1. F INANCIAL C ONCERNS 2 nd Management Conference, S2015 22-24 June 2015 NNC Board Room 1

2. O UTLINE  2015 Budget Utilization  2015 Cash Disbursements  2015 Regional Funds Utilization  Prior Years’ Unliquidated Fund Transfers 2

3. 1 ST S EMESTER 2015 F INANCIAL P ERFORMANCE R EVIEW 3

4. 2015 B UDGET U TILIZATION, BY CLASS ( PHP ’ 000 ) FY 2015 Budget as of 15 June Actual%Balance PS52,22826,21550.226,013 MOOE273,094115,14542.2157,949 Total325,322141,36043.5183,962 4

5. C OMPARISON,2014-15 B UDGET U TILIZATION AS OF 15 J UNE 5

6. 2015 B UDGET U TILIZATION, GASS ( PHP ’ 000 ) FY 2015 Budget (MOOE) as of 15 June Actual%Balance General Management and Supervision 11,5014,58639.96,915 Human Resource Development1,68056133.41,119 Total13,1815,14739.08,034 6

7. 2015 B UDGET U TILIZATION, BY MFO ( PHP ’ 000 ) FY 2015 Budget (MOOE) as of 15 June Actual%Balance MFO 1 - Nutrition Mngt Policy Services 24,7081,1244.523,584 MFO 2 - Technical Support Services235,205108,87446.3126,331 Total259,913109,99842.3149,915 7

8. 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 8

9. as of 15 June 2015 B REAKDOWN OF O BLIGATIONS, MOOE 41,690,075 60,834,508 12,620,553 115,145,136 9

10. 2015 C ASH U TILIZATION, 1 ST Q UARTER ( PHP ’ 000 ) MonthNCA as of 31 March Disbursed%Balance Jan14,74014,44998292 Feb24,78525,031101-246 Mar36,19236,237100-45 Total75,71775,7161001 10

11. 2015 C ASH U TILIZATION, 2 ND Q UARTER ( PHP ’ 000 ) MonthNCA as of 15 June Disbursed%Balance Apr47,23146,99299239 May33,69233,928101-236 Jun29,59817,8846011,714 Total110,52198,8048911,717 11

12. Amount% Funds Released60,641,954 Disbursements19,472,33732.1 Refunds11,588.02 Balance41,158,02967.9 2015 R EGIONAL F UNDS U TILIZATION as of 15 June 12

13. 2015 R EGIONAL F UNDS U TILIZATION % Spent as of 15 June 13

14. COA A UDIT F INDING – P RIOR Y EARS ’ U NLIQUIDATED F UND T RANSFERS 14

15. 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 15

16. 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 16

17. 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 17

18. 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 18

19. 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 19

20. 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 20

21. StatusAction Lines Php96M (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 21

22. StatusAction Lines Php130M (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 22

23. StatusAction Lines Php157M (41%) Subject to further validation of FMD records FMD to trace and validate records Php383 million unliquidated funds as of Dec 2014 23

24. 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 24

25. Thank You! 25