EXECUTIVE SUMMARY OF THE
The Bureau of Fire Protection - National Capital Region (BFP-NCR) was created by virtue of Republic Act No. 6975, otherwise known as the "Department of the Interior and Local Government Act of 1990" . Known as the operating arm of the Bureau of Fire Protection, it is mandated to prevent and suppress all destructive fires on buildings, houses and similar structures, forests, land transportation vehicles and equipment, ships, vessels docked at piers/wharves and anchored at major ports, petroleum industry installations and to enforce the Fire Code of the Philippines. It also has the power to investigate fire incidents to include the filing of appropriate cases with proper courts and to assist the Armed Forces of the Philippines in meeting national emergency.
The BFP-NCR received sub-allotments from the BFP-National Office for CY 2000, amounting to P104,686,254 in addition to the continuing appropriation of P7,552,282. Total expenditures were P111,582,950 thereby leaving an unexpended balance of P655,586.
In its effort to increase its resources, the Bureau under the leadership of Sr. Supt. Romeo Villafuerte initiated a magnanimous move to closely monitor the collection of fire code fees and ensure prompt and full remittance of the same to the Bureau of the Treasury. Collection of fire code fees increased by 19.6% from P142,894,315.21 to P170,959,169.88 in 2000.
Its total assets, liabilities and residual equity as of December 31, 2000 were P19,162,442.00, P41,112,929.00 and P(21,950,487.00) respectively.
SCOPE OF AUDIT
The audit included, among others, the verification of compliance and regularity of transactions and, to a limited extent, the evaluation of the adequacy and effectiveness of systems and procedures of certain aspects of the Bureauís operations.
A Value for Money Audit is being conducted and a separate report shall be submitted in June 2001.
STATE AUDITORíS REPORT ON THE FINANCIAL STATEMENTS
The Auditor rendered a disclaimer of opinion on the fairness of presentation of the financial statements of the agency because the validity and correctness of Fixed Assets-Building and Structures (8-78-100) and Fixed-Assets-Furniture, Fixtures, Equipment, Work Animals and Books (8-79-100) accounts amounting to P8,199,947.70 and P5,286,151.99, respectively, were not ascertained due to managementís failure to complete the physical inventory taking and to record and reconcile the CY 1998 physical inventory of property with a total value of P689,199,233.00.
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS
For the exception cited above, it is recommended that concerned officials be instructed to complete the inventory count, record the value of the inventoried properties, make the necessary adjustments and reconcile the same in order to reflect the true and correct balance of the fixed assets account.
The other significant findings and recommendations are as follows:
Make representations with the local government executives to remit intact the total amount collected from fire code fees as required under DBM-DOF Joint Circular No. 1-81, dated January 1, 1981 and Sec. 69 of P.D. 1445. Require BFP Officials concerned to coordinate closely with these officials and secure copies of monthly collection lists and remittance advices from the local government units for easy monitoring.
Require the accountable officer to immediately liquidate in full his outstanding cash advances of P1,680,000.00 as required under COA Circular No. 97-002 and, if warranted impose the administrative sanctions contained therein such as withholding of salary and other emoluments due him to be applied in satisfaction of his indebtedness to the government.
These, together with the other findings and recommendations contained in the report, were discussed with the concerned officials of the Bureau. Managementís views and reactions were considered in the report, where appropriate.
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEARSí AUDIT RECOMMENDATIONS
Out of the 5 recommendations embodied in the 1999 Annual Audit Report, only one was fully implemented and two were partially implemented. Those which were not implemented were reiterated in this report.