EXECUTIVE SUMMARY

A. INTRODUCTION

The Philippine Overseas Employment Administration (POEA) is an attached

agency of the Department of Labor and Employment (DOLE) responsible for optimizing
the benefits of the country’s overseas employment program. It was created in 1982
through Executive Order (EO) No. 797 to promote and to monitor the overseas
employment of Filipino workers. The EO also integrated the functions of the abolished
Overseas Employment Development Board (OEDB), National Seamen’s Board (NSB),
and Bureau of Employment Services into the POEA. In July 1987, EO No. 247 was
issued by then President Corazon C. Aquino, aimed to reorganize the POEA structure,
rationalize its functions and systematize its operations.

The passage of Republic Act (RA) No. 8042, known as the "Migrant Workers and
Overseas Filipino Act of 1995,” and was amended by RA 10022 on July 8, 2010, defined
the following specific policy thrusts in the light of emerging issues:

• Guarantee of migrant workers’ rights;

• Deregulation of POEA regulatory functions;
• Stricter rules on illegal recruitment activities and the corresponding penalties;
• Selective deployment;
• Repatriation of Workers;
• Reintegration Program;
• Shared government information system on migration and other basic
assistance to Overseas Filipino Workers (OFWs) and their families;
• Use of information technology to facilitate dissemination of labor market
information;
• Expanded grassroots outreach education program to enable potential OFWs to
arrive at informed decisions;
• One-country team approach to synergize services to Filipino overseas; and
• Restructuring of systems for disposition of adjudication cases relating to
overseas employment.

The new law also specifies the following major functions:

• Regulate private sector participation in the recruitment and overseas

placement of workers;
• Formulate and implement a system for promoting and monitoring the overseas
employment of Filipino workers;
• Protect the rights of Filipino workers for overseas employment;
• Exercise exclusive jurisdiction to hear and decide all pre-employment cases
which are administrative in character;

i
 • Recruit workers to service the requirements for trained and competent Filipino
workers of foreign governments and their instrumentalities; and
• Develop and implement programs for the effective monitoring of returning
contract workers.

At the helm of the POEA is the Governing Board chaired by the Secretary of the
DOLE. The POEA Administrator is the Vice-Chairman and representatives from the
private, women, sea-based and land-based sectors serve as members. The POEA
management is headed by an Administrator, who oversees the daily operations of the
agency and is supported by three deputy administrators. The incumbent Administrator in
Calendar Year 2012 is Atty. Hans Leo J. Cacdac.

The Administration has expanded its reach of Filipinos through the three regional
centers located in La Union for Luzon, Cebu City for Visayas and Davao for Mindanao
areas. Aside from the regional centers, extension and satellite units were also established
but under the jurisdiction and supervision of the said regional centers. Extension units are
in Baguio, Iloilo, Cagayan de Oro, Zamboanga, Iligan and Butuan, while satellite offices
are located in Tuguegarao, Pampanga, Laguna, Legazpi, Naga, Bacolod, Tacloban,
Koronadal and Tawi-tawi.

The regional centers, extension and satellite offices have no complete set of books
and field operating expenses are granted through cash advances in the three regional
centers only.

The personnel complement of the POEA as of December 31, 2013 consists of 346
permanent employees, five temporary employees and 14 casual employees. The agency
also hired 186 service contractors. During the year, 17 employees retired and seven
transferred to other government agencies.

B. OPERATIONAL HIGHLIGHTS

The reported accomplishments for Calendar Year 2013 of the POEA are as
follows:
Programs Indicators Target Actual %
1. Overseas Employment Facilitation Services
1.1 Facilitation of No. of contracts processed 1,850,463 2,241,854 121.15
Deployment of
Overseas Filipino No. of workers deployed 1,664,118 1,836,345 110.35
Workers (OFWs)
1.2 Accreditation/Registra- No. of Foreign principals accredited/
30,805 21,275 69.06
tion of Foreign registered
Principals No. of position/vacancies approved 606,976 908,147 149.62
1.3 Labor Market No. of bilateral/multilateral labor
20 20 100.00
Monitoring and agreements reviewed and recommended
Management
No. of technical missions dispatched 2 5 250.00
1.4 Government Placement No. of Workers placed the government
5,741 8,022 139.73
Services hiring facility
1.5 Global OFW Mapping
No. of countries/destinations mapped 185 231 124.86
and Profiting

ii
 Programs Indicators Target Actual %
1.6 Manpower Registry and No. of workers applicants registered 203,932 234,559 115.02
Profiling No. of skills/manpower profiled
1.7 Conduct and
No. of jobs fair facilitated/supervised 1,305 1,330 101.92
Monitoring of Jobs Fair
2. Labor Standards Enforcement and Dispute Resolution
2.1 Compulsory Arbitration No. of Adjudication cases disposed 4,050 3,230 79.75
No. of requests for voluntary conciliation
2.2 Conciliation
disposed
2.3 Repatriation of OFWs No. of request for repatriation acted upon variable 4,515
3. Social Protection and Welfare Services
3.1 Licensing Program/ No. of new agencies issued licenses 50 40 80.00
Continuing Agency
No. of renewed licenses 144 135 93.75
Education Program
No. of Special Recruitment Authority
3.2 Employment Regulation (SRA) issued 3,600 5,999 166.64
Services
No. of Special Exit clearances issued 50 83 166.00
3.3 Anti-Illegal Recruitment Program
No. of Pre-Employment Orientation
1,150 1,453 126.35
Seminar (PEOS) conducted
No. of PEOS participants attended 120,000 173,143 144.29
No. of Capability Enhancement Training
10 12 120
3.3.1 Preventive conducted
No. of Trainers trained 526 532 101.14
No. of Anti-Illegal Recruitment (AIR)
41 73 178.05
seminars conducted
No. of AIR seminar participants 2,000 5,782 289.10
3.3.2 Remedial No. of request for assistance acted upon 6,440 108.32 6,976

C. FINANCIAL HIGHLIGHTS

During FY 2013, POEA had total appropriations of P334.555million under

General Appropriations Act for FY (RA 10352). In addition, the Agency has existing
Automatic Appropriations for Personal Services amounting to P18.785 million for
Retirement and Life Insurance Premiums (RLIP). Total allotments received amounted to
P406.299 million. Of the total allotments, P406.197 million was spent thereby leaving an
unobligated balance of P.032 million. Details of the distribution of sources and
application of funds are shown below:

Allotment, Obligations Incurred and Balances

Obligations Unobligated
Sources of Funds Allotments
Incurred Balance
Current Year’s
Appropriation
PS P 225,643 P 225,611 P 32
MOOE 135,149 135,149 -
Capital Outlay 36,182 36,182 -
Subtotal P 396,974 P 396,942 P 32

iii
 Obligations Unobligated
Sources of Funds Allotments
Incurred Balance
Prior Year’s
Appropriation
MOOE 1,500 1,500 -
Capital Outlay 7,755 7,755 -
Subtotal 9,255 9,225 -
TOTAL P 406,229 P 406,197 P .032

The total amount of NCA received from DBM for the General Fund was
P394.8M. This already includes NCA for Accounts Payable/Terminal Leave Benefits
amounting to P16.8M. The total remittance of taxes withheld and remitted to BIR
covered by TRA for CY 2013 was P26.2M.

The agency’s financial condition are as follows:

Particulars CY 2013 CY 2012 Inc/(Dec)

Assets P478,088,747.20 P443,358,363.81 P 34,730,383.39
Liabilities 260,931,191.68 203,581,125.40 57,350,066.28
Government Equity 217,157,555.52 239,777,238.41 (22,619,682.89)

For CY 2013, POEA reported an income of P427,839,100.77 from issuance of

On-site Overseas Employment Certificate (OEC) for the Balik-Manggagawa (BM)
Processing Services and from fines and penalties. The income collected is recorded and
likewise remitted to the National Treasury, details are shown below:

Sources of Increase % Increase

2013 2012
Income (Decrease) (Decrease)
Income from
Government P404,761,589.18 P423,157,590.91 P(18,396,001.73) 4
Services
Rent Income 1,103,859.80 1,278,923.20 (175,063.40) 14
Dividend Income - 1,308.86 (1,308.86) 100
Interest Income 31,176.54 68,298.99 (37,122.45) 54
Miscellaneous
203,955.62 1,007,822.50 (803,866.08) 80
Income
Fines and
13,188,519.63 12,964,336.20 224,183.43 2
Penalties
License Fees 8,550,000.00 23,700,000.00 (15,150,000.00) 64
TOTAL P427,839,100.77 P 462,178,280.66 P 34,339,179.89

D. SCOPE OF AUDIT

The audit covered the financial transactions and operations of the POEA for the
year ended December 31, 2013. The audit was conducted to: (a) verify the level of
assurance that may be placed on management’s assertions on the financial statements;

iv
(b) recommend agency improvement opportunities; and (c) determine the extent of
implementations of prior year’s audit recommendations. We also conducted compliance
audit and checked the validity and propriety of the transactions.

E. INDEPENDENT AUDITOR’S REPORT

The Auditor rendered a qualified opinion on the fairness of the presentation of the
financial statements of the POEA for CY 2013 for reasons stated in the attached
Independent Auditor’s Report and as discussed in detail in Part II of this report.

F. OBSERVATIONS AND RECOMMENDATIONS

The summary of the significant audit observations and recommendations, which

are discussed in detail under Part II of the report, are as follows:

1. The payment in the amount of P27,614,308.08 made by the agency to the LBP
Service Corporation for the hiring of 186 personnel exceeded its contract cost of
P26,525,969.06 by P1,088,339.02 due to billing adjustments, increase in number
of personnel and claims for overtime services, depleting its funds for Maintenance
and Other Operating Expenses (MOOE). Moreover, this contract of service which
represented 34.38% of the agency’s total manpower complement even included
personnel performing clerical and administrative functions contrary to the
provisions of Section 81 of RA 10352 or the General Appropriations Act for
Fiscal Year 2013. (Paragraphs 1-8)

We recommended that (i) the Service Contractor and/or the agency officials
responsible for this transaction be made to refund the payments made in
excess of the contract costs; and (ii) discontinue the hiring of personnel under
a Contract of Service where the functions to be performed are clerical or
administrative in nature or similar to work being performed by the regular
personnel of the agency.

2. The inspection of recruitment agencies prescribed under Part III, B (2) and C (4)
of the POEA Inspection Manual to validate compliance with POEA Rules and
Regulations had not been strictly conducted such that sanctions imposed against a
number of erring agencies for recruitment and other violations have not been
implemented, resulting in the continued recruitment of workers by these agencies.
(Paragraphs 9-25)

We recommended that the Administrator direct the strict implementation of

the Rules and Regulations Governing the Recruitment and Deployment of
Overseas Workers of the POEA. Attention in particular is invited to the
imposition of sanctions against erring recruitment agencies for the protection
of Overseas Filipino Workers.

v
3. The agency stands to lose P787,875.00 in rental income year after year due to
inadequate information covering the implementation of Computer - Based Test
(CBT) under an agreement entered with the Human Resource Development –
Korea (HRD-Korea), where the POEA shall provide the space requirements for
the CBT. Moreover, the application of the monthly rental fee to the renovation
cost of the venue, until fully recovered have resulted in automatic appropriation of
funds for the purpose. (Paragraphs 26-32)

We recommended that Management direct : (i) the HRD Korea to pay for
the rental expenses; (ii) the Memorandum of Agreement with the POEA
renting out the venue for the conduct of Computer-Based Test be properly
documented and reviewed; (iii) the application/offsetting of the rental fees
against expenses incurred by the lessee for renovation be discontinued and
the officials responsible be made to explain; ((iv) the responsible officials to
justify renting out its office space to outsiders while simultaneously paying
rental/storage fees to outside contractors; and (v) all documents and
requested information be submitted to the COA Audit Team for technical
review.

4. Unserviceable properties valued at P9,024,541.06 have not been disposed of

depriving the agency to earn additional income had disposal been made thru sale,
as prescribed under Section 79 of PD No. 1445 and hence, the sizeable space
occupied in the stockrooms/basement area could have been cleared and put to use
for other purposes. (Paragraphs 33-39)

We recommended that the Head of the Agency direct the creation of a

Disposal Committee to : (i) device a program for disposal with time
schedules; (ii) inspect the unserviceable equipment to verify its status in
order to justify its disposal; (iii) set the final appraised value of the property
considering obsolescence, market demand, physical condition and result of
previous bidding for similar property; (iv) recommend to the head of the
agency for approval the manner of disposal; and (v) dispose promptly items
that do not have economic value which are recommended for immediate
condemnation or destruction.

5. Representation expenses of P5,083,824.11 could have been considerably reduced

had meetings and related activities been conducted with restraint and funds
utilized instead for more essential purposes. (Paragraphs 40-45)

We recommended that agency officials responsible for the activities exercise

restraint in the disbursement of government funds and henceforth,
discontinue: (i) the practice of serving meals and snacks during meetings of
its own officials and employees; (ii) distribution of tokens (iii) conduct of
workshops/meetings in hotels or outside of the POEA offices and (iv)
incurrence of expenses for religious activities.

vi
6. The agency’s Repatriation Unit took up to 79 days to act on requests for
repatriation of 119 distressed OFWs awaiting repatriation as of the end of the
year, that may have further exposed them to abuse/maltreatment and other risks
that were the subject of complaint. (Paragraphs 46-60)

We recommended that the Head of the Agency direct the Repatriation Unit
personnel to act immediately on all repatriation requests and monitor
completion of the procedures until the worker is safely repatriated back.

7. The accountability over the implementation of the Employment Permit System –

Test of Proficiency in Korea (EPS-TOPIK) which is a special government to
government hiring program covering the period CY 2005 to CY 2011 had not
been transparent due to non-recording of financial transactions, including
collections estimated at US$515,436.00 as well as disbursements made out of the
funds. (Paragraphs 61-72)

We recommended that: (i) the POEA officials responsible in implementing

the Employment Permit System – Test of Proficiency in Korea (EPS-TOPIK)
from 2005 to 2011 account for the funds received; (ii) that complete
recording/accounting of the funds be submitted as well as all the
documentary requirements covering the expenses incurred to implement the
program; (iii) the submission of all Memoranda of Understanding covering
the 1st up to the 7th EPS-TOPIK and the Service Commitment Agreements
executed pursuant to the MOU; and (iv) henceforth, all funds received by the
POEA to implement the EPS-TOPIK and similar programs be treated as
government funds and utilization thereof be subjected to all pertinent laws,
and accounting and auditing rules and regulations.

8. Management commitment to put to use thru donation/transfer to another

government agency, one unit of server valued at P8,129,266.45 purchased out of
the P72,919,000.00 funds intended for the OFW e-Link Project, that had been
terminated prior to full implementation five years ago, had not been
accomplished to date. (Paragraphs 73-79)

We recommended that the Head of the Agency thru the Director of the
Information and Communication Technology Branch coordinate with
counterparts at the Bureau of Immigration for the transfer of one unit
server. Henceforth, conduct a judicious planning and ensure complete
documentation with identified partners before implementing similar projects
in the future.

9. Unliquidated Advances to Officers and Employees as of December 31, 2013 in the

total amount of P458,956.85 aged eight to 17 years, contrary to Section 89 of
Presidential Decree No. 1445 and of COA Circular No. 97-002 resulted in the
overstatement both of assets and of government equity accounts year after year.
(Paragraphs 80-87)

vii
 We recommended that the Head of the Agency - (i) strictly enforce
liquidation of all cash advances immediately after the purposes for which
they were granted have been served; (ii) refrain from granting additional
cash advances to Accountable Officers with unsettled cash advances;
(iii) institute appropriate sanctions against Accountable Officers who fail to
liquidate cash advances within the period prescribed by law and regulations;
and (iv) request for write off of long overdue accounts if warranted, and
following the guidelines prescribed under existing regulations.

10. The amount of P7,692,352.00 that formed part of the total year-end cash balance
of P13,043,409.72 maintained in a trust fund had not been remitted to the
National Treasury contrary to Sections 4 and 8 of the General Provisions of R. A.
No. 10352 or the General Appropriations Act for FY 2013, depriving the
government use of dormant cash balances. (Paragraphs 95-101)

We recommended that the officials responsible for these lapses render a

satisfactory explanation on the non-remittance of the trust funds to the
National Treasury. Henceforth, the Agency’s Cashier deposit all trust
collections to the National Treasury, unless otherwise authorized, in
compliance with the above-cited provisions of law.

11. Credits totaling P915,681.77 were posted to the subsidiary ledger of an

Accountable Officer in settlement of cash advances for intelligence purposes,
without the covering Credit Advice issued by the COA Chairman or authorized
representative, contrary to COA Circular No. 2003-002 dated July 30, 2003 that
in effect understated the balance of account Advances to Officers and Employees
(148) by the same amount. (Paragraphs 102-114)

We recommended that the Head of the Agency direct the Chief Accountant
to restore the amount of P915,681.77 under the accountability of the AO and
explain settlements made without Credit Advices and the Management to
exert effort in locating the whereabouts of the AO for filing of necessary
charges/sanctions.

12. Collections and deposits at the POEA Regional Extension Units and Satellite
Offices in the amount of P3,265,179.00 have not been recorded in the books as of
December 31, 2013 due to late submission of Reports of Collections and Deposits
resulting in the understatement of income by the same amount. Moreover,
Accountable Officers from 15 Philippine Overseas Labor Offices (POLOs) have
similarly failed to submit their reports and remittances for an undetermined
amount of collections made. (Paragraphs 115-127)

We recommended that the Agency Head – (i) require the Chief Accountant
and other officials performing accounting and/or bookkeeping functions of
the agency to ensure that the financial reports required to be submitted by
the accountable officers are forwarded to the Accounting Unit on the

viii
 prescribed period and financial information be recorded in the books
promptly to avoid the repetition of the deficiencies noted in audit; and
(ii) direct the Chief of the ROCO to closely monitor submission of monthly
Reports of Collections and Deposits/Remittances from the Regional Centers
and Satellite/Extension Units and coordinate immediately with the concerned
Accountable Officers of the fifteen identified POLOs to remit immediately all
collections to the account of POEA and submit the collection reports together
with the supporting documents right after the deposit of collections to avoid
delay in the submission of such to the Accounting Office.

13. Non-recording of audit disallowance of P797,500.00 with Notice of Finality of

Decision (NFD) and COA Order of Adjudication (COE) as receivable was
contrary to Section 22.6 of COA Circular No. 2009-006 and Section 53 of the
Manual on the New Government Accounting System, Volume I resulting in the
understatement of the Receivables-Disallowances/Charges and understatement of
the Prior Years’ Adjustment account by the same amount. (Paragraphs 142-148)

We recommended that the Chief Accountant record the audit disallowance

with Notices of Finality of Decision in the books of accounts pursuant to
Section 22.6 of COA Circular No. 2009-006 and Section 53 of the MNGAS,
Volume I so that the financial statements will be fairly presented.

14. The unreconciled discrepancy of P1,889,757.78 between the records of the POEA
and of the Procurement Service rendered unreliable the Due from NGAs (DBM-
PS) account balance of P7,043,470.46. (Paragraphs 149-156)

We recommended that: (i) the Supply Officer and the Accountant exert
effort in reconciling their records with that of the Procurement Service
covering prior years’ transactions; and (ii) henceforth, undertake periodic
reconciliation to immediately identify and settle reconciling transactions.

15. Out of the balance of P12,713,119.22 in Accounts Receivable in the Agency’s

National Government (NG) books, P10,757,967.91 or 85% have been dormant
from over 3 to 30 years, making collection almost nil due to management failure
to intensify efforts toward settlement thereof. Hence, the government had been
denied of additional funds to finance its priority projects. (Paragraphs 157-164)

We recommended that the Head of the Agency direct the Chief Accountant
and other responsible officials to: (i) resort to legal means to enforce
collection of long overdue accounts or coordinate with foreign offices like
embassies and POLOs; and (ii) send follow-up letters on the status of the
request for write-off of the dormant receivable accounts submitted to COA.

16. Uncollected rental fees from seven concessionaires at the end of the year
amounted to P857,563.70 which is contrary to Section 120 of the General

ix
 Accounting and Auditing Manual, Volume I, denying the government use of
added funds to finance priority programs/projects. (Paragraphs 165-171)

We recommended that the Head of the Agency – (i) direct the Accountant to
follow-up demand letters to the delinquent tenant/s to settle their accounts
with the agency and (ii) to strictly monitor billings issued and demand letters
sent and if possible, institute appropriate sanctions against delinquent
tenants such as non-renewal of lease contract.

17. The accuracy of the reported balances of inventory accounts totaling

P2,520,646.83 could not be ascertained due to the discrepancy of P801,760.32
between the physical count and book balances of inventory accounts as well as
other lapses noted over inventory management. (Paragraphs 177-186)

We recommended that the Head of the Agency direct - (i) the Accountant
and the Supply Officer to update and reconcile their records and make
necessary adjustments on the discrepancies noted to reflect the correct
balances of their inventory account in the financial statements; (ii) the
Accountant to record on a monthly basis the value of inventories issued
based on the submitted Report of Supplies and Materials Issued; (iii) to take
up the cost of medicines as well as oil, lubricants and similar items for stocks,
under appropriate inventory accounts until issuance of the items to end-
users; and (iv) update postings to supplies ledger cards and stock cards.

18. The existence and accuracy of the Property, Plant and Equipment (PPE) account
balances in the aggregate amount of P381,493,833.98 could not be reliably
established due to the absence of inventory report on two property accounts
valued at P8,346,096.06, a net discrepancy of P146,666,245.73 between the book
balance and physical count of PPE accounts with inventory reports, as well as
other lapses noted over property management. (Paragraphs 187-199)

We recommended that the Head of the Agency direct – (i) the Inventory
Committee to complete the physical stock-taking and inventory reporting on
all PPE units of the Agency; (ii) the Accountant and the Property Officer
exert efforts for the immediate reconciliation of their respective records to
determine the causes of the noted discrepancies in the balances of the PPE
accounts so that the necessary adjustments could be effected; and henceforth,
conduct periodic reconciliation of their records to detect any errors and/or
discrepancies in the PPE balances and the causes thereof for
correction; (iii) the GSPD to submit a complete inventory list of fabricated
cabinets/shelves with proper costing to the Accounting Division for recording
in the books of accounts, assign Property Numbers and prepare/issue
Acknowledgment Receipt of Equipment (ARE) to end-users; and (iv)both the
Accountant and the Property Officer to record all properties of the agency
and ensure correct balances thereof.

x
19. Donations of various items listed in the Agency’s Report on the Physical Count of
PPE, valued at P2,003,527.00 have not been recorded in the books of accounts
contrary to Section 7 of the General Provisions of RA 10352, and the Budgetary
Act of each year, rendering both the asset accounts and income from grants and
donation both understated by the same amount. Conversely, recorded donations of
various properties worth P1,242,330.00 were not listed in the inventory report.
Moreover, the Agency had not todate prepared and submitted a quarterly report of
all donations received, whether in cash or in kind, as required under the same law.
(Paragraphs 200-209)

We recommended that the Property Officer: (a) furnish the Accountant with
copies of all documents covering the donations; and (b) obtain value of all
donated items using the price lists of suppliers of similar items as references.

We also recommended that the Accountant: (a) after receipt of the donation
documents, record the cost/value of the donated items in the books of
accounts; and (b) submit quarterly report on donations received to the
appropriate government agencies as required by law.

20. Dormant balances of assets and liability accounts in the total amount of
P10,322,439.33 remain unadjusted in the books of accounts for five to 30 years
now, due to the absence of records and supporting documents, contrary to the
provisions of COA Circular No. 97-001 dated February 5, 1997 and which may
have effect on the fair presentation of the financial statements. (Paragraphs 228-
236)

We recommended that the Agency Head – (i) direct the Chief Accountant
and staff to review, analyze and adjust these dormant accounts, together with
other related accounts in the trial balance for those duly supported with
documents; (ii) exert effort to locate pertinent records/schedules and
supporting documents to verify the nature/purpose of the recorded
transactions and determine the existence and validity of the dormant
accounts’ balances. If the effort proves futile, request from COA Central
Office through the COA Audit Team for the write-off and/or adjustment of
account balances, supported by a list of available records and extent of
validation made on the accounts as well as certification on the reasons for the
absence or failure to locate pertinent books of accounts/records, financial
statements/schedules and supporting vouchers/documents; and (iii) institute
appropriate sanctions against officials responsible for the non-remittance of
taxes withheld and/or trace records if the dormant balances constitute items
for adjustment.

21. Purchases of common-use supplies worth P190,171.58 thru shopping instead of

thru the Procurement Service was contrary to Administrative Order (AO) No. 17
dated July 28, 2011. Similarly, procurement of common-use supplies and
equipment in the total amount of P1,811,511.22 that were not listed in the

xi
 approved Annual Procurement Plan for CY 2013 was contrary to R.A. 9184, that
defeated the essence of the procurement law which is transparency and
competitiveness. (Paragraphs 237-249)

We recommended that the Head of Agency direct that: (i) the purchase of its
requirements for common-use supplies and equipment through the PS to
protect the interest of the government and achieve the objectives of AO No.
17 and DBM Circular Letter No. 2011-6; and (ii) all procurement be
meticulously and judiciously planned within the approved budget of the
Agency and be listed on its approved Annual Procurement Program.

The foregoing audit observations and recommendations were communicated

through Audit Observation Memoranda (AOM) and discussed in an exit conference with
concerned POEA officials and employees on August 12, 2014. Their comments were
incorporated in this Annual Audit Report, where appropriate.

G. STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT

RECOMMENDATIONS

The status of implementation by the management of audit recommendations

contained in prior year’s audit report is summarized as follows:

Status of Implementation Number Percentage

Fully Implemented 7 27
Partially Implemented 9 35
Not Implemented 10 38
Total 26 100

xii