A CASE STUDY

FOR

Submitted by:

dela Cruz, Danah Romina G.

Dizon, Diane Mariz

Salvador, Renz Gabriel S.

BSA 5-4

Submitted to:

Prof. Josephine Yopo

 VISION
CEU is the University of first choice – the leading higher education institution fostering
excellence in the pursuit of knowledge while engendering personal integrity and social
responsibility.

MISSION

CEU is committed to:

 Provide a rich and stimulating academic environment in order to promote creative and
scholarly academic pursuits among its faculty and to equip students with the knowledge,
skills, sound moral values, and an appreciation of arts and culture that would prepare them
to become productive and innovative professionals with a commitment to nation building
in the context of one world;
 Enhance the development of higher education in the Philippines through its exemplar
academic programs and practices, leadership in professional organizations, and
participation in academic consortia;
 Contribute to the promotion of human health and well-being through high-quality programs
in health professional education, research, and community service.
 YEAR 2016

B. AUDIT OPINION

For the year 2016, the auditor rendered an unqualified opinion which means that CENTRO
ESCOLAR UNIVERSITY., presented all their financial statements fairly in all material aspects as
of March 31, 2016.

C & D. AUDIT OBSERVATIONS, ACCOUNTING ISSUES AND RECOMMENDATIONS

E. FINANCIAL RATIOS AND ANALYSIS

 FINANCIAL RATIOS FOR 2016

a. Current Ratio = Current Assets/Current Liabilities

= 450,097,534/482,854,781
= 0.93

b. Debt Ratio = Total Liabilities/Total Assets

= 862,465,835/ 3,712,626,877
= 0.23
  HORIZONTAL ANALYSIS

Analysis:

Analysis:

 VERTICAL ANALYSIS

Analysis:

Analysis:

F. MAJOR SOURCES OF FUNDS AND REVENUES

G. MAJOR EXPENDITURES
 The expenses incurred in the year 2016 totaling of P1,374M. Large amounts of expenses
were incurred mostly in SSS Contributions and Other Employee Benefits. Next in line was the
expenses incurred in Salaries and Wages. By ensuring the welfare of its employees especially the
school professors, who were the ones to give knowledge to the students, incurrence of this
expenditure is still aligned to CEU’s vision which is fostering excellence in the pursuit of
knowledge, and to one of CEU’s mission which is to provide a rich and stimulating academic
environment in order to promote creative and scholarly academic pursuits among its faculty and
to equip students with the knowledge, skills, sound moral values, and an appreciation of arts and
culture that would prepare them to become productive and innovative professionals with a
commitment to nation building in the context of one world.
 YEAR 2017

B. AUDIT OPINION

For the year 2017, the auditor rendered an unqualified opinion which means that CENTRO
ESCOLAR UNIVERSITY., presented all their financial statements fairly in all material aspects as
of March 31, 2017.

C & D. AUDIT OBSERVATIONS, ACCOUNTING ISSUES AND RECOMMENDATIONS

E. FINANCIAL RATIOS AND ANALYSIS

FINANCIAL RATIOS FOR 2017

a. Current Ratio = Current Assets/Current Liabilities
= 541,528,185/398,785,754
= 1.36

b. Debt Ratio = Total Liabilities/Total Assets

= 811,217,159/3,820,261,021
= 0.21

 HORIZONTAL ANALYSIS

Analysis:
Analysis:

 VERTICAL ANALYSIS

Analysis:

Analysis:

F. MAJOR SOURCES OF FUNDS AND REVENUES

G. MAJOR EXPENDITURES
 The expenses incurred in the year 2017 totaling of P1,291M. Again, large amounts of
expenses were incurred mostly in SSS Contributions and Other Employee Benefits. Next in line
was the expenses incurred in Salaries and Wages. By ensuring the welfare of its employees
especially the school professors, who were the ones to give knowledge to the students, incurrence
of this expenditure is still aligned to CEU’s vision which is fostering excellence in the pursuit of
knowledge, and to one of CEU’s mission which is to provide a rich and stimulating academic
environment in order to promote creative and scholarly academic pursuits among its faculty and
to equip students with the knowledge, skills, sound moral values, and an appreciation of arts and
culture that would prepare them to become productive and innovative professionals with a
commitment to nation building in the context of one world.
 YEAR 2018

B. AUDIT OPINION

For the year 2018, the auditor rendered an unqualified opinion which means that CENTRO
ESCOLAR UNIVERSITY., presented all their financial statements fairly in all material aspects as
of March 31, 2018.

C & D. AUDIT OBSERVATIONS, ACCOUNTING ISSUES AND RECOMMENDATIONS

E. FINANCIAL RATIOS AND ANALYSIS

FINANCIAL RATIOS FOR 2018
a. Current Ratio = Current Assets/Current Liabilities
= 446,896,736/466,065,383
= 0.96
b. Debt Ratio = Total Liabilities/Total Assets
= 827,735,990/3,953,118,699
= 0.21

 HORIZONTAL ANALYSIS

Analysis:

Analysis:
  VERTICAL ANALYSIS

Analysis:

Analysis:

F. MAJOR SOURCES OF FUNDS AND REVENUES

G. MAJOR EXPENDITURES

The expenses incurred in the year 2018 totaling of P1,256M. Again, large amounts of
expenses were incurred mostly in SSS Contributions and Other Employee Benefits. Next in line
was the expenses incurred in Salaries and Wages. By ensuring the welfare of its employees
especially the school professors, who were the ones to give knowledge to the students,
incurrence of this expenditure is still aligned to CEU’s vision which is fostering excellence in the
pursuit of knowledge, and to one of CEU’s mission which is to provide a rich and stimulating
academic environment in order to promote creative and scholarly academic pursuits among its
faculty and to equip students with the knowledge, skills, sound moral values, and an appreciation
of arts and culture that would prepare them to become productive and innovative professionals
with a commitment to nation building in the context of one world.

SUMMARY AND ANALYSIS OF FINANCIAL RATIOS

For Current Ratios:
YEAR 2016 2017 2018
CURRENT RATIO 0.93 1.36 0.96

Analysis:
For the year 2016 and 2018, the current ratios of Centro escolar University are 0.93 and
0.96, respectively, which are both less than 1. It means that they have more current liabilities than
current assets. These are not good percentages for them but it is not that alarming also because
they are both close to 1.

For Debt Ratios:

For Debt Ratios:
YEAR 2016 2017 2018
DEBT RATIO 0.23 0.21 0.21

Analysis:
For the past three years, the debt ratio of Centro Escolar University is less than 1. It only
means that they have less liabilities than their assets which is a good sign for every organization.
It also shows less risk for the organization in terms of their capability of maintaining more assets
than liabilities.

H. ACCOUNTS PECULIAR TO THE ORGANIZATIONS

I. ORGANIZATIONAL STRUCTURE AND POSSIBLE INTERNAL CONTROL ISSUES

BOARD OF DIRECTORS
Chairman
Mr. Basilio C. Yap
Directors
Dr. Ma. Cristina D. Padolina, Vice
Chairman
Mr. Benjamin C. Yap
Dr. Alejandro C. Dizon
Dr. Emilio C. Yap III
Dr. Johnny C. Yap
Ms. Corazon M. Tiongco
Independent Directors
Dr. Emil Q. Javier
Dr. Angel C. Alcala

PROCUREMENT COMMITTEE
AUDIT COMMITTEE NOMINATION COMMITTEE Chairman
Chairman Chairman Ms. Corazon M. Tiongco
Dr. Emil Q. Javier Dr. Ma. Cristina D. Padolina Vice Chairman
Mr. Irineo C. Espino

Members
Dr. Angel C. Alcala
Dr. Alejandra C. Dizon
Atty. Sergio F. Apostol
Members
Members
Dr. Emil Q. Javier Mr. Cesar F. Tan
Ms. Corazon M. Tiongco
Dr. Teresa R. Perez
Atty. Sergio F. Apostol

POSSIBLE INTERNAL CONTROL ISSUES