INTELLECTUAL PROPERTY OFFICE OF THE PHILIPPINES

Major Audit Findings/Issues and Concerns

As of July 31, 2016
AAR
page
40-41

Major Audit Findings/

Recommendations
Issues and Concerns
The IPSO were able to assist a total of 1,695 We recommended and Management agreed to:
Intellectual Property (IP) filings for CY
2015 or 97.98 percent of 1,730 target for the a. revisit the targets and priorities of the IPSOs
year. However, four (4) IPSOs in the cities
and consider ways and/or techniques to
of Angeles, Cebu, Tacloban and General
increase
actual
accomplishment,
if
Santos were not able to achieve the annual
warranted;
target on the number of filings due to low IP
awareness and slow replacement of field b. conduct a separate evaluation/assessment
specialists who will orient/assist the
for those IPSOs who posted an extremely
prospective clients in the filing.
low number of assisted filings; and

Partially Implemented
Hiring of field specialists is in process, their
contracts are for the review and signature of the
Director General. Once hired, they will attend to
seminars and trainings to increase their
awareness on the program.

c. strengthen/intensify

50-52

IP assistance and
awareness programs to prevent nonaccomplishment of annual targets and
posting an extremely low number of assisted
filings in some areas.
The accounts Cash in Bank Local We recommended and Management agreed to
Currency, Savings Account and Cash in instruct the Trademark/Patent Director to
Bank Foreign Currency, Savings Account review the processes/procedures in accepting
were net understated by P9,903,186.47 and payments thru bank deposits so that the timely
P408,122.20, respectively, or a total of recording of collections and deposits in the
P10,311,308.67 due to unrecorded bank books of accounts will be made.
deposits and double recording of receipts,
thus, understating also the appropriate
Income/Liability (Other Unearned Revenue)
accounts by the same amount.

Status/Management Comment
as of July 31, 2016

Partially implemented
The amount of P 9,916,864.96 is adjusted per JEV
Nos. for the Cash in Bank, Local Currency, Savings
Acct.
2016-01-000093
2016-02-000386
2016-02-000636
2016-02-000637
2016-02-000648
2016-01-000303
Total

5,500.00
1,768.00
4,936,238.79
4,698,751.65
3,490.56
271,115.96
P 9,916,864.96
===========
Cash in Bank, Foreign Currency, Savings Account
2016-06-001902

1/4/2016
2/1/2016
2/16/2016
2/17/2016
2/1/2016
1/4/2016

6/1/2016

P 230,090.50

=========

51-52

45-47

47-48

The Due from Officers and Employees

account is overstated by P6,206,227.72
representing audit disallowance, net of
P1,280,004.48
refunds,
which
was
erroneously debited to said account.
Moreover, cumulative refunds totaling
P2,381,353.56 from the persons liable for
such disallowance were also erroneously
credited to Due to Officers and Employees
account instead of recognizing it as a
contingent liability, thus rendering the
account to be overstated by the same
amount.
Of the agencys total budget of P603.670
million, only P1.790 million or 0.30 percent
was allocated for GAD activities, which is
below the mandatory rate of at least five
percent while only P1.331 million or 74.38
percent of the allocated amount was
expended. Moreover, two GAD activities
were not implemented for CY 2015, but
included in the GAD Plan.

The IPOPHL has prepared/formulated plans

to implement programs and projects that
will address the concerns of the senior
citizens and differently-abled persons with
all the activities undertaken at a minimal
cost.
However, one activity was not
undertaken and the other one was not
included in its targeted plans and budget.

We recommended and Management agreed to

instruct the Accountant to effect the necessary
adjustments on the omissions/errors to correct
the reported balances of the affected accounts
in the Financial Statements and make the
appropriate disclosure in the notes for the
recognition of the contingent liability.

Fully Implemented

We recommended and Management agreed to:

Partially Implemented

a. comply with the mandatory budget of five

percent for GAD activities;
b. evaluate activities and expenses which can
be charged to the GAD budget and
contained in the PCW-NEDA-DBM
Circular No. 2012-01 in order to maximize
mainstreaming of GAD issues in the
agencys programs, activities and projects
(PAPs); and
c. ensure that the approved planned activities
will be implemented during the year.
We recommended and Management agreed to
identify appropriate projects/activities for the
senior citizens and differently-abled persons,
pursuant to the provisions of the GAA and
ensure that projects/activities identified are
undertaken.

Adjusted and verified JEV No. 2016-06-001992

dated June 1, 2016.

The following activities were conducted with the

corresponding expenditures:
Activities
GAD Focal Point Meeting on GAD
Mainstreaming
GAD Mainstreaming Evaluation Framework
Orientation
Men Opposed to Violence Everywhere
Capacity Building Seminar on Gender & Dev't

Amount
Expended
1,089.00
896.00
12,325.00
74,613.00

GAD activities will still be conducted from now

up to the end of the year.
Partially Implemented
The Adm. Officer V, HRD informed the audit
team that management has intended projects for
PWDs. However, upon submission of the list to
them , the PWDs decline to attend in the
trainings/livelihood activities because they find it
difficult for them to be there due to mobility.

For the Senior Citizens, the agency has undertaken the Ceremonial Tribute for 2016 retirees
with an expenditure of P23,976.75.
Submitted by:
YOLANDA P. JUAN
OIC, Audit Team Leader