Status of Implementation of Prior Years Audit Recommendations Of the eight (8) audit recommendations contained in the 2009 Annual

Audit Report, four (4) were implemented, and four (4) were not implemented, the details below:
Audit Observation
Ref. AAR 2008

Management Action

Status of Implementation and Reason for Partial/ Non-Implementation

1. Collections were continuously Finding not deposited intact and within the No. 1 reglamentary period, in apparent disregard of Section 28 of COA Circular No. 92-382 and of past Audit Observation Memorandum bearing on the same deficiency.

The Accountable Officer concerned did not render his comment as of the preparation of this report.

Unimplemented Collection totaling to P1,146,580.73 remained undeposited as of December 31, 2009.

The Municipal Treasurer is advised to adhere with the above cited regulations and reminded of the provision stated in Section 22 d, of omnibus rules implementing book V of Executive Order 292, for being notoriously undesirable will be meted the penalty of dismissal.
2. The Municipal Accountant failed to prepare up-to-date monthly bank Finding reconciliation statements as No. 2 required in Section 74 of Presidential Decree 1445 thus, casting doubt on the unreconciled balances amounting to P6,981,510.22.

It is advised that the Bank Reconciliation Statements be prepared monthly to ascertain the accuracy of cash-in-bank account and avoid the same lapses done in the previous years. The readiness of a Bank Reconciliation Statement is a vital tool for the management in forecasting inflows and outflows of cash for the year.

The official concerned assured as that they will do their best to work back in order to determine those reconciling items and the preparation of the monthly bank reconciliation statement.

Unimplemented The Municipal Accountant once again not able to prepare the required bank reconciliation statement. Reiterated this year 2009

22

Audit Observation

Ref. AAR 2008

Management Action

Status of Implementation and Reason for Partial/ Non-Implementation

3. The absence of monthly Finding reconciliation between the No. 3 Accounting and Treasury Department for cash account resulted to numerous discrepancy between balance per cashbook and balance per ledger The management is advised to at least reconcile cash account once a month to address any discrepancy immediately, and reminded that the provision of internal control is a responsibility of the Local Chief Executive. 4. Various Accountable Officers failed to liquidate cash advances Finding amounting to P3,823,554.34 on No. 4 time contrary to the provision of COA Circular 97-002 that may result to loss and/or misuse of fund. The accountable officer are advised to comply strictly to COA Circular No. 97-002 on the proper granting of cash advances to safeguard government funds from possible loss and/or misuse. Immediate settlement of long overdue cash advances is demanded to avoid filing of appropriate legal action to enforce liquidation.

The concerned officer promised that the necessary action shall be taken up to correct the deficiency noted in the ensuing year.

Implemented Monthly reconciliation between the Accounting and Treasury was made during the year.

The management Implemented assured us that Cash advances last our year were settled. recommendation shall strictly adhered to.

23

Audit Observation

Ref.

Management Action

AAR 2008

Status of Implementation and Reason for Partial/ NonImplementation

5. The management failed to records Finding and reconciles inventory of supplies No. 5 and materials purchased and issued for the year ended, contrary to provision of Section 114 of the Manual on the New Government Accounting System. The management is advised to follow strictly the provisions of Section 114 of the New Government Accounting system, and a regular reconciliation of records of accountable form. 6. The management failed to render complete report of inventory of Finding Property, Plant and Equipment No. 6 amounting to P56,362,250.67 contrary to Section 124 of the New Government Accounting System, thus casting doubt on the propriety of the account. Once again the official concerned is reminded that the preparation of inventory report is an indispensable obligation of the management and therefore advised to religiously prepare the report and submitted to the office of the auditor on or before January 31, of each year to ascertain existence and correctness of the reported asset.

The management accepted such lapses and promised to be corrected on the ensuing year.

Unimplemented Again the Municipality failed to records as inventory the total purchase of supplies and materials during the year.

It was promised that diligent efforts shall be taken up to reconcile the report and submit it to the auditor for review and verification

Unimplemented The municipality still failed to submit the required complete physical inventory of Property, Plant and Equipment during the year.

24

Audit Observation

Ref.

Management Action

Status of Implementation and Reason for Partial/ Non-Implementation

7. The management had a practice of Finding hiring a private lawyer contrary to No. 7 the provision of COA Circular 98002. The management is advised to stop the hiring of the services of a private legal counsel and strictly follow the provision of COA Circular 98-002 and Section 481 of Republic Act No. 7160. 8. Untimely passage of appropriation ordinance to non Finding implementation of infrastructure No. 8 project chargeable against 20% development fund of 2007 amounting to P7,260,000.00 depriving the constituents of enjoying the benefits of the investment project. As the title of the budget implies Annual Investment Plan for 2007. The implementation/utilization of the said appropriation should have been on the fiscal year as appropriated. Failure to implement on the last quarter of the year, the approved budget on the part of the local executive, and a failure to enact Sangguniang Resolution on time deprived your constituents of the benefits of the development project. With the facts as stated above we recommend that annual appropriation be approved as mandated under Section 323 of the Local Government Code and implemented as stated in Section 4.0 of DILG and DBM joint Memorandum Circular.

The management promised that hiring of the services of a private legal council shall be stop and follow the provision of COA Circular 98-002 and Section 481 of RA No. 7160. Of the infrastructure project chargeable against 20% development fund of 2007 amounting to P7,260,000.00 96% was fully implemented and 4% was already on going.

Unimplemented The practice was again repeated this year 2009

Fully Implemented

25

Audit Observation

Ref.

Management Action

Status of Implementation and Reason for Partial/ Non-Implementation

AAR 2009

1. Disbursement vouchers which are Finding subject to pre-audit were paid even without coursing through the required pre-audit action in violation to pertinent provision of COA Circular No. 2009-002. 2 The municipality allowed the claim for AF 2 payment/reimbursement of the amount paid to a private law practitioner in violation to Section 2.2 Article IX-D of the 1987 Philippine Constitution.

Transaction Implemented subject to preaudit were submitted for audit action

Implemented
The management refrained from repeating the same practice

3. Construction in Progress account AF 3 of P12,531,647.00 remained open in the book of account despite the infrastructure projects it referred to were already completed contrary to Section 50 of the NGAS Manual for local government unit, thus artificially bloated the assets and government equity account. 4. Public Infrastructure account AF 3 of P7,034,239.21 not yet categorized as to specific asset account and likewise, not transferred yet to registry of public infrastructure

Already closed to appropriate asset Implemented account

Transferred to Implemented respective registry account

26

Audit Observation

Ref.

Management Action

Status of Implementation and Reason for Partial/ Non-Implementation

AAR 2009

5. Collections totaling to P1,146,580.73 as of December 31, AF 5 2008 were not deposited intact with its depository bank, thus exposing municipal funds to risk of loss and misappropriation. 6. The accuracy of the balance of Cash-in-Bank, LCCA amounting to P29.63 million could not be AF 6 ascertained due to non-preparation and submission by the Municipal Accountant of the required monthly bank reconciliation statement contrary to Section 74 of the Presidential Decree 1445. 7. The reliability and validity of the balance of the Property, Plant and Equipment account amounting to P81.92 million appeared doubtful AF 7 due to inability of the Municipality to submit complete physical inventory report contrary to Section 375 (d) of RA 7160 and Section 124 of the New government Accounting system (NGAS). 8. The Municipality failed to comply fully with the provision of AF 8 RA 7191 particularly in providing 5% appropriation for the Gender and Development related activities and the monitoring of accomplishment relative thereto in violation to DBM,

Part of collection Partially were deposited Implemented

Effort was Unimplemented exerted but still failed to prepare

No committee Unimplemented was created for the purpose

Still no Unimplemented guidelines was formulated, no committee created, and no Focal Person designated

27

NEDA and NCRFW Joint Circular No. 2001.

28