EXECUTIVE SUMMARY

Introduction

The town of Tanauan was founded at its location in 1754. It is generally believed that
Tanauan was originally founded in 1572 by Augustinian missionaries on the shore of Taal
Lake.

The seat of the City Government was established on its present site in March 1960. In 1996,
Tanauan became a first-class municipality, and after five years, became a City by virtue of
Republic Act (RA) No. 9005, which was signed into law by President Gloria Macapagal-
Arroyo on February 2, 2001, ratified and approved through a plebiscite on March 10, 2001.

As of December 31, 2021, the City Government of Tanauan, Batangas has a total personnel
complement of 1,596, as follows:

Nature of Appointment Number

Permanent 745
Elective Officials 14
Coterminous 78
Job Order 758
Temporary 1
Total 1,596

It is headed by Mayor Mary Angeline Y. Halili, City Local Executive and assisted by 13
elected officials who work under the Legislative Branch or the Sangguniang Panlungsod.
She is also ably assisted by 1,582 personnel.

Financial Highlights

The funds of the City for Calendar Year (CY) 2021 totaling P2,102,894,869.74 were sourced
from local taxes, permits and licenses, service and business income and internal revenue
allotment. To carry out the projects, programs and activities of the City, the appropriations
and allotment for CY 2021 totaled P2,102,894,869.74 while the obligations at the end of the
year amounted to P1,375,721,766.60 leaving a balance of P727,173,103.14. The total
assets, liabilities, equity, revenue and expenses for CYs 2021 and 2020 are as follows:

Increase/
CY 2021 CY 2020 (Decrease)
Assets P6,151,850,054.76 P5,433,486,361.44 P 718,363,693.32
Liabilities 1,003,237,759.26 1,034,772,167.04 (31,534,407.78)
Equity 5,148,612,295.50 4,398,714,194.40 749,898,101.10
Revenue 2,102,894,869.74 1,900,774,308.09 202,120,561.65
Expenses 1,318,710,554.69 1,486,196,022.60 (167,485,467.91)

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Awards and Recognition

Galing Pook Awards Finalist (Produktong Tanaun, Produktong may Laban)

Scope and Objective of the Audit

The audit covered the accounts and operations of the City Government of Tanauan,
Batangas for the period January to December 2021.

The objectives of the audit are to (a) verify the assurance that may be placed on
Management’s assertions on the financial statements; (b) recommend agency improvement
opportunities; (c) determine compliance with existing laws, rules and regulations; and (d)
determine the extent of implementation of prior years’ audit recommendations.

Auditor’s Opinion on the Financial Statements

The Auditor rendered a qualified opinion on the fairness of presentation of the financial
statements of the City Government of Tanauan as of December 31, 2021 due to the
following:

1. The reliability, accuracy and existence of the recorded balances of Property, Plant and
Equipment (PPE) accounts as of December 31, 2021 of P4.188 billion gross amount, net
of Construction in Progress (CIP) accounts, could not be ascertained due to the non-
adherence to the guidelines and procedures on inventory taking of PPE account
balances and discrepancies noted in the submitted Report on Physical Count of
Property, Plant and Equipment (RPCPPE) contrary to Section 111 of Presidential
Decree (PD) No. 1445, Section 57 of the Manual on the New Government Accounting
System (MNGAS) for Local Government Units (LGUs), Volume II, COA Circular No.
2015-009, Item 2.2.1 of COA Circular No. 2005-002 and Section 82 of IPSAS 17, thus
placing the fixed assets account balances reflected in the financial statements of the City
of doubtful validity.

2. The Intangible Assets account was overstated by P89.350 million due to erroneous
recording of two units of buses with 5D Hub Facility, contrary to International Public
Sector Accounting Standards (IPSAS) 31, which cast doubt on the reliability of the
account balance in the financial statement. Likewise, the non-submission of purchase
contract and the related bidding documents hindered the timely review, evaluation and
inspection of the projects.

3. The results of the Physical Count of Inventory duly reconciled with the Stock Cards in
the Property and Supply Units and Supplies Ledger Cards kept by the City Accounting
Office were not submitted to the Office of the Auditor as provided by Section 124,
Volume I and Section 56, Volume II of the Manual on the New Government Accounting
System (MNGAS) for Local Government Units (LGUs), thus casts doubt on the accuracy
and validity of the amount of Inventories as reflected in the Statement of Financial
Position in the amount of P16.675 million. Moreover, improper recoding of purchases
amounting to P162.431 million understates Inventory accounts and overstates the
related expense account by the same amount contrary to Item 17 and 44 of the
International Public Sector Accounting Standard 12, thus affecting the fair presentation
of accounts in the financial statements.

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4. Unadjusted accounting errors/omissions amounting to P10.789 million resulted in the
overstatement of Construction in Progress (CIP) and understatement of the appropriate
PPE and Accumulated Surplus accounts, contrary to paragraph 27 of IPSAS 1,
paragraph 59 of IPSAS 17 and Section 50 of the MNGAS for LGUs, Volume 1, thus
affected the fair presentation of the City’s Financial Statements for CY 2021.

5. The outstanding balance of the Loans Payable-Domestic account of P202.827 million

was classified as current liabilities, contrary to Paragraphs 70, 80 and 82 of IPSAS 1,
thus affected the fair presentation of the account in the financial statements.

6. Unclaimed stale checks amounting to P410,298.82 were not cancelled contrary to

Section 59, Chapter 3 of the MNGAS for LGUs, Volume 1, thus understating the Cash In
Bank-Local Currency, Current Account and the corresponding liability account balances
by the same amount.

For the exceptions cited above, the Audit Team recommended that the City Mayor:

1. a. create a separate Inventory Committee for one-time cleansing of PPE as

required under COA Circular No. 2020-006 and approve the Physical
Inventory Plan (PIP) necessary for the conduct and complete physical
inventory;

b. require the Inventory Committee to assigned Property Number (PN) for each
PPE items and incorporate in the report such PN;

c. direct the City Accounting Office (CAO) and the General Services Office
(GSO) to reclassify the PPE items amounting to P102,931,010.51 in the
accounting records and in the RPCPPE;

d. require the CAO and GSO to record the PPE amounting to P118,197,514.06,
individually in the Property Ledger and in the Property cards for easy tracking
and establishing the accountability;

e. direct the City Accountant to reclassify the semi-expendable items totaling

P33,514,275.83 to appropriate inventory accounts and ensure that all small
value assets with useful life of more than one year but costing less than
P15,000.00 are properly classified and recorded accordingly and to prepare
journal entries and effect the necessary adjustments on the PPE,
Accumulated Depreciation and Government Equity accounts for a fair
presentation of the accounts in the financial statements;

f. instruct the GSO to issue the corresponding Inventory Custodian Slip (ICS) to
all the end-users of the small tangible items and to cancel the Property
Acknowledgement Receipt (PAR) previously issued;

g. require the GSO and Inventory Committee to indicate in their PPE records
and in the RPCPPE the specific and complete descriptions/details of the

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 property/ conditions and whereabouts of the PPEs;

h. direct the Inventory Committee to properly accomplished the RPCPPE and to

see to it that the report is signed by the head and all members of the
committee and duly approved by the Local Chief Executive;

i. create a Disposal and Appraisal Committee that will (i) inspect unserviceable
equipment and property; (ii) set the final appraised value of all disposable
properties; (iii) recommend the disposal to the Local Chief Executive for his
approval and the manner of disposal; and (iv) forward the approved
documents to the City Accountant for the necessary adjustments in the PPE;
and

We further recommended that the City follow the guidelines set forth in COA
Circular No. 2020-006 for the one-time cleansing of PPE accounts.

2. We recommended that the City Mayor direct the:

a. City Accountant to reconcile and record the adjustment in the books for a fair
presentation of the Intangible Asset account incompliance with IPSAS 31; and

b. BAC Secretariat to submit copy of contract/Purchase Order, together with the

related bidding documents to COA within five working days after perfection
thereof, for the timely review and inspection; and

c. henceforth, strictly comply with the provisions stated in COA Circular No.
2009-001 on the timely submission of perfected contract.

3. We recommended that the City Mayor require the Property and Supply Unit of the
General Services Office, City Treasurer’s Office, City Health Office and other
offices concerned to submit to the Office of the Auditor not later than July 31 and
January 31 of each year for the first and second semesters, respectively, copy of
the RPCI duly reconciled with the Supply Ledger Cards maintained by the
Accounting unit and Stock Cards maintained by them as provided by Section 124,
Volume I and Section 56, Volume II of Manual on the NGAS for LGUs.

We recommended that City Mayor direct the City Accountant to:

a. observe the proper procedure in recording the receipt of supplies to the

appropriate Inventory accounts instead of directly recording the same as
expense for fair presentation of asset and expense accounts in the books; and

b. thereafter, comply strictly to the provisions of Item 17 and 44 of IPSAS 12.

4. We recommended that the City Mayor direct the City Accountant to draw a
Journal Entry Voucher (JEV) to transfer the CIP accounts to the respective assets
account and to record the corresponding provision for depreciation including its
prior year’s depreciation.

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 Henceforth, strictly comply with Section 50 of the MNGAS for LGUs, Volume I,
Paragraph 27 of IPSAS 1 and Paragraph 59 of IPSAS 17.

5. We recommended that the City Mayor direct the City Accountant to correctly
classify the outstanding loans due for settlement within the year as part of the
current liabilities and the remaining amount which is due for settlement beyond
one year as non-current liabilities in the Statement of Financial Position to present
the correct balance of the current and long-term liability accounts.

6. We recommended that the City Mayor require the:

a. City Treasurer to cancel the unclaimed stale checks and furnished the
Accountant with original DVs and its supporting documents for preparation of
the JEV following the procedures prescribed to ensure recording of such
cancellation; and

b. City Accountant to adjust in the books the stale checks amounting to

P410,298.82.

Henceforth, strictly observe Section 59, Chapter 3 of the NGAS Manual for LGUs,
Volume 1, on the proper treatment and accounting procedures for stale and
cancelled checks.

Other Significant Audit Observations and Recommendations

Summarized below are the other significant observations and the corresponding
recommendations

1. Various infractions were noted in the related disbursements made for the acquisition
of lot totaling to P121.931 million to be used for the Construction of Tanauan City
Hospital and other various government projects contrary to Sections 2 and 6.10 of
the Implementing Rules and Regulations (IRR) of RA No. 10752, Annex M item C of
COA Circular No. 2009-001, Section 13.1 of COA Circular No. 2012-001, Section 2.2
of COA Circular No. 97-002 and Section 7 of the 2016 Revised IRR of RA No. 9184
which prejudiced the interest of the government as well as casted doubt on the
legality and regularity of the payments made.

We recommended that the City Mayor require the:

a) City Accountant to:

• ensure the completeness of the supporting documents before processing

payments; and

• submit immediately all the lacking documentary requirements to support the

payment of the acquired land as prescribed under COA Circular Nos. 2009-
001 and 2012-001, to avoid suspension in audit.

b) payment through check payable to the payee;

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 c) Local Finance Committee to ensure that sufficient funds are appropriated for
proposed expenditures for the year and budget supplementation be made prior to
the incurrence of any obligation; and

d) all Department Heads/end-user units to submit their PPMPs to the City Budget
Office as basis in the preparation of the APP. Strictly observe that no
procurement shall be authorized and undertaken unless it is included in the APP.

Henceforth, comply strictly with Sections 2 and 6.10 of the IRR of RA No. 10752,
Annex M item C of COA Circular No. 2009-001, Section 13.1 of COA Circular No.
2012-001, Section 2.2 of COA Circular No. 97-002 and Section 7 of the 2016
Revised IRR of RA No. 9184 for future transactions.

2. The K-12 Education Classroom Package procured by the City Government out of
Special Education Fund (SEF) during the Coronavirus Disease 2019 (COVID-19)
outbreak with a total contract price of P38.850 million were found not in accordance
with the specifications called for in the Purchase Order as per Technical Inspection
Report from the Commission on Audit (COA) Region IV-A-Technical and Information
Technology Services Office, resulting in a cost deficiency totaling P19.400 million.

We recommended that the City Mayor require the supplier to comply with all the
requirements/deliverables specified in the Purchase Order and immediately request
for re-evaluation/re-inspection of the items delivered upon compliance of the
deficiencies noted in the TAS Inspection Report for Information Technology
Hardware and Application.

We further recommended that the General Services Office (GSO) and Department of
Education (DepEd) monitor and institute corrective measures on the findings by the
COA-TAS. Coordinate with the in-house Information Technology (IT) Department of
the City and that of DepEd to fully understand the application of the software and
validate the specifications of the hardware as specified in the terms of reference
agreed upon by the parties.

Henceforth, exercise close supervision in the delivery and implementation of the

project in accordance with the PO/contract.

3. The City was not able to submit 214 Disbursement Vouchers (DVs) totaling P19.162
million contrary to Sections 7.1.1 and 7.2.1 of COA Circular No. 2009-006, as well as
provisions under Sections 6.03, 6.04 and 6.05 of COA Circular No. 95-006, thus
limiting the extent of audit for CY 2021 transactions and preventing the COA to
validate the underlying transactions.

We recommended that the City Mayor require the City Accountant to:

a) immediately submit to the Office of the Auditor the 214 DVs to establish the
validity, legality and propriety of the transactions and to avoid the issuance of
disallowance thereon; and

b) submit regularly and completely all DVs and supporting documents to COA within
the prescribed period to establish the validity, propriety and legality of the

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 disbursements made by the City.

We also recommended her strict compliance with the provisions of COA Circular
Nos. 2009-006 and 95-006 dated September 15, 2009 and May 18, 1995,
respectively.

4. Six infrastructure projects programmed in CY 2021 totaling P10.991 million were not
yet started while nine projects costing P199.539 million remain unfinished or have
not been completed due to the inability of the City Engineering Office to conduct the
necessary and complete detailed engineering and investigations survey and to
establish the technical viability of the projects during the feasibility and preliminary
engineering study prior to the implementation of the projects, contrary to Section
17.6, Rule VI of the Revised IRR of RA No. 9184, thereby delaying its
implementation and the timely delivery of socio economic services that can be
provided by these projects and deprived the government and the public of the
essential benefits that could have been derived therefrom.

We recommended that the City Mayor

a. instruct the City Engineer to direct his staff to conduct complete and thorough
detailed engineering, investigations and survey for all projects to lessen the need
for variation orders and time extensions and to avoid the delayed implementation
of the projects;

b. approve all valid and reasonable suspension orders and resumption order; and

c. require the City Engineering Office and other concerned offices to fast track the
completion of all on-going and unimplemented projects at the soonest possible
time through adequate monitoring and supervision of the work of the contractors.

Henceforth we recommended that the City Mayor advise City Engineering Office to
ensure that a thorough planning with the involvement of all stakeholders is
conducted in the formulation of all projects.

5. Various financial assistance received from national government totaling P12.544

million were not used/utilized due to deficiency in the planning process and inaction
of the personnel in charge in the project, thus depriving the target beneficiaries of the
benefits that could have been derived therefrom.

We recommended that the City Mayor, for future releases, require the City Planning
and Development Office (CPDO) and City Social Welfare Development Office
(CSWDO) to formulate a realistic and attainable work plan to ensure subprojects and
activities are ready for implementation upon release of the fund in coordination with
the City Engineering Office and Bids and Awards Committee. and to fast tract the
implementation of the project to serve the purpose of the program.

6. A separate account in the General Fund and Registries were not maintained for the
operation of Tanauan City College, Market, Cemeteries, Slaughterhouse, 20 per cent
Development Fund and Long Term Loans contrary to Section 313 of RA No. 7160,
Section 63 of COA Circular No. 92-382 dated July 3, 1992 and Sections 105 to 110

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 of the Manual on New Government Accounting System (NGAS) for the LGUs
Volume I, hence the proper procedure on recording, monitoring and reporting of the
funds received and utilized was not strictly observed.

We recommended that the City Mayor require the City Accountant to:

a. set up special accounts for TCC, Slaughter House and Market Operations, 20%
Development Fund and Long Term Loans with LBP in the General Fund; and
b. maintain separate and complete subsidiary ledger and prepare and submit year-
end trial balances and financial statements for each special account to afford City
adequate information on the results of their operations pursuant to Section 313 of
RA No. 7160, Section 63 of COA Circular No. 92-382 dated July 3, 1992 and
Sections 105 to 110 of the Manual on NGAS for LGUs Volume I.
7. Deviations in the utilization of SEF totaling P238.671 million were noted in violation
of Section 272 of RA No. 7160, DepEd-Department of Budget and Management
(DBM)-Department of Interior and Local Government (DILG) Joint Circular (JC) Nos.
1 and 2, series of 2017 and 2020, respectively, and pertinent provisions of the 2016
Revised IRR of RA No. 9184, resulting in ineffective management of the fund,
uncertainties on the propriety and legality of the claims and inefficient delivery of
benefits to intended beneficiaries.

I. Charging of non-priority expenses amounting to P9,341,481.00

We recommended that the City Mayor direct the City School Board (CSB) of
Tanauan City and concerned Officials to:

a. submit justification on the charging of non-priority expenses to SEF and

provision of cellular phones even to job order personnel of DepEd - Tanauan
City Division Office;

b. manage effectively and exercise due prudence in the proper utilization of SEF
by ensuring that it is use only for the purposes provided under Section 272 of
RA No. 7160 and JC Nos. 1, s. 2017, and 2, s. 2020 of the DepEd, DBM and
DILG and consider only the programs, projects and activities (PPAs)
enumerated thereat in the preparation of the SEF budget. Otherwise, such
transactions will be disallowed in audit if incurred repeatedly;

c. stop the practice of charging non-priority expenses against the SEF to

preserve the fund exclusively for education-related PPAs; and

d. henceforth, strictly comply with the provisions stated under Section 272 of RA
No. 7160 and DepEd-DBM-DILG JC Nos. 1, s. 2017, and 2, s. 2020.

II. Uncertainty on the reasonableness of the Approved Budget for the Contract
(ABC) totaling to P193,604,000.00

We recommended that the CSB and other concerned Officials submit:

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 a. an explanation on the noted excessive ABC for the procured laptops,
manipulative and educational toys, cellular phones and monochrome
multifunction printers; and

b. basis of computation for the set ABC of the procured laptops, tablets,
multifunction printers and cellular phones.

We recommended also that the City Mayor direct the:

a. CSB, implementing units, and the Bids and Awards Committee (BAC) to
conduct market research and to gather information about the products, its
specifications and prices, among others, as inputs to the ABC to attain bid
prices from suppliers most favorable to the City. Support the computation of
ABC with proof of canvass conducted; and

b. concerned end-users and the BAC to adhere to the prescribed guidelines in

the preparation of the ABC provided under Item 5.1 of COA Circular No.
2012-003 dated October 29, 2012 and Item D of Section 4.I: Procurement
Planning and Budget Linkage of the Local Government Units Procurement
Manual.

III. Non-submission of contracts/Purchase Orders (POs), together with its supporting

documents, for review to the Office of the Auditor

We recommended that the City Mayor require the City General Services and
BAC to submit copy of contracts, together with its supporting documents, to COA
within five working days after their perfection and/or approval as provided under
COA Circular No. 2009-001, for the timely review and inspection.

IV. Incomplete bidding documents and other documentary deficiencies

We recommended that the City Mayor direct the:

a. direct the CSB, BAC and end-user to submit justifications on the noted
observations and submit immediately all lacking documents to the Office of
the Auditor for verification and audit;

b. instruct the City Accountant to ensure the appropriateness and completeness

of the supporting documents before processing payments to suppliers and
contractors; and

c. henceforth, comply strictly with Section 4 (6) of PD No. 1445, Section 17 of

the 2016 Revised IRR of RA No. 9184 and Section 9.1 of COA Circular No.
2012-001 to avoid suspension/disallowance of transactions.

V. Delay in the delivery of goods amounting to P87,653,645.66

We recommended that the City Government of Tanauan demand for liquidated

damages from erring suppliers and enforce strictly and sternly the penalties
provided under Paragraph 3.1 of the 2016 Revised IRR of RA No. 9184 on the

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 incurrence of delays in the delivery/completion of government procurement
contracts in order to safeguard government resources as well as the interest of
all citizenry.

We also recommended the firm adherence to the rules and regulations set forth
in RA No. 9184 or the Government Procurement Reform Act so as to promote
transparency, accountability, efficiency and economy in the procurement process
to achieve good governance.

8. Disbursements from the SEF with a total contract amount of P216.218 million
contravened Sections 2, 33 and 73(1) of Presidential Decree (PD) No. 1445,
Commission on Audit (COA) Circular No. 2012-003, Item 2.3 of COA Circular No.
2005-002, and Section 62.1 of the 2016 Revised IRR of RA No. 9184 thereby
causing the City resources to possible loss or wastage of funds.

We recommended that the City Mayor:

a) instruct the City School Board (CSB) to:

closely coordinate with the beneficiary or end-user schools prior to or during

procurement planning to ensure that all purchases are responsive to their
needs/requirements so as to prevent procurement of unnecessary
goods/items which may lead to wastage of government funds; and

submit an explanation on the noted expensive acquisition cost for the

procured monochrome multifunction printers;

b) direct the City General Services Officer (CGSO) to:

coordinate with the Supply Officer of the DepEd Schools Division of Tanauan
to:

 ensure that the transfers are documented and covered by Inventory

Custodian Slip (ICS) for small tangible items and PAR for equipment; and

 request the immediate return of the defective laptops and tablets, and
promptly inform the suppliers of the defects noted or were discovered.

strictly monitor the condition of the distributed assets of the City by

implementing a feedback mechanism that will allow the immediate
communication of defects of the procured items of the City and prevent the
wastage of government funds; and

coordinate with the Schools Division Superintendent/Co-chairperson of the

City School Board to require the recipient schools to document the transfer of
the noted 29 procured learning materials/books, and subsequently, submit
the same to the CGSO, together with the duly accomplished ICS, to reflect
the updated number of learning materials issued to the respective schools;

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 and

immediately submit the Request for Relief from Accountability and their
pertinent supporting documents to the Audit Team for one unit of tablet
reported as lost.

Henceforth, we recommended strict compliance to Sections 2, 33 and 73(1) of PD

No. 1445, COA Circular No. 2012-003, Item 2.3 of COA Circular No. 2005-002, and
Section 62.1 of the 2016 Revised IRR of RA No. 9184 for future transactions.

9. The 20 per cent Development Fund (DF) Programs/Projects/Activities (PPAs) for CY

2021 was not fully utilized with only 7.94 per cent utilization rate or P11.445 million
out of P144.100 million current budget appropriations, inconsistent with the provision
of Item 5.0 of Department of the Interior and Local Government (DILG) – Department
of Budget and Management (DBM) Joint Memorandum Circular (JMC) No. 2017-1,
resulting in the non-achievement of attaining desirable socio-economic development
and environmental outcomes to the disadvantage of the constituents of the City.
More so, its utilization showed lapses and non-compliance with the provisions of the
2016 Revised IRR of RA No. 9184, Philippine Bidding Documents, COA Circular No.
2012-001 and COA Circular No. 2009-001 hence, casting doubt on the propriety of
the procurement and implementation of the locally funded projects.

A) Inability to fully utilize the 20 per cent DF

We recommended that the City Mayor:

a. instruct the City Development Council, City Planning and Development

Office, City Engineering Office and other offices concerned in the
implementation of projects under the 20 per cent DF to monitor and evaluate
the implementation of all 20 per cent DF programs/projects/activities to
achieve the benefits fully desired to be derived therefrom in compliance with
DILG-DBM JMC No. 2017-1; and

b. direct concerned Officials of the City to observe the guidelines on the

appropriation and utilization of 20 per cent DF under DILG-DBM JMC No.
2017-1.

B) Delayed submission of contracts and other related documents for review to the
Office of the Auditor

We recommended that the City Mayor require the City General Services and
Engineering Office to submit copy of contracts, together with its supporting
documents, to COA within five working days after their perfection and/or approval
as provided under COA Circular No. 2009-001 dated February 12, 2009, for the
timely review and inspection.

C) Lapses in the compliance with the provisions of the 2016 Revised IRR of RA No.
9184

We recommended that the Bids and Awards Committee (BAC) direct the
prospective winning bidder/contractor to receive the Notice to Proceed on time in

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 accordance with Section 37.4.1 of the 2016 Revised IRR of RA No. 9184.

We recommended that the City Mayor:

a. direct the BAC to submit justification on the noted observation and submit
immediately all lacking documents to the Office of the Auditor for verification
and audit;

b. instruct the City Accountant to ensure the completeness of the supporting

documents as required under Section 4 (6) of PD No. 1445, the Philippine
Bidding Documents and Section 9.1 of COA Circular No. 2012-001 before
processing payments to suppliers and contractors; and

Henceforth, comply strictly with Section 4 (6) of PD No. 1445, the Philippine
Bidding Documents and Section 9.1 of COA Circular No. 2012-001.

10. The City registered a 19 per cent utilization rate amounting to P9.944 million of the
70 per cent allocation for Disaster Prevention and Mitigation, Preparedness,
Response, Rehabilitation and Recovery of the Local Disaster Risk Reduction and
Mitigation Fund (LDRRMF) for CY 2021 contrary to Sections 2(e) and 12(6) of RA
No. 10121, thus the desired goals of reducing disaster risk and enhancing disaster
preparedness and response capabilities may not be optimally achieved by the City.

We recommended that the OIC – City Disaster Risk Reduction and Mitigation
(DRRM) Office monitor and evaluate the utilization of LDRRMF based on the
programs, projects and activities listed in the Local Disaster Risk Reduction and
Mitigation Fund Investment Plan (LDRRMFIP) to ensure the full implementation of
the pre-disaster preparedness and response activities of the City.

We also recommended strict compliance to Sections 2(e) and 12(6) of RA No. 10121
to strengthen the capacity of the City to build a disaster resilient community.

11. Gender issues in the locality were not fully addressed due to incomplete composition
of Gender and Development (GAD) Focal Point System, inadequate planning for
GAD Programs, Projects and Activities (PPAs) and inaccurate charging of
attributable PPAs to the GAD Fund contrary to Philippine Commission on Women
(PCW)-Department of the Interior and Local Government (DILG)-Department of
Budget and Management (DBM)-National Economic and Development Authority
(NEDA) Joint Memorandum Circular (JMC) Nos. 2013-01 and 2016-01, and
Harmonized Gender and Development Guidelines 3rd Edition (May 2016), thus the
primary objective of GAD on promoting gender-responsive governance, protecting
and fulfilling women’s human rights, and promoting women’s empowerment as
mandated was not fully achieved.

 Incomplete composition of the City’s GAD Focal Point System (GFPS)

We recommended that the City Mayor strengthen the City’s GAD Focal Point
System by completing and reconstituting the composition of the GFPS Execom
for every change in the committee to ensure that the City’s GFPS fulfill its tasks.
Thereafter, comply strictly to Sections 4.1.A.1 and 4.1.A.2 of PCW-DILG-DBM-
NEDA JMC No. 2013-01.

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  Inadequate planning for GAD PPAs

We recommended that the GFPS:

a) fully implement the GAD Plan and Budget (GPB) and see to it that all
expenses incurred are within the approved budget;

b) strictly monitor the implementation of the planned GAD program, projects and
activities to ensure that the plan was fully implemented;

c) thoroughly review the contents of the GPB report to ensure that all
information are presented completely before submission to the Office of the
Auditor and reviewing and evaluating office; and

d) strictly comply with Section 6.0 of the PCW-DILG-DBM-NEDA JMC No. 2016-
01.

 Inaccurate charging of attributable PPAs to the GAD Fund

We recommended that the GFPS carefully check the HGDG scores together with
the corresponding percentage of the programs/projects/activities’ budget to be
attributed to GAD to ensure accurate charging thereof to the fund.

Henceforth, strictly comply to Section 3.0 of the PCW-DILG-DBM-NEDA JMC

No. 2016-01 and the Harmonized Gender and Development Guidelines 3rd
Edition (May 2016).

12. The Gender and Development Plan and Budget (GPB) and GAD Accomplishment
Report (AR) for CY 2021 was not submitted within the timeframe set by Paragraph V
of COA Circular No. 2014-001, thus affecting the timely review and limiting the period
for determining the alignment of the GAD plan with the GAD agenda, gender issues
and other related GAD laws.

We recommended that the GFPS:

a) ensure timely preparation and submission of the GAD Plan and Budget and GAD
Accomplishment Report to the Audit Team so that timely review and evaluation
of the same is facilitated; and

b) comply strictly to Paragraph V of COA Circular No. 2014-001 dated March 18,
2014.

Status of Implementation of Prior Years’ Audit Recommendations

Of the 87 prior years’ audit recommendations embodied in the 2020 Annual Audit Report, 41
were fully implemented, 20 were partially implemented and 26 were not implemented by the
City of Tanauan.

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