STATUS OF PRIOR YEAR’S AUDIT RECOMMENDATIONS

Urdaneta City Water District

As of December 31, 2018

Status of Reason/s for

Observations & Management Implementation Non-
Ref.
Recommendations Response/Action Implementa-
FI PI NI tion
     
1. Non-compliance with
COA Circular No.
77-61

Use of government motor Observation

vehicles were not properly No. 5, AAR
controlled and regulated 2017
owing to the non-
preparation by the District
of the Monthly Report of
Official Travels and the
Monthly Report of Fuel
Consumption, hence non-
conformance with the
requirements provided for
under COA Circular No.
77-61.

We recommended that Management will X

Management submit prepare Monthly
Monthly Report of Official Report of Official
Travels and Monthly Travels and
Report of Fuel Monthly Report
Consumption as of of Fuel
December 31, 2017. Consumption.
     
2. Splitting of purchases

Purchases of service Observation

connection materials No. 6, AAR
intended for stocks 2017
inventory and contingency
purposes having aggregate
total of ₱13,979,222.00
were deemed split,
circumventing the
necessity of bidding
requirement and depriving
the District of lower costs
which could had been
availed, had purchases
been made in bulk.

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 Status of Reason/s for
Observations & Management Non-
Ref. Implementation
Recommendations Response/Action Implementa-
FI PI NI tion

We again recommended Bids and Awards X

that the Bids and Awards Committee
Committee (BAC) to conducted one-
strictly comply with the time bidding for
Implementing Rules and goods
Regulations (IRR) of the requirement for
procurement law the year.
particularly on the
avoidance of split
purchases. Also, to strictly
comply with the one-time
bidding requirement for
goods requirement for the
year that presupposes
singularity of nature and
where amount involved
requires public bidding.
   
3. Deficiencies in Cash
Advances

Various deficiencies were Observation The BOD of

noted in the liquidation of No. 7, AAR UCWD (being
cash advances availed
a. Attendance by theby 2017 the policy-
General Manager to series making body)
of lectures for Real Estate issued Board
Practitioner has no lawful Resolution # 13
and valid authority which s.2016,
to support the charges authorizing the
made against the District’s BOD members
fund amounting to and the GM to
₱32,273.00. avail actual travel
expenses in
b. Cash advances for attending
travelling expenses were seminars,
not properly processed, trainings,
documented and liquidated conventions &
in violation of COA rules conferences
and regulations. which are
absolutely
c. Fuel/ gasoline expenses necessary in the
used for the private performance of
vehicle of the General their assignment
Manager relative to his or are beneficial
attendance to series of to UCWD.
Lectures for Real Estate

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 Status of Reason/s for
Observations & Management Non-
Ref. Implementation
Recommendations Response/Action Implementa-
FI PI NI tion
Practitioner held in Metro
Manila amounting to
₱5,064.96 were charged
against the District funds,
hence disallowed in audit.

We recommended that
management:

a. provide the COA the

legal basis used to support
payments of expenses
relative to the attendance
of the General Manager to
series of lectures for Real
Estate Practitioners.
Absence of valid and
lawful authority, the X
amount should be
refunded.
a. LWUA
b. limit cash advances for memorandum
travels to the amount circular 016.16 s
computed in the approved 2016.
Itinerary of Travels.
Itinerary should be
properly and completely
filled out. As a general
rule, meal and hotel
receipts were not the
required attachment for
traveling claims.
b. As per board
resolution #13
s.2016, the
General Manager
c. observe the ruling is allowed to
pertaining to the reimburse his
prohibition of issuing actual expenses
gasoline to privately- during the said
owned vehicles in approved travel.
compliance with set Hence, the
regulations in the use of attachments of
government funds and the meal and hotel
same be refunded to the receipts.
fund of the District.

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 Status of Reason/s for
Observations & Management Non-
Ref. Implementation
Recommendations Response/Action Implementa-
FI PI NI tion
c. No longer
issuing gasoline
to privately-
owned vehicles.
     
4. Registration and
representation
expenses paid
without legal basis

Registration fees and Observation

representation expenses on No. 9, AAR
various private 2017
organizations amounting to
₱39,000.00 were paid
without any legal basis and
not responsive to the
mission of the District,
hence considered as
irregular and unnecessary.
The said deficiency is
contrary to Section 3.1 and
4.1 of COA Circular 2012-
003 and Section 2 of PD
1445, hence shall be
disallowed in audit.

We recommended that Will deduct from X

management refund the each accountable
amount of registration fees employees'
and other expenses paid in payroll, the
their attendance to the corresponding
gatherings conducted by amount to be
PANAWAD and refunded.
PIWADA pursuant to
COA Circular No. 2012-
003 dated October 29,
2012.
     
5. Net Take Home Pay
below the GAA
requirement

Several employees of the Observation

District received their Net No. 11,
Take Home Pay below the AAR 2017
amount of Four thousand

57
 Status of Reason/s for
Observations & Management Non-
Ref. Implementation
Recommendations Response/Action Implementa-
FI PI NI tion
Pesos (₱4,000.00) required
under Section 47 of
Republic Act No. 10924,
the General
Appropriations Act (GAA)
for Fiscal Year 2017.

We recommended that X
Management strictly
comply with the provision
of Section 47 of RA 10924
of the General
Appropriations Act for
Fiscal Year 2017
following the order of
preference of deductions
of the obligations of
employees.

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