a\,

Republic of the Philippines

COMMISSION ON AUDIT
Office of the City Auditor
Pasay City

AOMNo. :2020-001-8136
Date . January 28,2A20

AUDrr 0BSERVATTON MEMORANDUM (AOM)

For: Hon.I(RISLYNE MARTY DG. YAMBOT

Punong Barangay
Barangay 136,Zone 15
City of Pasay

Attention: Ms. Ma. Conehita B. Cayanan

City Budget Officer

Mr. Nemesio R. Anunciado

Chairman, Committee on Appropriations

We have audited the disbursement transactions of the 2Ao/o Development Fund of the
barangay for calendar year (CYs) 2Ol2to 2018 and observed the following:

a. Disbursements for ineligible expenses totalling P1,121,481.00 from CYs 2012 to 2018
were charged against the 20o/o Development Fund (DF) due to formulation of budget
that is not in accordance with Section 3.0 of DILG-DBM JMC No. 2011-1. thus
resulted to improper utilization of the funds.

Section 3.0 of the DILG-DBM Joint Memorandum Circular (IMC) No. 201 1 -1 erpresslv
provides:

..3.0 PROJECTS CO\'ERED

The 20o/o of the IRA intended for developrnent projects may be utilized lbr the
following priority programs and projects:

3.1 Social Development

3.1.1 Construction or rehabilitation of health centers, rura1 health units

or hospitals, and purchase of medical equipment,

3.1.2 Construction or rehabilitation of local government ou'ned pr:tabie

water suPPlY system;

3. I 3 Establishment or rehabilitation of Manpou'er Der elopnlent

 Centers;

3.1.4 Construction or rehabilitation of evacuation centers;

3.1.5 Purchase or repair of area-wide calamity related alarm or warning

system;

316 Rehabilitation of culturaVhistorical sites'

3.1.7 Purchase or . repair of appropriate. calamity-related rescue
operations equipment such as inflatable boats. breathing apparatus,
extraction tools, safe line rescue ropes, fire extinguishers,
chainsaws, two (2) way handheld radios and the like;

3.1.8 Purchase and development of land for the relocation of informal

settlers and relocation of victims of calamities;

319 Construction or rehabilitation of facilities such as multi- qufpose

hall intended to cater out-of school youths, women, senior citizens,
minors, displaced families, indigenous people and differently-abled
persons; and

3.1.10 Installation and maintenance of street lighting system except

payment of electric bills.

3.2 Economic Management

3.2.1 Construction/rehabilitation of a communal irrisation or water

impounding system and purchase ol post-harvest Tacilities such as
farm or hand tractor with trailer, thresher and mechanical driers.

3.2.2 Construction or rehabilitation of local roads or bridges and

purchase of appropriate engineering equipment such as dump
trucks, graders and pay loaders,
3.2.3 Capital expenditures related to the implementation of livelihood or
entrepreneurship/local economic development projects; and

3.2.4 Amortization of loans used to finance development projects cited

in this Joint Circular, subject to the 20Yo debt service cap

3. 3 Environmental Management

331 Reforestation and urban greening;

332 Construction or rehabilitation of sanitarv landfills. material

recovery facilities and purchase of garbage trucks and related
equlpment;

3.3 3 Implementation of flood and erosion control projects such as

rehabilitation and construction of drainage systems, de- silting of
rivers, de-clogging of canals. and
3.3.4 Other environmental management projects that promote air and
water quality, as r.t'ell as productivity ofl coastal or freshuater
habitat. agricultural land and forest land.
For CYs 20l2to 2017, the appropriation of the barangay for the }OyoDF are as follows.

Year Annual Budget

2012 232,458.00
20t3 216.597.40
2414 244,767.40
2015 279,488.44
2416 307,341.20
2017 365,386.00
2018 392,448.60
Total 2,038,446.6

Review of transactions revealed that the barangay has utilized the 20Ya DF for programs,
projects and activities (PPAs) totalling P1,121,481.00 which is not in accordance with
DILG-DBM Joint Memorandum Circular No. 2011-1. Audit disclosed that the root cause
identified is the fact that the approved budget included those items in the 20% DF PPAs,
though not in accordance with Section 3.0 of DILG - DBM JMC NO. 2011-1. However, it
was noted that some of the PPAs amounting to P134,900.00 may be charged to the
Barangay Disaster Risk Reduction and Management Fund (BDRRMF) instead of the 20%
DF. Details are as follows:

Year May be charyed

Particulars Amount
to BDRRMF
2012 Partial par'ment for purchase of CCTV Camera P231.280.00
2013 Par,ment lbr tlie purchase of rnaterials for trstallatioa of 99,915.00
additional CCTV
201jl Purchase of rescue and medical supplies 49,900.00 P.l9"900.00
2015 Parment tbr the purchase ol CCTV 350,000.00
2016 Purchase of rescue supphes 30.000 00 30.000 00
Purchased oi fibreelass erlelsion ladder 20.000 00
Purchase oi Pubhc Address 50,000.00
Sub-total 100,000.00
201'7 Purchase oi niedrcal suppl-res 30,000.00 30.000 00
Purchase oince a-s Christmas package t-or Year-end 235.386"00
Evaluation
Sub-total 265,386.00
2018 Rescue and Medical supplies 25,{m0.00 25.000 0t)
Total P1,121,{81.00 P13{,900.00

The above-mentioned PPAs are not among those enumerated under Item no 3 of the
JMC, thus, it defeated the purpose for which the fund was created.

We recommend that the Barangay:

a. Explain why the expenditures amounting to P1,121,481.00 should not be

disallowed in audit as being an inetigible expenses;

b. Ensure that the 20% DF shall be utilized to finance only those development
PPAs as enumerated under Section 3.0 of DILG-DBM JMC No.20ll-1; and
 c. Require the City Accountant to transfer the amount of P134,900.00 under
the Trust Liability - BDRMMF account to the 20% DF and made it available
for re-appropriation in the succeeding budgeting period.

b. Unexpended balance of P275,396.00 and P72,408.60 for CYs 2Ol7 and 2018,
respectively' were not re-appropriated in the ensuing years contrary to Section II.4
of DILG Memorandum Circular No. 974A.

Section II.4 of DILG Memorandum Circular No. 97-30 states that. "Any reverted
unexpended balance of the 20Yo Development Fund during the year shall be re-
appropriated to finance only those development programs, projects or activities (PPAs)
identi{ied to be funded under the 200% Development Fund for the ensuing year."

For CY 2018,tbe20Yo DF has a total appropriation of P392,408.60 computed at2OYo of

the actual IRA collected for the same year. Audit revealed that there was an unexpended
balance of P72,4A8.60 in CY 2018 This amount, together with the CY 2017 unexpended
balance of P275,396.00, brought the total amount of P347,804.60, computed as follows:

Actual IRA collected for CY 2018 1,962,043.00

Percentage (Section 287 of R-{ 7160) 20%
Appropriation fbr CY 2018 392.408.60
Less: Commitments 320,000.00
Unerpended Balance- CY 2018 72,448.60
Add: Unexpended Balance. CY 2017 275.396.00
Unappropriated balance for re-appropriation in CY 2020 347,844.60

Verification showed that the unutilized balance for CYs 2018 and 2017 amounting to
P72,408.6A andP275,396.00, respectively, were not re-appropriated in the ensuing years
as required under Section II.4 of DILG Memorandum Circular No. 97-30. This affected
the realization of development projects that could have been implemented with the
amount and thus, deprived the constituents oi the benefits that could have been derived
therefrom

We recommend that Barangay re-appropriate the unutilized balance of the 20% DF

for CYs 2017 and 2018 in the amount of P275,396.00 and P72,408.60, respectively, or
a total of P347,,804.60 in the Budget Year 2A20, pursuant to Section IL4 of DILG
Memorandum Circular No. 97-30.

May we have your comments andlor action taken on the foregoing audit observations r,,,ithin
five (5) calendar days from receipt hereof

C. BERNARDINO
OIC Supervising Auditor
 Wbt"L' 1-
Republic of the PhilipPines
COMMISSION ON AUDIT
Office of the City Auditor
Pasay City

AOMNo 2020-002-8136
Date January 17,2020

AUDrr OBSERVATION MEMORANDUM (AOM)

Hon. KRTSLYNE MARTY DG. YAMBOT

Punong Barangay
Barangay 136, Zone 15
Citv of Pasay

Attention: NIari-Ya Alojhia G. Alfonso

Barangay Treasurer

We have audited the cash advances of the baranga-v- for CYs 2012to 2018 and obsen'ed
the fol lowing defi ciencies :

Cash advances (CAs) totaling P411,426.00 remained outstanding as at December 31.

2018, contrary to Section 5.8 of COA Circular No. 97-002, the related expenses n'ere
still unrecorded in the books of accounts as of year-end, which affected the fair
presentation of the Advances and related Expense accounts in the financial
statements (FS) for CYs 2012 to 2018. Likewise, CA granted was greater than the
net amourrt of payroll contrary to Section 4.2,1 of the same circular, hence. resulted
to misappropriation of funds.

Section 5 B of COA Circular No. 97-002 provides.

J.2. t "The cash adyance shall be eclual to the net amount of the paloll
.fnr a pay period.

5.B "All cash adyantces shall be liquidated at the end of each year.
fiilly
Except fctr petfit ca,sh.fund., the ao shall refuld any lnexpended
batinci to- the Cashier.,Collection Officer who tt'ill issze the
nece.ssary ffi cial receiPt. "

a. Cash advances (CAs) totaling P411,426.00 remained outstanding as at

December 31, 2018

CYs 2012-2A18, the financial statements of Barangay 136 showed an outstanding

Ft-rr
carh adr,ances for Payroll Fund and Advances to Officers and Employees accounts of
 P289,626 and P121,800, respectively, or a total amount of P411,426.0A, details as
follows:

Particulars 2011 2012 2013 2014 2015 2016 2011 2018

Parroll Fund 286.276 286"276 286^276 286.276 286.2'/6 3'"14-'/76 289.626 289.626
Advances to Otflcers
ardEmployees 60,000 70.000 70.000 72.500 76,500 101,610 111,800 121.800
Totil 346,2i6 356,2t6 356,276 358,776 362,176 176,386 401,126 117,126

The unliquidated balance of P411.426.00 includes cash advances amounting to

P346,276.00 or 84.16% which were granted in CY 2010 and prior years, detaiis
shown as follows:

DV No. DV Date Purpose Amount

Payroll Fund
Outstanding balance since 2010 P 286.276 0n
17-1 1-058 11/tst1',7 Unliquidated excess of 50% Cash Gift and Year- :l 3-50 00
End Bonus for CY 2017
Subtotal 289,626.00
Advances to Officers and Employees
Outstanding balance since 20I0 60.000.00
12-03-022 3130fi2 Brgl'. Assemblv Meeting on Mar 31. 2012 10.000 00
ru-05-a27 5/2Ut1 FideliX'bond of Brgy. Treasurer and Chairman 2._500 00
15-06-029 6116115 Fideliq' bond of Brgr. Treasurer and Chairmzur -1.000 00
for 20I5
l7-03-01-r 3l15lt'7 Brgr'. Assemblv Meeting on Apr 8. 2017 10.0m.00
17-i2-063 L2tL3/t',l Senior Citizen's Assernblv 25.300.00
18-03-028 3/26/t8 Brgl'. Asscrnbll. Meeting on Apr 6. 2018 10.00t).00
Subtotal 121.800.00
Total Unliquidated Cash Advances P {11,{26.00

The non-liquidation of the cash advances resulted to the overstatement of assets and
net income and understatement of the equity account and erpense account. Further,
the delay in the liquidation of the cash advances gives rise to the presumption that the
filone-v lias been rrrisappropriated for the personal benefit olthe accountable officer.

b. CA granted was greater than the net amount of pavroll contrary to Section 4.2.1
of the same circular, hence. resulted to misappropriation of funds.

Further, audit disclosed that \,{s. Geraldine Camo, the then Barangay Treasurer,
requested cash advance for 50% Cash Gift and Year-End Bonus for CY 2017 in the
amount of P59,000 as per attached Payroll No.l7-l l-026 and 17-i 1-027. How-ever,
the amount released to her through disbursement voucher (DV) number 17-ll-058
and check number 448091 dated llll5ll7 was P62,350 00 which was in excess by
P3,350 00. Ms. Camo liquidated the amount of P59,000 00 but the excess cash
adr.ance was not refunded as of this date of audit.

The existence of this condition resulted to misappropriation of public funds as the

qranted cash advances was not utilized for specific and legal purpose.
We recommend that the Punong Barangay:

a. Strictly adhere to the provisions of COA Circular No. 97-002 dated

February 10,1997 in granting and liquidation of CAs;

b. Send demand letters to the officials with cash advances, who are no
longer in the service, at their last known residential address and study the
possibility of filing appropriate charges to enforce settlement; and

c. Demand the liable accountable officer to refund the excess of P3,350.00

from the cash advance granted which was greater than the net amount of
payroll.

May we have your comments andlor action taken on the foregoing audit obsen'ations
within five (5) calendar days frorn receipt hereof.

C. nio
OIC Supervising Auditor

Proof of receipt of AOM

Punong
Date: 0 thn
Barangav Treasurer
Date:
 UW 1/
Republic of the Philippines
COMMISSION ON AUDIT
Office of the City Auditor
Pasay Citl'

AOM No 2020-003-B136
Date January 17.2020

AUDIT OBSERVATION MEMORANDUM (AOM)

For: Hon. tr(RISLYNE MARTY IlG. YAMBOT

Punong Barangay
Barangay 136" Zone 15
City ofPasay

Attention. Alegria T. Casugay

City Accountant

Mari-Ya Alojhia G. Alfonso

Barangay Treasurer

We have audited the Cash in Bank (CB) account of the barangay for CYs 2012 to 2018 and
observed the following.

Validity of Cash in Bank (CB) account balances for CYs 20\2 to 2018 is doubtful due
to (a) unrecorded/unadjusted reconciling items since CY 2012 as deductions and
non-cancellation of stale check amounting toP239,944.57 and P30,800.00, respectively;
and (b) non-submission of the Bank Reconciliation Statement for CYs 2012 to 20L3 and
Bank Statements for CYs 2At4 fi 2015.

Itenr 3.3 of COA Circular No. 96-01 I dated October 2. 1996 provides that

"The accotmtant shall drav, journal vouchers to record all valid reconciling
items that require adjustment and correction in the GL."

Section 59. Volume I of the NGAS Manual for LGUs state that:

(hecks may be cancelledw,hen they become spoiled or stale. xxx... It is stale, if

tr hos been outstanding for oter six month,s from the date of issue or as
ptrescribed by the depositoryt bank. At least one month before a check becomes
stale, the 'freasurer shall send a written notice to the payee of thq existence of
rhc check. A .spoiled or stale check shall be marked cancelled on its .face and
r e L)or t e Ll a.s .fo I I ov's : xnt
 f:or stale checks u.'hich ha,rle been unclaimed and thus, the original DLr and
.supporting documents are still with the Treasurer, the cancelled check shall be
presented in the RCI after the last check issued.for the period indicated in the
report. The original DL' and supporting documents shall be retarned to the
Accounlant who .shall prepare a JEL' to record the transaction as Accotltts
Payable.

For checks y.'hich became qtoiled or stale in the hands of the payee and which
require replacement, a nevt check may be isyed upon stbmission of the spoiled
or stale check tct the Treastrer. A certified copy of the [)I' shall be requested
from the Auditor .for presentatiort to the Administrator,'Local Chie.f Executive
who shall cotnfiersign the check. The cancelled check shall be reportetl and
attached to the RCI prepared at lhe period of cancellation. The replacement
check shall also be reported chronologically in the RCI.

Section 74 of Presidential Decree (PD) 1445 states that

"At the close of each month, depositories shall report to the Agency Head, in mch
form as he may direct, the condition of the agency account standing in thetr
bool<s. The Agency Head shall see to it that reconciliation is made between the
balance shown in the reports and the balance found in the books of the Agency. "

The Accounting System Manual for Barangay, Volume IV specifically requires the
preparation of the Bank Reconciliation Statement (BRS) by the City Aecountant for
submission to the COA Auditor on or before the 20th of the following month. The BRS shali
be certified correct by the City Accountant and prepared in three (3) copies to be distributed
as follows:

Original- COA Auditor

2nd copy - City Accountant
3'd copy - Punong Barangay (PB)/Barangay Treasurer (BT)

a, flnrecorded/unadjusted reconciling items since CY 2012 as deductions and

non-cancellation of stale check amounting to P239,944.57 and P30,800.00,
respectively

The Cash in Bank account for CYs 2012-2018 had a reported book balances of the following:

2018 2017 2016 2015 20tl 2013 2012

Cash in bank 167,382.63 231.728.65 146.622.33 233.010.80 2'76.811.60 251.89,1 260.056.91

The Barangay maintains a current account (CA) with the Landbank of the Philippines (LBP).
Masagana Branch, Pasay City under CA No. 2212-1016-24.

Verifrcation of the BRS for CYs 2012 to 2018 disclosed that there were reconciling items
since CY 2012 with an aggregate amount of P239,944"57 not recorded in the books as
deductions. These remained unrecorded/ unadjusted in the books as at December 31, 2018,
thus, the adjusted balance CIB account showed a negative balance of P72,561.94, details as
follows:

2018
Year
Book Bank Remarks
Unadiusted balance 167.382.63 19.798.76
Reconciling items:
Less: Outstanding Checks 7"700.00 chk# 448088. t01301t7
7.700.00 chk# 448100^ 12127117
7.700.00 chk# 448126.3126118
7,700.00 chk# t41. 5t22n8
,148

5.546.74 chk# 448l66.9fi7t18

6,738.96 chk# 448168. 9/17l18
7,700.04 chk# 448184. 12i28/18
4,500.00 chk# 448185. t2t28n8
37,075.00 chk# 448186. 12i28i i8
Other reconciling items since 2012 (23e^e44 57)
Adiusted tralance (72,561.94't (72,561.94\

Audit revealed that the nature of these reconciling items could no longer be identified since
they were not provided with detailed description in the BRS and not duly supported u'iti;
necessary documents.

ihe unrecorded reconciline items had been brought to management's attention in previous
vears' Barangay Annual Audit Report, however, the barangay Officials did not address the
same, thus, the reliability and validity of the CIB account is unreliable.

Moreover, review of the BRS as of December 31, 2018 disclosed that stale check amounting
to P30,800.00 was not cancelled, thus, the CIB account and Liability account \\'ere
understated.

b. Non-submission of the BRS for CYs 2012 to 2013 and Bank Statements for
CYs 2014 to 2015

Verification of the submitted documents disclosed that for CYs 2012 to 2013, the monthlv
BRSs were not submitted by the Barangay Bookkeeper (BB) to the Office of the City
Auditor. Likewise, the BB submitted the monthly BRSs for CYs 2014 to 201 5. hower.er, the
bank statements were not attached thereto.

it should be noted that the non-preparation of the BRS and non-submission of bank
statements. the reconciling items could not be identified and the adjustments could not be
effected to reflect the correct balance of the CIB-LCCA for the CYs 2012 to 2018.
we recommend the Management to require the Barangay Bookkeeper:

o prepare and submit the BRS duly supported with Bank Statements, debit and
credit memoranda and ensure that all reconciling items are provided with
detailed description as to its nature in order to easily facilitate verification and
reconciliation of the accountsl

o Strictly observe Section 59, Volume I of the NGAS Manual for Local
Government Units for stale checks; and

Furthermore, the Barangay Treasurer closely coordinates with the Office of the Citv
Accountant to identify the nature of the unrecorded/unadjusted reconciling items and
effect the necessary adjustments in the books of accounts'

fuIay we have your comments and/or action taken on the foregoing audit observations
within
five (5) calendar days from receipt hereof.

C
OI Auditor

Proof of receipt of AOM:

Punong Barangal'
Date:

Barangav Treasurer
Date

Crn'Accountanl
Date:
 lLw'3
Republic of the Phiiippines
COM}IISSTON ON AUDIT
Office of the Citl' Auditor
Pasav Citl

AOM No. : 2020-004-8136

Date : Januan, 17.2024
{L-DrT OBSERVATTON MEMORANDUM (AOM)

For: Hon. KRTSLYNE MARTY DG. YAMBOT

Punons Barangal,
Baranoar' 136, Zone 15
Cit.,'of Pasav

Attention. Alegria T. Casugay

City Accountant

Mari-Ya Alojhia G. Alfonso

Barangay Treasurer

\\-e ha,.'e audited the Due to BIR account of the barangay for calendar years (CYs) 2012 to
lr,,i S :,rd obsen'ed the following:

The Due to BIR amounting to P342,636.42 were not remitted in full and on time
contral.r' to Revenue Regulation No. 2-98 which may result to possible
misappropriation of funds and continuous incurrence of surcharges and penalties due
to late remittances.

Se.:r,-,r.is I
57 3(C) and 2.58(a) of BIR Revenue Regulation No. 2-98 requires all government
:t]:;es desienated as withholding agents to remit withholding taxes within ten (10) days after
ihe er:d of each month except for taxes withheld for December which shall be filed on or
:eil::e ,Ianuan, 25 of the following year.

Secrirr: I Stl of the same Revenue Regulation holds the employee responsible for the
..,.irnh..,iing and remrttance of taxes personally liable forthe surcharge and interest that may
':e
Lr:inosed tor the delayed remittance of taxes withheld.

F.,r C\-s lt-t1l to 2018, the Due to BIR account of Barangay 136 showed the balances which
retresents the unremitted taxes withheld from various suppliers and contractors by the
laranqa\'. details as follows.

20t2 2013 2014 2015 2016 2017 2018

Du: tc BF. 116.836 77 136.681.01 161.70,t.08 202.998.83 248.962.t3 278,839.80 312.636.42
 rnalysis of the Due to BfR account revealed that the beginning balance of P84,122.31
pertains to the unremitted u.ithholding tax prior to CY 2072, while the remaining balance
fepresents the entire tares *ithheld lrom CYs 2012 to 2018 with an aggregate amount of
P342.636.42. Consequentir'. both amounts u'ere still unremitted to the BIR as at December
3 1, 2018

Further, audit disclosed that the correct amount of Due to BIR for CY 2012 should be
P118,282.77 instead of P116,836.77 as reflected in the Statement of Financial Position
(SFPo). Thus, the Due to BIR account is understated by P1,446.00 as of to date, detailed as
follows:

Particulars 2012 2013 2014 2015 2016 20t7 2018

Balances 8,1.122.31 118.28277 138.130.01 163,150.08 2M344.83 2i0.,108.13 280,285.80
Amount Withheld (Per Aridit) 3.1.160 46 19.847.24 25.020.07 41^294.75 45.963.30 29^8'77 67 63,796.62
Ending Balancc rPer \udit.1 118^282.77 138.130.01 163.r50.08 204J44 83 250.408.13 280.285.80 3.14.082.42
Lnding Balarrc Po SFPor 116.836.77 136,684.01 161.704.08 202^998 83 248^962.t3 278.839.80 312.636.42
Discrepancv 1,446.00 1,446.00 1,446.00 1,,146.00 1,446.00 1,446.00 1,446.00

This condition exists due to lack of reconciliation of balance between the barangay and
accountin-q records. In addition, the continuous increase of unremitted taxes only showed the
barangav did not able to remit the taxes withheld in fulI to BIR within the prescribed period
contran, to Sections 2 57.3(C\ and 2.58(a) of BIR Revenue Regulation No. 2-98.

of not remitting regularly the trust receipts could open opportunities

Likevu'ise. the practice
tbr possible misuse or misapplication of the trust fund collected. The failure to remit by the
barangav official/s responsible thereto could result to the imposition of penalties under
Revenue Regulation No. 2-98, as amended, as follows.

"Every officer or employee of the goventment of the Republic o.f the

Philippines or an), of its agencies and instrumentalities, its politicol
.subdivisions, as well as governmenl-owned or -controlled corporations
charged with the dutll to deduct and withhold any internal retenue tax and to
remit the same in accordance u;ith these regulations shall, upon conviction.for
each act or omission herein-belov, specified, be fined in a .wm of not less than
.five thousand pesos (P5,A00.A0) but ruot ruore than f{e thousand pesos
(P50,000.00) or imprisonment
for a terru of not le,s,s than six month,s and one
tlay,, but not more lhan fu,o years, or both.

1. l'-ails or causes the failure to deduct and withhold any internal revenue tox
covered by these regulations;
2. Fails or causes the failure to remit the tmes dedacted and withheld v,ithin
the tirue prescribed therein;
3. Iiails or causes the-failure tofile the return or is,sue certificate required."
'r\ e recommend that the:

a. The city Accountant to recognize in the books the unrecorded Due to BIR
amounting to P1,446.00;
amount of
b. Barangay Treasurer and the city Accountant to remit the total
P344.082.42 to BIR immediatety ano ensure that taxes
withheld are remitted in
full within the Prescribed Period;

c. Require the payment try the responsible Barangay officials of any penalties and
..rr"h".g., that may be imposed by the BIR; and

d.PunongBarangayandBarangayTreasurertostrictlyadheretotheRevenue the BIR

No."Z-qS to avoid ihe administrative sanctions imposed by
Regulation
regulation on the matter.

May u,e have your comments and/or action taken on the foregoing audit
observations
witt,ln hve (5) calendar days from receipt hereof'

C.
OIC Supervising Auditor

Proof of receipt of AOM.

Punong Barangal'
Datc.

Barangar- Treasurer
Datc -___=___=--
Cin'Accountant
Date :
 4
Republic of the Philippines
COMMISSION ON AUDIT
Office of the City Auditor
Pasa-v Crty

AOM No 2020-005-8136
Date January' 17 ^2024

AUDrr OBSERVATTON MEMORAND{,M (AOM)

For: Hon. KRISLYI{E MARTY DG. YAMBOT

Punong Barangay
Barangay 136, Zone 15
City of Pasay

Attention: Alegria T. Casugay

City Accountant

We have revierved the transactions of the Barangal' pertaining to its Baranga-v Disaster
Risk Reduction and Management Fund (BDRRMF) for calendar 1'ears (CYs) 2012 to
20i8 and noted that:

The unexpended balance totaling P159,812.27 for CYs 2015 to 2018 was not
transferred to the Trust Liability-DRRMF account at 1'ear-end.

RA 10121 requires that the unerpended balance of the LDRRM Fund shall "accrue to a
special trust fund solelv for the purpose of supportrng disaster risk reduction and
management activities of the LDRRMCs rrithin thl nert fir'e {5) 1'ear." {Section 21 (3'd
par ))

Further. COA Circular No 2012-002. rn settrng the accounting and reporting guiCelines
for the LDRRN,I Furd. proi rdes that "ali unerpendedrunobligated balance of the QRF and
the LDRR\'1F-N'IOOE shali be transf'erred to the Special Trust Fund under the account
''Trust Liabilin'-DRR\{" (Code -1381 rn the Trust Fund books" (Section 5.1.10).

N{oreover. the unerpended balance of the LDRRM Fund for Capital Outlal, "shall be
made contrnuing rn the Generai Fund books r.mtri the projects funded therefore are
completed and anr sa\ rngs shall be ar arlable for use rn the disaster risk reduction and
management actr\rties as prorided rr the LDRRMFIP." (Section 5.1.11)

Reviex-ofrecords disclosed that the barangal'has an unerpended balance not recorded in

books of accounts under Trust Liabihn -DRRMF account totaling P159,872.27 from CYs
201,5 to 2018. computed as tbllous

P artic ul ars Amount Unerpended Balance

C\- l1.il -)
l,l.f.t ,1 95"262.1 1
'.irrlti:,
/-.. -. -.; r-. -- r. 32.00r) 00 63.262.11,
 cY 2016
Apprcrpnatron 1 2 5.5 52. 37
Coninritnrents 75.000 00 50.552.37
cY 2A17
Appropriation 1J4.930 28
Conrmitments 108.800.00 36.130.28
cY 2018
Appropriation 157.039 30
Comnritment; 100.0rJ0 m 57.039.30
Total Unexpended balance 206,9&4.06
Balance per books 47,111.79
Unrecorded balance per books 159,872.21

Per verification with the accounting records, the Trust Liability-DRRMF account
baiance has only the balance of P47-l11.79 as of December 31, 2018, thus leaving the
balance amounting to P159,872.27 w-hich remained unrecorded in the books under
trust liabilities as required in the above Circular. Hence, the amount $.as not made
available to pursue the purpose of supporting disaster risk reduction and management
activities of the Barangav Disaster Risk Reduction Management Council.

We recommend that the Accounting Office adopt the requirements under COA
Circular No. 2012-002 in accounting for and in recording transactions pertaining
to the unexpended balance of the BDRRM Funds.

Mav rr'e have r-our cornrnents on the foregoing audit observation x'ithin fir,e (5) <ia)'s
from receipt hereol

C.
OIC - Auditor

Pttltri r-ri recerpt rri -\O\1

Punong Baraoga,v
Date:

City Accormtant
Date:
 Republic of the Philippines
tr Lb

CONIMISSION ON AUDIT
Office of the City Auditor
Pasay City

AOMNo 2019-006-8146
Date January 17,202A

ALTDIT OBSERVATION MEMORANDUM (AOM)

For: Hon. KRTSLYNE MARTY DG. YAMBOT

Punong Barangay
Barangay 136, Zone 15
Citv of Pasay

Attention: Ms. Ma. Conchita B. Cavanan

City Budget Officer

Mr. Nemesio R. Anunciado

Chairman, Committee on Appropriations

We have audited the expenses of the barangay for caiendar years (CYs) 2Ol2to 2018 and
observed that:

The Barangay incurred expenses totaling Pl,716,000.00 despite absence of

corresponding appropriations as it were not covered with ordinance for supplemental,
realignment or augmentation for the purpose contrary to Section 305 (a) of RA 716A.

Section 305 (a) of RA 7160, otherwise known as the Local Governmenl Code of 1991
provides:

"No money shall be paid out of the local treasury except in pursuance of an
appropriations ordinance or law."

Review of the transactions and utilization of budget from CYs 2Ol2to 2018 disclosed thar
the barangay made disbursements of funds totaling P1,716,000.00 for various expenditures
despite the absence of corresponding appropriations, details as follows.

I)isbursements made E ithout appropriations

Particulars DV No. 2015 2016 2017 2018 TotaI
Various sporttng goods 15-12-060 +9.000.00 .r9.000.00
Monoblocks tables and l5-12-061 3,1.000.00 34,000.00
chairs
Cirnstmas Package 15-12-058 150.000.00 150,000.00
Neu. Fi re Extinguishers 15-12-059 49,000.00 49.000.00
 Disbursements made without
DV No. 2015 2016 2tt7 2018 Total
Particulars
,10,000.00 40,000.00
Campaigr materials for 16-03-011
Family Values
16-05-0-l-t 50.000.00 50,000.00
Public Address
-10"000.00 40,000.00
ID 16-07-038
16-10-u55 50,000.00 50,000.00
Rescue Materials
16-1 1-060 ,10.000.00 40.000.00
Christmas Ddcor
16-i2-065 7.500.00 250,000.00
100 sacks ofrice for
Christmas Package for 17-01-003 80.000 00
cY 2016 r7-01-004 88.500.00
t7-01-006 71.500.00
t6-12-066 1.t0.000.00 140,000.00
Partial Pa1'ment for 2'10
Sacks ofrice for
Christmas Package
45t.000.00 454,000.00
Final Payrnent for 240 17-01-001
Sacks of rice for
Christmas Package
17-01422 -10.000.00 40,000.00
Disaster Preparedness
Materials
18-05-038 40,000.00 40,000.00
NGAS Forms
18-05-045 70.000.00 70.000.00
chemicals
18-10-068 70,000.00 70.000.00
SK Additional sporting
goods
t8-10-070 70.000.00 70^000.00
Information Campaign
Materials on
80.000.00 80.000.00
Replacernenl of CCTV i8-10-071
Camera u,ires
Total Payments with 282,0{m.00 1,061,500.00 40,000.00 330,000.m 1,716,000.00
no ADpropriations

The audit disclosed that no ordinance for supplemental budget, realignment or au*qment&tlora
had been passed or enacted to cover the above disbursements. Thus, this is not
in accordance
with Section 305 (a) of RA 7rc0

It should be noted that the responsibility to monitor the policies and procedures regarding the
approved appropriations and the corresponding utilization, as provided under the Systems
ard procedures Manual on the Management of Barangay Funds and Property, Volume
1, was

entrusted to the Committee on Appropriations. The inability to carry out such responsibility
resulted in disbursements with no corresponding appropriations totaling P1,716,000'00'

We recommend that the BarangaY:

a. Submit explanations/justification why the expenditures amounting to

pl,Tl6,000.OO strould not be disallowed in audit, in viev of the absence of
corresponding appropriations;

b. The Committee on Appropriations monitors regularly the status of the

appropriated funds for guidance before any commitment is made;
 c. In case of programs/projects with no coruesponding appropriations, the
Barangay has to first pass or enact an Ordinance for supplemental budget,
augmentation or realignment for the purpose before any project or activity is
implemented or carried out.

May we have your comments andlor action taken on the foregoing audit observations within
five (5) calendar days from receipt hereol

C. BERNARDINO
Auditor

Proof of receipt of AOM:

hrnong Barangal'
Date:

Chairman, Cornmittee on Appropriations

Date:

Ciry* Budget Offrcer

Date:
 Republic of the PhiliPPines
vvq
COMMISSION ON AUDIT
Office of the CitY Auditor
Pasa,v Cit-r'

AOM No 2020-007-8136
Date Januan,17.202(\

(AOM)
AUDIT OBSERVATION MEMORANDUM

For: Hon. I(RISLYNE NI-ARTY DG. \'A\1BOT

Punong Barangal
Barangal' 136^ Zone i 5
Citl,of Pasal

Attention Alegria T. CasugaY

Crn Accountant

Mari-\-a .{lojhia G. Alfonso

Barangar Treasurer

(PEE) accounts of the barangaV for

We have audited the Propertl'. Plant and Equrpment
calendar 1,ears (CYs) 2t)121o 2018 and obsen'ed the tbl1o$rng

Equipment
The accuracy, existence and completeness of the Propertl'. Plant and
from cYs 2012 to
(PPE) u".o,rrrt, balance of P2,590*846.0? as at December 31. 2018
and non-
2018 could not be ascertained due to (a) absence of physical inventory
submission of Report on Physical Count of Property, Plant
and Equipment
Plant and Equipment Register
(RPCPPEX (b) non-maintenance of the Propert)"
(ppER) by the Barangay and Equipment l-edger cards (ELCs) by the office of the
bity.l..r.rntant (OCA); and (c) non-proYision of depreciation for PPE Manual on
amounting
to irt,SIZB46.07 depreciation contrarT to the S1'stems and Procedures
the Management of Barangay Funds and Propertl'(SPMMBFP)'

Paragraph 3 of the policies and procedures for Supplies and

Materials, PPE' Public
Manual on the
lnfrastructures and Reforestrations Projects of the S)'stems and Procedures
Management of Baranga-v* Funds and Propern'(SPMMBFP)- Volume
I. provide that:

at least
a. A ph.vsical inventory o./-all barangq'property shall be conducted
in
once a year cmcl iltb r)esttlt of fue pht'stccrl tnventorl' -sltall be reported
theReportonthePhl5i,olCoutlto./.Proper?''PlantandEquipment
(RP(',PPE).

b.ACommitteeheadedbl,theBarangavTreasurerorhisautharized
b'v the
represetltative shaLl cori'lucr fue pl't1:'sical comtt o'f PPE ownecl
baranga,v: and

The report, approved b)' the Punong Barangay' shall be submitted

to the
c-
Baranpav niiorct Keiper ond the C.iw Accottntant for reconciliation
Section 124 of the Manual on the Nerv Govemment Accounting Systems (MNGAS) for
LGUs. Volume I, states that the RPCPPE shall be submitted the Office of the Cit-v
Auditor not later than Januan 31 of each vear.

Paragraph 4-6 of the Accountrng for PPE of the SPMMBFP, Volume [V, provide that:

All PPE, except lcntcl, shall be subject to cleprectatiotl. ct residual value eEtivalent
rc 1a?5 o-l-the cost slnll be set a.gicle in computitxg depreciation using the straight
line method.

The computation o.f depreciation expense slull start on tlxe monthfollowing the date
of purchase,'completion o.f the prolect. The estimated useful ltfe of PPE x x x sltall
be used in computing rhe rate o.f cleprecianon.

Full.v c{epreciated PPE whrch are sttll used in operatian shall remain as PPE for
ba lanc e she et pr e s enlat i ot't.

Revierv of the financial statements of the barangar.from CYs 2012to 2018 disclosed the
balances of the Propeg'. Plant and Equipment (PPE). details as follou's.

2017 2AM 2015 2013 20t2

Land Improvements 187.743 70 70 187.743 10 t87,743 70 70
Office Building _362.036.17 362.036 \'7 -162.036 17 362,036.17 362,0-16.l7 362,036.17 -162,036.17
Office Equiprnent 81-r.526 20 813.526.20 81-r-526 20 81-1.526 20 813.526 20 79J,626.20 793.626.20
Communication Equip. 580.000 00 400.000.00 .+00.000.00 3 50.000.00
Disaster Response and 124.000.00 124,000 00 124.000 00 49.000 00
Rescue Equiprnent
Military and Police 60.000.00 60.000 00 60.000 00 60.000.00 60,000.00 60,000.00 60,000 00
Equipment
other PPE 463,540.00 463.540.00 463.5"10.00 -14-r.5-10.00 -l-13.j40.00 4i!4 0q 43.6?!.00

Non-submi ssion o.f RPCPPE

Verification of records revealed that Barangal- 136 did not submit Report on the Physical
Count of Property,, Plant and Equipment (RPCPPE) for CYs 2012 to 2018 contrary to
Section 124 of the Manual on the Ne'rv Govemment Accounhng Sr:stems (MNGAS) for
LGUs. Volume I

The Reconciliation of barangay records for its PPE with accounting records is not
possible since there was no RCPPE available for reconciliation. The vear-end book
balances of the PPE in the amount could not be validated as to their correctness and
actual existence due to this deflciencv.

Non-mnintenance oJ'the PPER by the Barangay ancl ELCs b.v rhe OCA

There was no PPE Register marntained and submitted showing the properties owned b1'
the barangay including their location for further verification. The barangay s,as not able
to account for the existence of their properties as recorded in the barangay books,

Also. the Barangay' Bookkeeper has not maintained ELCs for the Baranga-.vs recorded
PPE.

q
The Barangay and the Offrce of the Accountant should strictly comply rvith the basic
policies and operating procedures in recording and reporting of barangay property and
prepare the RCPPE, PPER and ELC so that the reconciliation can be facilitated.

Non-pr ovi s i on of depr e ci ation Jbr P P E amounting t o P 1, 847, 846. 07

Revieu, of the Schedule of Fixed Assets for CY 2018 shou,'ed the list of PPE that u,ere
subjected to depreciation. Out of the total PPE accounts of P2"590,846.07 as of
December 31. 2018. 71.32 o/o thereof or Pl.847.846.07 u,ere not provided depreciation as
follou,s:

PPE 2018
Land Improvements 187,7$.74
Office Building 362,036.17
Office Equipment 794,526.24
Military and Police Equipment 60,000.00
Other PPE 443,540.00
Total 1,847,846.07

Veriflcation of the PPE account disclosed *rat the Communication Equiprnent amounting
to P331,195 was classified as Other PPE.

Further anal-vsis of the above data disclosed that the depreciation for CYs 2012 to 2018 of
the PPE account amounting to P332,095 can be computed since the data needed were
available. details as follows:

AccountName Cost 2012 2013 2014 2015 2016 201E Total

CommuDication
F.quipment
CCT\i Camera 23 1.280.00 8,673.00 ?0.815.20 20,81 5.20 2{_},81 i.20 20.815 20 20.81 5.20 20,8i 5.20 I 33,564.20
CCTV Camera 99.915.00 { )4\ it R qq. 1s 8.992.3i R AO' 1S R qq, 15 I OO' 15 50.207 29
'fotal 331,195.00 8,673.00 74 29.807.55 29.807.55 29,807.55 29.807.55 2S.807.S5 1A3.771.49

Office
Equipment
Erecutirc table 900.00 337.50 162.00 16:.00 161 00 162 00 162.00 162.00 i,309.50
md Charr
TOT,TI, 332.095.00 9,010.50 26222.71 29,969.55 29.969.55 29.969.55 29.969.55 185,080.99

The above data shorved the understatement of the Depreciation Erpense and the
Accumulated Depreciation yearlv for CYs 20i2-2018. The aggregate amount of the
understatement for the accumulated depreciation is Pl85"080.99, thus. the Government
Equih, is overstated b1'the same amount.

The PPE amounting to P1,515.751.07 u,ere acquired on CY 2011 and prior lears and
have no propert], records, rvhich are supposed to be maintained b-v the Accounting Offrce.
The information reflected in these records, such as date of acquisition. classification and
propefi). descriptron are significant in computrng the correct depreciation for a particular
asset.

The non-provision of depreciation for PPE accounts understated the Depreciation

Expense and Accumulated Depreciation and overstated the PPE and Gorremment Equitv
account.
 I

We recommend that the BarangaY:

not later
a. Prepare and submit the RPCPPE to the office of the city Auditor
than January 31.

b. Require the Barangay Treasurer to maintain the PPER to record and

monitor the assets of the BarangaY;

c. Require the Barangay Bookkeeperto:

r Maintain ELCs for each PPtr and to update the same as necessary"
and prepare the schedule of PPE to support fire respective acccount
balancs in &e financial statements'

o Reclassify the other PPE to communication Equipment for

P331,195;

e Recognize the Depreciation Expense and Accumulated Depreciation

of PPE amounting to P332'095; and

r compute and pruvide depreeiation of ,the unidentified PPE

PPE
amounting to P1i15J51.0? and to ensure lhat nemly acquirrcd
arc dePreciated-

May we have your c.omments andlor action taken on the foregoing audit
observations
wrtfun five (5) calendar days from receipthereof'

C. BERNARDINO
OIC - Auditor

Proof of receiPt of AON4:

Punong Barangar-
Date.

Barangav Treasurer
Date:

Cit]'Accountant
Date:
 la
v,vJv
Republic of the Plllipprnes
COMMISSION ON AUDIT
Office of the City Auditor
Pasal'Cin-

AOM No. : 2020-008-81-1-

Date : Januarl' 17. ) :

AUDrT OBSERVATTON MEMORANDUM (AOM)

For: I{on. KRISLYI{E MARTY DG. YAMBOT

Punong Barangay
Barangay L36,Zone15
Cit-v of Pasay

Attention: Alegria T. Casugay

Crt1, Accountant

We har,e verified compliance of the Barangav to Disaster Risk Reduction and

Management Plans and Programs for calendar years (CYs) 2012 to 2018, and noted the
following defi ciencies:

Non-preparation and submission of Local Disaster Risk Reduction and

Management Fund Investment Plan (LDRRMFIP) and Report on Sources and
Utilization of Local Disaster Risk Reduction and Management Fund (LDRRMF)

Section 12(c) of R.A. No. 10121 provide that:

" (6.) Formt,tlate and implement a cornprehensive and - integrated LDRRMP in

accordance wilh the nntional, regiornl and provincial .framan'ork. and
poltctes otx disoster risk reductian in close coordinntion with the local
ev e I opme n t cotutci I s (LDC s )
"l

[1 Prepare and submit to the local Sanggunian through the LDRRMC and the
LIX rhe annual LDRRMO Plan and budget, the proposed programming of
rhe LDRR\IF. other dedicated disaster risk reduction and mflnagement
resourcei itnLl other regular -futtdutg source .s and budgetar.v sltpport o.f the
LDRR\{O BDRP.\{C. '

Paragraph 5.1 2 and -i I5 COA Circular No 2012-002 dated September 12,2012

contarrung the Accounnng and Repornng Gurdehnes for the Local Disaster Risk
Reduction and Management Fund TLDRR\{F) of Local Govemment Units (LGUs).
\atronal Disaster Rrsk Reductron and \lanagement Fund CNTDRRMF) grven to LGUs and
Receipts fiorn Other Sources stale that

" A LDRRtu\FIP.fbr rhe DRfi\.{ program shall be prepared annually. It shnll

present the 30o% allocouon .for QRF m lump sum and the allocation for
disaster mittgafion. prevenfion and preparedness *-tth details as to proiects
and activiries ro be 'funded. The LDRRMFIP slzall also include under a
 LDRRMF o-f previous year. A sample format of the LDRRMFIP is shoun tn
Annex A.

A Report on Sources and Utilization of DRRMF using the forrnat in Annex B

sluzll be prepared and certi.fied correct b-v the Local Accountant. The Local
Disaster Risk Reducrion and lvfanagement Olficer (IDRRMO) shall submir
the report on or before the l5't' clay after the end of each month through the
LDRRMC and Local Development Cottncil (LDC) to the COA auditor of the
LGU ''

The LDRRMFIP for CYs 2012 and 2018 $,ere not sutrmiued. Likewise, the required
Report on the Sources and Utilization of LDRRMF for CYs 2A12 to 2018 as required
under COA Circular No. 2012-A02 $,ere not also submitted. Thus, the plans and
programs of the barangav on DRRM for CYs 2012 to 2018 rvere not revierved and
evaluated s'hether or not the Barangav has effectir,ell'managed the appropriated funds
thereon.

We recommend that the Barangay prepare and submit its LDRRMFIP and the
Report on Sources and Utilization of LDRRMF in compliance with COA Circular
No. 2012-0A2, to enable proper monitoring and evaluation of the utilization of the
LDRRMF.

Mav u'e have vour comments and/or action taken on the foregoing audit observations
uithin fir,e (5) calendar da1.s 1o* receipt hereof

C. BERNARDINO
OIC Supervising Auditor

h-oof of receipt of AOM:

Punong Barangay
Date:

City Accountant
Date:
 Republic ol' the Phrlippines
COMNIISSION ON ATIDIT
d
OfTice of the City Auditor
Pasar.Citl.

AOM No 2020-009-8136
Date January, 28.2020

AUDrr OBSERVATTON MEMORANDUM (AOM)

For Hon. KRISLINE MARTY DG. YAMBOT

Punong Barangal'
Barangar, 136. Zone 15
Cit1, of Pasa--v

Attention. Mr. Nemecio R. Anunciado

Charrman. Commrttee on Appropriati ons

We have audited the disbursement transactions of the Barangal' Council for the Protection
of Children (BCPC) Fund of the Baranga-v for the calendar 1.ears (CYs) 2012to 2018 and
obserr,ed the follorving:

For CYs 2014 to 20i8. the Sangguniang Barangay appropriated the total amount of
P259.260.52 for the i% BCPC Fund. Revier.r, of the utilization thereof disclosed the
folloir,ing:

Particulars 2014 20r5 2416 2017 2018 Total

Appropriations 46,508.64 41-743.10 50,220.9s 57.972.r1 62.815."72 259,26fr s2
Commitments:
School Sqrplies 40.700.00 '16"500.00 50.000.0t) 57.000.00 62,000.00 256.200 00
Unerpended Balance 5,808.64 (4,756.90) 220.95 972.t| 8t5.72 3,060.52

a Disbursements for ineligible expenses totaling P2S6r200.00 were charged against the
BCPC Fund for CY 2014 to 2018 due to forrnulation of budget that is not in
accordance with DILG Memorandum Circular No. 2Ol2-12O, thus. rcsulted to
improper utilization of the funds.

Section II of DILG Memorandum Circular No. 2012-120 enumerated the prolects.

programs and actir ities (PPAs) that can be funded bv the BCPC Fund.

Rerjerr, of transactions rerealed that pwchases of school supphes frorn CY 2t-tI-l to lt,tlE
u,ere made totaling P256.200.00 Hos'ever. these purchases u'ere considered rneligrble
expenses and could not be appropnatelr' charged against the BCPC Fund as ther are not
u,rthin the coverage of allou,able erpenses enumerated and defined in the N{emorandum
Circular 2012-120. Audrt disclosed that the root cause identified is the fact that the
trudget was not in accordance rvith Section II of the DILG Memorandum Circular \o.
20t2-t20
 In effect. the BCPC Fund rvas improperlv utilized insofar as the procured ineligible items
totaling P256,200.00 is concemed. The amount could have been used to finance other
prioriq,. projects. programs and activities that are larr fulll' chargeable against the BCPC
Fund, to promote the rights and protection of the children in the barangal'.

We recommend that the Punong Barangay submit an explanation why the

transactions from CYs 2014 to 2018 totaling P256r200.00 should not be disallowed
in audit due to the improper utilization of funds.

b. The Barangay incurrrcd an overdraft in appropriations amounting to P4r756.90 in

CY 2015 in the BCPC Fund, wherein the commitmentslexpenses had exceeded the
appropriations, which is contrary to Section 305 (a) of RA 7160.

Section 305 (a) of RA 7160. othenvise knoun as the Local Gor.ernment Code of 1991
provides:

"No monev shall be paid out of the local treasury e\cept in pursuance
of an appropriations ordrnance or lalr- "

As shou,n in the table above, the commitment erceeded the appror,ed appropriation b-v
P4.756.90 in CY 2015. Based on our analvsis, the e\cess pertained to the
commitments/erpenses u-hich u'ere not cor,ered b-v an appropnation ordinance. This is
not in accordance rvith Section 305 (a) of RA 7160. The audit also disclosed that no
supplemental budget or augrnentation had been passed or enacted to cor,er the
commitments not covered b1'an appropriation ordinance.

It should be noted that the responsibilitl'to monitor the policies and procedures regarding
the approved appropriations and the corresponding utilization as provided under the
Sl.stems and Procedures Manual on the Management of Baranga--v Funds and Proper['.
Volume l. rr'as entrusted to the Committee on Appropriations. The inabilitt, to carn out
such responsibilitl resulted in commrtments/expenses u,ith no corresponding
appropriatrons rn the amounl of P4.756.90

We recommend the following:

a. The Barangay comply strictly with Section 305 (a) of RA 7fi4;

b. The Committee on Appropriafions monitor regularly the status of the
appropriated funds for guidance before any commitment is made; and

c. Ensure that commitments/expenses should not exceed the appropriations unless

supported with ordinance for supplemental or augmentation to cover the
insufficiency in the currcnt budget.
May u,e have 1,our comments on the foregoing audit observation lvithin five (5) days
from receipt hereof.

C. BERNARDINO
OIC Supervising Auditor

Proof of receipt of AON{:

Pmong Barangay
Date:

Chairmn, Committee on .\ppropriations

Date:

Cit-v Iludget Oft'rcer

Date:
 Repubtrc of the Philippines
CONIMISSION ON AUDIT
pw r
Office of the City Auditor
Pasar Crtl'

AOM No. : 2020-010-8136

Date : January l'7 ^ 2O2l)

AUDIT OBSER\-ATIO\ \TEMORANDUM (AOM)

For: Hon. KRISLYI{E NIARTY DG. YAIIBOT

Punong Barangar'
Baranga.v 136. Zone 1-s

Citl' of Pasai'

Attention IIr. \emecio R. Anunciado

Charman- C ommrttee on Appropriations

We har,e audited the transactrons of the Bara-ngar' lbr the calendar -vears (CYs\ 2AD b
2018 and obserr,ed the follouing deficiencris 3lrtrI:

a. Absence of GAD Code

ltem B, Section 37" Rule VI of the Implemenung Rules and Regulations QRR) of RA
9710 othenvise knoun as the "Masra Carta r-,f \\'omen" requires all LGUs to pass a
GAD Code to support their efforts in recoonrzrns. respecting. protecting. fulfilling and
promoting women's human nghts tosards the attarnment of u,omen's empowerment
gender equalitv in their localiq' rn accordance urth the guidelines issued b1' the
Philippine Commission on Women (PC\\') The GAD Code shall be the basis for
identif ing programs, activities and prolects on GAD

As of audit date- the Barangal, has not prepared rts GAD Code as required under the
above- cited law from CY 2012 to 2018 \onetheless. an annual GAD Plan x,as
prepared outlining. among others. the prograrrs,'pro.lects/actir,ities (PPA) the target
benef,rciaries and the corresponding budget

While u,e appreciate the effort of the Barangal rn comrng up n ith their GAD Plan, the
identification of the PPAs could not be established if indeed such are the essentials for
the attainment of $,omen's empo\\'errnent to\\ ards gender equality' in the localitf in the
absence of the GAD Code.

b. Disbursements for ineligible expenses totating P189B00.00 were charged against the
GAD Fund from CY 2014 to 2018 due to emneous formulation of budget that is
not in accordance with , thus, rsulted to improper utilization of the funds.
Likewise, therrc was low percentage of budget utilization ranging from 29.24Y" to
48.3OVo which resulted to lack of commitment to GAD responsiveness govemance.

Sechon 4.C)4) of PWC-DILG-DBM-NEDA Joint Memorandum Circular No. 2013-0i

provides that in identif ing GAD PPAs. LGUs shall at all times give prioritl'to those
that rvill address emerging and/continurng issues and concems on:
 a) Pror,ision of basic services and facilities to protect and fulfrll \\'omen's human
rights including their right to protection from all forms of r,iolence:
b) Women's economic empo\\,errnent. including \\.omen's participatron in economrc
go\iemance:
c) Participatron in local governance and decision-making: and
d) Other pror"isions of the Magna Carta for Women.

The Barangav appropriated for its GAD Program representing five (5) percent of its total
budget for CYs 2014 to 2018 respectivelv. Rer,ierv of the GAD Plan and GAD Budget
disclosed the utilization from CYs 2014 to 2018 such as fbllons:

Particulars 20t1 2015 2016 2017 2018 Total

Appropriations 104.357.75 I 1 6.271 .59 125^552.37 144,930.28 I57.039.30 6'18_ 151 29
Commitment:
l.egrhle 49.900.00 70.000.00 119-9rn.00
Irrelieible 34.000.00 85^000.00 70,000.00 189,000.00
Unexpended Balance 54,457.75 82,271.59 40,55237 71,930.28 87,039.30 339,251.29
7o of Utilization 47.82o/o 29.24o/o 67.7tr/o 48.30Yo 44.57o/o

Di sb ttr s eme nt s .for i ne li g i b I e expens e s to ta ling P I B 9. 0 0 0. 0 0

Revie*, of transactions revealed purchases of monoblock tables and chairs for CYs 2014
to 2018 rvere made totaling P}89,900.00 . This rvere considered ineligible expenses and
could not be appropriately charged against the GAD Fund as they are not r.rithin the
coverage of allorvable expenses enumerated in Section 4.C)4) of PWC-DILG-DBM-
NEDA Joint Memorandum Circular No. 2013-01.

In etTect, the GAD Fund r,r,as improperll'utilized insofar as the procured ineligible items
totaling P189.900.00 is concemed. The amount could have been used to finance other
prioritv projects. programs and actir,itres that are laufulh'chargeable against the GAD
Fund. to promote the rights and protection of the \\.omen and children in the barangal'.

Lou' percentctge o.f utilizatjon of the httdger

Relien of the transactions of the Barangav inr oli ing GAD disclosed that no portion of
the budget for CYs 201-l to 2018 har e been utrlized and the balance for the appropriation
remaur the same at the end of each vear rrhrle a ven loq, percentage of utilization
ransrnc tiom 19 1-loo to -18 30oo for C\. lttl-1 to 2018. As aresult, the Barangay shorved
lack ol comnltmenr to G{.D responsr\eness go\-ernance and has deprived lts
constltuents to ar arl the PP {s that should have been implemented to address gender
lssues and concerns panrcularlr on gender equalrtv and rvomen's empowerment. Further.
the attarnment of the ob.lectir e of the GAD Plan to protect and fulfill $,omen's human
nghts rr as not aclxe\.ed

\1'e recommended the Barangav to:

a. Prioritize the forrnulation of the GAD Code to provide guidance to planning,

program/project identification and policy making towards the attainment of the
objectives of RA 97lO;
b. Submit justification why the transactions should not be disallowed in audit for
the improper utilization of funds; and

c. Ensure that GAD Funds should be optimally utilized for the attainment of the
objective of the GAD Plan to protect and fulfillwomen's human rights.

Ma-y rre have -vour comments on the lbregoing audit observation within five (5) da1,'s
from receipt hereof.
T

o
- Supenising Auditor

Proof of receipt of AOIvI:

Punong Barangay'
Date:

Chairman on Appropriations
Date: