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  • 01-TaclobanCity2018 Transmittal Letters

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    Transmittal

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    7 views6 pages

    01-TaclobanCity2018 Transmittal Letters

    Uploaded by

    robert lachica
    Transmittal

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 6
    Repablie ofthe Philippines rove JN. COMMISSION ON AUDIT FnENEP Regional Office No, VIII siguaTuae 942 9 g a Candatug, Palo, Leyte "te, ob Copay' June 19, 2019 Honorable CRISTINA G. ROMUALDEZ Mayor Tacloban City . Madame: « heer Pursuant to Section 2, Article IX-D of the Constitution of the Republic of the Philipines, Section 43(2) of Presidential Decree No, 1445, otherwise known as the “Govemment Auditing Cod> of the Philippines,” and in line with this Commission's Continuing efforts to inform management on how fiscal responsibilty has been discharged, We are pleased to transmit the repo of our Auditor on the results of her audit on the accounts and operations of the City Government of Tacloban for the year ended December 31,2018. The audit was conducted to ascertain the propriety of financial transactions and compliance of the Local Government Unit with prescribed,cules and regulations. It was also made to ascertain the accuracy of financial records and reports, as well asthe fhimess of Presentation of the financial sitememts, The Auditor rendered 4 qualified opinion on the City’s’ Combined Financial ‘Statements for calendar year (CY) 2018, forthe following reasons: 1. The validity and accuracy of the Property, Plant, aad Equipment totaling PPORRilion, excluding Land end Construcion in Progress tcaling P577.89Millio, could not be ascerained because of the: (i) disparity of the Account balance at year-end as against the Report on the Physical Count on Property, Land, and Equipment and the lapsing schedule totaling FI &2Bilion and F23.72Million, respectively, for the same period: (ji) misclassification of accounts that overstated the Property, Plant, and Equipment by P2.60Million; and (i) the failure of the City to comply with the accounting and reporting Fequirements for Read Networks with a balance at yearend toialing P137.16Million. 2. The Accounts Payable totaling P260.91 Million was overstated by P28.93Million due to: (}) inclusion of obligations totaling P21.32Million that were already Paid; (ii) misclassfication of accounts totaling P6.86Million: and (ii) inclusion of payables amounting to P739,355.10 aging two years or more which are not covered by perfected contracts, representing balances of completed projets, the ‘Corresponding funds of which are subject for return to the source agency. 3. The Loans Receivable- Others eccount ‘otaling P10.84Million had remained Gutsinding and non-moving for the past three years, and no allovance ag ‘eupairment was provided for losses which may arse from its nom collevans ‘ber repor, the Auditor enumerated the following significant audit observations 1 {venue generation was nol maximized due to som upd revenue code ofthe iD sulting in unrealized income from local sources by 7237Milion ot sig Short of the targeted amount of 682 26¥iillion forthe yea. 2 Despite the absence of polices on the free use ofthe convention centr, some depen tn vate equesors vere accommodated fre of charge thenby depriving the City ftom generating additional income of PLatNelicn that (ould have been used fo finance the operation ofthe Tacloban City Convention Center, 3. Programs/projects totaling P93.8Million under the 20% Development Fund 4. The for Collective Negotiation Agreement (CNA) Incentive totalir PIS IMiion wer chrpes ate Ae i m0 10 the slovate Maintenance and Other Operating Expenses allotments in the year under review, this, casting doubt that savings were actully generated as ¢ result of the implementation of cost-cutting and systems improvement measures undertaken bythe City and its personel as identified inthe existing CNA ed supplements thereof, $ The deployment of 193 Job Order Workers to the different i Panlungsod members to do clerical and/or janitorial services, which “obliged the City 10 pay F10,93Million as of September 2018, resulted in redundancy of fay assignments and was deemed unnecessary considering the legisigtve function of the Sangguniang Panlungsod which donot involve inplementoane OF execution of programs and/or projects 6. Debi tvaness toiling P6.S7Milion or more were granted to Special Disbursing Officers (SDOs) for payment of pre-determined expenditures which should have been paid directly to the creditors, thus, exposed the government funds to the risk of misuse of loss. Likewise, additional cash advances were Fr me S208 even if the previous cash advances were not yet liquidated, ‘us there were «numberof instances tha the total cash accounabity of he SDOs had already exceeded the maximum amount coveredallowed by the fidelity bond. 7 Disbursements totaling P4.93Million were charged to the Local Disaster Risk Reduction and Management (LDRRM) Fund even ifthe same wee Not related (0 the four thematic area of diasler risk reduction and management 2.25Million, fs dctils of the foregoing audit findings and othe findings and observations are

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