PART III – STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATIONS

Of the 194 recommendations embodied in the CY 2019 and prior years’ Annual Audit Reports, 76 or 39.17% were
implemented, 60 or 30.92% were partially implemented while the other 58 or 29.9% are not implemented.

Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
1. The correctness, existence We recommended the Local Chief AAR Reiterated in
and completeness of “Road Executive to enjoin the following 2019 this AAR
Networks” account in the City officials to do the following
amount of P118,758,415.62 courses of actions pursuant to
cannot be ascertained due COA Circular 2015-008, to wit:
to the non-transfer of the A. City Accountant
local road accounts from
the Registry of Public In- 1. To transfer in the books of Partially
frastructure to the books of accounts the road networks carried Implemented
account, non-recognition of in the Registry of Public
the cost of each component Infrastructure. If not possible,
of the local roads, and non- coordinate with the City Engineer
reconciliation of account- for the complete description and
ing records with the Local cost segregation of road
Road Inventory and Road components for road projects.
Map contrary to COA Cir-
cular 2015-008, thereby 2. Maintain separate Partially
fairness of the account can- subsidiary ledgers for the road and Implemented
not be relied upon. its components namely: a) road
lot, b) road pavement, c) drainage
and slope protection structures,

129
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
and d) other miscellaneous
structures.

3. Reconcile the subsidiary Partially

ledger of the road and its Implemented
components with the Local Road
Inventory and Road Map to ensure
completeness.

B. City Engineer

1. Segregate and recognize Not

the cost of each component of the Implemented
local roads with identified cost;

2. Determine the components Not

of local roads identified in the Implemented
inventory without corresponding
cost and recognize the cost of each
component at its fair value;

3. Provide the local Not

accountant and the general Implemented
services officer with the complete
description and cost segregation of
road components for road projects.

130
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
C. City General Services
Officer

1. In coordination with the

City Planning and Development Not
Officer maintain a Local Road Implemented
Inventory and Road Map;

2. Keep a complete Local Not

Road Network Property Card for Implemented
all roads and its components.

D. Inventory Committee

1. Conduct physical count

and prepare the Report on the Not
Physical Count of the Road Implemented
Network system.
2. The reliability of the re- We recommended the following AAR Reiterated in
ported balance of Construc- courses of actions: 2019 this AAR
tion and Heavy Equipment
amounting to 1. Conduct physical count of Not
P288,877,726.77 as at De- all PPEs annually and submit Implemented
cember 31, 2019 is doubt- RPCPPE to this Office pursuant to
ful due to non-reconcilia- Section 124 of NGAS Manual for
tion of records between the LGUs;
Accounting and General 2. For the GSO and CAO to Not

131
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
Service Offices with a net perform periodic reconciliation of Implemented
variance of P69,393,595.58 property records; and
and failure of management
to conduct a physical count 3. The Disposal Committee Not
of the said assets; hence, or GSO to conduct inspection and Implemented
affecting the fair presenta- appraisal of the unserviceable
tion of the financial state- properties and recommend for its
ments as at December 31, immediate disposal using the
2019. appropriate mode of disposal.
3. Completed infrastructure We recommended to the AAR Reiterated in
assets and non-infrastruc- management the following courses 2019 this AAR
ture assets still formed part of actions:
of the “Construction in
Progress (CIP) – Infrastruc- 1. City Engineering Office
ture Assets” account hav- (CEO)
ing a balance amounting to
P36,841,990.19, thereby • Exhaust all options to Not
casting doubts on the fair identify the details and status of Implemented
presentation of the finan- the abovementioned infrastructure
cial statements. projects that were marked as
“unidentified”. Furnish the
accounting office the details
retrieved to facilitate subsequent
actions to be undertaken.

• Furnish the accounting Not

office the certificates of Implemented

132
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
completion for the completed
infrastructure projects that were
undertaken by contract. For the
completed infrastructure projects
undertaken by administration,
provide the accounting office the
details such as date started, date
completed and other important
details that would be the basis for
the reclassification of CIP-
Infrastructure Assets account to its
corresponding infrastructure asset
accounts.

• For the ensuing

infrastructure projects whether Partially
undertaken by contract or Implemented
administration, provide the
accounting office the details
through written communication
including, among others, the
certificates of completion (for
projects undertaken by contract),
and list/details of infrastructure
projects completed and undertaken
by administration. With this, the
accounting office will have the

133
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
basis for the reclassification of
CIP-Infrastructure Assets account
to corresponding infrastructure
asset accounts.

2. The City Accounting

Office (CAO)

• Request from the CEO the

copies of certificates of Fully
completion for the completed Implemented
infrastructure projects undertaken
by contract.

• Request from the CEO the

details of the completed Fully
infrastructure projects that were Implemented
marked as “unidentified”.

• Upon availability of the

documents and other details Fully
coming from the CEO, reclassify Implemented
the completed CIP-Infrastructure
Assets account to its
corresponding infrastructure asset
accounts.

134
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
• For the completed non-
infrastructure projects, prepare
necessary adjusting entries to take
out the accumulated costs of these Implemented
projects from the CIP-
Infrastructure Assets account and
charged the same against the
City’s government equity.
4. Other Payables amounting We recommended the City AAR Fully
to P3,082,485.93 ageing Accounting Office (CAO) to 2019 Implemented
more than three years re- revert those payables that are
mained outstanding con- outstanding for more than three
trary to pertinent provisions years which are determined to be
hence, resulted in the over- without actual claimants through
statement of the current lia- the preparation of adjusting
bility thereby casting doubt entries.
as to the validity and exis-
tence of the account bal- For accounts that are not
ance. subject to reversion, we Fully
recommended the CAO to conduct Implemented
further evaluation and if possible,
coordinate with the payee/claimant
and inform them of the amount
due to them from the City of
Digos. In addition, ensure that
such accounts are supported with
complete supporting documents.

135

Audit Observations
5. Reconciling items in the
monthly bank reconcilia-
tion statements with a total
amount of P1,645,989.80
that were either additions
or deductions to book and
bank balances as at June
13, 2019 remained unad-
justed in the books, thereby
rendering the accuracy and
reliability of the Cash in
Bank accounts balance
doubtful.
6. The existence, accuracy
and reliability of the Breed-
ing Stocks with an account
balance of P990,990.00 as
of June 30, 2019 is doubt-
ful due to non-reconcilia-
tion of the Inventory Re-
port and the books, and the
non-compliance in the
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
We recommended the City AAR Reiterated in Partially
Accountant to immediately notify 2019 this AAR Implemented
the Bank in writing of the
reconciling items under General
Fund Proper – DBP Current
Account No. 0920-029240-080,
General Fund Proper – LBP
Current Account No. 0332-1029-
58, OCEEM – DBP Current
Account No. 0920-029240-030,
SEF – DBP Current Account No.
0920-029240-032, and Trust Fund
– DBP Current Account No. 0920-
029240-031, in coordination with
the City Treasurer, to adjust or
correct the errors for an accurate
and reliable cash account balance
every month-end.
We recommended management to: AAR Reiterated in
2019 this AAR
1. Direct the City General Not
Services Office to conduct a Implemented
physical count of the breeding
stocks and coordinate with the
Accounting Office to facilitate
reconciliation and/or adjustments
in the books of accounts; and
136
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation

2. Require the focal persons

responsible for the breeding stock Not
dispersal of the City Implemented
timely submission of re-
Agriculture/Veterinary Office and
quired documents in case
barangay for the timely
of loss/death of breeding
submission of relief from property
stocks as required under
accountability and the required
Sections 151 and 152 of the
documents on the disposal/death
Rules and Regulations on
of breeding stocks as required
Supply and Property Man-
under Sections 151 and 152 of the
ual in the Local Govern-
Rules and Regulations on Supply
ment.
and Property Manual in the Local
Government for validation and
derecognition of the accounts in
the books.
7. Stale Checks amounting to We recommended the AAR Fully
P3,731.00 remained out- CAO/CTO to coordinate with the 2019 Implemented
standing and may result in payees for check replacements.
the overstatement of Ac- Otherwise, make proper
counts Payable and under- adjustment in the books to
statement of Cash in Bank recognize stale checks following
accounts. this adjusting entry:
Cash in Bank – LCCA 3,731.00
Prior Period Adjustment 3,731.00
To reverse entries made pertaining to stale
checks
Likewise, we also recommend to

137
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
the City Treasurer to conduct a Fully
periodic review of outstanding Implemented
checks to determine which checks
are about to become stale in order
that necessary corrections and/or
adjustments will be made.
8. Transfer of funds to We recommended the AAR Fully
Barangay Kapatagan management to comply with the 2019 Implemented
amounting to P8.5 Million documentary requirements and
was made notwithstanding conditions cited in the above
the absence of basic docu- Circular before granting city
ments and not in accor- aid/subsidy/financial assistance to
dance with the conditions component barangays, such as but
under COA Circular 2012- not limited to the following:
001, thus casting doubt on
the propriety and validity • MOA
of the transactions. • Approved Program of
Work (for infrastructure projects)
• Approved Project
Expenditures or Estimated
Expenses indicating the project
objective and expected output
• Certification by the
Accountant that previous financial
assistance has been liquidated,
post-audited and accounted in the
books

138
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
• Official Receipts
• Authorization by Local
Sanggunian for the Local Chief
Executive to enter into a contract
in compliance with COA
Memorandum No. 2010-014 dated
April 22, 2010

Furthermore, specify in the MOA

the submission of liquidation Fully
reports together with the complete Implemented
supporting documents. The City
may also set a condition that no
additional fund will be released
when a certain barangay fails to
submit the same.
9. The City of Digos incurred We recommended the AAR
expenses charged against Management to: 2019
the 20% Development
Fund (DF) amounting to 1. Stop the utilization of 20%
P20,944,114.00 which are DF for expenses not in adherence Fully
non-investment or non-cap- with the set guidelines of DBM- Implemented
ital expenditures, in viola- DILG JMC No. 2017-01 and see
tion of the DBM-DILG to it that charges against the 20%
Joint Memorandum Circu- DF shall partake only
lar No. 2017-01, thus funds expenditures which are investment
for long-term development or capital in nature to avoid

139
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
disallowances in audit;

2. Ensure the maximum

utilization of the 20% DF through Fully
the implementation of all Implemented
identified priority projects
embodied in the AIP which shall
contribute to the attainment of
desirable socio-economic
projects that can provide development and environmental
socio-economic and envi- management outcomes;
ronmental benefits to the
City’s constituents were di- 3. Enjoin the LDC to amend
verted. or update the AIP in case of
changes of PPAs and submit the Fully
same to SP for the issuance of Implemented
resolution to authorize the
augmentation or realignment of
appropriation; and

4. Submit justifications as to Fully

10. The non-compliance with
the minimum standards on
disaster preparedness, as
prescribed in National Dis-
why the expenditures noted were Implemented
charged against the 20% DF.
We recommended the AAR Partially
Local Chief Executive to direct the 2019 Implemented
City Disaster Risk Reduction and
Management Office (CDRRMO)

140

Audit Observations
aster Preparedness Plan
2011-2028 Volume 2, may
impair the Digos City’s
preparedness in preventing
and mitigating the impacts
of hazards, thereby expos-
ing the City and the lives of
its stakeholders to the ad-
verse consequences of dis-
asters which may occur at
any given time.
11. Appropriation for the 5%
DRRMF amounting to
P44,772,030.00 contained
several deficiencies and in-
consistencies in the 2019
Annual Budget, AIP and
LDRRMFIP contrary to
existing government laws,
rules and regulations, thus
negatively affects the trans-
parency and accountability
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
to utilize the National Disaster
Preparedness Plan (NDPP) as one
of the reference documents in its
effort of ensuring that the City and
its stakeholders are able to better
prepare to anticipate, cope with
and recover from any disasters.
We further recommended that the Partially
CDRRMO ensure that the Implemented
minimum standards on the
structure, system and policies,
plans, data requirements,
trainings, equipage, and service
delivery, as established in the
NDPP, are fully complied with.
We recommended the following: AAR
2019
1. The CDRRMC should Partially
ensure that programs, projects, Implemented
and activities for the disaster risk
reduction and management be
properly identified and be
presented in such details in the
Local Disaster Risk Reduction and
Management Fund Investment
Plan (LDRRMFIP), and

141
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
eventually incorporated in the
Local Disaster Risk Reduction and
Management Plan (LDRRMP) and
integrated into the Annual
Investment Plan (AIP) which is an
integral part of the Annual Budget
of the City; and
of the City of Digos in the
use of its disaster risk re-
2. The Local Chief Executive Partially
duction and management
to ensure that programs, projects Implemented
fund.
and activities in the appropriation
for Local Disaster Risk Reduction
and Management Fund in the
Annual Budget are properly
presented as to components (70%
Pre-disaster, 30% QRF), and the
nature of expenditures (PS,
MOOE, CO).
12. Monthly Reports on We recommended that the AAR Partially
Sources and Utilization of City Disaster and Risk Reduction 2019 Implemented
Local Disaster and Risk Officer, in coordination with the
Reduction Management Accounting Office, submit the
Fund (LDRRMF) were not Report on Utilization of LDRRMF
submitted contrary to Sec- for CY 2019. Henceforth, the
tion 5.1.5 of COA Circular following courses of action may be
2012-002 dated September considered to achieve timely
12, 2012 and Section 4 (25) submission of the report:

142
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation

a. The accounting office to

provide the CDRRMO the
necessary data, on a
monthly basis and not on a
of IRR OF RA 10121, thus, quarterly basis.
determination of its appro-
priate utilization and ac- b. The CDRRMO to assign at
counting could not be prop- least one (1) personnel that
erly established. will be primarily
responsible to prepare all
documentary requirements
and reports, including the
report on the utilization of
LDRRMF.
13. The inability of the con- We recommended to the AAR
tractor to complete the con- management to: 2019
struction of Sanitary Land
Fill costing P29,984,643.79 1. Expedite the
compels the City Govern- implementation of the Safe Fully
ment to continue maintain- Closure and Rehabilitation Plan Implemented
ing a controlled dumpsite and stop the use of controlled
contrary to RA 9003, dumpsite pursuant to Section 37 of
hence, exposing its con- RA 9003; and
stituents to health risks and
may significantly threaten 2. For whatever the outcomes
the natural resources sur- of the feasibility study, fast track Fully

143
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
the Implemented
rehabilitation/completion/construc
tion of the sanitary landfill without
rounding the area.
sacrificing the scrutiny of the
design and plan as required by RA
9003.
14. The present composition of We recommended that the AAR Partially
the City Solid Waste Man- CSWMB be reconstituted to 2019 Implemented
agement Board (CSWMB) conform to the membership
is not compliant with the requirements stipulated under
membership requirements Republic Act 9003 in order to
of Section 12 of Republic optimize the involvement of the
Act 9003, hence, the effi- City’s constituents in the effective
cient and effective imple- implementation of the plans and
mentation of plans and pro- programs embodied in their 10-
grams, as well as the per- Year Ecological Solid Waste
formance of duties and re- Management Plan..
sponsibilities, were not en-
sured.

15. Expenditures totaling We recommended to Management AAR

P591,767.87 were inappro- the following: 2019
priately charged against the
Special Education Fund 1. Stop the practice of
(SEF) due to the inability charging against the SEF expenses Fully
of the management to prop- which are not related to nor Implemented
erly identify disbursements included in the list of prioritized

144
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
activities and monitor the proper
utilization of the fund to avoid
disallowances in audit;
2. Maximize the utilization of
authorized under the
the SEF to attain its objectives and Partially
DepEd-DBM-DILG Joint
consider allocating amounts to Implemented
Memorandum Circular No.
projects, programs and activities
1, s. 2017, thus defeating
that could address the needs of
the purpose for which the
every school; and
fund was intended.
3. Submit justifications as to
why those expenses were charged
against the SEF. Fully
Implemented

16. The SEF Budget amount- We recommended to the AAR Partially

ing to P12,100,000.00 did
not include allocation for
Early Childhood Care and
Development (ECCD) Pro-
grams as mandated by Re-
public Act 10410 or Early
Years Act of 2013, thus
children four (4) years and
below were deprived of the
benefits that could be de-
rived therefrom.
Management, through the Local 2019 Implemented
School Board, to ensure that
programs, projects and activities
for the Early Childhood Care and
Development be incorporated in
the SEF Budget in accordance
with Section 7 (b) of RA 10410.

145
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
It was recommended that retention AAR Partially
17. Ten percent (10%) reten-
money amounting to ten percent 2019 Implemented
tion in the aggregate
of the amount due the contractor
amount of P4,727,762.97
be deducted to cover the cost of
covering progress pay-
uncorrected discovered defects
ments of sixteen (16) infra-
and third party liabilities pursuant
structure projects were not
to Section 6 of the IRR of RA
deducted from the amount
9184.
due to the contractor con-
trary to Section 6 of the
Accounting personnel assigned in Partially
Revised IRR of RA 9184,
the processing of claims on Implemented
hence the City Government
infrastructure projects was also
is not covered by losses
recommended to attend a seminar
due to uncorrected discov-
on RA 9184 to make her aware of
ered defects and third party
the documentary requirements in
liabilities.
the payment of infrastructure
projects.
18. Liquidated damages in the It was recommended that AAR Not Implemented
amount of P301,517.87 for Inspection Report, as well as 2019
the delay in the completion Statement of Time Elapsed as of
of the Construction of 2- expiry date and final completion
Storey Market Building/Di- of all contracts, be submitted and
gos Business Center were attached to the disbursement
not deducted from the pay- voucher for final payment to
ment of the contract price determine whether liquidated
in the amount of damages shall be imposed
P167,398,331.00 pursuant pursuant to Section 8, Annex “E”

146

Audit Observations
to Section 8.1 Annex “E”
of the Revised IRR of RA
9184, thereby defeating
government’s commitment
and effort to adhere to the
principle of accountability
and equity in the procure-
ment process.
19. Latest income and business
taxes were not subjected to
post-qualification hence
compliance by the Lowest
Calculated Bid (LCB) of
BIR rules and regulations
were not verified contrary
to Section 34 of the Re-
vised Implementing Rules
and Regulations of RA
9184.
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
of the IRR of RA 9184.
It was recommended that AAR Fully
the BAC serve Notice to bidders 2019 Implemented
with Lowest Calculated Bid and
require them to submit the latest
income and business tax returns
filed and paid through the BIR
Electronic Filing and Payment
System (eFPS) within five (5)
calendar days from receipt thereof
pursuant to Section 34.2 of the
Revised IRR of RA 9481 and
paragraph 28.2 Section II. -
Instructions to Bidders.
It was also recommended that the
Technical Working Group include Fully
the latest income and business tax Implemented
returns filed and paid through the
BIR Electronic Filing and
147
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
Payments System among the
documents to be validated and
verified during the post-
qualification process which will
be properly indicated in the Post-
Qualification Report.
20. Drawings/Plans and Speci- It was recommended to AAR Fully
fications were not included include Drawings/Plans and 2019 Implemented
as an integral part of the Specifications as an integral part
contract agreement which of the contract agreement being
may result in confusion and entered by the City Government
run counter in the use of and various contractors in
standard form of bidding accordance with Section 6 of
documents contrary to Sec- RIRR of RA 9184 and the use of a
tion 6 of the IRR of Re- standard form of contract
vised Republic Act 9184. agreement provided in the
Philippine Bidding Documents.

Also, as an integral part of

contract agreement, Fully
Drawings/Plans should also be Implemented
part of documents to be submitted
to the audit team in compliance
with COA Circular No. 2009-001
on the submission of government
contracts to the Commission on
Audit.

148
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
21. Notice of award and Notice It was recommended that AAR Fully
to Proceed were published the BAC and City government 2019 Implemented
in the PhilGEPS beyond require the BAC Secretariat to post
three (3) and fifteen (15) the Notice of Award and Notice to
calendars days, respec- Proceed in the PhilGEPS within
tively from its issuance there (3) and fifteen (15) calendar
contrary to Section 37 of days from their issuance pursuant
the Revised IRR of RA to Section 37 of the Revised IRR
9184 thereby commitment of RA 9184.
and government’s effort to
promote transparency in
the procurement process is
not achieved.
It was recommended that AAR Fully
22. The start date of the con-
extra care and effort should be 2019 Implemented
tract prescribed in Section
exercised in accomplishing
V. Special Conditions of
pertinent provisions of Section V.
the Contract is contrary to
SCC of bidding documents to
Section 37 of the Revised
prevent confusion due to
IRR of RA 9184, thereby
contradictory provisions with
creating confusion in deter-
Section 37 of the Revised IRR of
mining the effective date of
RA 9184.
the contract.
23. The grant of five (5) exten- We recommended management to: AAR
sions and failure to impose 2019
liquidated damages 1. Impose liquidated damages Fully
amounting to P476,855.90 in the amount of P476,855.09 for Implemented

149
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
the period covered February 11,
2019 to May 27, 2019 in
accordance with Items 8.1 and 8.4
of Annex E of RA 9184.

2. Strictly adhere to the

provisions of RA 9184 in the Fully
in the completion of Public
granting of time extensions, Implemented
Market Building (Dry Sec-
specifically Items 6.1, 10.1, 10.2,
tion-Phase 1) costing
10.4, 10.5 of Annex E, and the
P12,257,086.64 run counter
contract agreement to preclude
with pertinent provisions of
suspension and/or disallowance in
RA 9184 and the contract
audit.
of agreement, casting doubt
on the legality of the trans-
3. Formally terminate the
actions.
contract and forfeit the
performance bond in accordance Fully
with Section 69 of the Revised Implemented
IRR of RA 9184.

4. Blacklist Kriz Karlo Fully

Construction. Implemented
24. The City of Digos was de- We recommended the City Mayor AAR
layed by 4 to 238 days in to: 2019
furnishing the Audit Team
with copies of contracts 1. Direct the BAC to devise Fully
and its supporting docu- effective measures in furnishing Implemented

150
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
ments amounting to P506 the Audit Team with copies of the
million for goods and infra- contracts together with the
structure projects, for tech- complete supporting documents
nical review, contrary to within the reglementary period to
COA Circular No. 2009- facilitate a timely review,
001 dated February 12, evaluation and inspection of the
2009, thus, timely evalua- goods, services and infrastructure
tion of compliance with the projects entered into by the City.
requirements of applicable
rules and regulations, com- 2. Direct the City Engineer to
pleteness of documentary submit a request for inspection of Fully
requirements, and initial completed projects to carry out the Implemented
evaluation that the contrac- technical evaluation process of
tual covenants are not dis- subject infrastructure projects.
advantageous to the gov-
ernment were not ensured.
25. Hiring of forty-five (45) We recommended the following AAR Reiterated in
consultants, whose func- courses of actions: 2019 this AAR
tions could be performed
by regular plantilla person- 1. Stop hiring consultants Not
nel, was not in accordance when there are regular employees Implemented
with Sections 2 and 4.1 capable of rendering services to be
Annex B of the Revised required.
Implementing Rules and
Regulations (IRR) of Re- 2. In case there is really a
public Act (RA) 9184 need for consultants, engage only
thereby casting doubt on on experts in their respective Fully

151
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
fields and observe the rules and Implemented
regulations cited in RA 9184,
specifically the Manual of
Procedures for the Procurement of
the legality of the payment Consulting Services.
of consultancy fee amount-
ing to P2,277,946.77. 3. Submit justification as to
why the management hired the Fully
abovementioned consultants Implemented
without adhering to the provisions
of RA 9184.
26. The City of Digos has not We recommended that AAR
yet established a Gender Management: 2019
and Development (GAD)
Database due to the discon- 1. Direct the CPDO, in Partially
tinuance of its Community- coordination with the GAD Focal Implemented
Based Monitoring System Point, to spearhead the
(CBMS), a project identi- establishment of the GAD
fied to be the source of sex- Database, manual or electronic,
disaggregated data and consisting of sex-disaggregated
other GAD related infor- data and other GAD-related
mation, resulting in the in- information;
clusion of non-gender re-
sponsive projects, pro- 2. Ensure the effective Partially
grams and activities (PPAs) implementation of the database Implemented
in their CY 2019 GAD that contains systematically
Plan and Budget (GPB) gathered and regularly updated

152
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
information relevant to gender-
responsive planning,
programming, and policy
formulation; and

3. Thoroughly evaluate the

amounting to P44.77 mil-
data gathered from the database to Partially
lion.
come up with gender-responsive Implemented
and gender-sensitive plans and
programs which are in accordance
with the GAD mandate.

27. A number of government We recommended that the

vehicles issued to City Of- Local Chief Executive:
ficials and employees do
not bear the markings of
“For Official Use Only”
and the name of the City
under it contrary to the pro-
visions of COA Circular
No. 77-61, thus, the use of
the said government vehi-
cles, as well as the related
fuel consumption, may not
be properly regulated.
1. Instruct the City General
Services Officer to conduct Not
an inventory of all the vehi- Implemented
cles owned by the City and
implement the required
markings of “For Official
Use Only” in a prescribed
size of three (3) inches with
the name of the City under
it.

153
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
2. Require the City General
Services Officer to coordi- Not
nate and follow-up with the Implemented
car dealer for the issuance of
official plate numbers which
shall be the basis for the ap-
plication of government
plate number with the Land
Transportation Office
(LTO).
We recommended to stop the AAR Fully
28. Cash advances of three (3) practice of transferring cash 2019 Implemented
Special Disbursing Officers advances to safeguard government
(SDOs) with an aggregate funds to loss and/or misuse and to
amount of P6,656,657.00 avoid delay in liquidation.
were transferred to event Moreover, management may
organizers who are either increase the number of bonded
permanent employee, non- Special Disbursing Officers to
organic personnel or per- cater the needs of the agency in
sons not connected to the times of major
City Government contrary activities/celebration of the LGU.
to COA Circular 97-002,
causing a delay in liquida- Likewise, strictly adhere to COA
tion and posing a risk of Circular 97-002 to preclude the Fully
loss or misuse of funds. issuance of Notice of Implemented
Suspension/Disallowance in audit.
29. The City of Digos could We recommended to the Local AAR Partially

154

Audit Observations
have earned an additional
income of P11,349,189.72
had it diligently enforced
collection on delinquent
market rentals that can be
used to improve facilities
and other developmental
projects pursuant to its eco-
nomic and social objec-
tives.
30. The Community Fish
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
Chief Executive to direct the City 2019 Implemented
Treasury Office (CTO) and the
City Economic Enterprise
Department to coordinate with
each other and come up with a
better set-up on how the two
offices can work effectively to
collect market rentals and enforce
all the provision of the Code on
Economic Enterprise.
We further recommended that the Partially
CTO and City Economic Implemented
Enterprise Department coordinate
and exhaust all their efforts to
collect the above listed delinquent
market rentals, and imposed
necessary sanctions, such as 25%
penalties of the amount of
delinquency, 10% interests of the
amount of delinquency plus
penalties, and revoke the lease
contracts of those registered
market lessees with severe
violations with the Code on
Economic Enterprise.
We recommended to the City AAR
155
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
Mayor to direct the CEO and/or 2019
Landing Center (CFLC) fi- CAO to fast track the:
nanced by the Bureau of
Fisheries and Aquatic Re- • Improvement of parking Fully
sources (BFAR) costing area Implemented
P2,998,479.76 remained
idle since its completion in • Installation of the electrical Fully
2018 and eventually be- and water lines Implemented
came defective after suc-
cessive quakes, thus de- • Formulation of operational Fully
priving the end-users of the plan for approval by BFAR so that Implemented
benefits therefrom as they operations of the CFLC may
continued to incur a rental commence
cost in private fish land-
ings. • Rehabilitation of the Fully
damages of the building Implemented
31. Interest-free loans amount- We recommended to the City AAR
ing to P750,000.00 granted Mayor the following courses of 2019
to three (3) cooperatives actions:
with no stable financial
condition may no longer be 1. Require the Committee to Partially
repaid because in-depth conduct an in-depth evaluation of Implemented
evaluation was not empha- the CSO/NGO/PO applicants for
sized by the accreditation/ accreditation before granting
screening committee; loans. If also possible, check the
hence, may result in technical/professional background
wastage of funds. the officers/board of

156
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
directors/board
members/employees.

2. Consider re-evaluation of Partially

the qualifications and financial Implemented
stability of existing accredited
CSOs/NGOs/POs and require
those who failed in the evaluation
to comply with the minimum
qualifications before granting
loans and/or other financial
assistance.

3. Strictly follow the

guidelines of COA Circular 2007-
001 and the newly issued DILG Fully
MC 2019-72 dated May 22, 2019 Implemented
(a revision of DILG MC 2016-97).

32. Existence and condition of We recommended management to AAR Partially

agency’s Property, Plant
and Equipment valued at
P372,124,554.18 or 19% of
its total assets of
P1,972,006,545.35 as at
December 31, 2018 were
not validated due to failure
conduct physical inventory and 2018 Implemented
submit the required Report on the
Physical Count of Property, Plant
and Equipment in accordance with
the rules and regulations provided
by COA. Reinforce the Inventory
Committee and emphasize the

157
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
of the management to sub- meeting of the legal deadline.
mit on time the Report on
the Physical Count of Prop-
erty Plant and Equipment
(RPCPPE), thus the
amount presented in the fi-
nancial statements cannot
be fully relied upon.
33. Projects already completed We recommended the AAR The Ledger Due to lack of
but still recorded as Con- management to: 2018 Section Head manpower, the
struction in Progress –In- already assigned
frastructure Assets and 1. Direct the engineering depart- notified the Partially personnel of the
Construction in Progress – ment to submit the necessary engineering Implemented said
Building and Other Struc- supporting documents of the department to transactions/acco
tures amounting to above-mentioned completed submit the unts was busy
P13,930,966.09 and projects to the accounting de- necessary with other
P1,972,821.62, respec- partment; and supporting matters held in
tively, thus affecting the documents of concern by CEO;
fair presentation of finan- 2. Direct the accounting depart- the above- thus, the required
cial statements due to the ment to prepare the necessary mentioned Partially supporting
non-provision of the related adjusting entries to reclassify completed Implemented documents are
depreciation of the said as- said Construction in Progress projects to the still unavailable.
sets. accounts to their appropriate accounting
asset account if the necessary department;
documents are already at hand. moreover, the
Provide the appropriate depre- accounting
ciation expenses for deprecia- department

158
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
ble assets. prepared the
necessary
adjusting
entries to
reclassify said
Construction in
Progress
accounts to
their
appropriate
asset account
and provided
the appropriate
depreciation
expenses for
the depreciable
assets.
However, there
were asset
accounts
needed to be
clarified with
CEO due to
lacking of
attachments
required to
finalize its

159
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
reclassification
.
34. Property, Plant and Equip- We recommended the following: AAR A Sangguniang Due to the
ment (PPE) with a net book 2018 Panlungsod sudden change
value of P38,081,250.84 1. To unload the management of Resolution was Partially of
were not derecognized monitoring and reporting the issued securing Implemented administration,
from the books as at year- authority to the the said
above-mentioned properties,
end even though control City Mayor to observation was
and benefits would no secure from the Sangguniang formally set aside since
longer accrue to the City, Panlungsod authority of the transfer the this was not
contrary to the provisions City Mayor to formally trans- above reiterated and
of PPSAS 1 and 17, fer the above properties to the properties to dealt with the
thereby affecting the fair respective users/beneficiaries the respective new LCE.
presentation of the finan- thru a Deed of Donation or a users/beneficia Furthermore, the
cial statements as at De- ries thru a previous
Memorandum of Agreement
cember 31, 2018. Deed of administration
(MOA); and Donation or a was caught up
Memorandum between other
of Agreement matters
(MOA) after concerned before
letter request to and after
do such was election.
sent.

No JEV was Partially

2. Require the City Accountant to yet drawn to Implemented
draw a JEV derecognizing the derecognize
assets from the books of the
160
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
City, and furnish the respective the assets from
beneficiaries a copy of the JEV the books of
and MOA to facilitate the the City, and
recording of same in the re- be furnish the
spective books of accounts of same to the
the donee. In the event that the respective
donee has no complete set of beneficiaries,
books like the case of some since, no Deed
DepEd agencies, the recogni- of Donation or
tion of assets shall be taken-up a
by DepEd Division Office or a Memorandum
National High School that is of Agreement
considered as an implementing (MOA) was
unit, where the donee belongs. created in
order to fully
transfer such
assets to its
respective
donees.
35. Completed projects funded We recommended management to: AAR A Sangguniang Due to the
by DILG under its CY 2018 Panlungsod sudden change
2016 Bottom-up Budgeting 1. Secure from the Sangguniang Resolution was Partially of
(BuB) with a total cost of Panlungsod an authority of the issued securing Implemented administration,
P2,559,704.50 were not City Mayor to formally trans- authority to the the said
derecognized as properties fer the above-mentioned prop- City Mayor to observation was
of the City as at year-end erties to the respective users/ formally set aside since
even though the control beneficiaries thru a Deed of transfer the this was not

161
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
and benefits would no Donation; and above reiterated and
longer accrue to the City, properties to dealt with the
contrary to the provisions 2. Require the City Accountant to the respective Partially new LCE.
of PPSAS 1 and 17, draw JEV derecognizing the users/beneficia Implemented Furthermore, the
thereby affecting the fair assets from the books of the ries thru a previous
presentation of the finan- City and furnish the respective Deed of administration
cial statement as at Decem- beneficiaries a copy of the JEV Donation or a was caught up
ber 31, 2018. and MOA to facilitate record- Memorandum between other
ing of the same in the respec- of Agreement matters
tive books of accounts of the (MOA) after concerned before
donee. In the event that the letter request to and after
donee has no complete set of do such was election.
books like the case of some sent.
DepEd agencies, the recogni-
tion of assets shall be taken-up No JEV was
by DepEd Division Office or a yet drawn to
National High School that is derecognize
considered as an implementing the assets from
unit, where the donee belongs. the books of
the City, and
be furnish the
same to the
respective
beneficiaries,
since, no Deed
of Donation or
a

162
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
Memorandum
of Agreement
(MOA) was
created in
order to fully
transfer such
assets to its
respective
donees.
36. Programs, Projects or Ac- We recommended the City Mayor AAR As of the year Partially Due to time
tivities (PPAs) undertaken to direct the CDRRMO to identify 2018 2019, there Implemented constraint of the
by the agency under its PPAs under LDRRMF that is were PPAs previous
70% mitigation fund were aligned with its CILDRRMP and already administration
not fully aligned with its implement appropriate PPAs, designed to and change of
Comprehensive and Inte- especially to the areas identified promote the new set of
grated Local Disaster Risk in the CILDRRMP, which are mitigation of officials,
Reduction and Manage- vulnerable to disasters. hazards that designed PPAs
ment Plan (CILDRRMP), uninspected for this budget
thus, may expose the con- calamities may was not taken
stituents of the hazard the bring. much emphasis
calamities may bring. However, not not until the
all areas recent incident
indicated at that took place in
CILDRRMP the City.
which are
vulnerable to
disasters were

163
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
taken much
emphasis on
the said PPAs
due to time
constraint of
the previous
administration.
Moreover, the
new
administration
was still in
recognition of
the
implementatio
n of the
designed PPAs
by the previous
administration.
37. The Programs/Projects/ We recommended the City Mayor AAR As of the year Partially Due to time
Activities (PPAs) under- to direct the CDRRMO to 2018 2019, there Implemented constraint of the
taken under its 70% Miti- formulate and implement a were PPAs previous
gation Fund amounting to comprehensive and integrated undertaken to administration
P29 million devoted only LDRRMP in accordance with the generally and change of
to two thematic areas of national, regional and provincial formulate and the new set of
disaster risk reduction and framework, and policies on implement a officials,
management, contrary to disaster risk reduction in close comprehensive designed PPAs
provisions of Joint Memo- coordination with the local and integrated for this budget

164
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
randum Circular No. 2013- development councils. It should LDRRMP in was not taken
1 of NDRRMC, DBM, and encompass the four (4) thematic accordance much emphasis
DILG, thus, the agency’s areas of disaster risk reduction with the not until the
constituents including their and management such as disaster national, recent incident
properties may be vulnera- prevention and mitigation, regional and that took place in
ble to disasters due to the disaster preparedness, disaster provincial the City.
absence of PPAs devoting response, and disaster framework,
to prevention and mitiga- rehabilitation and recovery. and policies on
tion. disaster risk
reduction in
close
coordination
with the local
development
councils.
However, not
all PPAs under
the disaster
preparedness
and mitigation
was fully
materialized
due to time
constraint of
the previous
administration
and presence

165
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
of new set of
officials who
are still in
familiarity
with the
existing PPAs
designed.
38. The minimum standards We recommended the City Mayor AAR To strictly Partially The set-up of
and requirements for the to direct the City Environmental 2018 impose the Implemented training was still
collection, transport, and and Natural Resources, and City proper wearing held-up
handling of solid wastes Health Office to take the following of protective momentarily due
were not complied, thus, courses of actions: equipment and to other essential
collectors and other person- paraphernalia tasks needed to
nel directly dealing with it 1. Strictly impose the proper wear- of the be prioritized by
are exposed to the hazards ing of protective equipment and collectors and CHO. Moreover,
of handling solid wastes. paraphernalia of the collectors other personnel changes of
and other personnel directly directly assigned
dealing with the collection of dealing with personnel as
solid wastes; and the collection garbage
of solid wastes, collectors did
2. Provide the necessary training the CENRO happen upon
to the collectors and personnel department change of
to ensure that the solid wastes head issued a administration.
are handled properly in accor- memorandum
dance with the guidelines pur- addressed to
suant to the Act. All personnel every
assigned in the garbage collec- personnel

166
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
tion must have a Certificate of concerned.
Training as proof that he under-
gone proper training or orienta- Also, the
tion. CENRO
coordinated
with the CHO
regarding the
provision of
necessary
training to the
collectors and
personnel to
ensure that the
solid wastes
are handled
properly in
accordance
with the
guidelines
pursuant to the
Act, however,
since the CHO
was still
preoccupied
with other
underlying
responsibilities

167
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
, an update for
possible set-up
of training was
done
continually by
CENRO.
39. The City Government of We recommended the City Mayor AAR
Digos was not able to fully to direct the CSWMB and CENRO 2018
implement program, to do the following courses of
projects, and activities and actions:
mandates embodied in the
City Solid Waste Manage- 1. Review the City Solid Waste Not Implemented
ment Plan pursuant to R.A. Management Plan vis-à-vis with
No. 9003, resulting in non- the deficiencies noted and try to
realization of its goals on point out the reasons why the
solid waste management Plan was not effectively imple-
towards public health and mented. Adopt other measures
environmental protection. or even revise the existing one
to suit it with the existing condi-
tion;

2. Closely involve the barangay of- Not Implemented

ficials in the strict implementa-
tion of the existing environmen-
tal laws and intensify the infor-
mation campaign on the “no
segregation, no collection pol-

168
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
icy”;

3. Monitor the establishment of

MRF in the barangay level. Cre- Not Implemented
ate a business opportunity that
will encourage the barangay and
its constituents to support the
project;

4. Adopt specific revenue-generat-

ing measures to promote the vi- Not Implemented
ability of its Solid Waste Man-
agement Plan; and

5. Address the other deficiencies

noted to comply with the man- Not Implemented
dates provided in R.A 9003 and
CSWMP.
40. The existing procedures in 1. Introduce additional systems AAR The CTO in
the collection of fees for and processes to address exist- 2018 coordination
the operation of Digos City ing weak points in the collection with OCEEM
New Terminal were inade- such as but not limited to: installed
quate that may result in un- CCTV cameras Partially
der-collection and/or pilfer- a. Adoption of a regular monitor- with the said Implemented
ages. Likewise, facilities in ing system and/or closer super- area which is
the comfort rooms were vision by a responsible officer vulnerable to
found defective, thus, cre- such as but not limited to the under-

169
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
ate dissatisfaction on the collection
part of the users. • Inspection and review team to and/or
check that corresponding cash pilferages. As
tickets are issued by the desig- well as conduct
nated collectors; and that collec- of periodic
tions were properly made, re- reshuffling of
ceipted, remitted and accounted collectors to
for; deter
• Adopt systems and procedures familiarity.
such that the issuance of cash Also, surprise
tickets are consistently made; cash counts
the possibility of non-issuance, should be
recycling or misuse is mini- frequently
mized if not eradicated; made by
• Surprise cash counts should be authorized
frequently made by authorized examiners.
examiners.

b. Conduct periodic reshuffling of

collectors to deter familiarity.

2. Require the contractor to imme-

diately rectify the defects, since
the defects took place within the
warranty period. If this is not
possible, the agency may use
the 10% retention money in ac-

170
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
cordance with the provision of Partially
R.A 9184. Implemented

41. The income could have 1. Coordinate and involve the AAR Not Implemented
been augmented had col- barangays officials whenever a 2018
lection of delinquent RPT property could not be located
and SET been exhausted since they also benefit from the
and intensified, thus, de- collection of the corresponding
priving the City of addi- property tax;
tional income that could
have been used to finance 2. Strategize a scheme in schedul- Not Implemented
more development pro- ing regular or periodic follow-
grams and projects for the up collection; and
welfare of its constituents.
3. For unresponsive taxpayers, Not Implemented
apply stringent approach using
legal remedies in the collection
of delinquent taxes.
42. Some Projects, Programs We recommended to the City AAR Not Implemented
or Activities (PPAs) in the Mayor to direct the City’s Gender 2018
2018 Annual GAD Plan Focal Point System (GFPS) to set
and Budget (GPB) were the GAD agenda or identify
not based on GAD mandate priority gender issues to be

171

Audit Observations
or gender issues, thus, may
compromise the attainment
of gender equality in the
community and/or within
the organization.
43. The necessity and reason-
ableness of hiring job order to require the HRMO to coordinate
(JO) personnel could not be with the heads of the departments
properly assessed and eval- and offices to incorporate or attach
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
addressed in consultation with
local functionaries and
stakeholders. The GAD agenda
shall be the basis for the annual
formulation of PPAs to be
included in the city’s GPB. The
GAD agenda or the priority gender
issues, mandates and targets may
be derived from review of GAD-
related laws and policies relevant
to the city, results of gender
analysis and/or gender assessment
using the sex-disaggregated
data/information from the city’s
GAD database, the Ecological
Profile, the CBMS and/or LGPMS
and NHTS-PR as well as
information from major programs
and services of the city that reflect
the gender gaps and/or issues
faced by program/service
beneficiaries, women and men
constituent and employees.
We recommended the City Mayor AAR Upon receipt Fully
2018 of the AOM, Implemented
the Accounting
Department

172
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
uated due to the absence of in their job order contracts a well- strictly notified
a clearly defined job de- defined job description stating all offices
scription, thus casting therein the specific work to be as- concerned that
doubt on the propriety and signed to each JO personnel to fa- job order (JO)
validity of the expenditures cilitate comparison with the actual personnel were
involving total wages of accomplishment reports, thus en- required to
P98,960,501.34 as of De- suring the protection of govern- incorporate or
cember 31, 2018. ment funds from unnecessary ex- attach in their
penditures. job order
contracts a
well-defined
job description
stating therein
the specific
work to be
assigned to
each JO
personnel to
facilitate
comparison
with the actual
accomplishme
nt reports.
44. Cashbooks were not main- We recommended the City Mayor AAR Upon receipt Fully
tained by eight (8) account- to direct the above-mentioned AOs 2018 of the AOM, Implemented
able officers (AOs) for to maintain individual cashbooks the CTO
cash advances and petty per fund for their cash advances department

173
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
cash fund, hence, the bal- and petty cash fund to establish head issued a
ance of accountability at their accountability at any point in memorandum
any point in time could not time. The same shall be duly notifying every
be established and reconcil- certified and updated regularly to AOs to
iation with the accounting facilitate reconciliation with maintain
records could not be made. accounting records. individual
cashbooks per
fund for their
cash advances
and petty cash
fund to
establish their
accountability
at any point in
time. The same
were also duly
certified and
updated
regularly to
facilitate
reconciliation
with
accounting
records.
45. Consolidated Report of We recommended the City Mayor AAR Upon receipt Fully
Collections and Deposits to direct the City Treasurer to 2018 of the AOM, Implemented
(RCDs) were not verified change the existing procedure in the City

174
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
and acknowledged and such a way that the CRCD and Treasurer
cashbooks not certified by CRAAF shall be duly certified by immediately
the City Treasurer, indica- the liquidating officer and for- changed the
tive of inadequate internal warded to the City Treasurer to existing
controls that may expose sign in the verification and ac- procedure in
funds to risk of irregulari- knowledgement portion before it is such a way that
ties. submitted to the accounting office the CRCD and
for recording. Henceforth, cash- CRAAF were
books shall be duly certified by the currently duly
City Treasurer. certified by the
liquidating
officer and
forwarded to
the City
Treasurer to
sign in the
verification
and
acknowledgem
ent portion
before it is
submitted to
the accounting
office for
recording.
Cashbooks
were now duly

175
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
certified by the
City Treasurer.
46. The City’s manner of issu- We recommended the City Mayor AAR Upon receipt Fully
ing one check for multiple to direct the City Treasurer to 2018 of the AOM, Implemented
disbursement vouchers to a discontinue the practice and issue the City
single payee is not consis- one check per disbursement Treasurer
tent with a sound system of voucher only. discontinued
internal control, thus, pos- the practice of
ing a risk of not detecting issuing one
any irregularities, deficien- check per
cies or illegality of the disbursement
transactions. voucher.
47. The City often resorted to We recommended the City Mayor AAR
piecemeal procurement for to: 2018
various supplies and mate-
rials amounting to 1. Require the GSO and BAC to Partially
P84,007,487.77 for CY consolidate each department’s Implemented
2018 due to the non-con- quarterly PRs and adopt Com-
solidation of each depart- petitive Bidding as the primary
ment’s Purchase Requests mode of procurement of sup-
(PRs) and absence of stock plies and materials unless other
room, hence, possible vol- circumstances require the adop-
ume discounts on bulk or- tion of alternative methods of
ders could have been real- procurement to promote econ-
ized including expected omy and efficiency in the use of
maximum use of time and government funds; and
efforts in processing their

176
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
2. Address the need of having a Not Implemented
procurement needs. stock room for the bulk pur-
chases of supplies and materi-
als.
48. Several deficiencies were We recommended the City Mayor AAR
noted in the implementa- to require the person in charge of 2018
tion of the Swine and Cat- the project to:
tle Restocking project
funded by the Department 1. Prepare the status of accom- Partially
of Agriculture and City of plishment of the project as at Implemented
Digos totaling to December 31, 2018 and deter-
P2,500,000.00 under the mine the status of the livestock,
Bottom-up Budgeting and require beneficiaries to give
(BUB) program for CY written justification had there
2015, thereby casting been any loss, death and other
doubts on the proper imple- unfavorable issues unreported to
mentation of the project the Office of the City Agricul-
and utilization of the en- turist;
trusted government fund.
2. Prepare written reports in every
succeeding site inspection and Partially
monitoring to be conducted, and Implemented
prepare accomplishment reports
to be submitted to the source
agency. This also applies to
other projects of the Office of
the City Agriculturist that re-

177
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation

3. Address the defects noted in the

“Livestock Dispersal Contract”
so that compliance thereof will
be assured; and
Partially
4. For succeeding similar projects, Implemented
commence the implementation
of the projects upon receipt of
the funding from various agen-
cies, so that difficulties/chal- Partially
lenges in the implementation of Implemented
the projects can be identified
ahead of the time to permit nec-
essary adjustments and modifi-
cations to successfully complete
the projects.

We also recommended to the

management, through the Local
Chief Executive, to make written
representation to the Regional
Executive Director of DA - RFO
XI and request for the approval to Not Implemented
use the remainder of the fund to
continue the project and reach out
more beneficiaries should the

178

Audit Observations
49. Five (5) completed projects
funded under the 20% De-
velopment Fund (DF) with 1. For project undertaken by the
an aggregate amount of
P4,321,570.65 were found
to have defects due to lack
of monitoring, supervision
and inadequate planning,
thereby exposing con-
stituents to discomfort, fire
and health hazards, worsen
condition of defects, and
affects durability and
strength of structures, and
depriving the intended ben-
eficiaries of the maximum
use and benefit of the said
projects.
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
management decides to use the
remaining fund instead of
remitting it back to DA – RFO XI.
We recommended the following: AAR
2018
administration, direct the City Fully
Engineer and project in-charges Implemented
to address the deficiencies cited
above before major defects oc-
cur whereby the City may need
significant budget to correct/re-
pair the project;
2. For projects undertaken by con-
tract, require all the concerned Partially
contractors to immediately rec- Implemented
tify the defects;
3. Direct the City Engineering Of- Fully
fice to strategize a scheme in Implemented
scheduling their personnel for a
regular monitoring and supervi-
sion to ensure the quality of
construction works of the con-
tractors and workers;
179

Audit Observations
50. The completion of Digos
City Public Market Dry
Section Phase I with a con-
tract cost of
P12,257,086.64 was de-
layed due to contractor’s
incapacity to employ
enough manpower, thereby
causing inconvenience to
the public and affecting the
efficiency in delivering the
much needed benefits of
the city’s constituents.
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
4. Address the need for the instal- Fully
lation of drywall partition of Implemented
health center in Brgy. Aplaya;
and
5. Conduct proper planning and Fully
site inspection before shortlist- Implemented
ing the project for best out-
comes.
We recommended the following: AAR
2018
1. The contractor shall be given a Fully
final warning and required to Implemented
come up with a more detailed
program of activities with
weekly physical targets, to-
gether with the required addi-
tional input resources. Onsite
supervision shall be intensified
and evaluation of project perfor-
mance shall be done at least
once a week. At the same time,
the Implementing Office shall
prepare contingency plans for
the termination of the contract
and/or take-over of the work by
administration or contract;
180
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation

2. Impose the appropriate Liqui-

dated Damages; and
Fully
3. Evaluate further the perfor- Implemented
mance of the contractor to de-
termine if disqualification from
participating in bidding or Fully
award of contract for infrastruc- Implemented
ture projects of the government
will warrant.
51. The City Government was We recommended the City Mayor AAR
not able to optimize its sup- to: 2018
port to strengthen and have
equal access to basic qual- 1. Identify projects that will allow Partially
ity education for its con- the beneficiaries to utilize them Implemented
stituents because projects for its intended purpose, by al-
funded under SEF worth locating funds that will ensure
P6.6 million were not fully completion of the project during
utilized and/or operational the calendar year; and
while P713,574.96 worth
of projects undertaken by 2. Determine cause of delay in the
administration were not procurement process for Fully
completed within the target projects undertaken by adminis- Implemented
date of completion, thus tration and establish measures
depriving the intended ben- to address the same in order to
eficiaries of the benefits prevent occurrence of similar

181

Audit Observations
that could have been de-
rived from those projects.
52. Six (6) infrastructure
projects with a total cost of
P8,136,328.38 funded un-
der the Special Education
Fund (SEF) which were re-
ported as 100% completed
were found to have
defects/deficiencies due to
lack of project monitoring
and supervision, thereby
depriving the intended ben-
eficiaries of the maximum
use of the said projects.
53. Existence and condition of
agency’s Property, Plant
and Equipment valued at
P291,940,316.16 or 17.6%
of its total assets of
P1,651,991,803.10 as of
December 31, 2017 were
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
deficiency in the implementa-
tion of annual projects.
We recommended that the City AAR
Mayor to: 2018
1. Require the CEO to notify the
contractors about the defects/de- Fully
ficiencies and require them to Implemented
immediately undertake neces-
sary measures and remedies to
avoid occurrence of major de-
fects; and
2. Direct the CEO to strategize a
scheme maximizing their per-
sonnel to perform close moni- Fully
toring and supervision of Implemented
projects to ensure that the con-
struction activities are accom-
plished religiously.
We recommended to the manage- AAR Not submitted Not Implemented Reiterated in the
ment to conduct physical inven- 2017 RPCPPE on CY 2018 AAR
tory and submit the required Re- time.
port on the Physical Count of
Property, Plant and Equipment in
accordance with the rules and reg-
ulations provided by COA. Rein-
182

Audit Observations
not validated due to failure
of the management to sub-
mit on time the Report on
the Physical Count of Prop-
erty Plant and Equipment
(RPCPPE) as required in
Section 124 of the Manual
on the New Government
Accounting System, thus,
the amount presented in the
financial cannot fully relied
upon.
54. Projects already completed 1. Direct the engineering depart-
but still recorded as Con-
struction in Progress – In-
frastructure Assets and
Construction in Progress –
Building and Other Struc-
tures amounting to
P19,162,035.34 and
P3,182,247.70 respectively,
contravene the provision of
Section 50, Volume I of
NGAS Manual for Local
Government Units, thus,
affects the fair presentation
of financial statements due
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
force the Inventory Committee
and emphasize the meeting of the
legal deadline.
AAR Not Implemented
ment to submit the necessary 2017
supporting documents of the
above mentioned completed
projects to the accounting de-
partment; and
2. Direct the accounting depart-
ment to prepare the necessary Not Implemented Noted CIP still
adjusting entries to reclassify formed part of
the above Construction in the ending
Progress accounts into an ap- balance as at
propriate asset account if the year-end 2018.
necessary documents are al-
ready at hand. Provide the ap-
183
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
to the non-provision of the propriate depreciation expenses
related depreciation of the if the asset is subject to depreci-
said assets. ation.
55. Delay in the implementa- We recommended to the manage- AAR Construction Partially Difficulty in
tion of project: Organic ment to fast track the implementa- 2017 has started but Implemented settlement of the
Farming/Production Facil- tion of said project to give due still not access road
ity with a project cost of consideration on the economic completed in
P1,120,000.00 conse- benefits and impacts on the recip- CY 2018.
quently deferred the attain- ient farmers/associations who are
ment of its objectives that the primary beneficiaries of the
promote organic agricul- project and the constituents as
tural systems and farming well.
technology that could have
benefitted the marginal
farmers/grower’s associa-
tions in selected barangays
of the city.
56. Programs/Projects/Activi- We recommended that the City AAR Not Implemented Reiterated in the
ties (PPAs) charged under thru its City Disaster Risk Reduc- 2017 CY 2018 AAR
the 70 percent Local Disas- tion Management Office (CDR-
ter Risk Reduction Man- RMO), in developing the City’s
agement Fund (LDRRMF) Local Disaster Risk Reduction
were only allocated and Management Plan (LDRRMP), it
implemented into two the- should consider the four (4) the-
matic areas of disaster risk matic areas of disaster risk reduc-
reduction and management, tion and management such as dis-
contrary to provisions of aster prevention and mitigation,

184
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
Joint Memorandum Circu- disaster preparedness, disaster re-
lar No. 2013-1 of NDR- sponse, and disaster rehabilitation
RMC, DBM and DILG, and recovery. This LDRRMP will
thus, agency’s constituents be the basis in the allocation of
including their properties the Local Disaster Risk Reduction
may be vulnerable to disas- Management Fund (LDRRMF).
ters due to the absence of
programs, projects and ac-
tivities pertaining to pre-
vention and mitigation.
57. The City’s Local Disaster We recommended to the Chief AAR Partially Only submitted 2
Risk Reduction Manage- Executive to require the CCDR- 2017 Implemented monthly reports
ment Council failed to sub- RMO to regularly submit the on the receipt
mit reports on the sources monthly Report on Sources and and utilization of
and utilization of the Local Utilization of the LDRRMF LDRRMF.
Disaster Risk Reduction through LDRRMC to the Office
and Management Fund of the City Auditor as required
(LDRRMF) to the COA under item 5.1.5 of COA Circular
Office as required by the 2012-002.
governing law and rules
and regulations.
58. Waste diversion target as 1. Review the City’s Solid Waste AAR Not Implemented Reiterated in the
embodied in the City’s Management Plan for purposes 2017 CY 2018 AAR
Ecological Solid Waste of ensuring its sustainability, vi-
Management Plan was not ability, effectiveness and rele-
attained, contrary to the vance in relation to local and in-
provisions of R.A No. 9003 ternational developments in the

185

Audit Observations
and its Implementing Rules
and Regulations (IRR),
thus, wastes hauled and
dumped to the dumpsite 2. Establish a system about the
were not minimized.
3. Monitor the implementation of
4. Adopt measures to promote and
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
field of solid waste manage-
ment;
City’s waste diversion target. Not Implemented
The said system should be con-
gruent to the City’s Solid Waste
Management Plan approved by
the Commission. The system
must include a performance in-
dicator to monitor the status of
diversion waste implementation
particularly its goal on the year
2023 that Digos City should
have a 100% diversion of waste
generated from its disposal fa-
cilities;
the City Solid Waste Manage- Not Implemented
ment Plan through its various
political subdivisions and in co-
operation with the private sector
and the NGOs;
ensure the viability and effec- Not Implemented
186
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
tive implementation of solid
waste management programs in
its component barangays espe-
cially the proper segregation of
waste and establishment of Ma-
terial Recovery Facility; and

5. Intensify the information, edu-

cation, communication and ad-
vocacy campaign programs of Not Implemented
the City especially on the segre-
gation, reduction, re-use and re-
cycling of wastes to encourage
constituents’ awareness on
Solid Waste Management Law
(Ordinance).
59. Various deficiencies were We required the BAC to thor- AAR Not Implemented Compliance to
found in the procurement oughly review the processes and 2017 procurement
activities and documenta- documentations of all procurement procedures still
tions for the construction of transactions. Make sure that all not observed.
2 Classrooms (One- documents are complete and infor-
Storey), Goma Elementary mation therein be accurate and
School, with the Approved consistent. Likewise, observe the
Budget Contract of timelines provided by RA 9184
P1,964,744.30, particu- and its IRR.
larly the requirements pro-
vided in various Sections

187
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
of the Revised IRR of RA
9184, thus, affects the in-
tegrity of the procurement
process of the said project.
60. Various deficiencies were We required the BAC to thor- AAR Not Implemented Compliance to
found in the procurement oughly review the processes and 2017 procurement
activities and documenta- documentations of all procurement procedures still
tions for the construction of transactions. Make sure that all not observed.
Additional Bay with Ap- documents are complete and infor-
proved Budget Contract of mation therein be accurate and
P2,244,799.24, particu- consistent. Likewise, observe the
larly the requirements pro- timelines provided by RA 9184
vided in Section 7.3.2 of and its IRR.
the Revised IRR of RA
9184, thus, affects the in-
tegrity of the procurement
process of the said project.
61. The City was not able to 1. The management will establish AAR Not Implemented Very low
adopt an effective scheme a system on how to collect effi- 2017 collection
on the collection of loans ciently the loan granted to vari- efficiency was
granted to NGOs/POs led ous NGOs/POs. Define the roles achieved
to the accumulation of and duties of the CLAP and the
huge balance amounting to CCDO from the granting and
P26,294,288.00 as of De- the collection of the loans, so
cember 31, 2017, with in- that we can establish the respon-
significant percentage of sibility and the accountability;
collections/liquidations as

188
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
of year-end, thus, pose a 2. Both the parties should revisit
risk that the said funds will the MOA and evaluate what are Not Implemented
not be collected. the terms in the said agreement
needed to be complied with and
what are the possible solutions
on the problems encountered by
both parties; and

3. Maintain complete records of

all borrowers including all the Not Implemented
necessary information that
could help the management in
evaluating whether the accounts
are considered impaired or not.
62. The agency was not able to We recommended that manage- AAR Fully Delays were still
furnish the Office of the ment strictly comply with COA 2017 Implemented incurred in the
City Auditor’s copy of Pur- Circular Nos. 96-010 dated August submission of
chase Orders within five 15, 1996 and 2009-001 dated Feb- Purchase Orders.
(5) days upon approval, to- ruary 12, 2009 to facilitate the re-
gether with the supporting view and evaluation process.
documents for review, and
Notice of Deliveries were
given beyond the required
hours in violation of COA
Circular No. 96-010 thus,
precluded the timely re-
view and evaluation of the

189
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
contracts/transactions and
validation of the deliveries
as to the existence of the
items purchased and con-
formity with the PO speci-
fications.
63. The City has not yet cre- We recommended to the manage- AAR Not Implemented No GAD
ated a Gender and Devel- ment to establish a GAD Monitor- 2017 Monitoring and
opment Monitoring and ing and Evaluation System as re- Evaluation
Evaluation (M&E) system, quired under Section 5.1 of Joint System was
thus, LGUs tracking of the Memorandum Circular No. 2013- established.
results of gender respon- 01 of the PCW, DILG, DBM and
sive and/or GAD-focused NEDA.
policies, programs and
projects during the three-
year term of the leadership
of the LCE could hardly be
carried out.
64. Funds for the implementa- 1. The Project-in-Charge sub- AAR Distribution Fully
tion of Bottom-Up Budget- mits the distribution list for 2016 List submitted Implemented
ing projects totaling the 11,250 pieces of rubber
P13,038,000.00 were not seedlings for validation;
fully utilized due to de- 2. Furnish the Audit Team with a
layed implementation such monthly physical and finan- Well taken Not Implemented Audit Team not
that only two projects cost- cial report submitted to the furnished with
ing P2,170,898.50 were DA-RFO XI also for valida- copy of the
completed out of nine tion; monthly physical

190
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
projects for implementation and financial
in CYs 2015 and 2016, 3. Consider the weather condi- report.
thereby contravening the tion in implementing projects Justified Fully
stipulations in the Memo- that are dependent on the Implemented
randum of Agreement weather for survival or the se-
(MOA) and defeating the lection of beneficiaries who
primary purpose of allevi- can commit to devote time
ating and reducing poverty. and effort to monitor the
project with 100% or at least
90% of survival rate to avert
wastage of government funds;

4. Require the Project-in-Charge

of the Fishery Project to sub- With 2 Partially
mit justification why four ben- completed Implemented
eficiaries were given complete projects during
set of fishing equipment and the year
gears when they have not at-
tended the project orientation
and pre-implementation meet-
ing as required in the MOA;
5. The LCE require the Project-
in-Charge to prioritize the
completion of the projects Complied Fully
funded from the BUB funds. Implemented
Address the issues and con-
cerns that delay/hinder the

191
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
early completion of the
project;

6. Cause the refund/return of ex-

65. Utilization of the Local
Government Support Fund
intended to fund the prior-
ity programs and projects
of the City was not fully
optimized due to the de-
layed implementation of
projects such that out of the
P25,000,000.00 appropri-
ated, only P14,320,718.23
or 57.28%% has been uti-
lized thereby leaving a bal- 2. The City should maximize the
cess funds to the Department
of Agriculture and to the Gen-
eral Fund (excess counterpart) Not Implemented Not yet
of completed projects; and refunded/
returned.
7. Require the City Accountant
to prepare appropriate adjust-
ing entries on the erroneous
charging of expenses.
Fully
Implemented
1. The LCE require the personnel AAR On-Going Partially
responsible in the implementa- 2016 Implementatio Implemented
tion of these projects to fast n
track the preparation of the pro-
grams-of-work utilizing the
funds provided for the purpose.
If the funds are no longer
needed, remit to the Bureau of
the Treasury in order to make
available funds for other LGUs;

192

Audit Observations
ance of P8,679,281.77 cov-
ering a four-year period
and thus defeating the pur-
poses for which such fund
was established and ulti-
mately depriving the in-
tended beneficiaries of the
immediate benefits that
could have been derived 3. The City should remit to the
had the projects been
promptly implemented.
66. The implementation of
DOLE-Livelihood
(Kabuhayan) Program was
not in accordance with the
Memorandum of Agree-
ment entered into by the
City with the DOLE and
existing rules and regula-
tions resulting in delay in
the delivery of immediate
benefits to the beneficiaries
thereby defeating the pri-
mary purpose of the pro-
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
use of the livelihood fund, and Partially The City planned
that any collection from the Implemented to condone the
NGOs/POs should be pro- receivables from
grammed for release to other NGO/POs.
qualified NGOs/POs taking into
account the guidelines of COA
Circular No. 2007-01; and
Bureau of the Treasury the ex-
cess amount from the completed Partially Excess funds
road construction projects total- Implemented were partially
ing P51,240.59. returned to
source agencies.
1. Reclassify the procured spare AAR Not Implemented No reports were
parts as inventory since these 2016 submitted as to
items were not yet delivered to the status of the
the beneficiaries; implementation
of the audit
2. Provide the City’s counterpart Not Implemented recommendation
of P425,000.00. Thereafter, s.
conduct the required training of
the beneficiaries’ officers and
staff to equip them with the
technical knowhow in running
the store;
193
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
gram. 3. Record the release as Due from Not Implemented
NGOs/POs to establish account-
ability upon implementation of
the project and release of the
motorcycle spare parts to the
beneficiaries. Credit the account
only upon submission of the liq-
uidation report;

4. Conduct monitoring and inspec-

tion on a regular basis as assur- Not Implemented
ance that the project will be suc-
cessful to help augment the in-
come of the members of the as-
sociation; and

5. Ensure the timely preparation

and submission of the Quarterly Not Implemented
and Terminal Reports.
67. The City Government con- 1. Require the Local Development AAR Partially There were still
tinually failed to provide a Council to come up with a de- 2016 Implemented some un-
detailed Annual Investment tailed Annual Investment Plan programmed
Plan contrary to existing (AIP) through consultation and amounts
rules and regulations to en- deliberation with the concerned appeared in the
able a clear direction and City and Barangay officials; AIP. This is an
smooth implementation of appropriation
the fund. 2. Incorporate in the AIP the com- readily available

194
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
plete description of the project, Partially for projects
exact location, intended benefi- Implemented identified during
ciaries and estimated cost of the year.
each project; and

3. Make sure that only those

68. The City Government still 1. Maximize the utilization of the
failed to maximize the uti-
lization of the 20% Devel-
opment Fund such that out
of P107,040,141.47 appro-
priated for the implementa-
tion of programs/projects
and activities,
P37,844,066.92 or 35.36% 2. Fast-track the implementation
remained not programmed
and P14,237,077.85 or
13.30% not implemented
(no obligation) or a total of
P52,081,144.77 or 48.66%
of unutilized funds contrary
to existing law, rules and
projects in the approved AIP Fully
will be implemented. Other- Implemented
wise, the Sanggunian should
pass a resolution for the rever-
sion, if warranted.
AAR Fully
20% Development Fund by 2016 Implemented
specifying in detail in the AIP
the programs, projects and ac-
tivities that are to be imple-
mented by the City for the year;
and
Partially Slow
of projects which are already Implemented implementation
identified and evaluate the via- was still noted
bility of projects which are not during the year,
implemented during the year for at 51% fund
appropriate reversion duly ap- utilization.
proved by the Sanggunian.

195
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
regulations, thereby depriv-
ing the general public of
the immediate services and
benefits due them.
69. Construction/ repair/reha- 1. Conduct surveys on different AAR With identified Fully
bilitation of school build- schools covered by the City to 2016 concerns from Implemented
ings and other school facil- ensure that all concerns are con- different
ities were not prioritized in sidered in the prioritization of schools and
the budget of the Special projects for possible inclusion there were
Education Fund, appropri- in the preparation of the SEF some provided
ating only P1,022,000.00 budget; with
or 9.13% of the total bud- appropriations
get of P11,200,000.00 con- 2. Review the reasonableness and
trary to the mandated prior- necessity of the amount pro- Partially Completion of
itized programs, projects vided for every expense item. Implemented the school
and activities under exist- Consider past transactions to building project
ing laws, rules and regula- come up with realistic budget, was limited to
tions thereby depriving the such that a bigger portion of the the budgeted
students/pupils of im- budget may be allocated for the amount. Hence,
proved classrooms and construction, repair and rehabil- possibility of
other school facilities con- itation of school buildings and partial
ducive to learning. other facilities; construction of
the building.
3. Consider the balances from the
continuing allotments consisting Fully
of excess funds from imple- Implemented
mented projects to be used as

196

Audit Observations
4. Implement projects lined up for
70. Non-coordination between
the outgoing and incoming
City’s Gender and Devel-
opment Focal Point System
caused inaction of both
parties thus, leaving GAD
activities unattended as
mandated under existing
laws, rules and regulations.
2. Closely coordinate with all con-
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
source of fund for the supple-
mental budget; and
the year funded from both the
Fully
current year and continuing ap-
Implemented
propriations especially on the
construction, repair and rehabil-
itation of school buildings and
other facilities.
AAR Fully
Be cautious of the timelines 2016 Implemented
provided under the
DBM/NEDA and the National
Commission on the Role of
Filipino Women Joint Circular
No. 2004-1 particularly in GAD
planning and budgeting stage as
this is the start off-point of all
other activities;
cerned offices/departments that
were provided with budget /ap-
propriations for GAD activities
to consistently report all accom-
197
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
plishments as against the plans
and budget to determine the ef- All activities in
ficiency of addressing gender each Fully
issues and concerns of their re- department Implemented
spective sectors and con- which were
stituents; and identified as
GAD related
1. Identify gender issues based on are considered
the result of gender audit, gen- in the Report
der analysis or sex disaggre- of GAD
gated data and other references disbursements.
to ensure that GAD projects are
responsive to agency’s prob-
lems and concerns that arise No GAD
from the unequal status of Database was
women and men including the Not Implemented established and
differential characteristics, roles other reports and
and expectations attributed to data related
women and men. thereto were not
prepared or
maintained.
71. Collection trend on Due 2. The CCDO and CLAP shall AAR Fully
from NGOs/POs showed a share in the number of benefi- 2016 Implemented
very minimal collection ciaries to be monitored to make
rate at only 1.18%, 0.23% it more manageable;
and 0.83% for the 20% De-
velopment Fund, General 3. The LCE require the CCDO and Partially CLAP

198
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
Fund Proper, and Trust CLAP to conduct ocular inspec- Implemented coordinator sent
Fund, respectively or an tion of the NGOs/POs’ business out demand
average collection rate of site and remind them of their re- letters to some
only 0.88% or P250,900.00 sponsibility to pay or liquidate NGOs/POs .
as against the total out- the funds granted to them as
standing balance agreed upon in the MOA; and
P28,278,892.66 as of De-
cember 31, 2016, contrary 4. Require also the submission of
to the provisions of the the monthly monitoring report Partially No monthly
Memorandum of Agree- as basis in what course of action Implemented monitoring
ment between the City and to take to enforce collection report of the
the beneficiaries and thus and/or liquidation. action taken by
depriving the City of addi- the management.
tional funds for the replica- However,
tion of the program. condonation of
receivables is
being considered
72. The existence, validity and 1. Create a committee to conduct AAR Fully No Physical
propriety of recorded cost the complete physical count of 2016 Implemented Count of all PPE
of Property, Plant and all property of the City as of was conducted.
Equipment amounting to December 31, 2016.
P689,729,001.96 as of De- RPCPPE was not
cember 31, 2016 is doubt- As previously recommended in submitted on
ful due to the failure of the prior years’ AAR, to facilitate time.
City to conduct a complete the early completion of the
physical count of the City’s physical count, coordinate with
property and to reconcile all the Department Heads to

199
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
the report with the account- provide the Committee with the
ing records in violation of list of PPEs in their department
existing rules and regula- for their validation;
tions.
2. The Office of the City General A Report was
Officer shall prepare the Report furnished to Partially The CGSO was
of Physical Count of Property, the Office only Implemented able to prepare
Plant and Equipment which lately thus, no the RPCPPE but
shall be reconciled with the ac- time to was not able to
counting records; copy fur- validate. submit a copy of
nished the Auditor’s Office; and the same to the
audit team on
3. Identify the unserviceable prop- time.
erties. Prepare the pertinent sup- The City had
porting documents then request already Fully
for inspection and disposal. identified the Implemented
unserviceable
properties &
also conducted
disposal.
However, there
were some
properties
whose
appraisal was
high thus,
subject for re-

200
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
appraisal.
73. Failure of the City Govern- We recommended to require the AAR Partially There were
ment to fully settle audit concerned responsible and liable 2016 Implemented persons
suspensions and disal- persons to settle the suspended and responsible who
lowances involving a total disallowed amounts totaling were no longer
amount of P19,529,739.41 P19,529,739.41 and connected with
and P1,786,218.56, respec- P1,786,218.56, respectively the City
tively may result in the pursuant to Sections 9.4 and 10.4, Government
maturing into disallowance Chapter III of COA Circular No. and/or retired
of the former and the diffi- 2009-006. /separated from
culty of collecting the lat- the government
ter in case of employees’ service.
retirement/ separation from
the service in violation of
pertinent rules and regula-
tions.
74. Cash advances granted to 1. The Accountant shall exert AAR Partially Demand letters
officials and employees in- more efforts to locate the 2015 Implemented were served for
volving a total amount of whereabouts of three (3) offi- the 3
P704,137.22 are not liqui- cials and employees with a total accountable
dated within the reglemen- unliquidated cash advance of officers with un-
tary period in violation to P34,894.00 which has been out- liquidated cash
COA Circular No. 97-002, standing for more than one year advances.
that resulted to understate- and demand immediate liquida-
ment of expense accounts tion thereof; and
by the same amount.
2. Demand the immediate liquida- Liquidated Fully

201
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
tion of the cash advance granted Implemented
to Atty. Allan Kadon, COM-
ELEC Election Officer in the
amount of P553,213.30.
75. Financial assistance 1. Exert effort to collect the re- AAR With partial Partially
granted to B MANS Coop- maining unpaid loan of 2015 liquidation of Implemented
erative was not in accor- P206,342.66; and P20,000.00
dance with COA Circular
No. 2007-001 dated Octo- 2. Implement the roll-over scheme Partially
ber 25, 2007, and 2.6 and or the replication of the project. Implemented
3.6 of the Memorandum of Program the release of the col-
Agreement and the policies lections received to benefit
and guidelines set by the other qualified NGOs/POs in
Department of Agriculture- accordance with the policies
Davao Integrated Develop- and guidelines set by DIDP.
ment Program (DA-DIDP)
thereby understating the
Due from NGOs/POs ac-
count, loan not fully paid
and roll-over scheme not
achieved.
76. The existence, validity and 1. Submit the documents in the AAR Not No reports/
propriety of recorded cost disposal of four (4) heads of 2015 Implemented documents were
of Work/Other Animals boar including the death of one submitted.
amounting to (1) boar, copy furnish the Ac-
P1,110,900.00 as of De- counting Office for appropriate
cember 31, 2015 is doubt- recording in the books of the

202
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
ful due to the incomplete- City; and
ness of the documents rela-
tive to its distribution and 2. Submit the criteria on the No reports/
disposal, failure to conduct screening/evaluation of the documents were
physical count and non-rec- prospective recipients/ benefi- submitted.
onciliation of accounting ciaries.
and property records in vi-
olation of Section 114 and
124 of the NGAS Manual
for Local Government
Units.
77. Lack of coordination be- 1. Proper coordination must be es- AAR Only the Fully No Report on the
tween the Bids and Awards tablished between the Bids and 2015 Office of the Implemented PPAs
Committee, City Engineer- Awards Committee, City Engi- City Engineer implemented by
ing and the City Planning neering, Budget and the City submits the the Offices of the
Development Offices re- Planning Development Offices Status on the CPDO, CSWD
sulted in unreliable infor- regarding the preparation of the Implementatio and other
mation and/or reports on all report on the PPAs imple- n of PPAs to concerned
projects/program/ activities mented and to be implemented COA. offices
being implemented by the by the City Government;
City Government during
the year in violation to the 2. See to it that reported PPAs are
pertinent provisions of reconciled against the records Fully
COA Circular No. 2013- maintained by the BAC, City Implemented
004 dated January 30, Engineering, City Budget and
2013. City Planning Development Of-
fices before submission to COA

203

Audit Observations
78. Disbursements involving a
total amount of
P1,027,264.59 were not
substantially supported
with information and docu-
ments to satisfy the condi-
tions set in Sec. 272 of RA
7160 and other existing
rules and regulations thus,
casting doubts as to neces-
sity and propriety of the
Reason for
Management Status of
Recommendations Ref Partial/Non-
Action Implementation
Implementation
for audit/validation; and
3. Require the concerned
official/City Engineering Office
to submit at the beginning of the Fully
year, the list of all on-going Implemented
projects and those that are to be
implemented during the year in
accordance with the provision
of 2.1 of COA Circular No.
2013-004 dated January 30,
2013 and provide our Office of
any corrections/revisions or
changes to the projects to be im-
plemented for our validation/
monitoring.
Submit duly certified distribution AAR Not Implemented No reports were
list of all sports supplies and 2015 submitted.
equipment and medals stating
therein the name of player/athlete/
awardee, event, quantity and kind
of equipment/medal and date of re-
ceipt to justify the necessity and
regularity of the reported expenses.
204
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
same.
79. Optimum benefits of 1. Provide the City’s counterpart AAR Partially Delays were still
project funds transferred to for the projects to be imple- 2015 Implemented incurred in the
the City Government of Di- mented by the City Social Wel- implementation
gos by the national govern- fare and Development Office. of projects
ment agencies were not Devise a system whereby pro- funded by
fully realized due to the de- curement can be accomplished National
layed implementation of or completed at reasonable pe- Government
these projects defeating the riod; Agencies.
purpose for which the
funds were intended for, in- 2. The City Health Office should Fully
dicating lack of vigilance calendar the activities to be un- Implemented
in the implementation of dertaken in line with the pur-
programs/projects thereby pose for which the funds were
depriving its constituents of received;
the benefits that could have
been derived had the in- 3. Reclassify the charging for the
tended programs/projects purchase of vegetable seeds, Fully
been faithfully imple- fertilizers and capability build- Implemented
mented. ing expenses of P126,460.00
which was erroneously charged
to the DA-RFO XI funds in-
stead of LGU counterpart as
stipulated in the MOA; and

4. Cause the return/refund to the

source agency if funds are no

205
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
longer needed to finance the
projects of other LGUs. Fully
Implemented
80. Honoraria to PLEB mem- 1. Require copy of Resolution AAR No action Not Implemented
bers involving a total from the Sangguniang Panlung- 2014 taken
amount of P213,400.00 sod and Association of
were paid despite non-sub- Barangay Captains appointing a
stantial compliance to member to the PLEB; and
DILG and NPC Memoran-
dum Circular No. 2002-010 2. Require the Head-Secretariat Not Implemented
and DBM- LBC No. 73 and Secretariat Staff to refund
dated January 10, 2001 the amount of P16,000.00 and
thus, cast doubts as to va- P28,800.00 respectively, repre-
lidity of the transaction. senting excess claim of hono-
raria. Otherwise, require them
to submit legal bases in support
thereof.
81. Collection efficiency on 1. The City Assessor’s Office AAR Actual Not Implemented Reiterated in the
Real Property Tax and Spe- should conduct actual field in- 2014 inspection of CY 2018 AAR
cial Education Tax on cur- spection/ validation of the prop- the properties
rent and prior years’ ac- erties included in their assess- is regularly
counts showed a minimal ment to determine the accuracy conducted by
collection rate of 38.07% of their records and to effect ap- the City
and 38.06% for current ac- propriate adjustment based on Assessor’s
counts and only 8.22% and the result of their field work; Office and
17.30% for prior years’ ac- claimed the
counts which deprived the 2. Instruct the City Treasurer to need for

206
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
City Government of addi- coordinate with the Barangay General Partially The CTO were
tional funds needed for the Officials to locate the present Revision but Implemented delivering
implementation of its pro- address of the delinquent tax- The demand letters to
grams/projects/ activities. payers and send demand letters Sangguniang delinquent
to remind them of their unpaid Panlungsod taxpayers but
taxes. Posting of the notices of deferred its encountered
delinquency in publicly accessi- approval. difficulties due
ble and conspicuous places to ambiguous
and/or publication of the same addresses.
in a local newspaper of general
circulation is also recom-
mended; and

3. Fast track the enhancement of

the Real Property Tax System
that will link the CTO and CAO Fully
records to expedite the genera- Implemented
tion of the necessary reports re-
quired for the efficient collec-
tion of taxes.
82. For Calendar Year 2013, Require them to submit the AAR Not Implemented No Certification
COMELEC officials and required Certification from Central 2013 from Central
employees were paid over- Office that they did not claim nor Office of
time pay for services ren- was paid overtime pay for the COMELEC was
dered in the amount of period January 2013 to September provided/
P344,020.01 without ap- 2013. submitted.
propriate authority from

207
 Reason for
Management Status of
Audit Observations Recommendations Ref Partial/Non-
Action Implementation
Implementation
COMELEC Central Office
resulting in irregular ex-
penditures by the same
amount.

208