PART III

STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATION

Evaluation of the implementation of prior years’ audit recommendations revealed that out of ten (10) audit
recommendations as contained in the previous Annual Audit Reports, four (4) was fully implemented, two (2) were partially
implemented and the remaining four (4) was not implemented as of December 31, 2018.

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 Management Status of Reason for Non
Audit Observations/ Comments Audit Recommendations Ref
Action Implementation Implementation
1. Property, Plant and Equipment We recommended that CY Not Physical count of
(PPE) in the amount of ₱29.573 Management: 2017 Implemented PPE was conducted,
million were not supported with AAR however, the
updated reports and records, a) require the inventory report
thereby casting doubt as to the Municipal AAR submitted and the
veracity of reported amounts. Accountant and the CY accounting records
GSO to 2016 showed a difference
determine/investigat of ₱8.827 million.
e the cause/s of the
discrepancy and Restated in Part II of
make the necessary this Report.
adjustments in their
respective records;
and
b) require the
Municipal
Accountant and the
GSO to maintain
Property, Plant &
Equipment Ledger
Cards and Property
Cards, respectively
for each category as
required under the
NGAs for LGUs.

2. Disbursements totaling to We recommended that CY Fully No similar

₱155,000.00 were Management ensure that 2017 Implemented observation was
inappropriately charged against expenses charged against AAR noted for CY 2018.
Special Education Fund (SEF), the SEF were in
in contravention with Section accordance with the

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 Management Status of Reason for Non
Audit Observations/ Comments Audit Recommendations Ref
Action Implementation Implementation
272 of Republic Act (RA) No.
7160 and DECS, DBM and
provisions of RA No. 7160
DILG Joint Circular No. 01 s.
and DECS, DBM and
2017, thus depleted the SEF
DILG Joint Circular No. 01
funds which could have been
series of 2017.
used for other priority expenses
legitimately payable under the
fund.

3. LGU Baao has no approved We recommended CY Fully The Solid Waste

Solid Waste Management Plan that the Head of the 2017 Implemented Management Plan of
for CY 2017 and for the past Agency require the Solid AAR the LGU was already
years, thus the Agency had no Waste Management Board, prepared and
established systems, procedures the Municipal Planning submitted to the
and processes to effectively Office and all the CY DILG for approval.
implement waste management Departments involve in 2016
functions as mandated by planning and AAR
Republic Act (RA) No. 9003. conceptualizing the Solid
Waste Management Plan to
give their full attention and
cooperation to comply with
whatever requirement of
the National Solid Waste
Management Commission
for the approval of the
LGU’s SWMP. We
likewise recommend that
the Local Chief Executive
consider the strict
implementation of
Municipal Ordinance No.

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 Management Status of Reason for Non
Audit Observations/ Comments Audit Recommendations Ref
Action Implementation Implementation
2011-056, specifically
Sections 11 and 12, to
instill discipline among its
constituents and make
waste segregation at source
a habit.

4. LGU Baao failed to establish a We recommended CY Fully The Local Chief

Local Council for the Protection and Management agreed 2017 Implemented Executive issued
of Children (LCPC) and provide give priority to the creation AAR Executive Order No.
necessary appropriation in the of a functional LCPC in 2018-011 on May 15,
amount of ₱1,229,980.54 accordance with the 2018 creating the
representing 1 percent of the requirement of the law and LCPC and defining
Internal Revenue Allotment provide necessary its functions.
(IRA) for CY 2017 as appropriation for its PPAs
prescribed under Republic Act to ensure proper
(RA) No. 9344 and DILG MC coordination and assistance
No. 2012-120, thus resulted to in the adoption and
non-achievement of the implementation of
objective of the law. comprehensive plan on
delinquency prevention.

5. Simultaneous implementation We recommended that CY Partially For CY 2018, several

of projects by administration Management consider 2017 Implemented infrastructure projects
where the LGU did not have the implementing projects by AAR were already through
capacity to undertake resulted in straight contract to ensure straight contract.
slippages ranging from eight to its 100 percent
one thousand days. accomplishment as planned
and not delay the
immediate utilization of the
projects by the

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 Management Status of Reason for Non
Audit Observations/ Comments Audit Recommendations Ref
Action Implementation Implementation
beneficiaries.

6. LGU Baao did not maintain We recommended that CY Not Copies of the MOA
files of Memoranda of Management obtain duly 2017 Implemented for fund transferred
Agreement for grant-funded signed copies of the MOA AAR by national
projects with a balance of for each existing, on-going government agencies
₱65.285 million as of year-end, and un-liquidated fund were not provided to
thus evaluation of compliance transfers to which the LGU the Office of the
therewith cannot be made. is a party and henceforth Auditor, hence
ensure that all concerned compliance by the
offices, especially the LGU to the MOA on
offices of the Commission the implementation of
on Audit, Municipal the PPA cannot be
Accountant, Municipal validated.
Planning and Development
Officer and the Mayor’s
Office be furnished with
duly signed MOA for their
reference.

7. The Municipality was not able We recommended CY Not For CY 2018, 39

to implement 38 projects
budgeted at ₱48.89 million or
47.5 per cent of key programs
and projects under the 20%
Development Fund thereby
depriving its constituents of the
benefits they could have derived
had all the projects been
implemented during the year.
that Management require 2017 Implemented projects budgeted at
the Municipal AAR ₱37.16 million were
Development Council to not implemented.
CY
judiciously plan the Restated in Part II of
programs/ projects/ 2016 this Report.
activities to be funded out AAR
of the 20% EDF in
accordance with the
mandate of DILG-DBM

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Audit Observations/ Comments
8. The non-recording of collected
receivables on the advance
payment and prior years’
collectibles in the amount of
₱2.869 million understated the
balances of the Real Property
Tax (RPT)
Receivables/Deferred RPT and
Special Education Tax (SET)
Receivables/Deferred SET
accounts as of December 31,
2016.
Management Status of Reason for Non
Audit Recommendations Ref
Action Implementation Implementation
JMC No. 2011-1. We
likewise recommend that
Management implement its
projects using straight
contract to boost 20% DF
projects implementation.
We recommended that AAR Fully
Management: (a) require CY Implemented
the Municipal Accountant 2016
to record the applicable
receivables for advance
payment and prior years’
collectibles to properly
adjust the amount
previously booked up in
RPT Receivable/Deferred
RPT and SET
Receivable/Deferred SET;
adjust the receivables and
deferred income for the
collections of current year
advance payment and prior
years’ tax due to properly
reflect the balance of RPT
Receivable/ Deferred RPT
and SET Receivable
and /Deferred SET;
reconcile the balance of
RPTR/SETR and
DRPT/DSET against total
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Audit Observations/ Comments
Management Status of Reason for Non
Audit Recommendations Ref
Action Implementation Implementation
RPT delinquent as of
December 2016; and (b)
instruct the Municipal
Treasurer to forward to the
Office of the Municipal
Accountant all documents
attached to all remittances
for reference in recording
in the books of the LGU.

9. Fund transfers to Barangay We recommended that the AAR Some of the Partially Regional Office of
accounts totaling ₱6.65 million Office of the Municipal CY completed Implemented the DSWD has not
representing Municipal Local Accountant coordinate 2016 projects have yet forwarded the
Government Unit (MLGU) with the KALAHI office already been liquidation report of
counterpart to KALAHI funded and furnish the latter with recorded. some of the projects.
Barangay projects remain un- the list of barangays and
liquidated despite completion of their respective un-
the projects resulting in the liquidated local
overstatement of Due from counterparts so that
LGU account and municipal records may be
understatement of updated. We further
corresponding expense account recommend that a
by the same amount. provision be added to the
Agreement which would
require KALAHI as the
implementing agency to
submit a liquidation report
to all parties in the MOA
within a specified number
of days after project
completion.

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 Management Status of Reason for Non
Audit Observations/ Comments Audit Recommendations Ref
Action Implementation Implementation

10. The Non-Governmental We recommend that the AAR Several Not BAMVESCO is no
Organizations/ People’s Org. Office of the Municipal CY demand Implemented longer existing, some
(NGO’s/POs) failed to submit Accountant ensure that the 2012 letters were of the officers were
the Fund Utilization Reports provisions prescribed in sent to already dead while
within the prescribed period for COA Circular No. 2007- BAMVESCO some can no longer
the funds released by the 001 which pertains to the but to no be located.
Municipal Government of Baao guidelines in the granting, avail.
in the total amount of utilization, accounting, and
P610,564.00, hence remained auditing of the funds
unliquidated as of December 31, released to Non-
2012, contrary to Section 5.4 of Governmental
COA Circular No. 2007-001 Organizations/ People’s
dated October 25, 2007. Organizations be strictly
enforced.

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