EXECUTIVE SUMMARY OF THE
The Biologicals Production Service (BPS) was created in 1987, by virtue of Executive Order No. 119 otherwise known as the Reorganization of the Department of Health (DOH). The division was separated from Bureau of Research and Laboratories (BRL) and became a major service unit of the DOH.
BPS aims to produce quality vaccines in support of the Expanded Program on Immunization (EPI) of DOH for the prevention of diseases such as typhoid, cholera, rabies, el tor and to counteract the effect of cobra bites.
For the year 1999, the agency had undertaken various projects and programs. The major accomplishments are as follows:
During the year, BPS received a total allotment of
In addition to the above, the agency generated income in the total amount of
The agency’s assets, liabilities and residual equity as of December 31, 1999
SCOPE OF AUDIT
The audit covered the operations of the Biologicals Production Service for calendar year 1999. In addition to the regular financial and compliance audits, the results of Value for Money audit conducted for the year are in a separate report. It was aimed at ascertaining the correctness of the financial transactions, the reliability of the financial reports and the adequacy of accounting records. It also included an evaluation of the agency’s performance, to a limited extend, to determine whether operational plans were carried out and accomplished as targeted and whether government resources were utilized efficiently and economically and whether desired results have been effectively achieved, in compliance with existing laws, rules and regulations. The examination was made in accordance with the generally accepted government auditing standards and accordingly included such test of the accounting records and other auditing procedures we considered necessary in the circumstances.
OPINION IN THE STATE AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
The Auditor rendered a qualified opinion on the fairness of presentation of the financial statements due to the following:
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS
With the exception cited above, the Auditor recommended to management the conduct of a physical inventory of Finished Products and Semi-Expendable Supplies of the agency and comply strictly with the provision of Section 490 Vol. 1 of the GAAM, and reconcile the book balance of account Supplies and Materials Charged to Appropriation with physical count. The following are the significant findings and the corresponding recommendations.
Direct the Property Officer to prepare a list of insurable properties and submit to the General Insurance Fund of the GSIS, all the required documents for proper appraisal of all equipment to be insured and make representation with the DBM for funding of the insurance premium.
Direct the Chief Accountant to confirm the receivables from the persons concerned and demand immediate payment of their accounts.
Direct the concerned officials and employees to accelerate the settlement of the aforecited suspensions and disallowances. Enforce immediate compliance with the auditorial requirements, and observe strictly the rules and regulations on disbursements to minimize suspensions and disallowances.
The Auditor had discussed the findings and recommendations with the Auditee and the latter expressed willingness to adopt the above cited recommendations. Management’s views and reactions were considered in the report, where appropriate.
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEAR’S AUDIT RECOMMENDATIONS
Out of the twenty-seven (27) prior year’s recommendations embodied in the 1998 Annual Audit Report (AAR), thirteen (13) were fully implemented, four (4) were partially implemented, eight (8) were not implemented, while two (2) were considered not implementable.