CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES]

5th Floor Executive Building, 365 Senator Gil Puyat Avenue, Makati City

AGENCY ACTION PLAN and STATUS of IMPLEMENTATION

Audit Observation and Recommendations
For the Calendar Year 2016

Agency Action Plan Results of COA Validation

Target Actual
Implementa Status of Reason for Action Implemen-
Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Audit
Refe- Audit Observation Action Plan Divisio tion /Non- Action to be Follow Implemen-
Recommendation
rence n Implemen- taken Up tation Remarks
Respon From To tation, if From To
-sible applicable

CIAP The CIAP processed We recommended

ML and approved 7,869 and Management
2016 renewal applications agreed to process
p. 4-5 for contractor’s and issue the
licenses and regis- appropriate contrac-
trations or 21 percent tors’ licenses for the
above its 6,500 new applications
physical targets for filed during the year
CY 2016. However, within the pres-
only 1,456 or 63 cribed period as
percent of the 2,322 determined in their
new applications for annual targets.
the year were issued
with appropriate
license within the
prescribed period,
hence, did not
achieve the 80
percent target as
reflected in their CY
2016 Annual Targets.
Morever, the agency
has utilized the
amount of P9.878
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
million or 96 percent -sible applicable
of the total budget of
P10.298 million for
this MFO.

CIAP Nine construction We recommended

ML heavy equipment and Management
2016 and various tools agreed to instruct
p. 5-6 amounting to P25.4 the:
million of the
CMDF in Davao a. Division Chief
City were not being of the Training
utilized for more Division to find
than five years, a strategic part-
exposing them to ner who will
possible loss and help them
wear and tear. revive the skills
and trade
trainings/semi-
nars to benefit
local construc-
tion industries
and/or contrac-
tors and to
increase the
income of the
agency; and

b. Person in-
charge to
transfer/relo-
cate the tools
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
that can still -sible applicable
be used for the
trainings to be
conducted in
CMDF
Training
Center in
Dasmariñas,
Cavite.

CIAP Periodic budgetary We recommended

ML reports, financial and Management
2016 statements and agreed to instruct
p. 6-8 supporting reports / the Accountant,
schedules for CY Budget, Supply/
2016 were not Property Officers to
submitted to the monitor and ensure
Office of the Auditor the timely
within the prescribed submission of the
period of time, which required reports
was not in accord /statements/docume
with the provisions of nts together with
PD 1445, thus, their supporting
precluding the documents, in
conduct of financial compliance with the
audit for the purpose laws, rules and
of rendering an regulations.
opinion on the
fairness of We also recom-
presentation of the mended and
financial statements. Management agreed
to consider the filing
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
of administrative or -sible applicable
dismissal case
against the Chief
Accountant or
assign her functions
to other competent
personnel who will
assume the
responsibility of
preparing and
submitting the
required financial
re-ports as soon as
possible and transfer
her to another
position / division
where she can be
productive.

We further recom-
mended that
Management cause
the refund of the
PBB granted to its
officials and
employees for CY
2015 without
waiting for the
Notice of
Disallowance (ND)
to be issued.
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
-sible applicable

CIAP Bank account We recommended 1) To deposit the AFMD- Sept. On-going Reconciliation 1) To open a Not yet Sept.
ML balance, represent- and Management receipts from rentals CIAP 2017 of receipts for CIAP bank implemented 2017
2016 ting collections of agreed to instruct of office space and The CIAP the use of buil- account for
dings and fees
p. 9- rentals from office the Accountant to fees from lodging has receipts for
imposed for
10 space and equip- remit immediately with an authorized requested to board and
the use of
ment, amounting to to the BTr the government DBM the lodging. buildings and
P20.788 million collections of rental depository bank assignment fees imposed
were not remitted income de-posited under the Revolving of a new Coordination for board and
to the Bureau of in the CMDF Trust Fund account. funding with DBM and lodging with
Treasury (BTr), account amounting source code BTr on the an authorized
contrary to Section to P20,788,564.22. 2) To reconcile under the rules and government
5, General Provi- collections of rentals UACS for procedure of depository
receipts and
sions of the from office and receipts bank under
disbursements
General Appro- equipment up to the derived from under the the guidelines
priations Act period May 31, rentals for Revolving issued under
(GAA) for CY 2014 and deposit to the use of Fund. Bureau of
2016. the Bureau of buildings & Treasury
Treasury fees Circular No.
imposed for 02-2014 dtd.
board and June 16,
lodging. 2014.

DBM issued 2) To transfer

new UACS the receipts
Funding for the above-
Source Code mentioned
for receipts fees from
of CMDF June 1, 2014
derived from to Dec. 31,
rentals for 2016 in the
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
-sible the use of applicable amount of
buildings P9,452,175.64
and fees from CMDF
imposed for Trust account
to the CIAP-
board and
CMDF Revol-
lodging. ving Fund.

CIAP Special cash We recommended

ML advances granted to and Management
2016 the two Cashiers agreed to:
p. 10- amounting to
12 P236,500.00 were a. designate the
transferred to two employees in-
personnel who were charge of
neither designated activities to be
nor duly bonded, undertaken as
which is not in Special
accord to Section 4 of Disbursing
COA Circular No. Officers
97-002 dated (SDOs) to
February 10, 1997, carry out
hence, the difficulty special cash
in determining the advances
accountability, in considering
case of loss or that the
misuse. Cashiers would
not be able to
accommodate
the task and
subsequently
apply the
corresponding
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
bond for them -sible applicable
pursuant to
Treasury
Circular No.
02-2009 dated
August 6,
2009, Revised
Omnibus
Regulations
Governing the
Fidelity
Bonding of
Accountable
Public
Officers; and

b. stop the
practice of
transferring
cash advances
from one
accountable
officer to
another, in
compliance
with the
provisions
under COA
Circular No.
97-002 dated
February 10,
1997.
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
-sible applicable
CIAP Various PPE with a We recommended
ML total cost of P21.656 and Management
2016 million located at the agreed to instruct
p. 12- CMDF Training the Disposal
13 Center – Cavite and Committee to:
Cebu City were
found to be a. appraise the
unserviceable and unserviceable
were not disposed of, property using
thereby, exposing the the COA
said property to Manual on
further deterioration, Disposal;
diminishment in
values and possible b. prepare an
loss. updated IIRUP
as basis for
disposal; and

c. immediately
dispose the
same by lot or
the same cate-
gory/description
either by sale,
donation,
condemnation/
destruction,
transfer or
barter, as the
case may be,
pursuant to
Section 79 of
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
PD 1445. -sible applicable

CIAP Various construction We recommended

ML heavy equipment and Management
2016 amounting to agreed to instruct
p. 13- P19.645 million were the person in-charge
14 stored in a privately to fast track the
owned construction relocation of the
company, hence, subject construction
exposing them to heavy equipment
unauthorized use and from the privately-
possible loss. owned compound to
a government-
owned property and
to strictly comply
with the provisions
of Sections 105 of
PD 1445.

CIAP Insurance premiums We recommended

ML paid amounting to and Management
2016 P318,194.38 for the agreed to instruct
p. 14- PPE with a total cost the Property Officer
15 of P64.171 million to prepare the
was based on an updated RPCPPE
outdated inventory and submit the same
report, thus, not all to the GSIS for the
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
the assets of the renewal of the -sible applicable
agency were insured insurance coverage
pursuant to the of all the property.
provisions of RA No.
656 otherwise known
as the Property
Insurance Law, as
amended by PD No.
245 dated July 13,
1973.

CIAP Documentary stamp We recommended

ML taxes (DST) collected and Management
2016 amounting to agreed to instruct
p. 16 P647,316.00 were not the:
remitted to the BIR.
a. the Accountant to
remit to the BIR,
the docu-mentary
stamp tax
collected
amounting to
P647,316.00; and

b. the Cashier to
dutifully remit
the daily DST
collections in
compliance with
Section 200 of
the National
Internal Revenue
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
Code (NIRC) of -sible applicable
1997, as
amended.

CIAP Of the total balances We recommended

ML of suspensions and and Management
2016 dis-allowances for agreed to:
p. 17- prior years and CY
19 2016 amounting to a. require the
P2.186 million, only persons
the amount of responsible and
P400,877.90 or 18.34 liable for the
percent was settled, suspensions and
leaving a balance of disallowances to
P1.785 million. settle their
Moreover, audit accountabilities
disallowances issued immediately;
prior to the effectivity
of COA Circular No. b. initiate the
2009-006 dated necessary actions
September 15, 2009, in case of
amounting to failure/refusal of
P15,589.47, remained the concerned
unsettled to date. official/
employees to
settle their
accounts; and

c. exert more effort

to trace the
present
whereabouts of
 Agency Action Plan Results of COA Validation
Target Actual
Implementa Status of Reason for Action Implemen-
Audit Person/ tion Date Implementa Partial/Delay Taken/ Date of Status of tation Date
Refe- Audit Observation
Recommendation Action Plan Divisio tion /Non- Action to be Follow Implemen-
rence
n Implemen- taken Up tation Remarks
Respon From To tation, if From To
the persons liable -sible applicable
and consider
resorting to other
legal modes of
extinguishment
of liability
permitted by law.