FINANCIAL CONCERNS2nd Management Conference, S201522-24 June 2015NNC Board Room

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OUTLINE

2015 Budget Utilization

2015 Cash Disbursements

2015 Regional Funds Utilization

Prior Years’ Unliquidated Fund Transfers

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1ST SEMESTER 2015FINANCIAL PERFORMANCE REVIEW

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2015 BUDGET UTILIZATION, BY CLASS(PHP’000)

FY 2015 Budget

as of 15 June

Actual % Balance

PS 52,228 26,215 50.2 26,013

MOOE 273,094 115,145 42.2 157,949

Total 325,322 141,360 43.5 183,962

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COMPARISON,2014-15 BUDGET UTILIZATIONAS OF 15 JUNE

2014 = 29.9% 2015 = 43.5% - 10 20 30 40 50 60

48.4% 50.2%

27.0%

42.2%

PS MOOE

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2015 BUDGET UTILIZATION, GASS(PHP’000)

FY 2015 Budget(MOOE)

as of 15 June

Actual % Balance

General Management and Supervision 11,501 4,586 39.9 6,915

Human Resource Development 1,680 561 33.4 1,119

Total 13,181 5,147 39.0 8,034

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2015 BUDGET UTILIZATION, BY MFO(PHP’000)

FY 2015 Budget(MOOE)

as of 15 June

Actual % Balance

MFO 1 - Nutrition Mngt Policy Services 24,708 1,124 4.5 23,584

MFO 2 - Technical Support Services 235,205 108,874 46.3 126,331

Total259,91

3109,99

8 42.3149,91

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High obligation was recorded in May, Php41.5M Buntis Congress, Php10M TV plugs airing of NGF, Php19.9M Pabasa Kit with Nutri-Guide, Php3M Fund transfers to ROs, Php8.6M

Jan Feb Mar Apr May Jun 15

1.57.4

13.2

23

40.4 42.2

17.4% Oblig...

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as of 15 June 2015

Public Bidding

Fund Transfer

Other MOOE

0

10

20

30

40

50

60

36%

53%

11%

BREAKDOWN OF OBLIGATIONS, MOOE

41,690,07560,834,50812,620,553115,145,1

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2015 CASH UTILIZATION, 1ST QUARTER(PHP’000)

Month NCAas of 31 March

Disbursed

% Balance

Jan 14,740 14,449 98 292

Feb 24,785 25,031 101 -246

Mar 36,192 36,237 100 -45

Total 75,717 75,716 100 1

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2015 CASH UTILIZATION, 2ND QUARTER(PHP’000)

Month NCAas of 15 June

Disbursed

% Balance

Apr 47,231 46,992 99 239

May 33,692 33,928 101 -236

Jun 29,598 17,884 60 11,714

Total 110,521 98,804 89 11,717

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Amount %

Funds Released60,641,95

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Disbursements19,472,33

732.1

Refunds 11,588 .02

Balance41,158,02

967.9

2015 REGIONAL FUNDS UTILIZATION

as of 15 June12

2015 REGIONAL FUNDS UTILIZATION

ICAR II III

NCRIV

-AIV

-B V VI VII

VIII IX X XI XI

I

CARAG

A

ARMM

24 35

13 28 30

17

54

23

55 42

53

20

69

35 42 47 40

% Spent

as of 15 June13

COA AUDIT FINDING –PRIOR YEARS’ UNLIQUIDATED FUND TRANSFERS

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COA audit findings -

Refers to funds released to the regional offices’ bank accounts

Liquidation remain unrecorded at the end of the year

Overstatement of Cash-in-Bank, Local Currency, Current Account (CIB-LCCA)

Prior Year’s Unliquidated Fund Transfers

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Requirements -

Funds must be fully utilized and liquidated within the year of released

Full utilization means full disbursement or withdrawal of funds from bank accounts

Full liquidation means recording and reporting of funds utilization through liquidation reports

Refund of unused funds to the National Treasury

Prior Year’s Unliquidated Fund Transfers

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Requirements -

NNC Memorandum 2014-001, Section 5.6 Reporting of Funds Utilization and Submission of Liquidation Reports

Report of Checks Issued (RCI)

Cash-in-Bank Registers (CBR)

Paid disbursement vouchers and supporting documents

Prior Year’s Unliquidated Fund Transfers

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Requirements -

NNC Memorandum 2014-001, Section 5.6.4

Regional Offices, in which post-audit was conducted by Regional Auditors, shall submit to FMD original copy of audited RCI and CBR with Credit Notice (CN) issued by the respective Regional Auditors

applies to all regions except NCR and Reg XI

Prior Year’s Unliquidated Fund Transfers

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Requirements -

Liquidation reports duly acknowledged and received by COA Regional Offices shall be accepted as basis for recording liquidation in the books

Prior Year’s Unliquidated Fund Transfers

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Addressing the issue -

Continued efforts to validate liquidation entries in the books

Fast track review of liquidation reports and documents

Issue demand or follow-up memo to regions on the submission and completion of liquidation reports and documents

Prior Year’s Unliquidated Fund Transfers

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Status Action LinesPhp96M (25%)

Liquidation reports –1. With Credit Notice

issued by COA Regional Auditors

2. Duly verified and post-audited by COA Regional Auditors

3. Duly acknowledged and received by COA Regional Auditors

1. FMD to record liquidation in the books

2. FMD to fast track review and preparation of the Summary of Expenses as basis for issuance of Journal Entry Vouchers (JEVs)

Php383 million unliquidated funds as of Dec 2014

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Status Action LinesPhp130M (34%)

1. Advanced copy of liquidation reports submitted to FMD; with no stamped received by COA Regional Office

2. Need submission of liquidation reports and documents

1. FMD to issue demand/follow-up memo to Regions requiring submission of liquidation reports and documents

2. Regional Offices to submit liquidation reports and documents to COA Regional Offices

Php383 million unliquidated funds as of Dec 2014

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Status Action Lines

Php157M (41%)

Subject to further validation of FMD records

FMD to trace and validate records

Php383 million unliquidated funds as of Dec 2014

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Php383 million unliquidated funds as of Dec 2014

Effective 01 July 2015 -

FMD will no longer process release of funds without the liquidation reports duly received by COA Regional Office attached to the request

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Thank You!

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