Republic of the Philippines

COMMISSION ON AUDIT
OFFICE OF THE AUDITOR
Construction Industry Authority of the Philippines
5/F Executive Bldg. Center, 369 Senator Gil J. Puyat Avenue, Makati City

MemorandumFor

Cc:

Engr. Rene E. Fajardo

Officer-in-Charge
Construction Industry Authority of the Philippines
Makati City
Mr. Rufino H. Tividad
Chief, Admin., Finance, Management Division

Subject

Non-submission of Financial Statements and

Reports/Schedules
for
the
and second quarters of CY 2016

Date

July 15, 2016

Supporting
first

Relative to the submission of required financial reports for CY 2016 of the CIAP,
we would to inform you that as of this writing, no such financial reports and supporting
attachments have been received by this Office which is a clear violation of the Sections
7.1.1 and 7.2.1 of COA Circular No. 2009-006 dated September 15, 2009.
The Circular provides that the head of the agency shall be the one primarily
responsible for all government funds and property and shall ensure that the required
financial reports and statements are submitted by the concerned agency officials within
the prescribed period by COA. Moreover, the initiation of any necessary administrative
and/or criminal action rests with him in case of unjustified failure/refusal to effect
compliance by his subordinates. Gross negligence in disciplining his subordinates who
are the subject of repeated audit findings shall subject the head of the agency to
disciplinary action by the proper authorities as the evidence may warrant.
In relation to this, we would like also to inform you that this practice has already
been repeatedly noted as recurring deficiency of the CIAP that is why for the preceding
two years, no Annual Audit Reports (AARs) have been issued by the audit team due to
such non-submission of financial statements and its supporting documents within the
reglementary period. To preclude its repetition this calendar year, we remind you, as the
new Officer-in-Charge, to please submit to us the following reports and schedules:
1. Quarterly Financial Statements and related notes for the 1 st and 2nd semester
(using the Statement of Management Responsibility for Financial Statements as
the covering letter for transmittal), which should be submitted within 15 days after
the end of such quarters;

2. Monthly Trial Balances from January to June 2016, which should be submitted
within 10 days after the end of such months;
3. Report of Checks/ADAs issued from January to June 2016, including
Disbursement Vouchers and supporting documents, which should be submitted
within 10 days of the ensuing month;
4. Report of Collections and Deposits from January to June 2016, including ORs and
deposit slips, which should be submitted within 10 days of the ensuing month;
5. Bank Reconciliation Statements January to June 2016, which should be submitted
within 15 days after the end of the month; and
6. Payrolls and Liquidation Reports from January to June 2016, which should be
submitted within 10 days of the ensuing month.
Please be noted to effect the submission of such documents to COA within 15
days from the receipt of this letter, as instructed by our Director. Otherwise, we will be
constraint to issue Notices of Suspension (NSs) to CY 2016 CIAP transactions covered by
such unsubmitted documents. And for your information, such NSs if then issued, will
mature to Notices of Disallowances (NDs) if after three (3) months from receipt, no
compliance documents have been received by this Office.
We ask for your deep understanding and outmost consideration because we would
strictly enforce this, as instructed by our Superiors, as this has been a significant and
recurring audit observation of the CIAP. Thank you.

YOLANDA P. JUAN
State Auditor III
OIC- Audit Team Leader