STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT RECOMMENDATIONS

Of the 15 audit recommendations contained in the Annual Audit Report of the preceding
year, five (5) were fully implemented, one (1) was partially implemented and nine (9) were not
acted upon. Details are as follows:

Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation

1. The RPT We reiterate our CY No action yet Not The City

Receivable previous years 2009 Implemented Treasurer was
(127) and SET recommendation AAR Reiterated in not able to
Receivable that the City Finding No. 3.1 generate the list
(128) set-up by Treasurer should of taxpayers and
the City expedite the the amount of tax
Accountant at completion of the due and
the beginning cleansing/ collectible from
of the year updating of the the existing Real
were based on database of real Property
estimates due property units as Taxation System.
to the inability reported by the
of the City City Assessor to
Treasurer to provide the City
finish the Accountant with a
cleansing/ certified list of
updating of the taxpayers and the
database of the correct amount of
real property tax due and
units (RPUs) collectible, as
and to submit required under
the required Section 20,
certified list of Volume 1 of the
taxpayers NGAS Manual.
showing the
amount of
taxes due and
collectible for
the year,
contrary to
Section 20,
Volume I of the
New
Government
Accounting

57
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
System
(NGAS)
Manual. As a
result, the year-
end balances of
the RPT
Receivable and
SET
Receivable as
well as their
contra accounts
amounting to
P682.32
million and
P29.51 million,
respectively
could not be
relied upon.

2. The We advise CY No action yet Not Physical count of

validity and management to 2009 Implemented inventories was
correctness of require the City AAR Reiterated in not conducted
inventory General Services Finding No. 4.1 and submission
accounts Officer to conduct of SSMI was not
totaling a physical updated due to
P553.55 inventory of the apathy of the
million could supplies and majority of
not be materials every property
ascertained due semester and to custodians
to the failure of submit the assigned in the
the City inventory report different offices/
General thereon pursuant departments to
Services to Section 124, implement our
Officer to Volume I of the recommendation.
conduct a NGAS Manual.
physical Require also the
inventory of Property
supplies and Custodians of all
materials and requisitioning
to prepare a departments/
Consolidated offices to prepare

58
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
Summary of weekly the SSMI
Supplies and to be submitted to
Materials the City General
Issued (SSMI) Services Office
for the last for consolidation.
quarter of CY Copies of the
2009 as inventory report
required under and the
Sections 121 consolidated
and 124, SSMI should be
Volume I of the submitted to the
NGAS Manual. City Accountant
so that the correct
value of the
supplies inventory
accounts may be
presented in the
financial
statements at the
end of the year.

3. Unliquidate Management is CY No action yet Not The audit

d cash advised to strictly 2009 Implemented recommendation
advances had monitor and cause AAR Reiterated in was not given
accumulated to the liquidation of Finding No. 4.2 attention by
P177.07 long outstanding management,
million at year- cash advances to thus liquidation
end due to preclude loss or of cash advances
continuous misuse of has not improved
disregard by government
the concerned funds. The
City officials accountable
and employees officers
of the rules and concerned should
regulations in be warned that
the grant, failure to
utilization and liquidate their
liquidation of cash advances
cash advances within the
prescribed prescribed period
under COA shall constitute

59
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
Circular No. valid cause for the
97-002 dated withholding of
February 10, their salaries and
1997. This allowances.
practice, if not
corrected,
exposes
government
funds to
possible loss or
misuse by the
accountable
officers.

4. The We advise the City CY No action yet Not Our

reconciliation General Services 2009 Implemented recommendation
of records Officer to furnish AAR Reiterated in was not given
being the City Finding No. 2.2 attention, thus
maintained by Accountant with the City
the City the result of the Accountant was
Accountant and physical count of not furnished
the City animals at the with the results
General Manila Zoo. of the inventory
Services Reconciliation of count and
Officer for the their respective reconciliation of
Work/Other records should be records being
Animals (281) conducted so that maintained by
account was the discrepancy the CGSO and
not conducted, could be adjusted the City
contrary to to present the Accountant was
Section 114, correct value of not conducted.
Volume I of the the Work/Other
NGAS Manual, Animals account
thus the in the financial
discrepancy of statements.
P14.88 million
could not be
adjusted.

5. The non- The City CY The amount Fully

60
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
reconciliation Accountant is 2009 of P144.25 Implemented
of the inter- advised to exert AAR million has
fund receivable her best effort to already been
and payable facilitate the released to the
accounts under reconciliation of SEF form the
the General the Due to Other General Fund
and the Special Funds - SEF in the under Check
Education General Fund No. 618597
Funds hindered books and Due dated January
the release of from Other Funds 24, 2011.
the remaining - General Fund
one percent under the SEF so
(1%) tax levied that the remaining
on real balance of Special
property in Education Taxes
prior years for could be released
the Special to the City Schools
Education Board in a timely
Fund manner.
amounting to
P144.25
million,
contrary to
Section 272 of
R.A. 7160 and
Section 363 of
its
Implementing
Rules and
Regulations.

6. Withholdin We advise CY No action yet Not The audit

g taxes due the management to 2009 Implemented recommendation
BIR and consider the AAR Reiterated in was not given
contributions remittance of Finding No. 4.5 much attention
due the GSIS, withholding taxes by management,
Pag-ibig and and contributions thus, remittances
Philhealth to respective of withholding
totaling agencies as a taxes and
P197.68 priority obligation contributions
million, P85.60 of the City. The were still

61
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
million, P5.93 City Accountant delayed.
million and should be directed
P4.12 million, to submit the
respectively, monthly
were not remittance
remitted to the voucher for the
concerned said trust receipts
agencies within to the In-Charge of
the prescribed the Office, City
period, thus, Treasurers Office
may result to within five days
the payment of after the end of
interest or each month.
penalty, the
deprivation of
the benefits
and privileges
accruing to the
members or the
misuse of such
receipts.

CY
7. The We reiterate our 2009 No action yet Not Computation of
barangays were previous AAR Implemented the share of each
denied of the recommendation Reiterated in barangay was
immediate use for management to Finding No. 4.4 still done
of their thirty enjoin the manually, thus
percent (30%) accounting remittances of
share from the personnel the said share
basic real concerned to exert were still
property tax their best efforts to delayed.
collections due expedite the
to the failure of computation of the
the City to share of each
remit the same barangay from the
promptly and real property tax
regularly, collections so that
contrary to timely release
Section 271(d) thereof to the
of RA 7160. barangay
treasurers on a

62
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
quarterly basis
could be made
pursuant to
Section 271(d) of
RA 7160.

8. The The City CY Perpetual Fully

required Accountant is 2009 inventory Implemented
procedures on advised to adopt AAR system is now
inventory the perpetual being adopted
control and the inventory system in recording
proper in recording the procurement
accounting for purchases of of textbooks
the textbooks and and
procurement of instructional instructional
textbooks and materials. materials.
instructional Likewise, the
materials were Property
not followed, Custodian of the
rendering the City Schools
absence of a Division Office
year-end should be
balance for the instructed to
Textbooks and conduct a physical
Instructional count of the items
Materials that are still in
Inventory their custody and
account and its to submit an
reciprocal inventory report to
expense the City
account Accountant so that
amounting to the necessary
P74.00 million adjustment could
unreliable. be effected in the
accounting
records.

CY
The City Schools 2009 The additional Fully
9. The Board is advised AAR incentive Implemented
additional to refrain from allowance

63
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
incentive utilizing the SEF being paid to
allowance paid for purposes other teachers are
to elementary than those now charged
and secondary projects/program/ to the General
public school activities Fund.
teachers enumerated in
totaling P48.82 Section 272 of RA
million were 7160 and DECS,
improperly DBM and DILG
charged to the Joint Circular No.
Special 1 series of 1998.
Education
Fund. Said Moreover,
expenditures management
reduced the should seek
fund intended authority from the
to finance the City Council to
priority make the
projects/ necessary
activities budgetary
identified adjustments so
under Section that the additional
272 of RA incentive
7160 and allowances
DECS, DBM granted to public
and DILG Joint school teachers
Circular No. 1 may be properly
series of 1998. charged against
the General Fund
and the same
amount may be
returned to the
SEF.

All concerned CY Rendition of Fully

department heads 2009 overtime Implemented
10. The City are advised to AAR work is now
incurred provide adequate regulated.
unnecessary planning of the
overtime work activities of
expenses their staff and to

64
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
amounting to conduct thorough
P23.28 million review of the work
due to its assignments stated
failure to in the Request for
adequately plan Authority to
work activities Render Overtime
to be done by Service before
the personnel recommending the
of the different same for approval
offices of the by the City Mayor
City, and to to avoid
review the unnecessary
work to be overtime work, by
performed as considering the
stated in their following:
request for
authority to employees
render allowed to
overtime, render overtime
thereby services;
allowing such specific
overtime for activities for
work activities which overtime
that are not is allowed;
urgent in nature maximum
and can be number of
accomplished overtime hours
during regular per month per
office hours, in employee;
violation of overtime rate;
Section 2.1 of officials who
Budget shall supervise
Circular No. the overtime
10. work;
accomplishment
reports to be
prepared and
submitted; and
authority to
approve
requests and

65
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
payments for
overtime
services.

We recommend CY In the hiring Fully

11. The that in the 2009 for plantilla Implemented
limitations in subsequent hiring AAR items, priority
the hiring of of personnel, the is now being
personnel on City Personnel given to
temporary Officer should applicants
appointments strictly follow the with
under Rule III, guidelines appropriate
Section 2 (b) of provided for under civil service
Civil Service Rule III, Section 2 eligibility.
Commission- (b) of Civil
Memorandum Service
Circular No. Commission
40, Series of Memorandum
1998 were not Circular No. 40,
strictly Series of 1998.
observed by Further, before
the City hiring job
Personnel applicants on
Office. As a temporary
result, the appointments,
temporary priority should be
appointments given to applicants
issued by the having the
City were appropriate civil
invalidated by service eligibility
the Civil to ensure approval
Service thereof by the
Commission, CSC.
which served
as the basis in
disallowing in
audit the
corresponding
salaries of the
concerned
personnel
totaling P3.59

66
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
million. The management
should compel the CY The City Partially As of December
concerned 2009 Treasurer sent Implemented 31, 2010, the
12. The City contractors/ AAR notices to the amount of P1.73
could have suppliers concerned million has been
generated an transacting contractors collected from
additional business with the and suppliers contractors/
income of at barangays and the to compel suppliers with
least P8.12 City Government them to settle business tax
million from to immediately their unpaid deficiencies.
business taxes settle their tax business taxes
and fees had deficiencies and fees.
the concerned including
personnel from surcharges and
the Business interests pursuant
License to the pertinent
Division of the provisions of City
City Ordinance No.
Treasurers 7794.
Office strictly Likewise, the
enforced the measures provided
measures under the said
provided under Ordinance and
Section 44 of Section 171 of
City Ordinance R.A. 7160 should
No. 7794 and be immediately
Section 171 of implemented to
R.A. 7160. ensure that the
correct amount of
business taxes and
fees due the City
are collected.

We recommend
that management CY No action yet Not The audit
enjoin the 2009 Implemented recommendation
concerned City AAR Reiterated in was not given
13. Manageme officials to enforce Finding No. 5.2 much attention
nt failed to the collection of by management,
collect the unpaid rentals of thus, the

67
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
rent and the ADC totaling receivable from
corresponding P76.07 million ADC further
interests including interest, increased.
totaling P76.07 and instruct the
million due City Treasurer to
from the demand immediate
Associated settlement thereof.
Development In case of non-
Corporation settlement by
(ADC), ADC, exhaust all
contrary to legal remedies to
paragraph 4 of protect the interest
the of the City.
supplementary
contract on
leased property
dated August 1,
2003, Section
169 of RA
7160 and
Section 42 of
City Ordinance
No. 7794, due
to the inability/
leniency of the
previous
administration
to enforce
collection and
the absence of
a formal
turnover of
documents to
and from the
different
offices
handling the
patrimonial
property
portfolio of the We advise the
City. management to CY No action yet Not
require the GAD 2009 Implemented No GAD Plan

68
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
Executive AAR Reiterated in outlining the
14. The Committee to Finding No. 4.8 programs,
economy, catalyze, projects and
efficiency and coordinate, activities to
effectiveness of provide direction address gender
the agencys to and ensure the issues and
policies, implementation of concerns was
programs and the plans and developed during
activities in programs on the year due to
addressing gender and the failure of the
gender issues development as GAD Executive
could not be mandated by Committee to
ascertained Executive Order give attention to
because the No. 4, Series of our
City was 2003 of the City recommendation.
unable to Mayor. The
formulate a Committee should
Gender and also be directed to
Development prepare the Annual
Plan (GAD GAD Plan and
Plan) for CY budget, which
2009 and to shall include the
earmark at least specific programs,
five percent of projects and
its total budget activities with the
appropriations corresponding
specifically for estimated cost
gender and designed to
development in address gender
violation of issues within the
Joint Circular City.
No. 2004-1 of
the Department
of Budget and
Management
(DBM),
National
Economic
Development
Authority
(NEDA) and
the National

69
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
Commission on
the Role of
Filipino
Women We advise the
(NCRFW). concerned City CY No action yet Not
officials and 2009 Implemented Appropriate
employees to see AAR Reiterated in actions were not
15. The current to it that the Finding No. 8.1 taken by
years audit requirements of management on
suspensions the transactions the deficiencies
and suspended in audit noted in audit as
disallowances are complied contained in the
totaling P14.15 within the Notices of
million and prescribed period. Suspension and
P343.12 Likewise, the Disallowance.
million settlement of audit
respectively, disallowances and
remained charges should be
unsettled at the strictly enforced
end of the year by withholding the
due to the salaries or other
failure of the compensation due
persons liable the persons liable
thereto to who are still
comply with employed with the
the City Government
requirements in satisfaction of
stated in the the amount
Notices of disallowed or
Suspensions charged. For those
and officials and
Disallowances. employees who
Moreover, were already
prior years separated from the
audit government
disallowances service,
of P338.06 management
million should employ all
remained possible means
dormant in the provided by law
books of for the
accounts extinguishment of

70
 Reason for
Management Partial/Non
Recommendation Ref Action Status of -
Implemen Implement
tation ation
because the their obligations.
concerned City
officials were
unable to
enforce their
settlement
pursuant to the
pertinent
provisions of
COA Circular
No. 2009-006
dated
September 15,
2009.

71