SUMMARY OF THE
A. CREATION AND MANDATED FUNCTIONS
The Provincial Environment and Natural Resources Office came into Existence following the reorganization of the Department of Environment, Energy and Natural Resources and was structurally and financially renamed the Department of Environment and Natural Resources by virtue of Executive Order No. 192 dated June 10, 1987.
Generally, the functions of the Provincial Environment and Natural Resources Office in the province are the following:
B. FINANCIAL PROFILE
During the year the agency received total allotments of P64,797,023.68 from all fund sources broken down as follows: the Comprehensive Agrarian Reform Program fund (CARP-158) P1,300,716.50; Regular fund P61,148,436.18; NRMP fund (102) P283,371.00 and CPPAP-GOP-172 P1,524,250.00; CPPAP-GP-102 P540,250.00. Expenditures incurred amounted to P64,500,478.87 leaving a balance of P296,544.81.
SCOPE OF AUDIT
The audit covered operations of the Provincial Environment and Natural Resources Office-Isabela for calendar year 2000. The audit was aimed to ascertain the fairness and reliability of the agency’s financial position and results of operation. We post-audited collections and other cash transactions to ascertain their propriety and conformity with existing policies, rules and regulations.. We also conducted value-for-money audit which is embodied in a separate report
STATE AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
The Auditor rendered a qualified opinion on the fairness of presentation of the agency’s financial statements due to the effect of the Property and Equipment amounting to P2,265,335.00 which were not book-up.
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS AND FAVORABLE OBSERVATIONS
For the exception cited above, the Auditor recommends that the Property Equipment should be booked-up in order to present the correct balances of the property account in the financial statements. The audit findings and recommendations were discussed in detail in the report. Among the significant ones together with their corresponding recommendations are summarized as follows:
A. Findings and Recommendations
Enforce immediate settlement of the audit suspensions and disallowances pursuant to Section 9.1 of the Revised manual on Certificate of Settlement and Balances (CSB). Comply strictly to the government auditing rules and regulations before effecting payments on claims to minimize suspensions and disallowances in audit.
Conduct physical inventory of the property and equipment and submit the report to the Auditor in accordance with Section 490 of the Government Accounting and Auditing Manual, Volume I. Make necessary adjustments in the fixed asset account for any discrepancy.
Require the Accountant/Bookkeeper to prepare and submit the Bank Reconciliation Statements monthly to the Office of the Auditor in accordance to Section 74 of Presidential Decree No. 1445 and Commission on Audit Circular No. 92-326 dated February 22, 1990.
Secure title for the PENRO-Isabela lot inorder to show conclusive evidence that ownership thereof is vested in the name of the agency, and to discourage probable squatters in the premises, pursuant to Section 449, Volume I of the Government Accounting and Auditing Manual.
B. Favorable Observations
For the year 2000, the agency had the following accomplishments which were validated from reports; to wit;
C. Compliance with Tax Laws
In compliance with Bureau of Internal Revenue Regulation No. 2-98, dated April 17, 1998, implementing Republic Act 8424 Re: withholding of taxes due from contractors, suppliers, the agency had been consistently and regularly withholding and remitting the withholding tax due from contractors/suppliers to the BIR office in the locality amounting to P26,547.30.
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEAR’S AUDIT RECOMMENDATIONS
Of the four (4) audit recommendations in the 1999 Annual Audit Report, one (1) was reiterated as a finding in the current year’s Annual Audit Report, because of its material effect in the financial statements, one (1) was partially implemented and two (2) were not implemented as restated in part IV of this year’s report.