STATUS OF IMPLEMENTATION OF PRIOR YEARS’ UNIMPLEMENTED

AUDIT RECOMMENDATIONS

Of the 11 recommendations embodied in the 2013 Annual Audit Report, one was
implemented, seven were not implemented and three were partially implemented as
shown below:

Status of
Audit Observations and Ref Management Implementation
Recommendations Action Reason for
Partial/Non-
Implementation
1. Collections were not AAR The Municipal Not Implemented.
deposited daily and intact 2013 Treasurer deposited
because of IOU’s and Obs. the collections daily The absence of proper
payments of emergency No.1 but it was not intact. preparation of the
expenses resulting in annual procurement
accumulation of cash on The Municipal plan of the
hand thus, unnecessarily Treasurer ensured municipality resulted
exposed the LGU funds to the recording of in paying various
loss, misuse and/or daily collections in emergency expenses
misappropriations contrary the Cashbook. out of daily
to COA Memorandum collections.
2013-004 dated July 9,
2013. Moreover, the Reiterated in
Municipal Treasurer’s Observation No. 1
failure to exercise due
diligence in recording
collections resulted in the
doubtful accuracy of
reported periodic cash
balances.

We recommended that the

Municipal Treasurer deposit
all her collections intact
daily or not later than the
next banking day with the
authorized government
depository bank to abide by
the regulation and to avoid
the risk of possible loss of
government money.

We also recommended that

the Municipal Treasurer

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record her collections daily
so as to reflect accurate
transactions and balances.

2. Due to lack of AAR Not Implemented.

manpower, the amount set 2013
up as receivables during the Obs. Absence of
year was estimated based on No.2 knowledgeable
the Assessor’s Report on personnel in the
Real Property Assessments Treasury Department
contrary to Section 20, who will maintain the
Volume I of the NGAS computerized records
Manual thus, rendering the of taxpayers. In
account balances of addition, the Treasury
P2,702,295.86 and Department has
P3,106,596.10 for Real continuously not
Property Tax (RPT) provided the certified
Receivable and Special List of Taxpayers and
Education Tax (SET) the amounts due and
Receivable, respectively, collectible as the basis
unreliable. of the Municipal
Accountant in setting
We recommended that up the RPT/SET
management comply with Receivable at the
Section 20 of the NGAS beginning of the year
Manual on the setting up of and the corresponding
Real Property Tax/Special subsidiary ledgers
Education Tax Receivable. were not maintained.
The Treasurer should
prepare the Certified List of Reiterated in
Taxpayers and submit it to Observation No. 2
the Accountant. Based on
this, the Accountant should
take up in the books, the
RPT/SET Receivable with
the corresponding
subsidiary ledgers (SL) that
will monitor tax collections
and delinquencies.

3. The present condition AAR Not Implemented.

and existence of the 2013
recorded property, plant and Obs. Absence of personnel
equipment with a net book No.3 who will maintain and
value of P119,308,972.77 monitor the
could not be determined due movements of PPE

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to the non-maintenance of items in subsidiary
property cards by the ledgers and property
Treasury Department and cards.
non-reconciliation of the The management still
property, plant and failed to create
equipment ledger cards by inventory team that
the Accounting Department will conduct annual
which is not conformity physical inventory of
with Sections 119, 120 and all PPE items.
124 of the New Government
Accounting System (NGAS) Reiterated in
for LGUs, Volume I. Thus, Observation No. 3
the account balances are
unreliable.

We recommended that
management create an
inventory committee that
will conduct yearly physical
inventory of the agency’s
properties; require the
Accountant and Treasurer to
maintain and reconcile the
ledger cards and property
cards; and issue the
Acknowledgement Receipts
for Equipment (ARE) every
time there is a transfer of
equipment from one
accountable officer to
another to prevent future
problems in pinpointing
accountability and
responsibility on the issued
equipment and to avoid
abuse or misuse of the same.

4. Common-use supplies AAR Partially

were not procured by the 2013 Implemented.
municipality from the Obs.
Procurement Services, No.4 The management
Department of Budget and purchased common
Management (PS-DBM) use supplies from PS
contrary to Section 53.5 of until the second
the Revised IRR of RA quarter of year 2014.
9184 because management Full compliance on the

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deemed it practical to recommendation
procure within the locality cannot be adhered due
thus, deprived them of to the minimal
savings. requirements of the
municipality, greater
We recommended that administrative costs
management procure that they may incur
common-use supplies and the quality of
directly from the PS-DBM delivered items were
in compliance with Section not advantageous to
53.5 of the Revised IRR of the municipal
RA 9184. government.

5. The regularity, AAR Not Implemented.

transparency and economy 2013
in the utilization of fuel Obs. Lack of personnel who
amounting to P2,071,688.97 No.5 will record and
for January to December monitor gasoline
2013 could not be consumptions. Also,
ascertained due to the the drivers of garbage
failure of management to truck were not
prepare Monthly Report of knowledgeable
Fuel Consumption of enough to accomplish
government motor the trip tickets.
transportation and/or duly
approved trip tickets in Reiterated in
violation of Section 361 of Observation No. 5
Government Accounting
and Auditing Manual
Volume I thereby, exposing
the Municipality’s funds to
wastage and excessive fuel
consumption.

We recommended that
management instruct the
accounting department to
require consumption report
and the Request Slip and
Issue Voucher duly
approved by the
Administrator or his
authorized representative to
support every
withdrawal/payment of fuel.

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6. For management AAR Partially Implemented.
nonawareness and 2013
nonobservant, Obs. The detailed report of
disbursements pertaining to No.6 issuances/distribution
procurements of drugs and and inventory report
medicines and other medical was not yet submitted.
supplies in the amount of Also, the documentary
P1.5 million were paid and requirements on
recorded despite procurement of drugs
deficiencies contrary to and medicines were
certain rules and regulations still incomplete.
and pertinent provisions of Notification of
the Revised Implementing deliveries was made to
Rules and Regulations of the audit team,
RA 9184 thus, rendered the however, it was not
existence and completeness made within 24 hours
of delivery uncertain. after acceptance.

We recommended that
management a) require the
department/officer in charge
of the receipt and
distribution to account in
full the procured items
through submission of
complete and detailed report
of issuances/distribution and
inventory report; b) direct
the Municipal Accountant to
account the procurements as
inventory and subsequently
take up in the books the
issuances based on the
supporting documents; c)
direct the BAC to faithfully
adhere to the pertinent
provisions of IRR of RA
9184; and d) comply with
the provisions of EO No. 49
as basis for procurement of
drugs and medicines.

We also recommended that

management require the
agency official responsible
for accepting deliveries of

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procured items to notify the
Auditor of the time and date
of the scheduled deliveries
within 24 hours from such
acceptance.

7. For the neglect of the AAR Partially Implemented.

Engineering Department, 2013
other documentary Obs. Result of Test
requirements such as No.7 Analysis were
Results of Test Analysis and attached to some
copy of Project Log Book infrastructure projects.
were not submitted by the However, Project
agency in the procurement Logbook was still not
of their Infrastructure attached to the
Projects contrary to Item disbursement
Nos. 2 and 3 of DPWH vouchers.
Department Order No. 216,
series of 2000 dated
November 16, 2000, and
Item No. 9.1.1 of COA
Circular No. 2012-001 dated
June 14, 2012 thereby,
casting doubt on the
regularity, propriety and
integrity of the transactions.

We recommended that
management require the
Municipal Engineer to
ensure that all payments for
procurement of
infrastructure projects bear
all the supporting
documents such as the
Results of Test Analysis and
Project Logbook as required
by DPWH D.O. No. 216
and COA Circular No.
2012-001.

8. Owing to lack of AAR Not Implemented.

monitoring and self- 2013
assessment, several Obs. Absence of technical
programs, activities and No.9 working group and
projects in the Gender and GAD focal point who

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Development (GAD) Plan will facilitate the
did not correlate with the development of GAD
expected outputs conflicting information for gender
with the purpose, policies analysis and review of
and guidelines enumerated sex disaggregated
in the PCW, NEDA and data, and the
DBM Joint Circular No. institutionalization of
2012-01 thus, gave no gender mainstreaming.
assurance that the GAD as
planned and implemented Reiterated in
during the year promoted Observation No. 6
gender-responsive
governance.

We recommended that
management determine the
Municipality’s compliance
on Joint Circular No. 2012-
01 of PCW, NEDA and
DBM specifically on the
utilization of funds
pertaining to at least five
percent of its total
appropriations. We also
recommended that
management monitor the
use of GAD funds for the
purpose for which they have
been appropriated to ensure
that performance indicator
achieve the expected outputs
and evaluate whether PPAs
undertaken by agency
appropriately addressed the
gender issues the agency.

9. Due to the absence of a AAR Not Implemented

Municipal Solid Waste 2013
Management Board and the Obs. The Municipality
Solid Waste Management No.10 reorganized the
Plan, the long-term Municipal Solid Waste
management of solid waste, Management Board
as well as integration of the under E.O. No. 9 s.
various solid waste 2014. However, the
management projects and 10-yearSolid Waste
strategies of the barangays Management Plan was

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in its area of jurisdiction not prepared.
was not merited contrary to
Republic Act 9003, Reiterated in
otherwise known as the Observation No. 8
Ecological Solid Waste
Management Act of 2000
thus, the objectives of the
Act were not achieved.

We recommended that
management organize a
Municipal Solid Waste
Management Board to
oversee the implementation
of the Ecological Solid
Waste Management Act and
adhere to the provisions of
RA 9003, otherwise known
as the Ecological Solid
Waste Management Act of
2000.

10. Failure to adopt AAR Not Implemented

measures and strategies to 2013
remedy the low collection of Obs. Although the
income, the Municipality No.13 municipality
spent more by P274,917.49 registered increase in
on the Market and Sibul income from its
Spring Resort operations economic enterprise -
than revenue collections Sibul Spring Resort
thereby, diminished the and Market, they still
limited resources of the failed to manage its
agency on priority programs expenses, showing
and projects opposing the increase in expenses
decree of Section 2 of PD and still incurring
1445. losses from Sibul
Spring Resort.
We recommended that
management adopt
measures and strategies to
remedy the low collection of
income for economic
enterprises and minimize the
expenses in relation thereto
in order to generate
sustainable revenues.

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