Republic of the Philippines

Province of Isabela
Municipality of Gamu

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Audit Observations and Recommendations
For the Calendar Year 2019
As of June 29, 2020

Agency Action Plan Reason for

Target Implementation Partial/ Action
Status of
Person/ Date Delay/ Non- Taken/
Ref. Audit Observations Audit Recommendations Implement
Action Plan Dept. Implementat Action to be
ation
Responsible From To ion, if taken
applicable
Finding The design of the Office of the We recommended that the Office To adopt the Engineering October December Partially Budgetary Treasury
No. 1, Municipal Treasurer wherein of the Municipal Treasurer be recommendatio and Treasury 2019 2020 Implement constraints. Office has a
AAR the Petty Cash Custodian is also provided with steel protection in n of the Audit Office ed No funds separate
CY2019 situated is not properly planned the glass window counters and Team as available for enclosed
nor was equipped with fixtures put up a door enclosure to contained in the the room
to ensure safety and protection safeguard the overall office. AOM. improvemen attached to
of the government funds and Likewise, steel cabinets be t of that the office
property. furnished to safely keep the office. itself which
cashbooks and accountable they can use
forms. as a
stockroom
wherein
built-in
cabinets
were
provided
where they
can keep
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 their
cashbooks
and
accountable
forms.
Likewise, the
Treasurer’s
Office is an
enclosed one
equipped
with cash
vaults where
collections
and other
funds can be
kept safely.
Finding Set-up of Real Property Tax We recommended to the To adopt the Accounting, February March Fully The
No. 2, Receivable/Special Education Management the following: recommendatio Treasury and 2020 2020 Implement Accounting
AAR Tax Receivable accounts and a. The Municipal Treasurer n of the Audit Assessor’s ed Office
CY2019 their reciprocal accounts were furnish at the beginning of the Team as Office already
not made for CY 2019 using the year a certified list of contained in the made the
certified list showing name of AOM. necessary
taxpayers with due and
taxpayer and the amount reconciliatio
collectibles for the year collectible for the year to the n and
contrary to Section 20, Volume I Municipal Accountant based adjustments.
of the New Government on the Real Property Tax
Accounting System (NGAS) Account Register/Taxpayer’s
Manual for LGUs prescribed index card;
under COA Circular 2002-003, b. The Municipal Accountant
creating an unreconciled
record the Real Property
balance of P6,629,528.01 with
the records of the Municipal Tax/Special Education Tax
Treasury Office, hence resulted Receivables based on the Real
in unreliable balances of the Property Tax Account
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 affected accounts at year-end. Register/Taxpayer’s index
card;
c. The Municipal Accountant
make a proper reconciliation
of Real Property Tax
Receivable and Special
Education Tax Receivables
accounts with the record of
the Municipal Treasurer; and
d. The Municipal Treasurer send
demand letters to delinquent
taxpayers and conduct an
information campaign to all
real property owners within
the Municipality with
emphasis of granting
discounts when paid before
due dates and the possibility
of losing their property for not
paying at all.

Finding Unserviceable/obsolete We recommended that To make the GSO and February December On-going Requirement To make the
No. 3, properties with book value of Management undertake proper necessary Accounting 2020 2020 s for the necessary
AAR P3,876,185.55 were still disposal of identified actions for the Office proper actions for
CY2019 included as part of the PPE of unserviceable/obsolete PPEs and proper disposal disposal are the proper
the Municipality instead of the Municipal Accountant to of the still being disposal of
being disposed in accordance make the necessary adjusting unserviceable complied the
with Section 79 of PD 1445, thus entry after disposal to record the LGU properties. although unserviceabl
the actual financial position of derecognition of properties. request e LGU
the Municipality is affected. letter has properties.
been

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 submitted to
COA.
Finding Delays in the completion of the We recommended that To adopt the Engineering May 2020 May 2020 Fully Submitted
No. 4, five (5) projects funded under Management, thru the Municipal recommendatio Office, BAC implement the required
AAR various sources totaling Accountant, submit certified n of the Audit ed documents
CY2019 P18,872,664.46 were noted due copies of disbursement vouchers Team as to prove that
to slow undertaking of the and supporting documents contained in the there are no
contractor/s which are already showing that corresponding AOM. delays in the
subject to liquidated damages liquidated damages were already implementat
for the negative slippage deducted from the contractors’ ion of
incurred, thus accomplishment claims on the above projects, if various
of the project on time was not any. Further, the Municipal projects.
met as programmed. Engineer in coordination with the
MPDC to (a) ensure that the
contractors engage catch-up
program in order to fast track the
completion of the projects with
noted delays to avoid
rescindment of contract as
stipulated in Section 68 of RA
9184; (b) conduct an inventory of
work accomplished by the
contractor and impose liquidated
damages of at least equal to one-
tenth of one percent (0.1%) of
the cost of the unperformed
portion for every day of delay;
and (c) intensify monitoring of
project in order to avoid
recurrence of delay to other
projects by submission of
Statement of Time Elapsed and
Work Accomplished for all
infrastructure projects.
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Finding The Municipality’s utilization of We recommended to the To adopt the Accounting, March March Fully To make the
No. 5, the Local Disaster Risk Management the following: recommendatio Budget, 2020 2020 implement necessary
AAR Reduction and Management a. Utilize the Local Disaster Risk n of the Audit Treasury ed justifications
CY2019 Fund was not fully in Reduction and Management Team as and on the
accordance with the approved Fund in accordance with the contained in the LDRRM findings
LDRRM Plan; CY 2019 AOM. Officer made. The
approved Local Disaster Risk
appropriations were realigned; management
equipment purchased from Reduction and Management believes that
LDRRM Fund was improperly Plans as incorporated in the the LGU is
recorded; and Local Disaster local development plan and already
Risk Reduction and annual work and financial compliant
Management Office (LDRRMO) plan; with the
was not created, contrary to b. To desist in re-aligning current laws, rules
Section 21 of RA 10121, Item and
year appropriations for
6.4 and 6.5 of NDRRMC-DBM- regulations
DILG Joint Memorandum LDRRM Fund; and that
Circular No. 2013-1 dated c. The Municipal Accountant nothing
March 25, 2013, Item 5.5.2 of recognize purchase more to do
the immediately preceding equipment in accordance with with regards
mentioned Joint Memorandum Item 5.1.7 of COA-Circular No. thereto.
Circular, and Section 12 of RA 2012-002 dated September
No. 10121 and Section 2, Rule 6
12, 2012; and
of its Implementing Rules and
Regulations (IRR), hence the d. To create Municipality’s Local
desired goals and objectives Disaster Risk Reduction and
and enhancing disaster Management Office, under
preparedness and response the Office of the Municipal
capabilities is not fully attained Mayor pursuant to Section 21
of RA 10121

Finding Charges to Other Professional We recommended that To adopt the Treasury, March March Fully The
No. 6, Services account and Other Management ascertain valid recommendatio Budget and 2020 2020 implement management
AAR MOOE incurred by the LGU charges against Other n of the Audit Accounting ed already stop
CY2019 totaling P232,651.51 and Professional Services and set Team as the granting
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 P30,000.00, respectively, aside the grant of incentives in contained in the of honoraria
represents the amounts granted the form of honoraria/subsidy to AOM. to national
to assigned national national government employees government
government employees and job and others until the Municipality employees.
orders despite the has fully implemented the
Municipality’s inability to meet Modified Salary Standardization
the conditions set forth in Schedule and other conditions
Section 3.2 of DBM prescribed in DBM Compensation
Compensation Policy Guidelines Policy Guidelines 98-1.
No. 98-1.
Finding Registration fees for We recommended that To adopt the Liga ng mga May 2020 May 2020 Fully We reiterate
No. 7, seminars/trainings attended by Management refrain from paying recommendatio Barangay implement that the
AAR barangay officials and registration fees supported by n of the Audit ed AOM
CY2019 employees were cash advanced receipts issued directly by the Team as pertains to
by the barangay treasurers and hotel venue and require official contained in the the
were paid directly to the hotel receipts from the sponsoring AOM. transaction
venues which is not in agency or group for complete of our
accordance with Sec. 4(6) of PD documentation of government barangays
1445 that requires complete expenditures. On the other hand, not of the
documentation, thus, the disbursements of the LGU. Long
government expenditures are barangays may be held in trust before the
not appropriately supported and accounted for by the LGU is
Municipality and any payments already
thereof be done by the latter practicing
with transparency and the
accountability in absence of recommenda
official receipt to be issued by the tions made.
sponsoring agency. The LGU
already
instructed
the
barangays
for the
transfer of
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 funds related
to conduct of
seminars and
training for
proper
disbursemen
ts thereof.
Finding The Municipality of Gamu, We recommended that the To stop the Treasury, May 2020 December Fully The
No. 8, Isabela hired Legal Officer for Management desist from hiring a practice of Budget, 2020 implement management
AAR the month of January to Legal Officer without strictly hiring legal Accounting, ed already
CY2019 December, 2019 without the complying the provisions Section officer without HRMO and desist from
written conformity and 481 of Republic Act (RA) No. 7160 complying the Mayor’s the practice
acquiescence of the Solicitor and COA Circular No. 98-002 procedural Office of hiring
General (OSG) and the written requirements. legal officer
concurrence of the Commission without
on Audit prior to hiring contrary complying
to Section 481 of Republic Act with
(RA) No. 7160 and COA Circular requirement
No. 98-002, thus additional cost s and already
of P240,000.00 was incurred for requested
legal services. the Office of
the Solicitor
General for
written
conformity.
Finding Receipts of financial assistance We recommended that the Implement the Mayor’s and June 2020 October On- going The
No. 9, from the Provincial Government Management fast track the projects funded Engineering 2020 implementat
AAR of Isabela totaling P500,000.00 prompt implementation of all by the said Office ion of the
CY2019 for the Livelihood Infrastructure projects/programs funded out of financial project is on-
and for the Construction of the financial assistance given by assistance. going.
Smoke House received in year the Provincial Government of
2017 and 2018 remained Isabela in order to give the
unimplemented as of December constituents early benefits that
31, 2019, thus the benefits that could be derived therefrom
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 could be derived therefrom otherwise return the fund to the
were not achieved on time. source agency consistent with
Section 4.9 and 6.7 of COA
Circular No. 94-013.
Finding The Municipality’s 10-Year Solid We recommended that the To adopt the MENRO January December Partially The SWM
No. 10, Waste Management Plan for Management intensify its efforts recommendatio Designate 2020 2020 Implement plan has
AAR 2018-2027 is not compliant with to have the 10-Year Ecological n of the Audit ed been
CY2019 RA 9003 or the Ecological Solid Solid Waste Management Plan Team as submitted to
Waste Management Act of 2000 for 2018-2027 approved by the contained in the the EMB for
dated January 26, 2001 because National Solid Waste AOM. their
it did not bear the approval of Management Commission to approval.
the National Solid Waste achieve its vision of having an
Management Commission, thus, economically stable, healthy,
the programs implemented and safe, adaptive, resilient God
those to be implemented by the loving and law-abiding citizenry
Municipality may not be in living in a peaceful, orderly and
accordance with the National ecologically sound environment
Solid Waste Management with a responsive and dynamic
Framework. Moreover, the leadership.
Municipality was still operating We also recommended that
open dump site for solid wastes Management comply all
contrary to Sections 17(h) and applicable rules and regulations
37 of the same law, hence the of the Ecological Solid Waste
policy of the State in ensuring Management Act of 2000 to
the health of the public and ensure protection of public
environment may not be health and environment by
achieved. closing the open dump site, and
operate a sanitary landfill as a
final disposal site for solid and
eventually, residual wastes of the
municipality.
Finding Seventeen Projects (17) were We recommended that To adopt the BAC January December Fully The
No. 11, noted to have incomplete Management submit immediately recommendatio 2020 2020 implement management
AAR contract documentation funded to the Audit Team the complete n of the Audit ed has
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CY2019 under various sources totalling projects documents of the Team as submitted
P51,827,471.75 and were not remaining seventeen (17) contained in the the lacking
submitted contrary to COA projects as stated in the AOM. documents
Circular No. 2009-001 hence, schedules of this Audit pertaining to
the non conduct of auditorial Observation Memorandum. the 17
evaluation of contract cost and Likewise, ensure thereafter the projects.
timely inspection of projects, submission of all contracts,
thereby depriving the purchase orders and the like
management to be informed in together with the required
case of defect/deficiency noted supporting documents to
in the review and inspection facilitate auditorial review,
thereof. evaluation and inspection in
compliance with COA Circular No.
2009-001.
Finding Audit disallowances totaling We recommended that To make Mayor, January December Not The persons
No. 12, P2,578,770.33 still not been Management require immediate demands for the Treasurer 2020 2020 Implement liable in the
AAR settled despite the issuance of settlement of the audit immediate and ed ND has not
CY2019 Notice of finality of Decision disallowances having been issued settlement of Accountant yet settled
(NFD) and COA Order of with COE to avoid further legal the the amount
Execution (COE) contrary to actions as prescribed by the disallowances indicated
Section 7.1.3 of COA Circular aforementioned governing rules mentioned in therein.
No. 2009-006 dated September and regulations of the Circular. the AOM.
15, 2009, Rules and Regulations Likewise, strict compliance with
on Settlement of Accounts laws, rules and regulations on the
(RRSA) thus, to the prejudice of disbursements of funds to avoid
the Municipal Government of issuances of audit suspensions,
Gamu, Isabela. disallowances and charges in the
future.
Finding The Municipality has We recommended that the To adopt the Accounting May 2020 December Fully Reconciliatio
No. 13, consistently complied with the Municipal Accountant (a) recommendatio Office 2020 implement n and
AAR Revenue Regulations in the continue being compliant with n of the Audit ed adjustments
CY2019 withholding of taxes from the the revenue regulations on the Team as has been
salaries and wages of personnel withholding of taxes from contained in the made and
and payments of purchases and compensation of employees and AOM. remittance
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 business contracts for CY 2019
and in the remittance thereof to
the Bureau of Internal Revenue
(BIR) within the prescribed
period. However, the Due to BIR
account showed unremitted
amount of P446,075.33
pertaining to prior years,
depriving the government in the
implementation of projects had
it been remitted on time.
creditable taxes for payments to of the carry-
suppliers and contractors and the over balance
remittance thereof within the has also
prescribed period; (b) continue been made.
with the efforts to resolve and
reconcile the carry-over
discrepancy on the Due to BIR
account balance and effect
immediately the remittance of
the overdue balance.

NESTOR M. UY June 29, 2020

Name and Position of Agency Head/ Officer Date
Note: Status of Implementation may either be (a) Fully Implemented, (b) On going, (c) Not Implemented, (d) Partially Implemented, or (e) Delayed.

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