AC 531 Operational Auditing TTh 9:00 10:30 AM PURCHASING FUNCTION GROUP

Recommendations to JPIA

Mrs. Concepcion Rasalan Racaza, CPA, MSA Facilitator

Members: 1. 2. 3. 4. 5. 6. Amaya, Serbando D. Jr Team Leader Cabrera, Deborah T. Denila, Jun Marlon M. Dico, Reymar Elnas, Arjay J. Uy, Kenneth Jefferson U.

Stages of JPIA Operations and Recommendation

Broad Guidelines or Procedures in: Planning
Budgeting - Annual plan - name of the activity - nature of the activity - period of implementation - estimated cost

Execution
No activity shall be executed unless it is embodied in the annual plan Meeting to propose activity budget Canvassing of suppliers Get certification from the cashier for availability of funds Endorsement from the adviser Release of funds

Evaluation
Liquidation -Liquidation reports shall be submitted not later than 10 school days after the activity Penalty of -1% per day, of the total activity cost for late liquidation shall be imposed

Audit Liquidation reports shall be subjected to an independent auditor

Recommendations:
1. No program, project or activity will be conducted unless carefully planned and incorporated in the annual plan. To avoid liabilities and deficits, the proposed budgets must be the prescribed ceiling as to the amount that could be allowed in a given project/ program/ activity.

-The adviser attending shall also be the one in charge to monitor all the budget spending for all JPIA activities.

2. Prior to the release of any fund for a particular project, the accountable officer should be evaluated on whether there are unliquidated cash advances under his/her name and certification issued by the treasurer as to the availability of funds/ budget solely for that purpose.

- The proposal for every activity shall convene solely for that purpose. The proposing party shall submit his canvassing to the board. The board may or may not approve it. If approved, then the proponent will secure a certificate from the treasurer.

3. No release of new funds unless liquidation report of previous activity has been submitted.

- Funds shall be given to an accountable person/event organizer and shall be responsible for liquidating all the project/event expenses 10 school days after the event.

4. There should be one adviser that will focus on the budget spending alone and who shall monitor all the budget proposals of the JPIA activities.

-This Adviser shall attend to the annual budget planning meeting so as to take note of all the planned activities with corresponding budget.

5. Release of funds should be centralized from the VP finance office. Proceeds from every fundraising activity should be deposited intact immediately.

6. Variance reports should be prepared after every activity and JPIA officers should prepare to explain significant variances.

7. Hire an external auditor or subject JPIA to audit by USC internal Audit Department or 5th year BSA students.