Status of Implementation of Prior Year’s Recommendations CY 2016

Reason for
Status of
Management Partial/Non-
Audit Observation Recommendation Ref. Implementat
Action Implementatio
ion
n

1. The Municipal We recommend that the AAR of The BLGF Partially The Municipal
Treasurer management consider the CY 2016 issued Regional implemented. Treasurer failed to
failed to report all immediate relief of the Municipal p.23 Memorandum Order deposit those
collections since 2012 in Treasurer pending the final result No. 2017-003 dated unremitted
the total amount of of the cash examination January 13, 2017 collections as
1,286,176.09 resulting to Likewise, withhold payment of her recommending the determined per
understatement of Cash, salaries and other benefits until relief of Municipal cash examination
Due to LGU’s and such time that all collections is Treasurer. until he retired
Government Equity accounted and deposited to the from the service in
Accounts and Exposes depository account of the the LGU.
government funds for Municipality
misuse or losses in
violation of Section 69 (1)
of PD 1445.

2. The administration on
collection is weak contrary
to various regulations
which resulted in delayed
recording of collections
and the presence of
unaccounted accountable
forms totaling 12,353
pieces and undetermined
amount of unrecorded
collections.
We suggest that the equivalent The custody of Partially Partially
or similar measure as discussed accountable forms is implemented accounted the
above be considered in order to now lodged to the income sources.
improve the process of monitoring Assistant Municipal
and release of accountable forms Treasurer per advice
to avoid the occurrence of the by the Bureau of
same incident in the future. The Local Government
Municipal Accountant is most Finance. Moreover
likely the person to maintain a the Municipal
separate monitoring and gives Treasurer already
authority for its succeeding submitted some of
release. Likewise, require the the unaccounted
regular preparation and submission accountable form to
 of the RAAF. the Office of the
Municipal Auditor.

3. The Municipal Likewise, require the The Municipal Partially The Municipal
Treasurer failed to deposit Municipal Treasurer to deposit all Mayor relieved the implemented Treasurer has been
intact her collections in her collections until February 28, Municipal Treasurer relieved effective
violation of Section 32, 2015. Meanwhile, relieve her of from handling cash at the close of the
volume I of the New further handling cash collections collections and office hours of
Government Accounting until such time that all previous designated a January 16, 2017,
System (NGAS) depriving collections under her custody is Liquidating Officer. per BLGF-IX
the Municipal deposited to the depository Regional
Government of utilizing account of the Municipality. Memorandum
the amount of P Order No. 2017
2,011,160.9 for all funds as 003 dated January
of December 31, 2014 and 13, 2017.
exposing the said amount
for possible
misappropriation or losses.
CY
4.TheMunicipal Treasurer Require the Municipal 2014- Collection of Partially A memorandum
failed to Collect loans Treasurer to issue demand letters AAR p. partial payment of implemented order should be
receivables of the and exert extra effort in collecting 26 loan balance were issued to existing
Municipality as required all the receivables of the made during the LGU personnel for
under Section 170 RA Municipality. Amount receivable release of mid- year payroll deduction
7160, which resulted to from deceased individuals, if any bonus of LGU
accumulation of should be reviewed as to its personnel, and for
receivables. collectability, if determined to be those who are out of
no longer collectible, request from service due to
the Commission of Audit for separation and
dropping of the amount from retirement a demand
books of account of the letter was sent to
Municipality. them.
5. The Municipal
Treasurer and Revenue
Collectors failed to report
and remit collections
within the period and
manner prescribed in
Section 15 and 29 of the
New Government
Accounting System for
LGU’s, thus the
probability of fund misuse
could not be discounted.
6. Failure of the Municipal
Treasurer to observe
effective controls in the
handling of cash and in the
reconciliation of her cash
accountability with the
accounting records has
Require the Treasurer and The report of Partially Reiterated
Revenue Collectors to remit Collections was Implemented under Audit
collections daily and intact and to made not in observation
observe proper rules and No. 2015-002
accordance of what
regulations in the recording
remittance and deposits to ensure is provided in Sec.
that government funds are 15 and 29 of NGAS
accounted for. due to lack of
internal control of
Require the issuance of Official the Treasurer. The
Receipts in correct numerical collectors remitted
sequence and closely monitor the
their collections but
correct balances of the Report of
Accountable Forms. the remitted amount
was not properly
Require the Treasurer to properly declared in the
and correctly prepare reports of report of liquidation
collections and deposits and report of the Municipal
of accountability for accountable Treasurer, thus
forms.
accumulating the
amount of cash in
vault to a bigger
amount.
Require the Municipal The management Partially Some collections
Treasurer and all Collectors to adhered the COA Implemented were not remitted
strictly observe the rules and observations and and deposited on
regulations in the proper custody issued memorandum daily basis.
of collections in the matter of to the Municipal
recording remittance and deposits Treasurer and
to ensure that government funds collectors to settle
allowed the accumulation are properly accounted for and the un liquidated
of collections in the hands risk of misappropriations is collections.
of the collectors and avoided.
herself as liquidating
Officer, over a long period The Municipal Treasurer should Despite of the Partially
of time, their inability to closely monitor the remittances of office memorandum implemented
immediately produce the collectors and verify their Report order, reconciliation
correct amount of of Collections and Deposits, efforts were not Lack of
collections upon demand check the statement of taken seriously by manpower to
by Auditors during cash Accountable Forms and make the concerned handle the
examinations. physical count of the Accountable accountable persons. inventory of
Forms in the custody of the Accountable
collectors to ensure the collector’s forms.
accountability was fully accounted
for.
For current Partially
Lastly the Municipal Treasurer transactions the implemented
should exert effort to cause the Acting Municipal
reconciliation of the treasury and Treasurer and Due to lack of
accounting records of the cash in Municipal available data and
vault account to eliminate the Accountant documents for
doubt of misappropriation of continuously reference’
funds. reconcile its record
on a monthly basis.
However, huge
difference in the
amount as far as the
records is concerned
between the two
offices were
occurred years back
1997 to mid 2007
where sources of
documents are hard
to retrieved. As of
 to date, no positive
result for
reconciliation such
differences .

Prepared by:

MARY JANE K. CALUMBA

RCC II
Noted by:

CYNTHIA D.ABIL
Acting Mun. Treasurer
Posti  
ng Parti Lat
of
the
repor
ts
was
made
in
the
LGU
Bulle
tin
Boar
d
only
and
later
than
30
days
of
the
requi
red
at the
end
of
 each
fiscal
year.

9. Due to BIR in the total  Require   

amount of P199,649.81 the C Parti La
remained unremitted at Municip
year-end, in violation of al
Revenue Regulation No. 2- Treasure
98 dated April 17, 1998, r to
thus depriving the national immedia
government of the use of tely
the fund and possible remit to
imposition of penalty of the BIR
the municipality late the taxes
remittance. withheld
to avoid
misuse
and
impositi
on of
penalty
for late
remittan
ces shall
be
charged
to her
personal
account.