UNIVERSITY OF CEBU – BANILAD

SUMMARY OF OBSERVATIONS AND

RECOMMENDATIONS
System Notes and Walkthrough and Substantiation Findings
Revenue Cycle

Copy for:

Student Affairs Office/Scholarship Office

 UNIVERSITY OF CEBU BANILAD
SUMMARY OF OBSERVATIONS AND RECOMMENDATIONS
System Notes and Walkthrough and Substantiation Findings
Revenue Cycle

We have conducted our system notes and walkthrough and audit substantiation of documents from
February 5 to March 15 covering Revenue Cycle. The following are our observations and
recommendations thereof:

Documentation of ranking of scholarship qualifiers

Department(s) Concerned: Scholarship Office, Guidance

Observation: (D.01D Gap 1,3)

(For peer facilitators, SAO volunteers, UCCP, CM, the thumb)
We noted that majority of the scholars undergo performance appraisal examinations and assessment to
determine whether they are qualified for the scholarship grants offered by the University. However,
review of the results show that the departments do not summarize and rank the results of the evaluation.
Since a department is given a cap on the discounts to extend, the departments are selecting qualifying
scholars and their respective discounts based on judgment. As a result, we observed that there were
scholars with discounts up to 100%, while others as low as 10%.

Recommendation:

We believe that objectively ranking the candidates according to their performance rating and allocating
their benefits based on the cap would reduce the likelihood of bias towards granted discounts. To give
fair treatment to other scholars, we also recommend that the discount rates granted be ranked according
to the monetary amount of qualifier’s tuition fee since all of the scholars will render equal amount of
service hours to the University.

Auditee’s Response:
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Scholarship grant process flow

Department(s) Concerned: Scholarship Office, Guidance

Observation: (D.01D Gap10; refer to finding: Completeness of documentation of postings)

Accomplishment of Renewal forms

Department(s) Concerned: Scholarship Office

Observation: (D.01EDGap 11)

We noted that the Scholarship Office does not comply with its manual on the renewal of scholarships.
Students who still met with the qualifications for scholarships are automatically renewed upon submission
of required documents such as study loads and grade sheets.

Recommendation:
We recommend to comply with standard policies and procedures. This procedure is created to ensure
that the student grantee consents to the terms and conditions of the scholarship grant applicable to the
current semester (term).

Auditee’s Response:
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Policy on retention of scholarship benefits

Department(s) Concerned: Scholarship Office

Observation: (D.01D Gap 5)

Inquiry with the scholarship director noted that in cases where different scholarship grant was provided
to a renewing scholar (e.g. In 2016-2017, discounts and privileges were higher), same bracket are given
to such student, until the expiry or termination of the scholarship. However, there were no approved
policies/ memorandum presented to us showing that such benefits shall be retained by the student
grantee.

The practice of retention of benefits granted as explained by the concerned office is under the premise
that benefits should coincide with the fee matrix policy of the University stating that there shall no tuition
fee increases until the student graduates (T&C applies). Moreover, in terms of tuition discounts and
benefits verification, the differences of discounts rates and other privileges for scholars of different
batches lead to difficulties and inefficiencies because the verifiers must look into multiple areas such as
batch numbers, grade qualifications, batch privileges, and other factors. Moreover, the practice may lead
to confusion and conflicts between scholars due to differences in benefits/privilege while maintaining
higher grades (current scholarships maintains higher grades with less benefits).

Recommendation:

To protect the interest of the officers assuming an office, we recommend that its practices, especially
which involve cash flows, be supported with an approved memorandum/policy to ensure that the
departments actions are authorized.

For efficiency, transparency and fairness/equality, we recommend that all scholars be granted with
privileges in accordance with the current scholarship grants. The benefits of consistency of privileges
follows:

a. Risks of erroneous applications of discounts will be minimized and monitoring of discounts will
not be a tedious task since the Scholarship office will only need to retain current policies and
discard repealed ones.
b. Fairness in discounts granted to students who shall maintain the same grade qualifications as
others.
c. Variations in projection of cash outflows due to the differences in the provision of allowances to
scholars.
d. Ease in verification discount application (check whether discounts applied are correct or not)
because grades, benefits, privileges are uniformly applied based on the qualifications regardless
of the batch year of the grantees
Since the discounts and benefits are just privileges and not by itself a right, we believe that discount
policies cannot be applied based on the premise of the tuition fee policy (as no tuition fee policy, is
already a benefit by itself).

Auditee’s Response:
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Discounts process flow manual

Department(s) Concerned: Scholarship Office

Observation: (D.01D Gap 3,8,10)

We noted that there were no guidelines or process flow for setting discounts rate policies and granting of
discounts. Inspection of discounts granted to various types of scholarships noted that there were
inconsistencies in the process of review and approval of grants. To illustrate, academic scholarships,
presidential, SAO volunteers, CM, UCCP are initiated in the scholarship office and directly sent to AWG for
approval, while for dean’s list, and various other types of scholarships, passes through the approval of
IMS head and VC-audi, prior to AWG approval.

Recommendation:

We recommend that the various committees involved with the scholarship grants draft a standard
policies and procedures manual to define the process and authority of the respective departments in the
approval of discounts. This is to promote consistency and efficiency in the processing of discounts. The
policy shall also serve as a reference in cases of conflicts in approval authority. The policy can also be
used as guidelines in case of staff turnovers/leaves.

Auditee’s Response:
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Comparability of discount grants by departments

Department(s) Concerned: Accounting, Scholarship

Comparison of scholarship discounts as posted by accounting and grantees as submitted by SAO noted
41 scholars (handled by SAO) where applied discounts differ. Details of the variance follow:

25 scholars with overapplied discount estimated loss (auditee): 289,551.00

16 scholars with underapplied discount estimated loss (student): 78,419.38

Statistics of the variances follow:

SCHOLARSHIP TYPE PER SAO PER POSTED (ACCTG) OCCURRENCE IMPLICATION
ACADEMIC SCHOLAR 100% 50% 7 UNDERAPPLIE
ACADEMIC SCHOLAR 50% 100% 7 OVERAPPLIED
Dean's List 75% 50% 7 UNDERAPPLIE
Dean's List Full Free 50% 1 UNDERAPPLIE
 Dean's List Full Free 100% 1 UNDERAPPLIE
PRESIDENTIAL SCHOLARS Full Tuition FULL FREE 10 OVERAPPLIED
SCIENCE HIGH Full Tuition FULL FREE 8 OVERAPPLIED
41

COUNT UNDER 16
COUNT OVER 25

Based on review of policy on Presidential scholarships (section IV), presidential scholars are granted full
free (SAO noncompliance).

Based on review on policy of Science high scholarship (5th grant detail), entry of Science High graduates
can avail of 100% tuition fee (Accounting noncompliance).

Moreover, we noted 10 posted discounts by accounting totaling P313,998 whom were not traced in
scholarship list per SAO report. Details follow:
Course
ID # Name Year Assessment Discount detail Grant Discount amount
1742937 FULL
1 ARCILLA, CHERRYVELLE BSMT 1 46,625.00 PRES FREE 46,625.00
1743212 FULL
0 CANTIVEROS, MARY BETH BSMT 1 46,625.00 PRES FREE 46,625.00
1743479
3 DACUYA, KRIZIA BSMT 1 46,625.00 HACA 50% 15,908.00
1743404 FULL
2 DE LARA, SACHI XANDRIA BSMT 1 46,625.00 PRES FREE 46,625.00
1845105
2 DELA PEÑA, MICAH DENISE BSCPE 1 26,740.00 PRES 50% 9,870.00
1846654
3 LAURON, JOHN CARL BSMT 1 46,625.00 HACA 100% 31,816.00
1845463
2 MARTINEZ, CRISTEL JANE BSN 1 37,979.00 HACA 50% 15,520.00
1742995 FULL
0 MOSQUITE, PIA LYN BSMT 1 46,625.00 PRES FREE 46,625.00
1529652
1 RELOS, HAZEL BSED 3 19,065.00 CCSM 53% 7,759.20
1846267 FULL
2 SUCANO, LHORENCE BSMT 1 35,549.00 PRES FREE 46,625.00
399,083.00 313,998.20

We also noted 16 scholars in the SAO list, who were not traced in the ledger postings as follows:

ID # Name Discount detail Grant Remarks

1638669
9 Marco Gerald The Thumb 27% Not in ledger
1742964 ACADEMIC
3 Durano, Ree Gee Char P. SCHOLAR 50% -38909.8 cr adj.
1743407 ACADEMIC
2 Elic, Christine Faith T. SCHOLAR 100% Not in ledger
1743263 ACADEMIC
2 Datoy, Jilcres C. SCHOLAR 100% Not in ledger
1743216 ACADEMIC
9 Rabanes, Eloisa Mae A. SCHOLAR 100% Not in ledger
1844698 ACADEMIC
2 Barrios, Nathalle Nicole SCHOLAR 50% -17499 cr adj.
1742924 ACADEMIC
7 Dable, Casey Gwyn SCHOLAR 100% Not in ledger
1844169 ACADEMIC
1 Garcia, Ana Jean SCHOLAR 50% Not in ledger
 1844449 ACADEMIC
6 Cortes, Ana Marie SCHOLAR 100% Not in ledger
1844230 ACADEMIC
1 Mahinay, Chyra SCHOLAR 50% Not in ledger
1844366 ACADEMIC
3 Rivera, Princess SCHOLAR 50% Not in ledger
1845463 ACADEMIC
1 Martinez, Cristel Jane SCHOLAR 50% Not in ledger
1844572 ACADEMIC
4 Ponsica, Jylen Christe SCHOLAR 100% Not in ledger
1844739 ACADEMIC
6 Gomez, Maryjoy SCHOLAR 50% -21715 cr adj.
1846109 ACADEMIC
5 Loquire, Sharlyn Faith SCHOLAR 100% Not in ledger
1743419
4 Bagnol, Jeryll Glide D. SCIENCE HIGH Full Tuition Not in ledger

Recommendation:

We believe that an effective control to minimize occurrence of variances is to involve the scholarship
office in the application of discounts in the student ledger. We recommend that the scholarship office key
in the discounts (parked) in the CAS, subject to approval of the accounting department. This practice will
ensure that all of the parked transactions by the scholarship office is duly reviewed by the accounting
department upon forwarding of the approved scholarship list by the SAO to accounting department. After
confirmation of the discounts by the accounting department, accounting head shall post the parked
transactions and acknowledge the scholarship list. This approach shall benefit the University as follows:

a. minimize occurrence of variances from reports since the parked entries of the scholarship office
is verified by the accounting office thru its forwarded document
b. minimize the workload of accounting department because posting is done by SAO
c. SAO can monitor all of the approved (posted) discounts of its scholars and may use data for
reporting purposes without asking a copy from accounting dept.
d. Reduce likelihood of losses incurred by University from overapplication of discount
e. Reduce likelihood of underposting of discounts granted to students.

Auditee’s Response:
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Departmental authority over Scholarship Grants

Department(s) Concerned: Accounting, Guidance, Scholarship

We noted that the out of 35 scholarship programs offered by the University, Scholarship office of
UCBanilad only handle the following:

HACA-Academic Scholars PRES-PRESIDENTIAL SCHOLARS

SPES-STUDENT PUBLICATION EDITORIAL HDNL-DEANS LISTER
CCSM-CAMPUS MINISTRY CHOIR SSHG-SCIENCE HIGH GRADUATE
DSAO-SAO VOLUNTEER UCCP-UC-COUNCIL OF PRESIDENTS

Other scholarships are maintained by the Guidance Office (PF and EWOS), Accounting Dept (Sugbo and
other scholarships) with the coordination of Scholarship office in UC Main and Cultural Services).
The by-pass process (SO Banilad not privy of scholarship from SO-Main and Cultural) resulted to lack of
check and balance of inputs in the ledger. As such, variances existed between the list and the postings.

Recommendation:

In line with the finding title "Comparability of discount grants by departments", letting the scholarship
department manage the scholarships will increase the efficiency in the assessment process by the
accounting department and increase level of accountability between departments.

Accounting
SLAW-LAW SCHOLARSHIP dept RICM-RELIGIOUS-IMMACULADA MARILLAC Accounting dept
EWOS-Working Scholars Guidance Office PNPD-PNP/AFP DEPENDENT Accounting dept
Accounting
XSSS-SIYUDAD SA SUGBO SCHOLAR dept AVOL-Volleyball Accounting dept
Accounting
DSS5-SIYUDAD SA SUGBO (10+5) dept RAOC-ARCHDIOCESE OF CEBU Accounting dept
Accounting
DSS2-SIYUDAD SA SUGBO (10+2) dept RSHC-SACRED HEART CHURCH Accounting dept
RADM-ASILO DE LA MILAGROSA, Accounting
INC. dept EGOV-GOVT EMPLOYEE / DEPENDENT Accounting dept
Accounting
EAWG-Atty Go Scholars dept EFAD-Faculty Dependent Accounting dept
Accounting
DSS8-SIYUDAD SA SUGBO(10+8500 dept MAFD-AFP Dependent Accounting dept
Accounting
EEMD-Employee Dependent dept CCUS-Cultural Services Accounting dept
Accounting
AVAR-Varsity dept DJFS-JUNE MAR FAJARDO SCHOLAR Accounting dept
CPRF-Peer Facilitator Guidance Office DYCG-DISCOUNT APPD BY MISS CANDICE Accounting dept
Accounting
DREL-Relationship dept ASWM-Swimming Accounting dept
Accounting RCHS-CONGREGATION OF THE
ABMT-BADMINTON dept HOSPITALLE Accounting dept

Auditee’s Response:
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Maintenance and approval of working scholarship job descriptions

Department(s) Concerned: Departments with assigned working scholars

Observation: (D.01D Gap 7)

Examining for the reasonableness of the quantity of working scholars for a department, we requested for
the working scholars job descriptions and their respective superiors (with justifications) from several
departments. We noted that such schedule is not maintained. However, we noted that there were
documented requests for additional working scholars which is deliberated by the working scholarship
coordinator.

Current statistics of the University as regards working scholarships show that approximately 6% of total
tuition fees are from working scholarships tuition fee discounts and allowances and other grants in 191
(college only).

Recommendation:
We highly recommend each department to include the working scholars in their respective organizational
charts and have its JDs documented to show that such function is not a duplicate/unnecessary
positions/jobs.

Auditee’s Response:
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