EXECUTIVE SUMMARY
A. INTRODUCTION:
The Cagayan State University (CSU) was established on June 11, 1978 by virtue of
Presidential Decree No. 1436 issued by Pres. Ferdinand E. Marcos. It was established as
a result of the merger of eight (8) schools and colleges in the Province of Cagayan. Its
original mission was to provide advanced instruction in the arts, agricultural and natural
sciences as well as in technological and professional fields. At present, the University
aims to educate for the best such that its graduates do not only become professionally
competent but become globally competitive as well.
The University is under the helm of Roger P. Perez, Ph. D., CESO II, who was re-elected
for a second term in April 2008. Assisting the President are three Vice Presidents: Rev.
Fr. Ranhilio C. Aquino, Ph. D., S.J.D., Vice President for Academic Affairs; Perfecto V.
Vivit, Ph. D., Vice President for Administration and Rogelio P. Matalang, Ph. D., Vice
President for Research and Extension.
CSU has eight (8) campuses strategically located in the different municipalities of
Cagayan and are headed by a Campus Executive Officer. The University does not only
cater to residents of Cagayan but other provinces and regions as well. The partnership of
CSU with other institutions abroad is gradually giving it a global character.
Consequently, a sizeable number of foreign nationals are currently enrolled in the CSU
College of Medicine.
B. PERFORMANCE HIGHLIGHTS:
FINANCIAL PERFORMANCE
COMPARATIVE STATEMENT OF ACTUAL RECEIPTS
FISCAL YEAR 2011 AND 2010
(In Thousand Pesos)
NATIONAL SUBSIDY
PARTICULARS FY 2011 FY 2010 INC/(DEC)
PS 286,594 260,482 26,112
MOOE 58,797 55,131 3,666
CO 0 2,645 (2,645)
RLIP 24,991 19,232 5,759
TOTALS 370,382 337,490 32,892
INTERNALLY GENERATED INCOME
TUITION AND OTHER FEES 195,074 164,743 30,331
INCOME FROM OTHER
SOURCES (BUSINESS
OPERATIONS) 34,172 30,110 4,062
GRANTS/DONATIONS
(TRUST FUNDS) 31,028 19,280 11,748
TOTALS 260,274 214,133 46,141
GRAND TOTALS 630,656 551,623 79,033
For FY 2011, there was an increase in the total National Subsidy of P 32,892,000.00 from
P337,490,000.00 in FY 2010 to P370,382,000.00. This 9.75% increase in the national
subsidy is primarily attributed to the increase in Personal Services as mandated by the
Salary Standardization Law. At the same time, there was an increase on the total releases
for MOOE of the University for FY2011 due to the high score obtained in the result of
the normative financing scheme evaluation conducted by DBM-CHED panel.
The University realized income for the year 2011 in the amount of P630,656,000. The
increase in Internally Generated Funds was primarily due to the increase in the total
number of students admitted by Cagayan State University. There was a 5.26% increase
in enrolment in so far as 61,580 students were admitted in SY 2011-2012 while a total of
58,504 were admitted in SY 2010-2011. Income from tuition and other fees increased to
P195,074, 000 for Fiscal Year 2011 from P164,743,000 in Fiscal year 2010. The
P30,331,000.00 difference constitutes an 11.90% increase.
There was also an increase of 61% in grants and donations received by the University
from other agencies amounting to P31,028,000, the bulk of which is for research and
extension. There was a 10% increase in total assets of the University amounting to
P83,001,274.14 since total assets as of December 31, 2010 was P814,664,679 compared
to P897,665,953.58 as of December 31, 2011.
There was a 1.8% increase in total liabilities in 2011 amounting to P1,309,034.10 as the
total liabilities in 2010 was P72,815,557.07 and the total liabilities in 2011 was
P74,124,591.06. This is primarily due to the increase in liabilities caused by the increase
in externally funded research projects which are recorded in the books as “Due to other
NGAs” as per National Government Accounting Standards.
On the utilization of funds, of the total releases from national subsidy of
P370,382,000.00, P368,245,000.00 was obligated for the year 2011 and the unobligated
amount of P2,137,000.00 was included for re-appropriation on FY2012.
For Internally Generated Income, we have a total expenditure of P 185,188,000.00 during
the year where P107,599,000.00 was obligated and disbursed for MOOE and
P77,589,000.00 was obligated for Capital Outlay.
PHYSICAL PERFORMANCE
MFO1 – HIGHER EDUCATION SERVICES
1. Weighted Full-Time Equivalent Students ( FTES) for SY 2010-2011 was 37,200
which manifested an increase of 6,052 or 19.43% over the targeted FTES of 31,148.
2. The total number of Graduates for 2011 is 4,816 which shows that the target of 2,814
was surpassed by 71%.
3. On faculty profile, of the 574 faculty members, 57% or 330 are master’s degree
holders; 28.8% or 160 are doctorate degree holders and the rest are bachelor’s degree
holders.
Faculty Evaluation for Institutional Promotion for the entire University and
compliance with the submission of documents for NBC 461 4th Cycle was
undertaken resulting in the promotion to various ranks of Twenty Nine ( 29)
Faculty members.
Five (5) Professors of Bachelor in Technical Teacher Education (BTTE) Program
of CSU were awarded National Certification II (NC II) on meat processing by
the TESDA after passing the National Exam in Meat Processing.
4. In regard to Board Examination Performance, of the 11 programs subject to board or
licensure examination, 7 programs have surpassed the national passing rate.
CSU was recognized in the field of Accountancy as:
#1 Best Performing Accountancy School in Region 02
#1 Best Performing State University in the Region
#9 Best Performing State University in the Philippines
#11 Best Performing Schools in the Philippines
Out of Two Hundred Thirty Seven (237) examinees in the Licensure Examinations,
One Hundred Seventy Nine ( 179) passed in the year 2011 which manifests a 75%
passing rate. Thirty Eight (38) passed the Medical Technologist Licensure
Examination in March and September 2011 which showed a remarkable 100%
passing rate. Nineteen (19) passed the Electrical Engineering Board Examination
in October 2011, Five (5) passed the Veterinary Medicine Board Examination in
August 2011 and Twenty Two (22) made it in the Board Examination for Certified
Public Accountants.
5. On the Accreditation Status of Programs: PACUCOA granted the CSU College
of Medical Technology a level 1 status on accreditation.
6. For scholarship programs: The OSSW reported 4,768 total average number of
scholars for SY 2011-2012. These were funded by the various competitive external
scholarship grants. Complementing these external grants is the University’s own
“Kaagapay Scholarship Program” and Academic Scholarships offered to poor but
deserving students.
MFO 2 – RESEARCH SERVICES
1. As to research output implemented, a total of eleven (11) researches were
implemented in the different fora and conferences.
2. The Research Office has evaluated thirty three (33) research proposals for the CY
2010-2011.
3. There were sixteen (16) researches which were disseminated/presented during the
year.
4. A total of Nine (9) research projects were funded by external grants and linkages.
5. The University empowered the faculty and staff by funding their seminars and
trainings. Faculty and staff attended a total of twenty three (23) trainings/seminars
on research in 2011.
MFO 3 – EXTENSION SERVICES
1. For the performance period, a total of 115 training/seminar activities were
coordinated and conducted by the different campuses for extension
projects/programs.
2. A total of 5,990 partner-clients participated and trained through the different
extension programs and expert/consultancy services of the University.
3. Projects and activities on climate change mitigation and environmental conservation
were promoted in the trainings/seminars conducted in the 16 different areas of the
province.
4. Student Livelihood and Entrepreneurship was also promoted and established during
the year to showcase science and technology interventions applied to certain
commodities which benefited the students.
5. Techno Gabay Project in partnership with the different LGUs for the transfer of
technologies to target clients was in full implementation during the year. Nineteen
(19) FITS Centers benefited from this project.
6. Technology Demonstrations were also conducted by the Extension Office in the 50
different barangays.
7. With regard to Technology Transfer, a total of eleven (11) technologies were
transferred and disseminated to clients/beneficiaries through print and broadcast
media.
PRODUCTION
1. Financial Report as of December 31, 2011 for Income Generating Project (All
Campuses) showed a gross income of Php 17,939,340.24 and total Expenses of
Php9,458,374.7, hence, the University generated a total Net Income for the year of
P 8,480,965.45.
2. New IGPs were established by the different campuses such as Groceries, Petty Cash
Loan Programs and some other merchandise for sale.
INFRASTRUCTURE AND PHYSICAL DEVELOPMENT
1. The University continues to pursue the programmed structural rehabilitation of its
buildings and educational facilities spread across the seven (7) campuses. These
undertakings were funded by Special Budget (164) duly approved by the Board.
2. The “Entrance Gate” of Carig Campus is nearing its completion and was scheduled
to be inaugurated on the February 2012.
3. The roof of the Red Eagle Gymnasium in Carig is near completion and scheduled to
be used during the graduation for SY 2011-2012.
4. The Academic Building, 5-star CR and Entrance Gate of CSU-Aparri Campus were
blessed and inaugurated last September 2011.
5. The Five ( 5 ) Storey - School Building intended for the College of Hospitality
Management is nearing completion and some rooms were already used as
classrooms beginning the SY 2011-2012.
6. The CSU-Andrews Campus purchased a new vehicle for its operations (Hyundai
100) and heavy equipment as part of the University’s effort to hasten efficiency and
pursue its modernization projects under the Business programs & other agri-based
income generating projects.
7. The CSU-Carig Campus also purchased one (1) unit Hyundai Starex for the
operation of the university.
8. E-library with a contract price of 2.5 Million was fully utilized during the year for
the convenience of the students and for accreditation purposes.
9. New furniture and fixtures as well as office equipment were procured and installed
in classrooms and offices in all campuses of the university.
C. Scope of Audit
The audit of the accounts and operations of the Cagayan State University consisted
of financial and compliance audit. It covered the transactions of the Cagayan State
University for the whole year of 2011.
D. Auditor’s Opinion on the Financial Statements
The Auditor rendered a qualified opinion on the presentation of the financial
statements of the Cagayan State University as of December 31, 2011 due to the
noted deficiencies on the balances of the affected accounts as discussed in detail in
Part II of this report.
E. Significant Findings and Recommendations
There are fourteen (14) audit findings and recommendations which we discussed
with management officials in an exit conference and their comments/justifications
are incorporated in this report, where appropriate. The most significant findings and
recommendations are as follows:
1. Accounts Receivable totaling P 40,802,706.39 representing fiduciary fees/tuition
fees from students, have not been recorded in the books of accounts of the
University’s main and satellite campuses within the Province of Cagayan thereby
understating the receivable and income accounts.
We recommend that the school should record the total Accounts Receivable based
on the assessment fees from students/enrollees. The guidelines and procedures set
under COA Circular Letter No. 2004-002 dated September 30, 2004 in the proper
treatment of income from tuition fees should likewise be observed.
2. The validity of the balance of P1,500,000.00 for Other Investments and
Marketable Securities Account as presented in the financial statements of CSU
Andrews Campus, Tuguegarao City, is doubtful because the details and the
documents to support the same were not available. Also, the status of the
Account was not disclosed in the Notes to Financial Statements, thus, affecting its
fair presentation in violation of Section 111 of Presidential Decree No. 1445.
We recommend for the Finance Chief to determine the composition of the account
balance and to establish the validity of ownership of the University for the same.
Also, disclose in the Notes to Financial Statements the status of the investment so
as not to mislead its readers and users pursuant to Section 111 of PD 1445.
3. The repairs and maintenance cost of a motor vehicle of CSU Piat Campus, Piat,
Cagayan, was more than 30% of the current market price of the same, an
indication that the vehicle may no longer be economically repairable, hence, the
costs for repair and maintenance are considered excessive and may no longer be
cost effective pursuant to COA Circular No. 85-55-A dated September 8, 1985.
We recommend that Management should review the repair history of its motor
vehicles. Management should also consider including in their future programs the
possibilities of acquiring new motor vehicle to improve its operations effectively
and efficiently.
4. Labor expense amounting to P1,008,257.89 for the construction of the Batanes
Dorm which is 87.27% completed has already exceeded its programmed cost for
the whole project of P709,729.54 or an excess of P298,528.35 which was due to
the delayed implementation of the project.
Also, deviations from the approved program of work were implemented even if
variation orders were not yet approved by the DPWH, the changes may not be
necessary or appropriate. Moreover, the implementation of the project has long
been delayed, thus, denying the students the benefits they should have derived had
the project been completed on time.
We require a written explanation why the approved program of work was not
implemented and why were the deviations/changes implemented even without the
required approval of the DPWH RO2. Also, we require an explanation why the
excessive expense for labor should not be disallowed in audit, considering that
same was due to the delayed implementation of the project.
F. Status of Implementations of Prior Year’s Audit Recommendations
Of the twenty three (23) prior years’ audit recommendations, twelve (12) were fully
implemented, nine (9) were partially implemented and two (2) were not
implemented.