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Republic of the Philippines

COMMISSION ON AUDIT
Audit Group C
Province of Bukidnon

OFFICE OF THE SUPERVISING AUDITOR


Provincial Capitol, Malaybalay City
____________________________________________________________________

March 19, 2014

Honorable Jerry O. Canoy


Municipal Mayor
Kadingilan, Province of Bukidnon

Dear Mayor Canoy:

We are pleased to transmit the Annual Audit Report (AAR) on the audit of the
accounts and operations of the Municipality of Kadingilan, Province of Bukidnon, for the
year ended December 31, 2013, in compliance with Article IX-D of the Philippine
Constitution and pertinent provisions of Section 43 of Presidential Decree No. 1445.

The audit was conducted in accordance with generally accepted state auditing
standards and we believe that it provides reasonable bases for the results of the audit.

We expressed a qualified opinion on the fairness of presentation of the financial


statements of the Municipality in view of the exceptions noted in audit, as stated in the
Independent Auditor’s Report in Part I of this report.

The significant audit findings and recommendations that need immediate action
are as follows:

1. Unaware of pertinent regulation, one unit vehicle with an acquisition cost


of P711,000.00 for the use of the local school board was recorded in the
books of the General Fund instead of the Special Education Fund, thus,
the balances of the Property, Plant and Equipment, and the Government
Equity accounts, including the pertinent depreciation accounts in the
financial statements under Special Education fund are misstated with the
marked unrecorded acquired asset totaling P711,000.00.

It is recommended that Management requires the Municipal Accounting Office to


facilitate proper accounting of the acquired vehicle in the books of accounts under
Special Education Fund. Otherwise, the inaction to properly classify the same will/shall
cast doubt as to its status of ownership under fund accounting/recording system
implemented by local government units in pursuance to COA Circular 92-382 dated July
3, 1992. The condition also affects the fair presentation of the account balances of the
Property, Plant and Equipment and Government Equity, including the depreciation
accounts, of the financial statements under Special Education Fund with the marked
unrecorded acquired asset totaling P711,000.00.

2. Due to non-demand for return made by the LGU, one (1) unit pick-up
vehicle bought on January, 2012 with an acquisition cost of P1,582,226.00
was not returned by former Local Chief Executive, in violation of internal
control system over property and supply management, which may place the
government in an disadvantageous situation and putting the situation at risk
of loss of property.

It is recommended that Management requires the Municipal Treasurer to send a


demand letter to the former Local Chief Executive for the immediate return of the rescue
vehicle. In case of the latter’s inaction to return the same, avail all appropriate legal
remedies. In so doing, additional facility is available for use anytime and putting the
situation at risk of loss of property be avoided.

3. Balances of Accounts Receivable cannot be accurately determined because


the Municipal Accountant’s Office was not furnished with pertinent
Memorandum of Agreement on oil palm livelihood program implemented by
the previous administration, which spells out the liability/obligation of the
beneficiaries, thereby giving confusion and inexact data to the users of
information and understating this account by P6,444,850.00.

It is recommended that Management requires the Municipal Agriculture Office to


furnish the Municipal Accountant’s Office the pertinent Memorandum of Agreement for
scrutiny and if found in order, to set up and/or record Accounts Receivable accounts to
all the concerned beneficiaries as basis for subsequent collections of the amount due. In
so doing, substantial compliance to the above mention regulation is attained.

The audit findings together with the recommended courses of action which were
discussed by the Audit Team with concerned Management officials and staff during the
exit conference conducted on February 22, 2014 are discussed in detail in Part II of the
report.

We request that the recommendations be implemented and we would appreciate


being informed of the action taken hereon within (60) days from receipt hereof.
We acknowledged the support and cooperation extended to our Audit Team by
the officials and employees of the Municipality of Kadingilan.

Very truly yours,

By Authority of the Chairman:

AMORAN M. BANOCAG, CPA


State Auditor V
Supervising Auditor

Copy furnished:

1. The Regional Director


Dept. of Interior and Local Government
Regional Office No. X
Cagayan de Oro City

2. The Regional Director


Bureau of Local Government Finance
Regional Office No. X
Cagayan de Oro City

3. The Regional Director


Department of Budget and Management
Regional Office No. X
Cagayan de Oro City

4. The Honorable Members of the Sangguniang Bayan


(Thru the Secretary, Sanggunian Bayan)

5. File – Office of the Regional Director


COA Regional Office No. X
Cagayan de Oro City

6. File – Office of the Supervising Auditor


Audit Group C – Province of Bukidnon

7. File – Office of the Audit Team Leader


Republic of the Philippines
COMMISSION ON AUDIT
Municipality of Kadingilan

Office of the Audit Team Leader


Audit Group C Team 6

February 28, 2014

Mr. Amoran M. Banocag, CPA


State Auditor V
Supervising Auditor
Audit Group C – Province of Bukidnon
Provincial Capitol, Malaybalay City

Sir:

We are submitting the Annual Audit Report (AAR) on the Municipality of


Kadingilan, Bukidnon for the year ended December 31, 2013 pursuant to Section 2,
Article IX-D of the Philippine Constitution and Section 43 (2) of Presidential Decree No.
1445.

The audit was conducted on a test basis to ascertain the propriety of financial
transactions and the extent of compliance by the municipality with laws and regulations.
It was also made to ascertain the accuracy of financial records and reports, as well as, the
fairness in the presentation of accounts in the financial statements.

The report consists of four parts. Part I contains Audited Financial Statements.
Part II details the Findings and Recommendations which were discussed with the
Municipal Mayor, and other key Officials during the exit conference on February 22,
2014. Part III provides the Status of Prior Year’s Audit Recommendations, and Part IV
shows the Annexes.

We rendered a qualified opinion on the fairness of presentation of the financial


statements as of December 31, 2013, for reasons stated in the report.

Our audit was conducted in accordance with the generally accepted state auditing
standards and we believe that it provides reasonable bases for the results of the audit.
We acknowledge the cooperation extended to us by the Officials and Employees
of the Municipality of Kadingilan during the audit.

Very truly yours,

FLORISA O. VIRTUDAZO, CPA


State Auditor III
Audit Team Leader
Republic of the Philippines
COMMISSION ON AUDIT
Commonwealth Avenue,
Quezon City

ANNUAL AUDIT REPORT

ON THE

MUNICIPALITY OF KADINGILAN
Province of Bukidnon

For the year ended December 31, 2013


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EXECUTIVE SUMMARY

A. Introduction

The Municipality of Kadingilan, Bukidnon was officially granted the status of a


municipality on August 6, 1971. It maintained its classification as third class category by
virtue of Memorandum Circular No. 01-M(16)-08 dated November 24, 2008 by the
Department of Finance. It continues to strive for a progressive agri-industrialized and
ecologically balance community of God-loving and empowered citizenry. It is now
under the new stewardship in the person of Honorable Jerry O. Canoy in view of May 13,
2013 local election.

B. Financial Highlights

Financial Condition

As of December 31, 2013, the consolidated financial condition of the


Municipality, showed the following:
CY 2013 CY 2012 Increase/
(Decrease)

Assets P107,361,793.22 P101,463,098.93 P5,898,694.29

Liabilities P 41,509,854.83 P 44,463,253.01 (P2,953,398.18)

Government Equity P65,851,938.39 P 56,999,845.92 P8,852,092.47

Sources and Applications of Funds

For CY 2013, the Municipality had the following sources and applications
of funds:

CY 2013
GF SEF
A. Current Year Appropriations P64,333,792.00 P550,000.00

Allotments P64,333,792.00 P550,000.00


Obligations P59,966,048.13 P547,459.79
B. Continuing Appropriations
Allotments P 3,088,014.55 -
Obligations P 1,922,754.75 -

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C. Operational Highlights
During the year, the Municipality generated operating income of P71,991,572.54,
exceeding last year’s income by P6,285,092.05 or 9.5%.

The Municipality implemented 24 activities/ projects under its continuing


appropriations; 6 activities in its support to Peace and Order; 7 Health related activities
and 26 activities for Gender and Development (GAD) Program.

D. Scope of Audit
The audit covered the accounts and operations of the Municipality of Kadingilan,
Bukidnon for the period January 1 to December 31, 2013. The audit was undertaken to
ascertain the fairness in the presentation of the financial statements and adherence of the
city with laws, rules and regulations, and whether programs, activities and projects were
carried out in an economical, effective and efficient manner.
.
E. Independent Auditor’s Report on the Financial Statements

The Auditor rendered a qualified opinion on presentation of the financial


statements of the Municipality of Kadingilan, for the year ended December 31, 2013, as
discussed in Part I of the report.

F. Summary of Significant Findings and Recommendations

The municipality implemented 24 activities/projects under its continuing


appropriations; 6 activities in its support to Peace and Order; 7 Health related activities
and 26 activities for Gender and Development (GAD) Program.

The following are some of the significant audit findings and recommendations,
which were discussed during the exit conference:

1. Unaware of pertinent regulation, one unit vehicle with an acquisition cost


of P711,000.00 for the use of the local school board was recorded in the
books of the General Fund instead of the Special Education Fund, thus,
the balances of the Property, Plant and Equipment, and the Government
Equity accounts, including the pertinent depreciation accounts in the
financial statements under Special Education fund are misstated with the
marked unrecorded acquired asset totaling P711,000.00.

It is recommended that Management requires the Municipal Accounting Office to


facilitate proper accounting of the acquired vehicle in the books of accounts under
Special Education Fund. Otherwise, the inaction to properly classify the same will/shall
cast doubt as to its status of ownership under fund accounting/recording system

iii
implemented by local government units in pursuance to COA Circular 92-382 dated July
3, 1992. The condition also affects the fair presentation of the account balances of the
Property, Plant and Equipment and Government Equity, including the depreciation
accounts, of the financial statements under Special Education Fund with the marked
unrecorded acquired asset totaling P711,000.00.

2. Due to non-demand for return made by the LGU, one (1) unit pick-up
vehicle bought on January, 2012 with an acquisition cost of P1,582,226.00
was not returned by former Local Chief Executive, in violation of internal
control system over property and supply management, which may place
the government in an disadvantageous situation and putting the situation
at risk of loss of property.

It is recommended that Management requires the Municipal Treasurer to send a


demand letter to the former Local Chief Executive for the immediate return of the rescue
vehicle. In case of the latter’s inaction to return the same, avail all appropriate legal
remedies. In so doing, additional facility is available for use anytime and putting the
situation at risk of loss of property be avoided.

3. Balances of Accounts Receivable cannot be accurately determined


because the Municipal Accountant’s Office was not furnished with
pertinent Memorandum of Agreement on oil palm livelihood program
implemented by the previous administration, which spells out the
liability/obligation of the beneficiaries, thereby giving confusion and
inexact data to the users of information and understating this account by
P6,444,850.00.

It is recommended that Management requires the Municipal Agriculture Office to


furnish the Municipal Accountant’s Office the pertinent Memorandum of Agreement for
scrutiny and if found in order, to set up and/or record Accounts Receivable accounts to
all the concerned beneficiaries as basis for subsequent collections of the amount due. In
so doing, substantial compliance to the above mention regulation is attained.

4. Other noted finding and corresponding recommendation is discussed in


Part II of this report.

G. STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT


RECOMMENDATIONS

All Prior Year’s Audit Recommendations were substantially acted by concerned


Officials and Employees of the municipality during the ensuing year.

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TABLE OF CONTENTS

PART I – FINANCIAL STATEMENTS Page

 Independent Auditor’s Report 1-3


 Statement of Management Responsibility 4
 Consolidated Detailed Balance Sheet 5-6
 Consolidated Detailed Income Statement and Expenses 7-8
 Consolidated Detailed Statement of Cash Flows 9-10
 Notes to the Financial Statements 11-16

PART II – DETAILED FINDINGS AND RECOMMENDATIONS

 Financial and Compliance Audit 17-21

PART III – STATUS OF IMPLEMENTATION OF PRIOR YEAR’S


AUDIT RECOMMENDATIONS 22-25

PART IV – ANNEXES

 Financial Statements by Fund 26-38

 Status of Appropriations, Allotments and Obligations

- Current Legislative Appropriations (General Fund) 39


- Continuing Appropriations (General Fund) 40
- Current Legislative Appropriations (Special Educ. Fund) 41
- Continuing Appropriations (Special Education Fund) 41

 Oil Palm Livelihood Program 42-43


PART I- FINANCIAL STATEMENTS
Republic of the Philippines
COMMISSION ON AUDIT
Municipality of Kadingilan
Province of Bukidnon

OFFICE OF THE TEAM LEADER

INDEPENDENT AUDITOR’S REPORT

Honorable Jerry O. Canoy


Municipal Mayor
Kadingilan, Bukidnon

We have audited the accompanying consolidated financial statements of the Municipality


of Kadingilan, Province of Bukidnon, which comprise the consolidated financial position
as at December 31, 2013, the consolidated statements of income and expenses and
statement of cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory information.

Management Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with State accounting principles, and for such internal
control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or
error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements


based on our audit. We conducted our audit in accordance with Philippine Public Sector
Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance whether the consolidated
financial statements are free from material misstatements. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment including
the assessment of the risks of material misstatements of the consolidated financial
statements, whether fraud or error. In making those risks assessment, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate

1
in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our qualified audit opinion.

Basis for Qualified Opinion

As discussed in Part II of the report, there were exceptios noted in audit affecting the fair
presentation of the consolidated financial statements that need positive remedial
measures, such corrective measures shall be made after the balance sheet date, such as:

1. Unaware of pertinent regulation, one unit vehicle with an acquisition cost of


P711,000.00 for the use of the local school board was recorded in the books
of the General Fund instead of the Special Education Fund, thus, the balances
of the Property, Plant and Equipment, and the Government Equity accounts,
including the pertinent depreciation accounts in the financial statements under
Special Education fund are misstated with the marked unrecorded acquired
asset totaling P711,000.00;

2. Due to non-demand for return made by the LGU, one (1) unit pick-up vehicle
bought on January, 2012 with an acquisition cost of P1,582,226.00 was not
returned by former Local Chief Executive, in violation of internal control
system over property and supply management, which may place the
government in an disadvantageous situation and putting the situation at risk
of loss of property; and

3. Balances of Accounts Receivable cannot be accurately determined because


the Municipal Accountant’s Office was not furnished with pertinent
Memorandum of Agreement on oil palm livelihood program implemented by
the previous administration, which spells out the liability/obligation of the
beneficiaries, thereby giving confusion and inexact data to the users of
information and understating this account by P6,444,850.00.

4. Farm tractor was recorded as capital outlay at P1 Million only in the General
Fund books, instead of P2.198 Million, the acquisition cost, due to non-
transfer of funds from Trust to General Fund thereby affecting the fair
presentation of the account balances of the Property, Plant and Equipment and
Government Equity in the financial statements under General Fund, contrary
to Section 63 of Presidential Decree No. 1445.

2
Qualified Opinion

In our opinion, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph, the consolidated financial statements present fairly, in all material
respects, the financial position of the Municipality of Kadingilan, Province of Bukidnon
as of December 31, 2013 and its financial performance and its cash flows for the year
then ended in conformity with State accounting principles applied on consistent basis.

COMMISSION ON AUDIT

By:

FLORISA O. VIRTUDAZO, CPA


State Auditor III
Audit Team Leader

February 28, 2014

3
Republic of the Philippines
PROVINCE OF BUKIDNON
Municipality of Kadingilan

Statement of Management Responsibility for Financial Statement

The Management of the LOCAL GOVERNMENT UNIT OF KADINGILAN,


BUKIDNON is responsible for all information and representation contained in the
Balance Sheet as of December 31, 2013 and the related Statement of Income and
Expenses and Statement of Cash Flows for the period then ended. The financial
statement have been prepared in conformity with generally accepted accounting
principles and reflec amounts that are based on best estimates and informed judgment of
management with an appropriate consideration of materiality.

In this regards, management maintains a system of accounting and reporting


which proivdes for the necessary internal controls to ensure that transactions are
properly authorized and recorded, assets are safeguarded against an authorized use or
dispositon and liabilities recognized.

Municipal Accountant

Local Chief Executive

4
5
“See accompanying Notes to Financial Statement”

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MUNICIPALITY OF KADINGILAN
Consolidated Detailed Statement of Income and Expenses
As of December 31, 2013
(with comparative figures for CY 2012)
2013 2012
Income:
LOCAL TAXES:
Amusement Tax 750.00
Business Tax 323,744.56
Community Tax 248,605.25 266,088.97
Property Transfer Tax
Real Property Tax 1,238,942.88 975,164.36
Other Specific Income
Fines and Penalties-Local Taxes
TOTAL 1,811,292.69 1,242,003.33
PERMITS AND LICENSES:
Fees on Weights and Measure 3,705.00 3,605.00
Permit Fees 27,925.00
Registration Fees 227,689.50 358,930.52
Other Permits and Licenses 1,150.00 1,006,377.32
Fines and Penalties-Permits and
Licenses 1,290.39
TOTAL 261,759.89 1,368,912.84
SERVICE INCOME:
Clearance and Certification Fees 164,758.90 141,713.26
Garbage Fees 16,460.00 10,935.00
Medical, Dental and Laboratory
Fees
Tool and Terminal Fees
Other Fees 592,931.87 121,937.00
Other Service Income 174,065.00 200
TOTAL 948,215.77 274,785.26
BUSINESS INCOME:
Medical/dental & Laboratory fees 500,202.59 1,260.00
Income from Economic Enterprise
Income from Cemetery Operation 30,100.00 29,700.00
Income from Markets 633,500.50 588,613.00
Income from Slaughterhouse 86,165.00 64,692.50
Income from Waterworks 849,456.84 1,003,193.46
Sales Revenue 28,777.00 38,104.50
Rent Income 4,277,438.10 5,471,288.00
TOTAL 6,405,640.03 7,196,851.46
Other Business Income 7,091.38 108,024.83
Fines and Penalties-fees ,permits &license Income
TOTAL 7,091.38 108,024.83
OTHER INCOME:
Subsidy from other funds
Interest Income 91,704.60
Internal Revenue Allotment 62,140,956.00 55,219,548.00

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Miscellaneous Income 1,004.00
Other Gains 139,897.19
Other Income 416,616.78 63,748.98
TOTAL 62,557,572.78 55,515,902.77
Gain on Sale of Asset
TOTAL INCOME 71,991,572.54 65,706,480.49
LESS: EXPENSE

Personal Services 28,135,851.43 27,194,674.08

Maintenance and Other Operating Expenses 35,569,919.36 35,696,491.15


Fidelity Bond Premium
Subsidy to Operating Units

Subsidy to Local Government Units 34,000.00

Subsidy to Other Funds 2,116,207.42


Insuranse Expense
Other Maintenance and Operating Expenses
Depreciation 3,787,527.29

TOTAL 65,855,978.21 66,678,692.52

NET OPERATING INCOME 6,135,594.33 (972,212.03)

LESS: Depreciation Expenses 2,453,608.29

INCOME AFTER DEPRECIATION 3,681,986.04 (972,212.03)


LESS: FINANCIAL EXPENSE
Bank Charge 831,620.98 990,478.49
INCOME BEFORE SUDSIDIES AND EXTRAORDINARY ITEM 2,850,365.06 (1,962,690.52)

ADD: SUBSIDY INCOME


Subsidy from other funds 16,785,786.07 -
Income from Donation
TOTAL 16,785,786.07 -
Total Income before Extraordinary Item 19,636,151.13 (1,962,690.52)
NET INCOME 19,636,151.13 (1,962,690.52)

“See accompanying Notes to Financial Statements”

8
MUNICIPALITY OF KADINGILAN
Consolidated Detailed Statement of Cash Flows
As of December 31, 2013
(with comparative figures for CY 2012)

2013 2012

Cash Flows from Operating Activities:


Cash Inflows:
Collection from Taxpayers 4,205,046.63 1,242,003.33
Share from internal Revenue Coll. 62,140,956.00 55,219,548.00
Receipts from sale of good/Services 6,083,116.44 9,244,929.16
Receipts from National Government
Receipts from Provincial Govenrment
Interest Income
Other Receipts 38,958,054.28 35,825,831.23

Total Cash Inflows 111,387,173.35 101,532,311.72


Cash Outflows:
Payments-
To Suppliers/Creditors 7,902,982.25 79,383,355.95
To Employees 14,681,188.66 27,194,674.08
To Government Agencies
Other Expenses 17,047,023.26 8,621,486.46

Total Cash Outlflows 39,631,194.17 115,199,516.49

Net Cash from Operating Activities 71,755,979.18 (13,667,204.77)


Cash Flows from Investing Activities:
Cash Inflows:
Decrease in Asset Through Depreciation 1967953.16
From Sale of Property, Plant & Equipment
From Sale of debt Securities of Other entities
From Collection of Principal on loans to other
Entities 6,594,119.44
Total Cash Inflows 6,594,119.44 1,967,953.16

Cash Outflows:
Construction in Progress
To Purchase property,Plant & Equipment 79,433,342.03 1,122,543.07

Total Cash Outflows 79,433,342.03 1,122,543.07

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Net Cash from investing Activities (72,839,222.59) 845,410.09
Cash Flows from financing Activities:
Cash Inflows:
From Issuance of Debt Securities
From Acquisition of Loan
Due to Other Funds
Total Cash Inflows 0.00 0.00
Cash Outflows:

Payments of loan Amortization 1,362,036.32


TOTAL CASH OUTFLOW 0.00 1,362,036.32
NET CASH FROM FINANCING ACTIVITIES 0.00 -1,362,036.32
NET INCREASE IN CASH (1,083,243.41) -14,183,831.00
CASH AT BEGINNING OF THE PERIOD 23,620,807.11 37,804,638.11

CASH AT THE END OF THE PERIOD 22,537,563.70 23,620,807.11

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Municipality of Kadingilan
Notes to Consolidated Financial Statements
(With Comparative Figures for 2012)

1. GENERAL/AGENCY PROFILE

1.1.The Municipality of Kadingilan was created pursuant to Republic Act 6368


On August 16, 1971.

The Local Government Unit of Kadingilan strive to increase productivity through


establishment of environmentallly sustainable agri-based rural industries by accessing
funds from various financial institution and mobilizing people’s participation towards
effective local governance. The LGU forsee Kadingilan as a progressive agri-
industrialized and ecologically balance community of God-loving and empowered
citizenry.
1.2. There are (4) four funds maintained by the LGU namely
-General Fund
-Trust Fund
-Special Education Fund
-LPRAP-BUB Trust Funds
1.3. Economic Enterprise maintained by the LGU are the following:
-Cemetery operation
-Market
-Slaughterhouse
-Waterworks
-Tool roads and bridges for heavy equipment operation

2. BASIS OF FINANCIAL STATEMENT PRESENTATION

2.1. The consolidated financial statements have been prepared in accordance with
generally accepted state accounting principles and standards.

3. SUMMARY SIGNIFICANT ACCOUNTING POLICIES


3.1. The agency uses accrual basis of accounting. All expenses are recognized
when incurred and 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 or when other methods are required by law.

3.2. Property Plant and Equipment are carried at cost less accumulated
depreciation. Additions, improvement and expenditures, which add materialy to
the productive capacity, which extend the useful lives of the assets, are
capitalized. Other routine expenditures for repairs and maintenance are recorded
as expenses as incurred.

11
3.3 Payable accounts are recognized and recorded in the books of accounts only
upon acceptance of the goods/inventory/other assets and rendition of services to
the agency.

3.4. Accounts were reclassified to conform the new Chart of Accounts prescribe
by the Commission On Audit under the New Government Accounting
System.

3.5. Allowance for doubtful accounts is maintaned at a level adequate to provide


for potential uncollectibility of receivables- a review of the receivables,
designed to identify accounts to be provided with allowance is made.

3.6. Income/receipts which the agency are not authorized to use and are required
to be remitted to the National Treasury are recorded in th LGU-Books-under
general fund account with account code of due to other NGA`s -416

3.7. Share from internal revenue collections are accounted for under accrual
method and real property tax are accounted under the modified accrual
method of accounting . All other taxes,fees and charges and other revenues
are accounted using each method of accounting

3.8. Modified Obligation System is used to record allotments received and


obligations incurred. Separate registries are maintained to control allotments
and obligations for each class of allotment.

3.9. Cost of ending inventory of office and materials and other inventory items
are computed using the Moving Average Method.

3.10.Supplies and materials purchased for inventory purposes are recorded using
the Perpetual Inventory System.

3.11.Completed projects under Trust and SEF are Transferred to general fund
account ,those project under this accounts which are located in the barangay
were dropped from the book of accounts of the general fund by transferring
to the registry.

3.12. For assets under construction, all related expenses incurred during the
construction of the project are capitalized and those incurred after the
construction are charged against the operating cost.

3.13. Properties of the Government used by the general public are accounted for
under the Public Infrastructure/reforestation Project and dropped from PPE
account and recorded in the Registry of Public Infrastructure/Reforestation
Project.

3.14. Financial expenses are separately classified from MOOE.

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3.15.Unused Five (5) % Calamity Fund of Annual Budget & Supplemental
Budget #1 &#2 of Calendar Year 2011 is recorded as Capital/ Equity
Reserve which is the amount set aside for (LDRRMF) Local Disaster Risk
Reduction and Management Fund, per Republic Act 10121. The detailed
amount of source is as follows:

Annual Budget CY 2011(QRF) - Php 807,010.99


Supplemental Budget # 1 CY 2011 88,971.00
Supplemental Budget # 2 CY 2011 149,133.00
total Php 1,045,114.99

4. CORRECTION OF FUNDAMENTAL ERRORS


4.1. Fundamental errors of prior years are corrected by using the prior years
adjustment accounts.

5. SUBSEQUENT EVENTS
5.1. Non –adjusting events after the balance sheet date which are so significant
that non-disclosure would affect the ability of the users of The FS to make
proper evaluation and decissions have to be disclosed by stating the nature
of the event and state.
5.2. Information received after the balance sheet about conditions that exist at
that date have to be stated to update the disclosures made.

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

Financial and Compliance Audit

The following are favourable practices and procedures of the Municipality, to wit:

1. Sound internal control system has been continuously practiced in the


municipality; and

2. Substantial compliance with its mandatory obligations.

Special Education Fund

1. Unaware of pertinent regulation, one unit vehicle with an acquisition cost


of P711,000.00 for the use of local school board was recorded in the
books of General Fund instead of the Special Education Fund, thus, the
balances of the Property, Plant and Equipment, and the Government
Equity accounts, including the pertinent depreciation accounts in the
financial statements under Special Education fund are misstated with the
marked unrecorded acquired asset totaling P711,000.00.

COMMISSION ON AUDIT CIRCULAR NO. 92-382 dated July 3, 1992, in part


we quote:

“Sec. 2. Special Funds. - There shall also be maintained in every provincial, city
or municipal treasury the following special funds:

a. Special Education Fund which shall consist of the respective shares of


provinces, cities, and municipalities in the proceeds of the additional tax on
real property to be appropriated for purposes prescribed in Section 272 of
the Local Government Code; and xxx

Sec. 3. Separate books and depository accounts. - Local accountants and


treasurers shall maintain separate books and/depository accounts, respectively, for
each fund in their custody or administration. (Sec. 310, Ibid)”

Scrutiny of budget documents for Calendar Year 2013, specifically the


Municipality’s Statement of Appropriations, Allotments, Obligations and Balances
(SAAOB) disclosed an appropriation for vehicle maintenance under Special Education
Fund despite the absence of Property, Plant and Equipment account appearing in the
pertinent financial statements.

Accounting records showed that the Municipality of Kadingilan purchased one (1)
unit vehicle in Calendar Year 2008 with an acquisition cost of P711,000.00 charged

17
against Special Education Fund for the use of local school board. The asset-vehicle was
initially recorded under the books of Special Education Fund but subsequently, in the
same year, it was transferred as part of the Property, Plant and Equipment account under
General Fund but its maintenance cost remained appropriated under Special Education
Fund.

Thus, the balances of the Property, Plant and Equipment, and the Government
Equity accounts, including the pertinent depreciation accounts in the financial statements
under Special Education fund are misstated with the marked unrecorded acquired asset
totaling P711,000.00. The condition was not also in consonance with the mentioned
COA regulation directing fund accounting/recording system for local government units.

The Municipal Accountant is amenable to the given audit recommendation.

Recommendation:

It is recommended that Management requires the Municipal Accounting Office to


facilitate proper accounting of the acquired vehicle in the books of accounts under
Special Education Fund. Otherwise, the inaction to properly classify the same will/shall
cast doubt as to its status of ownership under fund accounting/recording system
implemented by local government units in pursuance to COA Circular 92-382 dated July
3, 1992. The condition also affects the fair presentation of the account balances of the
Property, Plant and Equipment and Government Equity, including the depreciation
accounts, of the financial statements under Special Education Fund with the marked
unrecorded acquired asset totaling P711,000.00.

Other Accounts

2. Due to non-demand for return made by the LGU, one (1) unit pick-up
vehicle bought on January, 2012 with an acquisition cost of P1,582,226.00
was not returned by former Local Chief Executive, in violation to internal
control system over property and supply management, which may place
the government in an disadvantageous situation in times of calamity and
putting the situation at risk of loss of property.

One of the specific standards in the installation and evaluation of internal control
system over property and supply management is Asset Accountability.

Asset Accountability - accountability for the custody and use of an asset is to be


assigned and maintained and periodic comparison shall be made of the existing asset with
the recorded accountability and appropriate action taken on any differences. Records,
like Acknowledgement Receipt for Equipment (ARE) should be checked periodically
through physical count; the total value should be balance with the controlling account.

18
One (1) unit pick-up vehicle was bought by the municipality last January, 2012
with an acquisition cost of P1,582,226.00 charged to calamity fund for the year. The said
vehicle was assigned to the former Local Chief Executive per undated Memorandum
Receipt. The former Local Chief Executive terminated his service on even date, in view
of his political defeat on May 13, 2013 election.

Per interview with the Municipal Treasurer who is also designated as the
Property Officer of the municipality, to date he had not taken appropriate action by way
of sending a communication demanding for the return of the said vehicle.

The condition, may place the government in a disadvantageous situation in times


of calamity and putting the situation at risk of loss of property, if no appropriate action be
taken demanding for its immediate return. In addition, a standard of Asset
Accountability in the installation and evaluation of internal control system over property
and supply management was not fully attained.

In reply to our issued Audit Observation Memorandum, the Municipal Treasurer


commented and we quote:

“On Audit Observation No. 2013-003, the Office of the Municipal Treasurer was
not able to act immediately to demand the outgoing Mayor Joelito J. Talaid the return of
one (1) unit pick up Navarra considering that a group called transition team has been
created whose function was to facilitate the turnover of property and accountability of the
outgoing mayor to the incoming which the office is waiting for the team to be able to
come up its output and furnish us a copy, but up to now no report has been submitted.
However, notwithstanding such report, considering that there was already a notable time
of delay of action this office commits to comply such audit observation and hereby
promise to send a letter of demand to Ex-Mayor Joelito Talaid the soonest possible time
so that such vehicle will be returned to the LGU immediately.”

Recommendation:

It is recommended that Management requires the Municipal Treasurer to send a


demand letter to the former Local Chief Executive for the immediate return of the rescue
vehicle. In case of the latter inaction to return the same, avail all appropriate legal
remedies. In so doing, additional facility may be used in times of calamity and/or
emergency and putting the situation at risk of loss of property be avoided.

3. Balances of Accounts Receivable cannot be accurately determined


because the Municipal Accountant’s Office was not furnished with
pertinent Memorandum of Agreement on oil palm livelihood program
implemented by previous administration, which spells out the
liability/obligation of the beneficiaries, thereby giving confusion and
inexact data to the users of information and understating this account by
P6,444,850.00.

19
Section 111 of PD 1445 states, among others, that “the accounts of the agency shall
be kept in such detail as is necessary to meet the needs of the agency and at the same time
be adequate to furnish the information needed by the fiscal or control agencies of the
government…”

The previous administration launched the Oil Palm Production Project of the
Municipality of Kadingilan as Livelihood Program thru the Municipal Agriculture Office.
It is a 3 year project that started in CY 2011 to CY 2013 by a Plant Now Pay Later
Scheme. A Memorandum of Agreement (MOA) was executed between the Local
Government Unit of Kadingilan represented by the former Local Chief Executive and the
concerned Beneficiaries. Among the salient provisions stipulated in the said MOA states
that: 50% of the total cost of seedlings shall be paid upon receipt of the seedlings and the
remaining 50% is payable three (3) years after crop is considered productive.

Verification of Accounts Receivable account disclosed that it excludes the equity


shared by concerned beneficiaries as provided in the MOA.

The Municipal Accountant was not furnished with pertinent documents like MOA
and Requisition Issue Slips relating to this Project as her basis to record the beneficiaries’
equity as receivable in the books of the LGU.

As a result, a mark amount of P6,444,850.00 representing equity on delivered oil


palm seedlings to beneficiaries affected the fair presentation of Accounts Receivable
Account in the books of the Municipality. With the condition, balances of Accounts
Receivable cannot be accurately determined, thereby giving confusion and inexact data
to the users of information contrary to what is desired as spelled in the mentioned
regulation. In addition, collections of beneficiaries’ equity cannot be done without first
recognizing in LGU’s books the amount due them. (Annex G)

The Municipal Accountant is amenable to the given audit recommendation.

Recommendation:

It is recommended that Management requires the Municipal Agriculture Office to


furnish the Municipal Accountant’s Office the pertinent Memorandum of Agreement for
scrutiny and if found in order, to set up and/or record Accounts Receivable accounts to
all those concerned beneficiaries as basis for subsequent collections of the amount due.
In so doing, substantial compliance to above mention regulation is attained.

20
4. Farm tractor was recorded as capital outlay at P1 Million only in the
General Fund books, instead of P2.198 Million, the acquisition cost, due
to non-transfer of funds from Trust to General Fund thereby affecting
the fair presentation of the account balances of the Property, Plant and
Equipment and Government Equity in the financial statements under
General Fund, contrary to Section 63 of Presidential Decree No. 1445.

Section 63 of the Presidential Decree No. 1445 clearly declares that except as may
otherwise be specifically provided by law or competent authority all moneys and property
officially received by a public officer in any capacity or upon any occasion must be
accounted for as government funds and government property. Government property shall
be taken up in the books of the agency concerned at acquisition cost or an appraised
value.

During the year, the Municipality purchased Farm Tractor with an acquisition cost of
P2.198 Million funded from the 50-50 Cost Sharing Program of the Department of
Agriculture, Regional Office No. 10. The payment was effected in full of P2.198 Million
under General Fund books and records the transaction as capital outlay of P1 Million
only and the remaining amount P1.198 Million was recorded as Accounts Receivable.

The Municipal Accountant’s Office capitalized only P1 Million, instead of P2.198


Million, the acquisition cost, because the receipt of DA’s counterpart or share of P1.2
Million deposited at Trust Fund books was not transferred to General Fund books, to
date.

The condition does not reflect the true and correct valuation of account balances of
the Property, Plant and Equipment and Government Equity in the financial statements
under General Fund, contrary to Section 63 of Presidential Decree No. 1445.

The Municipal Accountant is amenable to the given audit recommendation.


Adjustments of affected accounts will be done during the ensuing year.

Recommendation:

It is recommended that Management requires the Municipal Treasurer’s Office to


effect the transfer of funds received from the Department of Agriculture from Trust Fund
where it was initially deposited, to General Fund. In so doing, the Municipal
Accountant’s Office has the basis to fully capitalize the acquired asset as an increase to
Agricultural Equipment Outlay during the year.

21
PART III – STATUS OF IMPLEMENTATION OF PRIOR YEAR’S
RECOMMENDATIONS
PART III - STATUS OF IMPLEMENTATION OF PRIOR YEAR’S
RECOMMENDATIONS

All prior year’s audit recommendations were substantially implemented for the
period.
Audit Recommendation Reference Management Status of Reason of
Observation Action Implementation Partial/non
implementation
1. Payments Submit written AAR Implemented
for the conformance 2012
services of from the
private Solicitor General
lawyer or the
totalling Government
P137,698.00 Corporate
made during Counsel and
the year written
were held concurrence of
without the the Commission
supporting on Audit on the
papers hired services of
required private lawyer.
under
existing
regulations.

2. Book and We recommend AAR Implemented


bank that the LGU 2012
balances for diligently and
long term properly keep
loan with track its loan
Landbank accounts and to
of the properly
Philippines, maintain its
Don Carlos books of
Branch accounts records
disclosed that reflect the
discrepancy true and fair
of value of its
P266,631.86 obligations.
due to the
failure of
the

22
agency to
facilitate
detection of
unrecorded
loan releases of
principal,
interest
repayments
and charges,
thus affecting
the true and
fair value of its
obligations as
of year-end.

3.Advances to Require AAR Implemented


2012
officers and Officers and
employees Employees
accumulated concerned to
to staggering observe the
amount of prescribed
P.534 Million liquidation
due to failure period of cash
of the advances and
municipality to liquidate
to observe same at the
pertinent rules end of the
and year. Refrain
regulations in from granting
the granting, of additional
utilization and cash advances
liquidation of if their
cash advances previous cash
provided in advances are
COA Circular not yet
No. 97-002 liquidated.
dated Before the
February 1, due date to
1997, thereby liquidate cash
overstating
receivables in
the financial
statements.

23
advances,
direct the
Municipal
Accountant to
write the
Accountable
Officers.
Otherwise,
withhold
payment of
their salaries
until their
cash advances
are fully
liquidated.

AAR 2012 Implemented


4. The We
Municipality recommend
paid honoraria to submitting
the chair and immediately
members of the the complete
Bids and documentary
Awards requirements
Committee on the
(BAC) and payment of
Technical honoraria to
Working Group the chair and
(TWG) without members of
complete the BAC and
documentation as TWG and
required under desisting
COA Circular payment of
No. 2012-001 claims which
dated June 14, are not
2012 prescribing properly and
the Revised completely
Guidelines and documented.
Documentary In addition,
Requirements for strictly adhere
the Common to all laws
Government and
Transactions. regulations
applicable to
financial
transactions.

24
5. The We AAR 2012 Implemented
municipality recommend
failed to submit requiring
its accounts, complete
report of documentation
collections in the
and/or disbursement
disbursements of LGU funds
and other so as not to
required cause delay in
financial the processing
reports and and recording
statements the same in
within the the accounting
reglementary office.
period, due to Implement
lack of proper strict
documentation observance of
in the the
processing of reglementary
vouchers, period in the
which submission of
condition is not financial
only violating reports and
Sections 7, 8 accounts to
and 9 of COA the auditor to
Circular No. give him
94-001 dated ample time for
January 20, review.
1994, but
causing undue
delay in the
examination
and audit of
accounts and,
ultimately,
prevented the
auditor from
ascertaining the
fairness of the
presentation of
the financial
statements.

25
PART IV – ANNEXES
PART IV – ANNEXES

Annex Title

A Balance Sheet (General Fund)

B Balance Sheet (Special Education Fund)

C Balance Sheet (Trust Fund)

D Statement of Income and Expenses (General Fund)

E Statement of Income and Expenses(Special Education Fund)

F Statement of Cash Flows (General Fund)

G Statement of Cash Flows (Special Education Fund)

H Statement of Cash Flows (Trust Fund)

I Status of Appropriations, Allotments and Obligations

- Current (General Fund)


- Continuing (Special Education Fund)
- Current (Special Education Fund)
- Continuing (Special Education Fund)
J Oil Palm Livelihood Program
Annex A
MUNICIPALITY OF KADINGILAN
BALANCE SHEET
GENERAL FUND
As of December 31, 2013

GENERAL FUND

ASSETS
Curre nt Asse ts
Cash:
Cash in Vault 79.80
Cash in Bank - Local Currency, Current Account 9,340,669.86
Total Cash 9,340,749.66
Re ce ivable s:
Accounts Receivable 2,590,294.52
Due from Officers and Employees 843,792.00
Real Property Tax Receivable (624,032.61)
Due from NGAs
Due from LGUs 43,562.60
Due from other funds 93,268.37
Receivables - Disallowances/Charges 3,328,686.09
Advances to Officers and Employees (6.00)
Other Receivables 249,450.00
Total Receivables 6,525,014.97
TOTALCURRENT ASSETS 15,865,764.63

Prope rty, Plant and Equipme nt:


Land 7,314,456.26
Land Improvements (Net of Depreciation) 697,365.40
Electrification, Power and Energy Structures 5,208.33
Office Buildings (Net of Depreciation) 15,448,142.03
Other Structures 11,739,747.47
Office Equipment (Net of Depreciation) 1,094,896.06
Furniture and Fixtures (Net of Depreciation) 425,242.43
Library Books (Net of Depreciation) 1,562.25
Agricultural, Fishery and Forestry Equipment (Net of Dep'n) 1,194,078.80
Construction and Heavy Equipment (net of Dep'n) 13,416,844.80
Medical, Dental and Laboratory Equipment (Net of Dep'n) 21,160.00
Military and Police Equipment (Net of Dep'n) 2,299.00
Technical and Scientific Equipment (Net of Dep'n) 66,148.00
Other Machineries and Equipment (Net of Dep'n) 127,906.05
Other Transportation Equipment (Net of Dep'n) 2,904,931.29
Roads, Highways and Bridges 45,012.00

26
Parks, Plazas and Monuments 24,312.00
Other Public Infrastructures 57,677.60
Construction in Progress - Agency Assets 873,630.50
IT Equipment and Software
Artesian Wells, Reservoirs, Pumping Stations and Conduits
Construction in Progress - Other Public Infrastructures
Total Land, Property and Equipment 55,460,620.27
Othe r Asse ts:
Work/Other Animals 334,963.00
Other Assets 111,588.70
Total Other Assets 446,551.70
TOTAl ASSETS ››› 71,772,936.60
LIABILITIES:
Payable s:
Accounts Payable 4,120,659.98
Due to Officers and Employees 220,640.58
Due to BIR 337,366.77
Due to GSIS 345,748.69
Due to PAG-IBIG 65,033.31
Due to PHILHEALTH 108,046.13
Due Other NGAs 301,719.40
Due to LGUs 1,387,245.41
Due to Other Funds 416,555.00
Total Payables 7,303,015.27
Othe r Payable s:
Guaranty Deposits Payable 42,999.99
Trust Liability - DRRM
Other Payables 263,391.82
Total Other Payables 306,391.81
Long-Te rm Liabilitie s:
Loans Payable - Domestic 6,594,119.44
Total Long Term Liabilities 6,594,119.44
De fe rre d Re al Prope rty Tax Inc
Deferred Real Property Tax Income (624,032.61)
Total Deferred Real Property Tax Inc. (624,032.61)
De fe rre d Cre dits:
Other Deferred Credits 2,435,907.62
Total Deferred Credits 2,435,907.62
TOTAL LIABILITIES 16,015,401.53
EQUITY:
Government Equity 55,757,535.07
TOTAL LIABILITIES AND EQUITY ››› 71,772,936.60

27
Annex B
MUNICIPALITY OF KADINGILAN
BALANCE SHEET
SPECIAL EDUCATION FUND
As of December 31, 2013

GENERAL FUND SEF

ASSETS
Curre nt As s e ts
Cas h:
Cash in Vault
Cash in Bank - Local Currency, Current Account 1,051,015.13
Total Cash 1,051,015.13
Re ce ivable s :
Accounts Receivable 61,349.12
Due from Officers and Employees 12,800.00
Real Property Tax Receivable
Due from NGAs
Due from LGUs
Due from other funds
Receivables - Disallowances/Charges
Advances to Officers and Employees
Other Receivables
Total Receivables 74,149.12
TOTALCURRENT ASSETS 1,125,164.25

Prope rty, Plant and Equipme nt:


Land
Land Improvements (Net of Depreciation)
Electrification, Power and Energy Structures
Office Buildings (Net of Depreciation)
Other Structures
Office Equipment (Net of Depreciation) 55,510.56
Furniture and Fixtures (Net of Depreciation) 25,714.00
Library Books (Net of Depreciation)
Agricultural, Fishery and Forestry Equipment (Net of Dep'n)
Construction and Heavy Equipment (net of Dep'n)
Medical, Dental and Laboratory Equipment (Net of Dep'n)
Military and Police Equipment (Net of Dep'n)
Technical and Scientific Equipment (Net of Dep'n)
Other Machineries and Equipment (Net of Dep'n)
Other Transportation Equipment (Net of Dep'n)
Roads, Highways and Bridges

28
Parks, Plazas and Monuments
Other Public Infrastructures
Construction in Progress - Agency Assets
IT Equipment and Software
Artesian Wells, Reservoirs, Pump ing Stations and Conduits
Construction in Progress - Other Public Infrastructures
Total Land, Property and Equipment 81,224.56
Othe r Asse ts:
Work/Other Animals
Other Assets
Total Other Assets
TOTAl ASSETS ››› 1,206,388.81
LIABILITIES:
Payable s:
Accounts Payable 9,660.43
Due to Officers and Employees
Due to BIR
Due to GSIS
Due to PAG-IBIG
Due to PHILHEALTH
Due Other NGAs
Due to LGUs 123,095.11
Due to Other Funds
Total Payables 132,755.54
Othe r Payable s:
Guaranty Deposits Payable
Trust Liability - DRRM
Other Payables
Total Other Payables
Long-Te rm Liabilitie s:
Loans Payable - Domestic
Total Long Term Liabilities
De fe rre d Re al Prope rty Tax Inc
Deferred Real Property Tax Income
Total Deferred Real Property Tax Inc.
De fe rre d Cre dits:
Other Deferred Credits 126.77
Total Deferred Credits 126.77
TOTAL LIABILITIES 132,882.31
EQUITY:
Government Equity 1,073,506.50
TOTAL LIABILITIES AND EQUITY ››› 1,206,388.81

29
Annex C
MUNICIPALITY OF KADINGILAN
BALANCE SHEET
TRUST FUND
As of December 31, 2013

GENERAL FU
SEF
ND TRUST FUND

ASSETS
Curre nt Asse ts
Cash:
Cash in Vault
Cash in Bank - Local Currency, Current Account 12,065,309.04
Total Cash 12,065,309.04
Re ce ivable s:
Accounts Receivable 2,378,437.42
Due from Officers and Employees 41,000.00
Real Property Tax Receivable
Due from NGAs 47,100.00
Due from LGUs 409,703.95
Due from other funds 12,778.50
Receivables - Disallowances/Charges 297,313.49
Advances to Officers and Employees 177.37
Other Receivables 179,505.00
Total Receivables 3,366,015.73
TOTALCURRENT ASSETS 15,431,324.77

Prope rty, Plant and Equipme nt:


Land
Land Improvements (Net of Depreciation)
Electrification, Power and Energy Structures
Office Buildings (Net of Depreciation)
Other Structures 119,290.82
Office Equipment (Net of Depreciation)
Furniture and Fixtures (Net of Depreciation)
Library Books (Net of Depreciation)
Agricultural, Fishery and Forestry Equipment (Net of Dep'n)
Construction and Heavy Equipment (net of Dep'n)
Medical, Dental and Laboratory Equipment (Net of Dep'n)
Military and Police Equipment (Net of Dep'n)
Technical and Scientific Equipment (Net of Dep'n)
Other Machineries and Equipment (Net of Dep'n)
Other Transportation Equipment (Net of Dep'n)
Roads, Highways and Bridges 3,204,689.62

30
Parks, Plazas and Monuments
Other Public Infrastructures
Construction in Progress - Agency Assets 453,582.80
IT Equipment and Software 63,895.00
Artesian Wells, Reservoirs, Pumping Stations and Conduits 5,261,146.02
Construction in Progress - Other Public Infrastructures 9,768,048.91
Total Land, Property and Equipment 18,870,653.17
Othe r Asse ts:
Work/Other Animals
Other Assets
Total Other Assets
TOTAl ASSETS ››› 34,301,977.94
LIABILITIES:
Payable s:
Accounts Payable 2,363,304.26
Due to Officers and Employees 1,289,993.32
Due to BIR
Due to GSIS
Due to PAG-IBIG
Due to PHILHEALTH
Due Other NGAs 12,031,477.53
Due to LGUs 2,655,280.06
Due to Other Funds 3,120,267.91
Total Payables 21,460,323.08
Othe r Payable s:
Guaranty Deposits Payable 1,357,903.84
Trust Liability - DRRM 2,376,647.32
Other Payables 86,206.88
Total Other Payables 3,820,758.04
Long-Te rm Liabilitie s:
Loans Payable - Domestic
Total Long Term Liabilities
De fe rre d Re al Prope rty Tax Inc
Deferred Real Property Tax Income
Total Deferred Real Property Tax Inc.
De fe rre d Cre dits:
Other Deferred Credits
Total Deferred Credits
TOTAL LIABILITIES 25,281,081.12
EQUITY:
Government Equity 9,020,896.82
TOTAL LIABILITIES AND EQUITY ››› 34,301,977.94

31
Annex D

32
33
34
Annex E

35
Annex F

36
Annex G

37
Annex H

38
Annex I
Municipality of Kadingilan, Bukidnon
Statement of Appropriations, Allotments, Obligations and Balances
Fund GENERAL / ANNUAL BUDGET
DECEMBER 2013

BALANCES OF
CODE FUNCTION/PROGRAM/PROJECT APPROPRIATIONS ALLOTMENTS OBLIGATIONS
APPROPRIATIONS ALLOTMENTS
I CURRENT YEAR APPROPRIATIONS

1000 GENERAL PUBLIC SERVICES


PS 18,906,510.00 18,906,510.00 18,906,510.00 - -
MOOE 19,553,073.00 19,553,073.00 19,553,073.00 - -
CO 500,000.00 500,000.00 126,780.85 373,219.15 373,219.15
FE -
38,959,583.00 38,959,583.00 38,586,363.85 373,219.15 373,219.15
3000 EDUC., CULT., SPORTS AND MANPOWER DEV'T.
PS
MOOE
CO
FE
- - - - -
4000 HEALTH SERVICES
PS
MOOE
CO
FE
- -
5000 LABOR AND EMPLOYMENT
PS
MOOE
CO
FE
- - - - -
6000 HOUSING AND COMMUNITY DEVELOPMENT
PS
MOOE
CO
FE
7000 SOCIAL WELFARE SERVICES
PS 5,847,671.00 5,847,671.00 5,847,671.00 - -
MOOE 1,059,000.00 1,059,000.00 1,059,000.00 - -
CO - -
FE - -
6,906,671.00 6,906,671.00 6,906,671.00 - -
8000 ECONOMIC SERVICES
PS 2,487,208.00 2,487,208.00 2,487,208.00 - -
MOOE 374,000.00 374,000.00 374,000.00 - -
CO - -
FE 15,606,330.00 15,606,330.00 11,611,805.28 3,994,524.72 3,994,524.72
18,467,538.00 18,467,538.00 14,473,013.28 3,994,524.72 3,994,524.72
9000 OTHER PURPOSES
PS
MOOE
CO
FE/MANDATORY OBLIGATIONS - - -
- - - - -
TOTAL CURRENT YEAR APPROPRIATIONS
PS 27,241,389.00 27,241,389.00 27,241,389.00 - -
MOOE 20,986,073.00 20,986,073.00 20,986,073.00 - -
CO 500,000.00 500,000.00 126,780.85 373,219.15 373,219.15
FE/MANDATORY OBLIGATIONS 15,606,330.00 15,606,330.00 11,611,805.28 3,994,524.72 3,994,524.72
64,333,792.00 64,333,792.00 59,966,048.13 4,367,743.87 4,367,743.87

39
II CONTINUING APPROPRIATIONS

1000 GENERAL PUBLIC SERVICES -


MOOE
CO 3,088,014.55 3,088,014.55 1,922,754.75 1,165,259.80 1,165,259.80
3,088,014.55 3,088,014.55 1,922,754.75 1,165,259.80 1,165,259.80
3000 EDUC., CULT., SPORTS AND MANPOWER DEV'T.
MOOE
CO
- - - - -
4000 HEALTH SERVICES
MOOE
CO
- - - - -
MOOE
CO
- - - - -
6000 HOUSING AND COMMUNITY DEVELOPMENT
MOOE
CO

7000 SOCIAL WELFARE SERVICES


MOOE
CO
- - - - -
8000 ECONOMIC SERVICES
MOOE
CO
- - - - -
9000 OTHER PURPOSES
MOOE - - -
CO
- - - -
TOTAL CONTINUING APPROPRIATIONS
MOOE - - -
CO 3,088,014.55 3,088,014.55 1,922,754.75 1,165,259.80 1,165,259.80
3,088,014.55 3,088,014.55 1,922,754.75 1,165,259.80 1,165,259.80

40
Province /City/Municipality of Kadingilan, Bukidnon
Statement of Appropriations, Allotments, Obligations and Balances
Fund SPECIAL EDUCATION FUND/ANNUAL BUDGET
DECEMBER, 2013

BALANCES OF
CODE FUNCTION/PROGRAM/PROJECT APPROPRIATIONS ALLOTMENTS OBLIGATIONS
APPROPRIATIONS ALLOTMENTS
I CURRENT YEAR APPROPRIATIONS

1000 GENERAL PUBLIC SERVICES


PS - -
MOOE 550,000.00 550,000.00 547,459.79 2,540.21 2,540.21
CO - -
FE -
550,000.00 550,000.00 547,459.79 2,540.21 2,540.21
3000 EDUC., CULT., SPORTS AND MANPOWER DEV'T.
PS
MOOE
CO
FE
- - - - -
4000 HEALTH SERVICES
PS
MOOE
CO
FE
- -
5000 LABOR AND EMPLOYMENT
PS
MOOE
CO
FE
- - - - -
6000 HOUSING AND COMMUNITY DEVELOPMENT
PS
MOOE
CO
FE
- -
4000 HEALTH SERVICES
MOOE
CO
- - - - -
5000 LABOR AND EMPLOYMENT
MOOE
CO
- - - - -
6000 HOUSING AND COMMUNITY DEVELOPMENT
MOOE
CO

7000 SOCIAL WELFARE SERVICES


MOOE
CO
- - - - -
8000 ECONOMIC SERVICES
MOOE
CO
- - - - -
9000 OTHER PURPOSES
MOOE - - -
CO
- - - -
TOTAL CONTINUING APPROPRIATIONS
MOOE - - -
CO - - -
- - - - -

41
Annex J
Oil Palm Livelihood Program
(a) (b) source c=a*b (d) (e) (f=d-e) (g) (h=f+g)
# of price/ (seedling/ Total Amount Beneficiaries' Payment Balance Beneficiaries' Total Balance
# of ha.
Location area to seedling seedling germi. equity 50% made Receivable equity 50% Receivable
No. Last Name First Name M.I. Date per MOA To O.R. # O.R. Date
be Planted payable upon payable after 3
planted availed P 230.@ Seed)
receipt of yrs.
seedlings
1 Estrada Eva N. 1/15/2011 Pobn./Husayan 3.25 442 230 seedling 101,660.00 50,830.00 53,130.00 *** (2,300.00) 50,830.00 48,530.00
2 Maraguinot Domindo K. 1/18/2011 Cabadiangan 5 680 230 seedling 156,400.00 78,200.00 15,500.00 62,700.00 78,200.00 140,900.00
3 Macadangdang Ricky 2/5/2011 Baroy 2 272 230 seedling 62,560.00 31,280.00 31,280.00 31,280.00 62,560.00
4 Alambatin Russel 10/8/2011 Cabadiangan 3 408 230 seedling 93,840.00 46,920.00 46,920.00 46,920.00 93,840.00
5 Talaid Joelito J. 1/8/2011 Kibagsil 10 1,360 230 seedling 312,800.00 156,400.00 156,400.00 156,400.00 312,800.00
6 Neri Nelita M. 1/8/2011 Cabadiangan 2 272 230 seedling 62,560.00 31,280.00 31,280.00 31,280.00 62,560.00
7 Manoba Gilbert 11/12/2011 Kibagsil 9.5 1294 230 seedling 297,620.00 148,810.00 148,810.00 148,810.00 297,620.00
8 Patenio Alma 12/12/2011 Baroy 2 272 230 seedling 62,560.00 31,280.00 31,280.00 *** - 31,280.00 31,280.00
9 Sanggalang Benjie/Rachelle 12/12/2011 San Andres 2 272 230 seedling 62,560.00 31,280.00 31,280.00 7148904 2/6/2012 - 31,280.00 31,280.00
10 Sanggalang Jovelyn 12/24/2011 San Andres 2 272 230 seedling 62,560.00 31,280.00 31,280.00 - 31,280.00 31,280.00
11 Sanggalang Remedios L. 12/27/2011 San Andres 2 272 230 seedling 62,560.00 31,280.00 31,280.00 7065754 12/27/2011 - 31,280.00 31,280.00
12 Torres Merlyn 12/29/2011 Cabadiangan 5 722 230 seedling 166,060.00 83,030.00 83,030.00 83,030.00 166,060.00
13 Alferez Francisco 1/24/2012 Salvacion 1 136 230 seedling 31,280.00 15,640.00 15,640.00 7065777 1/24/2012 - 15,640.00 15,640.00
14 Frasco Rhea 1/27/2012 Cabadiangan 2 272 230 seedling 62,560.00 31,280.00 31,280.00 - 31,280.00 31,280.00
15 Antinero Philip 2/6/2012 Pobn./Salvacion 2 272 230 seedling 62,560.00 31,280.00 31,280.00 7996626 11/1/2712 - 31,280.00 31,280.00
16 Sanggalang Rachel 2/7/2012 San Andres 2 272 230 seedling 62,560.00 31,280.00 31,280.00 - 31,280.00 31,280.00
17 Pugoy Renan M. 2/7/2012 Salvacion 2 272 230 seedling 62,560.00 31,280.00 31,280.00 7148920 2/21/2012 - 31,280.00 31,280.00
18 Alboroto Antonieta 2/9/2012 Sibonga 1.43 194 230 seedling 44,620.00 22,310.00 15,640.00 6733945 12/12/2011 6,670.00 22,310.00 28,980.00
19 Otadoy Ramon L. 2/8/2012 Pinamangguhan 4 544 230 seedling 125,120.00 62,560.00 62,560.00 62,560.00 125,120.00
20 Otadoy Ramon L. 5/2/2012 Pinamangguhan 1.4 200 230 seedling 46,000.00 23,000.00 23,000.00 23,000.00 46,000.00
21 Albarico Joselito 2/9/2012 Sibonga 1 136 230 seedling 31,280.00 15,640.00 15,500.00 140.00 15,640.00 15,780.00
22 Perrales Emmanuel 2-6-12&3-6-12 Balaoro 4 544 230 seedling 125,120.00 62,560.00 62,560.00 62,560.00 125,120.00
23 Perrales Emmanuel 11/16/2012 Balaoro 2 272 230 seedling 62,560.00 31,280.00 31,280.00 31,280.00 62,560.00
24 Jacosalem Edgar 2/15/2012 Kibagsil 5.9 804 230 seedling 184,920.00 92,460.00 92,460.00 92,460.00 184,920.00
25 Lagulao Composa A. 2-7-12&3-8-12 Salvacion 3.79 516 230 seedling 118,680.00 59,340.00 15,000.00 7148901 2/1/2012 44,340.00 59,340.00 103,680.00
26 Rodeo Romulo 3/1/2012 Poblacion 3 408 230 seedling 93,840.00 46,920.00 46,920.00 46,920.00 93,840.00
27 Sordilla Dindo L. 3/1/2012 Kibalagon 3 408 230 seedling 93,840.00 46,920.00 20,000.00 7148933 3/6/2012 26,920.00 46,920.00 73,840.00
28 Japos Alma S. 3/2/2012 Salvacion 1 136 230 seedling 31,280.00 15,640.00 15,640.00 15,640.00 31,280.00
29 Saldua Alejandra 3/2/2012 Salvacion 2 272 230 seedling 62,560.00 31,280.00 31,280.00 31,280.00 62,560.00
30 Repolidon Armando 3/6/2012 Sibonga 2 272 230 seedling 62,560.00 31,280.00 16,000.00 6733904 10/17/2011 15,280.00 31,280.00 46,560.00
31 Velez Isabelo Jr. R. 3/8/2012 Pobn/Kiara 4 544 230 seedling 125,120.00 62,560.00 31,280.00 7065970 2/16/2012 31,280.00 62,560.00 93,840.00
32 Ramirez Von Ryan Z. 3/6/2012 San Andres 2 272 230 seedling 62,560.00 31,280.00 31,280.00 NO O.R. # 11/14/2012 - 31,280.00 31,280.00
33 Bullecer Marjorie E. 3/8/2012 Pob/Cabadiangan 1.7 240 230 seedling 55,200.00 27,600.00 27,600.00 27,600.00 55,200.00
34 Bullecer Marjorie E. 5/20/2013 Pob/Cabadiangan 1.2 168 230 seedling 38,640.00 19,320.00 19,320.00 19,320.00 38,640.00

SUB TOTAL 100.17 13692 3,149,160.00 1,574,580.00 479,210.00 1,095,370.00 1,574,580.00 2,669,950.00

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(a) (b) source c=a*b (d) (e) (f=d-e) (g) (h=f+g)
# of ha. # of price/ (seedling/ Total Amount Beneficiaries' Payment Balance Beneficiaries' Total Balance
Location area to equity 50% equity 50%
No. Last Name First Name M.I. Date per MOA To seedling seedling germi. made O.R. # O.R. Date Receivable Receivable
be Planted payable upon payable after 3
planted availed P 230.@ Seed) receipt of yrs.
seedlings
69 Talaid Ananais 12/2/2012 Cabadiangan 6.4 868 230 seedling 199,640.00 99,820.00 99,820.00 99,820.00 199,640.00
70 Frasco Rhea 12/5/2012 Cabadiangan 4.4 594 230 seedling 136,620.00 68,310.00 68,310.00 68,310.00 136,620.00
71 Royles Elmer 12/6/2012 Cabadiangan 3 408 230 seedling 93,840.00 46,920.00 46,920.00 46,920.00 93,840.00
72 Pulgadas Roger 12/20/2012 Sibonga 1 136 230 seedling 31,280.00 15,640.00 15,640.00 15,640.00 31,280.00
73 Lariosa Ernesto 1/3/2013 Balaoro 5.1 699 230 seedling 160,770.00 80,385.00 80,385.00 80,385.00 160,770.00
74 Sordilla Lester Dave 1/4/2013 Kibalagon 3 408 230 seedling 93,840.00 46,920.00 46,920.00 46,920.00 93,840.00
75 Bagas Foro 1/21/2013 Mabuhay 3 408 230 seedling 93,840.00 46,920.00 46,920.00 46,920.00 93,840.00
76 Mahusay Julius 1/29/2012 San Andres 2 272 230 seedling 62,560.00 31,280.00 31,280.00 31,280.00 62,560.00
77 Lagaras Eusebio 1/30/2013 Cabadiangan 3 408 230 seedling 93,840.00 46,920.00 46,920.00 46,920.00 93,840.00
78 Talaid Susan/Tiburcio 2/5/2013 San Andres 3 413 230 seedling 94,990.00 47,495.00 47,495.00 47,495.00 94,990.00
79 Pat Marmito 2/13/2013 Matampay 1.5 204 230 seedling 46,920.00 23,460.00 23,460.00 23,460.00 46,920.00
80 Abang Jerry 2/13/2013 Matampay 1.5 204 230 seedling 46,920.00 23,460.00 23,460.00 23,460.00 46,920.00
81 Puaben Bernardo 2/13/2013 Matampay 1 136 230 seedling 31,280.00 15,640.00 15,640.00 15,640.00 31,280.00
82 Talaid Elena 5/20/2013 Cabadiangan 2.4 325 230 seedling 74,750.00 37,375.00 37,375.00 37,375.00 74,750.00
83 Calibquib Eugenia 5/20/2013 Sibonga 0.8 108 230 seedling 24,840.00 12,420.00 2,080.00 *** 10,340.00 12,420.00 22,760.00
84 Lopez Henry 12/30/2012 Cabadiangan 1.7 236 230 seedling 54,280.00 27,140.00 27,140.00 27,140.00 54,280.00
85 Cesar Velmi 1/26/2013 San Andres 8 1088 230 seedling 250,240.00 125,120.00 125,120.00 125,120.00 250,240.00

SUB TOTAL 50.8 6,915 1,590,450.00 795,225.00 2,080.00 793,145.00 795,225.00 1,588,370.00

GRAND TOTAL 239.20 32,630 7,504,900.00 3,752,450.00 1,060,050.00 2,692,400.00 3,752,450.00 6,444,850.00

NOTE:
Payment made w/o O.R.
reflected marked: ***
were listed on MACO general ledger

43