-Ilepublic of the Philippines COMMISSION ON AUDIT Office of the Ombudsman Agham Road, Diliman, Quezon City' II OFFICE OF THE AUDITOR INDEPENDENT AUDITOR'S REPORT , September 8, 2017 HonorableCONCIDTA II CARPIO MORALES Omb~dsman' ' " Offic~ of the O~~udsman Aghab Road, Dillman II C.Ity I Quezon ,. , I ; Dear Ombudsman Morales: We IEve audited the accompanying financial statements of the En4ancing the Asset Decl ation System Project amounting to US $230,000.00 oJ! the Office of the Omb dsmtin, finaJ1.cedunder the International Development FUhd (IDF) Grant No. IF 0r450~, which comprise the statement of financial position ks of December 31 lated statements of financial position, P, 2016 the re,' erformance an'd cash flows for th~ year then ended,; and a summary of significant accounting ~ policies and other eXPIratOry information. ' , . I Mali, geme'nt 's Responsibility for the Financial Stqtements ,Man state If I. gem~nt ISresp?nSI : I or th' 'bl e fi . ,e preparatIOnan d ,au Co • .1 0f th ese fi presentatIOn . I lllanCla entsin accordance with Philippine Public Sector Accountidg Standards, and for such prep due I fraUld j tinteJ11lalcontrol as management determines is necessary to enable the ration of fin~n9ial statemellts that are free from material misstatement, whether or erT' Audi or's Responsibility i ! I Ou~ 'espJsibility'iS to express an ~pinion on these financial state~ents based on our audi. We:conducted our audit in accordance with Philippine Public Sector Standards on uditing. Those standards require that we comply with ethibal requirements and plan and perform the audit to obtain reasonable assurance that thd financial statements are I ee frJm material misstatement. ! 1,1 ! i i An a dit involves performing procedures to obtain audit evidence about the amounts and dIsclosures in the financial statements, The procedureS selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the fibancial statements, whether due to fraud or error. In makIDg those risk asses~ment~,the auditor considers intemal control relevant to the ~ntity's preparation and fJir presentation of the financial statements in order to design audit procedures that e appropriate in the circumstances, but not for the purpose of expressing an opini ~ on the effecti~eness of the entity:s inte~n~1control. An laudit also includes evalu tmg the appropnateness of accountmg poliCies used and the reasonableness of acco. ting estimates made by management, as well as eva bating the overall pres~ tatiori of the financial statements, .: J We v I' 1 leve th at thid' ence we have 0b'tame d' IS suffi' 'd.. e au It eVI lClen and appropnate provide a b .sis for bJr audit opinion, . ' I I to I I .. 1 I: . I. Unqu lifleq Opinion I • In 0 opUllon, the financial statements referred to above, P, esent fairly in all mater,al respects, the ..financial po~itiQn of the Enha.ncing..the Asset Declaration. System Project of the Office of the Ombudsman as of December 31, 2016, and its finandial performance and cash flows for the year then ended in accordance with Phili~pine E'ublicSector Accounting Standards, .. 1 OFFICE OF THE OMBUDSMAN 0 Pre-Closing Trial Balance ' IDF Grant for Enhancing the Asset Declaration System P~oject As of December 31,2016 ' I A~count Title Account Code Debit Credit Cash in Bank - Local Gurrenc~, Current Account 10102020 0,00 Cash in Bank - Foreig~ Currehcy, Savings Account 10103030 0,00 Due to BIR Trust Liabilities I~ ' I 20201010 20401010 0,00 0,00 Accumulated Surplus/ eficiO 30101010 0,00 Gain on Foreign Exch ge (FOREX) 40501010 0,00 Loss on Foreign Excha ge (FOREX) 50504010 0.00 TOTAL 0.00 0.00 Certifi1: Correct: .8J ADO~ T. CORN ITO Chief Accountant COMi\rIS ION ON AUDIT OFFICi". 0F THB 0Mll!.!DSMAN JUlL 1 4 2017 :ECE!VW ,IME. - .. il+:~ ----I~---.- '~'\ .. () , ,,-, " '" (--.J OFFICE OF THE OMBUDSMAN P,!st-Closing Trial Balance IDF Grant for Enbancing tbe Asset Declaration System P.roject As of Oecembe. 31,2016 I I Account Titl~ Account Code Debit Credit I I Cash in Bank - Local urrency, Current Account 10102020 0.00 Cash in Bank - Forei Currehcy, Savings Account 10103030 0.00 Other Receivables I 10305990 0.00 Due to BIR I 20201010 0.00 Trust Liabilities I 20401010 0.00 Other Payables I 29999990 0.00 Accumulated Surplus/ Deficit), I 30101010 0.00 I TOTAL 0.00 0.00 Certifit Correct: ~ ADOJ& T, CORNITO Chief Accountant ()l~~ ._{~"{.ic~)l'r (;IDr'if:t\/f:N:i~8'j(),!',;r OFFI(T (;:)"j' -f;Y!1;!: :nSMilN C:.;~/"~~.~ JUL 142m? . 0 OFFICE OF THE OMBUDSMAN Comparative Statement of Financial Position , IDF Grant ror Enhancing the Asset Declaration Systkm Project As of December 31, 2016 ASSETS Current Assets Cash and Cash Equi alents Cash in Bank.- La al Currency I Cash in Bank) ocal Currency, C~rrent Account Cash in Bank - Foreigncolency I: Cash in Bank1 oreign ICurrency, Savings Account . I I Receivables .Other Receivable$ Other Receiv~ les Total Current Asset~ TOTAL ASSETS LIABILITIES AND EQUITY LIABILITIES Curren't Liabilities Financial- Liabiliti Payables 0.00 3.770,254.83 Trust Liabilitfe 0.00 2,255,868.63 Other PaYabld 0.00 1,514,386.20 Tot.1 Liabilities 0.00 3,770,254.83 NET ASSETS/EQUITY' Equity 0.00 20,078.95 J AccumulatedSurp usl(Deficit) 0.00 20,078.95 Tot.1 Net AssetslEqu.ly I 0.00 20,078.95 TOTAL L1A: ILlTlES AND EQUITY J 0.00 3,790,333.78 JUL 111 2017 r'ECEIVEl' ilY: ~_ ,.1 ••. .~ - _. llME:,_ .. ~_ .. r;) ~-" OFFICE OF THE OMBUDSMAN o .li o..••. .~ ~flDs. ..'11:.~ '111 *. '. .!' Comparative Statement of Financial Performance I, I~F Grant for ~nhancing , . the Asset Declaration As of December 31,2016 I System Project 2016 -,- Revenue 0.00 0.00 Total Revenue 0.00 0.00 Less: Current Operati" Expenses 0.00 0.00 Total Current 0". rating Expense~ 0.00 0.00 Surplus (Deficit) from urrent Operations 0.00 0.00 Net Financial Assistan /SUbSi.dY 0.00 0.00 Sale of Assets J Gain on Foreign Exch ge (FOREX) '1 I Loss on Foreign ExchaJIge (FOREX) 0.00 0.00 0.00 0.00 39,108.95 (12,020.00) Surplus (Deficit) for it peri~d 0.00 27,088.95 i;,;4~:i[tD'i ("n-,I!,,';.~-;~:::-'~ 4iTf}r:t Ol~~ ~}F:t~ii:' ';:~_:~::-'K\~',ii: t~~~~HJOGMA.r i J~~~ () OFFICE OF THE OMBUDSMAN .. ~.~..rs o ' . ..4..,."'"1--1. , , , , Comparative Statement of Changes in Net AssetslEqnity I IDF Grant for Enhancing the Asset Declaration S~stem Project As of December 31, 2016 I ~ ~ Balance at Jannary 20,078.95 0.00 Changes in accounting policy , 0.00 0.00 Prior Period Adjuslments/lJnrecor&d Income and Expenses 0.00 0.00 Other Adjustments I (20,078.95) 0.00 Restated balance I 0.00 0.00 Cbanges in Net Asse IEqUi~ for the Falendar Vear Ad;ustmentof net. evenudrecognized directly in net assets/equity 0.00 0.00 Su~lus for th~ period I I I' . 0.00 20,078.95 Total recogmzed ~evenue and expense for the perIOd 0.00 20,078.95 , ! Others 0.00 0.00 Bal.nce.t December 1 0.00 20,078.95 o I i:;,Gri:i:7'~+'1!')(",'l'O:N O':j.iCi Alj-tJ1l~~_~ Republic of the Philippines I OFF.iCt~ t:-~,,: "rl~.;'W:~''I;l'.o\'!:~f!nSMAPJ OFFICE OF THE OMBUDSMAN CENTRAL OFFICE JUL 1 4 2017 Comparative Statement of Cash Flows ~ lDF Grant For Enhancing The Asset Declaration System projectr~.cCE IVEn BY:_ .. __" For the Calendar Year Ended 2015 & 2016 Tl'ME' ,. , , - J f) t ------,...-... .,' 2016 2015 CASH FLOWS FR( M OPERA liNG ACTIVITIES Cash In!.lows . iI U 'I Trust ReC8iP j 2,670,559.00 COllectionlJf other trust receipts Other ReceiP~ Other mis' I lIaneous receipts ' Icash advances I 5,643,433.84 257.70 21,961.71 Receipt ofI refund Q 154.74 J\djU~tments' I I Resloratio of cash for eancelledllostlstale checks/ADA 239,872.64 Total Cash In!lo,,! I I I 2,692,520.71 Cash Outflows I ! Payment of E penses! (1,846,499.84) Payment 0 Maintenance and Other Operating Expenses (5,246,632.33) Grant of Cashl Advances (20,000.00) Grant of CAsh Advances Purchase of I~ventories Purchase 'df invent~ries I for consumption (43,696.00) Remittance Qf Mandatory Oeduc~lons (312,497.88) l Remittance of Taxes Withheld not covered by TRA (509,589.99) Payment froJ , Trust Liabilities/Fund . Transfers Refund of xcess Fund Transfersrrrust Fund (55,471.39) Adjustments (2,645,510.00) Other Adju tment - ,outflow (2.645,510.00) Total Cash Ou"lo s (5,855,389.71 (4,824,507.72) . I Cash Provided by Used in) Operating Activities 28,329.21 (2,131,987.01) I I. CASH FLOWS FRC M INVESTING ACTIVITIES t Cash Inflows II I . I Purchase/Construction of PropertY, Plant and Equipment (921,433.39) Purchase Idf furnitu~e, fixtures and books (225.250.00) Purchase Idf machirlery and equip'ment (696.183.39) I Total Cash Outfl61 s I I I (921,433.39 Cash Provided by Used i~) Investi~9 IActivities (921,433.391 I ' 1 Cash provided by Used in) Financing Activities , . I' Total Cash provid d by Operating, investing and Financing Activities -i (893,104.18) (2,131,987.01) I Effects of Exchan e Rille Changes' on Cash and Cash Equivalents (44,796.04\ 9,446.93 : . I Add: Cash and C~sh EqJivalents, Beginning January 1 937,900.22l 3,060,440.30 __ ~II : Cash and Cash Equivalents. Ending December 31 I 0.00; I 937,900.22 CUSTOD"" FUNDS. TRU? I RECEIPT' I I 'NTER'AGrT TRANSFERRED.FUND (IATF)