03-CNU2021 Executive Summary

EXECUTIVE SUMMARY
A. INTRODUCTION
The Cebu Normal University (CNU) attained a university status on June 27, 1998
pursuant to R.A. No. 8688. It has two extension campuses located in the Municipalities of
Balamban and Medellin, Cebu.
The administration of the University and the exercise of its corporate powers are
vested exclusively in the Board of Regents (BOR) and the State University and College
(SUC) President as authorized by the Board.
Dr. Filomena T. Dayagbil was designated as Officer in Charge, Office of the

CNU President effective February 2, 2021 until January 31, 2022. The CNU Board of
Regents has elected Dr. Joselito B. Gutierrez, as the new SUC President effective
February 1, 2022 until January 31, 2026.
B. PERSONNEL COMPLEMENT
The University has a total workforce of 572 personnel as of December 31, 2021,
with breakdown as shown below:
The University has a total workforce of 572 personnel

Part-Time Permanent
47% Status of Teaching Non- Total
24%
Employment Teaching
Permanent 216 55 271
Temporary 8 0 8
Casual 0 97 97
Job Order/
Job Order/COS 0 61 61
COS
Part-time 135 0 135
11% Casual Temporary
17% 1% Total 359 213 572
C. FINANCIAL HIGHLIGHTS
The comparative analysis of the financial profile of the Cebu Normal University
for the Calendar Years (CYs) 2021 and 2020 is presented in graphical form as follows:
i
Results of Operation (in Philippine Pesos)
600,000,000.00
400,000,000.00
200,000,000.00
-
Income and Subsidy Expenditure Net Income
2021 2020
Financial Position (in Philippine Pesos)
1,000,000,000.00
500,000,000.00
-
Assets Liabilities Government Equity
2021 2020
D. OPERATIONAL HIGHLIGHTS
The University’s passing percentage for Licensure Examination for Teachers

(LET) has exceeded the National Passing Percentage, as shown below:
Board Examination CNU Passing % National Passing % Topnotchers

LET - September 2021 88.83% 57.76% 2
Enrollees and scholars availing free tuition and other school fees provided under
R.A. No. 10931 or the Universal Access to Quality Tertiary Education Act for Academic
Year (AY) 2021-2022 and AY 2020-2021 are shown below:
Summary of Enrollment
Period AY 2021-2022 AY 2020-2021
First Semester 9,826 8,242
Second Semester 9,201 9,311
ii
Number of Scholars under RA No. 10931
Period AY 2021-2022 AY 2020-2021
First Semester 7,711 6,280
Second Semester 7,504 6,128
E. SCOPE OF AUDIT
The audit covered the financial transactions and operations of the CNU for CY
2021. The objectives of the audit were primarily to: (a) ascertain the level of assurance
that may be placed on management assertions on the financial statements; (b) review on
a test basis, the propriety of disbursements and other financial transactions to determine
whether or not the transactions were made in accordance with existing laws, rules and
regulations and recommend agency improvement opportunities thereon; and (c)
determine the extent of implementation of prior years’ audit recommendations.
The general audit instructions for the audit of the CY 2021 accounts and
transactions of SUCs were likewise considered, when applicable.
INDEPENDENT AUDITOR’S REPORT
The Auditor expressed a qualified opinion on the financial statements of the

University due to the various audit exceptions, which are discussed in detail in Part II of
the herein report, as follows:
1. The general ledger balance of the Inventory accounts amounting to P6.668 million
as of December 31, 2021 could not be relied upon due to:
a) unreconciled variance between the balances per book and physical count of
Inventories totaling P7.114 million;
b) Supplies Ledger Cards (SLC) of the Accounting Unit are not updated; and
c) non-maintenance of Stock Cards (SC), except for Offices Supplies

Inventory, on the part of the Supply Office.
2. Payment of insurance premiums totaling ₱2,608,739.61 were recorded as outright

expenses understating the pertinent prepayment accounts while overstating the
Insurance Expense and Fidelity Bonds Premium accounts as at year-end by
₱1,646,737.22 and ₱161,385.80, respectively.
F. OTHER SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS
In addition, the following are the significant observations and recommendations in

the audit and/or evaluation of the operations of CNU for CY 2021 . These and other audit
observations are fully discussed in Part II of this Report:
iii
1. Brand names were referred to in the procurement of various medicines/supplies
for the use of the University Clinic aggregating ₱505,744.11, contrary to Section
18 of the 2016 Revised Implementing Rules and Regulations (IRR) of Republic
Act (R.A.) No. 9184 and Section 6 (a) of R.A. No. 6675 or the Generics Act of
1988.
We recommended and Management agreed to refrain from stating the brand

names in the Requisition Forms, Purchase Requests (PRs) and Requests for
Quotation (RFQs) in the procurement of medicines and medical supplies. This is
in compliance with the provisions of the Revised IRR of R.A. No. 9184 and the
Generics Act of 1988. This is also to avoid disallowance of transactions which are
not compliant to the said laws.
2. Payment of Honoraria amounting to P202,288.33 representing extra pay to faculty

who rendered teaching overload beyond the allowed six units is contrary to the
Revised 2018 University Code, and is considered an irregular expenditure, as
defined in Section 3 of COA Circular No. 2012-003 dated October 29, 2012.
We recommended for Management to require the departments to properly plan the

assignment of teaching load to its faculty members, to avoid payment of honoraria
beyond what is allowed in the University Code to avoid disallowance of
payments. The Accountant must also stop the processing of payments beyond
what is permitted in the University Code.
Lastly, Management must require the concerned officials to refund the excess
payments they received, amounting P202,288.33.
3. Cash advance amounting to P65,000.00 which was unused for 77 days was not
returned within the reglementary period, exposing the funds to possible risk of
loss contrary to Sections 5.7of COA Circular No. 97-002.
We recommended and Management agreed to require the strict compliance of

Section 5.7 of COA Circular No. 97-002 and instruct the SDOs to return cash
advances not used within two months. To avoid confusion, the purpose/s of the
cash advance must be stated clearly in detail; and its use should be strictly in
accordance with the purpose for its grant.
4. Internet allowance totaling P97,000.00 taken from the Miscellaneous Trust Fund
(MTF) were paid to resource persons who are officials of CNU, and receiving
monthly communication allowance resulting to excessive expenditures as
defined under COA Circular No. 2012-003 dated October 29, 2012.
We recommended that Management stop the payment of internet allowances to

personnel already receiving monthly communication allowance from CNU.
Management must also require the concerned officials who are receiving
communication allowances from CNU, to refund the internet allowances
iv
received by them which were charged to the DOH projects amounting
P97,000.00.
5. Disbursement Vouchers (DVs) covering 2019-2021 transactions were either
submitted late or not submitted at all contrary to Section 7.2.1(a) of the 2009
Rules and Regulations on the Settlement of Accounts (RRSA) prescribed in COA
Circular No. 2009-006 and Section 122 of Presidential Decree (PD) No. 1445.
This hampered the Audit Team’s timely post-audit of transactions.
We recommended and Management agreed to require the Cashier to submit the

reports to the Accountant on time so that the Accountant can likewise make
timely submission of reports to the Audit Team.
G. ON UNSETTLED SUSPENSIONS, DISALLOWANCES AND CHARGES
The Statement of Audit Suspensions, Disallowances and Charges (SASDC) as of

December 31, 2021 showed the following unsettled balances:
Beginning This Period Ending

Balance (January 1 – December Balance
As of 31, 2021) As of
Particulars
December NS/ND/NC NSSDC December
31, 2020 Issued Issued 31, 2021
(₱) (₱) (₱) (₱)
Notice of Suspension 5,306,291.28 1,635,891.00 0.00 6,942,182.28
Notice of Disallowance 13,710,349.79 1,652,622.41 54,588.02 15,308,384.18
Notice of Charge 0.00 0.00 0.00 0.00
H. STATUS OF IMPLEMENTATION OF PRIOR YEARS’

UNIMPLEMENTED AUDIT RECOMMENDATIONS
The Audit Team followed up the actions taken by Management on the

implementation of prior years’ unimplemented audit recommendations. Of the 20 prior
years’ unimplemented audit recommendations, five (5) were fully implemented, 12 were
partially implemented and three (3) were not implemented in CY 2021. The details are:

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EXECUTIVE SUMMARY

Dr. Filomena T. Dayagbil was designated as Officer in Charge, Office of the

The University has a total workforce of 572 personnel

Financial Position (in Philippine Pesos)

The University’s passing percentage for Licensure Examination for Teachers

Board Examination CNU Passing % National Passing % Topnotchers

INDEPENDENT AUDITOR’S REPORT

The Auditor expressed a qualified opinion on the financial statements of the

c) non-maintenance of Stock Cards (SC), except for Offices Supplies

2. Payment of insurance premiums totaling ₱2,608,739.61 were recorded as outright

F. OTHER SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS

In addition, the following are the significant observations and recommendations in

We recommended and Management agreed to refrain from stating the brand

2. Payment of Honoraria amounting to P202,288.33 representing extra pay to faculty

We recommended for Management to require the departments to properly plan the

We recommended and Management agreed to require the strict compliance of

We recommended that Management stop the payment of internet allowances to

We recommended and Management agreed to require the Cashier to submit the

G. ON UNSETTLED SUSPENSIONS, DISALLOWANCES AND CHARGES

The Statement of Audit Suspensions, Disallowances and Charges (SASDC) as of

Beginning This Period Ending

H. STATUS OF IMPLEMENTATION OF PRIOR YEARS’

The Audit Team followed up the actions taken by Management on the

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