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Republic of the Philippines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City

ANNUAL AUDIT REPORT


ON THE

CITY OF ILIGAN

For the Year Ended December 31, 2012

Republic of the Philippines COMMISSION ON AUDIT OFFICE OF THE REGIONAL DIRECTOR Regional Office No. X Cagayan de Oro City

May 15, 2013 Honorable Lawrence Ll. Cruz City Mayor Iligan City Sir: We are pleased to transmit the Annual Audit Report (AAR) on the audit of the accounts and operations of the City of Iligan for the year ended December 31, 2012, in compliance with Article IX-D of the Philippine Constitution and pertinent provisions of Section 43 of Presidential Decree No. 1445. The AAR contains results of the audit, which was primarily conducted to ascertain the propriety of financial transactions and compliance of the city with laws and regulations. The financial and compliance audit, which was conducted on a test basis, was primarily focused on the validity and propriety of transactions as well as the fairness in the presentation of the financial statements. The details of these results, which included positive and negative audit observations, as well as, the corresponding recommendations, are discussed in the report. We request that the recommendations be implemented and we would appreciate being informed of the action taken hereon within one month from receipt hereof. We acknowledge the cooperation extended to our Auditors by the officials and employees of the City Government of Iligan.

Very truly yours, By Authority of the Chairman:

Director IV Regional Director

Copy Furnished:

The Honorable Members of the Sangguniang Panlungsod Thru: The Secretary, Sangguniang Panlungsod Iligan City The Regional Director Department of Interior and Local Government Regional Office No. X Cagayan de Oro City The Regional Director Bureau of Local Government Finance Regional Office No. X Cagayan de Oro City The Regional Director Department of Budget and Management Regional Office No. X Cagayan de Oro City The Regional Director National Economic Development Authority Regional Office No. X Cagayan de Oro City

Republic of the Philippines COMMISSION ON AUDIT Regional Office X Audit Group G Iligan City Office of the Supervising Auditor April 30, 2013 LYNN S.F. SICANGCO Director IV Regional Director COA Regional Office No. X Cagayan de Oro City Madam: In compliance with Section 2, Article IX-D of the Philippine Constitution and Section 43 of the Government Auditing Code of the Philippines (PD) 1445, we have audited the Annual Audit Report (AAR) on the City of Iligan for the year ended December 31, 2012. The audit was conducted to ascertain the propriety of financial transactions and the extent of compliance by the city 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 - Detailed Findings and Recommendations, Part III - the Status of Prior Years Audit Recommendations, and Part IV Annexes. The audit findings and recommendations were discussed with concerned management officials and staffs in an exit conference held on April 2, 2013. We rendered a qualified opinion on the fairness of the presentation of the financial statements as of December 31, 2012, for reasons discussed in the report. Our audit was conducted in accordance with the generally accepted state auditing standards and we believe that it provides reasonable basis for the results of the audit.

Very truly yours,

EXECUTIVE SUMMARY

Highlights of Financial Operations A. Financial Condition As of December 31, 2012, the consolidated financial condition of the City, excluding Barangays, showed a total asset of P4.798 billion, total liabilities of 2.046 billion and equity of P2.752 billion. Particulars Assets Liabilities Government Equity B. Results of Operations Total income derived from all sources amounted to P1.124 billion while expenses incurred amounted to P958.659 million resulting to a net income of P138.755 million: Particulars Total Income Total Expenses Net Operating Income Less: Subsidies Net Income C. Cash Flows The Consolidated Statement of Cash Flow indicated total cash available of P3,004,558 B and total cash outflows of P1,579,41B leaving a cash balance of P1,425,143 B: Particulars Beginning Balance Cash Inflows Total Available Cash Outflows Cash balance, end of year CY 2012 1,288.319 1,716.239 3,004.558 1,579.415 1,425.143 CY 2011 578.212 2,138.717 2,716.929 1,428.610 P1,288.319 CY 2012 1,124.252 958.659 165.593 26.837 138.755 CY 2011 P 1,232.596 915.507 317.089 26.872 290.217 Increase (Decrease) Amount Percent (108.344) 43.152 151.496 35 151.462 (.0879) 4.713 (47.78) .0013 (52.19) CY 2012 4,798.310 2,046.485 2,751.825 CY 2011 4,529.260 1,889.536 2,639.724 Increase (Decrease) Amount Percent 269.050 5.61 156.949 7.67 112.101 4.07

Scope of Audit The audit covered the accounts and operations of the City Government of Iligan for the period January 1 to December 31, 2012. The audit was undertaken to ascertain the fairness in the presentation of the financial statements and adherence to prescribe laws, rules and regulations, and whether programs, activities and projects were carried out in an economical, effective and efficient manner.

Audit Opinion on the Financial Statements The Auditor rendered a qualified opinion on the fairness of presentation of the financial statements due to the effects of the noted deficiencies on the balances of some accounts as discussed in detail in Part II of this report.

Significant Findings and Recommendations The Department of Interior and Local Government (DILG) National Capital Region thru the Seal of Good Housekeeping Program issued the certificate to the City of Iligan in recognition of its efforts in advancing the principles of accountability and transparency in local governance for Calendar Year 2011. It is also worth mentioning that management had provided the required budget and implemented the programs and activities under Gender and Development. They had also complied with all tax regulations. The following, however, are some of the deficiencies noted, with the corresponding recommendations, in the audit of the accounts and transactions of the city government for the year 2012:

A. Financial and Compliance 1. The financial report of the City government showed Property, Plant and Equipment (PPE) accounts with book value of P 2,419,907,918.52. The amount, consisting of movable properties issued to the various city department offices of P609,251,454.10 and immovable properties of P1,810,656,464.42, could not however, be validated because the physical inventory report which could be our basis to match the properties by classification and their corresponding amounts was not submitted to the Commission (COA) as required under Section 122 of Presidential Decree (PD) No. 1445. i. Create an Inventory Committee to conduct the physical count of the properties of the City government (All Funds) including acquired and donated land. After which, the Committee should come up with the Report on the Physical Count of ii

Property, Plant and Equipment (RPCPPE) by type to be submitted to the City Mayors office copy furnished the City Auditors Office not later than May 31, 2013. ii. To ensure the success of the Committee, all department/office head should be required to conduct its own Physical Count of all the properties in their respective department/office immediately based on the signed MRs and AREs on file at their office and to submit the RPCPPE and IIRUP, as applicable, and likewise, to prepare separate report for loss of government property to the Committee copy furnished the City Auditors Office. For the physical count of breeding stocks/animals, the City Veterinarian and the City Agriculturist should be recommended as members of the Committee.

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2. The city treasury fund was depleted by P68M as of September, 2012 for incurring wages of hired casuals, job order workers and contractual workers numbering about 2,525, most of which were not necessary and their assign job can be performed by a regular employees or dispensed with without loss of life or property or may not cause embarrassment to the city government. i. Fill up the vacant positions in the offices of the city accountant, city treasurer, GTLMH, city health office, city social welfare & development office and EEDMO. Mobilize regular personnel appointed for garbage collections and disposals, city plaza and parks and city hall premises to replace the casuals or job order workers or contractual workers presently assigned thereat; Devise a policy and internal control in the hiring of job orders such as but not limited to requiring the description of duties and responsibilities; recommendation of the department/office head availing the services of a job order and approval of the local chief executive;

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3. Fuel and Oil Inventory in the amount of P822,073.41 remained dormant for more than three years. The existence of the account is doubtful as the city government has no fuel depot. The lack of sound control process also resulted to doubtfulness and uneconomical use of gasoline, fuel and lubricants. i. Require the Accountant to determine how the inventory account was recorded identify the supplier/gas station, reconcile/trace and retrieve documents to determine possibility of non-recording of issuances/usages, possible erroneous entry or otherwise; iii

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The drivers trip ticket should be serially numbered. In this case the City General Services Office/ shall provide or make available to all department/office the drivers trip ticket with control number or serial number; No motor vehicle should be allowed to depart from the office without the drivers trip ticket duly approved by the department/office head or the Assistant department head or the officer in-charge, in the absence of the former. Employees using the motor vehicle during office hours should support copy of their locator slip or pass-out slip duly approved by the department/office head or his authorized representative stating therein the purpose and place to be visited in the drivers trip ticket and must sign the driver/s trip ticket in the authorized passenger(s); All requisition slip or withdrawal slip should be issued in chronological sequence or consecutively duly sign by the approving official on the drivers trip ticket or his authorized representative; Install speedometer/odometer in all motor vehicles to replace dilapidated one. Show odometer reading during the beginning or end of the official travel/trip in the drivers trip ticket to determine the actual fuel consumed during the travel; All motor vehicle shall be parked/ kept in the garage or at the office. The practice of allowing the drivers particularly casuals/job order worker to bring the motor vehicle in their residence is strictly prohibited. Department/office head is reminded of their responsibility and accountability for all government properties; Fetching of official/employee from residence to office and vice versa including the use thereof of the members of the family of the official/employee and drivers even if they are riding with such official/ employee /driver is strictly prohibited; and

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viii. Within 10 days from the end of the month, the driver through their department/office head shall submit the monthly fuel consumption report together with the original copy of the drivers trip ticket to the office of the City Auditor for audit purpose. 4. Some government motor vehicles of the City were not marked For Official Use Only, while the necessity of issuing more than one motor vehicle to a city department/office was not evaluated, and further, city officials whose department/office were assigned with motor vehicle/s still collect transportation allowance, thus, defeating the regulations on the proper use of government vehicles and entitlement of transportation allowance.

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Require the City General Services Office to see to it that all government motor vehicles including heavy equipment, transportation equipment and motorcycles shall be plainly marked FOR OFFICIAL USE ONLY in accordance with the specification provide for and must bear government plate pursuant to COA Circular No. 75-6 dated November 6, 1975. Require the department/office head concerned to submit justification on providing gasoline & oil to assign or issue motor vehicle to them without marking FOR OFFICIAL USE ONLY when these are strictly prohibited. The City government should provide a garage for the safekeeping of all government motor vehicles after office hours, during Saturdays, Sundays & holidays. Require the local finance committee (LFC) shall evaluate the necessity of the request of department/office heads for acquisition of new vehicle taking into consideration the function of the department/office. Create a Task Force Committee to conduct study or evaluate the necessity of the number of motor vehicles and motor cycles assigned or issued to the department/office. After evaluation, motor vehicles and motorcycles no longer needed by the department/office or custodian thereof shall be disposed of in accordance with the rules and regulations on the matter. On motor cycle, the functions of the office and the statement of duties and responsibilities of the custodian thereof must be taken into consideration. Require the officials whose offices are issued with motor vehicles, whether or not they actually used such vehicles, to refund the RATA, pursuant to COA Circular No. 99-002 dated June 15, 1999.

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5. Funds transferred to NGOs/POs amounting to P7,290,263.78 remained unliquidated as of the year-end contrary to Section 5.4 of COA Circular No. 2007-001. Part of the amount equivalent to 44.16% or P3,219,137.45 were misclassified as such and likewise failed to liquidate the financial assistance given. i. Direct the City Accountant to demand immediate liquidation of fund transferred to NGOs/POs. Render report for those who cannot submit liquidation to the City Mayor and the appropriate committee in the Sangguniang Panlungsod for the adoption of appropriate measures to protect the interest of the city government. To safeguard fund transferred to NGOs/POs, the accountant and the focal person in the implementation of the project should conduct pre-briefing seminar

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on the reporting of the utilization of the fund and in the implementation project before fund releases. iii. Strictly follow the guidelines stated under COA Circular NO. 2007-01 dated October 25, 2007 on the grant of government funds to NGOs/POs. Reclassify the accounts of other groups/association.

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6. Despite having an existing unliquidated funds of P25,216,305.78 out of prior year releases, the City still released the sum of P27,387,668.00 for barangay development projects in violation of COA Circular No. 94-013 and the covering Memorandum of Agreement (MOA). i. Require the barangays the submission of their statement of expenditures of the previous funds as a prerequisite to the next release pursuant to the provisions of COA Circular N0. 94-013 and the MOA. The City Accountant should see to it that issue demand letters to the Punong Barangay/Barangay Treasurer for the submission of the required report to liquidate the fund transfer. The City Accountants representative and the barangay record keepers should sit together quarterly for the reconciliation of their accounts to identify the reconciling items and to record immediately the adjustments concluded; The Office of the ABC President shall provide the SA the status of the projects implementation for the latter to validate the completion of the projects and determine whether the IA implement the projects in accordance with the MOA.

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7. Barangay Development Projects amounting to P2,826,900 which was implemented through Executive Order and Memorandum of Agreement (MOA) lacks the authority from the Sangguniang Panglunsod as required under Section 22(c) of RA No. 7160. i. The local chief executive shall strictly observe the requirement under Section 22 (c) of the Local Government Code (RA No. 7160) before entering contract specifically when he appropriation ordinance describe the project in the generic terms or the purchase of goods and services not specified in the appropriation ordinance or part of the regular personal services and maintenance and other operating expenses. Submit the approved SP Resolution for entering MOA with the individual barangay official of the recipient barangay.

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The city accountant to see to it that contract or MOA entered into by the local chief executive in behalf of the city government is supported with SP Resolution approving the contract or MOA.

8. Grant of Instructional Materials Allowance to Nationally Paid Secondary and Elementary School Teachers. i. The Local School Board should stop appropriating additional allowance to nationally paid elementary and secondary public school teachers assigned or stationed in the City; and Although its not mandatory, the City Schools Division Superintendent may ask or request from the city government to provide additional allowances to elementary and secondary public school teachers assigned or stationed in the City.

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9. Contractor for the delivery of foodstuff for the first 30 days supplemental feeding program under the early childhood care & development was paid in full of the contract price of P1,998,155.00 despite no complete delivery was made by the contractor as of the date of payment contrary to Section 88, P.D. 1445. i. Delivery of foodstuff for the supplemental feeding program should be made a day before and /or three days before the schedule feeding program for day care centers located within the city limits or coastal areas and hinterland barangays, respectively, to sustain the nutrients of the foodstuff. Payment to contractor should be based on the actual delivery or as a billed by the contractor whichever is appropriate.

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Value for Money Audit: 10. Infrastructure projects funded under the Kilos Asenso Support (KAS) Fund in the amount of P6,301,363.00 received by the City Government from the Department of Budget & Management remained intact since CY 2009 was not implemented thus the desire social benefits were not attained. Notwithstanding the actions taken on this regard, we recommend the following courses of action: i. expedite the preparation of the individual program of work and coordinate with the recipient barangay for the clearing operations for the project site; instruct the local finance committee (LCF) shall ensure the allocation of the necessary counterpart fund from the 20% IRA for development projects; vii

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the City shall strictly abide with the DBM Circular in the utilization and implementation of the projects programmed from the KAS Fund; and in case the projects will not be implemented during the year the CGI shall return the KAS fund to the national government through the National Treasury.

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11. The required five days a week supplemental feeding program for 120 days was not implemented thus the expected output to improve the nutritional status of the target children was not sustained. i. The implementer agency should adopt the required five (5) days a week supplementary feeding program and prepare separate schedule for supplementary feeding program for day care centers located in the coastal areas and hinterland barangays The delivery period for foodstuff should be made a day before the schedule feeding program for five (5) days consumption. Day care workers should conduct constant dialogue with the organized parents informing them the objectives of the program and the fund release is limited to the official list submitted to the FO. Account for the excess children from the official list submitted per day care centers and present with the city government for providing the appropriate fund needed as a local counterpart fund to the program.

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F. Status of Implementation of Prior Years Audit Recommendations Of the thirty-two (32) prior years audit recommendations, 28% or 9 were fully implemented, 28% or 9 were partially implemented and 44% or 14 were not implemented.

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TABLE OF CONTENTS
Part I Subject AUDITED FINANCIAL STATEMENTS Independent Audit ors Report Statement of Management s Responsibility for Financial Financial Statements Financial Statements Consolidated Balance Sheet. Consolidated Statement of Income and Expenses Consolidated Statement of Cash Flows Consolidated Notes to Financial Statements 1 2 Page

3 5 6 8

II DETAILED FINDINGS & RECOMMENDATIONS Financial and Compliance Audit Value for Money Audit 23 46

III STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT RECOMMENDATIONS

51

IV ANNEXES Consolidated Balance Sheet (by Fund) Consolidated Income Statement (by Fund) Consolidated Statement of Cash Flows (by Fund) Status of Appropriations, Allotment and Obligations (8pp) Statement of Appropriations, Allotments, Obligations and Balances General Fund (2pp) Statement of Appropriations, Allotments, Obligation and Balances Special Education Fund Statement of Appropriations, Allotments, Obligation and Balances 20% Development Fund Statement of Appropriations, Allotments, Obligation and Balances 20% Development Fund Continuing Appropriations (2pp) 97

Republic of the Philippines COMMISSION ON AUDIT Office of the Regional Director

Regional Office No. 10


Cagayan de Oro City

INDEPENDENT AUDITORS REPORT

HONORABLE LAWRENCE LL. CRUZ City Mayor Iligan City We were mandated by the 1987 Philippine Constitution to audit the accompanying financial statements of the City of Iligan which comprise the Balance Sheet as of December 31, 2012 and the related Statements of Income and Expenses and Cash Flows for the year then ended and a summary of significant accounting policies and other explanatory notes. Managements Responsibility for Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the Philippines and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Philippine Standards on Auditing. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making these risk assessments, the auditor considers internal control relevant of the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of

accounting policies used by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Bases for Qualified Opinion As discussed in Part II of the Report, the reliability of the book value of Property, Plant and Equipment (PPE) accounts totaling P2,419.908 billion could not be validated due to the absence of the Report of Physical Count of Property, Plant and Equipment (RPCPPE). Likewise, the book balances of the inventory accounts for P4,780,620 could not be also validated due the absence of the Report of Physical Count of Inventories (RPCI). Of the said amount three inventory accounts totaling P3,150,860 have become dormant, thus rendering the inventory account doubtful. Also, funds transferred to LGUs (Barangays), and NGOs/POs, totaling P88,396.13 remained unliquidated as of December 31, 2012, contrary to existing rules and regulations and which resulted to the overstatement of the asset account and understatement of the corresponding expense accounts. Qualified Opinion In our opinion, except for the effects of the matter discussed in the Bases for Qualified Opinion paragraphs, the financial statements present fairly in all material respects, the financial position of the City of Iligan as of December 31, 2012, and the results of its operation and cash flows for the year then ended in accordance with generally accepted accounting principles in the Philippines.

COMMISSION ON AUDIT By:

May 15, 2013


April 30, 2013

Republic of the Philippines

CITY OF ILIGAN OFFICE OF THE CITY MAYOR


STATEMENT OF MANAGEMENTS RESPONSIBILITY FOR FINANCIAL STATEMENTS
The Management of the CITY GOVERNMENT OF ILIGAN is responsible for all information and representation contained in the Consolidated Balance sheet as of December 31, 2012 and the related Consolidated Statement of Income and Expenses and Statement of Cash Flows for the period ended. The financial statements have been prepared in conformity with generally accepted accounting principles and reflect amounts that are based on best estimates and informed judgment of management with an appropriate consideration of materiality. In this regard, management maintains a system of accounting and reporting which provides for the necessary internal controls to ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition and liabilities recognized.

Republic of the Philippines CITY GOVERNMENT OF ILIGAN CONSOLIDATED BALANCE SHEET As of December 31, 2012 (With Comparative Figures for 2011)
2012 ASSETS Current Assets: Cash, (Note 3) 1,425,142,485.61 Receivables, (Note 4) 876,890,017.26 Inventories, (Note 5) 4,780,620.07 Prepayments, (Note 6) 33,186,611.14 Other Current Assets 80,000.00 Total Current Assets 2,340,079,734.08 Investments: Investments in Securities, (Note 7) 6,000,000.00 Total Investments 6,000,000.00 Property, Plant & Equipment (Net of Depreciation) Land and Land Improvements 346,567,852.99 Buildings 487,627,681.89 Leasehold Improvements 2,486,484.71 122,702,668.51 Office Equipment, Furniture and Fixtures Machineries and Equipment 140,157,664.28 Transportation Equipment 82,478,672.49 263,912,448.82 Other Property, Plant and Equipment Public Infrastructures 170,264,101.70 Reforestation Projects 49,500.00 Construction in Progress 803,660,843.13
Total Property, Plant and Equipment, (Note 8)

2011

1,288,318,945.11 1,001,635,179.76 4,706,104.00 33,738,887.97 80,000.00 2,328,479,116.84 6,000,000.00 6,000,000.00 326,428,216.33 494,274,491.27 2,486,484.71 123,795,673.43 134,533,534.45 93,009,220.21 264,446,255.12 170,264,101.70 49,500.00 553,298,024.49 2,162,585,501.71 32,195,520.49 4,529,260,139.04

Other Assets, (Note 9) TOTAL ASSETS

2,419,907,918.52 32,322,220.49 4,798,309,873.09

LIABILITIES AND EQUITY LIABILITIES Current Liabilities, (Note 10) Long-Term Liabilities,( Note 11) Deferred Credits, (Note 12) Total Liabilities EQUITY Government Equity, Beg. Add/Deduct: Retained Operating Surplus Prior Year's Adjustments Transfers to Registry Government Equity, End (Note 13) TOTAL LIABILITIES AND EQUITY

602,008,218.51 677,866,248.46 766,610,108.19 2,046,484,575.16 2,639,724,467.56 138,755,033.23 (19,897,801.72) (6,756,401.14) 2,751,825,297.93 4,798,309,873.09

662,995,470.11 337,168,765.41 889,371,435.96 1,889,535,671.48 2,365,710,745.84 290,216,706.22 3,071,726.47 (19,274,710.97) 2,639,724,467.56 4,529,260,139.04

See Accompanying Notes to Financial Statements

Republic of the Philippines CITY GOVERNMENT OF ILIGAN CONSOLIDATED STATEMENT OF INCOME AND EXPENSES For the year December 31, 2012 (With Comparative Figures for CY 2011)
2012 INCOME, (Note 14) Local Taxes Internal Revenue Allotment Permits and Licenses Service Income Business Income Other Income Total Income Less: EXPENSES, (Note 15) Personal Services Maintenance and Other Operating Expenses Financial Expenses Total Expenses NET OPERATING INCOME Add: Subsidies to Other Funds Total Less: Subsidies to Other LGUs Subsidies to NGO's/PO's Subsidies to Other Funds Subsidies to NGA's Donations Total NET INCOME 237,425,951.70 732,393,920.00 8,017,002.38 16,108,122.04 98,749,478.64 31,557,528.08 1,124,252,002.84 521,713,700.10 394,943,156.08 42,002,453.25 958,659,309.43 165,592,693.41 44,500,000.00 210,092,693.41 6,352,964.00 7,971,720.33 44,500,000.00 12,512,975.85 71,337,660.18 138,755,033.23 2011 231,642,149.73 853,673,770.00 8,167,651.62 16,985,799.03 90,174,625.70 31,951,729.05 1,232,595,725.13 490,794,856.47 394,069,044.29 30,643,124.10 915,507,024.86 317,088,700.27 65,630,770.06 382,719,470.33 6,483,816.00 7,711,993.42 66,830,770.06 11,476,184.63 95,502,764.11 290,216,706.22

See Accompanying Notes to Financial Statements

Republic of the Philippines CITY GOVERNMENT OF ILIGAN CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended December 31, 2012 (With Comparative Figures for 2011)
2012 Cash Flows from Operating Activities Cash Inflows: Share from Internal Revenue Collections Collection from Taxpayers Receipts from Sale of Good and Services Interest Income Other Receipts Total Cash Inflows Cash Outflows: Payments: To Suppliers/Creditors To Employees Interest Expense Other Disbursements Total Cash Outflows Net Cash Operating Activities Cash Flows from Investing Activities: Cash Inflows: Sale of Property, Plant and Equipment Sale of Debt Securities of Other Entities Collection of Principal on Loans to Other Entities Total Cash Inflows Cash Outflows: Purchase Property, Plant & Equipment and Public Infrastructures Purchase Debt Securities of Other Entities Grant/Loans to Other Entities 6 2011

732,393,920.00 374,958,690.05 14,487,520.38 5,433,907.11 133,699,775.65 1,260,973,813.19

853,673,770.00 360,483,134.93 13,099,014.23 5,443,666.31 718,814,417.97 1,951,514,003.44

280,837,760.48 708,317,570.31 40,797,838.91 403,148,903.19 1,433,102,072.89 (172,128,259.70)

364,095,613.65 663,395,528.18 30,309,341.82 235,985,012.53 1,293,785,496.18 657,728,507.26

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

31,745,682.85 0.00 0.00

22,186,760.89

Total Cash Outflows Net Cash from Investing Activities

31,745,682.85 (31,745,682.85)

22,186,760.89 (22,186,760.89)

Cash Flows from Financing Activities Cash Inflows: Issuance of Debt Securities Acquisition of Loan Total Cash Inflows Cash Outflows: Retirement/Redemption of Debt Securities Payment of Loan Amortization Total Cash Outflows Net Cash from Financing Activities Net Increase in Cash Cash at Beginning of the Year Cash at the End of the Period

455,265,650.98 455,265,650.98

0.00 187,203,218.73 187,203,218.73

114,568,167.93 (114,568,167.93) 340,697,483.05 136,823,540.50 1,288,318,945.11 1,425,142,485.61

0.00 112,637,620.46 (112,637,620.46) 74,565,598.27 710,107,344.64 578,211,600.47 1,288,318,945.11

See Accompanying Notes to Financial Statements

Notes to Consolidated Financial Statements (With Comparative Figures for 2011) Note 1: 1.1 General Profile of the City Government of Iligan Iligan became a chartered city through RA 525 on June 16, 1950 and on 19 September 2001 the city was transferred from Region 12 to Region 10 by virtue of EO No. 36. Based on national and regional development plans, Iligan City is envisioned to be the industrial center in the Northern Mindanao Growth Area and a sub-regional growth center for education, service and recreation, among others. The city plays a key role in the development of the region as it supplies most of the areas electrical power. In addition, it has great eco-tourism potential with the presence of a number of waterfalls and water features. The influ x of immigrants due to the citys industrial boom in the 1950s through the 1980s, coupled with its natural population growth, created a strain, not only in urban space, but also on the capacity of the local government to deliver services and provide employment and livelihood opportunities. To address urban social ills, the city aims to implement a comprehensive human resource development approach that focuses on education and training; health, nutrition and socialized housing; and poverty alleviation. Iligan City has a land use plan and an area development framework, which aim to locate public and community services strategically, to properly allocate land towards sustainable development, and to rezone excess lands to allow new developments for socioeconomic ends. Iligan has a relatively adequate transport system and is accessible from major Philippine cities through air, water, and land. Summary of Significant Accounting Policies Basis of Financial Statements Presentation. 2.1.1 The statements have been prepared in accordance with generally accepted state accounting principles and standards. 2.1.2 The consolidated financial statements consist of transactions from the General Fund, Special Education Fund and Trust Fund. 2.2 Accounting Policies Observed for Each Account 2.2.1 The city 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 law requires other methods.

1.2

Note 2: 2.1

2.2.2 Allowance for doubtful accounts are maintained 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 on a regular basis. 2.2.3 The 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. 2.2.4 The costs of ending inventory of office supplies and materials and other inventory items are computed using the Moving Average Method. 2.2.5 Supplies and materials purchased for the inventory purposes are recorded using the Perpetual Inventory System. 2.2.6 Petty Cash Fund (PCF) account is maintained under the Imprest System. All replenishments are directly charged in the expense account. The PCF is not used to purchase regular inventory items for stock. 2.2.7 Property Plant and Equipment are carried at cost less accumulated depreciation. 2.2.8 Bonus paid to contractors for early completion of the work was added to the total cost of the project while liquidated damages paid for by the contractor for delayed completion of the project was deducted from the project cost. 2.2.9 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. 2.2.10 The construction period theory shall also apply for expenditures on infrastructure projects of the Trust Funds. For other projects, expenditures shall be debited to the appropriate expenditure account. Expenditures shall be closed to Project Equity account at year-end or upon project completion, whichever comes first. 2.2.11 Properties of the government, which are used by the general public, are accounted for under the Public Infrastructures/Reforestation Projects. These are dropped from Property, Plant & Equipment account and recorded in the Registry of Public Infrastructure/Reforestation Projects.

2.2.12 Public Infrastructures/Reforestation Projects and serviceable assets not used in operation are not subject to depreciation. 2.2.13 The Straight Line Method of depreciation is used in depreciating the Property, Plant & Equipment with estimated useful lives ranging from five to fifty years. A residual value, computed at ten percent of the cost of asset is set and depreciation starts on the second month after purchase. 2.2.14 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. 2.2.15 Accounts were again reclassified in conformity with the revised new Chart of Accounts prescribed under COA Circular No. 2003-002 dated August 1, 2003. 2.2.16 Financial expenses such as bank charges are separately classified from MOOE. 2.2.17 Transactions in foreign currencies are recorded in Philippine Peso based on the BSP rate of exchange prevailing at the date of transactions. 2.2.18 Foreign currency denominated monetary assets and liabilities at balance sheet date is restated based on BSP exchange rate at the date. Foreign exchange gains/losses are recognized in the books of accounts. 2.2.19 Fundamental errors of prior years are corrected by using the Prior Years Adjustment account. Errors affecting current years operation are charged to the current years accounts. Note 3: Cash and Cash in Banks P 1,425,142,485.61

Compositions of cash and cash in banks are as follows:


Account Title Cash in Vault Cash-Disbursing Officers Petty Cash Fund Cash in Bank-LC, Current Acct. Cash-Bank-LC, Time Deposit Total GF 9,184,598.28 130,371.05 761,200,063.49 187,743,971.39 958,259,004.21 21,737,027.21 23,022,967.86 46,221,114.69 401,129,679.19 15,868,411.14 420,662,366.71 SEF 1,461,119.62 TF 3,664,276.38 CY 2012 14,309,994.28 130,371.05 1,184,066,769.89 226,635,350.39 1,425,142,485.61 PY 2011 17,067,637.14 133,243.40 1,048,090,538.97 223,027,525.60 1,288,318,945.11

10

Total cash balances as of December 31, 2012 for all funds amounted to P1,425,142,485.61, comprising the General Fund, Special Education Fund and the Trust Fund, with an amount of P958,259,004.21 , P46,221,114.69 and P420,662,366.71 , respectively. Under the General Fund, a portion of the Cash in Bank Current Accounts representing BIR payments from Iligan City Water Supply System Development Project in favor of RD Policarpio & Co., Inc. totaling P5,891,447.45. Said amount was paid under LBP CA No. 0322-1063-43 and DBP CA No. 0820-016198-030, both Iligan City Government Account, instead of LBP CA No. 0322-1126-53 Iligan City Water Supply System Development Project, subject for adjustment. Transactions submitted after February 13, 2012 were not included.

Cash balances per books differ from bank due to outstanding checks, depositin-transit and other reconciling items which are shown in detailed per Bank Reconciliation Reports. In connection with the city's approved term loan with Land Bank of the Philippines-Iligan Branch with principal amount of P 445.50M and P 50M equity on the development and expansion of Iligan City Water System Project, additional releases in the following amount are as follows : P22,135,669.16; P25,725,128.73 ; P15,194,710.69 ; P9,409,563.99 ; and P11,899,913.35, and P16,828,754.83, representing sixth, seventh, eighth, ninth, tenth and eleventh releases, respectively. Amount directly debited by the bank as payment in favor of the Contractor and suppliers. Some billings of the said project were not recorded due to insufficient documents needed for proper recording.

Note 4:

Receivables P 876,890,017.26

This account includes the following:


Account Title Account Receivable Due from Officers & Employees Loans Receivable, Others Real Property Tax Receivable Special Edu. Tax Receivable Due from NGAs Due from GOCCs Due from LGUs GF 6,911,814.24 7,918,226.61 407,679,602.52 350,144,763.22 6,397,110.19 1,285,000.00 81,105,870.66 SEF 268,901.39 TF 359,206.09 1,579,841.16 CY 2012 7,539,921.72 9,498,067.77 407,679,602.52 350,144,763.22 6,397,110.19 1,285,000.00 81,105,870.66 PY 2011 8,097,534.67 8,690,848.20 471,856,200.59 408,755,365.54 6,397,110.19 1,285,000.00 81,888,862.75

11

Account Title Due from NGOs/POs Due from other Funds ReceivablesDis./Charges Other Receivables Total

GF 5,190,263.78 1,456,156.00 4,231,728.34 140,081.02 522,315,853.36

SEF 2,100,000.00

TF 79,586.60

CY 2012 7,290,263.78 1,535,742.60 4,273,491.52

PY 2011 8,995,809.51 2,322,958.11 3,198,423.34 147,066.86 1,001,635,179.76

41,763.18 1.26 352,555,429.05 101.00 2,018,734.85

140,183.28 876,890,017.26

Total Receivables as of December 31, 2012 , P876,890,017.26 shows a rapid decrease of P 124,745,162.50 against December 31, 2011 balance of P 1,001,635,179.76 . Material amount of reductions from Due to Officers and Employees, RPT and SEF receivables, Due from NGAs and Due from GOCCs and Due from Other Funds. Due from Officers and Employees , as of December 31, 2012 reduces by P557,612.95 for all funds. Under the General Fund and Special Education Fund total reduction amounted to P640,868.78 and P43,004.56, respectively, as a result of liquidations submitted. While under the Trust Fund Account an increased of P126,260.39 due to Cash Advances in travel. RPT and SEF Receivables of P407,679,602.52 and P350,144,763.22, respectively represents the uncollected amounts due from taxpayers for basic real property taxes and additional levy on real property taxes accruing to General Fund and Special Education Fund for the year 2012. Subject for adjustments and reconciliation , due to some delinquent taxpayers which can no longer be located, availment of tax amnesties, company's bankrupcy/disclosure, etc. pending submission of the complete records from the City Treasurer's Office . Due from LGUs of P81,105,870.66 represents barangay projects funded from their barangay share on the 20% development fund of the city. Full settlement/liquidatiions of all fully implemented and completed projects were required. Increased in amount resulted from some projects not yet fully completed when another fund transfer was made in less than a year. LGUs with no outstanding balances transferred funds from the city to there respective barangay funds and failure of some LGUs to submitted proper documents of completed projects to the office of the city accountant for recording in the books of accounts.

12

Note 5:

Inventories P 4,780,620.07

This account consist of :


Account Title Office Supplies Inventory Accountable Forms Inventory Drugs and Medicine Inventory Medical, Dental and Laboratory Gasoline, Oil and Lubricants Inventory Other Supplies Inventory Spare Parts Inventory Total 293,148.00 2066,500.00 4,780,620.07 293,148.00 2066,500.00 4,780,620.07 GF 244,644.50 748,150.67 791,211.90 636,965.00 SEF TF CY 2012 244,644.50 748,150.67 791,211.90 636,965.00 PY 2011 103,789.50 141,076.19 791,211.90 488,305.00 822,073.41 293,148.00 2,066,500.00 4,706,104.00

Total inventory items amounted to P 4,780,620.07, under the General Fund Account only. Supplies and materials, gasoline, lubricant and oil were coursed thru inventories upon acquisition and recorded directly the issuances as it is directly delivered to end user.

Note 6:

Prepayments

P 33,186,611.14

This account consists of:


Account Title Prepaid Insurance Advances to Contractors Total GF 1,146,581.79 31,730,517.71 32,877,099.50 103,401.70 103,401.70 206,109.94 206,109.94 SEF TF CY 2012 1,146,581.79 32,040,029.35 33,186,611.14 PY 2011 1,146,581.79 32,592,306.18 33,738,887.97

Under the General Fund, Special Education Fund and Trust Fund, total prepayments for year 2012 amounted to P33,186,611.14 , while the total amount of all prepayments as of December 31, 2011 amounted to P33,738,887.97. Difference of P552,276.83, resulting from the recoupment of 15% mobilization of the Advances to Contractors. Long Term Investment P 6,000,000.00 This represents Iligan City Governments equity in th e joint assistance program of Landbank and Iligan City Government known as Share Financing Program for Cooperatives in Iligan City. The objective of the program is to make available to cooperatives in the City of Iligan financial assistance for income generating projects. 13

Note 7:

The fund is deposited in a trust account with Landbank and the status of the citys investment and the balance of the city government equity, still for further verification on Landbank of the Philippines, subject for verification, pending status from Landbank. Property, Plant and Equipment ( net ) P 2,419,907,918.52

Note 8:

This account consists of: (see attached table) Property, Plant and Equipment (net) in the total amount of P2,419,907,918.52 comprises the General Fund, Special Education Fund and Trust Fund amounting to P2,199,325,871.80, P168,004,456.81 and P52,577,589.91 , respectively. Another set of depreciable properties, set-up in the lump-sum appropriations during the installation of the e-ngas program, were partially itemized, including its estimated useful life. Depreciation was computed using the straight-line method, after deducting its residual value of ten percent (10%) of the acquisition cost. Prior - year's depreciation were recorded as prior-year's adjustments while depreciation for the year were recorded as expense.

A good number of completed public infrastructure projects and agency assets were transferred to Registry on Public Infrastructure at year end per list of completed projects as of December 31, 2012 submitted by the City Engineer's Office. These included completed projects of different barangays funded from the 20% Development Fund Equal Sharing. Under the General Fund, Public Infrastructure Projects in the total amount of P6,756,401.14 was transferred to Registry of Public Infrastructures. The Electrification, Power & Energy Structures balance is subject for review. The process of itemizing and reconciling the records against the lumpsum appropriation are still on progress. Disposal/Dropping of Unserviceable Properties of Property, Plant and Equipment duly recommended/considered dropped by COA were already dropped, as submitted by the City General Services Officer. Purchases of heavy equipment, IT equipment, and other properties resulted to the increase in amount.

14

Property, Plant and Equipment


General Fund ACCOUNT TITLE Cost Land Land Improvements Electrification, Power & Energy Structures Office Buildings School Buildings Hospitals & Health Centers Markets & Slaughterhouses Other Structures Leasehold Improvements, Land Leasehold Improvements, Buildings Office Equipment Furniture & Fixtures IT Equipment & Software Library Books Machineries Agricultural, Fishery & Forestry Equipment Communication Equipment Construction & Heavy Equipment Firefighting Equipment & Accessories Hospital Equipment Medical, Dental & Laboratory Equipment Military & Police Equipment Sport Equipment Technical & Scientific Equipment Other Machineries & Equipment Motor Vehicles Watercrafts Other Transportation Equipment 329,061,409.28 5,907,979.61 1,571,312.15 176,251,499.61 26,099,335.15 6,266,077.49 116,041,528.94 61,870,903.92 2,486,484.71 50,812.15 7,470,707.14 4,238,867.53 3,330,605.65 4,244,837.49 Accum. Dep. Net 329,061,409.28 5,907,979.61 (1,759,293.50) 172,006,662.12 26,099,335.15 6,215,265.34 108,570,821.80 57,632,036.39 2,486,484.71 35,609,639.62 21,721,004.20 65,737,473.40 11,095,347.92 254,321.00 1,189,835.00 12,188,708.90 125,083,101.47 3,712,050.94 8,355,109.75 8,441,651.60 1,635,363.53 1,932,292.00 12,105,662.47 1,904,102.00 99,140,884.63 197,500.00 374,000.00 4,741,562.68 1,235,227.52 21,206,111.64 8,274,761.07 114,444.45 722,332.87 5,611,834.67 17,944,556.85 887,204.18 2,938,159.64 1,786,591.33 519,211.59 898,530.56 5,322,108.04 811,672.30 22,949,909.84 69,618.75 66,600.00 30,868,076.94 20,485,776.68 44,531,361.76 2,820,586.85 139,876.55 467,502.13 6,576,874.23 107,138,544.62 2,824,846.76 5,416,950.11 6,655,060.27 1,116,151.94 1,033,761.44 6,783,554.43 1,092,429.70 76,190,974.79 127,881.25 307,400.00 3,104,650.00 2,000,130.03 349,100.00 545,996.57 113,457.50 245,698.45 28,890.00 18,572.15 47,013.29 21,156.00 2,798,727.55 15,755,274.24 656,090.00 20,451,138.10 344,016.09 1,484,146.70 7,191,839.17 386,749.36 9,588,122.42 154,807.25 132,367.28 18,916.57 Cost 8,946,883.05 354,853.90 807,914.15 110,268,050.05 6,444,647.64 360,493.50 16,540,207.50 573,038.81 Accum. Dep. Net 8,946,883.05 354,853.90 447,420.65 93,727,842.55 5,871,608.83 113,450.71 1,314,580.85 8,563,435.07 269,340.64 10,863,015.68 189,208.84 25,857.29 10,317.85 235,642.50 300,298.12 1,104,519.97 4,876,500.00 128,603.52 55,000.00 65,000.00 1,237.50 975.00 33,000.00 1,762,022.30 291,483.00 616,850.50 385,440.79 42,776.45 5,257.03 21,269.07 14,831,391.95 74,156.96 2,640,664.48 7,240.47 Cost 3,608,600.00 Special Education Fund Trust Fund Accum. Dep. Net 3,608,600.00 2,633,424.01 14,757,234.99 1,719,245.85 286,225.97 595,581.43 385,440.79 33,000.00 53,762.50 64,025.00 4,747,896.48 Cost 341,616,892.33 6,262,833.51 2,379,226.30 286,519,549.66 32,543,982.79 8,906,741.97 116,041,528.94 76,834,663.15 2,486,484.71 40,170,389.47 37,767,761.44 67,010,413.90 31,931,926.81 598,337.09 1,222,835.00 12,235,722.19 125,083,101.47 3,740,940.94 8,410,109.75 8,506,651.60 1,635,363.53 2,281,392.00 12,651,659.04 1,904,102.00 107,122,034.63 197,500.00 374,000.00 CY 2012 Accum. Dep. 3,691,099.15 20,785,044.99 573,038.81 58,052.62 7,470,707.14 4,331,941.06 6,268,485.83 8,432,323.72 21,614,130.07 17,862,883.49 269,251.70 722,332.87 5,632,990.67 17,944,556.85 905,776.33 2,939,397.14 1,787,566.33 519,211.59 1,011,988.06 5,567,806.49 811,672.30 25,078,643.39 69,618.75 66,600.00 Net 341,616,892.33 6,262,833.51 (1,311,872.85) 265,734,504.67 31,970,943.98 8,848,689.35 108,570,821.80 72,502,722.09 2,486,484.71 33,901,903.64 29,335,437.72 45,396,283.83 14,069,043.32 329,085.39 500,502.13 6,602,731.52 107,138,544.62 2,835,164.61 5,470,712.61 6,719,085.27 1,116,151.94 1,269,403.94 7,083,852.55 1,092,429.70 82,043,391.24 127,881.25 307,400.00 Cost 319,738,509.73 6,262,833.51 2,348,497.90 286,516,174.24 31,584,405.28 8,459,824.48 115,931,136.23 76,748,175.44 2,486,484.71 0.00 38,484,972.94 37,025,961.66 64,818,092.90 31,553,890.56 598,337.09 1,222,835.00 12,154,568.19 120,357,954.89 1,402,641.74 7,841,609.75 7,802,361.60 1,404,563.53 2,251,892.00 12,651,659.04 1,847,157.00 113,205,296.63 197,500.00 374,000.00 PY 2011 Accum. Dep. 0.00 0.00 1,921,624.81 18,570,322.95 541,070.76 8,575.81 3,598,837.76 2,246,417.12 0.00 0.00 5,241,635.84 7,856,544.24 17,335,408.76 17,653,655.79 269,251.70 594,552.31 5,292,545.12 16,761,848.53 780,379.07 2,251,621.61 1,316,284.15 470,605.59 949,556.39 5,512,942.49 802,458.42 20,704,932.67 51,843.75 10,800.00 Net 319,738,509.73 6,262,833.51 426,873.09 267,945,851.29 31,043,334.52 8,451,248.67 112,332,298.47 74,501,758.32 2,486,484.71 0.00 33,243,337.10 29,169,417.42 47,482,684.14 13,900,234.77 329,085.39 628,282.69 6,862,023.07 103,596,106.36 622,262.67 5,589,988.14 6,486,077.45 933,957.94 1,302,335.61 7,138,716.55 1,044,698.58 92,500,363.96 145,656.25 363,200.00

15

Other Property, Plant & Equipment Roads, Highways and Bridges Parks, Plazas & Monuments Docks and Wharves including Passageway Water Supply, Head Control, Reservoir and Conduits Artesian Wells, Reservoir, Pumping Stations & Conduits Irrigation, Canals & Laterals Harbor, Riverwall, Seawalls and Improvements Other Public Infrastructures Reforestation - Upland Construction in Progress - Agency Assets Construction in Progress - Roads, Highways & Bridges Construction in Progress - Parks, Plazas & Monuments Construction in Progress - Artesian Wells, Reservoirs, Pumping Station & Conduits Construction in Progress - Irrigation, Canals and Laterals Construction in Progress - Flood Controls Construction in Progress - Waterways, Aquaducts, Seawalls, River Walls and Others Construction in Progress - Other Public Infrastructures Construction in Progress Reforestation Marshland/Swampland TOTAL

265,341,628.00

2,072,527.51

263,269,100.49 -

3,410,002.53

3,069,002.30

341,000.23 -

306,123.00

3,774.90

302,348.10 -

269,057,753.53 2,427,223.00 -

5,145,304.71 -

263,912,448.82 2,427,223.00 -

268,630,939.67 0.00 2,427,223.00 0.00

4,184,684.55 0.00 0.00 0.00

264,446,255.12 0.00 2,427,223.00 0.00

2,427,223.00

2,427,223.00 -

0.00

0.00

0.00

62,874.97 42,901,095.17

62,874.97 42,901,095.17 -

384,335.11

384,335.11 -

17,715,140.79 17,715,140.79

447,210.08 42,901,095.17 124,488,573.45 49,500.00 305,312,183.53

447,210.08 42,901,095.17 124,488,573.45 49,500.00 305,312,183.53

447,210.08 42,901,095.17 0.00 124,488,573.45 49,500.00 273,777,520.93

0.00 0.00 0.00 0.00 0.00 0.00

447,210.08 42,901,095.17 0.00 124,488,573.45 49,500.00 273,777,520.93

124,488,393.45 49,500.00 252,893,064.67

124,488,393.45 49,500.00 252,893,064.67

180.00

180.00 -

34,703,978.07

34,703,978.07

97,705,700.09

97,705,700.09

3,462,119.00

3,462,119.00

101,167,819.09

101,167,819.09

90,889,143.56

0.00

90,889,143.56

2,058,473.40

2,058,473.40

2,058,473.40

2,058,473.40

2,058,473.40

0.00

2,058,473.40

294,724,506.98

294,724,506.98

7,135.00

7,135.00

294,731,641.98

294,731,641.98

104,730,484.21

0.00

104,730,484.21

21,440,199.59

21,440,199.59

21,440,199.59

21,440,199.59

19,101,803.79

0.00

19,101,803.79

3,760,708.02

3,760,708.02

3,760,708.02

3,760,708.02

3,280,873.82

0.00

3,280,873.82

4,849,245.13

4,849,245.13

4,849,245.13

4,849,245.13

4,353,352.73

0.00

4,353,352.73

67,890,278.41

67,890,278.41

236,686.90

236,686.90

2,206,410.00

2,206,410.00

70,333,375.31

70,333,375.31

55,099,174.97

0.00

55,099,174.97

7,197.08

7,197.08

7,197.08

7,197.08

7,197.08

0.00

7,197.08

2,316,834,667.25

117,508,795.45

2,199,325,871.80

209,770,794.52

41,766,337.71

168,004,456.81

52,862,880.81

285,290.90

52,577,589.91

2,579,468,342.58

159,560,424.06

2,419,907,918.52

2,297,513,901.90

134,928,400.19

2,162,585,501.71

16

Note 9:

Other Assets

P 32,322,220.49

This account consists of:


Account Title Work/Other Animals Breeding Stocks Other Assets Total GF 1,322,924.00 28,217,431.28 353,092.00 29,893,447.28 2,195,773.21 2,195,773.21 233,000.00 SEF TF 233,000.00 CY 2012 1,555,924.00 28,217,431.28 2,548,865.21 32,322,220.49 PY 2011 1,555,924.00 28,090,731.28 2,548,865.21 32,195,520.49

Total Other Assets amounted to P32,089,220.49 for all funds, comprising the General Fund, Special Education Fund and Trust Fund, broken down into P29,893,447.28 ; P 2,195,773.21 and P 233,000 , respectively, as caused by an increase from General Fund Work / Other Animals and Breeding stocks, in the amount of P 300,000.00 and P 40,500.00, respectively. P 602,008,218.51

Note 10: Current Liabilities This account consist of:


Account Title Payables: Accounts Payable Due to Officers & Employees Sub-Total Inter-Agency Payables: Due to BIR Due to GSIS Due to PAG-IBIG Due to PHILHEALTH Due to Other NGAs Due to Other GOCCs Due to LGUs Sub-Total Intra-Agency Payables: Due to Other Funds Sub-Total Other Liability Accounts: GF

SEF

TF

CY 2012

PY 2011

69,424,718.53 9,618,487.51 79,043,206.04

3,756,348.87 2,768.74 3,759,117.61 -

73,181,067.40 9,621,256.25 82,802,323.65

64,385,057.37 6,570,794.11 70,955,851.48

18,587,152.15 (1,232,945.81) 2,581,556.12 1,737,215.02 10,047,949.43 189,810.00 166,496.29 32,077,233.20

1,283,568.48 272,242.42 122,921.15 1,489,546.87

3,252,074.05

23,122,794.68 (960,703.39) 2,704,477.27 3,226,761.89

13,199,494.35 (892,995.00) 2,671,855.12 2,244,361.89 62,455,138.38 14,637,884.34 1,886,731.95 96,202,471.03

52,860,016.31 16,742,125.93 1,715,985.93 3,168,278.92 74,570,202.22

62,907,965.74 16,931,935.93 1,882,482.22 109,815,714.34

33,053,722.00 33,053,722.00

207,458.51 207,458.51

16,144.91 16,144.91

33,277,325.42 33,277,325.42

104,114,278.31 104,114,278.31

17

Account Title Guaranty Deposits Payable Performance/Bidders/Bail Bonds Payable Other Payables Sub-Total Grand-Total

GF 16,534,859.73 666,575.65 14,439,920.17 31,641,355.55 175,815,516.79

SEF 914,579.87

TF 636,895.26 66,918,984.89

CY 2012 18,086,334.86 67,585,560.54 290,440,959.70 376,112,855.10 602,008,218.51

PY 2011 9,650,509.51 65,250,520.93 316,821,838.85 391,722,869.29 662,995,470.11

232,943.84 1,147,523.71 8,282,378.75

275,768,095.69 343,323,975.84 417,910,322.97

Accounts Payable due to GSIS incurred a debit balance of P960,703.39, broken down from Special Education Fund balance of P272,242.42 and a debit balance of P1,232,945.81 under the General Fund. A debit balance under General Fund, as a result from the citys partial settlement of premiums, penalties and surcharges in arrears, subject for review and verification pending submission of GSIS detailed listing. Due to BIR as of December 31, 2012, with a total amount of P23,122,794.68, included VAT deducted from Iligan City Water Supply System Devt. Project in favor of RD Policarpio & Co., Inc. totaling P5,891,447.45. Said amount was remitted to BIR under LBP CA 0322-1063-43 and DBP CA 0820016198-030, both Iligan City Government Account, instead of LBP CA 03221126-53 Iligan City Water Supply System Devt. Project, subject for adjustment. Due to Other Funds , as of December 31, 2012 and as of December 31, 2011 amounting to P33,277,325.42 and P104,114,278.31, respectively, with a difference of more or less P70M , included among others , PDAF and Calamity Fund for Typhoon Sendong in the total amount of P28M and P74M, respectively, which was transferred in the year 2012. Performance/Bidders/Bail Bonds Payable increased by only P2.335M as compared to last year 2011, in the amount of more or less P60M due to the receipt of Performance/Bidders Bond of Conal Holding Incorporated.

Note 11: Long Term Liabilities P 677,866,248.46 This account consists of :


ACCOUNT TITLE National Government Agencies MDFO- PRMDP Total Government Owned and/or Controlled Corporation DBP- IBJT DBP-Miscellaneous Health Services 47M CY 2012 20,518,792.65 20,518,792.65 PY 2011 24,525,239.78 24,525,239.78

18

ACCOUNT TITLE DBP-WATER WORKS PROJECT 50M DBP-Various Projects 28M Total Solid Waste Management Project & Heavy Equipment DBP-SOLID WASTE MANAGEMENT PROJECT (DBP funds) - 1st drawdown ( 7,538,000.00) DBP-SOLID WASTE MANAGEMENT PROJECT (kfw funds) - 1st drawdown (62,440.000.00) DBP-Solid Waste Management Project (kfw funds) - 2nd drawdown (78,050.000.00) DBP-MRF Solid Waste Management Project (KFW Funds) 3rd drawdon (P15,610,000.00 Total Iligan City Water Supply System Development Project LBP - WATER SYSTEM EXPANSION PROJECT (445.5M) -1st Released LBP - WATER SYSTEM EXPANSION PROJECT (14,476,166.24)-2nd Released LBP - WATER SYSTEM EXPANSION PROJECT (17,272,705.25)-3rd Released LBP - WATER SYSTEM EXPANSION PROJECT (69,574,896.52)-4th Released LBP - WATER EXPANSION PROJECT (96,931,035.49)-5th Released LBP - WATER EXPANSION PROJECT (22,135,669.16)-6th Released LBP - WATER EXPANSION PROJECT (25,725,128.73)-7th Released LBP - WATER EXPANSION PROJECT (15,194,710.96)-8th Released LBP - WATER EXPANSION PROJECT (9,409,563.99)-9th Released LBP - WATER EXPANSION PROJECT (11,899,913.35)10th Released LBP - WATER EXPANSION PROJECT (16,828,754.83)11th Released Total Grand Total

CY 2012 28,000,000.00 28,000,000.00

PY 2011

35,903,000.00 46,029,487.20 13,297,407.40 95,229,894.60 58,517,383.00 28,952,332.48 34,545,410.50 139,149,793.04 171,758,901.44 22,135,669.16 25,725,128.73 15,194,710.69 9,409,563.99 11,899,913.35 16,828,754.83 534,117,561.21 677,866,248.46

42,147,000.00 54,034,615.40

96,181,615.40

29,258,691.50 14,476,166.24 17,272,705.25 69,574,896.52 85,879,450.72

216,461,910.23 337,168,765.41

The city government of Iligan had short term loans with DBP, namely P28M and P47M DBP-Various Loans, with a term loan of 03/12/12-03/12/13 and 10/03/12-10/03/13, respectively. Last November 22, 2012, a one-time full payment was made on DBP loan P47M Various Priority Projects. DBPMRF Solid Waste Management Project (kfw funds) third drawdown was released February 07, 2012 in the amount of P15.610M. The actual total of the 15 years LBP Water System Expansion Project totalled P317,655,650.98 with 19

eleven releases as of December 31, 2012. Adjustment of the difference, ,P216,461,910.23, as compared with the total amount of P534,117,561.21 will be made on January 2013 Financial Reports. Total balance as of December 31, 2012 showed an increased of P340,697,483.05 due to full payment of loans and new releases of approved loans of the city. Necessary adjustments will be made to reconcile loan records as soon as debit / credit memos from the bank with sufficient data be furnished. P 766,610,108.19

Note 12 : Deferred Credits This account consist of :


Account Title Deferred Real Property Tax Income Deferred Special Education Tax Income Other Deferred Credits Total GF

SEF

TF

CY 2012 415,919,177.02

PY 2011 480,095,775.09 408,754,935.44 520,725.43 889,371,435.96

415,919,177.02 350,144,333.12 441,584.05 416,360,761.07 7,614.00 350,151,947.12 97,400.00 97,400.00

350,144,333.12 546,598.05 766,610,108.19

Total amount of P 766,610,108.19 representing Total Deferred Credits under the General Fund Account, Special Education Fund and Trust Fund with an amount of P416,360,761.07, P350,151,947.12 and P97,400.00, respectively . Other Deferred Credits in the amount of P546,598.05 included a portion of Real Property Tax credits in the amount of P430,209.85 under the General Fund Account. Government Equity P 2,751,825,297.93

Note 13:
Composition :

Account Title Government Equity, Beg. Add: Retained Operating Surplus Prior Year's Adjustments Deduct: Public Infrastructures Prior Year's Adjustments Government Equity, End

GF 2,381,861,608.37 129,671,975.43 (12,659,050.76) 6,756,401.14 8,628,762.00 2,483,489,369.90

SEF 200,982,074.59 9,083,057.80 580,717.20

TF 56,880,784.60

CY 2012 2,639,724,467.56 138,755,033.23

PY 2011 2,365,710,745.84 290,216,706.22 14,206,237.68 (19,274,710.97) (11,134,511.21) 2,639,724,467.56

809,293.84

(11,269,039.72) 6,756,401.14 8,628,762.00 2,751,825,297.93

210,645,849.59

57,690,078.44

20

Total amount of government equity as of December 31, 2012 and December 31, 2011, P2,751,825,297.93 and P2,639,724,467.56, respectively, a difference of P112,100,830.37. A good number of completed public infrastructure projects and agency assets as of December 31, 2012 had been transferred to Registry of Public Infra in the amount of P6,756,401.14. Itemizing some Property, Plant and Equipment including public infrastructures from the lumpsum amount are still on progress. Equity set aside to finance capital projects with appropriations provided in the current year and previous years. Prior-Year adjustments included those transactions affecting the nominal accounts and other adjustments which increase or decrease the Retained Operating Surplus account, such as adjustments of excess revenue recorded in prior years; payments of unrecorded expenses of prior years such as depreciation, liquidations of prior year expenses, etc.

Note 14: Income P 1,124,252,002.84

Account Title Local Taxes Internal Revenue Allotment Permits and Licenses Service Income Business Income Other Income Total

GF 171,206,558.76 732,393,920.00 8,017,002.38 16,108,122.04 98,749,478.64 30,893,568.99 1,057,368,650.81

SEF 66,219,392.94

TF

CY 2012 237,425,951.70 732,393,920.00 8,017,002.38 16,108,122.04 98,749,478.64

PY 2011 231,642,149.73 853,673,770.00 8,167,651.62 16,985,799.03 90,174,625.70 31,951,729.05 1,232,595,725.13

663,959.09 66,883,352.03 -

31,557,528.08 1,124,252,002.84

Total Operating Income for General Fund and Special Education Fund, as of December 31, 2012 and as of December 31, 2011 amounted to amounted to P1,124,252,002.84 and P1,232,595,725.13, respectively, showing a decreased by more or less 50%. Under the General Fund Account, total Share from National Wealth as of December 31, 2012 amounted to P21,058,502.90. Included in this year's share was the P 5,394,978.39 uncollected portion of year 2011, while the Fourth Quarter, 2012 share was not yet collected.

21

Share from IRA, for the year 2012, amounted to only P732,393,920.00 as compared to year 2011, which was P853,673,770.00, with a rapid decreased of P121,279,850.00. Share from Economic Zone as of December 31, 2012, amounted to P3,744,896.99, a portion of which included the fourth quarter, 2011 share of P 3,236,566.00. While the fourth quarter, 2012 share, was not yet collected . Total Interest Income for the year ended December 31, 2012 and as of December 31, 2011, for both GF and SEF amounted to P5,433,907.11 and P 5,443,666.31 , respectively.

Note 15: Expenses P 958,659,309.43

Account Title Personal Expenses Maintenance & Other Operating Expenses Financial Charges Total

GF 471,184,473.71 387,919,088.24 42,002,453.25 901,106,015.20

SEF 50,529,226.39 7,024,067.84

TF

CY 2012 521,713,700.10 394,943,156.08 42,002,453.25

PY 2011 490,794,856.47 394,069,044.29 30,643,124.10 915,507,024.86

57,553,294.23

958,659,309.43

Total Expenses as of December 31, 2012, amounted to P958,659,309.43, Comprising the General Fund and Special Education Fund, amounting to P901,106,015.20 and P57,553,294.23, respectively.

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Part II - FINDINGS AND RECOMMENDATIONS


A. Financial and Compliance Audit

1. Physical Count of Property, Plant & Equipment The financial report of the City government showed Property, Plant and Equipment (PPE) accounts with book value of P 2,419,907,918.52. The amount, consisting of movable properties issued to the various city department offices of P609,251,454.10 and immovable properties of P1,810,656,464.42, could not however, be validated because the physical inventory report which could be our basis to match the properties by classification and their corresponding amounts was not submitted to the Commission (COA) as required under Section 122 of Presidential Decree (PD) No. 1445. Section 122(1) of PD 1445, states that Whenever deemed necessary in the exigencies of the service, the Commission may under regulations issued by it require the agency heads, chief accountants, budget officers, cashiers, disbursing officers, administrative or personnel officers, and other responsible officials of the various agencies to submit trial balances, physical inventory reports, current plantilla of personnel, and such other reports as may be necessary for the exercise of its functions (Underlining ours). Relative thereto, the Commission has issued COA Circular No. 2002-003 dated June 20, 2002, re- prescribing the Manual on the New Government Accounting System (Manual Version) for Use in Local Government Units. Under Section 124 thereof, it states Inventory of Supplies or Property x x x x. Physical count of property, plant and equipment by type shall be made annually and reported on the Report on 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. Per records of our office, the RPCPPE starting from Calendar Years (CYs) 2010, 2011 and 2012 were not submitted, thus the book value and existence of the (PPE) in the amount of P 2,419,907,918.52 as reported in the Financial Statements of all funds during those periods could not be validated. The breakdown by Funds are shown below: Fund General Fund Special Education Fund Trust Fund Total Movable Immovable Total Amount Properties Properties P577,846,710.94 P1,621,479,160.86 P2,199,325,871.80 23,217,217.04 8,187,526.12 144,787,239.77 44,390,063.79 168,004,456.81 52,577,589.91

P609,251,454.10 P1,810,656,464.42 P2,419,907,918.52

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The rationale behind the need for compliance of the requirement is to ascertain the correctness of the property records versus actual items on hand and their corresponding values and ensure smooth transfer of accountability whenever there is probable or possible change of local chief of executive or department/office head due to retirement, re-assignment, resignation, transfer, death or expiration of term of office. It has also underlying purposes, such as to reconcile with accounting records, determine the obsolescence and deterioration due to wear and tear, identify the official/employee responsible in case of loss due to theft, fire or other casualty, to segregate unserviceable from serviceable, to transfer to other assets fully depreciated PPE but still usable, to drop from the RPCPEE unserviceable PPE which are found beyond economic repair and/ or the cost of the repair exceeds the limit of 30% of the acquisition cost of brand new of the same kind of PPE, to identify city properties which are recorded at the barangay government; to reclassify small value items recorded as PPE to inventory accounts and to examine the ownership and authenticity of the Certificate of Land Title (CLT), among others. The issuance of the equipment to officers and employees is provided in Section 492 of the Government Accounting and Auditing Manual (GAAM), which must be strictly followed, thus: Equipment issued by the Pro perty Officer for official use of officials and employees shall be covered by an Acknowledgement Receipt for Equipment (ARE) which shall be renewed every January of the third year after issue. MRs not renewed after three years shall not be considered in making physical count of the equipment. Corollary to this, persons primarily accountable for government property assigned or issued to his/her department/office is lodged to the department/office head while persons having custody of government property under the accountability of the department/office head is immediately accountable to such officer (Section 375(a) of the Local Government Code or the Code for brevity). Thus, department/office head primarily accountable for government property may require any person in possession of the property or having custody and control thereof under him to keep such records and make reports as may be necessary for his own information and protection (Section 375 (b) of the Code). We have recommended the following: i. Create an Inventory Committee to conduct the physical count of the properties of the City government (All Funds) including acquired and donated land. After which, the Committee should come up with the Report on the Physical Count of Property, Plant and Equipment (RPCPPE) by type to be submitted to the City Mayors office copy furnished the City Auditors Office not later than May 31, 2013. To ensure the success of the Committee, all department/office head should be required to conduct its own Physical Count of all the 24

ii.

properties in their respective department/office immediately based on the signed MRs and AREs on file at their office and to submit the RPCPPE and IIRUP, as applicable, and likewise, to prepare separate report for loss of government property to the Committee copy furnished the City Auditors Office. iii. For the physical count of breeding stocks/animals, the City Veterinarian and the City Agriculturist should be recommended as members of the Committee.

2. Casuals, JO and Contractual workers The city treasury fund was depleted by P68M as of September, 2012 for incurring wages of hired casuals, job order workers and contractual workers numbering about 2,525, which some of them are not necessary and their assign job can be performed by a regular employees or dispensed with without loss of life or property or may not cause embarrassment to the city government. The plantilla position of the various department/office for Calendar Year (CY) 2012 disclosed that 347 positions are unfilled since CYs 2010 , 10 of which are department/assistant department head position. The details are shown below: Departments/Offices City Mayors Office SP-Secretariat City Administrators Office City Human Resource Management Office City Planning and Development Coordinator Office City Civil Registrars Office City General Services Office City Budget Office City Accountant Office City Treasurers Office City Assessors Office City Legal Office City Health Office City Social Welfare & Development Office City Agriculturist Office City Veterinarian City Environment Management Office City Cooperative Development & Livelihood Office City Engineers Office Gregorio T Lluch Memorial Hospital Iligan City Waterworks System 25 No. of unfilled/ vacant positions 13 12 30 13 5 7 10 5 8 26 13 6 28 26 10 2 21 3 42 38 21

Departments/Offices Economic Enterprises Development and Management Office Total

No. of unfilled/ vacant positions 8 347

Data provided by the City Human Resource Management Office disclosed that as of December 2012, an average of 2,525 casuals, job order workers and contractual workers were hired and distributed to the 22 departments/offices of the city government. The breakdown are as follows: No. of casuals, job order workers & contractual worker 18 424 16 7 1 38 17 156 27 22 129 10 4 1,116 2 5 34 47 7 217 66 162 2,525

Department/Office City Accountant City Administrator City Agriculturist City Assessor City Budget Office City Civil Registrar City Cooperative Development & Livelihood City Engineer City Environment and Management City General Services City Health City Human Resources Management City Legal City Mayors City Planning & Development City Sangguniang Panlungsod City Social Welfare & Development CityTreasurers Office City Veterinarians Office EEDMO Gregorio T. Lluch Memorial Hospital City Waterworks Total

Had the city government filled up the vacant positions, the number of hired casuals could have not been as large as shown in the above table. Casuals are being hired as a filler to vacant positions, no employee-employer relationship, cost of services are lesser, some are hardworking and their work can be relied by the department/office concerned, perhaps some are accommodated assigned in barangays and other national offices, holders of regular item such those in the garbage collection do not assume full

26

responsibility and others to perform job which the department/office have no regular employees to undertake the task. A random head count was conducted on eight out of 22 departments/offices on December, 2012. We found that some of these hired casuals, etc., are not necessary, for instance in the BAC, TORU & Cashiers Office, etc. There was no restraint on the hiring as most of the offices have excessive number of them as shown in the foregoing tables and perform the works of regular employees. Evaluation of the accomplishment report submitted by the casuals, job order workers, and contractual workers reveal the following: Common accomplishments includes preparation of application of leave, travel documents and liquidation of travels of regular employees, preparation of PRs, POs, APPs, drivers trip tickets, process payrolls of casuals, cleans the office, photocopying of official documents, preparation of DVs for gasoline, cash advance for travel, payroll for scholarship encoding and printing of data and report, dissemination of notices of meetings, recording incoming and out-going communications, act as a driver, act as EMCEE for training program and etc. Accomplishments beyond the scope of the casuals/job order workers are reconciliation & posting of leave application, updated leave balances & posting of under times, issuance of official receipts, confiscation of weighing scales; confiscation of tarpaulin without and expired permit, inspection of business establishment with or without business permit, act as custodian of office supplies, act as collector of market fees, comfort rooms, terminal fees, police clearance, issuance of community tax receipt, etc. Other accomplishments such as garbage collection and disposal, maintenance of city plaza and parks, clean and green of the city hall premises where regular employees are appointed was augmented by the hired job order workers.

The accomplishment report could not be gauge with the statement of duties and responsibilities of the said casuals because department/office head have not submitted the same including the brief description of the function of department/office as required by the Audit Team Leader except the City Legal Office. The internalization of the statement of duties and functions could monitor the accomplishment per assigned job, avoid duplication of assignment and review the work to avoid repetition of work. We also observed some offices perform the functions of other offices, for instance calibration and confiscation of weighing scales are functions of the market supervisor not of the city license functions; collections of taxes, fees and repayment of loan is a treasury functions not of the city license and cooperative development & livelihood office and cannot be delegated to casuals, etc. and preparation of SAOB belongs to the budget office not the accountant office.

27

Considering the number of hired casuals, etc, on monthly/yearly the payment of their wages become a perennial problem of the city government because of insufficiency or lack of appropriations. For calendar year 2012, the Annual Budget for payment of wages of casuals, etc., are shown in the preceding table, as follows:

Office/ PPA City Mayors Office- 1011 1991 6541 Sangguniang Panlungsod SP 1021 SP 1022 City Administrators Office 1031 City Environment Management Office-8731 City Engineers Office 6542 GTLMH 4421 EEDMO 8811 8821 8821-1 Total

705

795 10,000,000

796 10,000,000

797

Total 20,000,000 100,000 200,000 19,214,699 3,800,000

100,000 200,000 3,214,669 8,000,000 3,800,000 8,000,000

2,000,000 5,000.000 200,000 7,108,436 3,000,000

2,000,000 5,000,000 200,000 7,108,436 7,371,002 1,800,000 1,200,000 67,994,107

13,423,105

4,371,002 1,800,000 1,200,000 34,571,002

18,000,000

2,000,000

As of September 30, 2012, the city treasury have paid the amount of P67,876,495.52 for the wages of the 2,525 casuals, job order workers and contractual workers. The details of the expenses are shown below: Object of Expenditures Personal Services General Services Janitorial Services Security Services Total Account Code 705 795 796 797 Amount P48,487,363.29 11,949,438.90 7,020,420.70 419,272.63 P67,876,495.52

The difference between the actual expenditures and appropriation for personal services (705) was due to the augmentation of fund from savings in the unfilled position of the various city departments/offices pursuant to Section 336, RA No. 7160. Augmentation of fund became the last recourse in case of insufficiency of fund to cover the expenses for services already rendered. All these services can be dispensed with without loss to life or property or it may not cause embarrassment to the city government. Thus, the payment of their wages for 28

services rendered can be utilized or reprogrammed to tangible infrastructure projects beneficial to the city government and its constituents and/or it can be appropriated to repay its outstanding loan. We have recommended the following corrective measures to mitigate the problems on the rising number of casuals, etc and the source of fund to pay their wages, to wit: i. Fill up the vacant positions in the offices of the city accountant, city treasurer, GTLMH, city health office, city social welfare & development office and EEDMO. Mobilize regular personnel appointed for garbage collections and disposals, city plaza and parks and city hall premises to replace the casuals or job order workers or contractual workers presently assigned thereat; Devise a policy and internal control in the hiring of job orders such as but not limited to requiring the description of duties and responsibilities; recommendation of the department/office head availing the services of a job order and approval of the local chief executive;

ii.

iii.

3. Fuel & Oil Inventory and Consumption Fuel and Oil Inventory in the amount of P822,073.41 remained dormant for more than three years. The existence of the account is doubtful as the city government has no fuel depot. The lack of sound control process also resulted to doubtfulness and uneconomical use of gasoline, fuel and lubricants. The balance sheet of the city government showed the account Fuel and Oil Inventory in the amount of P822,073.41. Review of the balance sheet showed that the same amount has been forwarded for the last three years and that no information was gathered that a fuel depot is owned by the city government for its storage, raising doubts as to the veracity and existence of the account. The objective of sound internal control system is for management to achieve efficiency, economy and effectiveness of its operations. It makes possible the prevention and early detection of fraud, waste and errors especially in reporting. As expected, reports have to be prompt, accurate and complete. Reports losses its value and usefulness especially if tainted with inaccuracies and errors. As provided in the manual on fuel consumption, payments and utilization of gasoline, fuel and lubricants shall be supported by the following documents:

29

Drivers trip tickets duly accomplished and approved and total distance traveled in kilometers with odometer reading indicated in the trip tickets. The beginning liters before the trip shall be added to liters purchased during the trip, deducted with the liters used during the trip, after which the ending liters will be reported and shall become the beginning liters for the next authorized travel. The approved trip ticket shall also be signed by the driver and authorized passenger/s of the vehicle.

The analysis of the monthly fuel consumption reports from January 2012 of 17 motor vehicles assigned to CMO-Finance, disclosed the following: Trip tickets attached to support the travels made were not properly filled up and accomplished, as to: Signature of Driver and Passengers- the driver signed as passenger as well only to show the driver was alone while moving around the city without . In some instances, the passengers name is not written on the drivers trip ticket. Speedometer/odometer readings were not also shown to support liters used for each trip, thus there is an excessive consumption of gasoline and diesel. The drivers have a fixed fuel consumption of 10 kilometers per liter regardless of the classification of motor vehicle, model, and either old or new which render the report unreliable. The CMO-Finance has so many pad of requisition slip or withdrawal slip being use and it is not issued in a chronological order. Sometimes, the approving official of the drivers trip ticket and requisition slip is not the same person. The drivers trip ticket has no control mechanism, each department/office has their own without serial number. The original copy of the drivers trip ticket together with the monthly report of fuel consumption for each vehicle was not submitted to the Office of the City Auditor a clear deviation from the

The absence of proper monitoring, review in the reporting process resulted to deficiencies as stated in the foregoing. The inaccuracies and erroneous computations finally resulted to doubtfulness of the fuel consumption reports and malpractices will not be corrected and detected if deficiencies will be allowed to continue. We have recommended the following: i. Require the Accountant to determine how the inventory account was recorded identify the supplier/gas station, reconcile/trace and retrieve 30

documents to determine possibility of non-recording issuances/usages, possible erroneous entry or otherwise; ii.

of

The drivers trip ticket should be serially numbered. In this case the City General Services Office/ shall provide or make available to all department/office the drivers trip ticket with control number or serial number; No motor vehicle should be allowed to depart from the office without the drivers trip ticket duly approved by the department/office head or the Assistant department head or the officer in-charge, in the absence of the former. Employees using the motor vehicle during office hours should support copy of their locator slip or pass-out slip duly approved by the department/office head or his authorized representative stating therein the purpose and place to be visited in the drivers trip ticket and must sign the driver/s trip ticket in the authorized passenger(s); All requisition slip or withdrawal slip should be issued in chronological sequence or consecutively duly sign by the approving official on the drivers trip ticket or his authorized representative; Install speedometer/odometer in all motor vehicles to replace dilapidated one. Show odometer reading during the beginning or end of the official travel/trip in the drivers trip ticket to determine the actual fuel consumed during the travel; All motor vehicle shall be parked/ kept in the garage or at the office. The practice of allowing the drivers particularly casuals/job order worker to bring the motor vehicle in their residence is strictly prohibited. Department/office head is reminded of their responsibility and accountability for all government properties;

iii.

iv.

v.

vi.

vii. Fetching of official/employee from residence to office and vice versa including the use thereof of the members of the family of the official/employee and drivers even if they are ridi ng with such official/ employee /driver is strictly prohibited; and viii. Within 10 days from the end of the month, the driver through their department/office head shall submit the monthly fuel consumption report together with the original copy of the drivers trip ticket to the office of the City Auditor for audit purpose.

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4. Official Marking of Motor Vehicles Some government motor vehicles of the City were not marked For Official Use Only, while the necessity of issuing more than one motor vehicle to a city department/office was not evaluated, and further, city officials whose department/office were assigned with motor vehicle/s still collect transportation allowance, thus, defeating the regulations on the proper use of government vehicles and entitlement of transportation allowance. As of the physical count of Property Plant and Equipment on June 30, 2010, the City Government has 168 motor vehicles and 246 motorcycles. These motor vehicles and motorcycles were assigned to 26 departments/offices serving the City government including four national government offices. The quantity had been increased as the city government have acquired new motor vehicles and motorcycles in Calendar Years 2011 and 2012. The city government has no garages to house these equipments. The government had regulated the use of government motor vehicles, some of which are stated hereunder, as follows: 1. 2. 3. 4. 5. Use of Drivers Trip Ticket; Marking For Official Use Only; Use for Official Purpose; Use of Government Plate; and Keeping in Government Garages.

In a random inspection conducted on January 7, 2013, 21 of these motor vehicles have no marking For Official Use Only especially those newly acquired. These motor vehicles bear government plate, except one for registration as follows: 1) SEB 454; 2) SJE 873; 3) SJJ 593: 4) SEB 526; 5) SHJ 289; 6) SDX 677; 7) SGT 750; 8) SJJ 845; 9) SEB 577; 10) SHJ 314: 11) SHJ 186; 12) SHJ 215; 13) SHU 297; 14) SFM 857: 15) SKP 476; and 16) Temp Plate 1036 As-741; 17) sSJE 903; 18) SKH 710; 19) SHM 583; 20) SCC 970; 21) SKE 969. The regulations states that: All motor vehicles owned by the x x x x x x and all local government units x x x x x x, except those used by the officials, as mentioned in Section 9, P.D. 733, should be plainly marked: FOR OFFICAL USE ONLY (3 INCHES) under which should be written the corresponding name of the x x x x x provincial city, municipality, or other local government unit operating or using the name. The marked should appear on each side of the motor vehicle. When there is no sufficient space on each side, the same should appear at the back and on the front just below the windshield of the motor vehicle.

32

The Audit Team Leader have not been remised of informing or reminding the City General Services Office of the government regulations on marking of motor vehicles FOR OFFCIAL USE ONLY as shown by our letter dated June 8, 2011. The observation further disclosed some of these were used to fetch the official and/or employee from home to office and vice versa and in some instances private individuals are seen as passenger except only during the declaration of state of calamity. The practice runs counter to the government regulations that motor vehicles must be use for public purpose as stated below: Government motor vehicles should be used strictly and exclusively for official business. In other words, the use thereof for private social functions such as receptions, balls, theaters, and for other personal purposes is absolutely prohibited. The use of government transportation by the spouses, children, relatives, friends, etc. of the officials entitled thereto is included in the prohibition even if they are in the company of said officials. Unless specifically authorized by the Office of the President, government vehicles shall not be used for fetching officials or employees from home to office and vice versa, except those local government officials mentioned in Section 4 of Executive Order No. 31, Series of 1954, because of the nature of their duties and responsibilities and their official standing in their communities, as follows: provincial governors, provincial treasurers, provincial auditors, division superintendents of schools, district health officers, district engineers, and others of equal rank. There is also an iota of doubt whether the said motor vehicles moving around the city streets use drivers trip ticket upon moving out from the office. The government regulations requires that the use of government vehicles by the bureaus and offices enumerated under Section 12 of Presidential Decree No. 733 for the purpose herein indicated shall be authorized only through the issuance of each trip ticket, duly signed by the Administrative Officer of the bureau, office, or entity concerned in Form A, Drivers Trip Ticket. More so, the city government does not have a garage to keep their own motor vehicles when not in use, thus, most of these motor vehicle was brought by the driver in their home or at the city officials residence. The city government also maintains 246 motorcycles issued to the various city department offices most of these have no proper marking also and some do not bear RP (government) plate. Relative thereto, pursuant to COA Circular No. 75-6, as amended, directed the Auditors (now the Audit Team Leaders) to disallow in audit expenses in connection with the operation and use of government vehicles, unless the vehicles involved have been properly marked with the words, FOR OFFICIAL USE ONLY, etc., in accordance with the regulations, the RP plate installed and the prescribed drivers trip ticket duly accomplished. 33

Other observation disclosed that most of the city departments/offices have been assigned or issued with more than one (1) motor vehicle. Also, most of the city department/ office head where his/her office was assigned or issued with motor vehicle collect transportation allowance. Relative thereto, quoted hereunder is the pertinent portion of the Supreme Court decision in the case of Aida Domingo vs. Commission on Audit, G.R. No. 112371: As correctly pointed out by the Solicitor General, there are two instances when transportation allowance cannot be granted to a government official, as when a government official assigned a vehicle and when a government official uses government transportation facilities. It is undeniable that several government vehicles were issued to the Regional Office of DSWD in Region V. That the vehicles thereat were issued not to petitioner herself, as Regional Director, but to the Regional Office itself, is of no moment. What is important and decisive is that such vehicles were intended primarily for the official use of subject office and its officials and employees. As maintained by the Solicitor General, whether or not herein petitioner used the vehicles assigned to her office, is not an issue, as it is undeniable that she could have used the said vehicle whenever she wanted to since it was assigned to her office, The Court, likewise ruled: In the case under consideration, it must be noted that the provisions of law referred to in the General Appropriation Acts of 1988, 1989, 1990 and 1991, utilized the word assigned and not used Websters Dictionary defines the word assign as to transfer (property) to another in trust Had legislative intent been that government officials issued an official vehicle could still collect transportation allowance if they do not actually use subject vehicle, the word use instead of assign should have been employed. Pursuant to COA Circular No. 99-002 dated June 15, 1999, based on the above cited ruling, it is clear that government officials whose offices are issued with motor vehicles are not entitled to transportation allowance whether or not they actually used such vehicles. The COA Circular, further clarified, that the prohibition against collection of transportation allowance when the office is assigned a vehicle shall apply only to the head of the agency, unless the head of the agency specifically assigns a vehicle to particular officials under him or to a particular unit under said official, when there are more than one vehicle assigned to the agency; in which case, the said official who himself or whose unit under him has been assigned a vehicle shall not be entitled to transportation allowance. Furthermore, where the head of the agency does not specifically assign a vehicle to a subordinate official entitled to transportation allowance, or to the unit or division of the said subordinate official, the latter shall be allowed to collect the transportation allowance but shall refund the proportionate amount thereof whenever he avails of a government

34

motor vehicle, corresponding to the number of days he has used the said government vehicle. We have recommended the following remedial measures to correct the deficiencies noted, to wit: i. The City General Services Office shall see to it that all government motor vehicles including heavy equipment, transportation equipment and motorcycles shall be plainly marked FOR OFFICIAL USE ONLY in accordance with the specification provide for and must bear government plate pursuant to COA Circular No. 75-6 dated November 6, 1975. The department/office head concerned to submit justification on providing gasoline & oil to assign or issue motor vehicle to them without marking FOR OFFICIAL USE ONLY when these are strictly prohibited. The City government to designate area as garage to keep their motor vehicle when not in use, after office hours, during Saturdays, Sundays & holidays except when it is use on official purpose. The local finance committee (LFC) shall evaluate the necessity of the request of department/office head for acquisition of new vehicle taking into consideration the function of the department/office. In case, the department/office has more than one (1) assign or issue vehicle the oldest one shall be disposed in accordance with the rules on the matter before it recommends to the Committee on Appropriation. A Task Force Committee shall be created to conduct study or evaluate on the necessity of the number of motor vehicles and motor cycles assign or issue to the department/office. After evaluation, motor vehicles and motorcycles no longer needed by the department/office or custodian thereof shall be disposed of in accordance with the rules and regulations on the matter. On motor cycle, the functions of the office and the statement of duties and responsibilities of the custodian thereof must be taken into consideration. Require the officials whose offices were issued with motor vehicles, whether or not they actually used such vehicles, to refund the RATA, pursuant to COA Circular No. 99-002 dated June 15, 1999.

ii.

iii.

iv.

v.

vi.

35

5. Fund Transfer to NGOs/POs Funds transferred to NGOs/POs amounting to P7,290,263.78 remained unliquidated as of the year-end contrary to Section 5.4 of COA Circular No. 2007-001. Part of the amount equivalent to 44.16% or P3,219,137.45 were misclassified as such and likewise failed to liquidate the financial assistance given. Section 5.4 of COA Circular No. 2007-001 provides that Within sixty (60) days after the completion of the project, the NGO/PO shall submit the final Fund Utilization Report certified by its Accountant and approved by its President/Chairman to the GO, together with the inspection report and certificate of project completion rendered/issued by the GO authorized representative, list of beneficiaries with their acceptance/acknowledgment of the project/funds/goods/services received. The validity of these documents shall be verified by the internal auditor or equivalent official of the GO and shall be the basis of the GO in recording the fund utilization in its books of accounts. These documents shall support the liquidation of funds granted to the NGO/PO. Review of the financial statements disclosed that funds released under the General and Special Education Fund to Non-Government Organizations (NGOs) or Peoples Organization (PO) amounting to P7,290,263.78 remained unliquidated at year-end, as shown below: General Fund Beginning Balance Add: Fund releases Less: Liquidation CY Liquidation PY Balance Special Total Education Fund 6,995,809.51 P 2,000,000.00 P 8,995,809.51 10,891,227.28 100,000.00 10,991,227.28 (7,987,065.33) (7,987,065.33) (4,709,707.68) (4,709,707.68) 5,190,263.78 2,100,000.00 7,290,263.78

Analysis of the account disclosed that out of the amount of P7,290,26378, P4,071,126.33 or 55.84% represents accounts of NGOs/PIOs not liquidated for more than five years, while 44.16% or P3,219,137.45 were accounts of other groups/associations granted with financial assistance by the local government, which were also not liquidated within the prescribed period. This account needs to be reclassified to another account in order to distinguish it from the NGOs/POs account. The accounts consisted of the ABC or Liga ng mga Barangay ILBACO, GSP, BSP, PNRC, United Way Philippines, etc may not qualify as NGO/PO because of the nature of their incorporation and/ or there is a law providing them such financial assistance from the LGUs, subject to availability of fund. Status and reason for non-liquidation of the accounts were not disclosed in the notes to financial statements, details are as follows:

36

Name of POs/NGOs

Amount Unliquidated

Unliquidated for more than Five Years (55.84%)

Amount to be Reclassified (44.16%)

General Fund (GF) Masikap MSME Foundation Inc. Ayuda sa Tao

Development 125,000.00 450,000.00 125,000.00 450,000.00 100,000.00 1,809,000.00 186,126.33 192,250.00 75,000.00 75,000.00 150,506.95 250,000.00 85,000.00 1 64,835.50 200,000.00 100,000.00 400,000.00

Group Circle SEA-Kaunlaran Association of Barangay Council Iligan Investment Promotion Center Iligan Cooperative Development Council Boys Scouts of the Philippines- Iligan City Council Girls Scouts of the Philippines- Iligan City Council Macaraeg-Macapagal Board of Trustees Philippine National Red Cross Cooperative Union of Iligan National Statistics Office JAL Women SEA Kaunlaran-Brgy Del Carmen Chamber of Commerce & Industry Foundation of Iligan Federated Parents-Teachers & Community Association/ Federated Parents-Teachers Association Iligan City League of Brgy Councilmen, Inc. (ILBACO) Bantay ng Bayan Iligan, Inc. Iligan Society of Internists, Inc. Center for Alternative Legal Forum & Justice 37

100,000.00 1,809,000.00 186,126.33 192,250.00 75,000.00 75,000.00 150,506.95 250,000.00 85,000.00

164,835.50 200,000.00 100,000.00 400,000.00

125,000.00 50,000.00 50,000.00

125,000.00

227,545.00 425,000.00 425,000.00

Name of POs/NGOs

Amount Unliquidated

Unliquidated for more than Five Years (55.84%) 1,971,126.33 2,100,000.00 2,100,000.00 4,071,126.33

Amount to be Reclassified (44.16%)

Sub-total Special Education Fund (SEF) Goodwill Mindanao Philippines Sub-total Total (GF & SEF)

1,971,126.33 2,100,000.00 2,100,000.00 7,290,263.78

3,219,137.45

This is a reiteration of CY2010 audit finding, but unfortunately the accounting personnel did not offer any reasons as to the non-liquidation of the fund transferred to NGOs/POs. The absence of any alternative audit procedure to verify the extent of the releases of the fund gives us some doubts such as, the recipients treated the fund as doleout by the LGU; the organization may have been dissolved after receiving the funds; the NGOs/POs were not briefly informed on the requirements of the liquidation of the fund, thus project initiated by NGOs/POs may not have been implemented. We have recommended the following remedial measures to address the deficiencies cited, viz: i. Direct the City Accountant to demand immediate liquidation of fund transferred to NGOs/POs. Render report for those who cannot submit liquidation to the City Mayor and the appropriate committee in the Sangguniang Panlungsod for the adoption of appropriate measures to protect the interest of the city government. To safeguard fund transferred to NGOs/POs. the accountant and the focal person in the implementation of the project should conduct prebriefing seminar on the reporting of the utilization of the fund and in the implementation project before fund releases.

ii.

iii. Strictly follow the guidelines stated under COA Circular NO. 2007-01 dated October 25, 2007 on the grant of government funds to NGOs/POs. iv. Reclassify the accounts of other groups/association.

6. Fund Transfer to City Barangays Despite having an existing unliquidated funds of P25,216,305.78 out of prior year releases, the City still released the sum of P27,387,668.00 for barangay development 38

projects in violation of COA Circular No. 94-013 and the covering Memorandum of Agreement (MOA). The account Due from LGUs (44 city barangays) was a prior year (CY 2010) audit finding which showed a balance of P51,325,833.46. Despite of our audit recommendations, the balance had increased to P81,888,862.75 in CY 2011. We are reiterating same for management evaluation in the implementation of infrastructure projects dubbed as Barangay Development Projects (Projects) at the barangay level through fund transfer to the 44 city barangays and/or recipient barangays. Analysis and review of the account under the General Fund (GF) revealed that the amount of P28,170,660.09 or 34.40% was liquidated in CY2012 out of the prior years balance of P81,888,862.75 which remained outstanding for more than two years. The review further showed that in Calendar Year (CY) 2011, 27 city barangays were given additional fund transfer without requiring them to liquidate the previous years fund transfers. In CY 2012, additional fund transfer of P 27,387,668.00 was released despite of the outstanding balances.

As of December 31, 2012, the accounts showed a balance of P81,105,870.66 as shown hereunder: Beginning Balance, Jan. 1, 2012 Less: Liquidations, CY 2012 Balance Add: Fund Transfer, during the year Balance - December, 2012 P 81,888,862.75 28,170,660.09 53,718,202.66 27,387,668.00 81,105,870.66

P P

The fund transferred was covered by Memorandum of Agreement (MOA) between the SA (city) and IA (barangay). The utilization, liquidations and reporting are provided in the MOA similarly with those stated in COA Circular No. 94-013. The Audit Team sent confirmation letter to the 44 barangays but, only six have replied as of January 25, 2013 and confirmed the balance as shown in the General Ledger of the City Government except for Barangay Digkila-an which has a balance of P12,717.75 instead of P1,769,700.00. It has been observed during the interview process, most of the Barangay Treasurers (BT) was not able to forward the copy of the RCI, and the RCD to the City Accountant Office to report the utilization of the fund as basis of the latter office to draw the journal voucher to take up the reports. The practice runs contrary to COA Circular No. 94-013 dated December 14, 1994, Rules and Regulations in the Grant, Utilization and Liquidation of funds Transferred to Implementing Agencies, which clearly provides that: 39

4.6 Within ten (10) days after the end of each month/end of the agreed period for the Project, the Implementing Agency (IA) shall submit the Report of Checks Issued (RCI) and the Report of Disbursements (RCD) to report the utilization of the funds. Only actual project expenses shall be reported. The reports shall be approved by the Head of the IA. 4.7 The Source Agency (SA) shall draw a Journal Voucher to take up the reports. The amounts to take up the liquidation per RCI shall be net the cash advances granted by the IA to its accountable officers in accordance with the Commission on Audit Circular No. 90-331 dated May 3, 1990. Aside from the observed practice, the projects was under the supervision of the Office of the ABC President which have their own set of technical officials/employees responsible for the preparation of program of works (POW), plans and specifications and detailed engineering estimates and yet they do not rendered report to the SA as to the status of the projects implementation. As a result, non-reporting of full and partial utilization of fund transferred to the SA the account could not be properly adjusted due to absence of documentary evidence such as RCI and ROD to support the recording and the status of implementation of the project could not be validated due to no terminal report rendered by the Office of the ABC President. We have recommended the following remedial measures to ensure the full liquidations of fund transfer to the city barangays and the utilization thereof is in accordance with the purpose of the fund: i. Require the barangays the submission of their statement of utilization/expenditures of the previous funds received as a prerequisite to the next release pursuant to the provisions of COA Circular N0. 94-013 and the MOA. The City Accountant should issue demand letters to the Punong Barangay/Barangay Treasurer for the submission of the required report to liquidate the fund transfer. The City Accountants representative and the barangay record keepers should sit together quarterly for the reconciliation of their accounts to identify the reconciling items and to record immediately the adjustments concluded. The Office of the ABC President shall provide the SA the status of the projects implementation for the latter to validate the completion of the projects and determine whether the IA implement the projects in accordance with the MOA. 40

ii.

iii.

iv.

7. Barangay Development Projects Barangay Development Projects amounting to P2,826,900 which was implemented through Executive Order and Memorandum of Agreement (MOA) lacks the authority from the Sangguniang Panglunsod as required under Section 22(c) of RA No. 7160. The General Fund Annual Budget for CY 2012 provides appropriations in the amount of P2,826,900 for Barangay Development Projects (Projects), Account Code 8919-250-130 under the Miscellaneous Economic Services-Others, (101-8000 for Capital Outlay. The appropriated amount was part of the 20% Development Fund in the amount of P146,468,982. The Projects was implemented by virtue of Executive Order of the local chief executive and MOA entered into by the City Mayor, in behalf of the city government and the recipient city barangay. The projects are as follows: Project Title Propose Construction of Multi-Purpose Building Proposed Improvement of the Riprap Canal at Purok I-A Proposed Construction of Multi -Purpose Hall (Phase I Proposed Roads Concreting at Zone 6A & 7 Total Recipient Barangay Abuno Del Carmen Sta. Filomena Sto. Rosario Amount P 1,307,000.00 105,000.00 468,400.00 946,500.00 P 2,826,900.00

The utilization and implementation of the projects, although these are embodied in the Appropriation Ordinance No. 12-5781-03 enacted on January 12, 2012, requires authorization from the Sanggunian Panlungsod as provided in Section 22 (c), Republic Act No. 7160, the Local Government Code of 1991, read as follows: Unless provided in this Code, no contract may be entered into by the local chief executive in behalf of the local government unit without prior authorization by the sanggunian concerned. A legible copy of such contract shall be posted at a conspicuous place in the provincial capitol or the city, municipal or barangay hall. The appropriation ordinance describe the projects in generic terms such as Barangay Development Projects. It did not state which of the 44 city barangays is recipient, the amount and the name of projects to be funded therefrom.

41

In support to this requirement, excerpts from the ruling of the Supreme Court in the case of Hon. Gabriel Luis Quisumbing, et.al., vs. Hon. Gwendolyn F. Garcia, et.al, G.R. No. 175527 promulgated on 08 December 2008. The question of whether a sanggunian authorization separate from the appropriation ordinance is required should be resolved depending on the particular circumstances of the case. Resort to the appropriation ordinance is necessary in order to determine if there is a provision therein which specifically covers the expenses to be incurred or the contract to be entered into. Should the appropriation ordinance, for instance, already contain in such that all that the local chief executive needs to do is to execute the contract, no further authorization is required, the appropriation ordinance already being sufficient. On the other hand, should the appropriation ordinance describe the project in generic terms such as infrastructure project, inter -municipal waterworks, drainage and sewerage flood control, and irrigation system projects, reclamation projects, or roads and bridges there is obvious need for a covering contract for every specific project that in turn requires approval by the sanggunian. Specific sanggunian approval may also be required for the purchase of goods and services which are neither specified in the appropriation ordinance nor encompassed within the regular personal services and maintenance operating expenses. In conjunction to the Supreme Court ruling, the Commission (COA) issued COA Circular No. 2010-014 dated April 22, 2010, directed the COA Officials including the Audit Team Leader to disallow in audit expenses or contract entered into by the local chief executive not in accordance with the framework laid out in the ruling of the Supreme Court. We have recommended the following: i. The local chief executive shall strictly observe the requirement under Section 22 (c) of the Local Government Code (RA No. 7160) before entering contract specifically when he appropriation ordinance describe the project in the generic terms or the purchase of goods and services not specified in the appropriation ordinance or part of the regular personal services and maintenance and other operating expenses. Submit the approved SP Resolution for entering MOA with the individual barangay official of the recipient barangay. The city accountant to see to it that contract or MOA entered into by the local chief executive in behalf of the city government is supported with SP Resolution approving the contract or MOA.

ii.

iii.

42

8. Grant of Instructional Materials Allowance to Nationally Paid Secondary and Elementary School Teachers The grant of instructional materials to nationally paid secondary and elementary school teachers in the amount of P4,442,278.94 from the Special Education Fund was contrary to RA No. 7160. The Annual School Board Budget (ASBB) for Calendar Year 2012 provides Instructional Materials Allowances at P2,000.00 (P500 @ 4 months) per nationally paid Elementary and Secondary Teachers or a total appropriations of P4,452,000.00. Section 100 (c ) of RA No. 7160, provides that the ASBB shall give priority to the following: 1. Construction, repair, and maintenance of school buildings and other facilities of public elementary and secondary schools; 2. Establishment and maintenance of extension classes where necessary; and 3. Sports activities at the division, district, municipal, and barangay level. Also, Section 272, RA 7160 provides that, the proceeds from the additional one percent (1%) tax on real property accruing to the SEF shall automatically released to the LSB: x x x, that the proceeds shall be allocated for the operation maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the LSB. Parallel to this Act, the DECS (now DepEd), DBM and DILG issued Joint Circular No. 01 Series of 1998, dated April 14, 1998, implementing the above cited proviso, quoting hereunder, particularly captioned No. 4, read as follows: The Local School Boards shall give priority to the following expenses chargeable against Special Education Fund (SEF). Operation and Maintenance of public schools, including organization of extension, non-formal, remedial and summer classes as well as payment of existing allowances of teachers granted by local government units chargeable against the SEF as of December 1997, provided that any additional allowances that may be granted to teachers by LGUs shall be charged to the general fund of LGUs subject to existing budgeting rules and regulations. x x x The review of the Status of Allotment Obligations and Obligations (SAOB) disclosed that an obligation was incurred under Public Education-Elementary Education and Secondary Education in the amount of P 2,948,000 and P1,494,789.94, respectively or a total amount of P4,442,278.94 as an instructional materials allowance to nationally paid elementary and secondary teachers. Obviously, the claim was made on December 12, 2012. 43

The grant of said allowances from the ASBB is contrary to the above cited proviso of the cited law and the Joint Circular of DECS, DBM and DILG. It could have been prudent had the appropriation was sourced from the General Fund. Along this line, the Commission (COA) has ruled that SEF cannot be legally disbursed for the payment of teachers additional monthly allowance. However, the local government unit is empowered to provide additional allowance and other benefits to public elementary and high school teachers stationed in or assigned at the City/Municipality when its finances allow, as contained in the following decisions: COA Decision No. 96-287 dated June 4, 1996, denying the request of then Manila City Mayor Alfredo Lim for authority to use the SEF for the grant of monthly allowances to teachers assigned in that City, however, the local government unit (LGU) has the power to appropriate such amounts from the General Fund. COA Decision No. 96-651 dated November 21, 1996 granting a compensatory allowance of P1,000.00 per month to teaching and non teaching personnel of Mandaue City, but this shall be taken from the General fund and not from the Special Education Fund. Thus, had this appropriation was properly allocated to construction of school buildings, the shortage of classrooms could have been reduced.

We have recommended the remedial measures stated hereunder to ensure that the SEF shall be appropriated only as provided in RA No. 7160. i. The Local School Board shall stop appropriating additional allowance to nationally paid elementary and secondary public school teachers assigned or stationed in the City; and Although its not mandatory, the City Schools Division Superintendent may ask or request from the city government to provide additional allowances to elementary and secondary public school teachers assigned or stationed in the City.

ii.

9. Supplemental Feeding Program-Payment to Contractor Contractor for the delivery of foodstuff for the first 30 days supplemental feeding program under the early childhood care & development was paid in full of the contract price of P1,998,155.00 despite no complete delivery was made by the contractor as of the date of payment contrary to Section 88, P.D. 1445.

44

A review of the transaction for the procurement of foodstuff for the first batch of the supplemental feeding program under the early child development (age 3 to 4) disclosed the following: 1. Public bidding was conducted, only one bidder submitted the bid documents, passed in the technical and financial evaluation, post qualified, declared as single calculated and responsive bid (SCRB). 2. BAC recommended to award the procurement to the contractor and approved by the local chief executive per BAC Resolution No. 101-201 promulgated on May 28, 2012, a Notice of Award was issued and accepted by the proprietor/contractor on May 28, 2012. 3. The contractor after posting the performance bond, a notice to proceed was issued and acknowledged by the proprietor/contractor on June 6, 2012. 4. The contractor was given 10 calendar days to deliver the foodstuff per PO (Purchase Order) dated May 28, 2012. 5. The contractor, evidence by the charge invoice No. 0497 & 0499dated June 6, 2012 (Annex A) have completely delivered the foodstuff (Annex B) and properly acknowledged/received by a representative from the City Social Welfare and Development Office or CSWDO (Annex C). 6. The delivery was inspected by a representative from the City General Services Office (Annex D). 7. The foodstuff was paid on July 6, 2012 per Check No. 315394, in the amount of P1,918,228.80 net of VAT (value added tax). According to the responsible official of CSWDO, the Supplemental Feeding Program started on June 1, 2012 and ends on July 18, 2012 or total of 3O school days. The foodstuff is perishable goods. Delivery of these should be made a day before and/ or three days before the schedule feeding program for day care centers located within city limits or coastal area and hinterland barangays, respectively. Advance and/or complete delivery thereof may rotten or deteriorate faster the condition of the foodstuff and loss its nutrition value thus the objectives of the program to improve the nutritional condition of the pre-schooler (ages 3-4) may not be attained. Payment to contractor shall be made base on the actual delivery of the procured foodstuff or after full or complete delivery. The full payment of the contract cost before July 18, 2012 is contrary to Section 88, P.D. 1445, which states that: x x x. No payment, partial, or final, shall be made on any such contract except upon certification by the head of the agency concerned to the effect that the services or supplies or materials have been rendered or delivered in accordance with the terms of the contract and have been duly inspected and accepted. The acceptance by the representative of the alleged full delivery of the foodstuff and inspection conducted was the proximate cause of the full payment of the contract

45

price. Knowing the fact that the procured and delivered foodstuffs are perishable goods and good for 30 school days feeding program. As a consequence of the acts committed, the contractor was paid in advance for undelivered foodstuff in the amount of P66,051.67 equivalent to 10 days feeding program. We have recommended to management that: i. Delivery of foodstuff for the supplemental feeding program should be made a day before and /or three days before the schedule feeding program for day care centers located within the city limits or coastal areas and hinterland barangays, respectively, to sustain the nutrients of the foodstuff. Payment to contractor should be based on the actual delivery or as a billed by the contractor whichever is appropriate.

ii.

B. 10.

Value for Money Audit Kilos Asenso Support (KAS) Fund- not implemented

Infrastructure projects funded under the Kilos Asenso Support (KAS) Fund in the amount of P6,301,363.00 received by the City Government from the Department of Budget & Management remained intact since CY 2009 was not implemented thus the desire social benefits were not attained. The Kilos Asenso Support (KAS) Fund emanates its legal existence from Republic Act No. 9498 or the FY 2008 General Appropriations Act, as the national government counterpart fund to support the programs and projects of LGUs. Pursuant to this mandate, the Department of Budget & Management (DBM) issued Budget Circular No. 2009-1 dated March 10, 2009 to provide the guidelines in the release and utilization of the KAS Fund. The KAS Fund shall be utilized to sustain development and provide for deficiencies for the following: 1. 2. 3. 4. Construction of farm-to-market roads, small bridges and day care centers; Improvement of potable water; Investment in agro-forestry projects; and Other similar growth enhancing projects designed to uplift the socio-economic standing of LGUs.

46

4.1

Growth enhancing projects refer to those which shall promote employment, education health and housing in the LGUs.

The City Government of Iligan (CGI) received the KAS Fund from the DBM Region X on July 9, 2009 intended for the following projects: 1. Construction of 260.0 linear meters, Purok 5, Mibala, Barangay Tipanoy, Iligan City-P 1,000,000; 2. Construction of 260.0 linear meters, Purok 3, Mibala, Barangay Tipanoy, Iligan City-P 1,000,000; 3. Construction of 150 cm casing Production wheel, Pumping Station, etc., Purok Ansay, Sta Filomen, Iligan City- P3,301,363; and 4. Improvement of Drainage System, Purok 5, Barangay Tipanoy, Iligan City. Also, CGI received from the OP-PSF the amount of P200,000 on March 6, 2008, for the construction one unit two classroom school building for Acmac Elementary School, Barangay Acmac, Iligan City. As of September 30, 2012, the financial records of the CGI disclosed that the KAS Fund and OP-PSF was still intact or the proposed projects were not implemented since then, thus the purpose and the desired social benefits to be derived from were not attained. Inquiry from the City Engineer whether he had prepare the program of work (POW) for those projects disclosed that he was not aware of the released projects from the national government. Also, the Punong Barangay of the recipient barangay was not aware of the existence projects in their respective locality. The DBM guidelines under 4.3, suggest that the sources of the LGUs counterpart fund shall be taken from the appropriation of the 20% of the Internal Revenue Allotment (IRA) for development project. The review of the CY 2012 Annual Investment Program showed no amount appropriated from the 20% development project as LGUs counterpart fund to augment the KAS fund. There was no record to show as to who prepared the details of the project, or if there such, the requester was not aware of the released of the KAS Fund. Thus, there is absence of monitoring and coordination among key departments to give information to the local chief executive of the availability of KAS Fund and the purpose of utilization for the latter to include in his addenda for prioritization in the implementation thereof. We have recommended the following remedial actions for management to give utmost priority in the implementation of the projects, to wit: i. expedite the preparation of the individual program of work and coordinate with the recipient barangay for the clearing operations for the project site; 47

ii.

instruct the local finance committee (LCF) to ensure the allocation of the necessary counterpart fund from the 20% IRA for development projects; the City should strictly abide with the DBM Circular in the utilization and implementation of the projects programmed from the KAS Fund; and in case the projects will not be implemented during the year the CGI shall return the KAS fund to the national government through the National Treasury.

iii.

iv.

11. Supplemental Feeding Program- Nutritional Status The required five days a week supplemental feeding program for 120 days was not implemented thus the expected output to improve the nutritional status of the target children was not sustained. The supplementary feeding Program (SFP) is the provision of food in addition to the regular meals, to currently enrolled day care children as part of the DSWDs contribution to the Early Childhood Care and Development (ECCD) program of the government. For CY 2011 which was adopted for CY 2012, food supplementation will be in a form of hot meals to be served during break/snack time in the morning session or during break/snack time in the afternoon to children in a day care centers five (5) days a week. The parent will manage the feeding program based on a prepared meal cycle using available indigenous food materials. The children will be weighed at the start of the feeding and a monthly weighing thereafter will be done to determine improvement and sustenance in their nutrition status. The target beneficiaries of the program will be the 3-4 year old children and those 5 year old children not catered in the DepEd preschool children but enrolled in the 49,527 day care centers nationwide including Autonomous Region in Muslim Mindanao (ARMM). The program has four (4) objectives, (1) to provide augmentation support for feeding program for children in LGU manage day care centers using indigenous food and/or locally processed foods equivalent to 1/3 of Recommended Energy and Nutrient Intakes (RENIs); (2) to improve knowledge, attitude and practices of children enrolled in day care centers, parents and caregivers through intensified nutrition and health education; (3) to improve and sustain the nutritional status of all the target children; and (4) to ensure that children are accessed to any appropriate health unit regarding their nutrition-related problems, including overweight and at risk- of malnutrition conditions.

48

The program was implemented in partnership with the LGU-Iligan. A Memorandum of Agreement (MOA) was inked between the DSWD Field Office (FO), Region 10 and the city government of Iligan. The program cost per child enrolled in day care centers is P10.00 for viand and P2.50 for rice per feeding session. In CY 2011, The FO released/transfer the fund to the City Government of Iligan (CGI) the amount of P 8,138,400 and P639,325 for the cost of viand and eating & cooking utensils, respectively, for 6,782 children enrolled in 127 day care centers manage by the city government. In CY 2011, the amount of P 4,171,216.86 was incurred leaving unexpended balance of P4,606,508.14. The cost of rice was provided by the FO. Out of the unexpended balance, the amount of P4,559,470 was earmarked for this year feeding program equivalent to 68 days to be reckoned from June 1, 2012 up to October 2, 2012. To complete the target 120 days feeding program, the remaining 52 days was filled-up by the 17 days backlog in CY 2011 due to Typhoon Sendong, continued on May 3 to 31, 2012 and the 35 days (October 3 to December 17, 2012) was provided by the organized parents, volunteers and stakeholders for the viand and NFA for the needed rice. Although the 120 days feeding program was followed, the expected result of the program which is to improve and sustain the nutritional status of the target beneficiaries was not achieved due to the following: 1. The program was planned for four (4) days a week instead of five (5) days a week thus, the implementation period was longer or Seven months. It was told during the interview that every Monday of the week was set for delivery of the foodstuff. 2. Based on the interview, the number of beneficiaries during the actual feeding program exceeded the official list of enrolled children in the day care centers as submitted by the day care workers. The submitted official list was the basis for the release of the fund by the FO. 3. The counterpart of the organized parents, volunteers and other stakeholders was not at par with the duly funded program but only to sustain the 120 days supplementary feeding program. We have recommended the following: i. The implementer agency should adopt the required five (5) days a week supplementary feeding program and prepare separate schedule for supplementary feeding program for day care centers located in the coastal areas and hinterland barangays

49

ii.

To see to it that the delivery period for foodstuff shall be made a day before the schedule feeding program for five (5) days consumption. Day care workers should conduct constant dialogue with the organized parents informing them the objectives of the program and the fund release is limited to the official list submitted to the FO. Account for the excess children from the official list submitted per day care centers and present with the city government for providing the appropriate fund needed as a local counterpart fund to the program.

iii.

iv.

Settlement of Accounts For calendar year 2012, the Audit Team was able to issue total suspensions of P4,623,920.20 on the financial transactions of the City Government which lacks certain requirements that may result in pecuniary loss to the government and total disallowances of P1,996,059.41 for transactions that were deemed illegal, irregular, unnecessary, extravagant or unconscionable in whole or in part. Total settlements amounted to P1,557,161.03 for suspensions and disallowances. The details of suspensions and disallowances and the corresponding settlements for CY 2012 are shown in detail in the following table: Beginning Balance 1,102,342.22 39,084.06 13,654.77 1,155,081.05 Issued in CY 2012 4,623,920.20 1,996,059.41 6,619,979.61 Balance, December 31, 2012 4,400,951.34 1,816,685.09 263.20 6,217,899.63

Audit Action Audit Suspension Audit Disallowance Audit Charges Total

Settlements 1,325,311.08 218,458.38 13,391.57 1,557,161.03

50

Part III-Status of the Implementation of Prior Years Audit Recommendations

Of the 32 prior years audit recommendations, nine were fully implemented, nine were partially implemented and 14 were not implemented.
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT ACTION
Status of Implementatio n (Full, Partial, Ongoing, or Nonimplementatio n)

Reason for Partial/ Nonimplementation

I. For the Year Ended December 31, 2011 A. Value for Money Audit 1. Non-Utilization of Loan The city government had wasted government funds in the amount of P3,126,800.00 as an interest for one on one loan secured with the DBP in the amount of P47.0M at 6% per annum for the nonimplementation of the projects funded out of the proceeds of the loan. Likewise, the amortization of the loan amounting to P75.0M was not included in the annual budget for Calendar Year 2011. Recommendations: We recommend the following remedial course of actions to prevent the recurrence of same in availing credit financing with the a Government Financial Institutions (GFIs) , viz: i. The proponent(s) of the project(s) source from the proceeds of loan should 51
Page 28, AAR CY 2011

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

adequately plan and program the proposal project before negotiating loan with any Government Financial Institution (GFIs). The proposed project should be included in the three (3), five (5) or ten (10) years development plan of the City Government. ii. As soon as the GFIs approved the loan, the proponent shall coordinate with City Engineer, the General Service Office, the LFC and the BAC for the conduct of pre-procurement process to ensure timely implementation of the propose project. iii. Upon release of the loan, the BAC shall award the project to the lowest calculated & responsive bid (LCRB). iv. The local LCF shall review all the secured loans by the city government and provides schedule loan amortization including the projected interest expenses to the City Budget Officer, for inclusion in the Annual

2. Financial assistance for flood victims of Typhoon Sendong

52

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

Financial assistance received in Page checks and cash in the total 30, amount of P363,541,553.22for the AAR flood victims of Typhoon CY 2011 Sendong have remained intact and deposited with the LBP and DBP for the accounts of the City Government of Iligan. Likewise, as of January 31,2012 no disbursements was recorded. We recommend the following remedial measures to ensure accountability, transparency, and enhance efficiency and effectiveness in the proper accounting of the fund, utilization must comply to appropriate law, auditing rules and regulations and the implementation of the identified infrastructure projects will enhance efficiency and effectiveness in order to attain the intended purposes for which the fund was received, viz: i. The City Treasurer to open an account either with the LBP and/or DBP specifically for calamity fund for Typhoon Sendong to ensure transparency and accountability; Not Implemented
The City Treasurer, instead to maintain one account for Typhoon Sendong Victim or the Fund had open one account each at DBP and LBP, both of Iligan Branch.

53

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

ii. The City Treasurer is required to deposit future financial assistance received and caused the transfer of said fund deposited to the LBP and DBP, as validated by the respective head of the bank, to said newly opened account to fast track monitoring, facilitate verification of the account balances and ensures that account debited/credited to this account is exclusively for the account of Typhoon Sendong .

Not Implemented

Due to failure to follow our recommendation in No. i, monitoring and verification of the fund balance could not be ascertained immediately as we have to verify bank statements of two banks. Recording of the disbursements are also posted independently to each bank accounts depending which bank have fund balances. Collections or donations received either through the bank or by the City Treasurer are recorded in the said bank accounts. However, we noted, there were times the cashier committed error in depositing

54

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

checks. For instance, LBP checks were erroneously deposited with the DBP or vice versa. So adjustments have to be made by the City Accounting Office. iii. The Sangguniang Panlunsod shall pass and approve the Special Budget for the utilization of the calamity fund in order the City Mayor can zero in or focus the implementation of identified infrastructure projects aims on the welfare of the flood victims.
SP Resolution was passed to guide the City Accountant Office for the proper charging of the expenditures particularly for the cash donations received for which no specific purpose was stated. However, we noted of several SP Resolutions was passed to modify the original SP
Resolution especially if the amount of the program of expenditures was insufficient.

This is the subject of an anonymous letter addressed to Commissioner Heidi L. Mendoza, a copy which was also sent to the RD Alfredo Reyes. RD Reyes constituted a special audit team under RO X Order No. 2012-X-013 dated 2/22/12. The special audit team has prepared the report; which is currently being
reviewed by the Regional Director.

55

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

iv. To fast track the implementation of the calamity projects/programs, the Budget Office shall immediately release the fund appropriated for the calamity fund projects/programs; The BAC Chairman shall give utmost priority in the time schedule of the conduct of public bidding for the infrastructure projects, the City Accountants Office shall designate accounting personnel to expedite the processing of disbursement vouchers related to calamity funds and the City Engineer to direct other divisions of the City Engineering Office to prepare the plan and specification of the building, the detail engineering estimate, the program of work, the construction materials needed and the Procurement Project Management Plan (PPMP) and the General Service Office to assist the BAC in the conduct of procurement activities. v. The City Accountant shall render progress financial report copy furnished the City Auditor and submit all financial records, such as disbursement vouchers, payrolls, if any, monthly bank reconciliation 56
The financial report prepared monthly/ quarterly by the City Accountant Office reflects the accuracy of Fund received,

Fully Implemented

Fully Implemented

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

i.

statements together with the checks encashed or paid by the bank for post audit and final custody.

utilization and balances by purposes particularly the Shelter Assistance from the DSWD. Ongoing The construction of the Shelter Assistance funded by the DSWD was at a snail pace due to lack of relocation sites. The City Government has no sufficient land to accommodate the more than 5,000 Typhoon Sendong Victims entitled to Shelter Assistance. Fully Implemented

ii. The implementer office (Task Force Committee) shall coordinate with other national government agencies (DSWD & DPWH) to ensure proper implementation of the infrastructure projects and see to it that the utilizations and disbursements of the calamity fund must comply with appropriate law, auditing rules and regulations. Strictly comply the DSWD shelter assistance guidelines and render progress and terminal report to the City Mayor, City Vice Mayor and City Councilors copy furnished the City Auditor and the concern offices;

iii. Related government expenditures incurred by the personnel of the implementing office in connection with the implementation of the calamity fund projects shall be proper charged to the regular budget appropriated for that office;

57

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

The City Mayor and upon request by higher authority or by the concerns Department Secretary shall render final report, copy furnished the Vice Mayor and SP members and the City Auditor.

The City Social Welfare and Development Office or the front office in the monitoring of the well being of the Typhoon Sendong Victims have not yet come up with the Terminal Report.
The City Govt. of Iligan (CGI) is doing all their best effort in acquiring more lots for the Typhoon Sendong Victims. The CGI have identified areas suitable for relocation sites, yet they have no enough fund to acquire said lots. They have already initiated talks with the DSWD and the DBM for the allocation of fund to acquire the lots.

i.

In case the negotiation on the acquisition of the 15.9 has. failed, seek assistance/intervention from the national government for the acquisition of the lot.

58

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

3. Unserviceable Motor vehicles and Motorcycles The absence of physical facilities Page and appropriate measures to 33 govern or to regulate the proper AAR use, care custody, maintenance CY 2011 and reporting on the conditions of the government motor vehicles numbering 465 fleets may result in the loss or breakdown of the same, inevitably results in loss of man-hours and efficiency. Recommendations: We recommend the following remedial measures to ensure that government property are efficiently use, unserviceable property is properly safeguarded prior to the disposal thereof, and reporting accountability must be strictly required for proper care and maintenance: i. The city government shall formulate policy guidelines to regulate for proper observance on the use, care and proper maintenance, custody and reporting accountability of its heavy/office equipment considering the number of government motor vehicles it owns and maintains. Not Implemented
We are not being inform whether there is a draft policy on our suggested recommendation to address proper care, use and maintenance of the motor vehicles of the City Government of Iligan (CGI).

59

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

ii.

The city government shall construct physical facilities to serve as one stop shop such as (1) storage of unserviceable government property to prevent the loss, destruction and rapid deterioration of same,(2) motor poll or garage and (3) repair and maintenance shop of motor vehicles. The CGSO to renew every three (3) years the ARE/MR of all government property, conduct actual inspection on the condition of same and inventory listing of missing accessories;

Not The CGI has not Implem yet seen the ented significant impact of the suggested recommendation

iii.

Not Implemented

Except for the ARE/MR signed by the Outgoing City Auditor and his and those who have retired from the government service, all other AREs/MRs was not renewed every three (3) years. The City General Services should now start the renewal of all AREs/MRs signed by the City Government Employees in view of Changes of LCE after the Mid-term election this coming May 13, 2013.

60

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

iv.

The CGSO shall maintain historical record of each office equipment & other heavy equipment to monitor the efficiency and cost of maintenance as a reference guide in management decision whether to maintain or purchase a new unit. All department office/head with assigned office equipment shall maintain the same record;

Not implemented

The City General Services Office (CGSO) did not give information whether they have implemented the suggested recommendation. We still opine that the suggested recommendation will help management in assessing whether old equipment will be maintained or retired due to (high) cost of maintenance and (reduce) efficiency and replace with a new or brand new. Thus, maintaining of record of all types of equipment including motor vehicles are very significant to every city
department/office.

61

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

v.

The end user or operator/driver thru their Department/office head shall submit written report to the CGSO on how the office equipment became unserviceable together with the Property Return Slip. The CGSO shall prepare the Inspection & Inventory of Unserviceable Property (IIRUP), conduct actual inspection and list down missing accessories, tow and receive the motor vehicles/motorcycles/ other equipments and deposit or store to the designated warehouse.

Not implemented

The CGSO have not sent notice to our office whether they have implemented the suggested recommendation. The recommendation will properly address the habitual practices observed that unserviceable property will be reported or brought to the attention of the Audit Team Leader when all its vital parts are already missing. The submission of written explanation from the driver or the department head concern together with Return Property Slip upon the said property is determine unserviceable due to wear and tear or beyond economic repair to the CGSO is necessary for the latter to prepare a contingency plan to secure the property from wanton pilferage of its vital parts.

62

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

vi. The CGSO shall immediately dispose the unserviceable government property pursuant to Section 79, PD 1445.

While the CGSO have requested from the Audit Team Leader for Technical Assistance to determine the reasonable value of the unserviceable property for purposes of disposal through public auction and after COA Engineer have determined the final assessed value yet CGSO have not informed the Audit Team Leader whether or not they have disposed subject unserviceable property.

Partially implemented

vii. The CGSO shall demand from the end user or operator the replacement or refund of the missing motor vehicles/motorcycles accessories copy-furnished the office of the City Auditor; and

Not Implemented

The CGSO failed to furnish the Audit Team Leader of any demand letter addressed to the concern driver/ employee for missing motor vehicles/motor cycles accessories.or equipment discovered during turnover of unserviceable government motor vehicles or motor cycles.

63

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

viii. Repairs of equipment shall be done or undertaken by a competent mechanic/technician in order to put them in operational order. Prohibit dismantling of the office equipment or other equipment except upon written order of the Department/office head and after a certification of the availability of fund by the City Accountant for the necessary repairs to assures completion of repair and avoid possible loss or misplacement of spare parts.

The CGI has employed mechanic to undertake repair of its motor vehicles in case of minor repair jobs. However, whether the dismantling or removal of the parts to be repair are done with the approval of the department head concerned and the required CAF by the City Accountant before any repair be undertaken are complied with are still to be observed.

Partially implemented

B. Financial and Compliance Audit

1. Cash Disbursing Officers Cash Disbursing Officers account Page has increased by 9,678,814 or 36 131%,liquidations/refunds of AAR prior years accounts was 652,945 CY 2011 or measly 8.12% and probable loss of in the amount of P3,981,625.62 or 53.89%, thus, resulting also in the overstatement of Government Equity by P7,388,823. 64

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

Recommendations: We recommend the following remedial measures to fast tract the liquidations/refunds of prior years cash advance granted to Special Disbursing Officers, we request the City Accountant to: i. Sent notice of liquidation/refund to the Special Disbursing Officer (SDO), still employee in the city government for the immediate settlement of his/her cash advance. Copy furnished the City Legal Office and the Commission on Audit. After six (6) months, the notice was received, yet no action taken by the concern SDO/employee, request the City Legal Office to institute administrative charge.
After the issuance of COA Circular No 2012-004 or in the early part of December 2012, the City Accountant have sent letter/notice to the concerned SDO. As we observed there are those have made full refunds, partially returned the cash advance and some others have not refund yet. Partially Implemented

ii. A separate notice of liquidation/refund to former SDO who have already retired, resigned and separated from the service but are still living for the immediate settlement of his/her cash advance. Copy furnished the City Legal Office and the Commission on Audit. After, six

Same condition Partially Impleas stated above


mented

65

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

(6) months, the notice was received, yet no compliance thereof by the former SDO, request the City Legal Office to initiate the filing of appropriate charge under the Revised Penal Code in the court within the City of Iligan; iii. Identify and document those former SDO but already dead and submit to the Sangguniang Panlungsod for the adoption of a resolution to request the Commission for the write-off of their unliquidated cash advance. In this case, the City Accountant shall properly coordinate with the City Auditor for his comments, evaluation, review and submission of additional documents if needed in the request. Not implemented The City Accountant failed to documents those deads SDO for. Neither SP Resolution was furnished to the Audit Team Leader for the write-off the dormant accounts.

iv.

Institute measures to limit the number of SDOs to be granted with cash advance and see to it that the requirement on the bonding of the SDO shall be strictly adhered to and no cash advance shall be granted unless it is for public purpose and availability of sufficient appropriation is provided and cash advance request to circumvent the procurement law must not be allowed.

The City Accountant have been very cautious whenever a cash advance be granted to concern city officials/employ ees on the requirement of bond and its purpose. The Number of SDOs have been reduced.

Fully Implemented

66

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

2. IDPP 1 & IDPP 2 The Power Plant (IDPP 1 & Page IDPP 2) which was finally 38 turnover by PSALM/NPC to the AAR City Government on December CY 16, 2010 was not 2011 recorded/booked in the latters book of accounts, thus, the PPE and Government Equity was understated by P350,101,622.53, the amount which the former owed to the latter for unpaid Real Property Tax, as of March 2007. Recommendations: We recommend the following remedial course of actions to rectify the observe audit deficiency by requiring the City Accountant to: i) Book/ record the Power Plant at a book value equal or equivalent of the unpaid RPT from NPC/PSALM as advertised on April 2, 2007 in the amount of P350,101,622.53. ii) Adjust the contra accounts under the General Fund and Special Education Fund for their respective shares of the delinquent real property tax as recorded.
Ongoing
In the recent COA action on the reasonableness of the price of the IDPP for the city government to dispose the power plant, ownership has yet to be determine through judicial proceeding due to court action made by NPC with the Regional Trial Court of Iligan City. Although the PSALM and NPC have turnover the power plant to the

67

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation city government in the later part of Calendar Year 2011 which became as our justification of our audit recommendations.

3.

Job Order (JOs) Employee The City Government had Page appropriated funds for Security, 40 General and Janitorial Services, AAR averaging monthly of 3,229 Job CY 2011 Orders (JOs) Personnel, in the amount of P59.2M and spent P 82,421,798.34 for undefined local projects contradicts Section 77, RA 7160 and the number of JOs hired is excessive runs counter to COA Circular Nos. 85-55A and 2002-003. Recommendations: We recommend the following remedial measures to rectify the foregoing practices and to ensure that funds appropriated for the hiring of personnel through job orders will be made available to PAPs pertaining to the general welfare and basic functions and services beneficial to the city constituents, viz
The audit finding on the Job Orders (JOs) and Casuals was restated in the Annual Audit Report (AAR) of the city government for Calendar Year (CY) 2012 as one of the Audit Foci for the Local Government Units (LGUs)

i. The City Mayor may employee emergency or casual employees or laborers paid on a daily wage or

There are very Partially few JOs hired Implemented for the city 68

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

piece of work basis and hired through job orders for local projects authorized by the Sanggunian Panglunsod pursuant to section 77, RA 7160 (LGC) and see to it that these local projects are consistent with Section 16 and within those identified in Section 17 of the LGC. ii. Limit the number of personnel hired on job orders by evaluating the mission and thrust of the concern department/office whether the services needed is supportive to the implementation of their objectives.

project clean and green program and those identified projects under Section 17 of the Local Government Code. There are some Partially offices with Impleassigned JOs mented but the number have exceeded the vacant position of their respective office.
Most of the JOs hired their wages are charged to these account and some are not rendering the services for the wages they were paid particularly those assigned in the various city departments/ offices. The wages of these JOs are properly charged to Personal Services.

iii. Limit the expenditures on General Services, Janitorial Services and Security Services and re-visit COA Circular No. 2002-003 as amended, as to what particular object of expenditures may be properly charged to these accounts.

Partially implemented

69

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

iv. Concern Department/Office Head to submit the PAPs and justify the hiring of personnel thru job orders. v. Salary of hired JOs personnel shall be charged to personal services. vi. In case the city government needs personnel to maintain the orderliness, sanitation and hygiene, cleanliness, beautification and good ambiance in the various offices, hire the services of manpower agency specializing for janitorial services. 4. Overtime pay Overtime pay in the amount of P 1,867,085.29, out of it, P382,494.45 pertains to Buhanginan (city government) Voice, paid to some city government employees for services rendered beyond regular office hours and during weekends and holidays for works or activities, some of which are not allowable pursuant to National Budget Circular No. 410 dated April 28, 1990. Recommendations: We recommend the following remedial measures to rationalize the grant of authority to render overtime with compensation, viz:
Page 45 AAR CY 2011

Same condition Partially as stated in implemented item iii above

Reiterated in the AAR for CY 2012. Reiterated in the AAR for CY 2012

70

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

i.

The head of the agency and/ or the local chief executive shall determine among the offices of the city government who will be granted to render overtime base on the IRR of Memorandum Circular N0. 228 (NBC No. 410 dated April 28, 1990). For this purpose, an executive order should be issued.

As observed the Number of department/offi ce rendering overtime services was reduced.

Fully Implemented

ii. The department/office head of the

concerned department/office as determined or identified by the LCE shall identify the specific activities covered by the IRR related to the functions of their department/office.
iii. The department/office head of the

Same condition stated above.

Fully Implemented

concerned department/office shall state the purpose, duration, list of employees, justification and the source of fund in their request for authority to render overtime with compensation.
iv. The concerns department/office

Fully Implemented

head shall strictly follow the funding source and cost limitation provided in the IRR (NBC No. 410).
v. The department/office head of the City Administrators Office and HRMO to revisit Section 1 (d) in relation to Section 6 of Administrative Order No. 103, of the Office of the President and CSC and DBM Joint Circular No. 2, series of 2004, as amended by Joint Circular No. 2 A, series of 2005 for adoption as a policy on employee rendering overtime.
Some department /office employees are rendering overtime services base on Compensation Time-Off.

Fully Implemented

Fully Implemented

71

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

vi. Stop the granting of overtime with

Ongoing

compensation to Buhanginan Voice for extra works rendered during their practices after office hours, weekends, and holidays. 5. BAC Honorarium Honoraria of the personnel Page 48 involved in the procurement AAR processes was sourced from the CY General Fund appropriation of P 2011 2.0M instead of P 330,663 collections source from the specific procurement activities provided in DBM Budget Circular 2007-3, thus payment of honoraria in excess from the actual proceeds may be considered irregular, unnecessary and excessive. Recommendations: We recommend the following courses of actions to rectify the audit deficiency: i) Require the Head, BAC Secretariat to prepare report on the number of projects bidded, project completed or procurement contracts awarded to support claimed for honoraria.
The requirement of this report as attachement to the claim of BAC Honoraria was superseded by Notice of Award pursuant to COA Circular redocuments to be attached for every disbursements of government funds.

Partially Implem ented

72

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

ii) Limit the payment of honoraria to the source identified in Budget Circular No. 2007-3 dated November 29, 2007 and to the savings from the local budget approved by the Sangguniang Panlungsod.

Not implemented

The BAC honoraria are charged to the lumpsum appropriation for honorium instead of to the proceeds of the sale of bid documents. We request the City Accountant Office to strictly follow the provision of Budget Circular No. 2007-3 dated November 29, 2007.

iii) Limit the number of person involved in TWG to at least three (3) per procurement project. The person with technical expertise on a particular procurement project shall be designated as chair. iv) Provide BAC Secretariat to at least three (3) members including the Head to each procurement project.

Not Implemented

As observed there are still so many designated TWG members.

Not implemented

The composition of BAC Secretariat shall be recomposed into two such as BAC
Secretariat for goods and services and BAC Secretariat for Infra Projects and consultancy

services. These will reduce the workload of BAC Secretariat members who are in the agency procurement unit (CGSO)

73

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

6. Procurement Services

of

Consultancy

The procurement of consultancy Page services is not in conformity with 50 IRR, RA No. 9184 and the AAR services procured do not partakes CY of consultancy as stated in 2011 Philippine Bidding Documents Edition I henceforth, payment of services rendered may be considered unnecessary expenditures and/ or waste of government resources. Recommendations: We recommend the following remedial measures to rectify the audit deficiency to ensure compliance with the procurement of consulting services and the services needed must be either or combination of the types of consulting services provided in the Philippine bidding documents, edition I, viz: i. Strictly follow the rules and regulations on procurement of consulting services per the revised IRR of RA No. 9184; ii. Limit the contracting of consulting services to services which the city government has no technical expertise or special skills.

74

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

7. PAPs identified to be funded from the LDRRM Fund (5 % Calamity Fund under General Fund) not implemented Programs, Activities, Projects (PAPs) approved by the 51 Sangguniang Panlungsod funded AAR from the LDRRM Fund CY amounting to P 67,485,600 to 2011 mitigate disaster was not implemented while P28,922,000 for Quick Response Fund (QRF) of which P7,529,213.37was disbursed for the relief and rehabilitation operations aftermath of Typhoon Sendong. Recommendations: We recommend the following remedial measures to fast track and enhance efficiency and effectiveness in the implementation of the various PAPs identified to support the disaster risk management activities, viz; i) The City Government shall fully
establish and organize the LDDRM office with able, responsible and full time head and staff which shall perform inherent functions in the disaster preparedness but not limited to the following essential functions, viz: a) DRRM officer within his level shall implement policies, approved plans and programs of LDRRMC in accordance with the policies and guidelines laid down in this Act; b) Coordinate with Page

75

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

various stakeholders such as NGOs, POs, CSOs, government officials/employees in the proper execution and enhance efficiency and effectiveness in the implementation of the programs, activities projects (PAPs); c) Organize and conduct training, orientation, and knowledge management activities on disaster risk reduction and management at the local level; and d) Maintain database of human resources, equipment, directories, and location of critical infrastructures and their capacities such as hospitals and evacuation centers.

ii) See to it that during the declaration of the State of Calamity, Local officials shall make mandatory undertaking remedial measures such as; a) observation on the imposition of price ceiling on basic necessities and prime commodities provided under RA No. 7581, otherwise known as the Price Act, or the National Price Coordinating Council; b) monitor, prevent and control of the Local Price Coordination Council of overpricing/profiteering and hoarding of prime commodities, medicines and petroleum products; c) programming/reprogramming of funds for the repair and safety upgrading of public infrastructures and facilities;

76

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

and d) granting of no interest loans by government financing or lending institutions to the most affected section of the population through their cooperative or peoples organizations. iii) Ensure that all related PAPs to be funded from the LDRRMF will support the disaster risk reduction and management activities during the predisaster preparedness programs and post disaster activities. Expedite the implementation of all these programs, projects and activities to prevent loss of life, damage to government and private property, and loss of livelihood before occurrence of another similar disaster or phenomena. iv) After post disaster activities, the DRRM officer shall prepare and submit terminal report on the utilization of LDRRMF to the COA. 8. Augmentation of fund Pursuant to Section 336, RA 7160 The preparation, authorization and Page execution of the annual budget for 54 General Fund and Special AAR Accounts Fund are inefficient due CY to often declaration of alleged 2011 savings for augmentation in the amount of P161,040,937.14 77

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

pursuant to Section 336, the local Code, in some instances, the exercise of the authority, contradicts Section 322 of the same Code. Recommendations: We recommend the following measures to rectify the audit deficiencies observed, that the City Mayor shall: i. Direct all department/office to submit their budget proposals to the local chief executive (LCE) thru the local financing committee (LFC) on or before the 15th of July of each year. Said budget proposals shall be prepared in accordance with the AIP, and guidelines and spending ceilings contained in the Budget Call and the other general requirements prescribed under Section 317 of RA 7160 ( the Local Code).

ii. Re-visit the provision of Section 336 of the Code and the provision of City Ordinance No. 2060, series of 1992 by restating this authority as a general provision of the Annual Budget of each year to ensure that unexpended balances of appropriations will not be included as source of fund for augmentation.

78

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

iii. Department/office

head shall observe prudence in the proper allocation of their respective appropriations to ensure attaining the objectives of their programs, projects, activities (PPAs).

9. Gender and Development (GAD) The City Government failed to Page identify the 56 programs/projects/activities in the AA Annual Budgets for the R implementation of Gender and CY Development that requires at least 2011 five percent ( 5% ) of the total appropriations or in the amount of P73,889,025.78,pursuant to Joint Memorandum Circular No. 20011 dated December 19, 2001. Recommendations: We recommend the following suggested measures to ensure that GAD PPAs shall be integrated into Local Planning & Budgeting System through formulation of GAD Plans, Viz: i. The City Planning Development Coordinator shall ensure that GAD PPAs are integrated in the local planning process.

ii. The City Budget Officer shall allocate funds for the implementation of the GAD Plan to at least 5% of the total appropriations earmarks in the annual and supplemental budgets for all funds.

79

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

iii. The implementer office shall see to it that funds allocated for the GAD projects shall be spent solely for that purpose and submit progress accomplishment report and year end report to the Focal Person designated.

iv. The Focal person shall oversee and monitor the proper implementation of the GAD projects including measures to improve the systems and operations of the GAD plan and to see to it the GAD related programs, projects and activities to be implemented shall be in accordance with Section 16 & 17 of LGC as spelled out in the PPGD as mandated under Executive Order 273. v. The City Planning Development Coordinator and/or the Focal Person shall submit consolidated accomplishment report to the concerned DILG field office as required in the Joint Memorandum Circular, copy furnished the City Auditor. vi. The present procedures of allocating fund for GAD PPAs to the various offices of the City Government under other MOOE shall be discouraged and be disapproved by the Sanggunian Panlungsod.

10. Annual (APP)

Procurement

Plan
Page 61 AAR CY 2011

The BAC Secretariat failed to consolidate the department/office Procurement Project Management Plan (PPMP) into Annual Procurement Plan (APP) as required in Section 7.3, Revised IRR of RA 9184 thus, procurement activities may ends

80

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

to shopping instead of public bidding therefore, competitiveness and transparency in procurement transactions are most likely not attained. Recommendations: We recommend the following remedial measures to rectify the audit deficiencies observed, viz: i. The BAC Secretariat to come up APPs for the City government based on the consolidated individual or department/office PPMPs related to their respective PAPs; Classify the procurement of goods whether it is available in the PS or not; base on the APPs (consolidated PPMPs), determine the volume, size and amount of the procurement of goods & services, consultancy service and Infrastructure projects and the time needed by the department/office concerned; prepare calendar of BAC activities for the prompt schedule of the conduct of procurement activities and assist in managing the procurement process.

ii. Provide copy of the APPs or consolidated PPMPs to the Office of the City Auditor.
iii. BAC shall observe the qualification and threshold amount requirement for shopping as a mode of procurement.

81

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

iv. The department/office shall prepare their PPMPs based on the PAPs and submit to the City Budget Office for evaluation and inclusion in the annual budget. 11. Procurement of supply requirement through the Procurement Service, DBM The City Government procured their office requirement for common use supplies to private suppliers contradicts Section 53 (e) of the IRR-A of RA No. 9184, thus the risk of incurring additional cost of processing for the procurement activities and time and effort utilized is unavoidable. Recommendations: We recommend the following remedial measures to ensure specific compliance with law, rules and regulations on government procurement transactions emphasis on common- use supplies and use of PhilGEPS: i. The BAC shall consolidate all the supplies requirements for the common-use supplies of the various offices of the City government and directly procure same to the PS-DBM on a quarterly basis.

ii. To fast track the consolidation works of the BAC, each 82

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

iii. department/office head shall provide copy of their annual procurement projects management plan (PPMP) on September of every year to the BAC Secretariat; to determine the common-use supplies to be procured at PS-DBM, the time when these are needed by the concerned offices and to request from the City Budget Office for the availability of fund. iv. The City government through the BAC makes use of the PhilGEPS in its procurement activities by posting all opportunities, notices, awards and contracts to ensure transparency and accountability and as a monitoring tool for observers such as Civil Society Organizations and COA. 12. Procurement of official uniform of the City Government Officials/Employees The Committee on Uniforms Page created under Executive Order of 63 the City Mayor failed to exercise AAR the mandates tasked with them CY thus, the objectives to 2011 conceptualize new designs and color and formulate new guidelines in the wearing of the prescribed uniform to conform with CSC dress code guidelines was not achieved.

83

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

Recommendations: We recommend the following remedial measures to rectify the observations made, viz: i. internal policy or guidelines on future procurement of office uniform must be established and promulgated by a duly constituted committee to ensure that the dress code as prescribe in the CSC Resolution be effectively observed and implemented; ii. procurement of office uniform ( cloth) and cost of labor (sewing) must be in accordance with the IRR of RA No. 9184 and the total amount must not exceed the approved appropriation for clothing/uniform allowance; iii. in case, the costs of cloth and labor is less than the amount of P4,000 per employee, the difference must be paid to the concerns employee through the payroll system; and
iv. see to it that the cloth, design and color must be presented to the stakeholders for comment(s) and /or approval before reaching a final decision on the procurement of the prescribed office uniforms.

13. Unsettled Suspensions, Disallowances and Charges


Status of Implementation (Full, Partial, On-

Reason for Partial/

84

OBSERVATIONS AND RECOMMENDATIONS

REF. Page 65 AAR CY 2011

MANAGEMENT ACTION

going, or Nonimplementation)

Nonimplementation

City government compliance with audit suspensions, disallowances and charges made during the year were 18.69 % or P265,435.27 out of P1,420,516.32 thereby, shows and unsettled accounts of P1,155,081.05. Recommendations: We recommend the following remedial measures to ensure settlement of the audit suspensions, disallowances and charges, the head of the agency shall: i) direct the responsible persons to comply the requirements stated in the audit suspensions and restitute/refund the audit disallowances and charges; ii) ensure that all employees who are retiring or transferring to other agencies shall first settle the disallowances and charges for which they are liable.

For the Year Ended December 31, 2010 (prior year for audit recommendations not fully implemented)
Financial and Compliance Audit

14. Cash in Bank-Local Currency Cash Account Confirmation of cash accounts Page balances per books with the banks 31, showed disagreement between the AAR two independent records of CY P44,581,089.40, the agency 2010
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
Status of Implementation (Full, Partial, On-

Reason for Partial/ Non-

85

ACTION

going, or Nonimplementation)

implementation

books has a balance of P350,878,203.43, while the bank accounts shows aggregate total of P395,459,292.83. Six (6) bank accounts were verified which have unadjusted reconciling items of P7,996,044.13 while 14 bank
accounts has no bank reconciliation

statement (BRS) contrary to Section 74, PD 1445, thus cast doubts to the validity, accuracy and existence of the cash accounts. Recommendations: 1. Record the adjustments noted in the bank reconciliation statements made. 2. Exhaust all possible means to trace and reconcile the remaining differences found between the books and banks balances. Not implem ented SP Resolution Not No. 11-418-A implem resolution ented directing the Head, City Accountants Office to prepare a Bank Reconciliation Statement Not No proper implem accounting ented personnel being assigned to do the Bank Reconciliation Statement. Not implem ented
REF. MANAGEMENT
Status of Implementation (Full, Partial, Ongoing, or Non-

3. Prepare monthly Bank Reconciliation Statements regularly and ensure the timely recording of adjustments and/or corrections for fair presentation of the cash accounts in the financial statements. 4. Assign one accounting personnel to assist the Trust Fund record keeper in the preparation of the BRS.
OBSERVATIONS AND RECOMMENDATIONS

Reason for Partial/ Non-

86

ACTION

implementation)

implementation

15. Due from Employees

Officers

and

Cash advances includes those Page unliquidated domestic travels and 33, time bound undertakings in the AAR amount of P9,338,999.09 or 97.51 CY % of the aggregate amount of P 2010 9,577,909.72, contrary to COA Circular No. 97-002 and pose problems on the certainty of settlements of the accounts as some of these officers and employees have retired and resigned or transferred to other offices. These also understated the related expenses account and overstated the reported income accounts and trust liability. Recommendation: The City Accountant should be guided with COA Circular No. 96-004, implementing Section 16 of Executive Order No. 248 and COA Circular No. 97-002, amended rules and regulations on the granting, utilization and liquidation of cash advances and Section 89 of PD. 1445 by adopting strictly the following:
Partially Implemented Compliance with the rules on granting, utilization and liquidation of cash advances cannot be fully implemented due to some personal request from the concern employees with unliquidated cash advance

Only permanently appointed officials shall be designated as disbursing officers. Elected


officials may be granted cash advance only for their official traveling expenses.
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT

Partially Implemented

Elected official was allowed to draw cash advance.


Reason for Partial/ Non-

Status of Implementation (Full, Partial, Ongoing, or Non-

87

ACTION

implementation)

implementation

For foreign/local travels, to send within ten (10) before the expiration of the 30 or 60 days period specified under Section 16, of EO 248, a written reminder under signature of the head of the agency or his duly authorized representative, enjoining the official or employee concerned to liquidate his travel cash advance. Delete the name of the official or employee from the subsequent payrolls until such time that the travel cash advance has been fully liquidated, if the official or employee concerned fails to liquidate the cash advance within the prescribed period. For petty cash fund (PCF) and time bound undertaking (special cash advance) to enjoin the official and employees to liquidate within 20 days after the end of the year or as soon as the purpose for which it was given has been served. When a cash advance is no longer needed or has not been used for a period of two (2) months, it must be returned or refunded immediately to the collecting officer. Official and employee drawing cash advance under this category shall be required to post fidelity bond, if the amount to be given is P 5,000 and above. Only duly appointed or designated disbursing officer may perform disbursing functions.

Partially Implemented

Liquidation of local travels exceeded the 30 days limit.

Partially Implemented

PCF are not maintained under the imprest system.

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

88

Submit list of officials and employees who have already separated from the service and/or have transferred to other offices and the total amount shall be disclosed in the financial statement. For effective monitoring of liquidation, within ten (10) days after receipt of the report and supporting documents from the accountable officer, verify the report, prepare the JEV and submit the same with all the vouchers/payrolls and supporting documents to the Auditor. 16. Due from LGUs Additional fund transfers out of Page the 20% Development Fund were 38, made to various barangays AA without first requiring full R liquidation of previous releases, CY thus, accumulating the balance of 2010 Due from LGUs account to P51,325,833.46 as of December 31, 2010; non-reconciliation of the barangays records with the accountings general ledger accounts showed a difference of P37,005,395.89, contrary to Memorandum of Agreement, thus completion of various infrastructure projects implemented at the barangay level are doubtful
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT ACTION

Not Implemented

Not Implemented

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

89

Recommendations: 1. Direct the City Accountant to hold in abeyance the processing of additional fund releases to barangays until such the liquidations of previous years fund transfers have been submitted in pursuant to the provisions of MOA.
Partially Implemented Acting Head, Barangay Accounting Section is now requiring each barangay to submit their liquidation on previous releases before subsequent or succeeding releases of fund.

2. The City Accountant should issue demand letters for the immediate liquidation of fund transfer that were due and demandable pertaining to prior years releases. 3. The City Accountants representative and the barangay record keepers should sit together quarterly for the reconciliation of their accounts to identify the reconciling items and to record immediately the adjustments. 17. Due from NGOs/POs Funds transferred to NGOs/POs amounting to P8,874,258.55 remains unliquidated as of December 31, 2010, of which P3,334,168.33 is already more than 2 years, contrary to Section 5.4 of COA Circular No. 2007-001, thus, casting doubt on the accuracy and validity of the account.

Not Implemented

No demand letter is issued.

Not Implemented

Nothing heard on the meeting between the accounting representatives and Barangay record keeper.

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Non-

90

ACTION

implementation

Recommendation: 1. Direct the City Accountant to demand immediate liquidation of fund transferred to NGOs/POs. Render report for those who can not submit liquidation report due to their whereabouts is nowhere to find and submit to the City Mayor and the appropriate committee in the Sangguniang Panglunsod for adoption of appropriate measures to protect the interest of the city government. 2. Direct the City Accountants representative to verify the accounts of NSO and Brima construction, if this an act of human error reclassify to the appropriate account. 3. To safeguard fund transferred to NGOs/POs, the accountant and the focal person in the implementation of the project should conduct pre-briefing seminar on the reporting of the utilization of the fund and in the implementation project before fund releases. 18. Due from Other Funds/Due to other Funds
Unreconciled reciprocal accounts of Due from Other Funds and Due to Other Funds maintained by the General Fund, Special Education Fund and Trust Fund, resulting to a difference of P4,190,042.14, thus rendering the accounts doubtful.
OBSERVATIONS AND RECOMMENDATIONS

Not Implemented

No demand letter being sent to the concern NGOs/PO.

Not Implemented

We doubt whether they have verified the accounts.

Not Implemented

No pre-briefing meeting conducted prior to the release of fund.

Page 41, AA R CY 2010


REF. MANAGEMENT ACTION
Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

91

Recommendation: The City Accountants representative should reconcile the reciprocal accounts and effect adjustment in the respective books of accounts for fair presentation in the financial statements. 19. Accumulated Depreciation/ Depreciation Expense The carrying amount of the Page property, plant and equipment 42, (PPE) are overstated because the AA depreciation of the assets were not R recorded for almost two (2) years, CY runs counter to Section 4 (o) of 2010 New Government Accounting System, Volume I, resulted into understatement of expenses and the related contra-asset accounts. Recommendation: The City Accountant should immediately compute for the depreciation of the PPE accounts for the past two years and to record the depreciation expenses for the current year. 20. Construction in Progress Construction in progress for completed projects in calendar year 2010 in the total amount of P24,911,356.32 were still not recorded as agency assets and/or Page 43, AA R CY 2010
REF. MANAGEMENT ACTION
Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Not Implemented

No reconciliation is done.

Partially implemented

OBSERVATIONS AND RECOMMENDATIONS

Reason for Partial/ Nonimplementation

92

as public infrastructure projects contrary to the provisions of Section 50, Volume I of the Manual on the New Government Accounting System, thus, understating the appropriate PPE accounts and expenses for the depreciation that could have already been allocated. Recommendations: 1.The City Accountants representative to record the completed projects either as agency assets and/or public infrastructure projects, the latter should be transferred to the Registry of Public Infrastructure. 21 Loans Payable Long-Term, Domestic Long-Term-Loans payable Page (domestic) in the amount of 44, P262,603,167.14 of which AA P1,413,375.00 is due and payable R within twelve months after CY balance sheet date were not 2010 reclassified as current liabilities inconsistent with the Philippine Accounting Standard (PAS) No. 1. Recommendation:
The City Accountant to reclassify current liability from non- current liability in conformity with PAS No. 1 to ensure that both accounts are fairly present in the financial statements.
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT ACTION

Partially Implemented

Not implemented

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

93

22. Property, Plant and Equipment Accounts Incomplete physical inventory Page taking and reporting to establish 24, the validity, correctness and AA existence of Property, Plant and R Equipment accounts totaling P1.973,668,373.22 as of CY December 31, 2008 is contrary 2008 to provisions of Section 124, NGAS, Volume I Recommendations: 1. Henceforth, ensure the religious submission of Report on the Physical Count of Property, Plant and Equipment (RPCPPE) to the Auditor concerned not later than January 31 of each year to serve as a basis in checking their actual balance and existence especially at year end, as well as, in reconciling GSO/property and accounting books and records. 23. Appropriation for the Transfer of Ownership of 163 Certificate of Titles and the Titling City of Iligan failed to appropriate Page in the annual budget estimated 36, costs for the transfer of ownership AA of 163 Certificate of Titles and the R Titling of 32 parcels of untitled CY lands/lots acquired through 2008 purchase in favor of the city, thereby placing the property still in the name of former owners.
Partially Implemented

Not Implemented

No Inventory Committee was created for CY 2010.

OBSERVATIONS AND RECOMMENDATIONS

REF.

MANAGEMENT ACTION

Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

94

Recommendation: Provide sufficient appropriation for the transfer of title of ownership of titled properties acquired through purchase, and the titling of untitled land acquired in favor of the City Government. 24. Gender and Development The City Government failed to formulate Gender and Development Plans that require a minimum five percent (5%) budgetary allocation to be authorized under the city annual and supplementary budgets appropriated for CY 2008, contrary to DBM and NEDA Joint Circular No. 2001-1 dated August 15, 2001. Recommendations: 1. Formulate the required GAD Plans within the context of the citys overall plans and programs. The GAD plan should contain Programs/Projects/Activities (PPA) that will address existing and emerging gender issues. 2. Provide appropriation of not less than five percent (5%) of the total 2009 annual and supplemental budgets to GAD related programs/projects/activities,
OBSERVATIONS AND RECOMMENDATIONS REF.

Page 28, AAR CY 2008

Not Implemented

The SP has Partially Impleappropriated P200,000 for mented the titling of land acquired
MANAGEMENT ACTION
Status of Implementation (Full, Partial, Ongoing, or Nonimplementation)

Reason for Partial/ Nonimplementation

95

as required in Section 6.3 of DBM and NEDA Circular No. 2001-01.

by the City Government. For CY 2011, only P290,000 was appropriated for GAD out of its Annual Budget of P1.2 Billion.

City Government of Iligan Balance Sheet, by Unit As of December 31, 2012 PARTICULARS CONSOLIDATED GENERAL FUND SPECIAL EDUCATION FUND

Annex A Annex A TRUST FUND

96

City Government of Iligan Balance Sheet, by Unit As of December 31, 2012 PARTICULARS ASSETS CURRENT ASSETS CASH Cash on Hand Cash in Vault Cash-Disbursing Officers Petty Cash Fund Payroll Fund Cash in Banks-Local Currency
Cash in Bank-Local Currency, Current Account Cash in Bank-Local Currency, Savings Account Cash in Bank-Local Currency, Time Deposits

Annex A Annex A CONSOLIDATED GENERAL FUND SPECIAL EDUCATION FUND TRUST FUND

14,309,994.28 130,371.05 1,184,066,769.89 226,635,350.39 1,425,142,485.61 7,539,921.72 9,498,067.77 407,679,602.52 350,144,763.22 6,397,110.19 1,285,000.00 81,105,870.66 7,290,263.78 1,535,742.60 4,273,491.52 140,183.28 876,890,017.26 -

9,184,598.28 130,371.05

1,461,119.62

3,664,276.38

761,200,063.49 187,743,971.39

21,737,027.21 23,022,967.86

401,129,679.19 15,868,411.14

Cash in Banks-Foreign Currency


Cash in Bank--Foreign Currency, Current Account Cash in Bank-Foreign Currency, Savings Account Cash in Bank-Foreign Currency, Time Deposits

Total Cash RECEIVABLES Receivables Accounts Accounts Receivable Notes Receivable Due from Officers and Employees Loans Receivables - GOCCs Loans Receivables - Others Loans Receivables - LGUs Real Property Tax Receivable Special Education Tax Receivable Interests Receivable Inter-agency Receivables Due from NGAs Due from GOCCs Due from LGUs Due from NGOs/Pos Intra-agency Receivables Due from Other Funds Other Receivables Receivables-Disallowances/Charges Advances to Officers and Employees Other Receivables Total Receivables INVENTORIES Materials Raw Materials Inventory Work-in Process Inventory Finished Goods Inventory

958,259,004.21

46,221,114.69

420,662,366.71

6,911,814.24 7,918,226.61 407,679,602.52

268,901.39

359,206.09 1,579,841.16

350,144,763.22 6,397,110.19 1,285,000.00 81,105,870.66 5,190,263.78 1,456,156.00 4,231,728.34 140,081.02 522,315,853.36 41,763.18 1.26 352,555,429.05 101.00 2,018,734.85

2,100,000.00 79,586.60

97

City Government of Iligan Balance Sheet, by Unit As of December 31, 2012 PARTICULARS Merchandise Inventory Supplies Office Supplies Inventory Accountable Forms Inventory Animal/Zoological Supplies Inventory Food Supplies Inventory Drugs and Medicines Inventory Medical, Dental and Laboratory Supplies Inventory Gasoline, Oil and Lubricants Inventory Agricultural Supplies Inventory Textbooks and Instructional Materials Inventory Military and Police Supplies Inventory Other Supplies Inventory Confiscated/Abandoned/Seized Goods Inventory Spare Parts Inventory Construction Materials Inventory Agricultural, Fishery and Forestry Products Livestock Inventory Crops and Fruits Inventory Other Agricultural, Fishery and Forestry Products Inventory Total Inventories PREPAYMENTS Prepaid Rent Prepaid Insurance Prepaid Interest Deposit on Letters of Credit Advances to Contractors Deferred Charges Other Prepaid Expenses Total Prepayments OTHER CURENT ASSETS Guaranty Deposits Other Current Assets Total Other Current Assets Total Current Assets INVESTMENTS Investment in Treasury Bills Investment in Stocks Investment in Bonds Other Investment and Marketable Securities Sinking Fund Total Investments PROPERTY, PLANT & EQUIPMENT (Net of CONSOLIDATED 244,644.50 748,150.67 791,211.90 636,965.00 293,148.00 2,066,500.00 4,780,620.07 1,146,581.79 32,040,029.35 33,186,611.14 80,000.00 80,000.00 2,340,079,734.08 6,000,000.00 6,000,000.00 GENERAL FUND SPECIAL EDUCATION FUND

Annex A Annex A TRUST FUND

244,644.50 748,150.67 791,211.90 636,965.00

293,148.00 2,066,500.00

4,780,620.07 1,146,581.79 31,730,517.71 32,877,099.50 80,000.00 80,000.00 1,518,312,577.14

103,401.70 103,401.70

206,109.94 206,109.94

398,879,945.44

422,887,211.50

6,000,000.00 6,000,000.00 -

98

City Government of Iligan Balance Sheet, by Unit As of December 31, 2012 PARTICULARS Depreciation) LAND AND LAND IMPROVEMENTS Land Land Improvement Electrification, Power and Energy Structures Total Land and Land Improvements BUILDINGS Office Building School Building Hospitals and Health Center Markets and Slaughterhouses Other Structures Total Buildings LEASEHOLD IMPROVEMENTS Leasehold Improvements, Land Leasehold Improvements, Buildings Other Leasehold Improvements Total Leasehold Improvements OFFICE EQUIPMENT, FURNITURE & FIXTURES Office Equipment Furniture and Fixtures IT Equipment and Software Library Books Total Office Equipment, Furniture and Fixture MACHINIRIES & EQUIPMENTS Machineries Agricultural, Fishery and Forestry Equipment Communication Equipment Construction and Heavy Equipment Hospital Equipment Firefighting Equipemnt and Accessories Medical, Dental and Laboratory Equipt. Military and Police Equipment Sports Equipment Technical and Scientific Equipment Other Machineries and Equipment Total Machineries and Equipment TRANSPORTATION EQUIPMENT Motor Vehicles Watercrafts Other Transportation Equipment Total Transportation Equipment OTHER PROPERTY, PLANT & EQUIPMENT Other Property, Plant and Equipment CONSOLIDATED GENERAL FUND SPECIAL EDUCATION FUND

Annex A Annex A TRUST FUND

341,616,892.33 6,262,833.51 (1,311,872.85) 346,567,852.99 265,734,504.67 31,970,943.98 8,848,689.35 108,570,821.80 72,502,722.09 487,627,681.89 2,486,484.71 2,486,484.71 33,901,903.64 29,335,437.72 45,396,283.83 14,069,043.32 122,702,668.51 329,085.39 500,502.13 6,602,731.52 107,138,544.62 5,470,712.61 2,835,164.61 6,719,085.27 1,116,151.94 1,269,403.94 7,083,852.55 1,092,429.70 140,157,664.28 82,043,391.24 127,881.25 307,400.00 82,478,672.49 263,912,448.82

329,061,409.28 5,907,979.61 (1,759,293.50) 333,210,095.39 172,006,662.12 26,099,335.15 6,215,265.34 108,570,821.80 57,632,036.39 370,524,120.80 2,486,484.71 2,486,484.71 30,868,076.94 20,485,776.68 44,531,361.76 2,820,586.85 98,705,802.23 139,876.55 467,502.13 6,576,874.23 107,138,544.62 5,416,950.11 2,824,846.76 6,655,060.27 1,116,151.94 1,033,761.44 6,783,554.43 1,092,429.70 139,245,552.18 76,190,974.79 127,881.25 307,400.00 76,626,256.04 263,269,100.49

8,946,883.05 354,853.90 447,420.65 9,749,157.60 93,727,842.55 5,871,608.83

3,608,600.00 3,608,600.00

2,633,424.01 113,450.71 99,712,902.09 14,757,234.99 17,390,659.00

1,314,580.85 8,563,435.07 269,340.64 10,863,015.68 21,010,372.24 189,208.84

1,719,245.85 286,225.97 595,581.43 385,440.79 2,986,494.04 33,000.00

25,857.29 53,762.50 10,317.85 64,025.00 235,642.50 300,298.12 761,324.60 1,104,519.97 1,104,519.97 341,000.23 150,787.50 4,747,896.48 4,747,896.48 302,348.10

99

City Government of Iligan Balance Sheet, by Unit As of December 31, 2012 PARTICULARS Total Other Property, Plant and Equipt. PUBLIC INFRASTRUCTURE Roads, Highways and Bridges Parks, Plazas and Monuments Ports, Lighthouse and Harbors Artesians Wells, Reservoirs, Pumping Stations & Conduits Irrigations, Canals and Laterals Flood Controls Waterways, Aqueducts, Seawalls, River Walls and Others Other Public Infrastructures Total Public Infrastructures REFORESTRATION PROJECTS Reforestration-Upland Reforestration-Marshland/Swampland Total Reforestration Projects CONSTRUCTION IN PROGRESS Construction in Progress-Agency Assets Public infrastructure/Reforestration Projects Construction in Progress - Roads, Highways and Bridges Construction in Progress - Plazas, Parks and Monuments Construction in Progress - Ports, Lighthouse and Harbors Construction in Progress - Artesian Wells, Reservoirs Construction in Progress - Irrigation, Canals and Laterals Construction in Progress - Flood Control Construction in Progress - Waterways, Aqueducts, Seawalls Construction in Progress - Other Public Infrastructures Construction in Progress - ReforestationUpland Construction in Progress - ReforestationMarshland Total Construction in Progress Total Property, Plant and Equipment OTHER ASSETS Work/Other Animals Breeding Stocks Arts, Archeological Speciment and Other Exhibits Items in Transit CONSOLIDATED 263,912,448.82 2,427,223.00 447,210.08 42,901,095.17 124,488,573.45 170,264,101.70 49,500.00 49,500.00 305,312,183.53 101,167,819.09 2,058,473.40 294,731,641.98 21,440,199.59 3,760,708.02 4,849,245.13 70,333,375.31 7,197.08 803,660,843.13 2,419,907,918.52 1,555,924.00 28,217,431.28 7,197.08 745,329,373.37 2,199,325,871.80 1,322,924.00 28,217,431.28 34,940,664.97 168,004,456.81 294,724,506.98 21,440,199.59 3,760,708.02 4,849,245.13 67,890,278.41 236,686.90 GENERAL FUND 263,269,100.49 2,427,223.00 62,874.97 42,901,095.17 384,335.11 SPECIAL EDUCATION FUND 341,000.23

Annex A Annex A TRUST FUND 302,348.10

124,488,393.45 169,879,586.59 49,500.00 49,500.00 252,893,064.67 97,705,700.09 2,058,473.40

180.00 384,515.11

34,703,978.07

17,715,140.79 3,462,119.00

7,135.00

2,206,410.00

23,390,804.79 52,577,589.91 233,000.00

100

City Government of Iligan Balance Sheet, by Unit As of December 31, 2012 PARTICULARS Other Assets Total Other Assets TOTAL ASSET CONSOLIDATED 2,548,865.21 32,322,220.49 4,798,309,873.09 GENERAL FUND 353,092.00 29,893,447.28 3,753,531,896.22 SPECIAL EDUCATION FUND 2,195,773.21 2,195,773.21 569,080,175.46

Annex A Annex A TRUST FUND

233,000.00 475,697,801.41

LIABILITIES CURRENT LIABILITIES Payable Accounts Accounts Payable Notes Payable Due to Officers and Employees Interest Payable Inter-agency Payables Due to BIR Due to GSIS Due to PAG-IBIG Due to PHILHEALTH Due to Other NGAs Due to Other GOCCs Due to LGUs Intra-Agency Payables Due to Other Funds Other Liabiltiy Accounts Guaranty Deposits Payable Performance/Bidders/Bail Bonds Payable Tax Refunds Payable Other Payables Total Current Liabilities LONG TERM LIABILITIES Mortgage/Bonds/Loans Payable Mortgage Payable Bonds Payable-Domestic Bonds Payable-Foreign Loans Payable- Domestic Loans Payable - Foreign Other Long-Term Liabilities Total Long Term Liabilities TOTAL LIABILITIES DEFERRED CREDITS Deferred Real Property Tax Income Deferred Special Education Tax Income Other Deferred Credits Total Deferred Credits EQUITY Government Equity-Beg. 73,181,067.40 9,621,256.25 23,122,794.68 (960,703.39) 2,704,477.27 3,226,761.89 62,907,965.74 16,931,935.93 1,882,482.22 33,277,325.42 18,086,334.86 67,585,560.54 290,440,959.70 602,008,218.51 677,866,248.46 677,866,248.46 1,279,874,466.97 415,919,177.02 350,144,333.12 546,598.05 766,610,108.19 2,625,256,819.29 69,424,718.53 9,618,487.51 18,587,152.15 (1,232,945.81) 2,581,556.12 1,737,215.02 10,047,949.43 189,810.00 166,496.29 33,053,722.00 16,534,859.73 666,575.65 14,439,920.17 175,815,516.79 3,756,348.87 2,768.74 1,283,568.48 272,242.42 122,921.15 1,489,546.87 3,252,074.05

52,860,016.31 16,742,125.93 1,715,985.93 207,458.51 14,579.87 32,943.84 8,282,378.75 16,144.91 636,895.26 66,918,984.89 275,768,095.69 417,910,322.97

677,866,248.46 677,866,248.46 853,681,765.25 415,919,177.02 441,584.05 416,360,761.07 2,366,476,445.23 350,144,333.12 7,614.00 350,151,947.12 200,982,074.59 97,400.00 97,400.00 57,798,299.47 8,282,378.75 417,910,322.97

101

City Government of Iligan Balance Sheet, by Unit As of December 31, 2012 PARTICULARS Adjustments to Beg. Bal. Adjusted Beg. Bal. Add: Retained Operating Surplus: Current Operations Prior year's Adjustment Less: Transfer to Registry Public Infrastructures Reforestation Projects Prior year's Adjustment Government Equity, December 31, 2010 TOTAL LIABILITIES AND EQUITY CHECKING: asset vs. liability & equty Income by Fund vs. current operation total cash vs. cash balance (cashflow)) CONSOLIDATED 2,625,256,819.29 138,755,033.23 580,717.20 12,767,271.79 2,751,825,297.93 4,798,309,873.09 GENERAL FUND SPECIAL EDUCATION FUND 00,982,074.59 9,083,057.80 580,717.20

Annex A Annex A TRUST FUND

2,366,476,445.23 129,671,975.43

57,798,299.47

12,659,050.76 2,483,489,369.90 3,753,531,896.22 210,645,849.59 569,080,175.46

108,221.03 57,690,078.44 475,697,801.41

102

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS TAX REVENUE Local Taxes Amusement Tax Business Tax Community Tax Franchise Tax Occupation Tax Printing and Publication Tax Property Transfer Tax Real Property Tax Less: Discount on Real Property Tax Real Property Tax on Idle Lands Special Assessment Tax Special Education Tax Less: Discount on Special Education Tax Tax on Delivery Trucks and Vans Tax on Sand, Gravel and Other Quarry Products Other Local Taxes Fines and Penalties-Local Taxes Total Local Taxes GENERAL INCOME ACCOUNTS Internal Revenue Allotment Permits and Licenses Fees on Weights and Measures Fishery Rental Fees Franchising and Licensing Fees Motor Vehicles Users Charge Permit Fees Registration Fees Other Permits and Licenses Fines and Penalties- Permits and Licenses Total Permits and Licenses Service Income Affiliation Fees Athletic and Cultural Fees Clearance and Certification Fees Comprehensive Examination Fees Diploma and Graduation Fees CONSOLIDATED GENERAL FUND SPECIAL EDUCATION FUND TRUST FUND

3,892,016.84 88,055,660.20 4,162,610.70 9,554,175.54 1,329,374.17 4,671,780.03 51,262,870.40 58,613,872.10 1,294,690.00 2,750,541.20 2,184,577.68 9,653,782.84 237,425,951.70 732,393,920.00 216,532.50 6,290,490.88 1,509,954.00 25.00 8,017,002.38 3,722,867.10 -

3,892,016.84 88,055,660.20 4,162,610.70 9,554,175.54 1,329,374.17 4,671,780.03 51,262,870.40

58,613,872.10 1,294,690.00 2,750,541.20 2,184,577.68 2,048,262.00 171,206,558.76 732,393,920.00 216,532.50

7,605,520.84 66,219,392.94

6,290,490.88 1,509,954.00 25.00 8,017,002.38

3,722,867.10

103

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS Garbage Fees Inspection Fees Library Fees Medical, Dental and Laboratory Fees Processing Fees Seminar Fees Toll and Terminal Fees Transcript of Records Fees Other Service Income Fines and Penalties - Service Income Total Service Income Business Income Hospital Fees Income from Canteen Operations Income from Cemetery Operations Income from Communication Facilities Income from Dormitory Operations Landing and Parking Fees Income from Markets Income from Slaughterhouse Income from Transportation System Income from Waterworks System Printing and Publication Income Rent Income Sales Revenue Cost of Good Sold Net Sales Revenue Tuition Fees Other Business Income Fines and Penalties - Business Income Total Business Income Other Income Dividend Income Income from Grants and Donations Insurance Income Interest Income Sale of Confiscated/Abandoned/Seized Goods and Properties Share from Economic-Zones CONSOLIDATED 6,319,714.44 6,065,485.50 55.00 16,108,122.04 23,225,797.81 1,368,824.00 12,157,260.03 1,723,840.68 11,312,284.14 48,460,172.44 88,000.00 25,067.00 25,067.00 388,232.54 98,749,478.64 563,850.00 5,433,907.11 3,744,896.99 GENERAL FUND SPECIAL EDUCATION FUND TRUST FUND

6,319,714.44

6,065,485.50 55.00 16,108,122.04 23,225,797.81 1,368,824.00

12,157,260.03 1,723,840.68 11,312,284.14 48,460,172.44 88,000.00 25,067.00 25,067.00 -

388,232.54 98,749,478.64

563,850.00 4,769,948.02

663,959.09

3,744,896.99

104

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS Share from Expanded Value Added Tax Share from National Wealth Share from PAGCOR/PCSO Share from Tobacco Excise Tax Miscellaneous Income Other Fines and Penalties Total Other Income TOTAL OPERATING INCOME EXPENSES PERSONAL SERVICES Salaries and Wages Salaries and Wages - Regular Salaries and Wages - Military/Uniformed Salaries and Wages - Part-time Salaries and Wages - Substitute Salaries and Wages - Casual Salaries and Wages - Contractual Salaries and Wages - Emergency Other Compensation Personnel Economic Relief Allowance (PERA) Additional Compensation (ADCOM) Representation Allowance (RA) Transportation Allowance (TA) Clothing/Uniform Allowance Subsistence, Laundry and Quarter Allowance Productivity Incentive Allowance Other Bonuses and Allowances Honoraria Hazard Pay Longevity Pay Overtime and Night Pay Cash Gift Year End Bonus Personnel Benefits Contributions Life and Retirement Insurance Contributions PAG-IBIG Contributions PHILHEALTH Contributions ECC Contributions CONSOLIDATED 21,058,502.90 347,109.85 212,850.00 196,411.23 31,557,528.08 1,124,252,002.84 GENERAL FUND SPECIAL EDUCATION FUND TRUST FUND

21,058,502.90 347,109.85 212,850.00 196,411.23 30,893,568.99 1,057,368,650.81 663,959.09 66,883,352.03 -

271,360,638.90 88,091,840.71 72,321.16 -

241,778,905.78

29,581,733.12

88,042,963.15 72,321.16

48,877.56

30,737,273.26 3,379,489.29 2,830,701.54 6,360,570.68 3,819,884.28 18,681,493.43 60,000.00 3,392,676.81 39,497.08 1,235,000.00 2,018,822.45 6,871,036.38 22,187,052.21 32,986,037.86 1,618,761.84 3,102,035.97 1,556,806.20

26,897,987.90 3,379,489.29 2,830,701.54 5,558,970.68 3,724,907.12 18,365,493.43 60,000.00 2,581,876.81 39,497.08 950,000.00 2,018,822.45 6,068,536.38 19,710,969.71 29,425,687.41 1,426,261.84 2,750,073.47 1,364,572.36

3,839,285.36

801,600.00 94,977.16 316,000.00 810,800.00 285,000.00 802,500.00 2,476,082.50 3,560,350.45 192,500.00 351,962.50 192,233.84

105

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS Other Personnel Benefits Pension Benefits-Civilian Retirement Benefits-Civilian Terminal Leave Benefits Health Workers Benefits Other Personnel Benefits Total Personal Services Maintenance and Other Operating Expenses Travelling Expenses Travelling Expenses - Local Travelling Expenses - Foreign Training and Scholarship Expenses Training Expenses Scholarship Expenses Supplies and Material Expenses Office Supplies Expense Accountable Forms Expenses Animal/Zoological Supplies Expenses Food Supplies Expenses Drugs and Medicines Expenses Medical, Dental and Laboratory Supplies Expenses Gasoline, Oil and Lubricants Expenses Agricultural Supplies Expenses Textbooks and Instructional Materials Exp. Military and Police Supplies Expenses Other Supplies Expenses Utility Expenses Water Expenses Electricity Expenses Cooking Gas Expenses Communication Expenses Postage and Deliveries Telephone Expenses- Landline Telephone Expenses- Mobile Internet Expenses Cable, Satellite, Telegraph and Radio Exp. Membership Dues and Contributions to Organizations Awards and Indeminities Expenses CONSOLIDATED GENERAL FUND SPECIAL EDUCATION FUND TRUST FUND

1,625,298.00 8,150,537.13 6,000.00 11,529,924.92 521,713,700.10

1,625,298.00 7,619,227.05 6,000.00 4,885,911.10 471,184,473.71

531,310.08 6,644,013.82 50,529,226.39

7,499,258.69 708,908.39 2,284,800.00 7,910,640.17 1,742,033.00 118,130.00 4,012,589.14 9,503,881.65 6,771,117.25 30,907,084.13 184,782.00 34,251,296.79 49,216,891.06 73,151.84 1,439,547.66 1,843,698.39 774,121.77 204,300.00 -

7,480,634.37

18,624.32

708,908.39 2,284,800.00 7,743,778.28 1,742,033.00 118,130.00 4,012,589.14 9,503,881.65 6,771,117.25 30,744,181.91 184,782.00 166,861.89

162,902.22

34,251,296.79

48,154,388.79

1,062,502.27

73,151.84 1,439,547.66 1,843,698.39 774,121.77

204,300.00

106

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS Advertising Expenses Printing and Binding Expenses Rent Expenses Representation Expenses Transportation and Delivery Expenses Storage Fees Subscription Expenses Survey Expenses Rewards and Other Claims Expenses Professional Services Legal Services Auditing Services Consultancy Services Environment/Sanitary Services General Services Janitorial Services Security Services Other Professional Expenses Repairs and Maintenance Land and Improvement Repairs and Maintenance-Land Improvements Repairs and Maintenance-Electrification, Power & Energy Structures Buildings Repairs and Maintenance-Office Building Repairs and Maintenance-School Bldgs. Repairs and Maintenance-Hospitals and Health Centers Repairs and Maintenance-Market and Slaughterhouse Repairs and Maintenance-Other Structure Leasehold Improvements Repairs and Maintenance-Leasehold Improvements, Land Repairs and Maintenance-Leasehold Improvements, Building Repairs and Maintenance-Other Leasehold Improvements Office Equipment, Furniture and Fixtures Repairs and Maintenance-Office Equip. Repairs and Maintenance-Furniture and CONSOLIDATED 1,518,420.40 56,000.00 6,458,487.80 1,284,371.05 1,000.00 67,266.00 346,081.07 1,809,505.58 23,333,575.19 14,716,403.06 1,867,931.10 GENERAL FUND 1,518,420.40 56,000.00 6,458,487.80 1,284,371.05 1,000.00 67,266.00 346,081.07 SPECIAL EDUCATION FUND TRUST FUND

1,809,505.58 23,333,575.19 14,716,403.06 1,867,931.10

2,902,385.72 1,398,789.11 898,834.00 364,059.00 180,776.50 364,059.00 180,776.50 2,902,385.72 1,398,789.11 898,834.00

151,168.00 151,168.00

107

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS Fixture Repairs and Maintenance-IT Equip. and Software Machineries and Equipment Repairs and Maintenance-Machineries Repairs and Maintenance-Agricultural, Fishery & Forestry Repairs and Maintenance-Communication Equipment Repairs and Maintenance-Construction and Heavy Equipment Repairs and Maintenance-Firefighting Equipment & Accessories Repairs and Maintenance-Hospital Equipment Repairs and Maintenance-Medical, Dental and Laboratory Repairs and Maintenance-Military and Police Equipment Repairs and Maintenance-Sports Equip. Repairs and Maintenance-Technical & Scientific Equipment Repairs and Maintenance-Other Machineries and Equipment TransportationEquipment Repairs and Maintenance-Motor Vehicles Repairs and Maintenance-Watercrafts Repairs and Maintenance-Other Transportation Equipment Other Property, Plant and Equipment Repairs and Maintenance-Other Property, Plant & Equipment Public Infrastructures
Repairs and Maintenance-Roads, Highways and Bridges Repairs and Maintenance-Plazas Parks and Monuments Repairs and Maintenance-Ports, Lighthouse and Harbors Repairs and Maintenance-Artesian Wells, Reservoirs, Pumping Repairs and Maintenance-Irrigation Canals and Laterals

CONSOLIDATED

GENERAL FUND

SPECIAL EDUCATION FUND

TRUST FUND

990.00 420,389.00 13,873,166.34 1,610.00 -

990.00

420,389.00

13,873,166.34 1,610.00

85,000.00 1,816,926.28 293,484.00 109,070.00 -

85,000.00 1,816,926.28 293,484.00 109,070.00

Repairs and Maintenance-Flood Control Repairs and Maintenance-Waterways, Aqueducts, Seawalls Repairs and Maintenance-Other Public Insfrastructures Reforestration Projects

108

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS Repairs and Maintenance-Reforestration Upland Repairs and MaintenanceMarshland/Swampland Confidential, Intelligence, Extraordinary & Miscellaneous Expense Confidential Expenses Intelligence Expense Extraordinary Expenses Miscellaneous Expenses Taxes, Insurance Premium and Other Fees Taxes, Duties and Licenses Fidelity Bond Premium Insurance Expenses Non-Cash Expenses Depreciation Land Improvements Depreciation-Land Improvements Depreciation-Electrification, Power and Energy Structures Building Depreciation-Office Buildings Depreciation-School Building Depreciation-Hospitals and Health Centers Depreciation-Markets and Slaughterhouses Depreciation-Other Structures Leasehold Improvements
Depreciation-Leasehold Improvements, Land Depreciation-Leasehold Improvements, Buildings Depreciation-Other Leasehold Improvements

CONSOLIDATED

GENERAL FUND

SPECIAL EDUCATION FUND

TRUST FUND

9,000,000.00 9,000,000.00 1,144,002.00 915,222.13 156,066.75 9,944,539.07

9,000,000.00 9,000,000.00 1,144,002.00

915,222.13 156,066.75 9,944,539.07

1,769,474.34 2,214,722.04 31,968.05 47,063.32 3,871,869.38 2,048,445.46 1,017,969.05 573,961.26 4,271,477.12 209,227.70 127,780.56 340,445.55 1,182,708.32 127,780.56 340,445.55 1,182,708.32 1,011,604.10 564,296.91 4,267,666.74 27,973.44 6,364.95 9,664.35 3,810.38 181,254.26 1,769,474.34 2,214,722.04 31,968.05 47,063.32 3,871,869.38 2,047,976.20

469.26

Office Equipment, Furniture and Fixtures Depreciation-Office Equipment Depreciation-Furniture and Fixtures Depreciation-IT Equipment Depreciation-Library Books Machineries Depreciation-Machineries Depreciation-Agricultural, Fishery and Forestry Equipment Depreciation-Communication Equipment Depreciation-Construction and Heavy Equipment

109

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS
Depreciation-Firefighting Equip. and Accessories

CONSOLIDATED 125,397.26 687,363.03 471,282.18 48,606.00 62,431.67 54,864.00 9,213.88 4,323,337.51 17,775.00 55,800.00 960,620.16 106,857,602.16 394,943,156.08 916,656,856.18 207,595,146.66 40,797,838.91 1,204,614.34 165,592,693.41 44,500,000.00 44,500,000.00 6,352,964.00 7,971,720.33

GENERAL FUND 125,397.26 687,363.03 471,282.18 48,606.00 62,431.67 54,864.00 9,213.88 4,321,195.72 17,775.00 55,800.00 960,620.16

SPECIAL EDUCATION FUND

TRUST FUND

Depreciation-Hospital Equipment
Depreciation-Medical, Dental and Lab. Equipt.

Depreciation-Military and Police Equipment Depreciation-Sports Equipment Depreciation-Technical and Scientific Equipment Depreciation-Other Machineries and Equip. Transportation and Equipment Depreciation-Motor Vehicles Depreciation-Watercrafts Depreciation-Other Transportation Equipment Other Property, Plant and Equipment
Depreciation-Other Property, Plant and Equip.

2,141.79

Other Maintenance and Operating Expenses Loss of Assets Loss on Guaranty Other Maintenance and Operating Expenses Total Maintenance and Other Operating Expenses TOTAL OPERATING EXPENSES INCOME FROM OPERATIONS FINANCIAL EXPENSES Bank Charges Commitment Fees Documentary Stamps Expenses Interest Expenses Other Financial Charges Income before Subsidies, Donations and Extraordinary Items Add: Subsidy from Other National Government Agencies Subsidy from Other LGUs Subsidy from Other Funds Total Less: Subsidy to National Government Agencies Subsidy to Local Government Units Subsidy to Govt Owned and Controlled Corp Subsidy to NGOs/Pos

102,378,932.06 387,919,088.24 859,103,561.95 198,265,088.86

4,478,670.10 7,024,067.84 57,553,294.23 9,330,057.80 -

40,797,838.91 1,204,614.34 156,262,635.61 9,330,057.80 -

44,500,000.00 44,500,000.00

6,352,964.00

7,971,720.33

110

City Government of Iligan

Annex B

Statement of Income and Expenses, by Unit


For the Year Ended December 31, 2012 PARTICULARS Subsidy to Other Funds Donations Total Income before Extraordinary Items Add: (Less) Extraordinary Items Gain/Loss on foreign Exchange Gain/Loss on Sale of Disposed Assets Gain/Loss on Sale of Securities NET INCOME CONSOLIDATED 44,500,000.00 12,512,975.85 71,337,660.18 138,755,033.23 138,755,033.23 GENERAL FUND 44,500,000.00 12,265,975.85 71,090,660.18 129,671,975.43 SPECIAL EDUCATION FUND 247,000.00 247,000.00 9,083,057.80 TRUST FUND

129,671,975.43

9,083,057.80

CHECKING Net Income vs. Current Operations (BS)

111

City Government of Iligan Statement of Cash Flows, by Unit For the Year Ended December 31, 2012
SPECIAL EDUCATION FUND

Annex C

PARTICULARS Cash Flows from Operating Activities Cash Inflows Share from Internal Revenue Allotment Collection from Taxpayers Receipts from sale of goods and services Interest Income Dividend Income Other Receipts Total Cash Inflows Cash Outflows Payment toSuppliers/Creditors Employees Interest Expenses Other Disbursements Total Cash Outflows Cash Provided by (Used In) Cash flows From Investing Activities Cash Inflows Sale of Property, Plant and Equipment Sale of Debt Securities of Other Entities Collection of Principal on Loans to Other Entities Total Cash Inflows Cash Outflows Purchase of Property, Plant &Equipment & Public Infrastructure Purchase of Debt Securities of Other Entities Grant/Loans to Other Entities Total Cash Outflows Cash Provided by (Used In) Cash Flows From Financing Activities: Cash Inflows Issuance of Debt Securities Acquisition of Loan Total Cash Inflows

TOTAL

GENERAL FUND

TRUST FUND

732,393,920.00 374,958,690.05 14,487,520.38 5,433,907.11 133,699,775.65 1,260,973,813.19

732,393,920.00 308,503,281.93 14,487,520.38 4,769,948.02 118,661,184.13 1,178,815,854.46

66,455,408.12

663,959.09 286,396.47 67,405,763.68 14,752,195.05 14,752,195.05

280,837,760.48 708,317,570.31 40,797,838.91 403,148,903.19 1,433,102,072.89 (172,128,259.70) -

222,200,960.18 658,601,872.93 40,797,838.91 402,612,035.05 1,324,212,707.07 (145,396,852.61)

32,561,774.49 44,129,915.24 509,499.46 77,201,189.19 (9,795,425.51)

26,075,025.81 5,585,782.14 27,368.68 31,688,176.63 (16,935,981.58)

31,745,682.85 31,745,682.85 (31,745,682.85) 455,265,650.98 455,265,650.98

30,313,245.85

1,432,437.00

30,313,245.85 (30,313,245.85)

1,432,437.00 (1,432,437.00)

455,265,650.98 455,265,650.98

112

City Government of Iligan Statement of Cash Flows, by Unit For the Year Ended December 31, 2012
SPECIAL EDUCATION FUND

Annex C

PARTICULARS Cash Outflows Retirement/Redemption of Debt Securities Payment of Loan Amortization Total Cash Outflows Cash Provided by (Used In) Net Cash Provided by (Used in) Cash at the Beginning of the Period Cash at the End of the Period CASH END VS. TOTAL CASH IN BALANCE SHEET

TOTAL

GENERAL FUND

TRUST FUND

114,568,167.93 114,568,167.93 340,697,483.05 136,823,540.50 1,288,318,945.11 1,425,142,485.61 -

114,568,167.93 114,568,167.93 340,697,483.05 164,987,384.59 793,271,619.62 958,259,004.21 -

(11,227,862.51) 57,448,977.20 46,221,114.69 -

(16,935,981.58) 437,598,348.29 420,662,366.71 -

113

Republic of the Philippines City Government of Iligan Buhanginan Hills, Pala-o, Iligan City
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES GENERAL FUND 2012

Annex D

1 CODE FUNCTION/PROGRAM/PROJECT APPROPRIATIONS I - Current Year Appropriations 1000 General Public Services 1010 Executive Services (Governor/Mayor) 1011 General Administration Personal Services 5,342,867.00 Maintenance & Other Operating Expenses 53,060,844.81 Capital Outlay Financial Expenses Sub-Total 58,403,711.81 1013 Civil Security Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1015 License Inspection Service Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1020 Legislative Services 1021 Legislation Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1022 Support Services (Secretariat) Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1030 Administrative Services (Administrator) 1031 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1032 Personnel Officer Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total ALLOTMENTS OBLIGATIONS BALANCES OF APPROPRIATIONS ALLOTMENTS

5,342,867.00 53,060,844.81 58,403,711.81

4,896,272.04 50,496,115.28 55,392,387.32

446,594.96 2,564,729.53 3,011,324.49

18,701,412.00 4,024,000.00 22,725,412.00

18,701,412.00 4,024,000.00 22,725,412.00

17,444,825.50 3,443,763.30 20,888,588.80

1,256,586.50 580,236.70 1,836,823.20

2,083,379.00 419,700.00 2,503,079.00

2,083,379.00 419,700.00 2,503,079.00

1,961,375.59 414,800.03 2,376,175.62

122,003.41 4,899.97 126,903.38

22,606,859.00 51,938,314.48 270,000.00 74,815,173.48

22,606,859.00 51,938,314.48 270,000.00 74,815,173.48

22,586,050.79 51,038,162.61 73,624,213.40

20,808.21 900,151.87 270,000.00 1,190,960.08

11,943,810.00 3,753,735.00 15,697,545.00

11,943,810.00 3,753,735.00 15,697,545.00

11,815,230.87 3,617,539.13 15,432,770.00

128,579.13 136,195.87 264,775.00

4,888,008.00 9,948,500.00 14,836,508.00

4,888,008.00 9,948,500.00 14,836,508.00

4,558,332.55 9,663,180.74 14,221,513.29

329,675.45 285,319.26 614,994.71

10,996,149.00 6,503,760.00 17,499,909.00

10,996,149.00 6,503,760.00 17,499,909.00

9,526,634.19 6,179,509.53 15,706,143.72

1,469,514.81 324,250.47 1,793,765.28

114

2 CODE FUNCTION/PROGRAM/PROJECT 1040 Planning and Development Coordination 1041 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1050 Civil Registry 1051 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1060 General Services 1061 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1070 Budgeting Services 1071 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1080 Accounting Services 1081 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1090 Treasury Services 1091 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1100 Assessment of Real Property 1101 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1110 Auditing Services 1111 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total APPROPRIATIONS ALLOTMENTS OBLIGATIONS BALANCES OF APPROPRIATIONS ALLOTMENTS

10,858,806.00 1,573,000.00 12,431,806.00

10,858,806.00 1,573,000.00 12,431,806.00

10,273,417.99 1,310,754.86 11,584,172.85

585,388.01 262,245.14 847,633.15

6,641,884.00 960,000.00 7,601,884.00

6,641,884.00 960,000.00 7,601,884.00

5,818,723.23 718,260.20 6,536,983.43

823,160.77 241,739.80 1,064,900.57

20,934,507.00 3,809,800.00 24,744,307.00

20,934,507.00 3,809,800.00 24,744,307.00

19,249,591.77 3,307,410.38 22,557,002.15

1,684,915.23 502,389.62 2,187,304.85

8,073,111.00 1,659,800.00 100,000.00 9,832,911.00

8,073,111.00 1,659,800.00 100,000.00 9,832,911.00

7,713,090.76 1,205,851.35 8,918,942.11

360,020.24 453,948.65 100,000.00 913,968.89

11,287,916.00 1,956,000.00 400,000.00 13,643,916.00

11,287,916.00 1,956,000.00 400,000.00 13,643,916.00

10,152,954.19 1,613,855.94 137,400.00 11,904,210.13

1,134,961.81 342,144.06 262,600.00 1,739,705.87

24,872,873.00 5,184,500.00 30,057,373.00

24,872,873.00 5,184,500.00 30,057,373.00

22,757,479.38 4,771,108.99 27,528,588.37

2,115,393.62 413,391.01 2,528,784.63

17,665,299.00 2,056,850.00 221,650.00 19,943,799.00

17,665,299.00 2,056,850.00 221,650.00 19,943,799.00

16,561,570.49 1,595,951.10 18,157,521.59

1,103,728.51 460,898.90 221,650.00 1,786,277.41

922,000.00 922,000.00

922,000.00 922,000.00

545,662.94 545,662.94

376,337.06 376,337.06

115

3 CODE FUNCTION/PROGRAM/PROJECT 1120 Information Services 1121 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1122 Library Services Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1130 Legal Services 1131 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1140 Prosecution Services 1141 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 1150 Adminstratiion of Justice 1151 RTC Branch I Maintenance & Other Operating Expenses 1151-1 RTC Branch II Maintenance & Other Operating Expenses 1151-2 RTC Branch III Maintenance & Other Operating Expenses 1151-3 RTC Branch IV Maintenance & Other Operating Expenses 1151-4 RTC Branch V Maintenance & Other Operating Expenses 1151-5 RTC Branch VI Maintenance & Other Operating Expenses 1151-6 Clerk of Court Maintenance & Other Operating Expenses 1151-7 4th Sharia"H Court Maintenance & Other Operating Expenses 1158 MTCC Branch I Maintenance & Other Operating Expenses 1158-1 MTCC Branch II Maintenance & Other Operating Expenses 1158-2 MTCC Clerk of Court in Cities Maintenance & Other Operating Expenses Sub-Total 1190 Miscellaneous General Public Services 1999 Others Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total APPROPRIATIONS ALLOTMENTS OBLIGATIONS BALANCES OF APPROPRIATIONS ALLOTMENTS

1,000,953.00 934,200.00 80,000.00 2,015,153.00

1,000,953.00 934,200.00 80,000.00 2,015,153.00

906,732.13 913,271.18 61,435.00 1,881,438.31

94,220.87 20,928.82 18,565.00 133,714.69

1,007,607.00 137,200.00 1,144,807.00

1,007,607.00 137,200.00 1,144,807.00

872,887.92 120,717.68 993,605.60

134,719.08 16,482.32 151,201.40

4,142,295.00 906,500.00 5,048,795.00

4,142,295.00 906,500.00 5,048,795.00

3,653,453.59 616,008.75 4,269,462.34

488,841.41 290,491.25 779,332.66

543,400.00 543,400.00

543,400.00 543,400.00

474,998.86 474,998.86

68,401.14 68,401.14

91,260.00 87,456.00 97,900.00 79,000.00 85,900.00 85,900.00 55,000.00 179,900.00 85,900.00 85,900.00 82,600.00 1,016,716.00

91,260.00 87,456.00 97,900.00 79,000.00 85,900.00 85,900.00 55,000.00 179,900.00 85,900.00 85,900.00 82,600.00 1,016,716.00

25,541.42 69,620.00 56,320.00 69,711.02 45,000.00 60,000.00 28,500.00 159,630.39 76,720.00 68,360.00 33,000.00 692,402.83

65,718.58 17,836.00 41,580.00 9,288.98 40,900.00 25,900.00 26,500.00 20,269.61 9,180.00 17,540.00 49,600.00 324,313.17

60,483,652.00 27,616,108.00 300,000.00 88,399,760.00

60,483,652.00 27,616,108.00 300,000.00 88,399,760.00

58,352,068.71 26,932,930.01 85,284,998.72

2,131,583.29 683,177.99 300,000.00 3,114,761.28

116

4 CODE FUNCTION/PROGRAM/PROJECT 1999-2 Register of Deeds Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 3000 Education, Culture, Sports and Manpower Development 3390 Other Education, Sports and Manpower Development Services 3391 Cultural Projects Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 3392 Sports Development/Physical Fitness Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 4000 Health Services 4410 Health Services 4411 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 4420 Hospital 4421 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 4990 Miscellaneous Health Services 4999 Others Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 6522 Housing and Community Development 6510 Housing Projects 6511 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 6540 Community Developmnent 6641 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total APPROPRIATIONS 1,798,600.00 1,798,600.00 ALLOTMENTS 1,798,600.00 1,798,600.00 OBLIGATIONS 1,777,068.38 1,777,068.38 BALANCES OF APPROPRIATIONS ALLOTMENTS 21,531.62 21,531.62

96,015.00 300,000.00 396,015.00 1,036,794.00 3,052,200.00 4,088,994.00

96,015.00 300,000.00 396,015.00 1,036,794.00 3,052,200.00 4,088,994.00

27,755.57 260,621.79 288,377.36 981,370.48 2,904,143.01 3,885,513.49

68,259.43 39,378.21 107,637.64 55,423.52 148,056.99 203,480.51

33,433,940.00 5,954,777.00 39,388,717.00

33,433,940.00 5,954,777.00 39,388,717.00

30,275,730.03 3,049,024.11 33,324,754.14

3,158,209.97 2,905,752.89 6,063,962.86

58,631,851.00 23,496,056.00 320,000.00 82,447,907.00

58,631,851.00 23,496,056.00 320,000.00 82,447,907.00

49,464,712.11 18,253,328.81 67,718,040.92

9,167,138.89 5,242,727.19 320,000.00 14,729,866.08

10,374,032.00 10,374,032.00

10,374,032.00 10,374,032.00

10,231,398.26 10,231,398.26

142,633.74 142,633.74

600,000.00 600,000.00

600,000.00 600,000.00

536,718.61 536,718.61

63,281.39 63,281.39

2,460,400.00 191,200.00 2,651,600.00

2,460,400.00 191,200.00 2,651,600.00

2,447,651.15 173,246.86 2,620,898.01

12,748.85 17,953.14 30,701.99

117

5 CODE FUNCTION/PROGRAM/PROJECT 6542 Resettlement, Zonal Improvement Projects, Urban & Rural Renewal, Etc. Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 7000 Social Welfare Services 7610 Social Welfare Services 7611 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 7620 Family Planning Services 7621 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 7990 Miscellaneous, Other Social Services 7999 Others Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8000 Economic Services 8710 Agricultural Services 8711 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8720 Veterinary Services 8721 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8730 Natural Resources Services 8731 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8750 Engineering Services 8751 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total APPROPRIATIONS ALLOTMENTS OBLIGATIONS BALANCES OF APPROPRIATIONS ALLOTMENTS

1,088,366.00 322,400.00 1,410,766.00

1,088,366.00 322,400.00 1,410,766.00

1,026,860.72 312,249.96 1,339,110.68

61,505.28 10,150.04 71,655.32

14,923,532.00 6,182,120.00 21,105,652.00

14,923,532.00 6,182,120.00 21,105,652.00

13,630,835.17 5,796,837.89 19,427,673.06

1,292,696.83 385,282.11 1,677,978.94

3,240,213.00 191,000.00 3,431,213.00

3,240,213.00 191,000.00 3,431,213.00

3,167,797.70 166,658.86 3,334,456.56

72,415.30 24,341.14 96,756.44

636,000.00 636,000.00

636,000.00 636,000.00

554,647.18 554,647.18

81,352.82 81,352.82

5,912,340.00 2,203,000.00 8,115,340.00

5,912,340.00 2,203,000.00 8,115,340.00

5,267,700.75 1,913,187.01 7,180,887.76

644,639.25 289,812.99 934,452.24

7,645,806.00 2,112,300.00 9,758,106.00

7,645,806.00 2,112,300.00 9,758,106.00

7,539,332.05 1,885,843.44 9,425,175.49

106,473.95 226,456.56 332,930.51

22,597,110.00 18,999,900.00 41,597,010.00

22,597,110.00 18,999,900.00 41,597,010.00

20,441,605.22 13,744,020.40 34,185,625.62

2,155,504.78 5,255,879.60 7,411,384.38

4,930,547.00 676,500.00 5,607,047.00

4,930,547.00 676,500.00 5,607,047.00

4,653,170.89 574,764.06 5,227,934.95

277,376.11 101,735.94 379,112.05

118

6 CODE FUNCTION/PROGRAM/PROJECT 8751-1 CEO-Planning, Designing & Programming Staff Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8751-2 CEO-Quality Control Division Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8751-3 CEO-Building & Industrial Safety Inspection Div. Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8752 CEO-Engineering Services Construction Division Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8753 CEO-Engineering Services Maintenance Division Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8754 CEO-Engineering Services Operation of Motor Pool Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8770 Operation of Water Works System 8771 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8810 Operation of Markets 8811 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8811-1 CEEDMO-Central Market Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total APPROPRIATIONS 4,763,393.00 353,854.00 5,117,247.00 ALLOTMENTS 4,763,393.00 353,854.00 5,117,247.00 OBLIGATIONS 4,529,482.79 350,864.03 4,880,346.82 BALANCES OF APPROPRIATIONS ALLOTMENTS 233,910.21 2,989.97 236,900.18

2,189,387.00 213,746.00 2,403,133.00

2,189,387.00 213,746.00 2,403,133.00

1,969,305.31 199,566.77 2,168,872.08

220,081.69 14,179.23 234,260.92

7,636,430.00 13,347,120.00 20,983,550.00

7,636,430.00 13,347,120.00 20,983,550.00

7,477,807.58 13,273,782.00

20,751,589.58

158,622.42 73,338.00 231,960.42

2,965,214.00 273,880.00 3,239,094.00

2,965,214.00 273,880.00 3,239,094.00

2,712,807.72 231,239.94 2,944,047.66

252,406.28 42,640.06 295,046.34

3,981,291.00 6,894,900.00 10,876,191.00

3,981,291.00 6,894,900.00 10,876,191.00

3,860,037.19 6,566,293.10 10,426,330.29

121,253.81 328,606.90 449,860.71

13,889,517.00 7,317,900.00 21,207,417.00

13,889,517.00 7,317,900.00 21,207,417.00

12,748,067.47 7,204,506.30 19,952,573.77

1,141,449.53 113,393.70 1,254,843.23

19,519,035.00 24,348,000.00 43,867,035.00

19,519,035.00 24,348,000.00 43,867,035.00

16,445,503.53 22,402,422.67 38,847,926.20

3,073,531.47 1,945,577.33 5,019,108.80

11,824,786.00 5,568,644.00 17,393,430.00 7,096,972.00 4,382,928.00 11,479,900.00

11,824,786.00 5,568,644.00 17,393,430.00 7,096,972.00 4,382,928.00 11,479,900.00

9,871,312.02 2,758,888.67 12,630,200.69 6,178,808.45 4,249,765.99 10,428,574.44

1,953,473.98 2,809,755.33 4,763,229.31 918,163.55 133,162.01 1,051,325.56

119

7 CODE FUNCTION/PROGRAM/PROJECT 8812 Operation of Slaughterhouse Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8820 Operation of Transportation System 8821 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8821-1 Integgrated Bus & Jeepney Terminal (South Bound) Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8850 Economic Development Programs 8859 Other Economic Development Projects Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8970 Livelihood Projects 8971 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 8990 Miscellaneous Economic Services 8999 Others Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9000 Other Purpose 9910 Local Development Projects - Public Debt. 9911 Loan Amortization - Domestic Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9911-1 Loan Amortization DBP-Hinaplanon Pumping Station Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9911-2 Loan Amortization DBP-IBJT/Drainage Improvement Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total APPROPRIATIONS 886,876.00 1,444,061.00 2,330,937.00 ALLOTMENTS 886,876.00 1,444,061.00 2,330,937.00 OBLIGATIONS 881,986.00 1,396,684.80 2,278,670.80 BALANCES OF APPROPRIATIONS ALLOTMENTS 4,890.00 47,376.20 52,266.20

3,432,700.00 3,432,700.00 4,124,000.00 4,124,000.00

3,432,700.00 3,432,700.00 4,124,000.00 4,124,000.00

2,120,096.98 2,120,096.98 3,597,401.07 3,597,401.07

1,312,603.02 1,312,603.02 526,598.93 526,598.93

19,120,000.00 12,573,680.00 31,693,680.00

19,120,000.00 12,573,680.00 31,693,680.00

16,385,209.17 6,168,600.00 22,553,809.17

2,734,790.83 6,405,080.00 9,139,870.83

2,575,822.00 453,000.00 3,028,822.00

2,575,822.00 453,000.00 3,028,822.00

2,447,822.16 343,593.08

2,791,415.24

127,999.84 109,406.92 237,406.76

44,572,000.00 44,572,000.00

44,572,000.00 44,572,000.00

44,500,000.00

44,500,000.00

72,000.00 72,000.00

120

8 CODE FUNCTION/PROGRAM/PROJECT 9912 Loan Amortization - Foreign Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9913 Interest Payments - Domestic Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9913-1 Interest Payments DBP-Hinaplanon Pumping Station Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9913-2 Interest Payments DBP-IBJT/Drainage Improvement Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9914 Interest Payments - Foreign Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9930 Retirement and Other Benefits 9931 Lump-Sum Appropriations Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9990 Miscellaneous Other Purposes 9993 Aids to National Government Agencies Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9994 Aids & Contributions to Government Agencies Other than National, Local, Not Elsewhere Classified Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total 9998 Budgetary Reserves Personal Services Maintenance & Other Operating Expenses Capital Outlay Financial Expenses Sub-Total Grand-Total APPROPRIATIONS 8,012,895.00 8,012,895.00 6,014,825.00 6,014,825.00 ALLOTMENTS 8,012,895.00 8,012,895.00 6,014,825.00 6,014,825.00 OBLIGATIONS 3,506,929.63 3,506,929.63 BALANCES OF APPROPRIATIONS ALLOTMENTS 8,012,895.00 8,012,895.00 2,507,895.37 2,507,895.37

37,642,814.00 5,116,000.00 42,758,814.00

37,642,814.00 5,116,000.00 42,758,814.00

33,494,421.42 3,947,500.00 37,441,921.42

4,148,392.58 1,168,500.00 5,316,892.58

1,820,000.00 1,820,000.00

1,820,000.00 1,820,000.00

1,805,000.00 1,805,000.00

15,000.00 15,000.00

23,523,132.00 23,523,132.00 47,592,250.00 47,592,250.00 P 1,012,706,016.29

23,523,132.00 23,523,132.00 47,592,250.00 47,592,250.00 P 1,012,706,016.29 P

23,461,240.05 23,461,240.05 15,542,501.47 15,542,501.47 882,659,510.21 P

61,891.95 61,891.95 32,049,748.53 32,049,748.53 P 130,046,506.08

121

Republic of the Philippines City Government of Iligan Buhanginan Hills, Pala-o, Iligan City
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES GENERAL FUND (Continuing Appropriations) 2012

Annex E

1 CODE FUNCTION/PROGRAM/PROJECT CONTINUING APPROPRIATIONS 1000 General Public Services 1020 Legislative Services 1021 Legistration Capital Outlay 1030 Adminstrative Services 1031 General Administration Capital Outlay 1032 Personnel Officer Capital Outlay 1040 Planning and Development Coordination 1041 General Administration Capital Outlay 1060 General Services 1061 General Administration Capital Outlay 1070 General Services 1071 General Administration Capital Outlay 1080 General Services 1081 General Administration Capital Outlay 1090 Treasury Services 1091 General Administration Capital Outlay 1100 Assessment of Real Property 1101 General Administration Capital Outlay 1102 Real Property Tax Administration Capital Outlay 1130 Legal Services 1131 General Administration Capital Outlay 4000 Healh Services 4420 Hospital 4421 General Administration Capital Outlay 4990 Miscellaneous Health Services 4999 Others Capital Outlay 6522 Housing & Community Development 6510 Housing Projects 6511 General Administration Capital Outlay Capital Outlay APPROPRIATIONS ALLOTMENTS OBLIGATIONS BALANCES OF APPROPRIATIONS ALLOTMENTS

35,814.00

35,814.00

24,800.00

11,014.00

58,185.00

58,185.00

10,620.00

47,565.00

840,255.00

840,255.00

177,500.00

662,755.00

1,082,100.00

1,082,100.00

1,062,900.00

19,200.00

7,759.72

7,759.72

7,759.72

101,916.62

101,916.62

101,916.62

977,155.74

977,155.74

773,130.00

204,025.74

206,955.76

206,955.76

160,000.00

46,955.76

134,150.00

134,150.00

134,150.00

28,062.00

28,062.00

28,062.00

25,040.00

25,040.00

25,040.00

414,675.00

414,675.00

135,000.00

279,675.00

41,004,087.18

41,004,087.18

2,367,576.15

38,636,511.03

54,670.00 413,822.97

54,670.00 413,822.97

54,670.00 413,822.97

122

2 CODE FUNCTION/PROGRAM/PROJECT 8000 Economic Sevices 8710 Agricultural Services 8711 General Administration Capital Outlay 8720 Veterinary Services 8721 General Administration Capital Outlay 8730 Natural Resources Services 8731 General Administration Capital Outlay 8750 Engineering Services 8751 General Administration Capital Outlay 8751-2 CEO-Quality Control Division Capital Outlay 8752 CEO-Engineering Services contruction Division Capital Outlay 8753 CEO-Engineering Services Maintenance Division Capital Outlay 8770 Operation of Waterworks System 8771 General Administration Capital Outlay 8810 Operation of Markets 8811 General Administration Capital Outlay 8811-1 CEEDMO-Central Market Capital Outlay 8812 Operation of Slaughterhouse Capital Outlay 8820 Operation of Transportation System 8821 General Administration Capital Outlay 8850 Economic Development Programs 8859 Other Economic Development Projects Maintenance & Other Operating Expenses Capital Outlay 8990 Miscellaneous Economic Services 8999 Others Maintenance & Other Operating Expenses 9000 Other Purposess 9990 Miscellaneous Other Purposes 9998 Budgetary Reserves Maintenance & Other Operating Expenses Total APPROPRIATIONS ALLOTMENTS OBLIGATIONS BALANCES OF APPROPRIATIONS ALLOTMENTS

222,022.35

222,022.35

95,021.92

127,000.43

6,500.00

6,500.00

6,500.00

131,590.73

131,590.73

8,000.00

123,590.73

300,000.00

300,000.00

300,000.00

86,470.00

86,470.00

86,470.00

5,000.00

5,000.00

5,000.00

123,055.00

123,055.00

117,500.00

5,555.00

253,507,167.46

253,507,167.46

94,448,875.47

159,058,291.99

20,000.00

20,000.00

20,000.00

4,350.00

4,350.00

4,350.00

25,775.24

25,775.24

25,775.24

150,000.00

150,000.00

59,328.00

90,672.00

8,564,807.59 46,474,787.49

8,564,807.59 46,474,787.49

2,017,542.94 22,409,627.99

6,547,264.65 24,065,159.50

47,000,000.00

47,000,000.00

47,000,000.00

95,159,527.76 P 497,165,702.61

95,159,527.76 P 497,165,702.61 P

33,162,597.08 157,030,019.55 P

61,996,930.68 340,135,685.06

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Annex F

Republic of the Philippines City Government of Iligan Buhanginan Hills, Pala-o, Iligan City
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES SPECIAL EDUCATION FUND 2012 BALANCES OF OBLIGATIONS APPROPRIATIONS ALLOTMENTS

CODE FUNCTION/PROGRAM/PROJECT I - Current Year Appropriations 3000 Education, Cultures, Sports and Mapower Development 3310 School Supervison 3311 General Administration Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 3320 Public Education 3321 Elementary Schools Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 3322 Secondary Schools Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 3325 Adult Education Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total

APPROPRIATIONS

ALLOTMENTS

28,610,906.00 6,630,950.00 5,198,805.14 40,440,661.14

28,610,906.00 6,630,950.00 5,198,805.14 40,440,661.14

26,955,402.65 3,056,191.59 928,752.60 30,940,346.84

1,655,503.35 3,574,758.41 4,270,052.54 9,500,314.30

11,047,628.00 11,047,628.00

11,047,628.00 11,047,628.00

10,221,525.62 10,221,525.62

826,102.38 826,102.38

14,125,669.00 14,125,669.00

14,125,669.00 14,125,669.00

12,420,077.86 12,420,077.86

1,705,591.14 1,705,591.14

903,500.00 308,000.00 1,211,500.00

903,500.00 308,000.00 1,211,500.00

887,300.00 240,296.89 1,127,596.89

16,200.00 67,703.11 83,903.11

3390 Other Education, Sports and Manpower Development Services 3392 Sports Development/Physical Fitness Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 3399 Sundry Educational Services Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total Grand-Total

5,060,000.00 5,060,000.00

5,060,000.00 5,060,000.00

4,738,719.30 4,738,719.30

321,280.70 321,280.70

500,000.00 500,000.00 72,385,458.14

500,000.00 500,000.00 72,385,458.14

247,000.00 247,000.00 59,695,266.51

253,000.00 253,000.00 12,690,191.63

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Annex G Republic of the Philippines City Government of Iligan Buhanginan Hills, Pala-o, Iligan City STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES SAGF-20% DEVELOPMENT FUND 2012 BALANCES OF APPROPRIATIONS ALLOTMENTS

CODE FUNCTION/PROGRAM/PROJECT I - Current Year Appropriations 4000 Health Services 4910 Local Development Fund 4918 Purchase, Construction & Improvements of Government Facilities - Health Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8000 Economic Services 8910 Local Developemt Fund 8911 Agricultural Development Projects Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8917 Repair & Maintenance of Government Facilities - Economic Services Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8918 Purchase, Construction & Improvement of Government of facilities - Economic Services Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8919 Calamity Fund Personal Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 9000 Other Purposes 9910 Local Development Projects-Public Debt 9911 Loan Amortization - Domestic Financial Services Sub-Total 9912 Loan Amortization-Foreign Financial Expenses Sub-Total 9913 Interest Payments-Domestics Financial Expenses Sub-Total Grand-Total

APPROPRIATIONS

ALLOTMENTS

OBLIGATIONS

1,654,300.00 1,654,300.00

1,654,300.00 1,654,300.00

483,651.68 483,651.68

1,170,648.32 1,170,648.32

33,000.00 33,000.00

33,000.00 33,000.00

33,000.00 33,000.00

2,285,800.00 1,659,907.00 3,945,707.00

2,285,800.00 1,659,907.00 3,945,707.00

38,803.27 109,969.00 148,772.27

2,246,996.73 1,549,938.00 3,796,934.73

52,765,665.94 52,765,665.94

52,765,665.94 52,765,665.94

34,530,342.65 34,530,342.65

18,235,323.29 18,235,323.29

2,876,388.00 2,876,388.00

2,876,388.00 2,876,388.00

1,775,400.00 1,775,400.00

1,100,988.00 1,100,988.00

91,561,721.00 91,561,721.00 2,066,315.00 2,066,315.00 41,922,649.00 41,922,649.00 P 196,825,745.94

91,561,721.00 91,561,721.00 2,066,315.00 2,066,315.00 41,922,649.00 41,922,649.00 P 196,825,745.94 P

59,421,290.60 59,421,290.60 2,066,314.01 2,066,314.01 35,507,763.16 35,507,763.16 133,933,534.37 P

32,140,430.40 32,140,430.40 0.99 0.99 6,414,885.84 6,414,885.84 62,892,211.57

125

Annex H Republic of the Philippines City Government of Iligan Buhanginan Hills, Pala-o, Iligan City STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES SAGF-20% DEVELOPMENT FUND (Continuing Appropriations) 2012 BALANCES OF CODE FUNCTION/PROGRAM/PROJECT APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS Continuing Appropriations 4000 Health Services 4910 Local Development Fund 4918 Purchase, Construction & Improvements of Government Facilities - Health Maintenance & Other Operating Expenses Capital Outlay Sub-Total 4919 Others Maintenance & Other Operating Expenses Capital Outlay Sub-Total 6522 Housing and Community Development 6910 Local Development Fund 6917 Repair & Maintenance of Gov't. FacilitiesHousing & Community Development Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8000 Economic Services 8850 Economic Development Programs 8859 Other Economic Development Projects Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8910 Local Development Fund 8911 Agricultural Development Projects Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8912 Tourism Projects Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8917 Repair & Maintenance of Government Falicities - Economic Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8918 Purchase, Construction & Improvement of Government of facilities - Economic Services Maintenance & Other Operating Expenses Capital Outlay Sub-Total 8919 Calamity Fund Maintenance & Other Operating Expenses Capital Outlay Sub-Total 9000 Other Purposes 9910 Local Development Projects - Public Debt 9911 Loan Amortization - Domestic Maintenance & Other Operating Expenses Financial Expenses Sub-Total Grand-Total P 27,066,167.41 27,066,167.41 133,230,467.02 P 27,066,167.41 27,066,167.41 133,230,467.02 P 8,209,632.43 8,209,632.43 35,660,687.60 P P 18,856,534.98 18,856,534.98 97,569,779.42 5,111,686.67 14,486,427.69 19,598,114.36 5,111,686.67 14,486,427.69 19,598,114.36 2,115,617.96 2,097,061.46 4,212,679.42 2,996,068.71 12,389,366.23 15,385,434.94 71,716,498.21 71,716,498.21 71,716,498.21 71,716,498.21 18,362,293.56 18,362,293.56 53,354,204.65 53,354,204.65 1,858,299.79 2,793,461.21 4,651,761.00 1,858,299.79 2,793,461.21 4,651,761.00 37,240.00 2,600,236.17 2,637,476.17 1,821,059.79 193,225.04 2,014,284.83 1,403,035.37 1,459,392.37 2,862,427.74 1,403,035.37 1,459,392.37 2,862,427.74 126,700.00 126,700.00 1,403,035.37 1,332,692.37 2,735,727.74 953,784.88 1,743,951.12 2,697,736.00 953,784.88 1,743,951.12 2,697,736.00 953,784.88 1,743,951.12 2,697,736.00 46,110.45 46,110.45 46,110.45 46,110.45 46,110.45 46,110.45 758,171.17 141,358.50 899,529.67 758,171.17 141,358.50 899,529.67 138,980.00 92,873.38 231,853.38 619,191.17 48,485.12 667,676.29 195,283.86 3,496,838.32 3,692,122.18 195,283.86 3,496,838.32 3,692,122.18 1,880,052.64 1,880,052.64 195,283.86 1,616,785.68 1,812,069.54

126