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Introduction
The City of Dasmariñas, Cavite was created by virtue of Republic Act (RA) No.
9723 dated October 15, 2009 and was ratified and approved on November 26, 2009 in a
plebiscite held on November 25, 2009. The City is composed of 75 barangays. It is a
lone congressional district of the Province of Cavite.
The consolidated financial statements of the City for the Fiscal Year 2016 have
been prepared in accordance with and comply with the Philippine Public Sector
Accounting Standards (PPSAS). The consolidated financial statements are presented in
pesos, which is the functional and reporting currency of the City. The Accounting
policies have been applied starting the Calendar Year (CY) 2015.
a. Key Officials
Permanent : 555
Temporary : 5
Contractual : 1,123
Elective Officials : 15
Coterminous : 35
Total 1,733
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Financial Highlights
For CY 2016, the City generated a total income of P2,115,411,143.79, from local
taxes, permits and licenses, service and business income, internal revenue allotment and
other receipts which is higher by P273,157,243.75 from last year’s income of
P1,842,253,900.04 The total funds utilized for the year amounted to P1,668,535,110.27
out of the current and continuing appropriations of P2,907,829,581.52.
The Total Assets, Liabilities, Equity, Income and Expenses for CY 2016 are as
follows:
Scope of Audit
Financial, compliance and value for money audits were conducted on the accounts
and operations of the City for CY 2016. The audit was conducted to ascertain the
fairness of the presentation of the financial statements and compliance of the City with
laws, rules and regulations, as well as the economical, efficient and effective utilization
of resources.
1. The reported balances of Property, Plant and Equipment (PPE) accounts with
net amount of P2,912,046,849.30, representing 55.09% of the total assets of
P5,285,914,951.15 as of year-end, were unreliable due to a discrepancy of
P143,656,603.86 between the Accounting records and the Report on the Phys-
ical Count of Property, Plant, and Equipment (RPCPPE), contrary to Section
114 of the Manual on the New Government Accounting System (MNGAS),
Volume I.
2. The Real Property Tax (RPT) and Special Education Tax (SET) Receivables
of P232,271,615.00 each or a total of P464,543,230.00 set at the beginning of
the year were still based on estimates due to inaccurate information generated
by the Real Property Tax Administration System (RPTAS), contrary to Sec-
tion 20 of the Manual on the New Government Accounting System
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(MNGAS), Volume I, thus affecting the reliability of the year-end balances of
the RPT and SET Receivables and Deferred Real Property Tax and Special
Education Tax Income (now Deferred Real Property Tax and Special Educa-
tion Tax per PPSAS).
a. City Accountant and the General Services Officer to analyze and reconcile
the discrepancy of P143,656,603.86 between the Accounting records and
the RPCPPE and make the necessary adjustments;
d. City General Services Officer to submit copy of the RPCPPE to the Audi-
tor in the prescribed format not later than January 31 of each year; and
e. City General Services Officer to prepare the Inventory and Inspection Re-
port of Unserviceable Property and the Waste Material Report for
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unserviceable properties worth P2,946,823.60, and coordinate with the
City Accountant for dropping in the books of accounts after compliance of
requirements for disposal.
a. City Mayor direct the City Assessor to address the issue on the inaccurate
information generated by the system such as double declaration of as-
sessed value of properties, non-cancellation of the original tax declaration,
revisions thereof and transfer of ownership in order for the City Treasurer
to come up with an accurate certified list of taxpayers and tax due and col-
lectible every beginning of each year; and
c. City Accountant to prepare and submit the Report on Sources and Utiliza-
tion of Disaster Risk Reduction Management Fund (DRRMF) on a month-
ly basis so that prompt and proper evaluation and monitoring of projects
and activities charged to the LDRRMF could be undertaken.
a. City Mayor instruct the Market Administrators to exert efforts in the col-
lection of rental and other market fees totaling P22, 292,917.32;
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c. City Mayor, thru the Sangguniang Panlungsod, review and evaluate mar-
ket operations, specifically the collection of market fees, and strictly im-
plement the policy on the cancellation of lease right and/or eviction of de-
linquent stallholders; and
The other deficiencies noted in the audit of the accounts and transactions of the
City are as follows:
2. At least 23 establishments with significant transactions with the City alone under
declared their gross sales/receipts by as much as P260,561,192.98, thus business
taxes of P2,011,316.77 were not collected.
b. City Accountant to submit to the Business Permit and Licensing Office a List
of Payment made to Contractors/Suppliers who transacted with the City Gov-
ernment in the preceding calendar year to serve as one of the bases in the as-
sessment of business taxes in the current year; and
c. OIC, Business Permit and Licensing Unit to verify/assess the gross receipts of
the 23 establishments and validate the reported under collection totaling
P2,011,316.77 and enforce the collection of underpayment, including penal-
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ties and surcharges, if applicable, pursuant to the rates provided in the City’s
Revenue Code. Absence of documented action or information to counter the
under collection shall result in the issuance of the corresponding Notice of
Charge (NC).
3. Two hundred-ninety two (292) items listed as issued by the Division Office to
various public schools totaling P8,720,189.42 were unaccounted during the ocular
inspection conducted by the Audit Team, hence, may result in possible loss of
government funds if could not be found and presented for validation.
4. One hundred twenty-five (125) sets of robotic equipment worth P4,570,000.00 for
science class purposes for school curriculum 2016-2017 and P605,612.00 worth
of tools for K to 12 program were not put into use due to non-inclusion of robotic
course in science classes and inappropriate tools for use by K-11 students, respec-
tively, thus defeating the purpose for which the items were procured.
We recommended that the OIC, Schools Division Superintendent ensure that the
tools and equipment worth P4,570,000.00 and P605,612.00, respectively, are
utilized by the respective schools in the following school year, and that tools and
equipment to be procured in the future are the actual needs of the schools and
students.
5. The Invitation to Apply for Eligibility and to Bid (IAEB) for the procurement of
goods and services and infrastructures with an Approved Budget for the Contract
of more than P2,000,000.00 and more than P5,000,000.00, respectively, were ad-
vertised in a newspaper which is not among those of general nationwide circula-
tion, contrary to Section 21.2.1, Rule VII of RA No. 9184, thus the widest possi-
ble dissemination of the procurement opportunity was not ensured. Moreover, the
City could have saved P1,100,450.00 had IAEBs below thresholds were not pub-
lished in a newspaper.
a. Chairman, Bids and Awards Committee advertise the Invitation to Apply for
Eligibility and to Bid (IAEB) for the procurement of goods and services and
infrastructure projects, respectively, in a newspaper of general nationwide cir-
culation to comply with Section 21.2.1 of the 2016 Revised IRR of RA No.
9184, to ensure the widest possible dissemination of the procurement oppor-
tunity, and
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b. Bids and Awards Committee limit the advertisement of IAEB in a newspaper
where the ABCs are more than the thresholds provided in RA No. 9184 to
save on advertising cost.
6. The amount of P1,311,193.18 Bottom-Up Budgeting (BuB) funds was used for
other purposes not in conformity with the Memorandum of Agreement/Project
Profile. Likewise, the amount of P200,000.00 for the ripprapping embankment
remained unutilized as of December 31, 2016, resulting in delays in the attain-
ment of the project’s objective. Also, lack of basic information on the implemen-
tation of one project as against the Memorandum of Agreement (MOA) was not-
ed. Furthermore, the unexpended balances of BuB projects totaling P655,009.64
were not returned to source agencies after completion of the projects as required
in Commission on Audit Circular (COA) No. 94-013.
a. City Social Welfare and Development Officer and OIC, CDRRMO to submit
valid justification/explanation on the use of P1,311,193.18 for purposes not in
conformity with the Memorandum of Agreement/Project Profile and City
General Services Officer on and OIC, CDRRMO to demand the delivery of
the two sets SRR uniform or recommend the refund of P10,800.00 from the
Supplier and impose liquidated damages for failure to deliver on time;
b. City Engineer to expedite the use of the P200,000.00 for the implementation
of the Riprapping of Embankment;
c. City Agriculturist to submit the time frame for the implementation of the pro-
ject and monitoring scheme to be able to assess if the project objectives of the
Organic Vegetables Production Demo Farms Project were met; and
We recommended that the City Mayor implement the allocation of 1% IRA for
the strengthening and implementation of programs, projects and activities of the
Local Councils for the Protection of Children (LCPC) in accordance with Section
15 of RA No. 9344 and DILG Memorandum Circular No. 2012-120.
8. Submission of disbursement and collection reports to the Auditor’s Office was de-
layed, ranging from 10 to 140 days, contrary to Section 7.2.1(a) of COA Circular
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No. 2009-006 dated September 15, 2009. Moreover, there were delays of 36 to
53 days in the submission of the year-end financial statements and schedules by
the City Accountant, contrary to Section 41 of PD No. 1445 and COA Circular
No. 2010-01.
a. City Mayor require the City Accountant to strictly observe the time frame
provided under Section 7.2.1(a) of COA Circular No. 2009-006 and Section
41 of PD No. 1445 on the submission of the year-end financial reports, to-
gether with the supporting schedules for a timely examination and review of
the financial transactions of the City. The provisions of Section 122 of PD
No. 1445 should likewise be enforced for non-compliance thereof; and
Of the 24 prior year’s audit recommendations embodied in the 2015 Annual Audit
Report, 11 were fully implemented, 10 were partially implemented and 3 remained not
implemented by the City Government.
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