MUNICIPALITY OF CANTILAN

Surigao del Sur

AGENCY ACTION PLAN and STATUS of IMPLEMENTATION

Audit Observations and Recommendations
For the Calendar Year 2018

Agency Action Plan

Target
Implementat Reason for
ion Date Partial/ Action
Person/ Status of
Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Action Dept. Impleme
Implementa Action to
Plan Respon ntation
From To tion, if be Taken
sible applicable

The non-reconciliation of accounting

We recommended that Management direct the
records with the submitted Report of
Municipal Accounting Office and Municipal
Physical Count of PPE (RPCPPE)
AAR Treasurer’s Office to render an accounting on the
casted doubt as to the reasonableness
2018 result of recently conducted physical inventory and
of the ₱ 244,671,946.97 PPE account
reconcile differences of the two records.
balance reported in the Statement of
Financial Position.
 Agency Action Plan
Target
Implementat Reason for
ion Date Partial/ Action
Person/ Status of
Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Action Dept. Impleme
Implementa Action to
Plan Respon ntation
From To tion, if be Taken
sible applicable

We recommended the Management to:

1. Use sequentially numbered trip tickets duly

approved by the Agency Head or the authorized
representative for proper monitoring of fuel
consumption with complete information being filled
The reasonableness of the expenses out in every detail needed to support the claims for
incurred for Fuel, Oil and Lubricants payment of fuel expenses.
amounting to P831,585.45 under the
20% Economic Development Fund 2. Enforce the “No approved Driver’s trip ticket,
(20% EDF) could not be ascertained No Withdrawal Policy.”
due to incomplete documentation and
AAR the presence of material 3. Direct the authorized personnel to reconcile
2018 alterations/corrections made in the every month the Driver’s trip ticket with the
attached supporting documents, Monthly Fuel consumption and Summary of
differing to the rules and regulations Monthly Report of official Travels as mandated
prescribed in COA Circular No. 77- under COA Circular No. 77-61 D.6 to determine
61 and Sec. 2 of Presidential Decree whether the said fuel usage is valid and is being
No. 1445, thus exposing government used appropriately.
funds to unnecessary loss or wastage.
4. Direct the Municipal Accountant to impose the
policy that every information provided in the
Purchase Request and Withdrawal slip were
complete, true, correct and without alterations to
make the transaction valid for payment.
 Agency Action Plan
Target
Implementat Reason for
ion Date Partial/ Action
Person/ Status of
Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Action Dept. Impleme
Implementa Action to
Plan Respon ntation
From To tion, if be Taken
sible applicable

We recommended the Management to:

1. Instruct the Municipal Treasurer not to allow

any payee or representative to bring the DVs
The Journals, disbursement vouchers,
outside her office premises. Forward the Report of
liquidation reports and report of
Checks Issued with DVs to the accounting office on
collections and deposits together with
the fifth day of the following month and attach
its supporting documents were not
Report of Unreleased Checks to support the lacking
submitted on time as of December 15,
DVs of unclaimed checks.
AAR 2018 as prescribed in COA Circular
2018 No. 2009 – 006 dated September 15,
2. Direct the Municipal Accountant to monitor and
2009, thus precluding timely review
follow-up from the treasurer’s office the
and verification of the agency’s
submission of DVs, report of collections and
transactions and the timely
deposits and other reports every end of the month
transmission of information of noted
to avoid the same condition to happen.
deficiency.
3. Submit the financial reports and lacking DVs as
shown in the attached monitoring.
 Agency Action Plan
Target
Implementat Reason for
ion Date Partial/ Action
Person/ Status of
Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Action Dept. Impleme
Implementa Action to
Plan Respon ntation
From To tion, if be Taken
sible applicable

We recommended to Management that payrolls

Payment of honoraria to Bids and
Awards Committee (BAC) members,
Technical Working Group (TWG)
and BAC Secretariat totaling
P501,600.00 for CY 2018 was not
AAR
supported with documentary
2018
requirements to prove validity and
correctness of payments made and the
rates did not conform to the
provisions of Item 5 of DBM Circular
No. 2004-5A.
representing honoraria claims for involvement in
procurement projects be supported with the related
BAC Resolution, list of successfully completed
procurement projects, the source of fund certified
by the Municipal Treasurer and contracts
pertaining to the period of the claim that will
support the validity and correctness of honoraria
claims. Also, the Accounting Department require
the BAC Secretariat to submit subject documents to
support honoraria claims and to come up with a
re-computation of the correct amount of honoraria
for CY 2018.
 Agency Action Plan
Target
Implementat Reason for
ion Date Partial/ Action
Person/ Status of
Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Action Dept. Impleme
Implementa Action to
Plan Respon ntation
From To tion, if be Taken
sible applicable

We recommended the Management to:

1. Direct the officials responsible to submit the

related documents to prove the legality of the above
The payment of tax delinquency from
transactions, such as: a.) Breakdown/Schedule of
tax on compensation, final VAT,
unremitted taxes as reported in the account Due to
Expanded withholding taxes and
BIR as of December 31, 2014; b.) Breakdown of
other percentage tax amounting to
taxes remitted amounting to P898,313.28.
P855,895.85 were not sufficiently
AAR documented to support the legality of
2. Direct the responsible officials to see to it that
2018 the transaction and the payment of
taxes withheld are remitted on time and in
interest and surcharges totaling
accordance with the Bureau of Internal Revenue
P42,417.43 due to tax deficiency
Rules and Regulations to avoid surcharges and
were considered irregular pursuant to
interest.
COA Circular 2012-003 dated
October 29, 2012.
3. In case of delay, any penalty and surcharges be
charged personally to officials or employees
directly responsible.
 Agency Action Plan
Target
Implementat Reason for
ion Date Partial/ Action
Person/ Status of
Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Action Dept. Impleme
Implementa Action to
Plan Respon ntation
From To tion, if be Taken
sible applicable

We recommended that Management to:

1. Direct the Project Management Team in the

The Meat Processing Project with a
total project cost of P892,150.00,
intended for use by Cantilan OFW
and Dependent Association as the
beneficiary was not successful due to
AAR
the delay in its implementation and its
2018
insufficient counterpart fund as
provided in the Memorandum of
Agreement; thus, the project's desired
social outcomes had not been
achieved.
Municipal level to conduct an actual inspection of
the tools and equipment delivered and come up
with a report on the project status to aid the
management in formulating possible courses of
action.
2. Inform the DOLE-CARAGA of the project status
as stipulated in the MOA.
3. Require the Beneficiary, represented by the
Association President, to make a letter informing
the management of their intention to continue the
project or not. In case they intend to continue,
allocate funds to meet the required equity as
indicated in the MOA.
4. Formulate a MOA between LGU-Cantilan and
the Cantilan OFW and Dependent Association to
have a better understanding of the responsibilities
of both parties concerning the project
implementation.
 Agency Action Plan
Target
Implementat Reason for
ion Date Partial/ Action
Person/ Status of
Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Action Dept. Impleme
Implementa Action to
Plan Respon ntation
From To tion, if be Taken
sible applicable

7. The Municipality’s 20% Economic

Development Fund for CY 2018 and
its continuing appropriation
amounting to P13,111,847.08 and In view of the foregoing, we recommended that the
P8,115,040.99, respectively, were not Management direct the Local Finance Committee
utilized due to either delayed or non- to meticulously and judiciously plan in order to
AAR
implementation of the identified achieve the proper allocation of expenditures for
2018
programs, projects and activities, thus each development activity. Moreover, require the
depriving the public of a timely and MPDC to submit status of implementation for the
maximum use of the projects and projects funded under continuing appropriation.
likewise hinders the uplifting of the
economic and social condition of its
constituents.

Agency sign-off:

_______________________________ __________
Name and Position of Agency Officer Date

Note: Status of Implementation may either be (a) Fully Implemented, (b) Ongoing,
(c) Not Implemented, (d) Partially Implemented, or (e) Delayed