Observations and recommendations
Audit findings 2023
Review all 11 audit observations for CY 2023: 6 financial findings and 5 performance and compliance findings. Each includes its regulatory basis and recommendations.
Bases for qualified opinion
- 1Accuracy of Cash in Bank, Local Currency Current Account cannot be ascertained₱532,437.81The accuracy of the Cash in Bank, Local Currency Current Account balance of ₱222,979,149.84 cannot be ascertained due to non-preparation of monthly Bank Reconciliation Statements, resulting in its understatement amounting to ₱532,437.81 owing to the unadjusted recording of cancelled checks.
- 2Deficiencies in the accounting for Property, Plant and Equipment₱622,563,261.85Deficiencies were observed in the accounting of the reported balance of Property, Plant and Equipment (PPE) account totaling ₱622,563,261.85 (excluding the Construction In Progress Account) as at December 31, 2023, such as a variance of ₱620,948,128.99 between the Report on the Physical Count of the Property, Plant and Equipment (RPCPPE) and the accounting records, and non-provision of depreciation for some PPE accounts.
- 3Completed projects and equipment recorded as PPE in the Trust Fund not transferred to the General Fund₱58,796,474.24Completed projects and various equipment recorded as Property, Plant and Equipment in the Trust Fund totaling ₱58,796,474.24 were not transferred to the General Fund and were not depreciated.
- 4Eighteen (18) completed projects not reclassified from Construction in Progress₱53,943,142.70Eighteen (18) completed projects totaling ₱53,943,142.70 were not reclassified from Construction in Progress (CIP) account to the appropriate asset account, thus overstating the CIP by ₱53,943,142.70 and understating the corresponding asset account and Depreciation Expense account by ₱53,943,142.70 and ₱799,290.24, respectively.
Findings and recommendations
4 of the 11 observations are editorially linked to related recommendations in earlier audit reports. These links do not imply that COA assigned one status to each current finding.
Reference amount: ₱532,437.81
| Fund | Balance per Books |
|---|---|
| general Fund | ₱182,553,527.00 |
| sef Fund | ₱1,197,659.20 |
| trust Fund | ₱38,999,229.04 |
| CIB-LCCA Balance per Books | ₱222,750,415.24 |
The municipality maintains 12 bank accounts with a combined balance of ₱227,794,295.91, or ₱5,043,880.67 more than the financial statements balance. 30 cancelled checks totaling ₱532,437.81 were not reverted to the CIB-LCCA account.
| Account | Direction | Amount |
|---|---|---|
| cash in bank | Understated | ₱532,437.81 |
| accounts payable | Overstated | ₱329,621.96 |
| donations | Overstated | ₱33,875.00 |
| office supplies expense | Overstated | ₱102,692.69 |
| insurance expense | Overstated | ₱5,600.00 |
| prepaid insurance | Overstated | ₱1,828.91 |
| other general expenses | Overstated | ₱4,000.00 |
| other mooe | Overstated | ₱10,410.72 |
| membership dues and contributions to organizations | Overstated | ₱30,000.00 |
| advances for payroll | Overstated | ₱14,408.53 |
| Date | Check No. | Account Affected | Amount |
|---|---|---|---|
| 01/16/2023 | 1314645 | Accounts Payable | ₱3,000.00 |
| Not reported | 1314742 | Donations | ₱2,500.00 |
| 02/03/2023 | 1315015 | Accounts Payable | ₱326,621.96 |
| 04/03/2023 | 1356828 | Office Supplies Expenses | ₱3,625.40 |
| 04/03/2023 | 1356844 | Donations | ₱2,000.00 |
| 04/11/2023 | 1356919 | Office Supplies Expenses | ₱3,625.40 |
| 04/14/2023 | 1356990 | Office Supplies Expenses | ₱36,254.00 |
| 04/17/2023 | 1357011 | Office Supplies Expenses | ₱6,772.40 |
| 04/17/2023 | 1357018 | Office Supplies Expenses | ₱7,892.75 |
| 04/17/2023 | 1357020 | Office Supplies Expenses | ₱21,467.40 |
| 04/25/2023 | 1357087 | Insurance Expenses | ₱5,005.00 |
| 04/25/2023 | 1357100 | Donations | ₱9,375.00 |
| 05/03/2023 | 1357178 | Office Supplies Expenses | ₱6,179.74 |
| 05/15/2023 | 1357353 | Donations | ₱3,000.00 |
| 05/23/2023 | 1357426 | Other General Services | ₱4,000.00 |
| 05/24/2023 | 1357454 | Office Supplies Expenses | ₱9,200.00 |
| 06/02/2023 | 1357538 | Donations | ₱2,000.00 |
| 06/14/2023 | 1357609 | Donations | ₱1,500.00 |
| 06/14/2023 | 1357613 | Donations | ₱1,500.00 |
| 06/16/2023 | 1357649 | Donations | ₱2,000.00 |
| 06/16/2023 | 1357676 | Other MOOE | ₱10,410.72 |
| 07/14/2023 | 1357948 | Donations | ₱2,000.00 |
| 07/14/2023 | 1357966 | Donations | ₱3,000.00 |
| 07/14/2023 | 1357975 | Membership Dues and Contributions to Organizations | ₱30,000.00 |
| Not reported | 1358073 | Office Supplies Expenses | ₱6,656.40 |
| 07/25/2023 | 1358092 | Donations | ₱5,000.00 |
| 07/25/2023 | 1358113 | Office Supplies Expenses | ₱1,019.20 |
| 08/02/2023 | 1358196 | Insurance Expenses | ₱595.00 |
| 08/22/2023 | 1358325 | Prepaid Insurance | ₱1,828.91 |
| 08/31/2023 | 1358496 | Advances for Payroll | ₱14,408.53 |
| Total (30 cancelled checks) | ₱532,437.81 | ||
Related prior recommendations
- AAR CY 2019-2Not implemented
- 2021-9Implemented
The badges summarize the referenced Part III rows. Mixed action-level statuses may be condensed editorially at the row level.
Regulatory basis
- Section 74 and 111, P.D. No. 1445
- COA Circular No. 96-011 dated October 2, 1996
Recommendation
LCE to require the Municipal Accountant to revert cancelled check disbursements to the CIB-LCCA and regularly prepare monthly Bank Reconciliation Statements
Reference amount: ₱622,563,261.85
Of the ₱622,563,261.85 reported PPE balance, a variance of ₱620,948,128.99 existed between the Report on the Physical Count of PPE (RPCPPE, totaling ₱1,615,132.86) and the accounting records. Depreciation was not provided on ₱31,028,905.38 of depreciable PPE, with accumulated depreciation understated by ₱57,925.47.
| Account | Cost | Accumulated Depreciation | Book Value |
|---|---|---|---|
| Agricultural and Forestry Equipment | ₱17,801,279.51 | -₱10,270,595.82 | ₱7,530,683.69 |
| Medical Equipment | ₱1,125,246.41 | -₱576,929.38 | ₱548,317.03 |
| Other Machinery & EquipmentIncludes P393,300.00 for CCTV purchased on Dec. 22, 2023 | ₱623,583.35 | -₱157,012.50 | ₱466,570.85 |
| Motor VehiclesIncludes P3,975,000.00 for Dump truck purchased on Sept 4, 2023 | ₱34,691,000.09 | -₱12,207,666.28 | ₱22,483,333.81 |
| TOTAL | Not reported | Not reported | ₱31,028,905.38 |
| Total | Not reported | Not reported | ₱31,028,905.38 |
| Account | Per Books | Per Audit | Understatement |
|---|---|---|---|
| Information, Communication and Technology Equipment | ₱73,136.86 | ₱75,152.58 | -₱2,015.72 |
| Office Equipment | ₱2,603.01 | ₱23,747.48 | -₱21,144.47 |
| Other Structures | ₱6,339.52 | ₱7,668.74 | -₱1,329.22 |
| Other Machinery and Equipment | ₱0.00 | ₱0.00 | ₱0.00 |
| DRR Equipment | ₱7,243.74 | ₱6,862.50 | ₱381.24 |
| Motor Vehicle | ₱128,758.92 | ₱162,642.86 | -₱33,883.94 |
| Furniture and Fixtures | ₱1,265.88 | ₱1,199.25 | ₱66.63 |
| TOTAL | ₱219,347.93 | ₱277,273.40 | -₱57,925.47 |
| Total | ₱438,695.86 | ₱554,546.81 | -₱115,850.95 |
Related prior recommendations
- AAR CY 2022-3Not implemented
- 2021-2Not implemented
The badges summarize the referenced Part III rows. Mixed action-level statuses may be condensed editorially at the row level.
Regulatory basis
- COA Circular No. 92-386 dated October 20, 1992
- COA Circular No. 2004-003 dated October 4, 2004
- COA Circular No. 2020-006 dated January 31, 2020
- IPSAS 17
Recommendation
Conduct complete physical count of all PPE and submit RPCPPE; reconcile RPCPPE with accounting records; provide depreciation for depreciable PPEs; create an Inventory Committee and implement the one-time cleansing of PPE accounts
Reference amount: ₱58,796,474.24
| Account | Amount |
|---|---|
| road networks | ₱20,142,904.81 |
| water supply systems | ₱6,229,230.60 |
| buildings | ₱2,787,071.71 |
| other structures | ₱2,767,370.50 |
| information communication technology equipment | ₱318,355.00 |
| agricultural and forestry equipment | ₱6,395,430.00 |
| communication equipment | ₱24,369.40 |
| motor vehicles | ₱9,749,161.25 |
| watercrafts | ₱399,500.00 |
| other property plant and equipment | ₱9,983,080.97 |
| Total | ₱58,796,474.24 |
Regulatory basis
- PPSAS No. 1
- IPSAS 17
- Section 104, 1(i), MNGAS for LGUs, Volume I
Recommendation
Prepare adjusting entries to effect the transfer of PPEs from Trust Fund to General Fund and recognize the corresponding depreciation
Reference amount: ₱53,943,142.70
18 completed projects costing ₱53,943,142.70 were not reclassified from Construction in Progress to the appropriate asset accounts, overstating CIP and understating depreciation expense by ₱799,290.24. The CIP balance of ₱79,948,033.07 covered ₱42,181,125.79 of infrastructure assets and ₱37,766,907.28 of buildings and other structures.
Regulatory basis
- COA Circular No. 2015-009 dated December 1, 2015
- Philippine Application Guidance (PAG) to IPSAS 17
- IPSAS 1
Recommendation
Reclassify CIP to proper asset account titles and recognize depreciation on those assets
Reference amount: ₱11,618,096.44
Of the ₱68,000,000.00 LGSF-SBDP funds received for 27 projects in 17 barangays, ₱56,371,241.86 was disbursed and ₱11,618,096.44 remained undisbursed at year-end. 20 projects with an aggregate ABC of ₱48,120,000.00 were implemented without being included in the AIP/LDIP, ₱36,623.79 was paid as honoraria to the project monitoring committee, and 6 projects remained unfinished as of year-end.
| Barangay | Project | Allocated | Disbursements | Balance |
|---|---|---|---|---|
| Bulao | Construction of School Building (Daycare Center) at Brgy. Bulao Proper and Sitio Rizal | ₱4,000,000.00 | ₱3,984,014.86 | ₱15,985.14 |
| Cancaiyas | Opening and Concreting of FMR | ₱4,000,000.00 | ₱597,959.45 | ₱3,402,040.55 |
| Loog | Concreting of FMR | ₱4,000,000.00 | ₱3,983,201.74 | ₱16,798.26 |
| Manlilinab | Rural Electrification Project and Construction of Health Station (BHS) Building | ₱4,000,000.00 | ₱2,382,949.43 | ₱1,617,050.57 |
| Cogon | Construction of School Building (Daycare Center) at Sitio Guinpungdan and Rural Electrification | ₱4,000,000.00 | ₱1,886,340.85 | ₱2,113,659.15 |
| Guirang | Construction of School Building (Daycare Center) at Sitio Wespal and Sitio Bagong Silang | ₱4,000,000.00 | ₱3,990,771.47 | ₱9,228.53 |
| Inuntan | Concreting of FMR | ₱4,000,000.00 | ₱3,988,438.26 | ₱8,878.65 |
| Old San Agustin | Solar Electrification Project at Sitio Manilaay proper to Sitio Rono and Construction of School Building at Sitio Rono | ₱4,000,000.00 | ₱1,979,578.29 | ₱2,021,051.13 |
| Balante | Concreting of FMR | ₱4,000,000.00 | ₱3,988,430.01 | ₱7,097.86 |
| Burgos | Construction of Health Station | ₱4,000,000.00 | ₱1,374,006.62 | ₱625,839.40 |
| Burgos | Provision on Renewable Energy-Based Electrification | ₱4,000,000.00 | ₱4,344,679.06 | ₱1,659,432.02 |
| Guintiguian | Upgrading of FMR | ₱4,000,000.00 | ₱3,984,171.00 | ₱15,843.61 |
| May-it | Upgrading of FMR | ₱4,000,000.00 | ₱3,985,156.30 | ₱10,010.04 |
| Pelit | Construction of Day Care Center and Construction of Health Center | ₱4,000,000.00 | ₱3,987,364.39 | ₱8,629.19 |
| San Fernando | Solar Electrification Project and Rehabilitation/Improvement of Health Station | ₱4,000,000.00 | ₱3,954,174.10 | ₱40,971.76 |
| Sawa | Construction of School Building | ₱2,000,000.00 | ₱1,987,166.63 | ₱10,839.50 |
| Sawa | Civil works for the Solar Electrification Project | ₱2,000,000.00 | ₱1,992,061.71 | ₱7,945.65 |
| Villa Aurora | Construction of Level II Potable Water Supply System | ₱4,000,000.00 | ₱3,980,777.69 | ₱15,285.36 |
| Mabini | Concreting of FMR at Sitio Bagte | ₱0.00 | ₱0.00 | ₱11,510.07 |
| Total | ₱68,000,000.00 | ₱56,371,241.86 | ₱11,618,096.44 | |
| Barangay | Project | ABC |
|---|---|---|
| Bulao | Construction of School Building (Daycare Center) at Brgy. Bulao Proper | ₱2,005,000.00 |
| Bulao | Construction of School Building (Daycare Center) at Sitio Rizal | ₱2,005,000.00 |
| Loog | Concreting of FMR | ₱4,010,000.00 |
| Manlilinab | Rural Electrification Project | ₱2,005,000.00 |
| Manlilinab | Construction of Health Station (BHS) Building | ₱2,005,000.00 |
| Cogon | Construction of School Building (Daycare Center) at Sitio Guinpungdan | ₱2,005,000.00 |
| Cogon | Rural Electrification at Sitio Guinpungdan | ₱2,005,000.00 |
| Guirang | Construction of School Building (Daycare Center) at Sitio Wespal | ₱2,005,000.00 |
| Guirang | Construction of School Building (Daycare Center) at Sitio Bagong Silang | ₱2,005,000.00 |
| Old San Agustin | Construction of School Building at Sitio Rono | ₱2,005,000.00 |
| Balante | Concreting of FMR | ₱4,010,000.00 |
| Burgos | Provision on Renewable Energy-Based Electrification | ₱2,005,000.00 |
| Guintiguian | Upgrading of FMR | ₱4,010,000.00 |
| May-it | Upgrading of FMR | ₱4,010,000.00 |
| Pelit | Construction of Day Care Center | ₱2,005,000.00 |
| Pelit | Construction of Health Center | ₱2,005,000.00 |
| Sawa | Construction of School Building | ₱2,005,000.00 |
| Sawa | Construction of School Building | ₱2,005,000.00 |
| Villa Aurora | Construction of Level II Potable Water Supply System | ₱2,005,000.00 |
| Villa Aurora | Construction of Health Center | ₱2,005,000.00 |
| Total ABC (20 projects) | ₱48,120,000.00 | |
Regulatory basis
- DBM Local Budget Circular No. 144
- Section 301, P.D. No. 1096 (National Building Code)
Recommendation
Process transfer of title of properties to Barangay/Municipality; secure building permits; remit undisbursed balance to National Treasury; stop payment of SBDP fund for honoraria and require refund
Reference amount: ₱57,836,529.80
Of 55 planned 20% Development Fund PPAs, 43 were completed, 7 were ongoing, and 5 were unimplemented. Of the 37 perfected contracts totaling ₱163,555,770.22, 24 were submitted late (delays of 130 to 270 working days, averaging 223.05 working days) and 13 were not submitted at all. Current and continuing appropriations of ₱7,800,000.00 and ₱18,318,250.34 remained unimplemented, utilization exceeded appropriations by ₱1,388,245.36, and ₱446,777.95 of ineligible expenses were charged to the fund.
| Project | Contractor | Contract Price | Execution Date | Submitted to COA | Days Delayed |
|---|---|---|---|---|---|
| Civil Works for the Upgrading of Farm to Market Road at Brgy. May-it | EMT Construction and Supplies | ₱3,995,144.16 | 15-Feb-23 | 14-Feb-24 | 268 |
| Civil Works for the Construction of School Building (Day Care Center) at So. Rizal and Bulao Proper | EMT Construction and Supplies | ₱3,993,999.88 | 15-Feb-23 | 14-Feb-24 | 268 |
| Rural Electrification Project at So. Guinpongdoan & So. Cambabang and Construction of School Building at So. Guinpongdoan, Brgy. Cogon | JFR Construction Inc. | ₱3,990,285.86 | 16-Aug-23 | 14-Feb-24 | 130 |
| Civil Works for the Construction of Health Station (BHS) Building at Brgy. Burgos | Alpahawk Construction Corporation | ₱1,994,703.73 | 15-Feb-23 | 14-Feb-24 | 268 |
| Rural Electrification Project and Construction of Health Station (BHS) Building at Brgy. Manlilinab | H.A.H. REVERIE Construction Corporation | ₱3,993,256.13 | 08-Feb-23 | 14-Feb-24 | 265 |
| Civil Works for the Construction of School Building (Day Care Center) and Construction of Health Center at Brgy. Pelit | M. B. Pacuri Construction | ₱3,997,357.78 | 15-Feb-23 | 14-Feb-24 | 268 |
| Civil Works for the Concreting of Farm to Market Road at Brgy. Inuntan | PYUKEI Construction Inc. | ₱3,998,434.55 | 25-Jan-23 | 14-Dec-23 | 221 |
| Rural Electrification Project at So. Manilaay-Proper & So. Rono, and Construction of School Building at So. Rono, Brgy. Old San Agustin | Alpahawk Construction Corporation | ₱3,992,842.07 | 15-Feb-23 | 14-Dec-23 | 216 |
| Civil Works for the Concreting of Farm to Market Road at Brgy. Balante | JANJOI Builders and Supply | ₱3,998,426.88 | 25-Jan-23 | 14-Dec-23 | 231 |
| Civil Works for the Construction of Solar Electrification Project and Rehabilitation/Improvement of Health Station at Brgy. San Fernando | H.A.H. REVERIE Construction Corporation | ₱3,964,084.31 | 08-Feb-23 | 14-Dec-23 | 221 |
| Civil Works for the Opening with Concreting of Farm to Market Road at Brgy. Cancaiyas | SILK AND STEEL Construction | ₱3,996,387.22 | 25-Feb-23 | 14-Dec-23 | 208 |
| Civil Works for the Concreting of Farm to Market Road at Brgy. Loog | M. B. PACURI Construction | ₱3,993,184.70 | 25-Jan-23 | 14-Dec-23 | 240 |
| Civil Works for the Construction of School Building at Brgy. Sawa | JANJOI Builders and Supply | ₱1,992,147.00 | 25-Jan-23 | 14-Dec-23 | 240 |
| Civil Works for the Construction of School Building (Day Care Center) at So. Bagong Silang and So. Wespal, Brgy. Guirang | ZAS Construction and Supply | ₱4,000,773.40 | 15-Feb-23 | 14-Dec-23 | 216 |
| Civil Works for the Construction of Brgy. Health Station (BHS) & Construction of Level II Water System at Brgy. Villa Aurora | JANJOI Builders and Supply | ₱3,994,754.58 | 15-Feb-23 | 14-Dec-23 | 216 |
| Upgrading of FMR at Brgy. Guintigui-an | Alpahawk Construction Corporation | ₱3,994,156.39 | 15-Feb-23 | 28-Feb-24 | 270 |
| Civil Works for the Barangay Wide Development Projects (Batch 1) of CY 2023 | EMT Construction and Supplies | ₱4,759,201.17 | No contract submitted | 28-Feb-24 | Not reported |
| Civil Works for the Barangay Wide Development Projects (Batch 2) of CY 2023 | JFR Construction Inc. | ₱9,237,878.61 | 27-Apr-23 | 28-Feb-24 | 219 |
| Civil Works for the Barangay Wide Development Projects (Batch 3) of CY 2023 | PYUKEI Construction Inc. | ₱4,440,771.85 | 11-May-23 | 28-Feb-24 | 209 |
| Civil Works for the Barangay Wide Development Projects (Batch 4) of CY 2023 | JANJOI Builders and Supply | ₱5,961,967.20 | No contract submitted | 28-Feb-24 | Not reported |
| Civil Works for the Barangay Wide Development Projects (Batch 5) of CY 2023 | SILK AND STEEL Construction | ₱3,353,508.76 | 11-May-23 | 28-Feb-24 | 209 |
| Civil Works for the Barangay Wide Development Projects (Batch 6) of CY 2023 | EMT Construction and Supplies | ₱3,359,654.40 | 11-May-23 | 29-Feb-24 | 210 |
| Civil Works for the Barangay Wide Development Projects (Batch 7) of CY 2023 | H.A.H. REVERIE Construction Corporation | ₱4,440,562.69 | 19-Jul-23 | 29-Feb-24 | 157 |
| Civil Works for the Barangay Wide Development Projects (Batch 8) of CY 2023 | H.A.H. REVERIE Construction Corporation | ₱3,357,064.97 | 19-Jul-23 | 29-Feb-24 | 157 |
| No. | Project | Contractor | Amount |
|---|---|---|---|
| 1 | Civil Works for the Barangay Wide Development Projects (Batch 15) of CY 2022 | ZAS Construction and Supply | ₱5,000,000.00 |
| 2 | Civil Works for the Barangay Wide Development Projects (Batch 9) of CY 2023 | EMT Construction and Supplies | ₱3,550,000.00 |
| 3 | Civil Works for the Barangay Wide Development Projects (Batch 10) of CY 2023 | JFR Construction Inc. | ₱3,400,000.00 |
| 4 | Civil Works for the Barangay Wide Development Projects (Batch 11) of CY 2023 | JANJOI Builders and Supply | ₱6,000,000.00 |
| 5 | Civil Works for the Barangay Wide Development Projects (Batch 12) of CY 2023 | H.A.H Reverie Construction Corporation | ₱4,000,000.00 |
| 6 | Civil Works for the Barangay Wide Development Projects (Batch 13) of CY 2023 | Pyukei Construction Inc. | ₱9,500,000.00 |
| 7 | Civil Works for the Barangay Wide Development Projects (Batch 14) of CY 2023 | JANJOI Builders and Supply | ₱3,020,000.00 |
| 8 | Civil Works for the Installation of Roofing at Basey Municipal New Town Hall | H.A.H Reverie Construction Corporation | ₱2,285,221.93 |
| 9 | Road reblocking of Municipal Roads at Poblacion, Basey Samar | H.A.H Reverie Construction Corporation | ₱10,000,000.00 |
| 10 | Installation of Streetlights (Continuation) from Brgy. Can-abay to Brgy. Magallanes Basey Samar | SILK AND STEEL Construction | ₱10,000,000.00 |
| 11 | Concreting of Farm to Market Roads at So. Bagte, Brgy. Mabini | SILK AND STEEL Construction | ₱4,000,000.00 |
| 12 | Provision Renewable Energy-Based Electrification at Brgy. Burgos | SILK AND STEEL Construction | ₱2,000,000.00 |
| 13 | Solar Electrification at So. Manilaay to So. Rono, Brgy. Sawa | JANJOI Builders and Supply | ₱2,000,000.00 |
| Total (13 unsubmitted contracts) | ₱64,755,221.93 | ||
| No. | Unimplemented PPA (Current Appropriations) | ABC |
|---|---|---|
| 1 | Construction/ Improvement/ Maintenance of all government buildings, facilities and utilities including construction of Justice Building/ Construction of/ Establishment of Youth Center | ₱1,300,000.00 |
| 2 | Establishment and its extension of COVID-19 and other emerging diseases vaccination and Isolation Center | ₱1,500,000.00 |
| 3 | Purchase of lot for government office/ buildings and other facilities | ₱2,500,000.00 |
| 4 | Construction of Tourism Information Center, floating cottages, concrete jump-off wharf area, comfort and dressing rooms and other facilities in all tourism sites | ₱1,000,000.00 |
| 5 | Purchase of post-harvest facilities and/or farm inputs/ implements | ₱1,500,000.00 |
| Total unimplemented current appropriations | ₱7,800,000.00 | |
| No. | Year | Unimplemented Project (Continuing Appropriations) | Amount |
|---|---|---|---|
| 1 | 2021 | Purchase of Garbage Collection and Processing Equipment | ₱700,000.00 |
| 2 | 2021 | Tax Mapping | ₱300,000.00 |
| 3 | 2021 | Improvement of the Old Municipal Town Hall/ Municipal Library | ₱300,000.00 |
| 4 | 2021 | Salvacion to Poblacion Bridge (Phase 1) | ₱5,000,000.00 |
| 5 | 2021 | Purchase of Lot for Housing/relocation project | ₱1,000,000.00 |
| 6 | 2022 | Improvement of Brgy. Stage at Brgy. Amandayehan | ₱300,000.00 |
| 7 | 2022 | Tax Mapping | ₱500,000.00 |
| 8 | 2022 | Purchase of COVID-19 Supplies and Equipment | ₱1,000,000.00 |
| 9 | 2022 | Establishment of Isolation Facility for COVID-19 and other Pandemic | ₱1,700,000.00 |
| 10 | 2022 | Establishment/ Construction/ Improvement of Isolation Center | ₱2,018,250.34 |
| 11 | 2022 | Improvement of Basey Ecological Park/ Sanitary Landfill | ₱4,500,000.00 |
| 12 | 2022 | Establishment of DRRM- CCA Database/ Data Banking/ CBMS | ₱800,000.00 |
| 13 | 2022 | Retooled Community Support Program | ₱200,000.00 |
| Total unimplemented continuing appropriations | ₱18,318,250.34 | ||
Related prior recommendations
- 2021-6Not implemented
- AAR CY 2022-6Implemented
The badges summarize the referenced Part III rows. Mixed action-level statuses may be condensed editorially at the row level.
Regulatory basis
- COA Circular No. 2009-001 dated February 12, 2009
- Section 3.2, DBM-DOF-DILG JMC No. 1 dated November 4, 2020
Recommendation
Submit contracts within five working days of perfection; expedite procurement and implementation; stop charging ineligible expenses to the 20% development fund
Reference amount: ₱1,000,000.00
Livelihood assistance of ₱20,000.00 each was distributed to 50 associations without the complete documentation required by COA Circular No. 2007-001.
Regulatory basis
- P.D. No. 1445
- COA Circular No. 2007-001 dated October 25, 2007
- Section 4.0, DBM-DOF-DILG JMC No. 1 dated November 4, 2020
Recommendation
Refrain from distributing financial assistance to associations without proper documentation provided in COA Circular No. 2007-001
Reference amount: ₱650,000.00
The purchase of the lot for the public cemetery at Brgy. Guirang, with an appropriation of ₱500,000.00 and a net amount paid of ₱601,250.00 on December 1, 2023, was disbursed without complete supporting documents, so the title was not yet transferred to the municipality.
Payee name redacted for privacy. See the official COA report for authoritative records.
Regulatory basis
- P.D. No. 1445
- COA Circular No. 2012-001 dated June 14, 2012
- Section 4.0, DBM-DOF-DILG JMC No. 1 dated November 4, 2020
Recommendation
Exercise diligence in ensuring 20% Development Fund utilization complies with documentary requirements; expedite transfer of title of the lot to the Municipality
Reference amount: ₱31,956,847.19
| Particulars | Note 26 | Part II | MBO Report |
|---|---|---|---|
| Total Available | ₱31,919,347.19 | ₱31,956,847.19 | Not reported |
| Total Utilized | ₱10,309,464.03 | ₱10,340,771.31 | ₱10,628,681.98 |
Of the CY 2023 appropriation of ₱14,909,132.45 (QRF ₱4,472,739.74 and Mitigation Fund ₱10,436,392.72), QRF utilization was ₱2,769,055.00 and Mitigation Fund utilization was ₱7,584,269.03. Personal services of ₱2,050,000.00 were charged to the fund, ₱289,880.00 of non-disaster related expenditures were charged, and the unexpended balance of ₱2,992,433.67 was not transferred to the Special Trust Fund. The Municipal Accountant’s report varied from the MBO by ₱287,910.67.
Related prior recommendations
- AAR CY 2022-12Partially implemented
The badges summarize the referenced Part III rows. Mixed action-level statuses may be condensed editorially at the row level.
Regulatory basis
- COA Circular No. 2012-002 dated September 12, 2012
- COA Circular No. 2014-002 dated April 15, 2014
Recommendation
Refrain from appropriating and charging Personal Services in the LDRRM Fund; utilize LDRRMF per approved LDRRMFIP; reconcile accounting records with the Budget Office; maintain separate RAAOs; transfer unexpended balances to the Special Trust Fund
Reference amount: ₱3,655,373.56
| Particulars | GSIS | PhilHealth | Pag-IBIG | GOCCs |
|---|---|---|---|---|
| Beginning Balance | ₱1,600,707.78 | ₱49,014.55 | ₱574,808.74 | ₱2,048,428.27 |
| Amount Withheld | ₱19,283,329.32 | ₱2,227,078.03 | ₱1,895,035.80 | ₱1,690,060.98 |
| Amount Remitted (CY) | ₱18,164,091.45 | ₱2,198,666.34 | ₱1,753,810.90 | ₱1,776,292.48 |
| Amount Remitted (Prior Year) | ₱703,038.28 | ₱198,488.76 | ₱160,133.51 | ₱758,568.19 |
| Under (Over) Remittance | ₱416,199.59 | -₱170,077.07 | -₱18,908.61 | -₱844,799.69 |
| Ending Balance | ₱2,016,907.37 | -₱121,062.52 | ₱555,900.13 | ₱1,203,628.58 |
Combined deductions totaled ₱25,095,504.13 against remittances of ₱25,713,089.91, a net over-remittance of -₱617,585.78. Including the prior year balance of ₱4,272,959.34, the unremitted balance at year-end was ₱3,655,373.56.
Regulatory basis
- Section 69(1), P.D. No. 1445
- Section 36, COA Circular No. 92-382 dated July 3, 1992
- IPSAS 1
Recommendation
Reconcile discrepancies between amounts withheld and remitted; reconcile prior years' outstanding balances; remit immediately the reconciled balance of Due to GSIS, PhilHealth, Pag-IBIG and GOCC accounts
Reference amount: ₱68,651.28
Withholding taxes of ₱18,773,283.54 were collected in CY 2023, of which ₱18,749,168.78 was remitted for the year and ₱585,353.11 for prior years. Unremitted balances were ₱24,114.76 for CY 2023 and ₱44,536.52 for prior years, totaling ₱68,651.28.
Regulatory basis
- Section 69, P.D. No. 1445
- BIR Revenue Regulations No. 2-98 dated April 17, 1998
Recommendation
Strictly adhere to Section 69 of P.D. No. 1445 and BIR Revenue Regulations No. 2-98 by remitting on time the fund due to BIR
Prior years’ audit recommendations
| Category | Value |
|---|---|
| Implemented | 16 |
| Not Acted Upon | 32 |
Coverage: CY 2022, CY 2021, CY 2020, CY 2019, CY 2018, CY 2017.
| Reference | Audit Observation | Status | Reason for Partial / Non-Implementation |
|---|---|---|---|
| AAR CY 2022-1 | Turn-over of collections by Revenue Collectors to the Liquidating Officer were delayed by 1 to 66 days. | Implemented | Not reported |
| AAR CY 2022-2 | CY 2022 cash advances amounting to ₱30,858,597.81 were not supported with complete documentation. | Not implemented | Not reported |
| AAR CY 2022-3 | PPE balance of ₱495,919,128.20 remained unreliable: ₱2,923,450.14 recorded as PPE despite not meeting the ₱50,000.00 capitalization threshold, over-depreciation of ₱2,007,370.96, and PPE Ledger Cards and Property Cards not maintained. | Not implemented | Not reported |
| AAR CY 2022-4 | Accuracy, validity and propriety of the year-end Accounts Payable balance in the General Fund (₱18,649,407.81) could not be ascertained. | Not implemented | Not reported |
| AAR CY 2022-5 | Drugs and Medicines and Medical, Dental and Laboratory Supplies procured during the year (amounting to ₱5,484,090.35) recorded as expense outright instead of recognizing the corresponding inventory account. | Not implemented | Not reported |
| AAR CY 2022-6 | The current appropriation of ₱18,700,000.00 and continuing appropriation of ₱12,800,000.00 of the 20% Development Fund were not optimally utilized and remained unimplemented. | Implemented | Not reported |
| AAR CY 2022-7 | Payment for vaccination ancillary supplies totaling ₱411,400.00 lacks supporting documents; purchases amounting to ₱502,945.00 were charged outright as expense instead of inventory. | Not implemented | Not reported |
| AAR CY 2022-8 | Fund transfers totaling ₱98,603,855.00 from various National Government Agencies could not be validated due to lack of Memorandum of Agreement or Trust Agreement. | Implemented | Not reported |
| AAR CY 2022-9 | Funds for the Construction of Rice Processing Center I (CY 2015) were retained by the DA Regional Office VIII for almost seven years; the project remained unfinished as of December 31, 2022. | Implemented | Not reported |
| AAR CY 2022-10 | Failure to set up receivables for Real Property Tax and Special Education Tax for CY 2022, understating RPT and SET receivable accounts by ₱8,097,681.20, and weak RPT collections. | Partially implemented | Not reported |
| AAR CY 2022-11 | Payments to 967 job order personnel amounting to ₱44,445,381.66 were not supported with certification and individual job order contracts. | Not implemented | Not reported |
| AAR CY 2022-12 | Deficiencies in the utilization and reporting of LDRRMF: prior years' unexpended balance of ₱15,448,793.83 excluded from the CY 2022 LDRRMFIP; ₱15,261,732.76 not transferred to the Special Trust Fund; non-observance of accounting and reporting guidelines. | Partially implemented | Reiterated in this report. Monthly Report of Sources and Utilization of DRRMF not prepared and submitted to COA. |
| 2021-2 | PPE balance of ₱505,269,491.23 remained unreliable: ₱1,468,078.50 recorded as PPE despite not meeting the ₱15,000.00 capitalization threshold; one-time cleansing of PPE accounts not availed. | Not implemented | Not reported |
| 2021-4 | Notes to Financial Statements for CY 2021 did not extensively disclose relevant information; reconciliation statements and supporting schedules were not submitted. | Not implemented | Insufficient disclosure on the Notes to Financial Statements, lacking supporting schedules on the Notes to FS. |
| 2021-5 | Deficiencies in PPA implementation and reporting: incomplete list of on-going PPAs, non-posting of project billboards, and non-integration of the Construction Safety and Health Program in the ABC and POW. | Implemented | Not reported |
| 2021-6 | Propriety of the bidding process could not be ascertained due to deficiencies in the bidding process and non-submission of relevant documents and perfected contracts within five working days. | Not implemented | Reiterated in this report. |
| 2021-7 | Validity and propriety of disbursements totaling ₱5,522,838.00 under the Assistance to Individuals in Crisis Situation (AICS) Program could not be ascertained due to absence of policies and guidelines. | Implemented | Not reported |
| 2021-8 | Propriety, regularity, legality, validity and accuracy of check disbursements totaling ₱9,440,598.86 could not be ascertained due to non-submission of required supporting documents. | Not implemented | Not reported |
| 2021-9 | Accuracy and propriety of recorded check disbursements totaling ₱9,732,784.87 could not be ascertained due to non-submission of 163 Disbursement Vouchers and 18 cancelled checks. | Implemented | Not reported |
| AAR CY 2020-1 / 2016-2 / 2014-2 | Inventory balances totaling ₱24,266,001.99 unreliable due to erroneous recording of procured goods and non-preparation of RIS and RSMIs. | Not implemented | Not reported |
| AAR CY 2020-3 | Deficiencies in the utilization and recording of the Bayanihan Grant to Cities and Municipalities (BGCM); compliance with procedural guidelines could not be validated. | Not implemented | Not reported |
| AAR CY 2020-6 | Non-compliance with the procedural, documentary and posting requirements for emergency procurement under the Bayanihan Act, resulting in incomplete documentation. | Not implemented | Not reported |
| AAR CY 2019-1 | Validity and existence of the Road Networks balance of ₱215,107,469.27 could not be ascertained due to non-compliance with COA Circular No. 2015-008. | Not implemented | No Property Ledger Cards were presented by the Municipal Accountant. |
| AAR CY 2019-2 | Validity and accuracy of the combined CIB-LCCA balance of ₱188,861,271.96 could not be ascertained due to non-preparation and submission of Bank Reconciliation Statements for seven bank accounts. | Not implemented | Reiterated in this report. |
| AAR CY 2019 (RPT/SET) | Receivables for real property tax and special education tax were set up based on the estimated annual budget of ₱500,000.00 instead of the assessment roll; collection efforts not intensified. | Implemented | Not reported |
| AAR CY 2018-1 | Validity of the Due from Other Funds balance of ₱176,048,660.89 could not be ascertained: subsidiary ledgers not maintained, financial statements of InFRES I/II and ARCP II not submitted, and no disclosures in the Notes. | Not implemented | Subsidiary Ledgers are not yet submitted as of reporting date. |
| AAR CY 2017-1 | Validity and accuracy of assets and liabilities totaling ₱193,641,568.65 and ₱47,246,481.48, respectively, could not be ascertained due to absence of subsidiary ledgers, inadequate disclosures and improper recording of loan amortization. | Not implemented | Non-submission of subsidiary ledgers. |
Suspensions, disallowances, and charges
| Particulars | Balance Jan 1, 2023 | Balance Dec 31, 2023 |
|---|---|---|
| Notice of Suspension | ₱14,420,531.08 | ₱14,420,531.08 |
| Notice of Disallowance | ₱306,031.89 | ₱306,031.89 |
| Notice of Charge | ₱0.00 | ₱0.00 |
| Total | ₱14,726,562.97 | ₱14,726,562.97 |
No notices were issued in CY 2023. No new Notices of Suspension, Disallowance or Charge were issued during CY 2023; balances pertain to prior years' issuances.
Remittance schedules
| Mandatory Deductions (GSIS, PhilHealth, Pag-IBIG, GOCCs) | Amount |
|---|---|
| Prior Year Balance | ₱4,272,959.34 |
| Total Deductions (Withheld) | ₱25,095,504.13 |
| Total Remittances | ₱25,713,089.91 |
| Under (Over) Remittance | -₱617,585.78 |
| Ending Balance (Unremitted) | ₱3,655,373.56 |
| BIR Withholding Taxes | Amount |
|---|---|
| Beginning Balance | ₱629,889.63 |
| Total Deductions (Withheld) | ₱18,773,283.54 |
| Total Remittances (CY) | ₱18,749,168.78 |
| Total Remittances (Prior Year) | ₱585,353.11 |
| Ending Balance (Unremitted) | ₱68,651.28 |
| GSIS premium: monthly remittances (Appendix K) | Deductions | Remittances | Under (Over) Remittance | Balance | |
|---|---|---|---|---|---|
| January | ₱1,642,291.25 | ₱1,542,890.45 | ₱99,400.80 | ₱1,700,108.58 | |
| February | ₱1,596,265.93 | ₱0.00 | ₱1,596,265.93 | ₱3,296,374.51 | |
| March | ₱1,565,711.22 | ₱1,520,862.68 | ₱44,848.54 | ₱3,341,223.05 | |
| April | ₱1,576,328.66 | ₱2,937,137.12 | -₱1,360,808.46 | ₱1,980,414.59 | |
| May | ₱1,668,741.52 | ₱2,557.40 | ₱1,666,184.12 | ₱3,646,598.71 | |
| June | ₱1,596,132.03 | ₱3,054,125.51 | -₱1,457,993.48 | ₱2,188,605.23 | |
| July | ₱1,617,669.42 | ₱1,641,431.01 | -₱23,761.59 | ₱2,164,843.63 | |
| August | ₱1,605,325.85 | ₱2,201,013.68 | -₱595,687.83 | ₱1,569,155.80 | |
| September | ₱1,607,788.91 | ₱14,583.15 | ₱1,593,205.76 | ₱3,162,361.56 | |
| October | ₱1,595,284.48 | ₱3,003,346.87 | -₱1,408,062.39 | ₱1,754,299.17 | |
| November | ₱1,577,904.50 | ₱1,465,929.22 | ₱111,975.28 | ₱1,866,274.45 | |
| December | ₱1,633,885.56 | ₱1,483,252.64 | ₱150,632.92 | ₱2,016,907.37 | |
| PhilHealth premium: monthly remittances (Appendix K) | Deductions | Remittances | Under (Over) Remittance | Balance | |
|---|---|---|---|---|---|
| January | ₱181,545.52 | ₱176,004.08 | ₱5,541.44 | ₱54,555.99 | |
| February | ₱181,988.85 | ₱374,710.24 | -₱192,721.39 | -₱138,165.40 | |
| March | ₱178,231.54 | ₱0.00 | ₱178,231.54 | ₱40,066.14 | |
| April | ₱184,921.52 | ₱401,901.82 | -₱216,980.30 | -₱176,914.16 | |
| May | ₱190,088.70 | ₱180,393.20 | ₱9,695.50 | -₱167,218.66 | |
| June | ₱183,457.58 | ₱181,227.52 | ₱2,230.06 | -₱164,988.60 | |
| July | ₱189,745.33 | ₱180,495.36 | ₱9,249.97 | -₱155,738.63 | |
| August | ₱185,849.88 | ₱181,020.28 | ₱4,829.60 | -₱150,909.03 | |
| September | ₱186,087.46 | ₱181,940.80 | ₱4,146.66 | ₱146,762.37 | |
| October | ₱185,732.16 | ₱182,675.36 | ₱3,056.80 | ₱143,705.57 | |
| November | ₱183,592.04 | ₱0.00 | ₱183,592.04 | ₱39,886.47 | |
| December | ₱195,837.45 | ₱356,786.44 | -₱160,948.99 | ₱121,062.52 | |
| Pag-IBIG premium: monthly remittances (Appendix K) | Deductions | Remittances | Under (Over) Remittance | Balance | |
|---|---|---|---|---|---|
| January | ₱176,792.64 | ₱184,802.78 | -₱8,010.14 | ₱566,798.60 | |
| February | ₱179,952.49 | ₱154,723.37 | ₱25,229.12 | ₱592,027.72 | |
| March | ₱165,206.72 | ₱176,908.05 | -₱11,701.33 | ₱580,326.39 | |
| April | ₱154,592.84 | ₱188,575.99 | -₱33,983.15 | ₱546,343.24 | |
| May | ₱154,641.03 | ₱151,592.84 | ₱3,048.19 | ₱549,391.43 | |
| June | ₱153,977.77 | ₱258,080.26 | -₱104,102.49 | ₱445,288.94 | |
| July | ₱156,814.37 | ₱157,914.37 | -₱1,100.00 | ₱444,188.94 | |
| August | ₱149,244.18 | ₱53,538.54 | ₱95,705.64 | ₱539,894.58 | |
| September | ₱141,830.23 | ₱122,274.91 | ₱19,555.32 | ₱559,449.90 | |
| October | ₱148,818.92 | ₱138,830.23 | ₱9,988.69 | ₱569,438.59 | |
| November | ₱157,714.88 | ₱146,818.92 | ₱10,895.96 | ₱580,334.55 | |
| December | ₱155,449.73 | ₱179,884.15 | -₱24,434.42 | ₱555,900.13 | |
| Employees’ loan (due to GOCC): monthly remittances (Appendix K) | Deductions | Remittances | Under (Over) Remittance | Balance | |
|---|---|---|---|---|---|
| January | ₱246,215.74 | ₱234,498.16 | ₱11,717.58 | ₱2,060,145.85 | |
| February | ₱178,710.44 | ₱178,711.23 | -₱0.79 | ₱2,060,145.06 | |
| March | ₱166,326.85 | ₱0.00 | ₱166,326.85 | ₱2,226,471.91 | |
| April | ₱170,547.61 | ₱357,425.44 | ₱186,877.83 | ₱2,039,594.08 | |
| May | ₱165,872.95 | ₱169,987.46 | -₱4,114.51 | ₱2,035,479.57 | |
| June | ₱143,111.06 | ₱150,626.86 | -₱7,515.80 | ₱2,027,963.77 | |
| July | ₱102,165.84 | ₱887,821.03 | -₱785,655.19 | ₱1,242,308.58 | |
| August | ₱130,908.02 | ₱127,444.02 | ₱3,464.00 | ₱1,245,772.58 | |
| September | ₱121,346.46 | ₱124,382.46 | -₱3,036.00 | ₱1,242,736.58 | |
| October | ₱111,346.46 | ₱124,382.46 | -₱13,036.00 | ₱1,229,700.58 | |
| November | ₱60,293.12 | ₱0.00 | ₱60,293.12 | ₱1,289,993.70 | |
| December | ₱93,216.43 | ₱179,581.55 | -₱86,365.12 | ₱1,203,628.58 | |