STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATIONS

Of the thirteen (13)twelve (12) audit recommendations contained in the Barangay

Audit Report for the period 2013 to 2016, two (2) were fully implemented and eleven (11)ten
(10) were unimplemented. The details are as follows:

Reference Observations and Recommendations Status of Reason for

Implementation Partial/Non-
Implementation
BAAR 2016 The Property, Plant and Equipment
account balance of ₱32,662,014.37 as of
Observation December 31, 2016 is unreliable due to
No. 1 discrepancy of ₱6,486,926.37 between the
said balance and the Physical Inventory
Pages 6 to 7
Report of ₱26,175,088.00. Likewise, the
Office of the City Accountant (OCA)
failed to maintain subsidiary records
contrary to Section 07.04 of the Barangay
Accounting Manual (BAM).
We have recommended:

a. The Barangay management to conduct Fully

complete physical inventory taking of Implemented
all properties and to prepare and submit
the corresponding Inventory report.

b. The Barangay to indicate the complete Not The Inventory

specifications and technical description, Implemented report does not
date and acquisition cost of all barangay indicate required
property in the Inventory report. details of barangay
property.

c. The Barangay and the Office of the City Not No Reconciliation

Accountant to reconcile their respective Implemented was submitted to
records to arrive at the correct balances Audit Team.
of its Fixed Assets account.

We also advised the City Accountant to Not The City

require the Chief of the BAD to Implemented Accountant had
facilitate the preparation and not maintained
maintenance of equipment ledger card subsidiary records
for all properties of the barangay for barangay
including those acquired in prior years. properties.

BAAR 2016 The Office of the City Accountant (OCA)

failed to prepare and submit the CY 2016

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Observation Barangay’s Bank Reconciliation
No. 2 Statements (BRS) to the City Auditor’s
Office (CAO) contrary to the provisions of
Pages 7 to 8 Section 04.04 of the Barangay Accounting
Manual and Volume IV of Accounting
System Manual for Barangay. Hence, the
accuracy of the reported balance of the
Cash in Bank account of ₱329,780.18 as of
December 31, 2016, could not be
ascertained.

We have recommended that the Barangay Not Recommended

Chairman/Management make proper Implemented action not given
representation with the depository bank for attention.
the timely submission of Bank Statements
with its supporting documents to the OCA
to facilitate the preparation of the BRS for
the required submission of the same to the
CAO for verification and to the Barangay
for its appropriate disposition, pursuant to
the provisions of Section 04.04 of the
BAM and Volume IV of Accounting
System Manual for Barangay.

BAAR 2016 Cash advances amounting to

₱2,076,600.03 remained unliquidated as of
Observation December 31, 2016, due to the inability of
No. 3 the concerned accountable officers to settle
their accountabilities contrary to the
Pages 8 to
provisions of PD 1445 and COA Circular
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No. 97-002 dated February 10, 1997.

We have recommended the immediate Not Balance of the

settlement/liquidation of all outstanding implemented account as at 31
cash advances. Likewise, we advise the December 2018
Barangay management to strictly comply amounted to
with the prescribed guidelines in the grant ₱2,076,600.03.
and liquidation of cash advance as The same
provided under Section 89 of PD 1445 and remained
COA Circular No. 97-002. In case of unliquidated.
failure to comply and if circumstances
warrant, cause the withholding of the
payment of any amount due the
accountable officer.

We have also recommended that the Not The City

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 City Accountant prepare and maintain Implemented Accountant had
Subsidiary Ledger for each not maintained
Accountable Officer and Schedule of subsidiary ledger
Cash Advances for proper monitoring for accountable
and control of the grant and liquidation officers.
of cash advance.
Not Recommended
Implemented action not given
attention.
Lastly, we have recommended that the
OCAT exert efforts to identify and
determine the breakdown and nature of
outstanding cash advances in order to
establish accountability of each
accountable officer for proper and
immediate liquidation of cash advances
granted to them.

BAAR 2016 The balance of the Barangay’s Due from

LGU account amounting to ₱1,653,378.60
Observation as of December 31, 2016 showed a
No. 4 difference of ₱-6,460,632.19 as compared
with the balance of its reciprocal account
Page 10-11
Due to LGUs appearing in the Trust Fund
books of the City Government of
₱8,114,010.79 due to the inability of the
Office of the City Accountant (OCA) to
conduct reconciliation of the said accounts
pursuant to Section 9.01 of the Barangay
Accounting Manual (BAM).

We have recommended that the City Not. No reconciliation

Accountant direct the Chief of the BAD to implemented was submitted to
conduct immediate reconciliation of the Audit Team
balances of the reciprocal accounts Due to
LGUs and Due from LGU and to effect the
needed adjustment on the noted difference
in order to reflect the correct balance of the
receivable account of the Barangay.
Henceforth, the BAD is required to
regularly prepare reconciliation of the
subject reciprocal accounts pursuant to the
provisions of Section 9.01 of the BAM.

BAAR 2016 The validity and propriety of barangay

transactions covered by the audit period
Observation

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No. 5 2013 to 2016 could not be ascertained due
to the failure of the Barangay and Office of
Pages 11 to the City Accountant to submit all the
12 corresponding Disbursement Vouchers
(DVs), Punong Barangay Certification
(PBC) and supporting documents, contrary
with the provisions of Sections 3.1 and 3.3
of COA Circular No. 2012-005 dated
December 7, 2012 and Section 6.05 of
COA Circular No. 95-006 dated May 18,
1995.

We have recommended that the Punong Not The Barangay

Barangay and Barangay Treasurer strictly implemented submits financial
comply with the prescribed period of transaction
submission provided under COA Circular documents beyond
No. 2012-005 dated December 7, 2012 to the prescribed
prevent the issuance of COA Auditor’s period of
Advice and holding further payments of submission.
checks issued by the barangay.

Likewise, we have advised the City Not Recommended

Accountant to immediately transmit all the implemented action not given
disbursement vouchers and the supporting . attention.
documents to the City Auditor’s Office for
the required audit pursuant to the
aforementioned rules and regulation.

BAAR 2016 The validity and propriety of the recorded

Real Property Tax (RPT), Internal
Observation Revenue Allotment (IRA) and Aids,
No. 6 Grants and Subsidies in the books of
accounts for the years 2013-2016 could not
Page 12-13
be ascertained in the absence of Special
Journal Vouchers and Credit Notices that
would substantiate the recorded
transactions. This indicates non-
compliance with Section 03.04 (B) of the
Barangay Accounting Manual (BAM) and
Section 2 (1), Article IX-D of the
Philippine Constitution.

We have advised the City Accountant to Fully

immediately transmit all the special journal implemented
vouchers and the supporting documents to
the City Auditor’s Office for audit

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purposes.

Disbursements for various barangay

transactions and liquidations were not
supported with complete documentation
contrary to the provision of PD 1445 and
COA Circular No. 2012-001 dated June
14, 2012, thus, casting doubt on the
validity and propriety of the said
transactions.

We have recommended that the barangay Not Recommended

maintain complete file of eligibility implemented action not given
requirements/ statements of attention.
suppliers/contractors as enumerated in
Section 23.1 of the Implementing Rules
and Regulations of Republic Act No. 9184.

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