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Republic of the Philippines

COMMISSION ON AUDIT
Province of Negros Oriental
Dumaguete City

ANNUAL AUDIT REPORT

ON THE

MUNICIPALITY OF MANJUYOD
PROVINCE OF NEGROS ORIENTAL

For the Year Ended December 31, 2014


Republic of the Philippines
COMMISSION ON AUDIT
Province of Negros Oriental
AUDIT TEAM NO. 9
Capitol Building, Dumaguete City

March 9, 2015

JOSETTE A. RODRIGUEZ
Supervising Auditor
Commission on Audit
Province of Negros Oriental
Dumaguete City

Madam:

In compliance with Section 2, Article IX-D of the Philippine Constitution and


pertinent section 43(2) of Presidential Decree No. 1445, we have conducted a Financial
and Compliance Audit on the accounts and operations of the Municipality of Manjuyod,
Negros Oriental for the year ended December 31, 2014.

The audit was conducted to ascertain the propriety of financial transactions and
compliance of the municipality to prescribed rules and regulations. It was also made to
ascertain the accuracy of financial records and reports, as well as the fairness of the
presentation of the financial statements.

Our report consists of four (4) parts. Part I presents the Audited Financial
Statements, Part II are details of our significant Findings and Recommendations which
were discussed with concerned management officials and staff during the exit conference
on February 25, 2015, Part III presents the Status of Implementation of Prior Years
Audit Recommendations and Part IV contains the Annexes.

As discussed in Part II of this report the municipality once again did not conduct a
physical count of its movable property, plant and equipment valued in the books at
P52,707,812.82 at year end, thus rendering their validity, existence and accuracy
doubtful. The inadequacy of the LGUs records did not allow us to apply appropriate
alternative audit procedures to verify the validity and correctness of these accounts.
Likewise, the failure of management to require the liquidation of the cash advances
granted to officers and employees resulted in the overstatement of the receivable account
and understatement of expense account by P3,325,838.51.
In our opinion, except for the effect of such adjustments, if any, as might have
been determined to be necessary, had management conducted the physical count of its
inventories and movable properties, plant and equipment and liquidated the cash
advances as required, the financial statements referred to above, present fairly, in all
material respects the financial position of the Municipality of Manjuyod as of December
31, 2014 and the results of its operations and its cash flows for the year then ended in
accordance with generally accepted accounting principles.

Our audit was conducted in accordance with Generally Accepted Auditing


Standards (GAAS) and we believe that it provides a reasonable basis for the results of the
audit.

Very truly yours,

MARIFE A. ALCALA
State Auditor III
OIC-Audit Team Leader -Team 9
EXECUTIVE SUMMARY

The Municipality of Manjuyod is one of the northern towns of Negros Oriental. It


was created by virtue of Executive Order No. 37 dated May 13, 1908. It is located 58.3
kms. north of Dumaguete City, the capital city of the province. It is bounded in the south
by the City of Bais, North by the Municipality of Bindoy, west by the Municipality of
Mabinay, and in the east by the Taon Strait. Specifically, it lies within the polar
geographic coordinates between 90 35 and 90 45 north latitude and between 1220 00
and 123 10 east longitude.

Manjuyod is a 2nd class municipality and has a total land area of 14,841.7190
hectares. It is composed of 27 barangays.

AUDIT METHODOLOGY

An audit was conducted on the operation of the Municipality of Manjuyod for the
calendar year 2014. Our examination consisted of the verification of records on a test
basis, review of operating procedures, interview with concerned officials and employees,
analysis of accounts and such other procedures considered necessary in the
circumstances.

SCOPE OF AUDIT

The audit focused on the audit of the accuracy of LGUs accomplishments vis--
vis major programs and projects as well as efficiency and economy in the implementation
of the same, allocations to local government units (ALGU); utilization of PDAF, DAP
funds and other funds transferred to LGUS; local disaster risk management, hiring of
casuals, job orders, contractuals and consultants; environmental compliance, credit
financing/debt servicing; payment of honoraria and allowances; gender and development;
complete submission of accounts; ARRM, DILG PAMANA, SALINTUBIG and TISP
projects; cash and accounts; cash advances; infrastructure projects; property, plant and
equipment and other areas we considered important in the operation of the municipality
for the calendar year 2014.

FINANCIAL HIGHLIGHTS

ASSETS, LIABILITIES AND EQUITY

2014 2013
Assets P 287,208,949.98 P 264,031,522.71
Liabilities P 71,055,545.32 P 65,055,537.40
Equity P 216,153,404.66 P 198,975,985.31

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INCOME AND EXPENSES

Income P 101,637,955.78 P 90,333,107.68


Expenses P 83,063,627.98 P 79,838,574.74

APPROPRIATIONS

Current Appropriations

Increase Percentage
Fund 2014 2013 (Decrease) %
General Fund 105,466,789.01 95,775,654.67 9,691,134.34 10.12%
SEF 2,721,600.00 2,736,554.42 ( 14,954.42) - . 55%
Total 108,188,389.01 98,512,209.09 9,676,179.92 9.82%

Continuing Appropriation

Increase Percentage
Fund 2014 2013 (Decrease) %
General Fund 28,719,163.52 24,957,239.19 3,761,924.33 15.07%
SEF 1,053,266.91 958,116.91 95,150.00 9.93%
Total 29,772,430.43 25,915,356.10 3,857,074.33 14.88%

OBLIGATIONS

Current Obligations

Increase Percentage
Fund 2014 2013 (Decrease) %
General Fund 85,077,249.02 77,371,423.43 7,705,825.59 9.96%
SEF 2,265,215.06 1,814,010.09 451,204.97 24.87%
Total 87,342,464.08 79,185,433.52 8,157,030.56 10.30%

Continuing Obligations

Increase Percentage
Fund 2014 2013 (Decrease) %
General Fund 11,728,418.01 4,724,801.52 7,003,616.49 61.91%
SEF 172,479.31 0.00 172,479.31 0%
Total 11,900,897.32 4,724,801.52 7,176,095.80 151.88%

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AUDITORS OPINION ON THE FINANCIAL STATEMENTS

In our opinion, except for the effect of such adjustments, if any, as might have
been determined to be necessary, had management conducted the physical count of its
movable properties, plant and equipment andliquidated the cash advances as required, the
financial statements referred to above, present fairly, in all material respects the financial
position of the Municipality of Manjuyod as of December 31, 2014 and the results of its
operations and its cash flows for the year then ended in accordance with generally
accepted accounting principles.

SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS

A. FINANCIAL AND COMPLIANCE

1. The validity, physical existence and condition of movable Property, Plant and
Equipment amounting to P52,707,812.82 as of December 31, 2014 cannot be
ascertained due to the non-conduct of physical inventory and incomplete records
of the Treasury and Accounting Offices in violation of Sections 114, 199 and 124
of the NGAS Manual of LGUs.

We reiterate our recommendations that:

a. The local chief executive immediately require the conduct of the physical
inventory count and submission of a report thereon to the audit team.

b. The accountant and treasurer maintain the ledger cards and property
records, respectively, as required by existing regulations.

c. The results of the annual physical inventory be reconciled with the


accounting and property records and the necessary adjustments made so
that these records will agree with the actual count and the related accounts
will thus be presented fairly in the financial statements.

2. Cash advances totaling P4,410,632.48 drawn by the Disbursing Officer for the
payment of salaries, wages, honoraria and similar expenses were not supported
with copies of the approved payrolls or list of payees indicating their net payments
as required under COA Circular No. 2012-001 dated June 14, 2012 thus allowing
the Disbursing Officer to draw more than the net amount, thereby exposing
government funds to risk of loss through defalcation.

We recommend that:

a. The Municipal Accountant to see to it that the cash advance


voucher is supported with a list of approved payrolls.

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b. The Municipal Accountant certify that previous cash advances
have been liquidated and accounted for in the books before
granting an additional cash advance.

c. The Disbursing Officer immediately refund the excess amount of


the cash advance granted.

d. The Municipal Accountant follow the proper account codes in the


recording of transactions and preparation of financial statements
per Accounting Circular Letter No. 2007-02 dated January 9, 2007.

3. The grant of CY 2014 Productivity Enhancement Incentive of P26,800.00 each to


the municipal officials and employees exceeded the amount of P5,000.00 allowed
under Executive Order No. 80 dated July 20, 2012 as implemented by Budget
Circular No. 2013-3 dated November 21, 2013 resulting to an overpayment of
P2,398,000.00.

We recommend that management require all employees concerned to refund the


overpayment of Productivity Enhancement Incentive for CY 2014 and to
henceforth observe strictly the applicable regulations on the grant of any fringe
benefits.

4. A total of P3,325,838.51 in cash advances remained unliquidated as of December


31, 2014 in violation of COA Circular No. 97-002 dated February 10, 1997,
thereby exposing government funds to possible loss or misappropriation .

We reiterate our recommendations contained in the CY 2013 AAR that:

a. The Accountant issue demand letters to officials and employees


concerned for the immediate submission to the accounting office of the
liquidation reports and supporting documents so that the municipal
accountant can prepare the journal entries to record the settlement of
their outstanding cash advances.

b. The Municipal Accountant determine the correct breakdown of cash


advances amounting to P1,132,837.23 (as to payees and amount) and
issue demand letters for the settlement thereof.

5. Project implementation of the TUPAD program amounting to P899,175.00 cannot


be verified because the locations of the projects were not indicated in the
documents submitted thus project accomplishment remains doubtful.

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We recommend that:

a. The Municipal Engineer should submit accomplishment reports of


projects undertaken under the TUPAD program indicating the locations
thereof.

b. The disbursing officer should ensure that wages are paid to actual
workers of the project.

6. Disbursement Vouchers (DVs) totaling P260,632.42 were not supported with


complete documentation contrary to Section 138 of the Government Accounting
and Auditing Manual, Volume I, thus validity of the transactions made cannot be
determined.

Require the Municipal Accountant to ensure that disbursement vouchers are


complete with supporting documents pursuant to Section 138 of the GAAM,
Volume I in order to establish the validity of the transactions made.

B. Gender and Development

Appropriation for Gender and Development (GAD) for CY 2014 of P65,000.00 is


below the required level of at least 5% of the municipalitys total budget or
P4,793,400.00 as required under Section 2.3 of PCW, NEDA and DBM Joint
Circular No. 2012-01, thus hindering the attainment of GAD goals.

We recommend that management appropriate at least five percent (5%) of the total
budget for Gender and Development pursuant to Section 2.3 of Joint Circular No.
2012-01 of the Philippine Commission On Women (PCW), National Economic
And Development Authority (NEDA) and the Department of Budget and
Management (DBM).

STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT


RECOMMENDATION

Of the twenty two (22) recommendations embodied in the CY 2014 and prior
years Annual Audit Reports, seven ( 7 ) were implemented, seven ( 7 ) were partially
implemented and eight ( 8 ) were not implemented.

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TABLE OF CONTENTS

TITLE PAGE

Part I AUDITED FINANCIAL STATEMENTS


Audit Certificate 1-2
Statement of Management Responsibilityfor Financial Statements 3
Consolidated Balance Sheet 4
Consolidated Statement of Income and Expenses 5
Consolidated Statement of Cash Flows 6
Notes to Financial Statements 7-13

Part II DETAILED FINDINGSAND RECOMMENDATIONS


A. Financial and Compliance 14-25
B. Gender and Development 25-26
C. Status of Audit Suspensions, Disallowances and Charges 27
D. Compliance with Tax Laws 27
E. Local Disaster Risk Reduction and Management Fund 27-28
(LDRRMF)

Part III STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT 29-46


RECOMMENDATIONS

Part IV ANNEXES 47
PART I AUDITED FINANCIAL STATEMENTS
Republic of the Philippines
COMMISSION ON AUDIT
Audit Group LGS-E, Negros Oriental and Siquijor
Audit Team R7-09
Capitol Building, Dumaguete City

INDEPENDENT AUDITORS REPORT

Honorable Felix A. Sy, M.D.


Municipal Mayor
Municipality of Manjuyod
Province of Negros Oriental

We have audited the accompanying Consolidated Balance Sheet of the


Municipality of Manjuyod, Negros Oriental as of December 31, 2014, and the related
Consolidated Statements of Income and Expenses and Cash Flows for the year then
ended. These financial statements are the responsibility of Manjuyod municipal
governments management. Our responsibility is to express an opinion on these
financial statements based on our audit.

We conducted our audit in accordance with laws, COA and INTOSAI


standards and applicable Generally Accepted Auditing Standards (GAAS). Those
standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. It also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides reasonable basis
for our opinion.

As discussed in Part II , as in the previous year, the municipality did not


conduct a physical count of its movable property, plant and equipment valued in the
books at P52,707,812.82 at year end, rendering their validity, existence and accuracy
doubtful. The inadequacy of the LGUs records did not allow us to apply appropriate
alternative audit procedures to verify the validity and correctness of these
accounts.Likewise, the failure of management to require the liquidation of the cash
advances granted to officers and employees resulted in the overstatement of the
receivable account and understatement of expense account by P3,325,838.51.

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In our opinion, except for the effect of such adjustments, if any, as might
have been determined to be necessary had management conducted the physical count
of its movable properties, plant and equipmentand caused the liquidation of cash
advances as required,the financial statements referred to, present fairly, in all material
respectsthe financial position of the Municipality of Manjuyod as of December 31,
2014 and the results of its operations and its cash flows for the year then ended in
accordance with generally accepted accounting principles.

COMMISSION ON AUDIT
By:

MARIFE A. ALCALA
OIC Audit Team Leader

March 9, 2014

2
Republic of the Philippines
MUNICIPALITY OF MANJUYOD
PROVINCE OF NEGROS ORIENTAL

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(With Comparative Figures for December 31, 2013)

Note 1: Agency Profile

The Municipality of Manjuyod was established in 1849. In 1851, the church was
blessed together with the inauguration of the town. It is a 2nd class municipality, its operation is
governed and operated independently from other local government units. This government
corporation is a service oriented entity. Its programs, projects and other activities are focused
on the welfare of the general public.

Its vision is its people being self-reliant, empowered and economically sufficient, living
in a healthy environment, enjoying the quality of life.

The Municipality is maintaining three funds namely the general fund, special education
fund and trust fund consisting of private and public monies which have come officially into the
possession of the local government as trustee or which have been received as a guaranty for the
fulfillment of some obligation.

It also maintains the following special accounts under the general fund namely; general
fund proper, market operations, slaughterhouse operation, waterworks system, cemetery and the
20% development fund.

Note 2: Summary of Significant Accounting Policies

The Municipality uses the modified accrual basis of accounting. All expenses are
recognized when incurred and payables are recorded when goods and services are delivered or
rendered. These are reported in the financial statements in the period to which they relate.
Income is on accrual basis except for transactions where accrual basis is impractical.

The Municipality did not provide for Allowance for Doubtful accounts on receivables.
Property, Plant and Equipment are carried at cost. Accumulated Depreciation is provided for
assets acquired starting CY 2002. Property, Plant and Equipment acquired prior to current year
2002 are carried at its original cost. Government Properties, which are used by the general
public, are accounted for under Public Infrastructures.

The straight line method of depreciation is followed. Depreciation is computed on the


month following the purchase date.

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Note 3: Cash

Cash account is broken down as follows:

2014 2013
Cash in Vault 338,964.78 403,470.26
Cash - Disbursing Officer 655,166.25 1,076,329.69
Petty Cash Fund - 125,000.00
Cash in Bank - Local Currency Current Account 87,226,754.22 73,545,269.26
Total 88,220,885.25 75,150,069.21

Out of the balance of Cash in Vault account, P27,364.72 in the General Fund pertains to
amount for deposit with the Provincial Treasury, Province of Negros Oriental representing the
Provincial share of the Real Property Tax. The balancerepresents local taxes and accounts of
prior years that still needs to be reconciled. Cash-Disbursing Officers represents partially paid
payrolls. Cash in Vault and Cash-Disbursing Officer accounts further need reconciliation
between the cashbook of the Municipal Treasurer and Disbursing Officer against the
accounting records.

Cash in Bank- Local Currency Current Account is maintained in four (4) government
depository banks: Land Bank of the Philippines, Bais City Branch; Development Bank of the
Philippines, Dumaguete City, Philippine Veterans Bank, Dumaguete City and Philippine
National Bank, Bais City.

Note 4: Receivables

Receivable accounts consist the following:

2014 2013
Due from Officers and Employees 3,325,838.51 3,566,962.05
Real Property Tax Receivable 4,292,081.86 3,852,966.08
Special Education Tax Receivable 11,224,160.05 10,776,597.11
Due from NGAs 611,421.71 611,421.71
Due from GOCCs 3,688.95 3,688.95
Due from LGUs 16,342.85 16,342.85
Due from Other Funds 2,112,962.96
Other Receivables 96,663.46 96,663.46
Total 19,570,197.39 21,037,605.17

Due from Officers and Employees represents cash advances by officers and employees that
remained unliquidated up to the present. A significant portion of the total amount pertains to
accounts of prior years (from 2004 and prior) wherein the previous acting municipal accountant
failed to prepare a schedule. These are still being reconciled and verified so that proper demand
letters can be made.

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Total receivables of P19,570,197.39 is net of Due from Other Funds in the amount of
P4,348,252.53 which includes cash to be transferred to trust fund in the amount of P2,793,400.00
representing total quick response fund and Maintenance and Other Operating Expenses from the
calamity fund balance of 2014.

Due from Other Funds also includes share of Real Property Tax for the Special Education Fund
deposited in the General Fund awaiting fund transfer. The actual fund transfer was made on the
first month of the ensuing year.

Other Receivables totaling P96,663.46include long outstanding receivables amounting to


P93,013.96 for which no collection has been made up to the present time.

Note 5: Inventories

Inventories include the following:


2014 2013
Office Supplies Inventory 329,900.89 293,033.18
Accountable Forms Inventory 325,481.25 146,827.00
Gasoline, Oil and Lubricants Inventory 1,558,136.26 1,529,054.54
Other Supplies Inventory - -
Spare Parts Inventory - -
Total 2,213,518.40 1,968,914.72

Substantial amount of Inventories represents semi-expendable supplies and materials and


Gasoline, Oil and Lubricants.

Note 6: Prepayments

This account consists of:

2014 2013
Prepaid Insurance 248,682.24 231,394.48
Total 248,682.24 231,394.48

Prepayments represent insurance of various government vehicles that expires after one
year. Insurance expense is then recognized at the end of one year.

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Note 7: Property, Plant and Equipment

This account consists of the following:

Balance as of Net Addition/ Balance as of


31-Dec-13 (Reduction) 31-Dec-14
Land 1,732,663.45 1,732,663.45
Land Improvements 5,532,115.43 5,532,115.43
Buildings 12,035,606.49 30,000.00 12,065,606.49
Leaseholds Improvements
Office Equipment, Furnitures
and Fixtures 9,503,554.87 371,005.40 9,874,560.27
Machineries and Equipment 34,910,641.83 10,575,046.00 45,485,687.83
Transportation Equipment 21,815,631.63 126,250.00 21,941,881.63
Other Property, Plant and
Equipment 1,661,670.90 1,661,670.90
Public Infrastructures 4,257,424.21 4,257,424.21
Construction in Progress 94,541,664.93 5,984,826.49 100,526,491.42
Total 185,990,973.74 17,087,127.89 203,078,101.63
Accumulated Depreciation (20,480,987.49) (5,775,000.32) (26,255,987.81)
Net Amount 165,509,986.25 11,312,127.57 176,822,113.82

Property, Plant and Equipment amounting to P10,202,875.00 which is the subject of


donation to the barangays of Manjuyod have not been taken out of the books of the
municipality pending final settlement of issues on revocation of the donation per
Sangguniang Bayan Resolution No. 2014-111 series of 2014 dated November 11, 2014.

Note 8: Other Assets

This account consists of:

2014 2013
Work/Other Animals 102,000.00 102,000.00
Total 102,000.00 102,000.00

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Note 9: Current Liabilities

This account consists of the following:

2014 2013
Accounts Payable 5,066,746.60 3,772,578.46
Due to Officers and Employees 3,278,184.78 2,986,051.38
Due to BIR 1,192,112.13 669,417.95
Due to GSIS 821,961.76 903,875.65
Due to PAG-IBIG 128,288.88 136,683.61
Due to PHILHEALTH 226,286.70 237,199.20
Due to Other NGAs 17,087,673.78 17,567,718.38
Due to Other GOCCs 80,660.88 80,660.88
Due to LGUs 3,128,835.73 573,586.34
Due to Other Funds 680,425.39 -
Guaranty Deposits Payable 808,000.00 -
Performance/Bidders/Bail Bonds Payable 349,345.77 272,370.55
Trust Liability - DRRM 5,885,313.83 5,971,641.63
Other Payables 7,454,529.62 6,165,639.55
Total 46,188,365.85 39,337,423.58

Accounts Payable account and Due to Officers and Employees account represents
amounts payable to suppliers and unpaid salaries to officers and employees obligated at the
end of the year and paid in the ensuing year.

A significant portion of the Due to LGUs account pertains to real property taxes of prior
years for remittance to the provincial account which still needs to be reconciled to adjust the
negative balance as reflected on the financial report.

Due to Other Funds was off-setted with Due from Other Funds account in the amount of
P4,348,252.53.

Note 10: Long-term Liabilities

This account consists of:

2014 2013
Loans Payable - Domestic 9,151,770.65 10,894,242.09
Total 9,151,770.65 10,894,242.09

Long Term liabilities amounting to P9,147,974.98represents domestic loan from


Philippine Veterans Bank and P 3,795.67 represents domestic loan from Government Owned &
Controlled Corporation (GOCCs). The loan with Land Bank of the Philippines was used to
finance the purchase of branch new heavy equipment and has a term of 7 years payable
quarterly starting May 2013.

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Note 11: Deferred Credits

This account consists of the following:

2014 2013
Deferred Real Property Tax Income 4,288,071.24 3,848,955.46
Deferred Special Education Tax Income 11,220,330.01 10,772,767.14
Other Deferred Credits 207,007.57 202,149.13
Total 15,715,408.82 14,823,871.73

Note 12: Government Equity

Government Equity account consists of the following:

2014 2013
Unappropriated Surplus 12,516,509.51 3,300,085.40
Inventory 1,953,980.49 1,719,376.47
Property, Plant and Equipment 166,825,623.73 155,513,496.16
Other Assets 102,000.00 102,000.00
Prepaid Expenses 248,682.24 231,394.48
Receivables 8,051,710.85 8,195,649.49
Guaranty Deposits 31,552.88 31,552.88
Deferred Credits 1,186.16
Continuing Appropriations:
Prior Years 17,871,533.11 19,503,054.58
Current Year 8,550,625.69 10,379,375.85
Total 216,153,404.66 198,975,985.31

Unappropriated Surplus is the amount available for appropriation/expenditure for


operations.

Note 13: Local Disaster Risk Reduction and Management Fund (LDRRMF)

The LDRRMF represents the amount set aside by the LGU to support its disaster risk
management pursuant to R.A. No. 10121 otherwise known as the Philippine Disaster Risk
Reduction and Management Act of 2010. The amount available and utilized during the year
totalled P10,765,041.43 and P288,866.80 respectively, broken down as follows:

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Amount
Particulars Available Utilized Balance
Current Year Appropriation (2013):
Quick Response Fund (QRF) 1,438,020.00 1,438,020.00
Mitigation Fund (MF)
MOOE 1,355,380.00 1,355,380.00
Capital Outlay 2,000,000.00 202,539.00 1,797,461.00
Total 4,793,400.00 202,539.00 4,590,861.00
Continuing Appropriation:
Special Trust Fund
CY 2011 1,730,993.00 78,157.80 1,652,835.20
CY 2012 1,889,191.29 1,370.00 1,887,821.29
CY 2013 2,351,457.34 6,800.00 2,344,657.34
Total 5,971,641.63 86,327.80 5,885,313.83
TOTAL 10,765,041.63 288,866.80 10,476,174.83

Note 14: Income and Expenses

The major source of income of the LGU came from the receipt of the share from the
Internal Revenue Allotment (IRA) which is composed of 87% of the total income. Out of the
total revenue from local taxes, 67% represents sources from the Real Property Tax and Special
Education tax.

The expenses for personal services represents salaries to officials and employees
including other benefits and government share for the contributions to GSIS, Phil health and
Pag-ibig as well as benefits for the health worker regularly employed in the municipality.

The expenses on maintenance and other operating expenses represents travelling and
transportation expenses, office supplies, fuel and lubricants, utility expenses and various repairs
and maintenance expenses. A reasonable amount of depreciation was also recognized for the
year. Salaries and Wages of personnel under job order forms a significant portion of other
maintenance and operating expenses.

Net Income for CY 2014 is P18,574,327.80 which is P8.079 million higher compared to
CY 2013.

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PART II -DETAILED FINDINGS AND RECOMMENDATIONS
PART II - DETAILED FINDINGS AND RECOMMENDATIONS

A Financial and Compliance Audit was conducted on the accounts and operations
of the Municipality of Manjuyod, Negros Oriental for the calendar year 2014. The audit
was conducted to ascertain the propriety of the financial transactions and compliance of
the agency to prescribed laws, rules and regulations. It was also made to ascertain the
accuracy of the financial records and reports, as well as the fairness of the presentation of
the financial statements.

Our examination consisted of the verification of records on a test basis, review of


operating procedures, interview with concerned officials and employees, analysis of
accounts and such other procedures necessary in the circumstances.

FINANCIAL AND COMPLIANCE

1. The validity, physical existence and condition of Property, Plant and Equipment
amounting to P52,707,812.82 as of December 31, 2014 cannot be ascertained due
to the non-conduct of physical inventory and incomplete records of the Treasury
and Accounting Offices in violation of Sections 114, 119 and 124 of the NGAS
Manual of LGUs.

Section 124 of the New Government Accounting System (NGAS) Manual for
LGUs, Volume 1 calls for the local chief executive to require the periodic physical
inventory of supplies or property and the submission of the report thereon to the
auditor concerned. Physical count of property, plant and equipment by type shall be
made annually and reported on the Report of the Physical Count of Property, Plant
and Equipment (RPCPPE). This shall be submitted to the Auditor concerned not later
than January 31 of each year.

Section 114 of the New Government Accounting System (NGAS) Manual for
Local Government Units, Volume 1, requires the Chief Accountant to maintain the
perpetual inventory records comprising the Supplies Ledger Cards (SLC) for each
commodity/stocks, Property, Plant and Equipment Ledger Cards (PPELC) for each
category of Plant, Property and Equipment and Work/Other Animals and Breeding
Stocks Ledger Cards (WOABSLC) for each type of livestock.

Such ledger cards shall contain the details of the property, plant and
equipment and livestock account in the inventory control accounts in the ledger. The
Municipal Treasurer shall likewise maintain stock cards and property cards for
supplies, property, plant and equipment, and work animals in their custody to account

14
for the receipt and disposition of the same. The balance per stock/property cards
should always reconcile with the ledger cards of the accounting unit.

As of December 31, 2014, the financial statements of the municipality showed


that out of the net balances of Property, Plant and Equipment (PPE) of
P176,822,113.82 there are movable assets amounting to P52,707,812.82 or 29.81%
consisting of the following:

Office Equipment, Furniture and


Fixtures P 5,098,050.73
Machineries and Equipment 34,853,382.48
Transportation Equipment 12,085,390.80
Other Property, Plant and Equipment
670,988.81

Total P52,707,812.82

In view of the LGUs inability to conduct the physical inventory count, the
existence of the fixed assets recorded in the books cannot be effectively ascertained.
In addition, the movable properties enumerated above which are highly susceptible to
the risk of loss or even obsolescence, may no longer be existing or may have been
rendered unserviceable. Furthermore, no physical count has been conducted for so
many years now that the existence of these properties could not be established and
they continue to be shown in the books even if they may no longer be actually
existing. Thus, the amounts presented in the financial statements may no longer be
reliable.

We also noted that the Municipal Accountant did not maintain the required
property/ledger cards for PPE. It is necessary that complete subsidiary records in the
prescribed form be maintained in order to provide reliable and detailed information
for the fixed asset accounts thus facilitating the conduct of the required physical count
and subsequent reconciliation with the books.

Despite repeated recommendations, the LGU still did not conduct the
physical count of inventories and movable assets. Therefore, we are again reiterating
this prior years observation because the failure to conduct the physical inventory
count and the neglect to maintain property/ledger cards affects the fairness of
presentation of the related asset accounts in the financial statements at year-end. The
conduct of physical inventory count is necessary to ascertain the existence, physical
condition, valuation, and reliability of the assets owned by the municipality.

We could not also effectively perform adequate alternative procedures to


check the reliability of the property, plant and equipment account balances due to
insufficiency of records on supplies and property.
15
Management Comment:

The local Chief Executive had already signified the strict implementation of
the physical inventory and has ordered the chairman of the inventory committee, Mr.
Antonio Academia, Local Civil Registrar to mobilize the group as soon as possible
and to re-organize its members so that conflict of schedules and unavailability of
personnel will be avoided.

We reiterate our recommendations that:

1. The local chief executive immediately require the conduct of the physical
inventory count and submission of a report thereon to the audit team.

2. The accountant and treasurer maintain the ledger cards and property
records, respectively, as required by existing regulations.

3. The results of the annual physical inventory be reconciled with the


accounting and property records and the necessary adjustments made so
that these records will agree with the actual count and the related
accounts will thus be presented fairly in the financial statements.

2. Cash advances totaling P4,410,632.48 drawn by the Disbursing Officer for the
payment of salaries, wages, honoraria and similar expenses were not supported
with copies of the approved payrolls or list of payees indicating their net
payments as required under COA Circular No. 2012-001 dated June 14, 2012
thus allowing the Disbursing Officer to draw more than the net amount, thereby
exposing government funds to risk of loss through defalcation.

COA Circular No. 2012-001 dated June 14, 2012 enumerates the documentary
requirements for common government transactions.

Section 1.1 of said COA Circular lists the following documentary requirements
common to all cash advances except for travels:

- Authority of the accountable officer issued by the Head of the Agency or


his duly authorized representative indicating the maximum accountability
and purpose of cash advance (for initial cash advance)
- Certification from the Accountant that previous cash advances have been
liquidated and accounted for in the books
- Approved application for bond and/or Fidelity Bond for the year for cash
accountability of P2,000 or more

16
Additional Documentary Requirements

- Xxx
- Approved Payroll or list of payees indicating their net payments
- Xxx

Our examination of disbursement vouchers for the period April 1-30, 2014 and
July 1-31, 2014 disclosed that all disbursement vouchers covering cash advances for
salaries, wages and allowances were not supported by documents, contrary to the
above-stated regulations (see Annex 1).

We noted, in particular, the absence of list of payees or copies of the approved


payrolls to be paid, which is the basis for the amount of cash advance to be granted to
the Disbursing Officer. The amount of cash advances should be equal to the net
amount of the payroll, any excess should be refunded immediately by issuing an
official receipt or before the grant of another cash advance.

The drawing of cash advances in excess of the approved payrolls to be paid


contravenes Sec. 1.1.1 of the same circular which states that:

1.1.1 Payroll Fund for Salaries, Wages, Allowances, Honoraria and Other
Similar Expenses

The cash advance for payroll fund shall be equal to the net amount of the
payroll for the pay period. (Underscoring supplied)

Lastly, it was also observed that the cash advances were recorded to the account
Cash Disbursing Officer (103) instead of Payroll Fund (106) as required under COA
Accounting Circular Letter No. 2007-02 dated January 9, 2007.

Management Comment:

Recommendations were well taken. Presently, the new Disbursing Officer (DO)
had already complied with the requirement to attach a listing of approved payroll to
support the cash advance voucher.

We recommend that:

a. The Municipal Accountant to see to it that the cash advance voucher is


supported with a list of approved payrolls.

17
b. The Municipal Accountant certify that previous cash advances have been
liquidated and accounted for in the books before granting an additional
cash advance.

c. The Disbursing Officer immediately refund the excess amount of the cash
advance granted.

d. The Municipal Accountant follow the proper account codes in the


recording of transactions and preparation of financial statements per
Accounting Circular Letter No. 2007-02 dated January 9, 2007.

3. The grant of CY 2014 Productivity Enhancement Incentive of P26,800.00 each to


the municipal officials and employees exceeded the amount of P5,000.00 allowed
under Executive Order No. 80 dated July 20, 2012 as implemented by Budget
Circular No. 2013-3 dated November 21, 2013 resulting to an overpayment of
P2,398,000.

DBM Budget Circular No. 2013-3 dated November 21, 2013 prescribed the
guidelines for the grant of Productivity Enhancement Incentive (PEI) to government
employees for FY 2013 citing Senate and House of Representatives Joint Resolution
(JR) No. 4 series of 2009. JR No. 4 which provides that incentives for government
personnel shall include rewards for exceeding agency financial and operational
performance targets, and to motivate employee efforts toward higher productivity.
Among the incentives is the PEI, authorized by the President of the Philippines for
those in the Executive Branch and the LGUs.

Section 1.3.1 of the said Budget Circular, quoting Section 1.a of E.O No. 80,
states that Productivity Enhancement Incentive (PEI) in the amount of P5,000.00 xxx
shall continually be granted across-the-board, in accordance with guidelines to be
issued by the Department of Budget and Management (DBM).

Under Section 5.1 of DBM Budget Circular No. 2013-3, those who are covered
by this Circular are the civilian government employees occupying regular,
contractual, or casual positions; appointive or elective; rendering services on a full-
time or part-time basis.

Section 5.2 of said DBM Budget Circular provides, among others, the
conditions/guidelines for the grant of the PEI, as follows:

1. X xx
2. The employees have rendered at least a total or an aggregate of nine (9)
months of satisfactory service for the year, including leaves of absence with pay, to

18
be entitled of the full amount of the PEI. Those who have rendered less than the total
or aggregate of nine (9) months of service shall be entitled to pro-rated PEI, as
follows:

Length of Service (No. of Months) Percentage of the PEI, as follows:

Length of Service (No. of Months) Percentage of the PEI


7 to 8 months 90%
5 to 6 months 70%
3 to 4 months 50%
1 to 2 months 30%
Less than 1 month 10%

Audit revealed that Municipal Officials and employees were granted PEI of
P26,800.00 each or a total of P2,948,000.00 which exceeded the amount of P5,000.00
allowed by DBM No. 2013-3 resulting to an overpayment of P2,398,000.00 (Annex
11).

The limitation of P5,000.00 was clarified by the COA Legal Services Sector in its
communication dated December 18, 2013 to the Provincial Governor of Bulacan. It
stated that for 2013, the governing rule on the payment of the PEI at a maximum of
P5,000.00 is DBM BC No. 2013-3 dated November 21, 2013, which implements
Executive Order (E.O.) No. 80 dated July 20, 2012.

Section 1 of EO No. 80 provides that the PEI, in the amount of P5,000.00, shall
continue to be granted across-the-board, in accordance with the guidelines to be
issued by the DBM.

The term across-the-board has been defined as embracing all classes or


categories without exception or affecting everyone or everything equally or
proportionately.

It further states that the DBM could not grant a greater amount to the LGUs than
what is mandated by the President of the Philippines to be uniformly paid to other
government agencies. DBM BC No. 2013-3 should not prevail over that of Executive
Order No. 80 since EO No. 80 is the source of DBM BC No. 2013-3. The rule in
statutory construction that in case of conflict between the basic law and its
implementing rules, the former will prevail.

19
Management Comment:

The above observation was well noted by management during the discussion in
the exit conference on February 25, 2015. The Local Executive promised to make an
appeal upon receipt of notices of disallowance on the granting of Productivity
Enhancement Incentive (PEI).

Recommendation:

We recommend that management require all employees concerned to refund the


overpayment of Productivity Enhancement Incentive for CY 2014 and to
henceforth observe strictly the applicable regulations on the grant of any fringe
benefits.

4. A total of P2,014,270.39 in cash advances remained unliquidated as of December


31, 2014 in violation of COA Circular No. 97-002 dated February 10, 1997,
thereby exposing government funds to possible loss or misappropriation .

COA Circular No. 97-002 dated February 10, 1997 prescribes the rules and
regulations on the grant, utilization and liquidation of cash advances and provides,
among others, as follows:

Sec. 4.1.2 -No additional cash advances shall be allowed to any official or
employee unless the previous cash advance given to him is first settled or a proper
accounting thereof is made.

Sec. 4.1.3 -A cash advance shall be reported on as soon as the purpose for which
it was given has been served.

Sec. 5.1.3 -The AO shall liquidate his cash advances as follows:

Official travel within sixty (60) days after return to the Philippines in the case
of foreign travel or within thirty (30) days after return to his permanent official station
in the case of local travel x xx.

Our review of the report of Unliquidated Cash Advances as of December 31,


2014 submitted to the audit team disclosed the existence of a substantial amount of
unliquidated cash advances totalling P2,014,270.39 of which the amount of
P1,132,837.23 or 56.24% is aged over 10 years already as shown below (please see
Annex III for detail):

20
Aging of Accounts Amount %

Less than 1 year P 166,912.00 8.29

Over 1 year to 5 years 229,375.00 11.38

Over 5 years to 10 years 485,146.16 24.09

Over 10 years 1,132,837.23 56.24

Total P2,014,270.39 100%

This condition is indicative of the agencys non-compliance with the aforecited


regulations because the said analysis show that these cash advances have been
outstanding for more than thirty (30) days already.

In addition, cash advances in a staggering amount of P1,132,837.23 were


balances before CY 2005.The accountable persons cannot be identified by the current
Municipal Accountant because the draft of lists they had retrieved from the files did
not tally with the trial balance for CY 2004. The Accounting Office has yet to
determine the breakdown of the said cash advances since there was no schedule turned
over by the former Municipal Accountant Designate.

As discussed during the exit conference on May 19, 2014 relative to the
calendar year 2013 Annual Audit Report, the Municipal Accountant committed to
send another set of demand letters, but to date, said copies of demand letters were not
received by the audit team.

This finding was contained in the CY 2012 and CY 2013 annual audit reports
but we are again reiterating this observation because, up to this date, the management
had not yet done the reconciliation with regard to the discrepancy.

Although management had already stopped the practice of granting cash


advances to officials and employees unless the previous cash advances are liquidated,
compliance to the above provisions is still wanting.

Various factors which may also have contributed to the accumulation of these
outstanding cash advances in the books could be the lack of regular review and
monitoring on the unliquidated cash advances; the non-submission of liquidation
reports for travels already completed; the failure of officials and employees to refund
excess cash advances; the failure to refund cash advances for travels which were
cancelled; and the delayed verification of the liquidation reports submitted by the
accountable persons which resulted to the delayed recording thereof in the books.
21
Management Comment:

The Municipal Accountant explained that they had already sent demand letters
last December 22, 2012. Management promised to send another demand letters, copy
of which shall be furnished the audit team. She further promised strict compliance on
the submission of liquidation reports and to deduct those that require refund of the
same.

We reiterate our recommendations contained in the CY 2013 AAR that:

1. The Accountant issue demand letters to officials and employees


concerned for the immediate submission to the accounting office of
the liquidation reports and supporting documents so that the
municipal accountant can prepare the journal entries to record the
settlement of their outstanding cash advances.

2. The Municipal Accountant determine the correct breakdown of cash


advances amounting to P1,132,837.23 (as to payees and amount) and
issue demand letters for the settlement thereof.

5. Project implementation of the Tulong Pangkabuhayan sa Ating Disadvantaged


Workers (TUPAD) program amounting to P899,175.00 cannot be verified
because the locations of the projects were not indicated in the documents
submitted thus project accomplishment cannot be validated.

TUPAD is a project for the disadvantaged workers by the Department and


Employment (DOLE) in partnership with the Municipality of Manjuyod which aims to
provide short-term wage employment as immediate source of income to the
beneficiaries in the Municipality of Manjuyod.

In our review of the disbursements for the implementation of the TUPAD project
of the municipality, we noted that the location of the project is not indicated in the
Program of Employment and Order to Work nor in any of the documents submitted.
The Inspection Report (Annex 1V) also does not show the location of the work
inspected. Accomplishment reports were also not submitted.

The projects implemented cannot be validated because accomplishment


reports were not submitted and the locations were not indicated in the documents
submitted thus implementation of the projects remains unverified.

22
Also, verification of the payrolls revealed that some signatures of the claimant
of wages do not match with that of the signatures reflected in the DTR giving doubts if
the wages are paid out to the actual workers. A summary of doubtful signatures is
attached as Annex V.

Management Comment:

The municipality had already submitted the accomplishment reports for the
TUPAD project last February 25, 2015 during the exit conference. These reports were
attested by the different barangay officials where the projects were located. Pictures
taken during the implementation of the project were also attached to the
accomplishment reports in support thereof.

Management inquired from the disbursing officer and the wages were indeed
claimed by the laborers, however, discrepancies were noted due to the irregularities in
their penmanship since some workers were having difficulties in writing. They opined
that based on experience, laborers who are not keen in writing usually reveal different
strokes when required to write. However, they are still requesting the disbursing
officer to advice the claimants to sign according to their usual stroke as much as
possible. They had also supported photocopies of the community tax certificates
bearing the signatures of some laborers to support and also have some basis of
comparison with the signatures reflected on the payroll and the daily time record.

We recommend that:

The Municipal Engineer should submit accomplishment reports of projects


undertaken under the TUPAD program indicating the locations thereof.

The disbursing officer should ensure that wages are paid to the actual workers of
the project.

6. Disbursement Vouchers (DVs) totaling P260,632.42 were not supported with


complete documentation contrary to Section 4(6) of P.D. 1445, thus validity of the
transactions made cannot be determined.

Government transactions should be supported with complete documents properly


approved by the authorized officials pursuant to Section 4(6) of P.D. 1445 quoted on
the next page:

23
Section 4. Fundamental principles Financial transactions and
operations of any government agency shall be governed by
the fundamental principles set forth hereunder, to wit:
Xxx

(6) Claims against government funds shall be supported


with complete documentation. xxx

Relative to the aforementioned principle, the Commission on Audit has


promulgated many regulations especially insofar as documentation requirements are
concerned.

One of the basic supporting documents for government disbursements is the


evidence of receipt of payment. As stated in COA Circular No. 2004-006 dated
September 9, 2004, the objective of examining the evidence of receipt of payment is to
establish that funds disbursed have actually been received by the payee. The pre-
printed Official Receipt (OR) is the traditional document recognized as evidence of
receipt of payment for disbursements of government agencies. However, considering
that this traditional mode is not applicable to certain situations, the same COA Circular
already expounds the types of evidences of receipt of payment into paper based or
electronic, depending on the prevailing circumstances.

Our examination of the disbursement vouchers for the period April 1 to 30, 2014
and July 1 to 31, 2014, revealed that several transactions totaling P260,632.42
(AnnexVI) were not supported with basic documents required to establish the validity
of the claims.

As gleaned from the Annex, lacking documents include the following:

a. Inspection and Acceptance Report


b. Program of Work
c. Project Accomplishment Report
d. Activity Design
e. Waste Material Report
f. Acknowledgement Receipt of Equipment
g. Official Receipt

Management Comment:

Recommendations were well taken. Management took note of the above


observation to ensure compliance in future transactions.

24
Recommendation:

Require the Municipal Accountant to ensure that disbursement vouchers are


complete with supporting documents pursuant to Section 138 of the GAAM, Volume
I in order to establish the validity of the transactions made.

B. GENDERAND DEVELOPMENT

7. Appropriation for Gender and Development (GAD) for CY 2014 of


P65,000.00 is below the required level of at least 5% of the municipalitys
total budget or P4,793,400.00 as required under Section 2.3 of PCW, NEDA
and DBM Joint Circular No. 2012-01, thus hindering the attainment of GAD
goals.

Section 2.3 of Joint Circular No. 2012-01 of the Philippine Commission On


Women (PCW), National Economic and Development Authority (NEDA) and the
Department of Budget and Management (DBM) states that Pursuant to the MCW and
the General Appropriations Act (GAA), all government departments, including their
attached agencies, offices, bureaus, state universities and colleges (SUCs), government-
owned and controlled corporations (GOCCs), local government units (LGUs) and other
government instrumentalities shall formulate their annual GPBs within the context of
their mandates to mainstream gender perspectives in their policies, programs and
projects. GAD Planning shall be integrated in the regular activities of the agencies, the
cost of implementation of which shall be at least five percent (5%) of their total
budgets. The computation and utilization shall be implemented in accordance with the
specific guidelines provided therein.

Gender and Development (GAD) is an approach that focuses on how social,


economic, political and cultural forces determine how differently women and men
participate in, and benefit from, and control resources and activities for development. It
recognizes the different roles, responsibilities, expectations, interests, needs, and
contributions of men and women in society and integrates these gender concerns in the
development planning process. GAD recognizes women as agents of development and
not merely as passive recipients of development assistance.

The allocation of funds for implementation of the GAD Plan is a statutory


requirement that must be complied by the provinces, cities, municipalities and
barangays. The Philippine Plan for Gender-Responsive Development (PPGD) 1995-
2025 which was adopted through Executive Order (EO) No. 273, provides specific
services that must be implemented for women in relation to the services stipulated in
RA 7192 or the Women in Development and Nation Building Act. Moreover, EO 273

25
(Approving and adopting the PPGD) mandate agencies, including LGU to
institutionalize GAD in government by incorporating GAD concerns in their planning,
programming and budgeting process.

Total appropriations of the municipals general fund in CY 2014 amounted to


P95,868,000.00. 5% thereof amounts to P4,793,400.00. However, its Gender and
Development Plan had a total budget of P65,000.00 (AnnexVII), a far cry from the
required amount.

In our review of their CY 2014 GAD Accomplishment Report, we have


observed that they implemented the Plans/Projects/Activities (PPA) indicated in GAD
Plan except for the evaluation of GAD PPAs for CY 2014. The meager amount
allocated for GAD would hinder the attainment of GAD objectives of gender responsive
governance, protection of womens human rights and the promotion of womens
economic empowerment.

Management Comment:

The requirement of the appropriation for Gender and Development (GAD) has
been fully implemented in CY 2015. Management promised to implement the approved
GAD plan this calendar year 2015.

We recommend that management appropriate at least five percent (5%) of the total
budget for Gender and Development pursuant to Section 2.3 of Joint Circular No.
2012-01 of the Philippine Commission On Women (PCW), National Economic And
Development Authority (NEDA) and the Department of Budget and Management
(DBM).

26
C. STATUS OF AUDIT SUSPENSIONS, DISALLOWANCES AND CHARGES

There were no suspensions, disallowances and charges issued as shown below:

Beginning Issued & Settled During the Ending


Balance Year 2014 Balance
12/31/2013 12/31/2014
NS/ND/NC NSSDC
Notice of
Disallowance
0.00 0.00 0.00 0.00
Notice of
Suspension
0.00 0.00 0.00 0.00
Notice of
Charge
0.00 0.00 0.00 0.00

NS, ND and NCs issued prior to CY 2009 are excluded from the above
status.

D. COMPLIANCE WITH TAX LAWS

Based on the available records, the agency has regularly complied the
requirement of the National Internal Revenue Code of the Philippines and
Revenue Regulation No. 2-98 relative to the remittance of taxes withheld on gross
compensation income from the officials and employees for the current year and
on taxes withheld from private entities regarding purchases and contracts for
goods and services.

E. LOCAL DISASTER RISK REDUCTIONAND MANAGEMENT FUND (LDRRMF)

The LDRRMF represents the amount set aside by the LGU to support its disaster
risk management pursuant to R.A. No. 10121 otherwise known as the Philippine Disaster
Risk Reduction and Management Act of 2010. The amount available and utilized during
the year totalled P10,765,041.43 and P288,866.80 respectively, broken down as follows:

27
Amount
Particulars Available Utilized Balance
Current Year Appropriation (2013):
Quick Response Fund (QRF) 1,438,020.00 1,438,020.00
Mitigation Fund (MF)
MOOE 1,355,380.00 1,355,380.00
Capital Outlay 2,000,000.00 202,539.00 1,797,461.00
Total 4,793,400.00 202,539.00 4,590,861.00
Continuing Appropriation:
Special Trust Fund
CY 2011 1,730,993.00 78,157.80 1,652,835.20
CY 2012 1,889,191.29 1,370.00 1,887,821.29
CY 2013 2,351,457.34 6,800.00 2,344,657.34
Total 5,971,641.63 86,327.80 5,885,313.83
TOTAL 10,765,041.63 288,866.80 10,476,174.83

28
PART III

STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT


RECOMMENDATIONS
STATUS OF IMPLEMENTATION OF CY 2014 AUDIT
RECOMMENDATIONS

Of the twenty two(22) recommendations embodied in the CY 2014 and prior years
Annual Audit Reports, seven (7 ) were implemented, seven ( 7 ) were partially implemented
and eight(8 ) were not implemented.

REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
1. The municipality We reiterate our CY The accounting Not Time constraint
still failed to conduct recommendations 2013 office has Implemented and
the physical count of that: AAR maintained the unavailability of
movable assets Pages ledger cards Reiterated as personnel.
contrary to Section a. The local 14-16 for the Finding No. 1
156 of COA Circular chief executive property of this report
No. 92-386 dated immediately AAR records, but it
October 20, 1992 require the conduct 2012 still needs to
and Section 124 of of the physical Pages be verified
the New inventory count 21-24 during the
Government and submission of actual physical
Accounting System a report thereon to AAR inventory.
(NGAS) Manual for the audit team. 2011
LGUs, hence the b. The Page
existence of accountant and 11
Property, Plant and treasurer maintain
Equipment the ledger cards
amounting to and property
P47,410,511.74 as of records,
December 31, 2013 respectively, as
cannot be required by
ascertained and the existing
amounts presented in regulations.
the financial c. The results
statements is of the annual
unreliable. physical inventory
be reconciled with
the accounting and
property records
and the necessary
adjustments made
so that these
records will agree
with the actual

29
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
count and the
related accounts
will thus be
presented fairly in
the financial
statements.
2. The municipality We recommend CY The Partially Management
donated substantial that the present 2013 Sangguniang Implemented explained that
items of property administration AAR Bayan issued per legal advice,
valued at Initiate effort to Pages Resolution no. three demand
P10,202,875.00 recover the 16-20 2014-111 letters are
consisting of lap properties in order series of 2014 required to be
tops, heavy that the granting the sent to the
equipment, motor municipality can request of the barangays
vehicles, office resume efficient Chief concerned before
equipment, a and effective day- Executive for legal action shall
motorized boat, a to-day operations, an authority to be taken.
marina tourism maintain the revoke and
cottage center, a efficient delivery of reclaim First demand
Toyota pick-up, and basic services, and equipments letter was
other equipment to maintain its income donated to already sent to
various barangays from its prime various the concerned
after the May 13, tourist attraction, barangays of barangays.
2013 election but the White Sand the
prior to the end of Bar. municipality.
the outgoing
mayors term
contrary to Section
379 and 381 of the
Local Government
Code of 1991,
leaving the
incoming elected
officials with no
equipment in the
conduct of the day-
to-day operations
thus hampering the
smooth and
effective operation
of the various
offices/departments
30
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
of the municipality
as well as the
delivery of basic
services.

3. Five (5) projects We recommend CY Fully


under the 20% that: 2013 Implemented
Economic a.Evaluate AAR
Development Fund whether the Pages
amounting to projects are still 20-23
P3,392,477.60 were needed, if not,
not implemented as realign the
planned which funds to other
disregards the priority projects
mandate of the of the LGU.
municipality to
deliver basic b.Henceforth,
services to its
constituents 1. Properly
contrary to Section plan and
287 of Republic Act coordinate with
No. 7160, depriving the concerned
municipal officials what
constituents of its projects are to
timely benefits. be prioritized
and see to it
that there are
no problems in
the site where
planned
projects are to
be
implemented
so as not to
hinder its
implementation
and
completion;

2.Provide
sufficient
funding for
31
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
the
Construction
of Covered
Court at
Tupas and
coordinate
with the
Municipal
Engineer for
the Program
of Work; and

3.Require the
concerned
officials to
address
whatever
problems that
have hindered
in the
implementatio
n of the
projects.
4. 4.Because of the We recommend CY Fully
failure of the that management: 2013 Implemented
accounting office to AAR
reconcile the list of a.Require the Pages
employees with the accountant to 24-26
corresponding taxes draw up a
and contributions reconciled
withheld, taxes and alpha-list of the
contributions due to suppliers and
the BIR, GSIS, the
HDMF and corresponding
Philhealth taxes and
amounting to contributions
P1,595,135.44 have withheld that
remained in the have remained
municipalitys books unremitted as
for a period of one of present date.
to three years
contrary to b.Remit
32
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
applicable laws to immediately the
the prejudice of reconciled
these agencies. amounts in
accordance with
pertinent
provisions of RA
8291, RA 1752,
RA 7875, RA
8424 and Section
4(2)(a) of
Revenue
Regulations No.
6-2001.

5. A total of We reiterate our CY Management Not Upon assumption


P2,254,427.22 in recommendations 2013 had already Implemented to office of the
cash advances contained in the AAR sent demand Municipal
remained CY 2012 AAR Pages letters last Accountant,no
unliquidated as of that: 27-29 December files or schedules
December 31, 2013 2012. Some were turned over
in violation of COA a.The Municipal AAR employees for the
Circular No. 97-002 Accountant 2012 already outstanding
dated February 10, issue demand Pages submitted their balance on the
1997, thereby letters to 16-18 liquidation Due to Officers
exposing officials and reports which and Employees
government funds employees PY were account. Some
to possible loss or concerned for AAR consequently original copies of
misuse. the immediate Page recorded in the tickets and
submission to 40 books of the certificates of
the accounting accounting appearance were
office the office. found but with no
liquidation However, liquidation
reports and some still reports. Said
supporting failed to documents were
documents so comply despite turned over to
she can prepare the office concerned officers
the journal memorandum and employees
entries to record issued by and management
the settlement of former Mayor are still awaiting
their reminding for their
outstanding them of COA submission
33
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
cash advances. Circular 2012- together with the
04 dated said liquidation
b. The Municipal November 28 reports for
Accountant 2012. recording in the
determine the Management books.
correct resolved to
breakdown of send another Reiterated as
cash advances demand letters, Finding No.4 of
amounting to copies of this report
P1,282,864.18 which shall be
(as to payees furnished the
and amount) audit team.
and issue
demand letters
for the
settlement
thereof.
6.The Disbursing We recommend CY Fully
Officer failed to that the 2013 Implemented
update, rule, close Disbursing AAR
and indicate the Officer: Pages
balance of his cash 29-30
in his cashbook daily a. Post to the
as required in the appropriate
Instructions for column of the
Cashbook-Cash Cashbook-
Advances in the Cash Advances
Manual on NGAS all transactions
for LGUs, thus his for the day,
accountability at any foot the debit
given time could not and credit
be readily columns, rule
determined. and balance the
cashbook daily
in accordance
with Sections
B and C of the
Instructions for
Accomplishing
Cashbook-
Cash Advances
of the Manual
34
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
on NGAS for
LGUs.

b.Forward the
ending balance
of cash of the
previous day as
the beginning
balance for
next day.

c. Compare, at
the end of each
day, the actual
cash on hand
against the
balance shown
in the cashbook
to ensure that
his cash
accountability
is intact.
7.Copies of We recommend CY Fully
contracts/purchase that management 2013 Implemented
orders were not submit copies of AAR
submitted for audit perfected Pages
and verification contracts/purchase 30-32
within five (5) days orders together
from issuance with the
contrary to COA supporting
Circular Nos. 2009- documents to the
001, 87-278, 89-299 auditor within five
and 96-010, which (5) days after
prevented the auditor approval in
from conducting accordance with
review and COA Circular Nos.
evaluation of the 2009-001, 96-010,
terms and conditions 89-299 and 87-
of the contract at the 278. The copies to
most appropriate be furnished to the
time and manner. auditor should be
separate from
35
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
those being
attached to the
disbursement
vouchers for post-
audit purposes.
8. The municipality We recommend CY The Not Reiterated as
appropriated only that management 2013 requirement Implemented Finding No. 7 of
P40,000.00 for AAR for the this report.
Gender and 1. Appropriate at Pages appropriation
Development least five 32-34 for GAD has
(GAD) programs percent (5%) of been fully
which represented the total budget AAR implemented
only 0.05% of its for Gender and 2010 this year 2015.
total budget Development Pages
appropriation in pursuant to 13-14 GAD plan will
2013 instead of Section 2.3 of be fully
P4,291,419.55 as Joint Circular implemented
required under No. 2012-01 of in CY 2015.
Section 2.3 of the Philippine
PCW, NEDA and Commission On
DBM Joint Women (PCW),
Circular No. 2012- National
01, which Economic And
appropriation was Development
improperly utilized Authority
for the payment of (NEDA) and the
wages of job order Department of
employees thus Budget and
neglecting the Management
implementation of (DBM).
GAD programs
and activities and 2.Discontinue
hindering the charging the
attainment of GAD wages of Job
goals. Order
Employees to
GAD
appropriations
which act is
contrary to law.
9. The unexpended We recommend CY Fully
balance of the that the Municipal 2013 Implemented
36
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
Local Disaster Accountant AAR
Risk Reduction prepare a Pages
and Management disbursement 34-36
Fund (LDRRMF) voucher
for CY 2013 transferring all
totaling unexpended
P4,351,457.40 was balances of the
not transferred to Local Disaster
the Trust Fund Risk Reduction
under the Trust and Management
Liability-DRRM Fund (LDRRMF)
account contrary to amounting to
Section 5.1.10 of P4,351,457.40 in
Commission on the General Fund
Audit Circular No. to the Trust Fund
2012-002 dated to prevent
September 12, reappropriation of
2012, which could the funds for other
lead to possible purposes.
reappropriation of
the funds for other
purposes.
10. Cash advances of We recommend CY Management Partially Non submission
the Disbursing that management: 2012 requiredthe Implemented of the required
Officer, in the total AAR submission of documents for the
amount of 1.Require the Pages the documents liquidation of
P190,000.00 for Disbursement 18-19 and transmittal intelligence funds.
intelligence funds Officer to of the same to
still remained in the immediately the COA Only the first cash
books as of submit to the chairman as advance was
December 31, 2012 COA Chairman soon as submitted to the
contrary to COA the liquidations possible. COA chairman in
Circular Nos. 92- of his cash Quezon City
385 and 97-002, advances on however the LGU
thereby exposing intelligence had not received
the cash advance to funds, otherwise, any credit notice
possible risk/loss or effect the to date. A copy of
unauthorized use. withholding of the transmittal to
his salaries after COA chairman
due notice. has already been
furnished to COA,
2.Furnish the Dgte. Office.
37
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
concerned
Auditor a copy
of the transmittal
letter duly
received by the
Office of the
COA Chairman.

11. Unpaid obligations It is recommended CY The LGU still Not Needs thorough
amounting to that the 2012 need to verify Implemented verification of
P4,197,999.44 had management: AAR these accounts accounts and
remained outstanding Pages before making additional
for over three (3) 1)Require the 24-25 any adjustment manpower to do
years were not Accountant to in the books. the reconciliation.
reverted to revert to
Government Equity,
Additional
Government
contrary to Section 98 Equity all accounts staff will solely
of P.D. 1445 and payable which had focus on the
DBM-COA Joint remained reconciliation
Circular No. 99-06 outstanding in the to fast track
dated November 13, books for a period said
1999, thus overstating of two (2) years reconciliation.
the payable accounts and above
and understating the pursuant to
government equity Section 98 of P.D.
account as of 1445 and DBM-
December 31, 2012. COA Joint
Circular No. 99-06
dated November
13, 1999.

2)Require the
Municipal
Accountant and
Municipal
Treasurer to
review all
recorded
payables and
ascertain those
without valid
claims, revert
the same and
adjust the books
38
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
accordingly.

3)Instruct the
Accountant to
make necessary
adjustments in
the books by
excluding those
obligations
which are not
valid or due and
demandable for
payment at year
end in order to
afford fair
presentation on
the accounts
payable in the
financial
statements.
12. Project amounting Instruct the CY The LGU is Not They need to
to P62,084,466.97 municipal 2011 still in the implemented properly identify
as of December 31, accountant and the AAR process of each project
2011 which have municipal engineer Pages identifying the under the CIP
been recorded prior to verify the 13-15 accounts that account and
to CY 2010 still Construction in have been match them with
remained in the Progress accounts declared as those already
Construction in in order to completed declared by the
Progress accounts determine the based on the Municipal
and were not projects which project status Engineer as
transferred to the have already been reports completed
appropriate asset completed so that submitted by before these
accounts and were the former can the Municipal items can be
not transferred to prepare the journal Engineer. transferred to the
the appropriate entry voucher appropriate
asset accounts as transferring these assets account.
required in Section completed projects
50 of the NGAS to the appropriate
Manual for LGUs, asset accounts in
Volume 1, thus the accordance with
related property Section 50 of the
accounts may not NGAS Manual
39
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
be fairly presented Volume I.
at year end.
13.Management did not We recommend CY There is a Partially The LGU will
strictly enforce that management 2010 standing Implemented have to allow
Section 43 of the observe the AAR Memorandum gradual recovery
General Provisions provisions of Page of Agreement from the present
of the General Section 43 of the 16-18 between the credit status of
Appropriations Act General LGU and these the employees to
of 2010 in the Appropriations Act financial avoid
preparation of of 2010 by institutions delinquency.
payroll, resulting to reviewing the which is why
some employees deductions in the deductions to
receiving a net take preparation of payroll are
home pay of less payroll. It is made. Non-
than P3,000 a recommended that deduction
month. deductions which would mean
are not allowed be penalties and
stopped or arrearages
adjusted so that the which are
employees unfortunately
monthly net take shouldered by
home pay will the borrower
reach the required employee. We
minimum balance shall
of P3,000. We implement this
also recommend recommendatio
that the municipal n on a subdued
accountant advise manner so as
the CFI and DBP not to
of the employees drastically
net take home pay affect the
when they apply financial status
for renewal of their of the
loans so that the employees.
latter can fully
evaluate the Regulate salary
employees paying loans as much
capacity in view of as possible
the minimum net
take home pay
requirement.

40
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
14.Because the We reiterate our PY Fully
Municipal recommendation to AAR Implemented
Accountant did not require the Page
prepare Municipal 10
reconciliation Accountant to
statements for its comply with
deposits maintained Sections 3.2 and
with various banks 3.4 of COA
as required under Circular 96-011
Sections 3.2 and and Section 74 of
3.4 of COA PD 1445 on the
Circular 96-011 preparation of
dated October 12, bank reconciliation
1996, a difference statements and to
of P2,167,697.16 fast track the
between book and identification of
bank balances the reasons for the
remained unreconciled
unreconciled, thus differences so that
adversely affecting the necessary
the reliability and adjusting entries
accuracy of the can be made to
reported Cash in bring both records
Bank balance of into agreement.
P62,309,365.90 as Furthermore, a
of December 31, team should be
2009. created to update
the preparation of
the bank
reconciliation
statements and a
system should be
devised to properly
monitor the bank
reconciliation
process, inclusive
of the submission
and/or retrieval of
documents and the
furnishing of
information
necessary in the
41
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
preparation of
journal vouchers
and the subsequent
recording of the
adjustments in the
books of accounts.

15.The accounting Require the PY Fully


office did not Municipal AAR Implemented
maintain Accountant to Page
subsidiary ledgers prepare and 11
for the Due from maintain
Officers and subsidiary ledgers
Employees and records for the
account in the Due from Officers
amount of and Employees
P3,010,941.73 as account pursuant
required in Section to Section 4 of the
4, Volume I of the NGAS Manual,
NGAS Manual, Volume I.
thereby rendering
the account
balance in the
financial
statements
unreliable.
16.Receivables We recommend PY Management is Not Due to the lapse
amounting to that management AAR still in the Implemented of time, it is
P628,679.05 as of notify the Page process of difficult to keep
December 31, concerned 11 preparing the in touch with
2009 have individuals or necessary those concerned
remained entities to settle documents for for these
outstanding in the their accounts or its verification accounts to be
books for more initiate appropriate and subsequent verified.
than two years and actions to recover write-off
have not been the amounts and to incase it will
reviewed as to request authority be determined
validity or from the that it can no
recommended for Commission on longer be
write-off as Audit through the collected.
required under Sangguniang
Section 64 of Bayan to write off
42
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
GAAM, Volume 1 the amounts
and COA Circular determined to be
No. 76-27, thus the no longer valid.
reported asset
accounts may no
longer be valid and
recoverable.

VALUE FOR
MONEY AUDIT

17.Operations of the We recommend PY A considerable Partially Management is


municipal that management AAR amount has Implemented still in the
waterworks system should reduce as Page been spent in process of
for the calendar much as possible 11 the strengthening its
years 2006-2009 their expenditures rehabilitation water collection.
showed an unstable so that risk of an of the
trend of income and unhealthy financial waterworks
and loss , contrary position can be system.
to guidelines set prevented. The
forth in the Local Chief Regular
establishment and Executive should improvements
operation of initiate the review are still being
economic of operations of made which is
enterprises, which if the economic why it is
uncorrected, could enterprises. projected to
disrupt the Management fully recover
generation of should also from its
additional revenues, implement investments
the improvement or strategies to only after a
production and the revitalize the period of time.
delivery of basic operations of the
goods or services to waterworks system Maximize
its constituents. so that it can collection and
finally become a streamline
viable economic operating
enterprise as it was expenses
meant to be.

18.The accounting Require the PY The previous Partially The


office did not Municipal AAR accountant Implemented unavailability of
maintain subsidiary Accountant to Page failed to prior years
43
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
ledgers and records prepare maintain 37 maintain SLs records makes it
for Cash in Bank, subsidiary ledgers for these hard to establish
Cash-Disbursing and records for accounts which the beginning
Officer and applicable is why it was balances of each
Property, Plant and accounts as difficult to bank account.
Equipment accounts required in determine the
as required in Section4 of the beginning
Section 4, Volume NGAS Manual, balances of
1 of the NGAS Volume 1. every bank
Manual, thus the account.
balance of the However, SLs
controlling accounts for cash
are not adequately disbursing
supported with officer are now
details for easy being
reference and maintained..
counter-checking
and renders the Assign a
account balances in specific
the financial personnel to
statements focus on this
unreliable. task for
immediate
compliance.
19.The absence of Instruct the PY The absence of Not Management is
subsidiary records Municipal AAR records of prior Implemented still trying to
for the land Treasurer and the Page years and the retrieve the
accounts recorded Municipal 38 retirement disbursement
in the books at Accountant to from office of vouchers relative
P1,115,970.50 as maintain their those officers to the purchase
of December 31, respective property in charge of of said properties
2007 makes it records for each these records in order to check
difficult to real property and makes it whether copies
determine the the Municipal difficult, if not of the Deed of
proper Assessor to impossible to Sale or any
composition prioritize the filing establish and documents
thereof. of application for produce which shall serve
Moreover, various titling of all real necessary as proof of
parcels of land properties acquired documents. purchase may
acquired from by the municipal have been
previous years up government so that attached to the
to present are not transfer certificates vouchers. These
44
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
covered by transfer of title in favor of properties have
certificates of title the municipality been in existence
in favor of the can be issued to long before the
Municipality of establish time of the
Manjuyod, thus the ownership thereto. current
municipality still Municipal
has no tangible Accountant and
evidence of Treasurer so they
ownership on these cannot
properties. immediately
trace any records
of its purchase.
20.The cashbook and Require the PY The Partially Tremendous
ledger balances of Municipal AAR Accounting Implemented back log left by
the cash accounts Accountant and Page and the previous
under the General, the Municipal 39 Treasurers Municipal
Special Education Treasurer to Offices have Accountant had
and Trust Funds reconcile the only checked made it difficult
showed a total cashbooks with the and reconciled to update all the
difference of corresponding amounts records and take
P510,204.42 as of subsidiary ledgers pertaining to up the necessary
December 31, 2007 and prepare the current years. reconciling items
because the necessary The balances between the
accountable officers adjusting entries to of prior years cashbook and the
and the Municipal correct the cash still need to be ledger balances.
Accountant did not balances as of verified and
reconcile their December 31, reconciled
records as required 2007. before making
in Section 181 of the necessary
the Government adjustments.
Accounting and
Auditing Manual
(GAAM), Volume
1, thus affecting the
fairness of
presentation of the
cash account in the
financial
statements.

21. The LGU did not We recommend PY No action was Not Lack of
45
REASON FOR
AUDIT RECOMMENDATIONS REF MANAGEMENT STATUS OF PARTIAL/NON-
OBSERVATIONS ACTION IMPLEMETATION IMPLEMENTATION
create an Internal that LGU AAR taken. Implemented sufficient budget
Audit Service management Page and exceed PS
(IAS) as should evaluate 39 limitation
mandated per and take into prevents the
Administrative consideration the hiring of non-
Order No. 70 advantages in mandatory
dated April 14, creating an position
2003 of the Internal Audit
President of the Service, so that
Philippines, management may
resulting to a less achieve efficient
efficient and less and effective fiscal
effective fiscal administration and
administration performance of its
and performance affairs and
of agency affairs functions.
and functions.

22.Reconciling items Require the PY Some Partially The verification


amounting to Municipal AAR reconciling Implemented is still on going.
P3,009,182.95 Accountant to Page items have
remained verify the validity 40 already been
unrecorded in the of the reconciling recorded.
books of accounts items and to draw Those that still
due to lack of journal entry needs to be
sufficient vouchers to record verified are not
documents, thus all valid yet recorded.
validity of cash in reconciling items Further
bank account in order to bring verifications
balance remains into agreement the are still being
doubtful. cash in bank made
balances per books
and per bank
statement.

Prepared by: Reviewed by:

`
ANTONIETA T. MACAHIG MARIFE A. ALCALA
Team Member OIC-Team Leader
46
PART IV ANNEXES

TITLE PAGE

General Fund
Balance Sheet A.1
Statement of Income and Expenses A.2
Statement of Cash Flows A.3
Special Education Fund
Balance Sheet B.1
Statement of Income and Expenses B.2
Statement of Cash Flows B.3
Trust Fund
Balance Sheet C.1
Statement of Cash Flows C.2

Status of Appropriations, Allotments and Obligations


General Fund Current Legislative Appropriation D.1
General Fund Continuing Legislative Appropriation D.2
Special Education Fund Current Legislative Appropriation D.3
Special Education Fund Continuing Legislative Appropriation D.4

Others
Schedule of Cash Advances-DO not supported Annex I
With copies of the approved payrolls or list of
Payees indicating their net payments
Schedule of PEI Payrolls exceeding P 5,000.00 Annex II
Allowed under E.O. No. 80 dated 7/20/12
List of Accountable Officers with Unliquidated Annex III
Cash Advances
Inspection Report Annex IV
Schedule of Payees for TUPAD Workers
Whose Signatures Do Not Match with the DTRs Annex V
Schedule of Disbursement Vouchers not supported with Annex VI
Complete documentation
GAD Plan Annex VII

47

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