A.

COMPLIANCE AUDIT: PROJECT CLICK

I. Background of Project CLICK

The DICT is the primary policy, planning, coordinating, implementing and administrative
entity of the government that will plan , develop and promote the national ICT development agenda
on conjunction with the state policies to ensure the provision of strategic, reliable, cost-efficient
and citizen-centric information and communications technology (CICT) infrastructure systems
and resources as instruments of good governance and global competitiveness, to promote digital
literacy, ICT expertise, and knowledge building among citizens to enable them to participate and
compete in an evolving information age, to promote the use of ICT for the enhancement of key
public service such as education, to ensure the rights of individuals to privacy and confidentiality
of their personal information , and to ensure the security of information assets of individuals.

The DICT assumed the function of the National Computer Center including that of
facilitating the requests of LGUs, the legislative and judicial branches, as well as constitutiona l
commissions, if and when these independent entities decide to become part of the government
computerization and electronic networking programs , and projects.”

The 2019 data of the International Telecommunication Union (ITU) reports that only 2%
of Filipinos aged 15 and above have the basic ICT skills, while only 6% acquire standard ICT
skills, and less than 1% have advances ICI- skills Development Target for 20230 is at 70% for
basic ICT skills and 50% for standard ICT skills, these numbers rank the Philippines at a significant
disadvantage. Thus, access to ICT devices (mobile or computer) and the Internet are fundamental
to gaining digital benefits. Also, the 2019 PH National ICT Household Survey reveals that only
24% of households own a computer and 64% of these live in the urban areas.

A massive shift of almost all transactions online and in the cyber-domain was observed
during the COVID-19 pandemic and have created a plethora of opportunities that can only be
realized through digitally literate, ICT-empowered citizens with the means, capability, and know-
how in terms of safety and fully navigating the digital terrain to reap its rewards, while at the same
time avoiding risk of being victimized by cybercrimes/harmful cyber activities.

During the pandemic, the DICT issued Department Circular 003 s. 2023 dated August 31,
2023 “Implementation of the Courses for Literacy in the Internet and Computer Knowledge
project and Providing Amendments to the Terms of Engagement” wherein the projects under the
Digital Education Programs pursuant to DC 12 and its series (12-A, 12-B, 12-C and 12-D) was
consolidated into the Digital Learners Program. Such was amended in the issuance of the DICT
DC No. 002 dated August 31, 2023. The DC No. 002 rebrand the Digital Leaners project (DLP)
to Project Courses for Literacy in the Internet and Computer Knowledge (Project CLICK).

II. Project Description

The DICT’s Courses for Literacy in Internet and Computer Knowledge or “Project CLICK”
(formerly known as the Digital Learners Project or DLP) was created as part of the government’s
efforts in addressing the effects of the global pandemic in the economy of the Philippines. It is in
compliance with the 8-point agenda released by the National Economic and Development
Authority (NEDA) that will endeavor to address the learning losses of the Filipinos due to the
pandemic and among others.

The project CLICK aims to address the learning gaps of Filipinos in terms of its digital
skills and the learning losses of students brought about by the global pandemic in the past two
years, while continuously educating them about cyber threats and cyber safety. It shall also provide
access to these digital content and trainings through the provision of the appropriate tools to its
project beneficiaries. In essence, the Project CLICK shall provide support in promoting digital
literacy and cyber hygiene trainings to its project beneficiaries. Furthermore, beneficiaries shall
also receive devices in order to complement the training being administered by the project.

III. General Objectives

Among the general objectives of Project CLICK are:

• To promote the use of ICT for the enhancement of key public services, such as
education, public health and safety, revenue generation, and socio-civic purposes;
• To empower, through the use of ICT, the disadvantaged segments of the population,
including the elderly, persons with disabilities, and indigenous and minority groups;
• To promote strategic partnerships and alliances between and among local and
international ICT, research and development, and educational and training institutions
to speed up industry growth and enhance the competitiveness of Philippine workers,
firms, and small and medium enterprises in the global markets for ICT and ICT-enabled
services;
• To promote digital literacy by building the knowledge of students and learners in the
public schools and other public education, learning, and training environments, as well
as the public clientele for ICT, to prepare them to participate and compete in an
evolving ICT age;
• To deliver cyber education and learning content in order to promote cyber safety and
security awareness and practices and address relevant stakeholders;
• To map trends and inform policy and future interventions from the generated baseline
data; and
• To provide access, through the use of the necessary ICT equipment, to relevant
stakeholders in participating in various digital skilling and upskilling activities.

IV. Scope

The Project CLICK shall conduct various trainings that are geared towards the following
goals: (i) train the project’s target audience with digital literacy, and (ii) promote cyber
hygiene to the same target audience. These two training categories shall build the needed
competency of Filipinos to become Digital Citizens who are responsible users of today’s
technologies and the content or information it produces.
 It is imperative that the relevant stakeholders must have access to the training and/or
content the project offers. In order to effectively do this, the ILCDB shall complement the
conduct of the digital literacy and cyber hygiene trainings with the appropriate ICT
equipment.

The Project intends to download funds to the DICT Regional Offices to properly implement
its training to the chosen beneficiaries in different Regions and distribute the digital devices
intended thereof.

V. Beneficiaries

The DICT creates partnership with Public Educational Institutions and Local Government Units
(LGUs). Specifically, the Project CLICK focuses on the implementation of its training to the
following:

1. For Digital Literacy training: Students11 aged 14 and above, Teachers, Non-Teaching
Personnel12, LGU and Barangay Officials, and those unemployed who are seeking
employment in the ICT field; and
2. For Cyber Hygiene training: Students aged 13 and below, Teachers, Non-Teaching
Personnel, LGU and Barangay Officials; and those unemployed who are seeking
employment in the ICT field.
The following stakeholders shall be given priority in terms of learning content development
and delivery: (i) persons with disability (PWDs), (ii) children in conflict with law (CICL),
and other members of the vulnerable sector who will benefit from this Project.

VI. Project Component:

1. Training
The project CLICK shall conduct various trainings that are geared towards the following
goals: (i) train the project’s target audience with digital literacy, and (ii) promote cyber
hygiene to the same target audience specifically to public school students aged 9-19.

2. ICT Device Distribution

It is essential that the training and/or content of the project offers are accessible to the
pertinent parties. The ILCDB supplements the delivery of the digital literacy and cyber
hygiene trainings with the necessary ICT devices in order to do this. With this, the DICT
creates strategic partnerships with local governments and institutions of higher learnings.

VII. Budget Allocation

The budget for CY 2024 is sourced from the ICT Capacity Development and Management
program nuder Digital Workforce through the ICT Academy

Planned Activity Fund Source Budget Allocation

For CY 2023 Implementation
Digital Workforce Training Administration
 Procurement of digital devices for Project CY 2023 60,001,979.20
CLICK and conduct of trainings

For CY 2023 Implementation

PROJECT CLICK Implementation CY 2022 continuing
 Procurement of Project CLICK 38,800,000.00
Laptops (873 units)
For CY 2024 Implementation
PROJECT CLICK Implementation 2023 Continuing 13,160,172.00

 Traveling Expenses- Local 4,490,100.00

 ICT Training Expenses 5,880,420.00
 Postage and Courier Services 2,789,652.00
Total

The budget distribution shall be the following:

Component Performance Indicator Region Target per Amount

Region
Digital Workforce- Project CLICK Region IV-B 2 230,200.00
Training Implementation- MIMAROPA
Administration Conduct of Project
CLICK Implementation
Region V- Bicol 4 348,000.00
Region
Region VI- Western 4 411,600.00
Visayas
Region VII- Cnetral 4 501,600.00
Visyas
Region XII- 4 203,000.00
SOCCSKSARGE
NCR 40 11,465,772.00

VIII. Targets

A. CY 2024

Major Activity Performance Indicators Targets Means of Verification

Engagement of Professional Services for Developed an ICT Training 1 Approved Modules
Academic Work Manual for Project CLICK
Project CLICK Implementation Number of trainings 56 Approved training calendar
conducted
Number of participants 3222 Attendance records,
documentation and
certificates
Number of deployed 3222 Final list of beneficiaries
Devices
Procurement of digital devices for Project Procured Digital Devices 450 Number of devices
CLICK delivered
 B. CY 2023

Major Activity Performance Indicators Targets Means of Verification

Conduct of Training of Trainers on
Number of trainings
Digital Literacy and Cyber Hygiene for 1 Approved training calendar
conducted
Project CLICK
Attendance records,
Conduct of Training of Trainers on
Number of male and female training photo
Digital Literacy and Cyber Hygiene for 60
participants trained documentation and
Project CLICK
certificates of attendance
Engagement of Central Office - Job
Engagement of Job Orders 1 -
Orders (TMD + CLICK)
Deployment of digital devices for the Number of beneficiaries
2933 Final list of beneficiaries
Project CLICK with deployed devices

IX. TEMPLATE FROM THE OCD

Table 7. Compliance Audit Project CLICK

Area Criteria Risk Audit Objective
Compliance of the DICT Department  The implementation of the  To determine if activities undertaken by the
Project CLICK Circular (DC) No. 02 Project CLICK services may not Project CLICK were in accord with
with the dated August 31, have been in accord with the Department Circular (DC) No. 02 dated
Department 2023, COA Circular DICT Department Circular August 31, 2023, COA Circular 2012-001,
Circular No. 02 2012-001, PD 1445, (DC) No. 02 dated August 31, PD 1445, RA No. 9184 and other issuances.
dated August 31, RA No. 9184 and 2023, COA Circular 2012-001,  To determine if the provisions of Department
2023 and existing other issuances. PD 1445, RA No. 9184 and Circular (DC) No. 02 dated August 31, 2023
laws, rules and other issuances. were implemented and operationalized.
regulations on  Targets and commitments set  To determine if the targets/ commitments of
disbursements and were not achieved; the Project CLICK were achieved in CY 2023
procurement.  Disbursements and and CY 2024;
procurements undertaken were  To determine if the disbursements and
not in line with the achievement procurements undertaken were in line with
of the objectives of the project the achievement of the objectives of the
and not in compliance with the project and in compliance with the existing
existing laws, rules and laws, rules, and regulations;
regulations;  To determine whether there were existing
 Non-existence of guidelines, controls, guidelines, operational manuals,
operational manuals, and and other existing policies governing the
policies in the implementation implementation of the Project CLICK
of Project CLICK; especially transfers made to the Regional
 Inappropriate beneficiaries or Offices.
the ICT devices were distributed  To determine the appropriateness in the
to non-intended beneficiaries; selection of the beneficiaries;
 The absence of procedural  To determine if there's an existing guideline
guidelines in the selection of in the selection of beneficiaries;
beneficiaries;  To determine whether the transfer of the ICT
 Inadequacy of control equipment to the institutional partners and
mechanisms for the monitoring, conduct of trainings were in accord with the
reporting and safeguarding of existing laws, rules and regulations (guided
asset; and by Belgica case);
 Technicality of the transactions  To determine the existence of monitoring
and operations of the project for mechanism and safeguards to establish
 which the Audit Team has no accountability and custodianship over
expertise; distributed ICT equipment.
 Limited manpower in the  To determine if there is post- implementation
conduct of audit considering the study or survey conducted to assess on the
volume of transaction. impact of the project implementation.
 To determine if the ICT devices were indeed
received by the recipients that necessary
entails requirements for transfer documents
and names of the beneficiaries.

X. UNDERSTANDING THE SUBJECT MATTER

Agency DICT
Period Covered January 2023 to December 2024
Identified Subject Matter Compliance of the Project CLICK with the Department Circular No. 02 dated August 31, 2023 and
existing laws, rules and regulations on disbursements and procurement.
Basis of Selection  Department Circular No. 02 dated August 31, 2023
 Other existing rules and regulations on disbursements and procurement
 Audit Focus and Thrust Area under SAI for CY 2024 Audit

Description of the Subject The DICT’s Courses for Literacy in Internet and Computer Knowledge or “Project CLICK” (formerly
Matter known as the Digital Learners Project or DLP) was created as part of the government’s efforts in
addressing the effects of the global pandemic in the economy of the Philippines. It is in compliance
with the 8-point agenda released by the National Economic and Development Authority (NEDA) that
will endeavor to address the learning losses of the Filipinos due to the pandemic and among others.
The Project CLICK shall provide support in promoting digital literacy and cyber hygiene trainings to
its project beneficiaries. Furthermore, beneficiaries shall also receive devices in order to complemen t
the training being administered by the project.
Audit Scope CY 2023 to 2024
Criteria Department Circular No. 02 dated August 31, 2023; DICT GAA CY 2023 and 2024; COA Circular
2012-001; PD 1445, RA No. 9184

XI. COMPLIANCE AUDIT PROGRAM

Area Compliance of the Project CLICK with the Department Circular No. 02 dated August 31,
2023 and existing laws, rules and regulations on disbursements and procurement.
Person Date
Audit Procedures Ref
Responsible Completed
1. Obtain copy of the following reports for the period January 1, 2023 to December 31, 2024: ATM/ATL
1.1. Budget Execution Documents
1.2. Budget proposal
1.3. PPMP and APP
1.4. Recorded Disbursements reported in the FAR NO. 1 charged to the Project CLICK;
1.5. List of procurements undertaken by the Project CLICK
(Supplier/Particulars/Contract Cost/ terms of Payment/Nature of services/ Duration
of the Contract/ Renewal with project extension date and if same agreed terms and
conditions)
1.6. Copy of all the contract agreements entered into by the DICT with suppliers in the
implementation of services rendered by Project CLICK
1.7. Policy/Guidelines/protocols/manuals/ process flow utilized in implementation and
monitoring of Project CLICK
Area Compliance of the Project CLICK with the Department Circular No. 02 dated August 31,
2023 and existing laws, rules and regulations on disbursements and procurement.
Person Date
Audit Procedures Ref
Responsible Completed
1.8. Installed monitoring mechanisms to supervise the transfer of ICT
equipment/devices
1.9. Monitoring reports by the project CLICK for the distributed ICT equipment
including names of institutional partners, focal persons and list of recipients;
1.10. List of beneficiaries with serial numbers of the distributed ICT equipment ;
1.11. List of trainings conducted and participants thereon;
1.12. Copies of the memorandum of Agreement with Institutional Partners;
1.13. Transfer documents including the agreement entered into with institutional partners
1.14. Status of the contracts entered into with the DICT and suppliers ( Supplier/ Nature
of Services/ location of installed sites/ number of sites/ status (i.e active, terminated,
suspended, not yet operating, fully accepted)/ reason for the non -delivery/
suspension/ termination/
1.15. General Ledger/ Report of Checks Issues/ SLs in the implementation of project
CLICK
1.16. List of disbursements relating to the procured services for the implementation of
project CLICK
1.17. Policy, manuals, process flow, operating guidelines in the conduct of training and
distribution of ICT Equipment as well as in the selection of beneficiaries;
1.18. Inventory and status of the acquired ICT equipment (acquired, distributed, and
balance)
2. Determine the existence of policy, manuals, process flow, and operating guidelines in the ATM/ATL
implementation of services by the Project CLICK
3. Examine and conduct walkthrough of the policy, manuals, process flow and operational ATM/ATL
guidelines of the Project CLICK
4. Compare the actual accomplishments of the Project CLICK against the targets/ commitments ATM/ATL
under the GAA CY 2023 and 2024 and AWFP

5. Inquire on the reason for the non-accomplishment of the targets and actions undertaken by
the Project CLICK to rectify the problem.
6. Determine if the obtained list of PPAs and actual accomplishments were in accord with ATM/ATL
Department Circulars and AWFP
7. Validate if all the provisions of the Department Circulars relative to Project CLICK were ATM/ATL
operationalized through the conducted activities;
8. Inquire on the reason for the non-compliance with the provisions of DICT Circular and
actions undertaken by the Project CLICK to rectify the problem.
9. Conduct inspection and inventory of the number of ICT equipment that remained on hand. ATM/ATL
Check if it match with the report of inventory by the Project CLICK

10. Review if trainings were conducted prior to the deployment of ICT devices;

11. Inspect the transfer documents and accountabilities for the ICT Equipment’s including the ATM/ATL
list of beneficiaries

12. Confirm with the beneficiaries the transfer of the documents ATM/ATL
Area Compliance of the Project CLICK with the Department Circular No. 02 dated August 31,
2023 and existing laws, rules and regulations on disbursements and procurement.
Person Date
Audit Procedures Ref
Responsible Completed
13. Review the existence of control mechanisms for the safeguarding of assets, transfer of ATM/ATL
accountabilities and monitoring reports including the existence of Memorandum of
Agreements
14. Review the roles and responsibilities of the parties and other provisions of the Memorandum ATM/ATL
of Agreement;
15. Examine the selection of beneficiaries if it is in accord with the existing Department Order, ATM/ATL
Operational Manual, Guidelines, Laws and Regulations;
16. Check if the ICT devices were indeed received by the beneficiaries; ATM/ATL

17. Review the status of all the procured contracts for Project CLICK and its implementation to ATM/ATL
date.
18. Inquire if there is post-implementation survey or assessment on the impact of the project; ATM/ATL

19. Inquire on the reason for the non-implementation, suspension/ termination, or delay in the ATM/ATL
implementation.
20. Prepare working paper on the unimplemented contracts . ATM/ATL

21. Prepare and issue AOM for all deficiencies noted. ATM/ATL

22. Secure Management Comment on the AOM ATM/ATL

23. Prepare and transmit Management Letter to the Auditee ATL/SA

24. Organize, index and file Audit Working Papers ATM/ATL