Practices, problems, and challenges of compliance auditing of the renewable energy resources by the Department of Energy: Basis for proposed action plan / by Maria Salvacion Enorme Garcia.

Thesis (Master in Professional Studies Major in Public Administration) Cavite State University.

Includes bibliographical references.

College of Economics, Management and Development Studies (CEMDS), Department of Development Studies

GARCIA, MARIA SALVACION E. Practices, Problems, and Challenges of the Compliance Auditing of the Renewable Energy Resources by the Department of Energy: Basis for Proposed Action Plan. Master's Thesis. Master in Professional Studies major in Public Administration. Cavite State University, Indang Cavite. November 2019. Adviser: Prof Roderick M. Rupido.
The study was conducted at the Department of Energy in Bonifacio Global City, Taguig from June 2018 to February 2019 to assess the extent of compliance to the audit procedures applied in the audit of the Renewable Energy Resources. Specifically, the study aimed to: 1) review the audit practices done by the Department of Energy in relation to audit preparation and examination of the books of accounts; 2) identify the problems encountered by Technical Audit Specialist in conducting accounting and financial audit relative to income determination, costs of goods sold, and government share; 3) determine the issues and challenges faced by the Technical Audit Specialist as causes of problems encountered in the audit in terms of manpower resources, facilities, and technology; and 4) identify and present possible improvements or recommendations to enhance the accounting and financial audit of the Renewable Energy Resources. Descriptive research was used in the study. Data were obtained through survey questionnaires and interviews among 20 Technical Audit Specialists from the Renewable Energy Resources Compliance Division, Conventional Energy Resource Compliance Division, Power Compliance Division, and five selected Renewable Energy Developers. Each audit was done in accordance with the audit program set by the division. The basic procedures of the audit were to obtain audit instruction and signed introductory letter from immediate supervisors documents related to the service contracts under audit were read, reviewed and noted for any discrepancy, findings or adjustments that might have an impact on the current examination, facts sheets were updated, working summary and lead schedules for revenues and cost of sales, proforma assessment schedule, table of contents of the working papers were initially prepared, highlights and adjustments on prior period examination were taken into consideration as basis for the current audit; and other necessary coordination within the unit and technical division. Data revealed that there is a low compliance in the preparation of audit schedules based on client's reported revenues and costs of sales, accessibility of business location where the documents are situated and finalization of audit report. Moreover, there is a low compliance on the recovery of costs of goods sold and assessment of government share in the accounting and financial audit. The following proposals were highly recommended by respondents: regular meetings and discussions to thresh-out gray areas in Republic Act 9513, Implementing Rules and Regulations and Service Contract accounting provisions; empowerment of staff through strategic planning workshop on how to efficiently address audit issues; re-engineer and standardize audit procedure; develop a system technology that will help facilitate the audit; continue foreign and local trainings/seminars to help all staff be attuned with the current accounting and audit trend in the renewable energy sector; and grant additional monetary and non-monetary benefits and incentives.

Submitted to the University Library February 06, 2020 T-8432