Frequently Asked Questions
FAQ: Municipality of Basey COA Audit Report (CY 2023)
Answers to common questions about the Commission on Audit (COA) Annual Audit Report of the Municipality of Basey, Province of Samar for the calendar year ended December 31, 2023. The guide contains 25 questions across its sections below. See the CY 2024 FAQ for the current year’s report.
General Profile & CY 2023 Audit Overview
The Municipality of Basey was founded and created by virtue of a Royal Spanish proclamation. It is a 1st class municipality in the Province of Samar, Region VIII (Eastern Visayas), Philippines, and is administratively subdivided into fifty-one (51) barangays. The Municipality serves primarily as a general-purpose local government unit responsible for delivering basic, regular, and direct public services and maintaining effective local governance within its territorial jurisdiction.
Source and verification reference: Executive Summary, Introduction, p. 1; Part I - Notes to Combined Financial Statements, Note 1 (Profile), p. 12.
Financial Position & Balance Sheet Highlights (as of Dec 31, 2023)
As of December 31, 2023, the Municipality of Basey reported the following combined financial position:
| Financial Element | Amount (in Philippine Peso) |
|---|---|
| Total Current Assets | ₱362,047,098.26 |
| Total Non-Current Assets | ₱743,276,415.14 |
| TOTAL ASSETS | ₱1,105,323,513.40 |
| Total Current Liabilities | ₱240,613,070.83 |
| Total Non-Current Liabilities | ₱58,660,077.07 |
| TOTAL LIABILITIES | ₱315,907,664.83 |
| TOTAL EQUITY | ₱789,415,848.57 |
| TOTAL LIABILITIES AND EQUITY | ₱1,105,323,513.40 |
Source and verification reference: Part I - Combined Statement of Financial Position, p. 4; Executive Summary, Financial Highlights, p. 2.
Financial Performance & Operating Results for CY 2023
In CY 2023, the Municipality of Basey realized total revenue of ₱299,055,159.15 (a decrease from the ₱349,188,781.33 collected in CY 2022). The composition was as follows:
| Revenue Stream | Account Note | CY 2023 Amount (₱) | CY 2022 Amount (₱) |
|---|---|---|---|
| Tax Revenue | Note 13 | 3,440,115.01 | 3,360,572.52 |
| Share from Internal Revenue Collections (IRA / NTA) | Note 13 | 288,966,942.00 | 338,106,297.00 |
| Service and Business Income | Note 14 | 6,424,367.60 | 7,429,725.40 |
| Shares, Grants and Donations | Note 16 | 223,734.54 | 292,186.41 |
| TOTAL REVENUE | ₱299,055,159.15 | ₱349,188,781.33 |
Breakdown of Tax Revenue (₱3,440,115.01): Community Tax: ₱399,078.81; Real Property Tax - Basic (Net of Discount): ₱377,912.50; Business Tax: ₱1,887,818.30; Special Education Tax (Net of Discount): ₱472,390.62; Fines and Penalties on Taxes: ₱302,914.78.
Source and verification reference: Part I - Combined Statement of Financial Performance, p. 5; Notes to Combined Financial Statements, Notes 13, 14, and 16, pp. 23-25.
CY 2023 Budget, Appropriations, and Obligations
- Original Budget / Appropriation: ₱297,432,649.00
- Final Budget / Appropriation: ₱426,358,966.00
- Net Supplemental / Adjustment Additions: ₱128,926,317.00
Source and verification reference: Part I - Statement of Comparison of Budget and Actual Amounts, pp. 9-11; Executive Summary, Appropriations and Obligations, pp. 2-3.
Special Funds, National Grants, and Programs
Budget & Utilization:
- Total 20% Development Fund Appropriation: ₱57,836,529.80 (Capital Outlay: ₱56,836,529.80; MOOE: ₱1,000,000.00).
- Total Actual Obligation: ₱45,302,683.01 (CO: ₱44,302,683.01; MOOE: ₱1,000,000.00).
Project Accomplishments & Delays:
- Out of 55 programmed projects for CY 2023, 43 were completed, 7 were ongoing, and 5 projects totaling ₱7,800,000.00 were completely unimplemented at year-end.
- In addition, 13 continuing appropriation projects from CY 2021 and 2022 amounting to ₱18,318,250.34 remained unimplemented.
Audit Observations & Deficiencies:
- Exceeded Project Budgets: Five (5) PPAs exceeded their allocated appropriations by a total of ₱1,388,245.36 without approved budget augmentations or supplemental budgets.
- Ineligible Expense Charges: ₱446,777.95 was charged to the fund as honoraria for the Municipal Project Monitoring Committee (MPMC), which is an ineligible Personal Services cost under DBM-DOF-DILG JMC No. 1.
- Livelihood Assistance Inadequacies: ₱1,000,000.00 was distributed in cash (₱20,000.00 each) to 50 associations without the documentary requirements mandated under COA Circular No. 2007-001.
- Cemetery Lot Purchase Irregularities: ₱650,000.00 (net payment ₱601,250.00) was disbursed to a co-heir for a public cemetery lot at Brgy. Guirang without required title registration, Certificate Authorizing Registration (CAR), capital gains/transfer tax proof, or deed annotation.
- Delayed Contract Submissions: Perfected contracts for 37 infrastructure projects (contract value: ₱163,555,770.22) were either delayed (24 contracts delayed by an average of 223.05 working days) or unsubmitted (13 contracts totaling ₱64,755,221.93).
Source and verification reference: Part II - Detailed Observations Nos. 6, 7, and 8, pp. 59-78; Appendices H, I, and J, pp. 132-139.
Significant Audit Observations and Deficiencies
- 1.Unreconciled Variance of ₱620,948,128.99: The physical inventory report (RPCPPE) submitted by the Inventory Committee covered only newly acquired equipment totaling ₱1,615,132.86, omitting Land, Land Improvements, Infrastructure Assets, Buildings, and Vehicles, whereas accounting records reflected ₱622,563,261.85 (excluding CIP).
- 2.Unrecognized Depreciation on ₱31,028,905.38 Net Book Value: Depreciable assets - including Agricultural and Forestry Equipment (₱7,530,683.69), Medical Equipment (₱548,317.03), Other Machinery (₱466,570.85), and Motor Vehicles (₱22,483,333.81) - had identical costs and accumulated depreciation in CY 2022 and CY 2023, reflecting zero depreciation recognized during 2023.
- 3.Understated Accumulated Depreciation on Additions (₱57,925.47): Depreciation computed on CY 2023 acquisitions used an erroneous 5% residual value instead of the mandated 10%, and failed to observe mid-month cut-off rules.
- 4.Non-Disclosure of Asset Useful Lives: The Notes to the Combined Financial Statements failed to disclose the estimated useful lives or depreciation rates used per asset class.
Source and verification reference: Part II - Detailed Observation No. 2, pp. 32-41; Tables 5-8, pp. 35-40.
Audit Suspensions, Disallowances, and Charges (SASDC)
The status of audit suspensions, disallowances, and charges as of December 31, 2023, was as follows:
| Particulars | Beginning Balance (Jan. 1, 2023) | Issued (Jan. 1 - Dec. 31, 2023) | Settled (NSSDC) (CY 2023) | Ending Balance (Dec. 31, 2023) |
|---|---|---|---|---|
| Notice of Suspension (NS) | ₱14,420,531.08 | ₱0.00 | ₱0.00 | ₱14,420,531.08 |
| Notice of Disallowance (ND) | ₱306,031.89 | ₱0.00 | ₱0.00 | ₱306,031.89 |
| Notice of Charge (NC) | ₱0.00 | ₱0.00 | ₱0.00 | ₱0.00 |
| TOTAL | ₱14,726,562.97 | ₱0.00 | ₱0.00 | ₱14,726,562.97 |
Source and verification reference: Executive Summary, Summary of Audit Suspensions, Disallowances and Charges, p. 15; Part II - Summary of Audit Suspensions, Disallowances and Charges, p. 97.
Status of Implementation of Prior Years’ Recommendations (SIPYAR)
Of the 48 audit recommendations embodied in the CY 2022 and prior years’ Annual Audit Reports:
- Fully Implemented: 16 recommendations (33.33%)
- Partially Implemented: 0 recommendations (0.00%)
- Not Implemented / Not Acted Upon: 32 recommendations (66.67%)
Source and verification reference: Executive Summary, Status of Implementation of Prior Years’ Unimplemented Audit Recommendations, p. 15; Part III - Status of Implementation of Prior Years’ Audit Recommendations, pp. 98-111.