSSD/IMSDAs of March 2025, GSCFO submitted liquidation report of Two (2) Barangays and One (1) CSOs
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Ensure that current transactions and those below ten years are properly
documented and appropriately acted upon immediately to avoid being dormant.
This includes timely documentation and appropriate actions on accountabilities; 		Documented conduct of Orientation to partners regarding their roles and responsibilities.Remind the Barangay/ NGOs/CSOs regarding the responsibilities of the co-partner stipulated on the MOA (No. 2 of the Responsibilities of the Proponent Co-Partner)- Include the Unliquidated Projects in the monthly staff meeting Agenda;
- Include the Unliquidated Projects in the monthly PESO meeting Agenda;		Strictly comply with the requirements prescribed under DOLE
DO No. 239 s. 2023 and COA Circular Nos. 94-013 & 2007-001
for the implementation, monitoring, and liquidation of funds released to LGUs and
NGOs/CSOs.		All FOs/TSSD/IMSDTo schedule meeting with the Barangay/ NGOs/CSOs regarding the timely submission of liquidation report
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Direct the Provincial Heads to conduct regular and thorough orientation to
Coordinators and their stakeholders on liquidation requirements and report
submission as required under the above-mentioned DOLE Department Order and
COA Circulars; and		-Conduct refresher orientation with the concerned Barangay/NGOs/CSOs regarding the updated COA liquidation requirements -Assist the Barangay/NGOs/CSOs in the preparation of liquidation documents- To conduct effective orientations to the ACPs regarding the required implementation and liquidations of projects.
- Conduct visitations and demand liquidation documents. Bring a computer laptop and printers to print necessary documents if needed.		Conduct coaching or support for partners with lack administrative capacity.All FOs/TSSD/IMSDTo schedule orientation to the Barangay/ NGOs/CSOs regarding liquidation requirements
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 Henceforth, strictly comply with the requirements prescribed under DOLE
Department Order No. 239 s. 2023 and COA Circular Nos. 94-013 and 2007-001
for the implementation, monitoring, and liquidation of funds released to LGUs and
NGOs/CSOs.		Strict adherence to DO 239-23 and DO 239-AOrient ACPs of their responsibilties prior to approval/ acceptance of their project proposal specifically on liquidation of funds stipulated under DO 239-23 and DO 239-A- To schedule a series of liquidation activities to SARFO Liquidation Team;Creation of field office Technical Working Group to regularly follow up, monitor and document communications and submission of reports.document regular conduct of orientation to stakeholders on liquidation requirements and constantly coordinate on the status of liquidation.All FOs/TSSD/IMSDTo schedule orientation to the Barangay/ NGOs/CSOs regarding liquidation requirements
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AOM No. 2025-005 (2024) The unreconciled balance of reciprocal accounts Due to the Central Office of DOLE
Regional Office XII as against the balance of the Bureau of Works with Special Concerns
(BWSC) in the amount of ₱128,811.77, casts doubt on the reliability of the DOLE-RO XII
Financial Statements.		We recommend that Management, thru the Regional Accountant:N/AN/AN/AN/A
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Prepare a reconciliation report for the Due to Central Office account and make
the necessary adjustments in the books of accounts; and		The reconciliation of the said account is ongoing with the FMS and BWSC. The central office had shared gdrive relative to this for updating.IMSD/Accountant
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Coordinate with BWSC to conduct periodic reconciliation of accounts, at least
quarterly, to ensure that all reconciling items are resolved and/or adjusted on
a timely basis. 		IMSD/Accountant
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Prepared by:Approved by:Date:
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MECHELLE O. IGNACIOJOEL M. GONZALESFebruary 27, 2025
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Chief Administrative Officer/IMSD HeadRegional Director
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Status of Implementation may be either ( a ) Fully Implemented; (b ) Not Implemented.
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