1. Cash gift amounting to 25,000.

00 was paid in advance, contrary to Department of

Budget and Management (DBM) Budget Circulars No. 2016-4.

Post-audit of benefits granted to barangay officials and employees disclosed that a cash
gift amounting to 25,000.00 was disbursed and received by the payees on May 5, 2016 thru
check number 439035.

The advance payment of benefit was contrary to Section 6 DBM Budget Circular No.
2016-4 dated April 28, 2016 which provides that the Cash Gift of 5,000 shall be given to
entitled government personnel not earlier than November 15 of the current year, subject to the
following conditions: Personnel has rendered at least a total or an aggregate of four (4) months of
service from January 1 to October 31 of the current year; and Personnel remains to be in the
government service as of October 31 of the same year.

This irregular payment exposes the government fund to risk of loss which could have
risen due to non-compliance within the prescribed time of distribution.

We recommended that the Punong Barangay instruct the Barangay Treasurer to

stop the practice of paying the benefits in advance and strictly adhere to the provisions of
DBM Budget Circular Nos. 2016-4.

3. Payment of travelling expenses incurred for Lakbay Aral (GO-FAR) of nine

Barangay Officials and staffs of Zone III totaling 60,000.00 was not in accordance with
Executive Order (EO) No. 298 dated March 23, 2004 which resulted in overpayment of
claim totaling 7,600.00.

Audit of cash advances revealed that Barangay Zone III, Socorro, Oriental Mindoro
incurred expenses totaling 60,000.00 for the Lakbay Aral (GO-FAR) of nine Barangay Officials
of Bagsok held at La Trinidad, Benguet on February 9 to 11, 2016, as shown in the next page.

Name Amount
1. Juanito D. Plata 6,000.00
2. Marilyn S. Bidon 6,000.00
3. Reynaldo A. Mapalad 6,000.00
4. Ricaredo R. Cruzado 6,000.00
5. Delfin S. Mendroz Jr. 6,000.00
6. Juanita Y. Ola 6,000.00
7. Michael M. Sapungan 6,000.00
8. Jerry T. Marayan 6,000.00
9. Ivy Crisanta L. Magsino 6,000.00
10 . Brenda M. Alda 6,000.00
Total 60,000.00
 Perusal of the voucher and its supporting documents showed the following observations:

a. The 6,000.00 given to each official is broken down into 2,600.00 which was the budget
per Barangay officials and staffs for transportationavailed to Four Seasons Travel and Tours,
as shown below.

Particulars Amount
Transportation Expenses
Bus: Socorro to Manila vice versa 1,400.00
Bus: Manila to Baguio vice versa 1,200.00
Total Budgetary Requirements 2,600.00
No. of Participants x 10
Total 26,000.00

The remaining 3,400.00 of the cash advance was subsequently disbursed by the barangay
officials and staff as their per diem from February 8 to 11, 2016, as shown below.

Date Amount
February 8 800.00
February 9 800.00
February 10 800.00
February 11 800.00
February 12 400.00
Less: (excess) (200.00)
Total 3,400.00
No. of Participants x 10
Total 34,000.00

The amount of 200.00 was deducted from the above schedule because 6,000.00 is only the
paid claim per employee but the total amount of transportation and per diem is 6,200.00.
b. Based on their Liquidation Report, the Officials and Staffs of Barangay Bagsok arrived in
Baguio on February 9, 2016 at 12:00 P.M and departed in Baguio on February 12, 2016 at
8:00 A.M.

c. The claims of the Barangay Officials for travelling allowance of 60,000.00 exceeded the
allowed allowance totaling 52,400.00 by 7,600.00, as shown below.

Hotel/
Lodging Meals Incidental
Day (50%) (30%) (20%) Total
February 8, 2016 Not entitled Not entitled Not entitled 0.00
February 9, 2016 400.00 240.00 160.00 800.00
February 10, 2016 400.00 240.00 160.00 800.00
February 11, 2016 400.00 240.00 160.00 800.00
February 12, 2016 Not entitled 80.00 160.00 240.00
Total Allowed 2,640.00
Claimed ( 3,400.00)
Excess claim 760.00
No. of Participants x 10
Excess Payment 7,600.00

This was contrary to Section 4 of EO no. 298 provides that travel expenses of government
personnel regardless of rank and destination shall be in the amount of Eight Hundred Pesos
(800.00) per day shall be apportioned as follows: (a) fifty percent (50%) for hotel/lodging;
(b) thirty percent (30%) for meals; and (c) twenty percent (20%) for incidental expenses.

We recommend that the Barangay Officials concerned refund the amount of

7,600.00 for overpayment and the Barangay Officials ensure compliance with the
provisions set forth in Section 4 of EO No. 298.