Catanauan2019 Audit Report

We recommended that the Municipal Mayor require the:
a. Municipal Treasurer (MT) to prepare a list of individual taxpayers with delinquencies

for CY 2001 and below and another list for CYs 2002 to 2019 as of December 31,
2019 and furnish it to the Municipal Accountant;
b. Municipal Accountant to facilitate the adjustment of RPT/SET Receivables once the

lists of delinquent taxpayers for CYs 2001 and below and CYs 2002 to 2019 are
received from the MT to reflect the correct balance of these receivable accounts;
c. Municipal Accountant to ensure that all collections are properly recorded;
d. Municipal Assessor to facilitate the immediate cleansing of property tax records to

have a reliable Real Property Tax Assessment Roll and thereafter, a reliable RPT
and SET Receivables accounts; and
e. MT to continue the enforcement of remedies as provided in Republic Act No. 7160.
2. The Report on the Physical Count of Property, Plant and Equipment and Report on the
Physical Count of the Road Network System were not submitted; property, plant and
equipment (PPE) totaling P36,495,919.74 were not individually identified and not
provided with depreciation; PPE ledger cards and property cards were incomplete; and
Property Acknowledgement Receipt (PAR) were incomplete and not renewed every
three years, due to incomplete conduct of physical inventory and unavailability of
relevant records/documents, thus the valuation and existence of PPE recorded in the
books totaling P518,736,896.28 is unreliable.
We reiterated our recommendation that the Municipal Mayor require the:
a. Inventory Committee to complete the physical inventory of all property of the

Municipality and prepare and submit immediately the pertinent inventory reports;
b. Municipal General Services Officer (MGSO) to prepare and maintain complete and
updated property cards; and
c. MGSO and Municipal Accountant to reconcile their records.
We also recommended that the Municipal Mayor require the:
a. MGSO to submit to the Audit Team the copy of PAR corresponding the purchases of
PPE during CY 2019 for review;
b. MGSO to maintain complete copy of PAR and renew it every three years;
c. Municipal Accountant to prepare and submit the Schedule of Depreciation and

Accumulated Depreciation for Special Education Fund;
d. Municipal Accountant to maintain complete and updated PPE Ledger Card;
e. Municipal Accountant to identify the composition of the recorded PPE under General
Fund totaling P36,495,919.74; and
Municipality of Catanauan, Quezon
(Name of Agency)
AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION

Audit Observations and Recommendations
For the Calendar Year CY 2019
As of _____________
Agency Action Plan Reason for

Target Partial/Delay/ Action
Audit Audit Status of
Ref. Action Person/Dept. Implementation Non- Taken/Action
Observations Recommendations Implementation
Plan Responsible Date Implementation, to be Taken
From To If applicable
___________________________________ _____________________
Name and Position of Agency Officer Date
Note: Status of Implementation may either be (a) Fully Implemented (FI), (b) Ongoing (O), (c) Not Implemented (NI), (d) Partially Implemented (PI),
or (e) Delayed (D)
EXECUTIVE SUMMARY
Introduction
The Municipality of Catanauan is a first class municipality that lies along the coastal lines of
Bondoc Peninsula in the southern part of Quezon Province. The existence of Catanauan as
a town was first recorded in the map of Father Pedro Murillo, date 1734. However, the
recognized foundation year of the Municipality was in the year 1715.
The following are the key officials of the Municipality:
Hon. Ramon A. Orfanel Municipal Mayor

Hon. Leonardo DL. Abella Municipal Vice Mayor
Rixon B. Comiso Municipal Councilor
Marcos Niño A. Belleza Municipal Councilor
Joy O. Natividad Municipal Councilor
Benjamin H. Montano Municipal Councilor
Ederlinda S. Ramos Municipal Councilor
Michael C. Palermo Municipal Councilor
Consuelo P. Frondoza Municipal Councilor
Rodolfo A. Orfanel Municipal Councilor
Francisco Joseven R. Caneda Pambayang Pederasyon Liga ng mga Barangay President
Rycamiel D. Natividad Pambayang Pederasyon ng mga Sangguniang Kabataan
President
Included also as part of key personnel of the Municipality are Ms. Julia A. Reforma,
Municipal Accountant, Mr. Carmelo J. Haway, Municipal Treasurer and Ms. Melinda D.
Ramos, Municipal Budget Officer.
During the year, the personnel complement of the Municipality totaled 295 which is
composed of the following:
Elective Officials 12
Permanent Employees 116
Coterminous 5
Casual 14
Job Order 148
Total 295
Financial Highlights
For Calendar Year (CY) 2019, the Municipality generated a total income of P221,257,365.83
from local taxes, share from internal revenue collections, service and business income and
other receipts. The current and continuing appropriations for the year amounted to
P246,842,973.87 and P27,130,714.86 respectively, for a total of P273,973,688.73. The
amount of P204,977,527.87 was expended under the current appropriations, while the
amount of P14,997,907.93 was expended under the continuing appropriations.
i
The Municipality’s financial condition and results of operations for CY 2019 with comparative
figures for CY 2018 are summarized below and shown in detail in the attached audited
financial statements:
Increase
2019 2018 (Decrease)
Total Assets P 809,053,784.34 P 705,105,203.09 P103,948,581.25

Total Liabilities 380,777,645.27 315,454,668.69 65,322,976.58
Equity 428,276,139.07 389,650,534.40 38,625,604.67
Total Income 221,257,365.83 202,283,268.42 18,974,097.41

Expenses
Personnel Services 79,909,381.93 67,651,537.27 12,257,844.66
Maintenance and Other
Operating Expenses 66,156,899.03 54,844,277.14 11,312,621.89
Financial Expenses 4,443,682.65 4,777,701.53 (334,018.88)
Non-Cash Expenses 23,139,801.65 10,879,983.96 12,259,817.69
Transfers, Assistance and
Subsidy to 11,217,960.15 26,456,870.56 (15,238,910.41)
Loss on Sale of Property,
Plant and Equipment 1,543,063.36 0.00 1,543,063.36
Total Expenses 186,410,788.77 164,610,370.46 21,800,418.31
Surplus for the Period 34,846,577.06 37,672,897.96 (2,826,320.90)
Scope of Audit
Financial and compliance audit was conducted on the accounts and operations of the
Municipality for CY 2019. The audit was conducted to ascertain the propriety of financial
transactions and compliance of the Municipality with prescribed rules and regulations. It was
also made to ascertain the accuracy of financial records and reports, as well as the fairness
of the presentation of the financial statements. The audit consisted of reviewing of operating
procedures, interview of concerned government officials and employees, verification,
reconciliation and analysis of accounts and such other procedures considered necessary.
Auditor’s Opinion on the Financial Statements
The Auditor rendered a qualified opinion on the fairness of the presentation of the financial
statements of the Municipality due to the following:
1. The balances of Real Property Tax (RPT) and Special Education Tax (SET) Receivables
accounts totaling P116,052,823.24 are unreliable because: a) its year-end balances are
not equal; b) RPT and SET Receivables set up for CY 2019 were P16,700,708.11 and
P20,875,885.14, respectively, hence unequal and the same have no supporting list of
taxpayers from whom such will be collected; c) the Schedule of Real Property Tax
Delinquencies submitted by the Municipal Treasurer’s Office showing an uncollected
total amount of P50,722,854.08 includes the collectibles for CY 2001 and below; and
d) credits to the said accounts pertain to CY 2019 taxes only. Moreover, the statutory
remedies in order to collect the delinquent taxes have not been fully enforced.
ii
provided with depreciation; PPE ledger cards (PPELC) and property cards were
incomplete; and Property Acknowledgement Receipt (PAR) were incomplete and not
renewed every three years due to incomplete conduct of physical inventory and
unavailability of relevant records/documents, thus the valuation and existence of PPE
recorded in the books totaling P518,736,896.28 is unreliable.
3. Fourteen parcels of donated land which are titled in the name of the Municipality were
not recorded in the books due to the absence of fair market values and copy of titles,
thus understating the Land account by undetermined amount. Moreover, eight parcels
remain untitled of which four have no valid supporting documents to support the titling,
thus exposing the subject lots to third party claims which could be detrimental to the
government in terms of litigation costs.
4. Guaranty/Security Deposits Payable totaling P516,044.21 which have been outstanding

for two years or more were still not reverted to the Unappropriated Surplus of the
General Fund (GF), thus existence and correctness of the balance of the account cannot
be relied upon.
5. Receivables from the former Municipal employees totaling P78,838.69 representing

payments made by the Municipality of their personal loan with the Land Bank of the
Philippines-Mulanay Branch remain uncollected at year-end. Also, the use of Due from
Officers and Employees account instead of Other Receivables account resulted
correspondingly in the overstatement and understatement of its balances, both by
P78,838.69.
For the exceptions cited above, the Auditor recommended that the Municipal Mayor:
1.1 require the Municipal Treasurer (MT) to prepare a list of individual taxpayers with
delinquencies for CY 2001 and below and another list for CYs 2002 to 2019 as of
December 31, 2019 and furnish it to the Municipal Accountant;
1.2 require the Municipal Accountant to facilitate the adjustment of RPT/SET Receivables
once the lists of delinquent taxpayers for CYs 2001 and below and CYs 2002 to 2019
are received from the MT to reflect the correct balance of these receivable accounts;
1.3 require the Municipal Accountant to ensure that all collections are properly recorded;
1.4 require the Municipal Assessor to facilitate the immediate cleansing of property tax
records to have a reliable Real Property Tax Assessment Roll and thereafter, a reliable
RPT and SET Receivables accounts; and
1.5 require the Municipal Treasurer to continue the enforcement of the remedies as
provided in Republic Act No. 7160.
2.1 require the Inventory Committee to complete the physical inventory of all property of
the Municipality and prepare and submit immediately the pertinent inventory reports;
iii
2.2 require the Municipal General Services Officer (MGSO) to prepare and maintain
complete and updated property cards;
2.3 require the MGSO and Municipal Accountant to reconcile their records;
2.4 require the MGSO to submit to the Audit Team the copy of PAR corresponding the
purchases of PPE during CY 2019 for review;
2.5 require the MGSO to maintain complete copy of PAR and renew it every three years;
2.6 require the Municipal Accountant to prepare and submit the Schedule of Depreciation
and Accumulated Depreciation for Special Education Fund;
2.7 require the Municipal Accountant to maintain complete and updated PPELC;
2.8 require the Municipal Accountant to identify the composition of the recorded PPE
under GF totaling P36,495,919.74;
2.9 require the Municipal Accountant to strictly observe the regulation on depreciation; and
2.10 constantly monitor the status of physical inventory taking to ensure its completion and
submission of complete inventory reports within the deadline.
3.1 instruct the Municipal Assessor and MT to facilitate the titling of eight parcels of land
owned by the Municipality;
3.2 instruct the Municipal Assessor and MT to exert effort to locate and secure the
documents that will support the ownership of all the lots owned by the Municipality;
3.3 require the Appraisal Committee/Team to properly appraise the donated land as to the
fair values at the time of acquisition and apply the same to the purchased land if the
acquisition costs cannot be determined reliably;
3.4 instruct the Municipal Assessor and MT to request the owner’s copy of title for the six
parcels of land from the Registry of Deeds; and
3.5 require the Municipal Accountant to record the land once the fair values are
established and copy of titles are received.
4.1 instruct the Municipal Accountant to confirm with the contractor and to request him to
submit documents pertaining to his claims, otherwise revert the account to the
Unappropriated Surplus of the GF, subject to an authority from the Sangguniang
Bayan through a Resolution with the condition that appropriation shall be made in the
event that claim arises in the future pursuant to the provisions of Section 98 of
Presidential Decree (PD) No. 1445; and
4.2 instruct the Municipal Accountant to trace down the accounts named as “collection”
and provide for subsidiary ledgers for each supplier tracked down for easy facilitation
and monitoring of each account.
iv
5.1 require the MT to exert effort to collect the remaining receivables from the former
Municipal employees;
5.2 in case of non-settlement of the amount, file appropriate charges against the
concerned persons, otherwise require the Municipal officials who authorized the use of
Municipal funds for payment of personal loans of employees to settle the same; and
5.3 require the Municipal Accountant to make an adjustment of the books by debiting the
Other Receivables account and crediting the Due to Officers and Employees account
both by P78,838.69, for proper presentation of accounts in the financial statements.
Other Significant Observations and Recommendations
The other significant audit observations and recommendations in the audit of the
Municipality for CY 2019 are as follows:
1. Insurable properties of the Municipality with acquisition cost of P87,108,748.43 and with
a net book value of P68,262,718.34 were not covered with appropriate property
insurance with the Government Service Insurance System (GSIS), thus leaving the
properties at risk of total loss without the right of indemnification.
We recommended that the Municipal Mayor and the MT see to it that all the insurable
properties of the Municipality are covered with insurance with the GSIS in compliance
with the provisions of Commission on Audit Circular No. 92-390 and RA No. 656.
2. Payments for various procurement totaling P46,405,019.12 were not supported with
proper and complete documentation as the same were inadvertently not attached by the
Bids and Awards Committee (BAC) Secretariat and overlooked by the Municipal
Accountant, rendering the validity, legality and propriety of the disbursements doubtful.
a. Municipal Accountant in coordination with the BAC Chairman to submit the lacking
supporting documents to the Audit Team for further evaluation of paid procurement
transactions;
b. BAC Chairman to ensure that the Notice of Award and Notice to Proceed are duly
received by the Contractor;
c. BAC Chairman to ensure strict compliance with the documentary requirements to

substantiate the procurement activities of the Municipality; and
d. Municipal Accountant to ensure that the Disbursement Voucher is supported with

proper and complete documents before processing its payment.
3. Disposal of fully depreciated and unserviceable properties with residual value totaling
P2,109,506.78 was not in accordance with the regulation, rendering the regularity of
such disposal questionable.
v
We recommended that the Municipal Mayor require the MGSO to:
a. submit the following:
 Inventory and Inspection Report of Unserviceable Property (IIRUP) for those

disposed through sale and destroyed with corresponding appraisal value and
duly certified by the concerned officials;
 list of transferred property with corresponding Invoice and Receipt of Property;
 photos of valueless property before and during condemnation either by burning,

pounding and the like;
 documents on the public auction conducted; and
 other documents that will substantiate the regularity of such disposal.
b. organize the PAR in accordance with the sequence of PPE in IIRUP to facilitate
verification; and
c. ensure that the complete details of the PPE are indicated in all PAR.
Henceforth, ensure that the disposal of the Municipality’s PPE is in accordance with
Section 79 of PD No. 1445 and COA Circular No. 89-296.
4. Motor vehicles of the Municipality costing P1,670,900.00 were not supported by

Certificates of Registration with the Land Transportation Office (LTO), thus exposing the
subject vehicles to third party claims which could be detrimental to the government in
terms of litigation costs.
We recommended that the Municipal Mayor instruct the MGSO to facilitate the timely
registration of the motor vehicles with the LTO in compliance with Section 5 of RA No.
4136.
5. Consolidated Property Inventory Form (PIF) was neither prepared nor submitted by the
Municipality to the GSIS and to the Audit Team, thus complete information required by
GSIS on the inventory of assets and properties of the Municipality, including its latest
appraised/market values was not obtained.
We recommended that the Municipal Mayor direct the MGSO to prepare and submit the
consolidated PIF to the GSIS and to the Audit Team on or before April 30 of each year in
compliance with COA Circular 2018-002.
6. Programs/Projects/Activities (PPAs) attributed to Gender and Development (GAD)

totaling P29,121,293.00 have no supporting Harmonized Gender and Development
Guidelines Tools due to lack of training regarding its preparation, hence the absence of
proof of analysis whether the said PPAs are partly or wholly gender-responsive which
consequently prevented the Audit Team from conducting proper validation of the
accomplishments.
vi
We recommended that the Municipal Mayor ensure that all members of the Municipal
GAD Focal Point System (MGFPS) including elected local officials and department
heads undergo capacity building programs on GAD which shall include but not be limited
to gender mainstreaming, gender analysis, gender-responsive planning and budgeting,
and GAD-related tools in order for the MGFPS to be fully functional.
7. Six development projects with total continuing appropriation of P3,690,322.00 and one
project with appropriation of P1,112,312.00 in CY 2019 remain partially/not implemented
at year-end, thereby depriving the constituents of the Municipality of the benefits of
completed projects to which these funds had been allocated.
We recommended that the Municipal Mayor require the Municipal Planning and
Development Coordinator to strictly follow the Project Procurement Management Plan
particularly the timetable for the implementation of development projects and to enhance
its monitoring to ensure timely completion so that intended beneficiaries avail the
maximum benefits that could be derived therefrom.
8. Only 70.98 percent or P5,331,068.00 out of P7,510,510.88 appropriation for CY 2019

Local Disaster Risk Reduction and Management Fund (LDRRMF)- Mitigation Fund was
utilized and P166,106.29 of which are not proper charges, thereby defeating the
objectives of enhancing the disaster preparedness and response capabilities of the
Municipality to reduce the disaster risks. Moreover, no monthly Report on Sources and
Utilization of LDRRMF for CY 2019 was submitted to the Audit Team, thus prevented the
Audit Team from conducting timely audit to determine if the utilization of the fund is
compliant with the guidelines.
We recommended that the Municipal Mayor require the Municipal Disaster Risk and
Reduction Management Officer to:
a. carefully study the feasibility of the projects/activities before inclusion in the Municipal
Disaster Risk Reduction and Management Plan to ensure its implementation in order
for the Municipality to be adequately prepared for any upcoming disaster/calamity
and reduce its risk;
b. strictly comply the regulation regarding the proper utilization of DRRMF to avoid audit
disallowance; and
c. submit to the Audit Team the Monthly Report on the Sources and Utilization of
DRRMF on or before the 15th day after the end of each month.
We further recommended that the Municipal Mayor require the Municipal DRRM Council
to submit to the Audit Team a copy of the Municipal Resolution which provides funds for
the purchase of aluminum divider, and the report/schedule showing the source of funds
for the purchase of dump truck and aluminum divider.
9. The Municipality still has no 10-Year Solid Waste Management Plan (SWMP) because it
was not yet approved by the National Solid Waste Management Commission (NSWMC),
and 35 of 46 barangays or 76.09 percent still have no Materials Recovery Facility (MRF)
due to lack of funds, hence the Municipality has no guide in implementing its solid waste
management system consistent with the National Solid Waste Management Framework
and may result in negative impact on public health and environment.
vii
We recommended that the Municipal Mayor require the Municipal Environment and
Natural Resources Officer-Designate to coordinate with the NSWMC regarding the
status of review on the Municipality’s 10-Year SWMP in order to know the next steps to
be undertaken that will facilitate approval of the said Plan.
We further recommended that the Municipal Mayor provide assistance for the
establishment of MRF in 35 barangays and intensify information campaign and
education in all barangays on the necessity of MRF to ensure protection of public health
and environment.
10. The Municipality awarded the contract for the implementation of the project
“Construction of San Isidro-Bolo-San Vicente Kanluran-San Vicente Silangan-Sta. Maria
Dao Farm to Market Road” on July 19, 2019 even without the duly approved
Implementation Management Agreement (IMA) between the Municipality and the
Department of Agriculture-Philippine Rural Development Project as the IMA was made
and entered into on September 19, 2019 only. Moreover, this IMA which date is
September 19, 2019 was signed by the former Municipal Mayor whose term had ended
on July 1, 2019, thereby rendering the legality and validity of the IMA and the
implementation of the project questionable.
We recommended that the Municipal Mayor take the necessary action in order to
address the noted deficiencies that may possibly invalidate the IMA and the Contract
Agreement with the Contractor to avoid audit disallowances.
11. The copy of Contract Agreement between the Municipal Government of Catanauan,
Quezon and DQT Builders Corporation for the project “Construction of San Isidro-Bolo-
San Vicente Kanluran-San Vicente Silangan-Sta. Maria Dao Farm to Market Road” with
a contract amount of P171,067,548.56, which was approved and notarized on
September 24, 2019, was submitted to the Audit Team on December 6, 2019 or after the
lapse of five working days, thereby prevented the Audit Team from conducting timely
auditorial review.
We recommended that the Municipal Mayor direct the BAC Chairman or Secretariat to
strictly comply with the regulation on the submission of copy of contract together with the
supporting documents within five working days from its approval to facilitate the conduct
of auditorial review.
The above observations and recommendations contained in the Report were communicated
to the Municipal Mayor and other key officials under various Audit Observations
Memoranda. Due to the Covid-19 pandemic, the exit conference with Management officials
and staff was not conducted. However, their views and comments stated in the Agency
Action Plan and Status of Implementation as of December 31, 2019 and in various letters
received from the Local Chief Executive were acknowledged and considered in the report,
where appropriate.
Summary of Total Suspensions, Disallowances and Charges as of Year-End
As of December 31, 2019, the Municipality’s unsettled audit disallowances totaled

P2,100,252.16 while none for audit suspensions and charges.
viii
Status of Implementation of Prior Year’s Audit Recommendations
Of the 16 prior year’s audit recommendations embodied in the CY 2018 Annual Audit
Report, one was fully implemented, six were partially implemented, eight were not
implemented by the Municipality and one was dropped.
ix
TABLE OF CONTENTS
Part Subject Page
I AUDITED FINANCIAL STATEMENTS

 Independent Auditor’s Report 1
 Statement of Management’s Responsibility 4
for Financial Statements
 Statement of Financial Position 5
 Statement of Financial Performance 6
 Statement of Changes in Net Assets/Equity 7
 Statement of Cash Flows 8
 Statement of Comparison of Budget and Actual Amounts 9
 Notes to Financial Statements 11
II AUDIT OBSERVATIONS AND RECOMMENDATIONS
 Financial and Compliance Audit 50

 Gender and Development 75
 20 Percent Development Fund 77
 Local Disaster Risk Reduction and Management Fund 80
 Solid Waste Management 84
 Compliance with Tax Laws and Regulations 86
 Compliance with GSIS, PhilHealth and PAG-IBIG Laws 86
and Regulations
 Unsettled Suspensions, Disallowances and Charges 86
 Official Development Assistance (ODA) Fund 86
III STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT

RECOMMENDATIONS 90
IV APPENDICES
Appendix 1- Statement of Financial Position (by Fund)
Appendix 2- Statement of Financial Performance (by Fund)
Appendix 3- Statement of Changes in Net Assets/Equity (by Fund)
Appendix 4- Statement of Cash Flows (by Fund)
Appendix 5- Schedule of Real Property Tax Delinquencies
Appendix 6- Schedule of Land Owned by the Municipality
Appendix 7- Schedule of Guaranty/Security Deposits Payable
Appendix 8- Procurements With Incomplete Supporting Documents
Appendix 9- Procurements With Incomplete Invitation to Observers
Appendix 10- Schedule of Disposed Property, Plant and Equipment
Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. IV-A
Commonwealth Avenue, Quezon City
INDEPENDENT AUDITOR’S REPORT
Hon. RAMON A. ORFANEL

Municipal Mayor
Catanauan, Quezon
Qualified Opinion
We have audited the financial statements of the Municipality of Catanauan, Quezon which
comprise the Statement of Financial Position as at December 31, 2019, and the Statement
of Financial Performance, Statement of Changes in Net Assets/Equity, Statement of Cash
Flows and Statement of Comparison of Budget and Actual Amounts for the year then ended
and Notes to the Financial Statements, including a summary of significant accounting
policies.
In our opinion, except for the possible effects of the matter described in the Basis for
Qualified Opinion section of our report, the accompanying financial statements present
fairly, in all material respects, the financial position of the Municipality of Catanauan, Quezon
as of December 31, 2019, and its financial performance, its cash flows and its comparison of
budget and actual amounts for the year then ended in accordance with the International
Public Sector Accounting Standards (IPSAS) with Philippine Application Guidance (PAG).
Basis for Qualified Opinion
As discussed in Part II, Audit Observations and Recommendations portion of this report, the
following matters were noted:
1. The balances of Real Property Tax (RPT) and Special Education Tax (SET) Receivables
accounts totaling P116,052,823.24 are unreliable because: a) its year-end balances are
not equal; b) RPT and SET Receivables set up for Calendar Year (CY) 2019 were
P16,700,708.11 and P20,875,885.14, respectively, hence unequal and the same have
no supporting list of taxpayers from whom such will be collected; c) the Schedule of Real
Property Tax Delinquencies submitted by the Municipal Treasurer’s Office showing an
uncollected total amount of P50,722,854.08 includes the collectibles for CY 2001 and
below; and d) credits to the said accounts pertain to CY 2019 taxes only. Moreover, the
statutory remedies in order to collect the delinquent taxes have not been fully enforced.
provided with depreciation; PPE ledger cards and property cards were incomplete; and
Property Acknowledgement Receipt were incomplete and not renewed every three years
due to incomplete conduct of physical inventory and unavailability of relevant
records/documents, thus the valuation and existence of PPE recorded in the books
totaling P518,736,896.28 is unreliable.
3. Fourteen parcels of donated land which are titled in the name of the Municipality were
not recorded in the books due to the absence of fair market values and copy of titles,
thus understating the Land account by undetermined amount. Moreover, eight parcels
remain untitled of which four have no valid supporting documents to support the titling,
thus exposing the subject lots to third party claims which could be detrimental to the
government in terms of litigation costs.
4. Guaranty/Security Deposits Payable totaling P516,044.21 which have been outstanding

for two years or more were still not reverted to the Unappropriated Surplus of the
General Fund, thus existence and correctness of the balance of the account cannot be
relied upon.
5. Receivables from the former Municipal employees totaling P78,838.69 representing

payments made by the Municipality of their personal loan with the Land Bank of the
Philippines-Mulanay Branch remain uncollected at year-end. Also, the use of Due from
Officers and Employees account instead of Other Receivables account resulted
correspondingly in the overstatement and understatement of its balances, both by
P78,838.69.
We conducted our audit in accordance with International Standards of Supreme Audit

Institutions (ISSAIs). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the agency in accordance with the ethical requirements that are relevant
to our audit of the financial statement and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Key Audit Matters
The following were also discussed in the report:
 Insurable properties of the Municipality with acquisition cost of P87,108,748.43 and with
a net book value of P68,262,718.34 were not covered with appropriate property
insurance with the Government Service Insurance System, thus leaving the properties at
risk of total loss without the right of indemnification.
 Payments for various procurement totaling P46,405,019.12 were not supported with
proper and complete documentation as the same were inadvertently not attached by the
Bids and Awards Committee Secretariat and overlooked by the Municipal Accountant,
rendering the validity, legality and propriety of the disbursements doubtful.
 Disposal of fully depreciated and unserviceable properties with residual value totaling
P2,109,506.78 was not in accordance with the regulation, rendering the regularity of
such disposal questionable.
 Motor vehicles of the Municipality costing P1,670,900.00 were not supported by

Certificates of Registration with the Land Transportation Office, thus exposing the
subject vehicles to third party claims which could be detrimental to the government in
terms of litigation costs.
STATEMENT OF FINANCIAL POSITION
As at December 31, 2019
(With Comparative Figures for CY 2018)
Note 2019 2018
ASSETS
Current Assets
Cash and Cash Equivalents 4 P 192,843,019.49 P 178,118,269.53
Receivables 5 125,649,206.47 91,095,159.57
Inventories 6 2,947,015.39 1,717,226.50
Prepayments and Deferred Charges 7 21,462,462.49 583.63
Total Current Assets 342,901,703.84 270,931,239.23
Non-Current Assets
Property, Plant and Equipment 8 464,077,072.50 432,098,955.86
Biological Assets 9 296,000.00 296,000.00
Intangible Assets 10 1,779,008.00 1,779,008.00
Total Non-Current Assets 466,152,080.50 434,173,963.86
TOTAL ASSETS 809,053,784.34 705,105,203.09
LIABILITIES
Current Liabilities
Financial Liabilities 11 13,956,801.55 7,700,606.12
Inter-Agency Payables 12 85,410,717.77 52,596,732.05
Intra-Agency Payables 13 9,285,897.50 6,626,463.56
Trust Liabilities 14 22,142,509.94 20,087,921.02
Deferred Credits/Unearned Income 15 116,604,580.96 84,756,892.63
Other Payables 16 21,141,075.04 22,182,505.65
Total Current Liabilities 268,541,582.76 193,951,121.03
Non-Current Liabilities
Financial Liabilities 11 112,236,062.51 121,503,547.66
TOTAL LIABILITIES 380,777,645.27 315,454,668.69
NET ASSETS/EQUITY
Government Equity 428,276,139.07 389,650,534.40
TOTAL LIABILITIES AND NET
ASSETS/EQUITY P 809,053,784.34 P 705,105,203.09
(See accompanying Notes to Financial Statements)
5
STATEMENT OF FINANCIAL PERFORMANCE
For the Year Ended December 31,2019
Notes 2019 2018
Revenue
Tax Revenue 17 P 17,020,255.86 P 14,270,183.89
Share from Internal Revenue
Collections 18 190,822,529.00 173,263,475.00
Service and Business Income 19 13,342,448.97 13,248,528.12
Shares, Grants and Donations 0.00 1,455,801.00
Other Income 20 50,325.00 45,280.41
Total Revenue 221,235,558.83 202,283,268.42
Less: Current Operating Expenses

Personnel Services 21 79,909,381.93 67,651,537.27
Maintenance and Other Operating
Expenses 22 66,156,899.03 54,844,277.14
Financial Expenses 23 4,443,682.65 4,777,701.53
Non-Cash Expenses 24 23,139,801.65 10,879,983.96
Total Current Operating Expenses 173,649,765.26 138,153,499.90
Surplus (Deficit) from Current Operation 47,585,793.57 64,129,768.52
Add:
Gain on Sale of Property, Plant and
Equipment 25 21,807.00 0.00
Less:
Tranfers, Assistance and Subsidy To 26 11,217,960.15 26,456,870.56
Loss on Sale of Property, Plant and
Equipment 27 1,543,063.36 0.00
Surplus (Deficit) for the period P 34,846,577.06 P 37,672,897.96
6
STATEMENT OF CHANGES IN NET ASSETS/EQUITY
For the Year Ended December 31, 2019
Note 2019 2018
Balance at January 1, 2019 P 389,650,534.40 P 315,078,128.63

Add (Deduct)
Change in Accounting Policy 28 13,773,521.73 37,233,248.76
Prior Period Adjustment 29 (9,994,494.12) (333,740.95)
Restated Balance 393,429,562.01 351,977,636.44
Add: Changes in net assets/equity during the
period
Surplus for the period 34,846,577.06 37,672,897.96
Balance at December 31, 2019 P 428,276,139.07 P 389,650,534.40
7
STATEMENT OF CASH FLOWS
Note 2019 2018

Cash Flows from Operating Activities
Cash Inflows
Collection from Taxpayers P 17,020,255.86 P 14,270,183.89
Share from Internal Revenue Allotment 190,822,529.00 173,263,475.00
Interest Income 274,159.63 237,040.32
Other Receipts 30 77,252,534.33 43,317,490.03
Total Cash Inflows 285,369,478.82 231,088,189.24
Cash Outflows
Payments to:
Suppliers and Creditors 56,430,109.37 42,990,715.53
Employees 79,909,381.93 67,651,537.27
Interest Expenses 4,443,682.65 4,777,701.53
Other Disbursements 31 60,473,744.74 65,357,377.45
Total Cash Outflows 201,256,918.69 180,777,331.78
Net Cash Flows from Operating Activities 32 84,112,560.13 50,310,857.46
Cash Flows From Investing Activities
Cash Outflow
Purchase/Construction of Property, Plant
and Equipment 60,120,325.02 45,698,925.97
Net Cash Flows from Investing Activities (60,120,325.02) (45,698,925.97)
Cash Flows from Financing Activities
Cash Outflow
Payment of Loan Amortization 9,267,485.15 7,525,084.89
Net Cash Flows from Financing Activities (9,267,485.15) (7,525,084.89)
Total Cash Provided by Operating,
Investing and Financing Activities 14,724,749.96 (2,913,153.40)
Add : Cash at the Beginning of the year 178,118,269.53 181,031,422.93
Cash Balance at the End of the Year P 192,843,019.49 P 178,118,269.53
8
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
Difference
Original Difference
Budgeted Amounts and Final Final
Budget Actual Budget
Particulars Original Final (Note 34) Amounts Actual
I. General Fund (GF)
Revenue
A. Local Sources
1 Tax Revenue
a. Tax Revenue-Property P 2,600,000.00 P 2,600,000.00 P 0.00 P 1,810,979.72 P 789,020.28
b. Tax Revenue-Goods and Services 9,600,000.00 9,600,000.00 0.00 11,411,360.06 (1,811,360.06)
c. Other Local Taxes 180,000.00 180,000.00 0.00 942,749.48 (762,749.48)
Total Tax Revenue 12,380,000.00 12,380,000.00 0.00 14,165,089.26 (1,785,089.26)
2 Non-Tax Revenue
a. Regulatory Fees, Permits and
Licenses Income 3,027,500.00 3,027,500.00 0.00 5,016,214.85 (1,988,714.85)
b. Service and Business Income 8,055,000.00 8,055,000.00 0.00 8,052,074.49 2,925.51
Total Non-Tax Revenue 11,082,500.00 11,082,500.00 0.00 13,068,289.34 (1,985,789.34)
B. External Sources
1 Share from the National Internal
Revenue Taxes (IRA) 190,760,965.00 190,822,525.00 (61,560.00) 190,822,529.00 (4.00)
2 Other Receipts-Livestock Development Fund 1,000.00 1,000.00 0.00 0.00 1,000.00
3 Inter-Local Transfers-SB Nos.1 & 2 CY-2019 0.00 29,240,650.62 (29,240,650.62) 0.00 29,240,650.62
4 Interest on deposits- LBP 250,000.00 250,000.00 0.00 269,915.32 (19,915.32)
5 Miscellaneous Income 50,000.00 50,000.00 0.00 72,132.00 (22,132.00)
Total External Sources 191,061,965.00 220,364,175.62 (29,302,210.62) 191,164,576.32 29,199,599.30
Total Revenue and Receipts 214,524,465.00 243,826,675.62 (29,302,210.62) 218,397,954.92 25,428,720.70
Expenditures
Current Appropriations
General Public Services
Personnel Services 61,039,188.89 65,647,725.37 (4,608,536.48) 60,604,752.70 5,042,972.67
Maintenance and Other Operating Expenses 53,525,255.83 67,926,425.83 (14,401,170.00) 45,593,185.69 22,333,240.14
Capital Outlay 3,515,000.00 5,255,000.00 (1,740,000.00) 1,716,255.00 3,538,745.00
Health, Nutrition and Population Control
Personnel Services 12,813,011.59 12,813,011.59 0.00 10,645,992.94 2,167,018.65
Maintenance and Other Operating Expenses 5,103,700.00 5,178,700.00 (75,000.00) 3,573,398.14 1,605,301.86
Capital Outlay 200,000.00 200,000.00 0.00 9,925.00 190,075.00
Social Service and Social Welfare
Personnel Services 2,626,627.66 2,626,627.66 0.00 2,508,735.91 117,891.75
Maintenance and Other Operating Expenses 7,612,000.00 9,697,000.00 (2,085,000.00) 8,419,368.70 1,277,631.30
Capital Outlay 136,000.00 136,000.00 0.00 191,050.00 (55,050.00)
Economic Services
Personnel Services 7,084,552.61 7,084,552.61 0.00 6,149,900.38 934,652.23
Maintenance and Other Operating Expenses 4,616,400.00 6,596,400.00 (1,980,000.00) 5,623,757.87 972,642.13
Capital Outlay 140,000.00 140,000.00 0.00 21,500.00 118,500.00
Debt Services
Financial Expenses- MOOE 4,020,000.00 4,590,744.10 (570,744.10) 4,443,682.65 147,061.45
LDRRMF
Maintenance and Other Operating Expenses 6,030,373.25 6,033,451.25 (3,078.00) 6,033,451.25 0.00
Capital Outlay 4,695,850.00 4,695,850.00 0.00 4,695,850.00 0.00
20% Development Fund
Maintenance and Other Operating Expenses 7,901,114.34 9,267,485.15 (1,366,370.81) 9,267,485.15 0.00
Capital Outlay 26,231,078.66 27,343,390.66 (1,112,312.00) 26,024,372.87 1,319,017.79
Allocation for Seniors Citizens and
Person with Disability
Maintenance and Other Operating Expenses 4,395,000.00 5,755,000.00 (1,360,000.00) 5,089,120.00 665,880.00
Other - Statutory Obligation
Statutory Obligation 1,953,609.65 1,953,609.65 0.00 684,494.00 1,269,115.65
Total Current Appropriations 213,638,762.48 242,940,973.87 (29,302,211.39) 201,296,278.25 41,644,695.62
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Continuing Appropriations
Capital Outlay-CYs 2017-2018
General Public Services 15,148,087.12 15,148,087.12 0.00 7,059,098.45 8,088,988.67
Health, Nutrition and Population Control 556,230.00 556,230.00 0.00 0.00 556,230.00
Social Services and Social Welfare 65,000.00 65,000.00 0.00 64,625.00 375.00
20% Development Fund 11,361,397.74 11,361,397.74 0.00 7,874,184.48 3,487,213.26
Total Continuing Appropriations 27,130,714.86 27,130,714.86 0.00 14,997,907.93 12,132,806.93
Total Appropriations-GF 240,769,477.34 270,071,688.73 (29,302,211.39) 216,294,186.18 53,777,502.55
II. Special Education Fund (SEF)
Revenue
A. Local Sources
1 Tax Revenue
a. Tax Revenue-Property 3,720,000.00 3,902,000.00 (182,000.00) 2,855,166.60 1,046,833.40
B. External Sources
1 Interest on deposits- LBP 0.00 0.00 0.00 4,244.31 (4,244.31)
Total Revenue and Receipts 3,720,000.00 3,902,000.00 (182,000.00) 2,859,410.91 1,042,589.09
Expenditures
Current Appropriations
Education
Maintenance and Other Operating Expenses 2,687,750.00 2,869,750.00 (182,000.00) 2,729,924.62 139,825.38
Capital Outlay 1,032,250.00 1,032,250.00 0.00 951,325.00 80,925.00
Total Appropriations-SEF 3,720,000.00 3,902,000.00 (182,000.00) 3,681,249.62 220,750.38
Total Appropriations, GF and SEF P 244,489,477.34 P 273,973,688.73 P (29,484,211.39) P 219,975,435.80 P 53,998,252.93
10
NOTES TO FINANCIAL STATEMENTS
Note 1 - Profile
The Municipality of Catanauan is a first class municipality that lies along the coastal lines of
Bondoc Peninsula in the southern part of Quezon Province. The existence of Catanauan as
a town was first recorded in the map of Father Pedro Murillo, date 1734. However, the
recognized foundation year of the Municipality was in the year 1715.
The Municipality is envisioned to be a model for academic excellence, public health and
safety, environmental preservation and good governance, providing equal opportunity for all
its constituents in peaceful, friendly atmosphere through a God-centered leadership of the
incumbent elected officials.
It is a recipient of the Seal of Good Financial Housekeeping in Calendar Years (CYs) 2011,
2014, 2015, 2016, 2017, 2018 and 2019 and Seal of Good Local Governance (Post
Compliance) in CY 2015, an award given by the Department of the Interior and Local
Government (DILG) for a good performing Municipality.
Note 2 – Basis of Financial Statements Presentation
The combined financial statements of the Municipality of Catanauan have been prepared in
accordance with and comply with the International Public Sector Accounting Standards
(IPSAS). These are presented in pesos, which is the functional and reporting currency of the
Municipality. The accounting policies have been applied starting CY 2015.
Note 3 –Summary of Significant Accounting Policies
3.1 Basis of Accounting
The Municipality uses accrual basis of accounting in accordance with IPSAS.
3.2 Consolidation
The controlled funds are all those over which the Municipality has the power to govern the
financial and operating policies. Inter-group transactions, balances and unrealized gains and
losses on transactions between funds are eliminated in full. The Municipality maintains
special accounts under the General Fund (GF) for the 20 percent Development Fund.
3.3 Interest in Joint Venture
The Municipality has no interest in a joint venture which is a jointly controlled entity, whereby
the venturers have a binding arrangement that establishes joint control over the economic
activities of the entity. The Municipality will recognize its interest in the joint venture using
the proportionate consolidation method. The Municipality will combine its proportionate
share of each of the assets, liabilities, income and expenses of the joint venture with similar
items, line by line, in its consolidated financial statements. The financial statements of the
joint venture are prepared for the same reporting period as that of the controlled entity.
Adjustments are to be made where necessary to bring the accounting policies in line with
those of the Municipality.
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The joint venture is proportionately consolidated until the date on which the Municipality
ceases to have joint control over the joint venture. Upon loss of joint control, and provided
that the former jointly controlled entity does not become a subsidiary or an associate, the
Municipality discontinues proportionate consolidation and recognizes its remaining
investment at the carrying amount.
3.4 Revenue Recognition
Revenue from non-exchange transactions
Taxes, Fees and Fines
The Municipality recognizes revenue from taxes and fines when the event occurs and the
asset recognition criteria are met. To the extent that there is a related condition attached
that would give rise to a liability to repay the amount, liability is recognized instead of
revenue.
Transfers from Other Government Entities
Revenues from non-exchange transactions with other government entities are measured at
fair value and recognized on obtaining control of the asset (cash, goods, services and
property) if the transfer is free from conditions and it is probable that the economic benefits
or service potential related to the asset will flow to the Municipality and can be measured
reliably.
The Municipality availed of the 5-year transitional provision for the recognition of Tax
Revenue-Real Property and Special Education Tax. For the first year, there will be no
change in policy for the recognition of the aforementioned tax revenue.
Revenue from exchange transactions
Rendering of Services
The Municipality recognizes revenue from rendering of services by reference to the stage of
completion when the outcome of the transaction can be estimated reliably. The stage of
completion is measured by reference to labor hours incurred to date as a percentage of total
estimated labor hours.
Where the contract outcome cannot be measured reliably, revenue is recognized only to the
extent that the expenses are incurred.
Sale of Goods
Revenue from the sale of goods is recognized when the significant risks and rewards of
ownership have been transferred to the buyer, usually on delivery of the goods and when
the amount of revenue can be measured reliably and it is probable that the economic
benefits or service potential associated with the transaction will flow to the Municipality.
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Interest Income
Interest income is accrued using the effective yield method. The effective yield discounts
estimated future cash receipts through the expected life of the financial asset to that asset’s
net carrying amount. The method applies this yield to the principal outstanding to determine
interest income each period.
Dividends
Dividends or similar distributions must be recognized when the shareholder’s or the

Municipality’s right to receive payment is established.
Rental Income
Rental income arising from operating leases on investment properties is accounted for on a
straight-line basis over the lease terms and included in revenue.
3.5 Investment Property
Investment properties are measured initially at cost, including transaction costs. The
carrying amount includes the replacement cost of components of an existing investment
property at the time that cost is incurred if the recognition criteria are met and excludes the
costs of day-to-day maintenance of an investment property.
Investment property acquired through a non-exchange transaction is measured at its fair

value at the date of acquisition. Subsequent to initial recognition, investment properties are
measured using the cost model and are depreciated over a 30-year period.
Investment properties are derecognized either when they have been disposed of or when
the investment property is permanently withdrawn from use and no future economic benefit
or service potential is expected from its disposal. The difference between the net disposal
proceeds and the carrying amount of the asset is recognized in the surplus or deficit in the
period of derecognition. Transfers are made to or from investment property only when there
is a change in use.
3.6 Property, Plant and Equipment
All property, plant and equipment are stated at cost less accumulated depreciation. Cost
includes expenditure that is directly attributable to the acquisition of the items. When
significant parts of property, plant and equipment are required to be replaced at intervals,
the Municipality recognizes such parts as individual assets with specific useful lives and
depreciates them accordingly. Likewise, when a major inspection is performed, its cost is
recognized in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognized in
surplus or deficit as incurred. When an asset is acquired in a non-exchange transaction for
nil or nominal consideration the asset is initially measured at its fair value.
Depreciation on assets is charged on a straight-line basis over the useful life of the asset.
Depreciation is charged at rates calculated to allocate cost or valuation of the asset less any
estimated residual value over its remaining useful life.
13
Leased assets may consist of vehicles and machinery. The assets’ residual values and
useful lives are reviewed, and adjusted prospectively, if appropriate, at the end of each
reporting period. An asset’s carrying amount is written down immediately to its recoverable
amount, or recoverable service amount, if the asset’s carrying amount is greater than its
estimated recoverable amount or recoverable service amount. The Municipality
derecognizes items of property, plant and equipment and/or any significant part of an asset
upon disposal or when no future economic benefits or service potential is expected from its
continuing use. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is
included in the surplus or deficit when the asset is derecognized
Public Infrastructures were recognized in the books in compliance with Commission on Audit
(COA) Circular No. 2015-008 dated November 25, 2015.
3.7 Leases
Municipality as a Lessee
Finance leases are leases that transfer substantially all the risks and benefits incidental to
ownership of the leased item to the Municipality. Assets held under a finance lease are
capitalized at the commencement of the lease at the fair value of the leased property or, if
lower, at the present value of the future minimum lease payments. The Municipality also
recognizes the associated lease liability at the inception of the lease. The liability recognized
is measured as the present value of the future minimum lease payments at initial
recognition. Subsequent to initial recognition, lease payments are apportioned between
finance charges and reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are recognized as finance
costs in surplus or deficit.
An asset held under a finance lease is depreciated over the useful life of the asset.
However, if there is no reasonable certainty that the Municipality will obtain ownership of the
asset by the end of the lease term, the asset is depreciated over the shorter of the estimated
useful life of the asset and the lease term.
Operating leases are leases that do not transfer substantially all the risks and benefits
incidental to ownership of the leased item to the Municipality. Operating lease payments are
recognized as an operating expense in surplus or deficit on a straight-line basis over the
lease term.
Municipality as a Lessor
Leases in which the Municipality does not transfer substantially all the risks and benefits of
ownership of an asset are classified as operating leases. Initial direct costs incurred in
negotiating an operating lease are added to the carrying amount of the leased asset and
recognized over the lease term.
Rent received from an operating lease is recognized as income on a straight-line basis over
the lease term. Contingent rents are recognized as revenue in the period in which they are
earned.
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3.8 Intangible Assets
Intangible assets acquired separately are initially recognized at cost. The cost of intangible
assets acquired in a non-exchange transaction is their fair value at the date of the
exchange. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment losses. Internally generated
intangible assets, excluding development cost, are not capitalized and expenditure is
reflected in surplus or deficit in the period in which the expenditure is incurred.
The useful life of the intangible assets is assessed as either finite or indefinite. Intangible
assets with a finite life are amortized on a straight line method over its useful life. Software is
amortized for 10-20 years.
Intangible asset with a finite useful life are assessed for impairment whenever there is an
indication that the asset may be impaired. The amortization period and the amortization
method for an intangible asset with a finite useful life are reviewed at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset are considered to modify the amortization
period or method, as appropriate, and treated as changes in accounting estimates. The
amortization expense on an intangible asset with a finite life is recognized in surplus or
deficit as the expense category that is consistent with the nature of the intangible asset.
Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in the surplus or deficit when the asset is derecognized.
Research and Development Cost
Research costs when incurred are treated as expenses by the Municipality. Development
costs on an individual project are recognized as intangible assets when the Municipality can
demonstrate:
a) The technical feasibility of completing the asset so that the asset will be available for use
or sale;
b) Its intention to complete and its ability to use or sell the asset;
c) How the asset will generate future economic benefits or service potential;
d) The availability of resources to complete the asset; and
e) The ability to measure reliably the expenditure during development.
Following initial recognition of an asset, the asset is carried at cost less any accumulated
amortization and accumulated impairment losses. Amortization of the asset begins when
development is complete and the asset is available for use. It is amortized over the period of
expected future benefit. During the period of development, the asset is tested for impairment
annually with any impairment losses recognized immediately in surplus or deficit.
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3.9 Impairment of Non-Financial Assets
Impairment of Cash-Generating Assets
At each reporting date, the Municipality assesses whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for an
asset is required, the Municipality estimates the asset’s recoverable amount. An assets’
recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs
to sell and its value in use and is determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent of those from other assets or groups
of assets.
Where the carrying amount of an asset or the cash-generating unit (CGU) exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable
amount. In assessing value in use, the estimated future cash flows are discounted to their
present value using a discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. In determining fair value less costs to sell,
recent market transactions are taken into account, if available. If no such transactions can
be identified, an appropriate valuation model is used.
Impairment losses of continuing operations, including impairment on inventories, are

recognized in the statement of financial performance in those expense categories consistent
with the nature of the impaired asset.
For assets, an assessment is made at each reporting date as to whether there is any
indication that previously recognized impairment losses may no longer exist or may have
decreased. If such indication exists, the Municipality estimates the asset’s or cash-
generating unit’s recoverable amount. A previously recognized impairment loss is reversed
only if there has been a change in the assumptions used to determine the asset’s
recoverable amount since the last impairment loss was recognized. The reversal is limited
so that the carrying amount of the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined, net of depreciation, had no
impairment loss been recognized for the asset in prior years. Such reversal is recognized in
surplus or deficit.
Impairment of Non-Cash-Generating Assets
The Municipality assesses at each reporting date whether there is an indication that a non-
cash-generating asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required, the Municipality estimates the asset’s recoverable service
amount. An asset’s recoverable service amount is the higher of the non-cash generating
asset’s fair value less costs to sell and its value in use.
Where the carrying amount of an asset exceeds its recoverable service amount, the asset is
considered impaired and is written down to its recoverable service amount.
In assessing value in use, the Municipality has adopted the depreciation replacement cost
approach. Under this approach, the present value of the remaining service potential of an
asset is determined as the depreciated replacement cost of the asset. The depreciated
replacement cost is measured as the reproduction or replacement cost of the asset,
whichever is lower, less accumulated depreciation calculated on the basis of such cost, to
16
reflect the already consumed or expired service potential of the asset. In determining fair
value less costs to sell, the price of the assets in a binding agreement in an arm's length
transaction, adjusted for incremental costs that would be directly attributed to the disposal of
the asset is used. If there is no binding agreement, but the asset is traded on an active
market, fair value less cost to sell is the asset's market price less cost of disposal. If there is
no binding sale agreement or active market for an asset, the Municipality determines fair
value less cost to sell based on the best available information.
For each asset, an assessment is made at each reporting date as to whether there is any
indication that previously recognized impairment losses may no longer exist or may have
decreased. If such indication exists, management estimates the asset's recoverable service
amount. A previously recognized impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset’s recoverable service amount since
the last impairment loss was recognized. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable service amount, nor exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been
recognized for the asset in prior years. Such reversal is recognized in surplus or deficit.
3.10 Financial Instruments
Financial Assets
Initial Recognition and Measurement
Financial assets are classified as financial assets at fair value through surplus or deficit,
loans and receivables, held-to-maturity investments or available-for-sale financial assets, as
appropriate. The Municipality determines the classification of its financial assets at initial
recognition.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are
recognized on the trade date, i.e., the date that the Municipality commits to purchase or sell
the asset.
The Municipality’s financial assets include: cash and short-term deposits; trade and other
receivables; loans and other receivables and quoted and unquoted financial instruments.
Subsequent Measurement
The subsequent measurement of financial assets depends on their classification.
Financial Assets at Fair Value through Surplus or Deficit
Financial assets at fair value through surplus or deficit include financial assets held for
trading and financial assets designated upon initial recognition at fair value through surplus
and deficit. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term. Financial assets at fair value through
surplus or deficits are carried in the statement of financial position at fair value with changes
in fair value recognized in surplus or deficit.
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Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. After initial measurement, such financial
assets are subsequently measured at amortized cost using the effective interest method,
less impairment. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the effective interest
rate. Losses arising from impairment are recognized in the surplus or deficit.
Held-to-Maturity
Non-derivative financial assets with fixed or determinable payments and fixed maturities are
classified as held to maturity when the Municipality has the positive intention and ability to
hold it to maturity. After initial measurement, held-to-maturity investments are measured at
amortized cost using the effective interest method, less impairment. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the effective interest rate. The losses arising from impairment are
recognized in surplus or deficit
Derecognition
The Municipality derecognizes a financial asset or, where applicable, a part of financial
asset or part or group of similar financial assets when:
a) The rights to receive cash flows from the asset have expired or is waived;
b) The Municipality has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a
third party; and either:
a) the Municipality has transferred substantially all the risks and rewards of the asset; or
b) the Municipality has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.
Impairment of Financial Assets
The Municipality assesses at each reporting date whether there is objective evidence that a
financial asset or a group of financial assets is impaired. A financial asset or a group of
financial assets is deemed to be impaired if, there is objective evidence of impairment as a
result of one or more events that has occurred after the initial recognition of the asset (an
incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows
of the financial asset or the group of financial assets that can be reliably estimated.
Evidence of impairment may include the following indicators:
a) The debtors or a group of debtors are experiencing significant financial difficulty;
b) Default or delinquency in interest or principal payments;
c) The probability that debtors will enter bankruptcy or other financial reorganization; and
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d) Observable data indicates a measurable decrease in estimated future cash flows (e.g.
changes in arrears or economic conditions that correlate with defaults)
Financial Assets Carried at Amortized Cost
For financial assets carried at amortized cost, the Municipality first assesses whether
objective evidence of impairment exists individually for financial assets that are individually
significant, or collectively for financial assets that are not individually significant. If the
Municipality determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively assesses them for
impairment. Assets that are individually assessed for impairment and for which an
impairment loss is, or continued to be, recognized are not included in a collective
assessment of impairment.
If there is an objective evidence that an impairment loss has been incurred, the amount of
the loss is measured as the difference between the assets carrying amount and the present
value of estimated future cash flows (excluding future expected credit losses that have not
yet been incurred). The present value of the estimated future cash flows is discounted at the
financial asset’s original effective interest rate. If a loan has a variable interest rate, the
discount rate for measuring any impairment loss is the current effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account and
the amount of the loss is recognized in surplus or deficit. If, in a subsequent year, the
amount of the estimated impairment loss increases or decreases because of an event
occurring after the impairment was recognized, the previously recognized impairment loss is
increased or reduced by adjusting the allowance account. If a future write-off is later
recovered, the recovery is credited to finance costs in surplus or deficit.
Financial Liabilities
Initial Recognition and Measurement
Financial liabilities within the scope of IPSAS 29 are classified as financial liabilities at fair
value through surplus or deficit or loans and borrowings, as appropriate. The Municipality
determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings, plus directly attributable transaction costs.
The Municipality’s financial liabilities include trade and other payables, bank overdrafts,
loans and borrowings.
Subsequent Measurement
The measurement of financial liabilities depends on their classification.
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Financial Liabilities at Fair Value through Surplus or Deficit
Financial liabilities at fair value through surplus or deficit include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through
surplus or deficit.
Loans and Borrowings
After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortized cost using effective interest method. Gains and losses are recognized in surplus
or deficit when the liabilities are derecognized as well as through the effective interest
method amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the effective interest rate.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires.
When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as a derecognition of the original liability and
the recognition of a new liability.
Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the
consolidated statement of financial position if, there is a currently enforceable legal right to
offset the recognized amount and there is an intention to settle on a net basis, or to realize
the assets and settle the liabilities simultaneously.
Fair Value of Financial Instruments
The fair value of financial instruments that are traded in active markets at each reporting
date is determined by reference to quoted market prices or dealer price quotations (bid price
for long positions and ask price for short positions), without any deduction for transaction
costs.
3.11 Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and cash in bank, deposits on call and
highly liquid investments with an original maturity of three months or less, which are readily
convertible to known amounts of cash and are subject to insignificant risk of changes in
value. For the purpose of the consolidated statement of cash flows, cash and cash
equivalents consist of cash and short-term deposits as defined above, net of outstanding
bank overdrafts.
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3.12 Inventories
Inventory is measured at cost upon initial recognition. To the extent that inventory was
received through non-exchange transactions (for no cost or for a nominal cost), the cost is
its fair value at the date of acquisition.
Costs incurred in bringing each product to its present location and conditions are accounted
for, as follows:
a) Raw materials: purchase cost using the weighted average cost method;
b) Finished goods and work in progress: cost of direct materials and labor and a proportion
of manufacturing overheads based on the normal operating capacity, but excluding
borrowing costs.
After initial recognition, inventory is measured at the lower of cost and net realizable value.
However, to the extent that a class of inventory is distributed or deployed at no charge or for
a nominal charge, that class of inventory is measured at the lower of cost and current
replacement cost.
Net realizable value is the estimated selling price in the ordinary course of operations, less
the estimated costs of completion and the estimated costs necessary to make the sale,
exchange, or distribution. Inventories are recognized as an expense when deployed for
utilization or consumption in the ordinary course of operations of the Municipality.
3.13 Provisions
Provisions are recognized when the Municipality has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits or service potential will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation.
Where the Municipality expects some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is recognized as a separate asset only
when the reimbursement is virtually certain.
The expense relating to any provision is presented in the statement of financial performance
net of any reimbursement.
Rehabilitation Liability
Rehabilitation costs are provided at the present value of expected costs to settle the
obligation using estimated cash flows and are recognized as part of the cost of that
particular asset. The cash flows are discounted at a current rate that reflects the risks
specific to the rehabilitation liability. The unwinding of the discount is expensed as incurred
and recognized in the statement of financial performance as a finance cost. The estimated
future costs of decommissioning are reviewed annually and adjusted as appropriate.
Changes in the estimated future costs or in the discount rate applied are added to or
deducted from the cost of the asset.
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Contingent Liabilities
The Municipality does not recognize a contingent liability, but discloses details of any
contingencies in the notes to the financial statements, unless the possibility of an outflow of
resources embodying economic benefits or service potential is remote.
Contingent Assets
The Municipality does not recognize a contingent asset, but discloses details of a possible
asset whose existence is contingent on the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Municipality in the notes to the
financial statements. Contingent assets are assessed continually to ensure that
developments are appropriately reflected in the financial statements. If it has become
virtually certain that an inflow of economic benefits or service potential will arise and the
asset’s value can be measured reliably, the asset and the related revenue are recognized in
the financial statements of the period in which the change occurs.
3.14 Nature and Purpose of Reserves
The Municipality creates and maintains reserves in terms of specific requirements.
3.15 Changes in Accounting Policies and Estimates
The Municipality recognizes the effects of changes in accounting policy retrospectively. The
effects of changes in accounting policy are applied prospectively if retrospective application
is impractical.
The Municipality recognizes the effects of changes in accounting estimates prospectively by

including in surplus or deficit.
3.16 Foreign Currency Transactions
Transactions in foreign currencies are initially accounted for at the ruling rate of exchange
on the date of the transaction. Trade creditors or debtors denominated in foreign currency
are reported at the statement of financial position reporting date by applying the exchange
rate on that date. Exchange differences arising from the settlement of creditors, or from the
reporting of creditors at rates different from those at which they were initially recorded during
the period, are recognized as income or expenses in the period in which they arise.
3.17 Borrowing Costs
Borrowing costs are capitalized against qualifying assets as part of property, plant and
equipment. Such borrowing costs are capitalized over the period during which the asset is
being acquired or constructed and borrowings have been incurred. Capitalization ceases
when construction of the asset is complete. Further, borrowing costs are charged to the
statement of financial performance.
3.18 Related Parties
The Municipality regards a related party as a person or an entity with the ability to exert
control individually or jointly, or to exercise significant influence over the Municipality, or vice
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versa. Members of key management are regarded as related parties and comprise the
Municipal Mayor, Vice-Mayor, Sanggunian Members, Committee Officials and Members,
Municipal Accountant, Municipal Treasurer, Municipal Budget Officer, General Services
Officer and all Chiefs of Departments/Divisions.
3.19 Service Concession Arrangements
The Municipality analyses all aspects of service concession arrangements that it enters into
in determining the appropriate accounting treatment and disclosure requirements. In
particular, where a private party contributes an asset to the arrangement, the Municipality
recognizes that asset when, and only when, it controls or regulates the services the operator
must provide together with the asset, to whom it must provide them, and at what price. In
the case of assets other than ‘whole-of-life’ assets, it controls, through ownership, beneficial
entitlement or otherwise – any significant residual interest in the asset at the end of the
arrangement. Any assets so recognized are measured at their fair value. To the extent that
an asset has been recognized, the Municipality also recognizes a corresponding liability,
adjusted by a cash consideration paid or received.
3.20 Budget Information
The annual budget is prepared on the modified cash basis, that is, all planned costs and
income are presented in a single statement to determine the needs of the Municipality. As a
result of the adoption of the Modified cash basis for budgeting purposes, there are basis,
timing or entity differences that would require reconciliation between the actual comparable
amounts and the amounts presented as a separate additional financial statement in the
statement of comparison of budget and actual amounts. Explanatory comments are
provided in the notes to the annual financial statements; first, the reasons for overall growth
or decline in the budget are stated, followed by details of overspending or underspending on
line items.
3.21 Significant Judgments and Sources of Estimation Uncertainty
Judgments
In the process of applying the Municipality’s accounting policies, management has made
judgments, which have the most significant effect on the amounts recognized in the
consolidated financial statements.
Operating Lease Commitments – Municipality as Lessor
The Municipality determines based on an evaluation of the terms and conditions of the
arrangements, (such as the lease term not constituting a substantial portion of the economic
life of the commercial property) that it retains all the significant risks and rewards of
ownership of the properties and accounts for the contracts as operating leases.
Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty
at the reporting date, that a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are described below. The
Municipality based its assumptions and estimates on parameters available when the
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consolidated financial statements were prepared. However, existing circumstances and
assumptions about future developments may change due to market changes or
circumstances arising beyond the control of the Municipality. Such changes are reflected in
the assumptions when they occur.
Useful Lives and Residual Values
The useful lives and residual values of assets are assessed using the following indicators to
inform potential future use and value from disposal:
a) The condition of the asset based on the assessment of experts employed by the
Municipality;
b) The nature of the asset, its susceptibility and adaptability to changes in technology and
processes;
c) The nature of the processes in which the asset is deployed; and
d) Changes in the market in relation to the asset.
Impairment of Non-Financial Assets – Cash-Generating Assets
The recoverable amounts of cash-generating units and individual assets have been
determined based on the higher of value-in-use calculations and fair values less costs to
sell. These calculations require the use of estimates and assumptions. It is reasonably
possible that the assumptions may change, which may then impact management’s
estimations and require a material adjustment to the carrying value of tangible assets.
The Municipality reviews and tests the carrying value of assets when events or changes in
circumstances suggest that the carrying amount may not be recoverable. Cash-generating
assets are grouped at the lowest level for which identifiable cash flows are largely
independent of cash flows of other assets and liabilities. If there are indications that
impairment may have occurred, estimates of expected future cash flows are prepared for
each group of assets. Expected future cash flows used to determine the value in use of
tangible assets are inherently uncertain and could materially change over time.
Impairment of Non-Financial Assets – Non- Cash Generating Assets
The Municipality reviews and tests the carrying value of non-cash-generating assets when
events or changes in circumstances suggest that there may be a reduction in the future
service potential that can reasonably be expected to be derived from the asset. Where
indicators of possible impairment are present, the Municipality undertakes impairment tests,
which require the determination of the fair value of the asset and its recoverable service
amount. The estimation of these inputs into the calculation relies on the use of estimates
and assumptions.
Any subsequent changes to the factors supporting these estimates and assumptions may
have an impact on the reported carrying amount of the related asset.
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Fair Value Estimation – Financial Instruments
Where the fair value of financial assets and financial liabilities recorded in the statement of
financial position cannot be derived from active markets, their fair value is determined using
valuation techniques including the discounted cash flow model. The inputs to these models
are taken from observable markets where possible, but where this is not feasible, judgments
are required in establishing fair values. Judgment includes the consideration of inputs such
as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could
affect the reported fair value of financial instruments.
Provisions
Provisions were raised and management determined an estimate based on the information
available. Provisions are measured at the management's best estimate of the expenditure
required to settle the obligation at the reporting date, and are discounted to present value
where the effect is material.
Held-to-Maturity Investments and Loans and Receivables
The Municipality assesses its loans and receivables (including trade receivables) and its
held-to-maturity investments at the end of each reporting period. In determining whether an
impairment loss should be recorded in surplus or deficit, the Municipality evaluates the
indicators present in the market to determine if those indicators are indicative of impairment
in its loans and receivables or held-to-maturity investments.
Where specific impairments have not been identified the impairment for trade receivables,
held-to-maturity investments and loans and receivables is calculated on a portfolio basis,
based on historical loss ratios, adjusted for national and industry-specific economic
conditions and other indicators present at the reporting date that correlate with defaults on
the portfolio. These annual loss ratios are applied to loan balances in the portfolio and
scaled to the estimated loss emergence period.
3.22 Financial Instruments – Financial Risk Management
Exposure to currency, commodity, interest rate, liquidity and credit risks arises in the normal
course of the Municipality’s operations. This note presents information about the
Municipality’s exposure to each of the mentioned risks, policies and processes for
measuring and managing risk, and the Municipality’s management of capital. Further
quantitative disclosures are included throughout these financial statements. Fair values set
out below, are a comparison by class of the carrying amounts and fair value of the
Municipality’s financial instruments.
The fair value of the financial assets and liabilities are included in the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in
a forced sale or liquidation.
The following methods and assumptions were used to estimate the fair values:
a) Cash and short-term deposits, trade receivables, trade payables and other current
liabilities approximate their carrying amounts largely due to the short-term maturities of
these instruments;
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b) Long-term fixed rate and variable-rate receivables/borrowings are evaluated by the
Municipality based on parameters such as interest rates, individual creditworthiness of
the customer and the risk characteristics of the financed projects. Based on this
evaluation, allowances are taken to account for the incurred losses of these receivables
and market related interest rates. As at December 31, 2019, the carrying amounts of
such receivables, net of allowances, are not materially different from their calculated fair
values;
c) Fair value of quoted notes and bonds is based on price quotations at the reporting date.
The fair value of unquoted instruments, loans from banks and other financial liabilities,
obligations under finance leases, as well as other non-current financial liabilities is
estimated by discounting future cash flows using rates currently available for debt on
similar terms, credit risk and remaining maturities;
d) Fair value of financial assets is derived from quoted market prices in active markets, if
available;
e) Fair value of unquoted available-for-sale financial assets is estimated using appropriate

valuation techniques.
Fair Value Hierarchy
The Municipality uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e., as price) or indirectly (i.e., derived from prices);
Level 3: Techniques which use inputs that have a significant effect on the recorded fair
value that are not based on observable market data.
Credit Risk
Credit risk is the risk of financial loss to the Municipality if customers or counterparties to
financial instruments fail to meet their contractual obligations, and it arises principally from
the Municipality’s investments, loans, receivables and cash and cash equivalents. The
carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk as at 31 December was:
2019 2018
Receivables P125,649,206.47 P 91,095,159.57
Cash and Cash Equivalent 192,843,019.49 178,118,269.53
Maximum exposure to credit risk P318,492,225.96 P269,213,429.10
Credit Quality
Credit quality is assessed risk of default attached to counterparties to which the Municipality
extends credit and also those parties with whom the Municipality invests. As such, the credit
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quality assessed extends to the customers, investments and banks servicing the
Municipality.
For financial statement purposes, the investments and balances with banks are limited to
the investments, loans receivable and cash and cash equivalents line items in the statement
of financial position. The Municipality follows Department Order No. 27-05 of the Department
of Finance (DOF) in the maintenance of depository accounts. It also determines credit
quality of the investments and banks using information obtained from external rating
agencies. The Municipality has not yet adopted financial risk management policy.
The customer base of the Municipality is diverse and consists of individuals, companies,
non-profit organizations and government entities. Credit ratings, from external rating
agencies, are not readily available for all customers. Also, it is not financially viable to obtain
external credit ratings for all customers due to the nature of the customer base.
Furthermore, the Municipality, as a local government authority, is mandated under RA No.
7160 or the Local Government Code to provide basic services to all its constituents
irrespective of their financial standing. As such, the Municipality is required, by legislation, to
extend services and extended payment terms to all customers irrespective of their financial
standing. For the purpose of determining the credit quality of customers, the Municipality
applies its past experience with customers in determining the risk of default posed by
customers. In line with the methodology applied, customers are classified into the following
credit quality groups:
a) High- Those customers who have no history of defaulting on payments to the Municipality
and only includes customers who settle their accounts in full and within the prescribed
minimum period;
b) Medium – Those customers with a history of late payments only. These customers
usually arrange ahead of time with the Municipality in settling balances in arrears and
when payments are made, the outstanding amounts (including interest) are settled in full;
and
c) Low – Those customers with a significant history of defaults. The balances of these
customers are rarely settled in full. The recovery of outstanding balances from these
customers is problematic.
Investments
The Municipality limits its exposure to credit risk by investing with only reputable financial
institutions that have a sound credit rating (rated BB and above), which are within the
specific guidelines set in accordance with the Municipal Finance Committee and the
Sanggunian approved investment policy. Consequently, the Municipality does not consider
there to be any significant exposure to credit risk.
Receivables
Receivables are amounts owed by consumers, and are presented net of impairment losses.
The Municipality has a credit risk policy in place, and the exposure to credit risk is monitored
on an ongoing basis. The Municipality is compelled, by its constitutional mandate, to provide
all of its residents with basic minimum services, without recourse to an assessment of
creditworthiness. There were no material changes in the exposure to credit risk and its
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objectives, policies and processes for managing and measuring the risk during the year
under review.
The Municipality’s maximum exposure to credit risk is represented by the carrying value of
each financial asset in the statement of financial position. The Municipality has no significant
concentration of credit risk, with exposure spread over a large number of consumers, and is
not concentrated in any particular sector or geographic area.
The Municipality establishes an allowance for impairment that represents its estimate of
anticipated losses in respect of receivables. The Municipality provided fully for all
receivables outstanding over 365 days where there was no evidence of expected recovery.
Receivables up to 365 days are provided for based on estimated unrecoverable amounts,
determined by reference to past default experience.
Cash and Cash Equivalents
The Municipality limits its exposure to credit risk by investing cash and cash equivalents with
only reputable financial institutions that have a sound credit rating, and within specific
guidelines set in accordance with the Sanggunian’s approved investment policy.
Consequently, the Municipality does not consider here to be any significant exposure to
credit risk.
Liquidity Risk
Liquidity risk is the risk of the Municipality not being able to meet its obligations as they fall
due. The Municipality’s approach to managing liquidity risk is to ensure that sufficient
liquidity is available to meet its liabilities when due, without incurring unacceptable losses or
risking damage to the Municipality’s reputation.
The Municipality ensures that it has sufficient cash on demand to meet expected operating
expenses through the use of cash flow forecasts.
As at December 31, 2019, the following are the contractual liabilities of which interest is
included in borrowings:
> 3-12
Liabilities On Demand months > 1-5 years > 5 years Total
Borrowings P 0.00 P9,267,485.15 P 37,069,940.60 P74,898,636.76 P 121,236,062.51
Payables 13,956,801.55 0.00 0.00 0.00 13,956,801.55
Total
Liabilities P13,956,801.55 P9,267,485.15 P37,069,940.60 P74,898,636.76 P135,192,864.06
Capital Management
The primary objective of managing the Municipality’s capital is to ensure that there is
sufficient cash available to support the Municipality’s funding requirements, including capital
expenditure, to ensure that the Municipality remains financially sound. The Municipality
monitors capital using a gearing ratio which is net debt, divided by total capital, plus net
debt. In a capital intensive industry, a gearing ratio of 54% or less can be considered
reasonable. Included in net debt are interest-bearing loans and borrowings, payables, less
investments.
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Currency Risk
The Municipality is exposed to foreign-currency risk through the importation of goods and
services, either directly or indirectly, through the award of contracts to local importers. The
Municipality manages any material direct exposure to foreign-currency risk by entering into
forward exchange contracts. The Municipality manages its indirect exposure by requiring the
local importer to take out a forward exchange contract at the time of procurement, in order to
predetermine the peso value of the contracted goods or services. The Municipality was not a
direct party to any outstanding forward exchange contracts at the reporting date. The
movement in the currency was not material to the Municipality’s procurement.
Market Risk
Market risk is the risk of changes in market prices, such as foreign-exchange rates and
interest rates, affecting the Municipality’s income or the value of its financial instrument
holdings. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return on the risk.
Note 4 - Cash and Cash Equivalents

2019 2018
Cash on Hand
Cash Local Treasury P 9.80 P 55,015.34
Cash in Bank – Local Currency
Cash in Bank – Local Currency, Current Account 180,885,819.89 166,203,415.83
Cash in Bank – Local Currency, Savings Account 11,957,189.80 11,859,838.36
Total P192,843,019.49 P178,118,269.53
Cash-Local Treasury represents collections during the last working days of the year and
was deposited to the bank on January 02, 2020.
Cash in Bank – Local Currency, Current Account are deposits maintained at Land Bank of
the Philippines (LBP), Catanauan and Mulanay, Quezon Branches.
Cash in Bank – Local Currency, Savings Account pertains to the High Yield Savings
deposits maintained at LBP with a term of 30 days, renewable every month.
Cash in Bank earns interest based on the prevailing bank deposit rates. Short-term deposits
are made for varying periods, depending on the immediate cash requirements of the
Municipality and earn interest at the respective short-term deposit rate.
Note 5 - Receivables
2019 2018
Loans and Receivables Accounts
Real Property Tax Receivable P 53,851,037.48 P40,014,781.83
Special Education Tax Receivable 62,201,785.76 44,190,353.08
Inter-Agency Receivables
Due from National Government Agencies 163,875.95 163,875.95
Due from Local Government Units 3,884.00 3,884.00
Intra-Agency Receivables
Due from Other Funds 9,272,439.59 6,626,463.56
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Other Receivables
Due from Officers and Employees 78,838.69 18,456.15
Other Receivables 77,345.00 77,345.00
Total Receivables P125,649,206.47 P91,095,159.57
Aging of the abovementioned accounts are as follows:
3-12
Receivables On Demand months 1-5 years >5 years Total
Real Property Tax
Receivable P 53,851,037.48 P 0.00 P 0.00 P 0.00 P 53,851,037.48
Special Education
Tax Receivable 62,201,785.76 0.00 0.00 0.00 62,201,785.76
Due from National
Government
Agencies 0.00 0.00 0.00 163,875.95 163,875.95
Due from Local
Government Units 0.00 0.00 0.00 3,884.00 3,884.00
Due from Other
Funds 0.00 9,272,439.59 0.00 0.00 9,272,439.59
Due from Officers
and Employees 0.00 0.00 78,838.69 0.00 78,838.69
Other Receivables 0.00 0.00 0.00 77,345.00 77,345.00
Total P116,052,823.24 P9,272,439.59 P78,838.69 P245,104.95 P125,649,206.47
Real Property Tax Receivable and Special Education Tax Receivable for GF and Special
Education Fund (SEF) represent uncollected Real Property Tax (RPT) and Special
Education Tax (SET) as of December 31, 2019.
Due from Other Funds of P9,272,439.59 pertains to the receivable of one from another fund,
such as:
GF
Unutilized Local Disaster Risk Reduction and Management Fund
(LDRRMF) for CYs 2013 and 2014, for transfer from Trust Fund (TF) P3,090,535.58
Adjustment of error in recording of collection of income
(tractor rental), from TF 6,325.00
Balances of Local Government Unit (LGU) Equity to various completed
projects funded by different National Government Agencies:
Department of Agriculture (DA)- Farm to Market Road (FMR)-
Bottom-up-Budgeting (BUB) 100,093.71
Rehabilitation of Trading Post Building 29,973.70
BUB - Evacuation Center 500,000.00
DILG BUB-Construction of River Dike 66,098.13
DILG BUB-Construction of FMR Magcopa 25,535.56
DILG BUB-Construction of FMR Tagabas Ibaba 3,150.70
DILG BUB-Construction of San Roque 5,088.81
Water pump irrigation project 67,485.00
Sagana at Ligtas na Tubig Para sa Lahat (SALINTUBIG) 2016 250,000.00
Interest earned of LDRRMF, for transfer from TF 12,297.89
Interest earned on various TF accounts deposited at LBP Catanauan 125,514.76
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Balances of LGU equity for maintenance of Agrarian Reform Communities
Development Project (ARCDP) and Trading Post, from TF 25,200.50
TF
Unutilized balance of LDRRMF for CY 2019, for transfer from GF 4,965,140.25
Total P9,272,439.59
Due from Officers and Employees pertains to the collectibles of the Municipality from the
Municipal employees way back 2012 wherein the payments of amortizations for salary loans
availed by the Municipal employees from the Land Bank of the Philippines-Mulanay Branch
were paid in advance by the Municipality.
Other Receivables pertains to the receivables from various beneficiaries of the Kilusang
Kabuhayan at Kaunlaran (KKK) Program during the Marcos Administration.
Note 6 - Inventories
2019 2018
Agricultural Produce for Distribution P 228,595.00 P 228,595.00
Office Supplies Inventory 1,722,458.00 1,011,333.00
Accountable Forms, Plates and Stickers 197,340.39 127,128.50
Drugs and Medicines Inventory 469,492.00 0.00
Other Supplies and Materials Inventory 329,130.00 350,170.00
Total P2,947,015.39 P1,717,226.50
Agricultural Produce for Distribution represents livestock purchased by the Municipality for
distribution.
Office Supplies Inventory represents regular items used in the normal operation of various
offices, while Accountable Forms (AF), Plates and Stickers pertains to official forms
procured from the National Printing Office such as AF No. 51-58, Postage Stamps, AF No.
0016, Form No. 0017 and Cash Tickets.
Drugs and Medicines Inventory represents balance in stock of drugs and medicines in the
Rural Health Unit.
Other Supplies and Materials Inventory represents semi-expendable supplies for use by
various offices.
Note 7- Prepayments and Deferred Charges

2019 2018
Advances to Contractors P21,461,878.86 P 0.00
Other Prepayments 583.63 583.63
Total P21,462,462.49 P583.63
Advances to Contractors represents the 15 percent mobilization fee in connection with the
on-going construction of FMR, a DA-Philippine Rural Development Project (PRDP)-LGU
Funded Project.
31
Note 8 - Property, Plant and Equipment
Acquisition/
Transfer from Adjustment/
2018 TF Disposal 2019
Land P 15,865,356.60 P 0.00 P 0.00 P 15,865,356.60
Other Land
Improvements 30,215,245.77 8,839,891.18 0.00 39,055,136.95
Road Networks 99,606,045.40 37,272,563.21 0.00 136,878,608.61
Flood Control Systems 11,654,559.37 104,406,264.29 0.00 116,060,823.66
Water Supply Systems 3,882,968.63 0.00 0.00 3,882,968.63
Power Supply Systems 1,732,093.66 1,050,950.00 (213,658.50) 2,569,385.16
Other Infrastructure
Assets 214,063.00 246,880.00 0.00 460,943.00
Buildings 54,075,964.42 1,495,460.24 0.00 55,571,424.66
School Buildings 889,271.80 0.00 0.00 889,271.80
Hospitals and Health
Centers 2,038,008.34 0.00 0.00 2,038,008.34
Markets 42,079,153.00 0.00 0.00 42,079,153.00
Slaughterhouses 14,103,456.05 0.00 0.00 14,103,456.05
Other Structures 41,544,799.25 509,795.00 0.00 42,054,594.25
Machinery 1,125,380.00 140,170.00 0.00 1,265,550.00
Office Equipment 4,423,112.77 1,028,555.00 (1,809,356.77) 3,642,311.00
Information and
Communication
Technology
Equipment 12,791,465.75 1,070,902.00 (7,794,346.75) 6,068,021.00
Communication
Equipment 308,678.30 0.00 (154,378.30) 154,300.00
Construction and
Heavy Equipment 28,897,444.20 4,600,000.00 (1,000,900.00) 32,496,544.20
Disaster Response and
Rescue Equipment 3,932,860.00 0.00 0.00 3,932,860.00
Military, Police and
508,619.83
Security Equipment 508,619.83 0.00 0.00
Medical Equipment 585,055.43 0.00 0.00 585,055.43
Sports Equipment 96,000.00 96,000.00 0.00 192,000.00
Technical and
Scientific Equipment 553,264.00 0.00 0.00 553,264.00
Other Machinery and
Equipment 2,830,597.46 99,640.00 (1,771,932.10) 1,158,305.36
Motor Vehicles 7,373,287.10 22,000.00 (824,310.00) 6,570,977.10
Watercrafts 199,310.54 0.00 (150,810.54) 48,500.00
Furniture and Fixtures 5,194,002.22 954,178.00 (2,159,643.25) 3,988,536.97
Books 95,413.00 0.00 (27,923.00) 67,490.00
Construction in
Progress -
Infrastructure Assets 111,249,407.67 21,412,978.56 (113,137,783.12) 19,524,603.11
Work/Zoo Animals 60,000.00 0.00 0.00 60,000.00
Other Property, Plant
and Equipment 2,194,491.73 135,500.00 (529,204.45) 1,800,787.28
Total 500,319,375.29 P183,381,727.48 P(129,574,246.78) 554,126,855.99
Less: Accumulated
Depreciation 68,220,419.43 90,049,783.49
Net Book Value P432,098,955.86 P464,077,072.50
32
 Increase in Other Land Improvements represents construction of additional units of
niches at Municipal Cemetery, partial construction of Sanitary Landfill at Barangay
Dahican, Rehabilitation of Material Recovery Facility at Barangay Dahican, and
Construction of Slaughterhouse Perimeter Fence at Barangay San Antonio Pala.
 Road Networks, Flood Controls, Water Supply Systems, Power Supply Systems and
Other Infrastructure Assets accounts are now recognized in the books of accounts in
compliance with COA Circular No. 2015-008. Included therein are the previously
transferred completed projects to the Registry of Public Infrastructures.
 Increase in Road Networks represents completed Road projects funded by DILG and
LGU as follow:
DILG Fund-LGSF Project

Construction of Local Access Road Along
Barangay Tagbacan Silangan to San Jose Anyao P13,686,241.73
LGU Fund
1. Rehabilitation (Re-blocking of Municipal Road) Barangays 8 and 9 2,997,494.31
2. Re-gravelling 4m width and 200mm thick road at
Barangay Tagabas Ilaya 497,728.10
3. Construction of Retaining wall (Slope Protection) at Barangay
San Pablo Suha 495,588.65
4. Concreting of FMR 5m width and 200mm thick at Barangay
Tagbacan Ibaba 997,345.78
5. Construction of Road Opening at Barangay Sta. Maria Dao 997,573.65
6. Concreting of FMR 5m width and 200mm thick at Barangay
Doongan Ibaba 998,025.33
7. Re-gravelling of FMR Public Market Additional Access Road at
Barangay Madulao 998,388.38
8. Rehabilitation (Re-blocking) of Municipal Road along
Nabatasan Street 518,388.50
9. Concreting of FMR 5m width and 200mm thick at
Barangay Milagrosa 998,081.58
Barangay San Roque 997,389.53
Barangay Canculajao 997,725.07
Barangay Dahican 997,789.46
Barangay Anusan 997,861.25
Barangay Madulao 997,325.39
Barangay Cawayanin Ilaya 997,926.67
Barangay Bulagsong 997,980.67
Barangay San Antonio Magcopa 998,015.91
Barangay Camandiison 997,959.07
33
19. Concreting of FMR (Catanauan Central School) 4m width and
150mm thick at Barangay 08 948,513.40
20. Rehabilitation/Improvement of Lined Canal at Barangays 8 and 9 1,697,763.56
21. Rehabilitation (Re-blocking) of Municipal Road at Barangay 08 1,963,360.76
22. Construction of FMR at Barangay Bolo (Banuyo) 498,096.46
Sub-Total 23,586,321.48
Total P37,272,563.21
 Increase in Flood Control Systems represents the transfer of constructed/completed

asset from TF to GF (Construction of River Dike) and Rehabilitation/Improvement of
Canal at Barangay Poblacion.
 Increase in Power Supply Systems represents the Electrification of Barangay 1,

Installation of Solar Lights along River Dike of Barangays 4 and 10, Installation of Solar
Lights in Public Cemetery and Installation of Solar Lights in San Roque National High
School at Barangay San Roque while decrease is due to the adjustment of auctioned
unserviceable and fully depreciated assets.
 Increase in Other Infrastructure Assets account represents Improvement of Matandang

Sabang Kanluran National High School Stage at Barangay Matandang Sabang Kanluran.
 Increase in Buildings account represents the Improvement of Annex Building of the

Municipality.
 Increase in Other Structures represents Construction of Covered Court Flooring of Ajos

Elementary School at Barangay Ajos and Partial Construction of San Isidro Elementary
School at Barangay San Isidro.
 Increase in Machinery account represents purchase of Submersible Pump for fountain

and water pump for Municipal Building and purchase of Motor Pump including installation
for Slaughterhouse.
 Increases in Office Equipment, Information and Communication Technology Equipment,

Communication Equipment, Technical and Scientific Equipment, Other Machinery
Equipment and Furniture and Fixtures accounts represent purchases of various offices
made during the year while decreases are due to the adjustment of auctioned
unserviceable equipment and fully depreciated assets.
 Increase in Construction and Heavy Equipment represents acquisition of one six wheeler
Dump Truck while decrease is due to the auctioned of unserviceable and fully
depreciated assets.
 Increase in Sports Equipment account represents purchase of Fiber Glass Basketball

Board for Barangays Catumbo and Matandang Sabang Silangan.
 Increase in Motor Vehicles represents purchase of Compressor Assy of Philippine

National Police Patrol Jeep while decrease is due to the adjustment of auctioned
unserviceable and fully depreciated assets.
34
 Decrease in Watercraft account represents adjustment of auctioned unserviceable and
fully depreciated assets.
 Increase in Construction in Progress- Infrastructure Assets represents Installation of

Water Supply System (Public School) and Construction of Local Access Road along
Barangay Tagbacan Silangan to San Jose Anyao.
 Increase in Other Property, Plant and Equipment represents adjustment of error in

recording the Other Machinery and Equipment to Other Property, Plant and Equipment
(Ladder three fold standard, Motor fire pump, Toptek generator and Fire Extension
Ladder) while decrease is due to the adjustment of auctioned unserviceable and fully
depreciated assets.
Note 9 – Biological Assets

2019 2018
Breeding Stocks P296,000.00 P296,000.00
This account represents purchase of large cattle for the implementation of Livestock
Dispersal Project of the Municipal Agriculturist Office.
Note 10 - Intangible Assets

2019 2018
Computer Software P1,779,008.00 P1,779,008.00
This account represents cost of software for RPT Computerization.
Note 11 - Liabilities
Current Liabilities
2019 2018
Accounts Payable P13,056,651.28 P7,512,655.75
Leave Benefits Payable 864,734.00 123,034.10
Due to Officers and Employees 35,416.27 64,916.27
Total P13,956,801.55 P7,700,606.12
Accounts Payable represents cost of goods, services and contract received/entered into but
were not yet paid as of December 31, 2019.
Leave Benefits Payable represents terminal leave benefits of three retiring employees
effective December 31, 2019.
Due to Officers and Employees represents balance of collections from the proceeds of
selling bid documents to be used for honoraria of Bids and Awards Committee (BAC)
members.
35
Loans Payable-Domestic is composed of the following:
Term
Bank
Loan Purpose of Loan 2019 2018
MDFO 15 Construction of Multi-Purpose

Building and Barangay Roads P 23,163,960.72 P 25,312.078.06
MDFO 15 Construction of River Dike 89,072,101.79 96,191,469.60
Total P112,236,062.51 P121,503,547.66
Note 12 - Inter-Agency Payables

2019 2018
Due to BIR P 1,537,701.96 P 1,955,154.50
Due to GSIS 1,913,797.51 1,665,374.83
Due to Pag-IBIG 184,059.74 191,359.03
Due to PhilHealth 104,727.37 91,597.22
Due to NGAs 77,767,041.00 45,720,319.40
Due to LGUs 3,903,390.19 2,972,927.07
Total P85,410,717.77 P52,596,732.05
The first four accounts represent the amount deducted from the salaries of officials and
employees and were remitted to the respective government agencies immediately on the
following month for which these were deducted.
Due to NGAs represents balances of fund received by the Municipality for specific purposes
such as:
Purpose 2019 2018

GF
Various Projects (December 31, 2001) P 0.00 P 502.20
Kilos Asenso Program 0.00 81,650.00
Local Government Support Fund (LGSF) –Construction
of FMR, Barangay Dahican and Tagbacan Ibaba 11,334.77 11,334.77
DILG-Construction of FMR, Barangays Cawayanin
Ibaba and Poblacion 10 18,882.73 18,882.73
Sub-Total 30,217.50 112,369.70
TF
Bureau of the Treasury (BTR)-National Share-Building
Permit and Livestock 77,927.15 77,927.15
BTR-Interest Earned on Bank Deposits 0.00 101,035.46
Philippine Health Insurance Corporation (PHIC)-Primary
Care Benefit 1 (PCB1) Program 2,774,691.81 2,774,691.81
DILG-SALINTUBIG Project 11,987,820.41 11,987,820.41
Department of Social Welfare and Development
(DSWD)-Supplemental Feeding (SFP) 0.00 2,149,587.75
36
PHIC-Mental and Health Care Practices (MHCP) Lying-
In (PhilHealth Member) 2,190,787.67 2,637,682.67
PHIC Prevent Fund (1st Tranche) 425,180.00 425,180.00
Department of Health (DOH)-Municipal Leadership and
Governance Program (MLGP)- Health Program 170,500.00 170,500.00
DOH-Upgrading of Health Facilities 4,773.96 4,773.96
DA-Comprehensive Agrarian Reform Program-CARP
from the Department of Agrarian Reform (DAR) 84,245.77 84,245.77
Philippine Council for Agriculture and Fisheries
(PCAF)/DA-National Livestock for Breeding Station
Projects 500.00 500.00
Department of Public Works and Highways (DPWH)-
Construction of FMR San Jose Anyao 9,991,171.18 9,991,171.18
DA-Purchase of Mechanical Dryer 348,000.00 348,000.00
DA- Milk Production Program 218,791.00 218,791.00
Department of Education - Water System Facilities 649,000.00 649,000.00
BUB-DOH-Construction of Toilet 1,000.00 1,000.00
Bureau of Fisheries and Aquatic Resources (BFAR) –
Construction of Fish Landing Center 0.00 2,278.86
BFAR - Mangrove Rehabilitation 0.00 147.50
Philippine Amusement and Gaming Corporation
(PAGCOR)-Rehabilitation of FMR, Barangay Anusan 1,827.60 1,827.60
DILG – Assistance to Disadvantaged Municipalities
(ADM) Projects 122,985.48 122,985.48
Department of Environment and Natural Resources
(DENR)-Environmental Management Bureau (EMB)-
Financial Assistance for Material Recovery Facility (MRF) 160.00 113,035.00
EMB for Open Dumpsite 115.60 42,567.60
LGSF Projects 13,832.27 13,700,074.00
DSWD Livelihood 2,530,252.00 0.00
Assistance to Municipalities (Concreting of Barangay
Pacabit) 7,244,000.00 0.00
Construction of Barangay Sta. Maria Dao Level II
Potable Water Supply Systems 5,000,000.00 0.00
Construction of Barangay Tagbacan Ibaba Level II
Construction of Barangay Tagabas Ilaya Level II
Construction of Barangay Navitas Level II Potable
Water Supply Systems 5,000,000.00 0.00
National Share-Building Permit (five percent) 2,325.97 2,346.50
National Share-Livestock (five percent) 610.00 760.00
Collection-Excavation (five percent) 460.00 20.00
Sub-Total 58,840,957.87 45,607,949.70
TF-PRDP
PRDP-Loan Proceeds 16,796,325.00 0.00
PRDP-Government of the Philippines 2,099,540.63 0.00
Sub-Total 18,895,865.63 0.00
Total P77,767,041.00 P 45,720,319.40
37
Due to LGUs account includes Barangays’ share from the collection of Community Tax
Certificate (CTC) and RPT and SET for the fourth quarter of CY 2019. It also includes fund
transfer from the Provincial Government of Quezon, as follows:
Grantor/Purpose 2019 2018

GF
Provincial Share from RPT P 259,019.97 P 169,237.44
Barangay Share - RPT 601,461.49 302,212.67
Barangay Share - CTC 106,289.57 44,176.30
Aid to Barangay 46,000.00 46,000.00
Sub-Total 1,012,771.03 561,626.41
SEF
Provincial Share from SET 366,597.46 240,581.71
TF
Provincial Share-Collection from Building Permit and
Livestock Fees 51,012.28 51,012.28
Provincial Government of Quezon-Financial Assistance
(School Competition) 100.00 100.00
Provincial Government of Quezon- Maintenance of
Barangay Road, Barangay Tuhian 0.00 5,200.50
Provincial Government Livelihood Project (out of
P500,000.00) 485,514.64 485,514.64
Provincial Government of Quezon-Governor's Cup 7,400.00 7,400.00
Provincial Government of Quezon-Construction of
Trading Post Provincial, December 31, 2004 0.00 20,000.00
National Assistance for Local Government Unit
(NALGU)- Various Projects-December 31,1994 167,328.52 167,328.52
Provincial Government of Quezon-Livelihood for
Production Inputs for Corn and Mud Crab Fattening 730.00 730.00
Provincial Government of Quezon-Prizes Niyogyugan
2016 (P70,000.00) 919.40 919.40
Philippine Coconut Authority (PCA)-Municipal Share 1,279,579.45 1,084,059.45
Aid to Senior Citizens 2018 40,000.00 40,000.00
Aid to Persons with Disability (PWD) 2018 20,000.00 20,000.00
Prizes-LGU Basketball Tournament 2018 150,000.00 150,000.00
Prizes-Niyogyugan 2018 22,640.00 50,120.00
Aid to Senior Citizens 2019 20,000.00 0.00
Aid to PWD 2019 20,000.00 0.00
Prizes-Niyogyugan 2019 100,000.00 0.00
Collection-Amusement Tax 24,668.50 6,134.50
Collection-Livestock 2,403.00 1,291.00
Collection-Building Permit (15 percent) 85,301.68 52,773.90
Collection-Demolition (15 percent) 814.70 574.70
Collection-Demolition (5 percent) 271.60 191.60
Collection-Occupancy (15 percent) 12,579.40 5,559.40
Collection-Occupancy (5 percent) 4,193.10 1,853.10
Collection-Transfer Tax 20,312.85 17,513.98
Collection-Penalty on Tax Transfer 5,972.58 2,381.98
38
Collection-Professional Tax 900.00 0.00
Collection-Excavation (15 percent) 1,380.00 60.00
Sub-Total 2,524,021.70 2,170,718.95
Total P3,903,390.19 P2,972,927.07
Note 13 - Intra-Agency Payables

2019 2018
Due to Other Funds P9,285,897.50 P6,626,463.56
This account includes amount payable of one to another fund, such as:
GF
Unutilized balance of LDRRMF for CY 2019, for transfer to TF P4,965,140.25
TF
Unutilized LDRRMF for CYs 2013 and 2014, for transfer to GF 3,090,535.58
Adjustment of error in recording of collection of income
(tractor rental), from TF to GF 6,325.00
Balances of LGU Equity to various completed projects funded by different
National Government Agencies:
DA-BUB FMR 100,093.71
BUB - Evacuation Center 500,000.00
Water pump irrigation project 67,485.00
SALINTUBIG 2016 250,000.00
Interest earned of LDRRMF, for transfer to GF 12,297.89
Interest earned of PRDP, for transfer to GF 13,457.91
Interest earned on various TF bank accounts 125,514.76
Balances of LGU equity for maintenance of ARCDP and
Trading Post, to GF 25,200.50
Total P9,285,897.50
Note 14 - Trust Liabilities

2019 2018
Trust Liabilities
Trust Liabilities–Disaster Risk Reduction P20,786,103.84 P18,911,499.17
and Management Fund
Guaranty/Security Deposits Payable 1,356,406.10 1,176,421.85
Total P22,142,509.94 P20,087,921.02
Trust Liabilities-Disaster Risk Reduction and Management Fund represents the unexpended
balances of calamity fund as of December 31, 2019:
Year Particulars Amount

2015 Quick Response Fund (QRF)-30% P 2,106,484.44
2016 QRF-30% 2,073,657.28
2017 Pre-Disaster Preparedness -70% 2,929,523.44
39
2017 QRF-30% 2,084,834.87
2018 QRF-30% 2,883,802.50
2019 QRF-30% 2,785,697.37
Total P20,786,103.84
Guaranty/Security Deposits Payable includes bidders bond, performance bond and retention
money collected from various suppliers and contractors to guaranty the deficiency that may
be incurred after sale/completion of goods/services/projects.
Note 15 - Deferred Credits/Unearned Income

2019 2018
Deferred Real Property Tax P 53,851,037.48 P40,014,781.83
Deferred Special Education Tax 62,201,785.76 44,190,353.08
Other Deferred Credits 551,757.72 551,757.72
Total P116,604,580.96 P84,756,892.63
Note 16 – Other Payables

2019 2018
Other Payables P21,141,075.04 P22,182,505.65
Other Payables represents deductions from officials and employees’ salary for payment of
loan for remittance to various lending agencies such as Beneficial Life, Catanauan
Association of Municipal Employees (CAME), Catanauan Association of Municipal
Employees Cooperative (CAMECO) and United Coconut Planters Bank (UCPB). It also
includes various receipts from different agencies.
Details are as follows:
Purpose 2019 2018

GF
Beneficial Life P 2,250.00 P 2,250.00
CAME-Monthly Dues 29,600.00 14,900.00
CAMECO-unremitted loan 100,412.61 124,968.61
UCPB-unremitted loan 135,546.15 264,744.28
Quedan and Rural Credit Guarantee Corporation
(QUEDANCOR) 1,419.69 1,419.69
Prize from Provincial Gender and Development
Committee (PGADC) 5,000.00 5,000.00
Share in Illegal Fishing 3,625.00 0.00
Refund of disallowed Productivity Enhancement
Incentive (PEI) 1,211,220.00 964,070.00
Refund of disallowed Collective Negotiation Agreement
(CNA) 58,660.00 46,880.00
Share in Traffic Violation 3,487.50 150.00
Error in Posting-LBP loan of employee 88,382.48 0.00
Error in Deposit of Collection (105,967.90) (14,809.64)
Sub-Total 1,533,635.53 1,409,572.94
40
SEF
Other Payables 144,518.83 48,827.94
TF
Photocopy Fees 192,321.74 183,851.74
SALINTUBIG-LGU Counterpart 1,200,000.00 1,200,000.00
Small Town Lottery (STL) 24,695.10 164,200.33
Collection for National Housing Authority 15,981.00 15,981.00
PHIC-Lying-In (Non-Member) of PhilHealth 102,666.27 264,208.27
Share in Violation of Traffic Ordinance 35,603.75 3,660.00
Incentives-UCPB, PHIC, HDMD, etc. 80,577.60 80,577.60
Philippine Charity and Sweepstakes Office (PCSO)
Funds-Medicines 66,333.92 66,333.92
Share in Anti-Illegal Fishing and Dog Penalty
Ordinances 17,850.00 15,350.00
Tractor Rental 0.00 6,325.00
Kalipunan ng Liping Pilipina (KALIPI) Prizes 100.00 100.00
Busog Lusog Talino Program-LGU Counterpart 141,391.50 141,391.50
Prizes due to Clean and Green Program 100,000.00 100,000.00
Prizes due to Southern Luzon State University 50,000.00 50,000.00
DILG Performance Challenge Fund 0.00 0.00
Prizes for Women's Month Celebration 10,500.00 10,500.00
DA-FMR (BUB/GP)-LGU Counterpart 0.00 100,093.71
Rehabilitation of Trading Post Building-LGU
Counterpart 0.00 29,973.70
BUB-Evacuation Center-LGU Counterpart 0.00 500,000.00
DILG-BUB-Construction of River Dike-LGU Counterpart 0.00 66,098.13
DILG-BUB-Construction of FMR Magcopa-LGU
DILG-BUB-Const. of FMR Tagabas Ibaba-LGU
DILG-BUB-Const. of San Roque-LGU Counterpart 0.00 5,088.81
RPT Under Protest 99,786.10 99,786.10
LGU Counterpart-water pump irrigation project. 0.00 67,485.00
Supplemental Feeding Program (SFP)- counterpart
deposit 0.00 100.00
Proceeds for Building Permit Fees 2014 to 2017 28,029.70 28,029.70
SALINTUBIG-LGU Counterpart 2016 0.00 250,000.00
Health Care Institution (HCI) Charges of Rural Health
Unit (RHU) 0.00 9,600.00
Pooling of Professional Fee 0.00 9,600.00
Sub-Total 2,165,836.68 3,497,020.77
TF-PRDP
PRDP-LGU Equity 17,227,084.00 17,227,084.00
PRDP-Loan Proceeds 35,000.00 0.00
PRDP-Government of the Philippines 35,000.00 0.00
Sub-Total 17,297,084.00 17,227,084.00
Total P21,141,075.04 P22,182,505.65
41
Note 17 -Tax Revenue
2019 2018
Tax Revenue-Individual and Corporations
Community Tax P 924,036.79 P 980,867.42
Tax Revenue-Property
Real Property Tax – Basic 1,919,535.83 1,687,569.08
Discount on Real Property Tax – Basic (108,556.11) (84,079.51)
Special Education Tax 2,415,342.16 2,116,986.10
Discount on Special Education Tax (136,227.87) (102,229.45)
Tax Revenue – Goods and Services
Business Tax 10,353,379.27 7,855,865.75
Amusement Tax 133,944.00 233,794.50
Other Taxes 485,260.00 432,000.00
Tax Revenues-Fines and Penalties
Tax Revenue-Fines and Penalties-Property Taxes 1,033,541.79 1,149,410.00
Total P17,020,255.86 P14,270,183.89
Tax Revenue-Fines and Penalties represents the collected current/prior year fines and
penalties from Real Property Tax.
Note 18 - Share from National Taxes

2019 2018
Share Internal Revenue Collection P190,822,529.00 P173,263,475.00
Note 19 -Service and Business Income

2019 2018
Service Income
Permit Fees P 2,439,747.25 P 2,624,201.06
Registration Fees 589,827.00 658,780.00
Clearance and Certification Fees 793,515.00 929,120.00
Inspection Fees 569,416.60 475,218.50
Occupation Fees 324,160.00 323,700.00
Other Service Income 18,984.00 1,000.00
Business Income
Rent Income 263,755.00 334,475.00
Parking Fees 30,184.00 28,815.00
Receipt from Market Operation 3,542,860.69 3,479,500.61
Receipt from Slaughterhouse Operation 2,396,235.00 2,389,407.00
Receipt from Cemetery Operation 1,146,100.00 1,041,200.00
Garbage Fees 269,365.00 257,276.00
Interest Income 274,159.63 237,040.32
Fines and Penalties-Business Income 684,139.80 468,794.63
Total Service and Business Income P13,342,448.97 P13,248,528.12
Note 20– Other Income

2019 2018
Miscellaneous Income P50,325.00 P45,280.41
Miscellaneous Income pertains to collections from individuals and private companies, such
as excavation fee, charges to Barangays for the purchase of accountable forms and
fees/rental for the use of the Municipal’s facilities.
42
Note 21–Personnel Services
2019 2018
Salaries and Wages
Salaries and Wages - Regular P44,435,703.83 P37,511,594.05
Salaries and Wages-Casual/Contractual 1,502,575.33 2,148,993.13
Other Compensation
Personal Economic Relief Allowance (PERA) 3,445,514.58 3,432,860.47
Representation Allowance (RA) 1,924,425.00 1,869,637.50
Transportation Allowance (TA) 1,728,000.00 1,684,687.50
Clothing/Uniform Allowance 870,000.00 864,000.00
Subsistence Allowance 273,175.00 269,500.00
Laundry Allowance 36,905.87 36,363.85
Honoraria 217,750.00 207,000.00
Hazard Pay 1,677,339.37 1,539,497.51
Overtime and Night Pay 878,606.73 726,148.69
Year End Bonus 7,878,646.20 6,669,911.60
Cash Gift 740,000.00 725,000.00
Other Bonuses and Allowance 736,000.00 725,000.00
Personnel Benefit Contribution
Retirement and Life Insurance Premiums 5,484,512.14 4,699,472.69
Pag-IBIG Contributions 171,000.00 167,700.00
PhilHealth Contributions 481,856.37 456,910.95
Employees Compensation Insurance Premiums 173,787.51 170,450.49
Other Personnel Benefit
Terminal Leave Benefits 4,870,427.96 679,991.78
Other Personnel Benefits 2,383,156.04 3,066,817.06
Total P79,909,381.93 P67,651,537.27
Note 22 - Maintenance and Other Operating Expenses

2019 2018
Travelling Expenses
Traveling Expenses - Local P 2,447,951.75 P 1,453,353.00
Training and Scholarship Expenses
Training Expenses 3,299,202.88 2,056,465.32
Supplies and Materials Expenses
Office Supplies Expenses 370,482.75 1,473,615.00
Accountable Forms Expenses 433,888.66 193,105.01
Welfare Goods Expenses 433,093.00 0.00
Food Supplies Expenses 422,789.00 0.00
Drugs and Medicines Expenses 1,039,809.00 674,677.90
Fuel, Oil and Lubricants Expenses 7,431,147.01 5,485,342.09
Agricultural and Marine Supplies Expenses 99,280.00 0.00
Other Supplies and Materials Expenses 1,578,220.50 2,287,220.00
Utility Expenses
Water Expenses 69,090.00 65,170.00
Electricity Expenses 5,125,954.83 4,484,715.98
Communication Expenses
Telephone Expenses 667,472.56 612,214.20
Internet Subscription Expenses 106,903.13 107,523.06
Cable, Satellite, Telegraph and Radio Expenses 1,760.00 0.00
43
Confidential, Intelligence and Extraordinary
Confidential Expenses 1,245,000.00 1,245,000.00
Professional Services
Auditing Services 74,454.00 37,816.00
Consultancy Services 2,173,500.00 0.00
Other Professional Services 576,750.00 581,000.00
General Services
Other General Services 11,608,093.80 9,988,112.28
Repairs and Maintenance
Repairs and Maintenance – Other Infrastructure
AssetsAssets 2,660,171.00 1,940,916.66
Repairs and Maintenance – Buildings and Other
Structu
Structures Structures 727,975.50 557,956.55
Repairs and Maintenance – Machinery and
EquiEquipment
Equipment 830,329.05 898,897.33
RepairsStructures
and Maintenance - Transportation
EquiEquipment
Equipment 1,061,696.72 913,263.08
Taxes, Duties and Licenses
Taxes, Duties and Licenses 65,717.47 61,865.25
Fidelity Bond Premiums 132,542.25 53,717.25
Insurance Expenses 445,360.84 526,049.11
Other Maintenance and Operating Expenses
Printing and Publication Expenses 168,950.00 103,365.00
Transportation and Delivery Expenses 179,807.00 0.00
Membership Dues and Contributions to
Organizations 30,000.00 10,000.00
Donations 13,961,853.00 11,201,930.00
Other Maintenance and Operating Expenses 6,687,653.33 7,830,987.07
Total P66,156,899.03 P54,844,277.14
Note 23 -Financial Expenses

2019 2018
Interest Expenses P4,443,682.65 P4,777,701.53
Interest Expenses represents payment of interest of Municipality’s loans from Municipal

Development Fund Office, Department of Finance.
Note 24 – Non-Cash Expenses

2019 2018
Depreciation-Land Improvements P 1,430,378.59 P 1,330,305.61
Depreciation-Infrastructure Assets 11,729,064.68 1,382,976.22
Depreciation-Buildings and Structures 4,346,462.82 4,078,660.35
Depreciation-Machinery and Equipment 4,827,404.60 3,443,032.49
Depreciation-Transportation Equipment 494,203.39 377,413.68
Depreciation-Furniture , Fixtures and Books 281,792.57 264,132.08
Depreciation-Other Property, Plant and Equipment 30,495.00 3,463.53
Total P23,139,801.65 P10,879,983.96
44
Note 25– Gains on Sale of Property, Plant and Equipment
2019 2018
Gains on Sale of Property, Plant and Equipment P21,807.00 P0.00
Note 26 - Transfers, Assistance and Subsidy To

2019 2018
Subsidy to NGAs P 1,274,136.00 P 0.00
Subsidy to Local Government Units 4,908,683.90 2,603,323.00
Subsidy to Other Funds 0.00 0.00
Transfers of Unutilized Current Year LDRRM Funds to
the Special TF account 4,965,140.25 6,626,463.56
Transfers for Project Equity Share/LGU Counterpart 70,000.00 17,227,084.00
Total P11,217,960.15 P26,456,870.56
Note 27– Loss on Sale of Property, Plant and Equipment

2019 2018
Loss on Sale of Property, Plant and Equipment P1,543,063.36 P0.00
Note 28–Change in Accounting Policy

2019 2018
Transfer of Assets from TF to GF P13,773,521.73 P37,233,248.76
Details are as follows:
Construction of Local Access Road along Barangay Tagbacan Silangan

to San Jose Anyao P13,686,241.73
Laptop and Medical Equipment 87,280.00
Total P13,773,521.73
Note 29 – Prior Period Adjustments
Error in recording of collection of CTC previously recorded on income

account P (332.20)
Adjustment of over recording of depreciation expense- Other PPE (Fire
Extinguisher) in CY 2018 692.72
Adjustment of over recording of depreciation expenses – Office
Equipment (Airconditioner, Carrier 2 sprints) in CY 2018 966.97
Adjustment of error in charging of prior expenses 20,000.00
Adjustment of consumed accountable forms inventory in CY 2018 (47,594.10)
Adjustment of consumed office supplies inventory-Assessor in CY 2018 (169,805.00)
Adjustment of consumed office supplies inventory-various offices in
CY 2018 (1,191,698.00)
Adjustment of stale checks in CY 2018 12,520.00
Adjustment of unexpended balance of Accounts Payable- CY 2019-GF
and 20 percent Development Fund 74,312.22
Transfer of fund balances previously transferred to TF as LGU
Counterpart to Various Projects
DA -FMR (BUB/GP) 100,093.71
45
BUB Evacuation Center 500,000.00
Water Pump Irrigation Project. 67,485.00
SALINTUBIG-LGU Counterpart 2016 250,000.00
Transfer of interest earned on various TF account from previous and
current year 105,566.88
Transfer of LDRRMF balances of CYs 2013 and 2014 3,090,535.58
Transfer of fund balance of LGU Equity to various projects 25,200.50
Adjustment of error in posting of already budgeted amount 82,152.20
Adjustment of error in recording of collection of income (tractor rental) 6,325.00
TF
Adjustment of consumed accountable forms inventory in CY 2018 (1,640.10)
Depreciation expenses of road network in previous year (13,049,122.40)
Total P(9,994,494.12)
Note 30 - Other Receipts
Service and Business Income P13,068,289.34

Gains on Sale of Property and Equipment 21,807.00
Miscellaneous Income 50,325.00
Increase in Accounts Payable 6,000,511.15
Increase in Leave Benefits Payable 741,699.90
Increase in Due to BIR 163,793.74
Increase in Due to GSIS 248,422.68
Increase in Due to PhilHealth 13,130.15
Increase in Due to NGAs 49,361,738.90
Increase in Due to LGUs 930,463.12
Increase in Due to Other Funds 4,320,757.25
Increase in Trust Liabilities – DRRM 1,874,604.67
Increase in Guaranty/Security Deposits Payable 237,237.95
Increase in Other Payables 219,753.48
Total P77,252,534.33
Note 31 – Other Disbursements
Increase in Due from Other Fund P 2,645,976.03

Increase in Advances to Contractors 21,461,878.86
Increase in Due from Officers and Employees 60,382.54
Increase in Office Supplies Inventory 711,125.00
Increase in Accountable Forms Inventory 70,211.89
Increase in Drugs and Medicines Inventory 469,492.00
Decrease in Other Supplies Inventory (21,040.00)
Subsidy to National Government Agencies 1,274,136.00
Transfers of Unspent Current Year LDRRM Funds to TF 4,965,140.25
Transfers for Project Equity Share/LGU Counterpart 70,000.00
46
Taxes, Duties and Licenses 65,717.47
Fidelity Bond Premiums 132,542.25
Insurance Expenses 445,360.84
Membership Dues and Contributions to Organizations 30,000.00
Donations 13,961,853.00
Increase in Accounts Payable 456,515.62
Decrease in Due to Officers and Employees 29,500.00
Decrease in Due to BIR 581,246.28
Decrease in Due to PAG-IBIG 7,299.29
Decrease in Due to NGAs 82,152.20
Decrease in Due to Other Funds 1,661,323.31
Decrease in Guaranty/Security Deposits Payable 57,253.70
Decrease in Other Payables 1,261,184.09
Decrease in Prior Period Adjustment-GF 9,994,494.12
Total P60,473,744.74
Note 32 – Reconciliation of Net Cash Flows from Operating Activities to Surplus

(Deficit)
Surplus (Deficit) P34,846,577.06

Non-cash transactions
Depreciation 23,139,801.65
Increase in Payables 59,975,638.50
Loss on Sale of PPE 1,543,063.36
Decrease in Current Assets (1,229,788.89)
Decrease in Receivables (24,168,237.43)
Prior Period Adjustments (9,994,494.12)
Total P84,112,560.13
Note 33– Disclosures on Presentation of Budget Information
The budget of the Municipality is based on modified accrual basis and adopted a by
fund/functional classification basis in its preparation. The approved Annual Budget is for the
Fiscal Year (FY) 2019 under Appropriation Ordinance No. 2019-77 series of 2019 enacted
on January 14, 2019. There were two Supplemental Budgets, under Appropriation
Ordinances No. 2019-78 and Appropriation Ordinance No. 2019-79, all series of 2019,
dated June 18, 2019 and October 21, 2019, respectively.
The entities included in the approved budget are: a) All Local Government Offices of the
Municipality; b) National Government Agencies assigned within the Municipality under the
lump sum appropriation; c) Civil Society Organizations.
The Municipality of Catanauan has a Certified Statement of Receipts of P213,638,762.48

(GF) – P175,486,569.48 and (Special Accounts – 20 percent Development Fund) -
P38,152,193.00
47
Increase in total Business Tax Collection and other taxes was the result of a variety of
factors, such as:
 concerted efforts from the various members of the Revenue Resource Enhancement
Team (RRET) wherein renewed focus was brought to the various aspects of the
Municipality’s collection procedures; and
 adoption of presumptive income levels of businesses as well as RPT discoveries of

undeclared assets.
Note 34- Disclosures between the Original and Final Budget
Changes between the original and final budget can be attributed to supplemental
appropriations for various programs, projects and activities (PPAs) not fully funded in the
Annual Budget and included in the Annual Investment Program (AIP) and reversion of funds
through an appropriation ordinance wherein the intention of the original purpose for which
the fund was allocated is no longer needed in connection with the funded PPAs.
Note 35- Reconciliation between Actual Amounts on a Comparable Basis as

presented in the Statement of Comparison of Budget and Actual Amounts
and in the Statement of Financial Performance for the Year Ended
December 31, 2019
Personnel Financial
Income Services MOOE Expenses Capital Outlay
GF
Comparison
Statement of
Budget and P218,397,954.92 P79,909,381.93 P84,284,260.80 P4,443,682.65 P47,656,860.80
Actual
Entity Differences
Basis Differences: 0.00 0.00 (9,267,485.15) 0.00 (47,656,860.80)
Budgetary Items
not considered
as Expenses:
Debt Service
(Loan
Amortization) 0.00 0.00 (9,267,485.15) 0.00 0.00
Capital
Expenditures 0.00 0.00 0.00 0.00 (47,656,860.80)
Timing 0.00 0.00 (371,841.09) 0.00 0.00
Differences:
Prepayments
charged to
current
appropriations 0.00 0.00 2,173,500.00 0.00 0.00
Unconsumed
Inventories
charged to
current
appropriations 0.00 0.00 (2,545,341.09) 0.00 0.00
Per Statement of
Financial
Performance-GF 218,397,954.92 79,909,381.93 74,644,934.56 4,443,682.65 0.00
48
SEF
Comparison
Statement of
Budget and 2,859,410.91 0.00 2,729,924.62 0.00 951,325.00
Actual
Entity Differences
Basis Differences: 0.00 0.00 0.00 0.00 (951,325.00)
Budgetary Items
not considered
as Expenses:
Capital
Expenditures 0.00 0.00 0.00 0.00 (951,325.00)
Per Statement of
Financial
Performance-SEF 2,859,410.91 0.00 2,729,924.62 0.00 0.00
Total GF and SEF P221,257,365.83 P79,909,381.93 P77,374,859.18 P4,443,682.65 P0.00
49
AUDIT OBSERVATIONS AND RECOMMENDATIONS
A. Financial and Compliance Audit
1. The balances of Real Property Tax (RPT) and Special Education Tax (SET)
Receivables accounts totaling P116,052,823.24 are unreliable because: a) its year-
end balances are not equal; b) RPT and SET Receivables set up for Calendar Year
(CY) 2019 were P16,700,708.11 and P20,875,885.14, respectively, hence unequal
and the same have no supporting list of taxpayers from whom such will be
collected; c) the Schedule of Real Property Tax Delinquencies submitted by the
Municipal Treasurer’s Office (MTO) showing an uncollected total amount of
P50,722,854.08 includes the collectibles for CY 2001 and below; and d) credits to
the said accounts pertain to CY 2019 taxes only, contrary to Section 111 of
Presidential Decree (PD) No. 1445. Moreover, the statutory remedies provided in
Sections 256, 258 and 260 of Republic Act (RA) No. 7160 in order to collect the
delinquent taxes have not been fully enforced.
Section 111 of PD No. 1445 provides that:
“(1) The accounts of an agency shall be kept in such detail as is necessary to meet the
needs of the agency and at the same time be adequate to furnish the information
needed by fiscal or control agencies of the government.
(2) The highest standards of honesty, objectivity and consistency shall be observed in
the keeping of accounts to safeguard against inaccurate or misleading information.”
Sections 256, 258 and 260 of RA No. 7160 provides for the remedies for the collection of
RPT as follows:
 The local government unit concerned may avail of the remedies by administrative
action thru levy on real property or by judicial action.
 The real property subject to tax maybe levied upon through issuance of a warrant
with the institution of a civil action for the collection of the delinquent tax.
 Within thirty (30) days after service of the warrant of levy, the local treasurer shall
proceed to publicly advertise for sale or auction the property or a usable portion
thereof as may be necessary to satisfy the tax delinquency and expenses of sale.
Review of CY 2019 year-end financial statements showed the balances of RPT and SET
Receivables of P53,851,037.48 and P62,201,785.46, respectively for a total of
P116,052,823.24. However, the amount cannot be relied upon due to the following noted
deficiencies:
a) The year end balances are not equal;
b) Set up for RPT and SET Receivables at the beginning of CY 2019 of P16,700,708.11
and P20,875,885.14, respectively, were not also equal and not supported with the list
of taxpayers from whom such will be collected;
50
c) The Schedule of Real Property Tax Delinquencies submitted by the MTO showing an
uncollected amount of P25,361,427.04 each for RPT and SET for a total of
P50,722,854.08 (Appendix 5) includes the collectibles for CY 2001 and below while
the set up receivables cover the period from CYs 2002 to 2019, hence dissimilar;
and
d) Only the taxes for CY 2019 were recorded/credited to the said receivable accounts
instead of all collections pertaining to CYs 2002 to 2019.
The above noted deficiencies are contrary to Section 111 of PD No. 1445.
The Municipal Treasurer (MT) explained that the set up amounts pertain only to the
Municipality’s share of 40 percent from basic property tax or RPT and 50 percent from
additional one percent or SET. To validate this statement, the Audit Team computed the
100 percent of the set up amounts for RPT and SET and proved that they are equal.
However, upon further verification, it was disclosed that said 100 percent is not equal to
the one percent of the total assessed value of all taxable properties in the Municipality.
The MT further explained that he used the total delinquent taxes plus penalties as of
December 31, 2018 as basis for the set up.
As for the recording of collections, the Municipal Accountant commented that she was
not able to check all journal entries especially the recording of collections, however she
committed to make the necessary adjustments.
Moreover, during validation of the status of implementation of prior year’s audit

recommendation regarding the adoption of the statutory remedies provided in RA No.
7160 to enforce collection of delinquent real property taxes, the MT stated that there
were properties that were subjected for auction but these were not pushed through
because the owners paid their delinquent taxes. Despite of this action, a huge amount
of real property taxes is still not collected which indicates that the afore-stated
regulations have not been fully enforced. Per Summary of Real Property Tax
Delinquencies as of December 31, 2019 submitted by the MT, the accumulated
collectibles for RPT and SET and its corresponding penalties totaled to P50,722,854.08
and P33,357,308.20, respectively.
The MT commented that the uncollected amount had increased because of the General
Revision in CY 2019. He also stated that the cleansing of records due to the noted
duplication of records, properties covered by Comprehensive Agrarian Reform Program
and properties with civil cases, is still on-going.
Due to non-collection of delinquent taxes, the Municipality was hindered to implement

other projects that will benefit its constituents.
This observation has been noted since year 2014.
a. MT to prepare a list of individual taxpayers with delinquencies for CY 2001 and

below and another list for CYs 2002 to 2019 as of December 31, 2019 and
furnish it to the Municipal Accountant;
51
b. Municipal Accountant to facilitate the adjustment of RPT/SET Receivables
once the lists of delinquent taxpayers for CYs 2001 and below and CYs 2002 to
2019 are received from the MT to reflect the correct balance of these receivable
accounts;
c. Municipal Accountant to ensure that all collections are properly recorded;
d. Municipal Assessor to facilitate the immediate cleansing of property tax

records to have a reliable Real Property Tax Assessment Roll and thereafter, a
reliable RPT and SET Receivables accounts; and
e. MT to continue the enforcement of the remedies as provided in RA No. 7160.
Management’s Comment:
In his letter dated July 20, 2020, the Municipal Mayor stated that the MT confirmed that
the set-up RPT and SET Receivables for CY 2019 pertain only to the Municipality’s
share of 40 percent and 50 percent for RPT and SET, respectively, computed using the
total delinquencies as of December 31, 2018; and that the Schedule of Real Property
Tax Delinquencies was computed cumulatively from CYs 1974 to 2019. With these
observations, the MT committed himself to take necessary actions to rectify such
deficiencies in accordance with the established rules and regulations.
The Municipal Mayor also stated that he already instructed the MT, Municipal
Accountant and Municipal Assessor to comply with the recommendations concerning
their respective offices.
As regards the enforcement of statutory remedies in collecting the delinquent taxes, the
Municipal Mayor stated that the MT reported that in CY 2019, the names of 100 RPT
delinquent taxpayers with a total amount of P2,916,786.45 were published in local
newspapers and eventually in mainstream newspapers of general circulation through the
Office of the Provincial Treasurer. This resulted in the increase of collections of
delinquent RPT amounting to P845,580.25. He further stated he already instructed the
MT to continue the enforcement of the remedies as provided in RA No. 7160.
2. The Report on the Physical Count of Property, Plant and Equipment (RPCPPE)
and Report on the Physical Count of the Road Network System were not
submitted; property, plant and equipment (PPE) totaling P36,495,919.74 were not
individually identified and not provided with depreciation; PPE ledger cards
(PPELC) and property cards were incomplete; and Property Acknowledgement
Receipt (PAR) were incomplete and not renewed every three years, contrary to
Sections 114 and 124 of the Manual on the New Government Accounting System
(MNGAS) for Local Government Units (LGUs), Volume I, Commission on Audit
(COA) Circular No. 2015-008, COA Circular No. 92-386 and the pertinent provisions
of International Public Sector Accounting Standards (IPSAS) 17, “Property, Plant
and Equipment” and its Philippine Application Guidance (PAG), due to incomplete
conduct of physical inventory and unavailability of relevant records/documents,
thus the valuation and existence of PPE recorded in the books totaling
P518,736,896.28 is unreliable.
52
The pertinent provisions of the MNGAS for LGUs, Volume I, for the accounting of
property provide:
Section 114. Perpetual Inventory Method. xxx. The Chief Accountant shall maintain the
perpetual inventory records comprising … of Property, Plant and Equipment Ledger
Card (PPELC) for each category of property, plant and equipment xxx. Such ledger
cards shall contain the details of the property, plant and equipment … in the inventory
control account in the general ledger.
The General Services Officer or the Municipal Treasurer, as the case maybe, shall
likewise maintain … property cards for … property, plant and equipment … to account
for the receipt and disposition of the same. The balance per … property cards should
always reconcile with the ledger cards of the accounting unit. They should also
reconcile with other property records like Acknowledgement Receipt for Equipment
(ARE).”
Section 124. Inventory of Supplies or Property. The local chief executive shall require
periodic physical inventory of supplies or property. xxx.
Physical count of property, plant and equipment by type shall be made annually and
reported on the Report on the Physical Count of Property, Plant and Equipment
(RPCPPE). This shall be submitted to the Auditor concerned not later than January 31 of
each year.
COA Circular No. 2015-008 dated November 25, 2015, requires the Inventory
Committee to prepare the Report on the Physical Count of the Road Network System
(RPCRNS) of the local government unit.
COA Circular No. 92-386 dated October 20, 1992 which provides the Rules and
Regulations on Supply and Property Management in the Local Government, states that
“issuances of property to end-user shall be covered by a Memorandum Receipt (MR)
which shall be renewed at least every three years xxx”.
Paragraph 71 of IPSAS 17 and its PAG provide that:
Initial Recognition of Depreciation
Depreciation of an asset begins when it is available for use such as when it is in the
location and condition necessary for it to be capable of operating in the manner intended
by management.
For simplicity and to avoid proportionate computation, depreciation shall be for one
month if the PPE is available for use on or before the 15th of the month. However, if the
PPE is available for use after the 15 th of the month, depreciation shall be for the
succeeding month.
Review of the year-end Financial Statements (FS) for CY 2019 showed that the
depreciable PPE under the General Fund (GF) and Special Education Fund (SEF)
totaled to P511,280,965.45 and P7,455,930.83, however the correctness of these
balances was not validated due to the non-submission of RPCPPE and RPCRNS as of
December 31, 2019.
53
Also, review of the Schedule of Depreciation and Accumulated Depreciation as of
December 31, 2019 and interview with the Municipal Accountant disclosed the following:
a. No such Schedule for SEF, hence the composition of the recorded depreciable PPE
of P7,455,930.83 and the correctness of its accumulated depreciation totaling
P682,363.74 was not determined;
b. The following PPE under GF totaling P36,495,919.74 were not individually identified
in the said Schedule and the same have no depreciation:
Other Land Improvements P 12,435,427.77

Power Supply Systems 133,886.88
Buildings 246,767.90
Hospitals and Health Centers 372,209.40
Other Structures 21,742,465.21
Information and Communication Technology Equipment 9,425.00
Construction and Heavy Equipment 141,544.20
Other Machinery and Equipment 3,622.60
Motor Vehicles 58,900.00
Other Property, Plant and Equipment 1,351,670.78
Total P 36,495,919.74
c. Acquisitions/deliveries during December 1-15, 2019 totaling P5,203,168.00, though

included in the said Schedule, were not provided with depreciation, as follows:
Furniture and Fixtures

12/5/2019 026825 P 9,925.00
12/5/2019 026825 30,000.00
12/5/2019 026825 30,000.00
12/5/2019 026825 37,645.00
12/5/2019 026825 47,965.00
12/5/2019 026825 236,350.00
12/11/2019 026896 24,093.00
415,978.00
Information and Communication
Technology Equipment
12/5/2019 026825 19,970.00
12/5/2019 026825 43,445.00
12/5/2019 026825 47,930.00
12/5/2019 026825 58,850.00
170,195.00
Office Equipment
12/5/2019 026825 16,995.00
Construction and Heavy Equipment
12/13/2019 026963 4,600,000.00
Total P 5,203,168.00
54
d. Maintained PPELC, property cards and Property Acknowledgement Receipt (PAR),
previously called MR and then ARE, were incomplete; and
e. PARs issued three years ago were not renewed;
According to the Municipal Accountant, the conduct of physical inventory was not
completed due to unavailability of relevant documents. As regards the maintained
PPELC, the same were only up to CY 2018. She further stated that she requires the
PAR to be attached to the Disbursement Vouchers for acquisition of PPE before
payment.
The aforementioned deficiencies have affected the reliability of PPE accounts.
We reiterated our recommendation that the Municipal Mayor require the:
a. Inventory Committee to complete the physical inventory of all property of the

Municipality and prepare and submit immediately the pertinent inventory
reports;
b. Municipal General Services Officer (MGSO) to prepare and maintain complete

and updated property cards; and
c. MGSO and Municipal Accountant to reconcile their records.
We also recommended that the Municipal Mayor require the:
a. MGSO to submit to the Audit Team the copy of PAR corresponding the
purchases of PPE during CY 2019 for review;
b. MGSO to maintain complete copy of PAR and renew it every three years;
c. Municipal Accountant to prepare and submit the Schedule of Depreciation and

Accumulated Depreciation for SEF;
d. Municipal Accountant to maintain complete and updated PPELC;
e. Municipal Accountant to identify the composition of the recorded PPE under

GF totaling P36,495,919.74; and
f. Municipal Accountant to strictly observe the regulation on depreciation.
We further recommended that the Municipal Mayor constantly monitor the status
of physical inventory taking to ensure its completion and submission of complete
inventory reports within the deadline.
In his letter dated July 16, 2020, the Municipal Mayor stated that in compliance with the
recommendation, the Schedule of Depreciation and Accumulated Depreciation for SEF
and complete copy of PAR corresponding the purchases of PPE during CY 2019 were
submitted to the Audit Team on July 15, 2020 (via email) and July 16, 2020,
55
respectively. Also, according to the Municipal Accountant, acquisitions/deliveries during
December 1 to 15, 2019 have been provided with depreciation starting January 31,
2020.
The Municipal Mayor explained that the PPE under GF totaling P36,495,919.74 includes
unserviceable PPE of P213,491.80 which were not included in the Inventory and
Inspection Report for Unserviceable Property (IIRUP) submitted by the MGSO to the
Audit Team. Also, according to the Municipal Accountant, the remaining amount of
P36,282,427.94 has been in the General Ledger of the Municipality as beginning
balances since she assumed office in CY 1995.
With regard to the non-maintenance of complete property cards, the Municipal Mayor
explained that this can be attributed to the retirement of the former MGSO last
December 2019. Also, according to the current MGSO, who assumed office in February
2020, no documents or reports relative to this issue were turned over to her. The
occurrence of Covid19 pandemic also hindered the timely accomplishment of property
cards. Nevertheless, the MGSO has committed to expedite the completion of
maintaining property cards.
The Municipal Mayor further stated that he already directed the Inventory Committee to
complete the physical inventory of all property of the Municipality and to prepare and
submit immediately the pertinent inventory reports. The MGSO and Municipal
Accountant were likewise instructed to reconcile the property records and to maintain a
complete copy of PAR and renew the same every three years.
Finally, the Municipal Mayor committed that he will constantly monitor the status of
physical inventory taking to ensure its completion and submission of complete inventory
reports within the deadline.
3. Fourteen parcels of donated land which are titled in the name of the Municipality
were not recorded in the books due to the absence of fair market values and copy
of titles, contrary to Section 112 of Presidential Decree (PD) No. 1445, Paragraphs
26 and 27 of International Public Sector Accounting Standards (IPSAS) 17 -
Property, Plant and Equipment, thus understating the Land account by
undetermined amount. Moreover, eight parcels remain untitled of which four have
no valid supporting documents to support the titling, contrary to Section 39(2) of
the same PD and Section 148 of Commission on Audit (COA) Circular No. 92-386,
thus exposing the subject lots to third party claims which could be detrimental to
the government in terms of litigation costs.
Section 112 of PD No. 1445 provides that; “Each government Agency shall record its
financial transactions and operations conformably with generally accepted accounting
principles and in accordance with pertinent laws and regulations.”
Paragraph 26 of IPSAS 17 – Property, Plant and Equipment provides that “an item of
property, plant and equipment that qualifies for recognition as an asset shall be
measured at its cost”. Paragraph 27 of the same Standard further provides that “where
an asset is acquired through a non-exchange transaction, its cost shall be measured at
its fair value as at the date of acquisition.
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Section 39(2) of PD No. 1445 states that, “In the case of deeds to property purchased by
any government agency, the Commission shall require a certificate of title entered in
favor of the government or other evidence satisfactory to it that the title is in the
government.”
Section 148 of COA Circular No. 92-386 dated October 20, 1992 vests upon every local
chief executive the immediate responsibility for the proper and effective use and
management of real estate owned or titled in the name of the local government unit. He
should ensure that all real estate under his responsibility are registered under the
Torrens Title System and safeguarded from squatters, unlawful occupants or the like.
In Calendar Year (CY) 2018, various untitled, undocumented and unrecorded parcels of
land were noted. The Municipal Mayor commented that instructions were already made
to the Municipal Assessor and MT to comply with the recommendations.
During CY 2019, the following parcels were noted as already transferred/donated by the
Municipality, to wit:
Title Number/ Area

Tax Declaration Location Transferred/Donated to (sq.m)
T-462311 Barangay 2 Bureau of Jail Management and Penology 211
T-181 Barangay 2 Philippine National Police 437
T-519821 SLSU Barangay Madulao 15,000
08-0005-00248 Barangay 5 Bureau of Fire Protection 163
However, during review of Land account and its corresponding schedule, the following
deficiencies were still noted:
 19 parcels of donated land are unrecorded in the books;
 10 of the said unrecorded land are with copy of title in the name of the Municipality
but three of which were not registered in the Office of the Municipal Assessor, hence
no tax declaration;
 Four of the unrecorded lots with total assessed value of P269,410.00 are allegedly
titled in the name of the Municipality but it has no available copy of title;
 The remaining five unrecorded parcels of land are untitled, however per schedule
submitted by the Municipal Assessor, three of which with total assessed value of
P421,210.00 have title but the Municipality has no available copy; and
 Three of the recorded parcels of land are not titled to the Municipality while two are
titled but the Municipality has no copy of title.
Details are presented in Appendix 6.
Non-recording of land owned by the Municipality understates the Land account by

undetermined amount while the parcels of land not titled in the name of the Municipality
are exposed to third party claims which could be detrimental to the government in terms
of litigation costs.
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According to the MT, proper turnover of the documents pertaining to the land owned by
the Municipality was not made by the former MT. He added that confirmation and copy
of titles were not made/secured from the Registry of Deeds (RD) due to time constraint,
however he committed to coordinate with the Municipal Assessor.
During the interview with the Municipal Accountant, it was learned that those donated
parcels were not recorded due to absence of fair market values.
We reiterated our recommendation that the Municipal Mayor Instruct the Municipal
Assessor and the MT to:
 facilitate the titling of eight parcels of land owned by the Municipality; and
 exert effort to locate and secure the documents that will support the ownership
of all the lots owned by the Municipality;
We also recommended that the Municipal Mayor:
 require the Appraisal Committee/Team to properly appraise the donated land

as to the fair values at the time of acquisition and apply the same to the
purchased land if the acquisition costs cannot be determined reliably;
 instruct the Municipal Assessor and MT to request the owner’s copy of title for
the six parcels of land from the RD; and
 require the Municipal Accountant to record the land once the fair values are
established and copy of titles are received.
The Municipal Mayor stated in his letter dated July 27, 2020 that the titling of the subject
lots has been a dilemma of the concerned officials of the Municipality due to the absence
of necessary documents. According to the MT, most documents relative to these
properties were not properly turned over to him by the former MT. It was only through
his personal initiative to have an inventory of all the available documents in his office.
He further stated that the MT, Municipal Assessor and Municipal Accountant were
already directed to comply with the recommendations. Likewise, a memorandum will be
sent to the members of the Appraisal Committee of the Municipality reiterating the need
to take actions necessary to determine the Fair Market Value of these properties.
4. Guaranty/Security Deposits Payable totaling P516,044.21 which have been

outstanding for two years or more were still not reverted to the Unappropriated
Surplus of the General Fund (GF), contrary to Section 98 of Presidential Decree
(PD) No. 1445, thus existence and correctness of the balance of the account
cannot be relied upon.
Generally, liabilities are recorded in the books of accounts of local government units to
recognize obligations/indebtedness to contractors/suppliers arising from the purchase of
goods and services, and also those held under escrow by the government agencies and
other obligations in connection with the agency’s operations.
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“Reversion of unliquidated balances of accounts payable. - The Commission upon notice

to the head of agency concerned may revert to the unappropriated surplus of the general
fund of the national government, any unliquidated balance of accounts payable in the
books of the national government, which has been outstanding for two years or more
and against which no actual claim, administrative or judicial, has been filed or which is
not covered by perfected contracts on record. This section shall not apply to unliquidated
balances of accounts payable in trust funds as long as the purposes for which the funds
were created have not been accomplished.”
The provisions of Section 98 of PD No. 1445 are applicable not only to national
government but also as supplementary rule in the local government accounts as
asserted by COA Chairman Celso D. Gangan in his 5 th endorsement dated September
2, 1998. However, this does not apply to unliquidated balances of Accounts Payable in
Trust Fund (TF) for they should be remitted/returned to its Trustor since the intended
purpose of the funds received have been already served and if the Trustor agencies
were already defunct, it is recommended that these balances be remitted to the National
Treasury.
Following this clarification, the Guaranty/Security Deposits Payable of P516,044.21 does

not fall within the classification of unliquidated balances of Accounts Payable in the TF,
the same may be reverted to the Unappropriated Surplus of the GF of the Municipality
pursuant to Section 98 of PD No. 1445.
Verification of Guaranty/Security Deposits Payable account schedule showed that claims

totaling P516,044.21 (Appendix 7) were outstanding in the books for two years or more
which gives rise to doubtful existence and accuracy of the account balance. It was also
noted that some accounts were named as “collection” as shown in the schedule
provided by the Municipal Accountant. Interview with the Municipal Accountant revealed
that accounts were named as “collection” since the name of the supplier cannot be
determined due to lack of documentation.
Due to passage of time, legitimacy of the claims is questionable since claimants failed to
demand payments within two years.
We recommended that the Municipal Mayor instruct the Municipal Accountant to:
a. confirm with the contractor and to request him to submit documents

pertaining to his claims, otherwise revert the account to the Unappropriated
Surplus of the GF, subject to an authority from the Sangguniang Bayan
through a Resolution with the condition that appropriation shall be made in the
event that claim arises in the future pursuant to the provisions of Section 98 of
PD No. 1445; and
b. trace down the accounts named as “collection” and provide for subsidiary
ledgers for each supplier tracked down for easy facilitation and monitoring of
each account.
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Per Agency Action Plan and Status of Implementation (AAPSI), the Municipal Mayor
commented that the Municipal Accountant has been continuously exerting efforts to
collect/acquire the necessary documents required from the contractors/suppliers.
However, some of them are unable to submit the same according to schedule.
5. Receivables from the former Municipal employees totaling P78,838.69

representing payments made by the Municipality of their personal loan with the
Land Bank of the Philippines (LBP) - Mulanay Branch remain uncollected at year-
end, contrary to Section 2 of Presidential Decree (PD) No. 1445. Also, the use of
Due from Officers and Employees account instead of Other Receivables account
resulted correspondingly in the overstatement and understatement of its
balances, both by P78,838.69, contrary to the Revised Chart of Accounts for Local
Government Units (LGUs) prescribed under Commission on Audit (COA) Circular
No. 2015-009.
“It is the declared policy of the State that all resources of the government shall be
managed, expended or utilized in accordance with law and regulations, and safeguarded
against loss or wastage through illegal or improper disposition, with a view to ensuring
efficiency, economy and effectiveness in the operations of government. The
responsibility to take care that such policy is faithfully adhered to rests directly with the
chief or head of the government agency concerned.”
The Revised Chart of Accounts for LGUs prescribed under COA Circular No. 2015-009
dated December 1, 2015 provides the description of the following accounts:
Account Name and Code Description

Due from Officers and Employees This account is used to record amount of claims
1-03-06-020 from agency’s officers and employees for
overpayment, cash shortage, loss of assets and
other bills issued by the agency. Credit this
account for collection of receivable.
Other Receivables This account is used to record amount due from

1-03-06-990 debtors and other agencies not falling under any
of the specific receivable account. Credit this
account for payment/liquidation of receivable.
In Calendar Year (CY) 2018, the Due from Officer and Employees account had a
balance of P106,838.63. This pertains to the collectibles of the Municipality from the
Municipal employees way back CY 2012 wherein the payments of amortizations for
salary loans availed by the Municipal employees from the LBP-Mulanay Branch were
paid in advance by the Municipality and the latter was responsible in collecting from the
respective Municipal employees the amount paid by deducting the same from the
payrolls.
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During CY 2019, the amount of P27,999.94 was collected, leaving an uncollected
amount of P78,838.69, pertaining to the following former Municipal employees:
Name Amount
Rosalina B. Bragais P25,311.09
Melchie L. Ebitner 53,527.60
Total P78,838.69
According to the Municipal Accountant, the balance was not collected because
Ms. Rosalina B. Bragais went on leave but without approved leave of absence. She was
recently seen working at the Southern Luzon State University (SLSU), Catanauan
Satellite while Ms. Melchie L. Ebitner was already deceased. Also, per Agency Action
Plan and Status of Implementation (AAPSI) submitted, the Municipal Mayor commented
that the remaining receivables were not collected because they cannot locate the
debtors or their heirs. He added that a request will be made to the Sangguniang Bayan
for a resolution to facilitate the request for its write-off.
The continuous non-collection of these receivables may result in the loss or wastage of
government funds, thereby indicating inefficient management of resources, contrary to
the above-cited law.
This observation has been noted since year 2012.
Meantime, the Audit Team further noted that the Due to Officers and Employees account
was still used instead of the Other Receivables account, considering the debtors are no
longer employees of the Municipality, contrary to the prescribed Chart of Accounts for
LGUs, thus resulted correspondingly in the overstatement and understatement of its
balances, both by P78,838.69.
We reiterated our recommendation that the Municipal Mayor require the Municipal
Treasurer to exert effort to collect the remaining receivables from the former
Municipal employees.
We also recommended that the Municipal Mayor, in case of non-settlement of the

amount, file appropriate charges against the concerned persons, otherwise
require the Municipal officials who authorized the use of Municipal funds for
payment of personal loans of employees to settle the same.
We further recommended that the Municipal Mayor require the Municipal

Accountant to make an adjustment of the books by debiting the Other Receivables
account and crediting the Due to Officers and Employees account both by
P78,838.69, for proper presentation of accounts in the financial statements.
The Municipal Mayor stated in his letter dated July 16, 2020 that, for the past years the
Municipality exerted all efforts to collect the subject amount from the debtors. Despite
the same, no payment was made. It was later on found that Melchie Ebitner passed
away on April 24, 2014. Rosalina Bragais, on the other hand, left the Municipality
without any notice and could not be located. In CY 2018, the Municipality, through the
Office of the Municipal Administrator, sent written notices (via registered mail) to the last
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known addresses of Melchie Ebitner for her heirs and Rosalina Bragais, reiterating the
demand for the immediate settlement of the arrearages amounting to P25,311.09 and
P53,527.60, respectively. The Municipality did not get any response from said demand
letters.
Due to the repeated failure of the Municipality to locate the debtors and their heirs, it was
constrained to request the Sangguniang Bayan to write-off these debts from the book of
accounts.
Earlier this year, it was found that Rosalina Bragais is working at the Southern Luzon
State University, Catanauan Campus. Taking this opportunity to collect the amount,
another written notice was sent to her reiterating the demand for her to immediately
settle her arrears. This time, she sent a reply via email expressing her promise to settle
her arrearages on a monthly basis starting August 2020.
As to the case of Melchie Ebitner, a written notice was again sent to her heirs on July 17,
2020 via registered mail. While waiting for the heirs’ response, the Human Resource
Management Office is trying to locate the documents relative to Ebitner’s loan to trace
the co-maker and demand settlement from the latter.
Due to the recent events, the possibility of collection arose. Thus, the purpose of these
loans being written off from the books through a resolution is no longer possible.
The above-cited actions have proved that the Municipality is exerting all efforts to collect
the full amount of receivables from these former Municipal employees. It is not the
intention of the Municipality to waste government funds or inefficiently manage its
resources.
The Municipality will file appropriate charges against the concerned persons in case the
amount is not paid within the given period.
As to the use of “Due from Officers and Employees” account instead of “Other
Receivables” account, this mistake has already been rectified through Journal Entry
Voucher dated July 10, 2020, debiting the “Other Receivables” account and crediting the
“Due from Officers and Employees” account both in the amount of P78,838.69.
6. Insurable properties of the Municipality with acquisition cost of P87,108,748.43

and with a net book value of P68,262,718.34 were not covered with appropriate
property insurance with the Government Service Insurance System (GSIS) as
required in Commission on Audit (COA) Circular No. 92-390 and Republic Act (RA)
No. 656, thus leaving the properties at risk of total loss without the right of
indemnification.
Item 1.1.2 of COA Circular no, 92-390 dated November 17, 1992 provides that:
"All insurable assets and properties of the Government are adequately covered/insured
with the General Insurance Fund of the GSIS."
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Item 3.1 of the same Circular provides that:
“All heads of the national agencies, local government units and government owned or
controlled corporations shall be responsible for the preparation and submission of the
inventory of all insurable physical assets xxx.”
RA No. 656, otherwise known as the Property Insurance Law provides that:
Section 2. In order to indemnify or compensate the Government as defined in this Act for
any damage to, or loss of its properties due to fire, earthquake, storm, or other casualty
there is hereby established the “Property Insurance Fund”, which shall consist of all
moneys resulting from the liquidation of the insurance constituted in Section three
hundred forty of the Revised Administrative Code and from premiums and other
incomes.
Section 4(c). “Property” includes vessels and craft, motor vehicles, machineries,
permanent buildings, properties stored therein, or in buildings rented by the
Government, or properties in transit.
Verification of the compliance of the Municipality of the above-cited Circular disclosed

that some of the insurable assets and properties, such as office buildings, heavy
equipment and motor vehicles were not covered with appropriate property insurance
with the GSIS as shown below.
Estimated
Year Acquisition Useful Life Accumulated Net Book Value
Description Acquired Cost (in month) Depreciation
Office Building December
2004 P26,418,488.82 204 P11,439,208.56 P14,979,280.26
Office Building March
(new) 2014 20,940,019.00 315 3,130,353.81 17,809,665.19
New Comfort
Room and
Improvement of August
Accounting Office 2018 1,475,900.55 360 15,578.95 1,460,321.60
Slaughterhouse February
2018 14,103,456.05 360 372,174.50 13,731,281.55
Evacuation October
Center 2016 4,494,787.85 226 514,046.98 3,980,740.87
Motorcycle-
Yamaha YBR June
125G 2011 78,100.00 6 75,952.24 2,147.76
Motorcycle-
Kawasaki Rouse March
135 2013 72,800.00 27 66,300.00 6,500.00
Motor Grader- October
Liugong 2015 4,795,000.00 94 1,480,456.38 3,314,543.62
Wheel Loader March
2016 4,215,196.16 99 1,101,219.96 3,113,976.20
Crawler/backhoe/ December
excavator 2018 8,995,000.00 120 427,262.52 8,567,737.48
Rescue Vehicle- November
MDRRMC 2017 1,520,000.00 72 223,476.19 1,296,523.81
Total P87,108,748.43 P18,846,030.09 P68,262,718.34
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During the year, insured properties included only some motor vehicles and the new
public market building. It was also noted that some motor vehicles have no certificate of
registration. Thus, said properties are not protected against loss or damage in the event
of fire, earthquake, floods and other fortuitous events.
We recommended that the Municipal Mayor and the Municipal Treasurer see to it
that all the insurable properties of the Municipality are covered with insurance
with the GSIS in compliance with the provisions of COA Circular No. 92-390 and
RA No. 656.
commented that he instructed the concerned officials to ensure that properties of the
Municipality are covered with insurance with the GSIS. He added that the Municipal
Engineer is in the process of complying/collecting the documents needed to have the
properties insured.
7. Payments for various procurement totaling P46,405,019.12 were not supported

with proper and complete documentation as the same were inadvertently not
attached by the Bids and Awards Committee (BAC) Secretariat and overlooked by
the Municipal Accountant, contrary to Sections 4(6) of Presidential Decree (PD)
No. 1445 and Commission on Audit (COA) Circular No. 2012-001 dated June 14,
2012 and Section 13 of the 2016 Revised Implementing Rules and Regulations
(IRR) of Republic Act (RA) No. 9184, rendering the validity, legality and propriety
of the disbursements doubtful.
Section 4(6) of PD No. 1445, provides that “[c]laims against government funds shall be
supported with complete documentation”.
COA Circular No. 2012-001 dated June 14, 2012 provides the list of the documentary
requirements that should support the common disbursements of the government.
Section 13 of IRR of RA No. 9184 provides the requirement for the invitation of
observers to sit in the procurement proceedings as follows:
13.1.1 At least one (1) shall come from a duly recognized private group in a sector or
discipline relevant to the procurement at hand:
a) For Infrastructure Projects, national associations of constructors duly

recognized by the Construction Industry Authority of the Philippines (CIAP),
such as, but not limited to the following:
(1) Philippine Constructors Association, Inc.; or

(2) National Constructors Association of the Philippines, Inc.
b) For Goods, a specific relevant chamber-member of the Philippine Chamber of

Commerce and Industry.
c) For Consulting Services, a project-related professional organization

accredited or duly recognized by the Professional Regulation Commission or
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the Supreme Court, such as, but not limited to:
(1) Philippine Institute of Civil Engineers (PICE);

(2) Philippine Institute of Certified Public Accountants (PICPA); or
(3) Confederation of Filipino Consulting Organizations; and
13.1.2 The other observer shall come from a non-government organization (NGO).
13.2 The observers shall come from an organization duly registered with the
Securities and Exchange Commission (SEC) or the Cooperative Development
Authority (CDA), and should meet the following criteria:
a) Knowledge, experience or expertise in procurement or in the subject matter

of the contract to be bid;
b) Absence of actual or potential conflict of interest in the contract to be bid; and
c) Any other relevant criteria that may be determined by the Bids and Awards
Committee (BAC).
Post audit of Disbursement Vouchers (DVs) and supporting documents pertaining to

various projects of the Municipality totaling P46,405,019.12 revealed the following
deficiencies:
a. Lacking supporting documents:
 Approved Annual Procurement Plan

 Approved Budget for the Contract
 Construction Safety and Health Program approved by Department of Labor and
Employment (DOLE)
 Site Development Plan
 Minutes of Pre-Bid Conference
 Minutes of Pre-Procurement Conference
 Omnibus Sworn Statement by the prospective bidder
 Program Evaluation and Review Technique/Critical Path Method
 Certification from the Head of BAC Secretariat on the posting of advertisement at
conspicuous places
 Bid Evaluation Report
 Inspection Report by the Agency’s Authorized Engineer
 Pictures taken before, during and after the construction
 Contractor’s Affidavit on payment of laborers and materials
 Office Order authorizing the signing official to sign/approve the DV in behalf of
the Municipal Mayor
Details are presented in Appendix 8.
b. Notice of Award (NOA) and Notice to Proceed (NTP) for the following projects have
no date of receipt by the contractor:
NOA NTP
 Rehabilitation (Reblocking of Municipal Road)
Barangays 8 and 9 x x
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 Construction of Local Access Road along Barangay x x
Tagbacan Silangan to Barangay San Jose Anyao
 Supply and Delivery of Dump Truck √ x
 Consulting Services for the Updating of Comprehensive
Land Use Plan (CLUP) √ x
c. No invitation was sent to a duly recognized private group in a sector or discipline

relevant for the procurement of infrastructure projects, goods and consulting services
as required in Section 13.1.1 of IRR of RA No. 9184. Also, only one and the same
invitation was sent to the BAC members and technical working group (TWG) and
NGO representative, however the latter’s name and the name and address of the
organization it represented were not indicated, hence its qualification could not be
verified (Appendix 9);
d. Performance Bond provided by Liberty Insurance Corporation to the Contractor of

the project “Consulting Services for the Updating of CLUP” has no indicated date,
thus its effectivity date could not be established;
e. The status of advertisement/Invitation to Bid posted in PhilGEPS for the following

projects are “Pending” instead of “Active”, indicating that such were not successfully
published:
 Rehabilitation (Reblocking) of Municipal Road along Nabatasan Street

 Partial Construction of Sanitary Landfill, Barangay Dahican
 Regravelling of Madulao Farm to Market Road (FMR), Public Market
 Concreting of Local Road, Catanauan Central School
 Construction of FMR, Barangay Bolo
f. The copy of Professional Regulation Commission (PRC) Identification (ID) of the

Project Engineer and Materials Engineer for the contracted projects by P.Y Lacorte
Builders were not attached; and
g. The Property Acknowledgement Receipt for dump truck has no signature of the
Municipal General Services Officer (MGSO) as issuing officer.
Incomplete and improper documentation rendered the validity, legality and propriety of
the disbursements doubtful, contrary to the afore-stated rules and regulations.
During interview with the BAC Secretary, she commented that the missing documents
were inadvertently not attached to the DV, she however committed to submit the lacking
documents. On the other hand, the BAC Chairman stated that he will discuss the noted
deficiencies with his staff.
a. Municipal Accountant in coordination with the BAC Chairman to submit the

lacking supporting documents to the Audit Team for further evaluation of paid
procurement transactions;
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b. BAC Chairman to ensure that the NOA and NTP are duly received by the
Contractor;
c. BAC Chairman to ensure strict compliance with the documentary requirements

to substantiate the procurement activities of the Municipality; and
d. Municipal Accountant to ensure that the DV is supported with proper and

complete documents before processing its payment.
In his letter dated August 13, 2020, the Municipal Mayor stated the following
explanations and comments:
a. Lacking supporting documents
 Approved Annual Procurement Plan (APP) - There is an existing APP. The BAC
Secretariat might have inadvertently failed to attach it while the Accounting Office
inadvertently overlooked it due to the numerous documents.
 Approved Budget for the Contract - There must have been a misconception
particularly on the part of the BAC regarding this concern as the Committee has
comprehended the Approved Budget for the Contract in procurement terms and
not by means of how it was defined/used in the Audit Observation Memorandum
(AOM).
 Construction Safety and Health Program (CSHP) approved by Department of

Labor and Employment (DOLE) - The acquisition of CSHP approved by the
DOLE has been a dilemma in the implementation of construction projects in the
Municipality. The DOLE takes weeks or months to issue the same after an
application is filed. This period would usually take longer than the supposed
duration of construction projects which ABCs amount to P1,000,000.00 and
below. Considering the weather condition in the country, projects should be
implemented prior to the rainy season. Moreover, projects under the Trust Fund
and DILG funded projects require immediate liquidation of the downloaded fund
for a given period of time. In order not to delay the implementation of projects and
not to deprive the people of its benefits, the Municipality resorted not to strictly
require the CSHP for projects amounting to P1,000,000.00 and below.
 Site Development Plan - This requirement may have been inadvertently

overlooked by the BAC Secretariat and the Accounting Office.
 Minutes of Pre-Bid Conference and Minutes of Pre-Procurement Conference -

According to the BAC, they are fully cognizant of the provisions in the IRR of RA
No. 9184 particularly that of Section 20.1 and Section 22. Moreover, the same
cannot be approved for payment in the Accounting Office once these documents
are not attached in the DV. As such, the BAC requested to review the DVs still
available in the Accounting Office for the projects identified in the AOM and
submit the lacking documents, if any.
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 Omnibus Sworn Statement (OSS) by the prospective bidder - There might have
been a mistake with regard to this. The same cannot be missed out as the same
is part of the bidding documents. The same is checked by the BAC during the
bidding and reviewed and evaluated by the BAC Technical Working Group
(TWG). Nevertheless, the BAC committed to compile the alleged lacking OSS
and submit the same to the Auditor.
 Program Evaluation and Review Technique (PERT)/ Critical Path Method (CPM)-
Upon review by the BAC, it was revealed that the contractor/s submitted
Construction Schedule and S-Curve in lieu of the PERT. Hence, since the BAC
has been notified of this issue, they will ensure that the contractor/s shall submit
the PERT for respective construction projects instead of the Construction
Schedule and S-Curve.
 Certification from the Head of BAC Secretariat on the posting of advertisement at

conspicuous places - According to the BAC Secretariat, although it has always
been their practice to post the advertisement at conspicuous places in the
Municipality, they were not aware of the need to attach a certification relative to
the conduct of the same. As such, they committed to attach the same in the
incoming DVs.
 Bid Evaluation Report (BER) - According to the BAC, this is an integral part of the
Post Qualification Report and that the latter cannot be completed without the
BER.
 Inspection Report by the Agency’s Authorized Engineer - The Municipal Engineer

is not a member of the Inspectorate Team of the Municipality in terms of
procurement. However, a certification of the Municipal Engineering Office (MEO)
stating that the purchased Dump Truck is a brand new unit and is in good running
condition will be submitted to support the inspection made.
 Pictures taken before, during and after the construction - Upon consultation with
the BAC, they stated that they are certain that these pictures were attached to the
DVs of the projects identified in the AOM. The DVs will not be approved in the
Accounting Office as to the completeness of the supporting documents without
the same. Hence, they committed to review their documents in file.
 Contractor’s Affidavit on payment of laborers and materials - Included in the

bidding documents is the Omnibus Sworn Statement of the contractor.
Particularly in item no. 7 it states that “the bidder complies with the existing labor
laws and standards”, hence, supporting its commitment to justly compensate its
laborers and perform its responsibilities as a bidder. Nevertheless, since this
concern has been raised, the undersigned shall ensure the BAC to require the
contractors to submit the same. May we just know when this should be required
from them? Would it be in the bidding or prior to billing?
 Office Order authorizing the signing official to sign/approve the DV in behalf of

the Municipal Mayor - Since the DVs subject in this issue has been forwarded to
the Office of the Auditor, the Municipality cannot identify the specific date of
signing of the DVs.
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b. No date of receipt by the contractor on NOA and NTP
The BAC admitted that they may have unintentionally overlooked the NOA and NTP
as received by the contractors. Hence, the BAC was instructed to ensure that the
dates of receipt of NOA and NTP for the subject projects and for the ensuing projects
are indicated.
c. No invitation to a duly recognized private group to sit in the procurement proceedings
No known “duly recognized private group in a sector or discipline relevant for the
procurement of infrastructure projects, goods and consulting services” are
present/registered in the Municipality. However, the Municipality recently knew a
professional organization accredited by the Philippine Institute of Civil Engineers
(PICE) and a national association of contractors duly recognized by the Philippine
Contractors Association (PCA). Hence, compliance shall be ensured in the incoming
procurements of the Municipality.
d. No date on Performance Bond provided by Liberty Insurance Corporation to the

Contractor of the project “Consulting Services for the Updating of CLUP”
According to the BAC, they may have been overlooked this matter. Hence, they
assured to strictly observe such details.
e. “Pending” status of advertisement/Invitation to Bid posted in PhilGEPS
Acquiring a stable internet connection has been a continuing dilemma in the

Municipality considering that most transactions in the government are transacted
online. The BAC Secretariat exerts all efforts to comply with the legal requirements of
procurement. As soon as an internet service becomes available, the
advertisement/Invitation to Bid is posted in PhilGEPS. This copy is immediately
printed as proof of its posting. This is also in preparation for a possible loss of
internet signal again. The lack of a good internet service in municipalities such as
Catanauan should be considered in cases like this. The printed form showing the act
of posting manifests a clear intention to comply with the legal requirement despite
the conditions present and definitely not within the control of the BAC.
Finally, the BAC and Municipal Accountant were instructed to comply with the stated
audit recommendations.
Auditor’s Rejoinder:
The Audit Team acknowledged the explanations/comments of the Municipal Mayor but
gave its views on some matters as follows:
a. The documents allegedly attached to the DV such as Minutes of Pre-Bid Conference,

Minutes of Pre-Procurement Conference, OSS, BER and pictures taken before,
during and after the construction are actually lacking in some projects, hence the
recommendation to submit the same is maintained;
69
b. The Contractor’s Affidavit on payment of laborers and materials should be attached
to the DV for every progress payment and final payment. The certification stated in
the OSS pertains to previous contracts of the prospective bidder;
c. As per instruction on the use of DV, a government agency is required to maintain a

duplicate copy of paid DV and as observed by the Audit Team the Municipal
Accountant is complying with this regulation, hence the Municipality can immediately
identify which DVs were signed by the person authorized by the Municipal Mayor to
sign/approve in his behalf;
d. As to the requirement on CSHP approved by DOLE, the Audit Team maintained its
recommendation that it should be attached to the DV as one of the supporting
documents. BAC should require the submission of CSHP from the winning bidder as
part of documentary requirements before the signing of contract as required in
Section 37.2 of IRR of RA No. 9184; and
e. For “Pending” status of advertisement/Invitation to Bid posted in PhilGEPS, the

justification regarding the unstable internet connection in the Municipality maybe
accepted, however the Audit Team gave its views that had the BAC took note of all
pending postings in PhilGEPS, monitor and made effort during the seven days
minimum period of posting from the Publish Date to the Closing Date, the BAC could
have printed a copy of Bid Notice Abstract/Invitation to Bid with “Active”, “Closed” or
“Awarded” status. The Audit Team cannot rely or consider the “Pending” status as
valid since it can be changed to “In Preparation” status which can be viewed only by
the user that created it, and can be revised or deleted;
f. Lastly, the Audit Team maintained its recommendation regarding the submission of
all lacking documents for further evaluation of the transactions/disbursements.
8. Disposal of fully depreciated and unserviceable properties with residual value

totaling P2,109,506.78 was not in accordance with Section 79 of Presidential
Decree (PD) No. 1445 and Commission on Audit (COA) Circular No. 89-296,
rendering the regularity of such disposal questionable.
Section 79 of PD No. 1445 – Destruction or sale of unserviceable property -
“When government property has become unserviceable for any cause, or is no longer
needed, it shall, upon application of the officer accountable therefore, be inspected by
the head of the agency or his duly authorized representative in the presence of the
auditor concerned and, if found to be valueless or unsalable, it may be destroyed in their
presence. If found to be valuable, it may be sold at public auction to the highest bidder
under the supervision of the proper committee on award or similar body in the presence
of the auditor concerned or other duly authorized representative of the Commission,
after advertising by printed notice in the Official Gazette, or for not less than three
consecutive days in any newspaper of general circulation, or where the value of the
property does not warrant the expense of publication, by notices posted for a like period
in at least three public places in the locality where the property is to be sold. In the event
that the public auction fails, the property may be sold at a private sale at such price as
may be fixed by the same committee or body concerned and approved by the
Commission.”
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COA Circular No. 89-296 dated January 27, 1989 provides the audit guidelines on the
disposal of property and other assets of National Government Agencies and
Instrumentalities, Local Government Units and Government-Owned or Controlled
Corporations and their Subsidiaries.
In Calendar Year 2018, the fully depreciated and unserviceable properties of the
Municipality with total residual value of P1,664,210.39 were not disposed by the
Municipality, thus submission of its corresponding Inventory and Inspection Report of
Unserviceable Property (IIRUP) and to facilitate its disposal were recommended by the
Audit Team.
On October 16, 2019, the Office of the General Services Office submitted a letter to the
Audit Team together with the Inventory and Inspection of Fully Depreciated Property
(IIFDP) as of December 31, 2018 and Waste Materials Report (WMR) with total residual
amount of P2,109,506.78 (Appendix 10), requesting inspection of the various
unserviceable properties of the Municipality before disposal. In reply, the Audit Team
requested in its letter dated October 17, 2019 the submission of certified copy of related
Memorandum Receipt for Equipment (MRE)/Property Acknowledgement Receipt (PAR),
Property Card and Property, Plant and Equipment (PPE) Ledger Card for the items to be
disposed. On January 9, 2020, various MRE/Acknowledgement Receipt for Equipment
(ARE) for unserviceable property were submitted to the Audit Team, however, on the
same date, it was learned that the items enumerated in the IIFDP were already
disposed, some were allegedly transferred to unidentified agency, some were already
destroyed as indicated in the WMR and the scraps were sold at P400,000.00 and
receipted under Official Receipt No. 6656388 dated November 7, 2019. No invitation
was sent to the Audit Team to witness this disposal activity.
Nevertheless, as initial verification of the regularity of such disposal, the Audit Team
reviewed the submitted MRE/ARE and traced it from the IIFDP. The following
deficiencies were noted:
 Various unidentified PPE totaling P501,767.55 were included in the IIFDP, hence
included in the disposal. Details are as follows:
Office Equipment
Beginning Balance, General Ledger, December 1994 P 36,770.73
Library Books
Balance from General Ledger, December 2003 19,823.00
Balance from Trust Fund, December 31, 2004 415,173.82
Other PPE
Beginning Book Balance, January 2001 30,000.00
Total P 501,767.55
 All submitted MRE/ARE were not cancelled, hence the accountable officers have no
proof that they already returned the property previously issued to them; and
 The MRE/ARE also have no indicated property number or any reference number that
will facilitate tracing from the IIFDP.
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The above noted deficiencies rendered the regularity of such disposal questionable.
According to the Municipal General Services Officer (MGSO), immediate disposal was
instructed by the Municipal Mayor because the storage where the said unserviceable
properties were located was flooded due to broken drainage.
We recommended that the Municipal Mayor require the MGSO to:
a. submit to the Audit Team the following:
 IIRUP for those disposed through sale and destroyed with corresponding
appraisal value and duly certified by the concerned officials;
 list of transferred property with corresponding Invoice and Receipt of

Property;
 photos of valueless property before and during condemnation either by

burning, pounding and the like;
 documents on the public auction conducted; and
 other documents that will substantiate the regularity of such disposal.
b. organize the PAR in accordance with the sequence of PPE in IIRUP to facilitate
verification; and
c. ensure that the complete details of the PPE are indicated in all PAR.
Henceforth, ensure that the disposal of the Municipality’s PPE is in accordance

with Section 79 of PD No. 1445 and COA Circular No. 89-296.
As stated in his letter dated July 29, 2020, received by the Audit Team on August 15,
2020, the Municipal Mayor stated that per consultation with the new MGSO, it was
confirmed that the previous MGSO and the Disposal Committee may have inadvertently
missed a requirement of PD No. 1445 on disposal of fully depreciated and unserviceable
properties, particularly on the needed presence of an auditor. However, records would
show that the Bids and Awards Committee followed the prescribed steps in the
destruction or sale of unserviceable properties. Further, records also show that some of
the subject properties were either damaged by natural disasters or have naturally
deteriorated through time. It should be noted that these issues on the disposal of
unserviceable properties of the Municipality and the disposal itself were first raised and
conducted during the term of the previous MGSO who just retired last December 2019.
The current MGSO assumed office in February 2020. Nevertheless, she exerted efforts
to answer this concern based on the available documents in her office. She was already
instructed to submit the documents required by the Audit Team, to organize the PAR in
accordance with the sequence of PPE presented in IIRUP and to ensure that the
complete details of the PPE are indicated in all PAR.
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The Audit Team acknowledged the explanations/comments of the Municipal Mayor but
invited the latter’s attention to the provisions of Section 102 of the same PD that, “The
head of any agency of the government is immediately and primarily responsible for all
government funds and property pertaining to his agency. Persons entrusted with the
possession or custody of the funds or property under the agency head shall be
immediately responsible to him, without prejudice to the liability of either party to the
government.” Hence, the Audit Team maintained its recommendation that the Municipal
Mayor facilitate the submission of documents that will substantiate the regularity of such
disposal.
9. Motor vehicles of the Municipality costing P1,670,900.00 were not supported by

Certificates of Registration with the Land Transportation Office (LTO), contrary to
Section 5 of Republic Act (RA) No. 4136, thus exposing the subject vehicles to
third party claims which could be detrimental to the government in terms of
litigation costs.
Section 3 of RA No. 4136, otherwise known as “Land Transportation and Traffic Code”
provides that:
"Motor Vehicle" shall mean any vehicle propelled by any power other than muscular
power using the public highways, but excepting road rollers, trolley cars, street-
sweepers, sprinklers, lawn mowers, bulldozers, graders, fork-lifts, amphibian trucks, and
cranes if not used on public highways, vehicles which run only on rails or tracks, and
tractors, trailers and traction engines of all kinds used exclusively for agricultural
purposes.
Trailers having any number of wheels, when propelled or intended to be propelled by

attachment to a motor vehicle, shall be classified as separate motor vehicle with no
power rating.”
Section 5 of the same Act provides that:
“No motor vehicle shall be used or operated on or upon any public highway of the
Philippines unless the same is properly registered for the current year in accordance
with the provisions of this Act.”
Verification of the compliance of the Municipality of the above-cited Act disclosed that
motor vehicles of the Municipality have no certificate of registration with the LTO as
shown below.
Estimated
Description Year Acquisition Useful Life Accumulated Net Book
Acquired Cost in months Depreciation Value
Motorcycle-
Yamaha YBR
125G June 2011 P 78,100.00 6 P 75,952.24 P 2,147.76
Motorcycle-
Kawasaki
Rouse 135 March 2013 72,800.00 27 66,300.00 6,500.00
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Rescue
Vehicle- November
MDRRMC 2017 1,520,000.00 72 223,476.19 1,296,523.81
Total P1,670,900.00 P365,728.43 P1,305,171.57
Verification with the Municipal General Services Office (MGSO) Staff who handles the
registration of the motor vehicles revealed that some vehicles were not registered with
the LTO due to lost papers and inadequate documentation. In addition, it was also
disclosed that some motor vehicles were not registered since the same were fully
depreciated to which the team objected. Motor vehicles, although fully depreciated must
be registered with the LTO, as long as it is serviceable and in good condition.
Hence, the non-compliance of the above cited regulation exposes the subject vehicles to
third party claims which could be detrimental to the government in terms of litigation
costs.
We recommended that the Municipal Mayor instruct the MGSO to facilitate the
timely registration of the motor vehicles with the LTO in compliance with Section
5 of RA No. 4136.
commented that the concerned officials/personnel are still in the process of acquiring
necessary documents to facilitate the registration of these vehicles.
10. Consolidated Property Inventory Form (PIF) was neither prepared nor submitted
by the Municipality to the Government Service Insurance System (GSIS) and to
the Audit Team, contrary to Commission on Audit (COA) Circular No. 2018-002,
thus complete information required by GSIS on the inventory of assets and
properties of the Municipality, including its latest appraised/market values was not
obtained.
Section 5, Guidelines of COA Circular No. 2018-002 dated May 31, 2018 states that the
heads of government agencies shall direct the pertinent official under his/her supervision
to prepare the Property Inventory Form listing of all the insurable properties and other
assets of the agency, showing its latest appraised values/valuation, appraisal date,
location and other information using the attached form.
It further provides that the consolidated PIF shall be submitted to the Supervising Auditor
and/or Audit Team Leader and General Insurance Fund (GIF), GSIS, not later than April
30 of each year.
The PIF will serve as the basis for the assessment of general insurance coverage over
all insurable assets, properties and interest of the government with the GIF of the GSIS.
Review of the records disclosed that the consolidated PIF was not yet prepared nor
submitted to the GSIS and to the Audit Team, contrary to the abovementioned Circular
that requires the PIF to be submitted not later than April 30 of each year, thus
information required by GSIS the on the inventory of assets and properties of the
Municipality, including its latest appraised/market values was not obtained.
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We recommended that the Municipal Mayor direct the Municipal General Services
Officer (MGSO) to prepare and submit the consolidated PIF to the GSIS and to the
Audit Team on or before April 30 of each year in compliance with COA Circular
No. 2018-002.
commented that he directed the MGSO to prepare and submit the consolidated PIF to
the GSIS and to the Audit Team on or before April 30 of each year in compliance with
COA Circular No. 2018-002.
B. Gender and Development
11. Programs/Projects/Activities (PPAs) attributed to Gender and Development (GAD)

totaling P29,121,293.00 have no supporting Harmonized Gender and Development
Guidelines (HGDG) Tools due to lack of training regarding its preparation,
contrary to the Philippine Commission on Women (PCW)-Department of the
Interior and Local Government (DILG)-Department of Budget and Management
(DBM)-National Economic and Development Authority (NEDA) Joint Memorandum
Circular (JMC) No. 2013-01 as amended by PCW-DILG-DBM-NEDA JMC No. 2016-
01, hence the absence of proof of analysis whether the said PPAs are partly or
wholly gender-responsive which consequently prevented the Audit Team from
conducting proper validation of the accomplishments.
The new Annexes D and E provided in PCW-DILG-DBM-NEDA JMC No. 2016-01 dated
January 12, 2016 show the required information in preparing the GAD Plan and Budget
(GPB) and GAD Accomplishment Report (AR), respectively, as follows:
GPB GAD AR
For Client/Organization-Focused For Client/Organization-Focused
Column 1 : Gender Issue or GAD Mandate Column 1 : Gender Issue or GAD Mandate
Column 2 : GAD Objective Column 2 : GAD Objective
Column 3 : Relevant LGU Program or Project Column 3 : Relevant LGU Program or
Column 4 : GAD Activity Project
Column 5 : Performance Indicator and Target Column 4 : GAD Activity
Column 6 : GAD Budget Column 5 : Performance Indicator and
Column 7 : Lead or Responsible Office Target
Column 6 : Actual Results
Column 7 : Approved GAD Budget
Column 8 : Actual GAD Cost or Expenditure
Column 9 : Variance/Remarks
For Attributed Programs For Attributed Programs

Column 8 : Title of LGU Program or Project Column 10 : Title of LGU Program or Project
Column 9 : HGDG Design/Funding Column 11 : HGDG PIMME/FIMME Score
Facility/Generic Checklist Score Column 12: Total Annual Program/
Column 10: Total Annual Program/ Project Cost or Expenditure
Project Budget Column 13: GAD Attributed Program/
Column 11: GAD Attributed Program/ Project Cost or Expenditure
Project Budget Column 14: Variance/Remarks
Column 12: Lead or Responsible Office
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Item 4.1.C.4 of the same JMC as amended provides the guidelines for the attribution of
PPAs to the GAD Budget. It states among others that the Local Government Unit (LGU)
may attribute a portion or whole of the program’s budgets to the GAD budget supporting
gender-responsive PPAs. To facilitate this, the LGU should conduct a gender analysis
of their programs and projects through the administration of the HGDG tool using the
appropriate design checklist (HGDG Boxes 9-15, 18-23), the funding facilities checklist
(HGDG Box F1) or the generic checklist (HGDG Box 7a). The results of the HGDG
assessment together with the supporting documents (e.g., project proposal/brief) should
be attached to the GPB for submission. The administration of the HGDG will yield a
maximum score of 20 points for each program or project. Based on the HGDG score, a
percentage of the annual budget of the regular program or project may be attributed to
the GAD budget. During the preparation of its GAD AR, the LGU will again subject the
same program or project to the HGDG test using the Project Implementation and
Management, and Monitoring and Evaluation (PIMME) checklist (HGDG Boxes 16 and
17) or the Facility Implementation, Management, and Monitoring and Evaluation
(FIMME) checklist (HGDG Box F2) based on the project's annual accomplishment report
to determine the extent that the targeted HGDG score is attained. This score will be the
basis in determining actual expenditure that can be attributed to the GAD budget. If the
LGU has a HGDG score of 8 (higher than its target), it can attribute 50 percent of the
program's annual expenditure to the GAD expenditure.
Review of CY 2019 Annual Budget showed that the Municipality’s appropriation totaled
to P213,638,762.48, however it has no separate allocation for GAD, thereby indicating
that the PPAs presented in CY 2019 GPB worth P29,121,293.00 are all attributions. It
was noted that the PPAs costing P23,432,193.00 are also included in the 20 Percent
Development Fund (DF) while the remaining amount of P5,689,100.00 refers mostly to
PPAs under the Municipal Social Welfare and Development Office (MSWDO), Rural
Health Unit (RHU) and Municipal Agriculture Office (MAO). Of the total budget of
P29,121,293.00, the amount of P3,511,977.80 or 12.06 percent was not utilized. Below
are the details:
Actual
Budget Expenditure Balance
20 Percent DF P 23,432,193.00 P 23,072,622.56 P 359,570.44
MSWDO 1,960,000.00 564,265.00 1,395,735.00
RHU 1,600,000.00 189,915.00 1,410,085.00
MAO 1,669,100.00 1,387,257.64 281,842.36
Other Offices 460,000.00 395,255.00 64,745.00
Total P 29,121,293.00 P 25,609,315.20 P 3,511,977.80
Further review of GPB and GAD Accomplishment Report also showed that it lacked
Columns 8-12 and 10-14, respectively, for attributed PPAs and the same have no
supporting HGDG tools, hence opposite to the certificate of review and endorsement of
DILG stating that the Municipality has complied with the GPB format/template.
The noted deficiencies are contrary to the afore-cited regulations. Moreover, the
absence of HGDG tools had prevented the Audit Team from conducting proper
validation of the accomplishments whether the same are partly or wholly gender-
responsive.
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According to the Municipal GAD Focal Point System (MGFPS) Focal Person, the PPAs
included in the GPB were just consolidated by him based on the individual GPB form
accomplished by the Municipal Planning Development Office, MSWDO, RHU and MAO
but it has no supporting HGDG. He further stated that he came to know about the
HGDG tools when he attended a GAD seminar in year 2016 but was not able to prepare
one. He admitted that he and other members of MGFPS need training on GAD.
We recommended that the Municipal Mayor ensure that all members of the MGFPS
including elected local officials and department heads undergo capacity building
programs on GAD which shall include but not be limited to gender mainstreaming,
gender analysis, gender-responsive planning and budgeting, and GAD-related
tools in order for the MGFPS to be fully functional.
In his letter dated July 27, 2020, the Municipal Mayor stated that as per consultation with
the MGFPS Focal Person he confirmed that the Municipality lacks the necessary training
regarding the preparation of the Programs/Projects/Activities (PPAs), thus resulting in
the absence of the Harmonized Gender and Development Guidelines (HGDG) Tools
supporting the PPAs attributed to GAD. As such, he mentioned that it would be truly
beneficial, especially to personnel/officials involved in the preparation of PPAs under
GAD to undergo necessary training to improve and acquire information relative to the
same. He also added that he will attend capacity training/s relative to this once
measures on social gatherings such as trainings and seminars are arranged or once
situations amid the pandemic regain normalcy. Moreover, the inability of the LGU to fully
utilize such fund is because most PPAs with the same thrusts, specifically that of the
MSWDO’s, were grouped with PPAs with similar issues. As per recommendation, the
Municipal Mayor will ensure that all members of the MGFPS including elected local
officials and department heads undergo capacity building programs on GAD which shall
include but not limited to gender mainstreaming, gender analysis, gender-responsive
planning and budgeting and GAD-related tools in order for the MGFPS to be fully
functional.
C. 20 Percent Development Fund
12. Six development projects with total continuing appropriation of P3,690,322.00 and
one project with appropriation of P1,112,312.00 in Calendar Year (CY) 2019 remain
partially/not implemented at year-end, contrary to Section 5 of Department of the
Interior and Local Government (DILG)-Department of Budget and Management
(DBM) Joint Memorandum Circular No. 2017-1 dated February 22, 2017, thereby
depriving the constituents of the Municipality of the benefits of completed
projects to which these funds had been allocated.
Section 287 of the Local Government Code requires that every Local Government Unit
(LGU) shall appropriate in its annual budget no less than twenty percent of its annual
Internal Revenue Allotment (IRA) for development projects.
DILG – DBM Joint Memorandum Circular No. 2017-1 dated February 22, 2017 provides
for the updated guidelines on the appropriation and utilization of the 20 percent
Development Fund (DF). Item 5 thereof specifically mandates the responsibility of every
Local Chief Executive to ensure that the 20 Percent DF is optimally utilized to help
77
achieve the desirable-socio economic development and environmental outcomes of the
LGU.
Moreover, one of the principles of sound management and fiscal administration is that
the utilization of appropriated funds should be maximized so that its intended purpose,
benefits and services could be enjoyed by the targeted beneficiaries.
Per CY 2018 Annual Audit Report, only 57.8 percent out of the total appropriation of
P47,752,000.00 for development projects was utilized by the Municipality.
Verification of the Municipality’s compliance with the audit recommendation disclosed

that out of nine projects continued from CY 2018, six with total continuing appropriation
of P3,690,322.00 remain partially/not implemented as of year-end. Also, verification of
the Registry of Appropriations, Allotments and Obligations for CY 2019 showed that one
project with appropriation of P1,112,312.00 was also not yet implemented. Below are
the details:
Program/Project/Activity Appropriation Expended Balance

Current Appropriation
Water Supply Systems (Poblacion) P 1,112,312.00 P 0.00 P 1,112,312.00
Contnuing Appropriation
Power Supply-Installation of Street Lighting
System, Barangay Madulao 100,000.00 0.00 100,000.00
Concreting/Construction of Barangay Roads
Barangay Madulao 308,110.50 0.00 308,110.50
Barangay Poblacion (Reblocking) 2,500,000.00 518,388.50 1,981,611.50
Rehabilitation of River Dike 300,000.00 0.00 300,000.00
Other Land Improvement - Rehabilitation of
MRF and Landfill Site ((Barangay Dahican) 500,000.00 0.00 500,000.00
Rehabilitation of Drainage System 500,600.00 0.00 500,600.00
4,208,710.50 518,388.50 3,690,322.00
TOTAL P 5,321,022.50 P 518,388.50 P 4,802,634.00
The delayed implementation of development projects has deprived the constituents of

the Municipality of the immediate benefits or services that could have been obtained
therefrom, more specifically the socio-economic developmental and environmental
management outcomes that would generate jobs and livelihood opportunities.
We recommended that the Municipal Mayor require the Municipal Planning and
Development Coordinator to strictly follow the Project Procurement Management
Plan particularly the timetable for the implementation of development projects and
to enhance its monitoring to ensure timely completion so that intended
beneficiaries avail the maximum benefits that could be derived therefrom.
In his letter dated July 22, 2020, received by the Audit Team on August 15, 2020, the
Municipal Mayor stated the reasons for the unimplemented/unfinished PPAs as of
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December 31, 2019, as follows:
Water Supply Systems in Poblacion - P1,112,312.00
The target beneficiaries for this PPA were originally Barangays 1-10 in the población
area. However, the Municipal Development Council (MDC) was constrained to further
deliberate on this due to the increasing number of barangays in dire need of
rehabilitation/construction of water systems. As such, this project was renamed from
“Water Supply Systems in Poblacion” to “Construction/Rehabilitation of Water System” in
January 2020. Barangays Madulao, Gatasan, San Roque, San Vicente Kanluran and
Tuhian were added as beneficiaries aside from Poblacion 1-10. This was made through
MDC Resolution No. 03-2020 which was duly approved by the Sangguniang Bayan
through SB Resolution. No. 2020-038.
Power Supply-Installation of Street Lighting System, Barangay Madulao - P100,000.00
This project has been completed. However, the same was inadvertently charged under
the General Fund. Hence, the said amount under the MDF was not utilized.
Concreting/Construction of Barangay Roads-Barangay Madulao - P308,110.50
This is an unexpended balance from its original appropriation amounting to

P2,000,000.00 which can be subjected for reversion to the unappropriated surplus of the
Municipality.
Barangay Poblacion (Reblocking) - P1,981,611.50
Most areas within the poblacion are in need of rehabilitation of its respective drainage
systems prior to commencing with the reblocking.
Rehabilitation of Riverdike - P300,000.00
This is a support fund in anticipation to possible rehabilitations of existing Riverdike and

Seawall in Barangays 3, 4 and 10 of this Municipality. As there were no repairs made in
the structure, the appropriations under this PPA remained unexpended.
Other Land Improvement-Rehabilitation of MRF and

Landfill Site (Barangay Dahican) - P500,000.00
Pursuant to Republic Act 9003, the Municipality maintains a Material Recovery Facility
and Landfill site in Barangay Dahican. The Municipality has allocated appropriations for
the PPA in the aim to continuously abide with the provisions of the said law and address
concerns relative to solid waste management in the Municipality. The allocated budget
for this PPA was not expended as the Environmental Management Bureau granted a
number of cash grants/assistance to the Municipality.
Rehabilitation of Drainage System - P500,600.00
The delay in the implementation of the project was due to the lack of the necessary
updated drainage master plan of the Municipality. This is already being done by the
Engineering Office.
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The Municipality has always been fortunate to be a recipient of cash grants from
different national agencies, be it from their respective assistance programs or incentives
for the Municipality’s commendable performance/practice in the implementation of PPAs.
The Municipality’s Annual Investment Plan is conscientiously prepared every fiscal year,
prioritizing development projects that are deemed most beneficial to the constituents.
Moreover, the Municipality’s inability to fully implement PPAs appropriated under the
MDF in CY 2019 can also be attributed to the post-election activities of 2019. Not to
mention the unpredictable weather conditions during the said year which were of great
consideration in the implementation of construction/rehabilitation projects. Hence, the
delayed implementation of development projects. There was never an intention to
deprive the constituents of the Municipality, the benefits, services and livelihood
opportunities that could be obtained therefrom.
As such, the undersigned will require the MPDC to strictly follow the Project
Procurement Management Plan particularly the timetable for the implementation of
development projects and to enhance its monitoring to ensure timely completion.
The Audit Team acknowledged the explanations/comments stated by the Municipal

Mayor however it was emphasized that the projects considered as unimplemented are
those not yet awarded, hence the recommendation is maintained.
D. Local Disaster Risk Reduction and Management Fund
13. Only 70.98 percent or P5,331,068.00 out of P7,510,510.88 appropriation for

Calendar Year CY) 2019 Local Disaster Risk Reduction and Management Fund
(LDRRMF)- Mitigation Fund (MF) was utilized and P166,106.29 of which are not
proper charges, contrary to Republic Act (RA) No. 10121 and the National Disaster
Risk Reduction and Management Council (NDRRMC)-Department of Budget and
Management (DBM)-Department of the Interior and Local Government (DILG) Joint
Memorandum Circular (JMC) No. 2013-1 and NDRRMC-DILG-DBM-Civil Service
Commission (CSC) JMC No. 2014-1, thereby defeating the objectives of enhancing
the disaster preparedness and response capabilities of the Municipality to reduce
the disaster risks. Moreover, no monthly Report on Sources and Utilization of
LDRRMF for CY 2019 was submitted to the Audit Team, contrary to Item 5.1.5 of
Commission on Audit (COA) Circular No. 2012-002, thus prevented the Audit Team
from conducting timely audit to determine if the utilization of the fund is compliant
with the guidelines per COA Memorandum No. 2014-009.
 On low and improper utilization of LDRRMF- MF
RA No. 10121 or the Philippine Disaster Risk Reduction and Management Act
(PDRRMA) of 2010 provides for the adoption of a disaster risk reduction and
management approach that is holistic, comprehensive, integrated and proactive in
lessening the socio-economic and environmental impacts of disasters including climate
change, and promote the involvement and participation of all sectors and stakeholders
concerned at all levels, especially the local community.
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NDRRMC-DBM-DILG JMC No. 2013-1 dated March 25, 2013 provides for the guidelines
in the allocation and utilization of LDRRMF which shall cover the 30 percent lump-sum
allocation for Quick Response Fund (QRF) or stand-by fund for relief and recovery
projects/activities and the 70 percent allocation for disaster prevention and mitigation,
preparedness, response, rehabilitation and recovery.
NDRRMC-DILG-DBM-CSC JMC No 2014-1 dated April 4, 2014 provides for the

implementing guidelines for the establishment of Local DRRM Offices (LDRRMOs) or
Barangay DRRM Committees (BDRRMCs) in Local Government Units (LGUs). Item 4.3
of the JMC provides that the budgetary requirements for Personal Services (PS),
Maintenance and Other Operating Expenses (MOOE), and Capital Outlay (CO) of the
LDRRMO shall be sourced from the General Fund of the LGU.
For CY 2019, the Municipality’s appropriation for LDRRMF totaled to P10,729,301.25, 30

percent or P3,218,790.37 of which is for QRF and 70 percent or P7,510,510.88 is for
MF.
Review of the Municipality’s Report on the LDRRMF Utilization for CY 2019 showed that
out of P7,510,510.88 MF, only P5,331,068.00 or 70.98 percent was utilized.
Of the utilized amount, P4,695,850.00 pertains to Capital Outlay (CO) consisting of

one unit dump truck (P4,600,000.00) and aluminum divider (P95,850.00) which are not
among the approved projects per the Municipal DRRM Plan (MDRRMP) supporting the
CY 2019 Annual Budget. It was noted that the ones included in the MDRRMP are the
following but were not implemented:
Capital Outlay
Purchase of Printer and Laptop P 166,000.00
Purchase of Chairs and Tables 102,500.00
Purchase of Rescue Rubber Boat for Search and
Rescue Including Training Activity 1,600,000.00
P 1,868,500.00
Although, the purchase of one unit dump truck was authorized and provided with funds
amounting to P4,666,000.00 under the Municipality’s Resolution No. 2019-253 dated
August 20, 2019, it was not indicated therein which original projects/activities the
appropriation were taken to fund this purchase, while none was mentioned regarding the
aluminum divider.
Further audit also disclosed that a total of P166,106.29 was expended for the following
items which pertain directly to the operations of LDRRMO and not among the projects
and activities allowed to be charged to LDRRMF as enumerated in the NDRRMC-DBM-
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DILG JMC No. 2013-1:
Check
Number Date Particulars Amount
023232 10/29/2019 Furniture and Fixtures-Aluminum Divider at the
MDRRMO P 95,850.00
026825 12/5/2019 Office Supplies Expenses-MDRRMO 14,370.00
010550 6/10/2019 Repairs and Maintenance-Transportation Equipment 19,526.29
Total P 166,106.29
The low utilization of LDRRMF due to unimplemented/partially implemented projects and

improper utilization indicate that the objectives of enhancing the disaster preparedness
and response capabilities of the Municipality to reduce the disaster risks were not fully
attained.
This also signifies that the projects were not properly planned before they were included
in the MDRRMP and were not efficiently monitored to ensure implementation.
 On non-submission of Report on Sources and Utilization of DRRMF
Item 5.1.5 of COA Circular No. 2012-002 dated September 12, 2012 provides that, “A
Report on Sources and Utilization of DRRMF using the format in Annex B shall be
prepared and certified correct by the Local Accountant. The Local Disaster Risk
Reduction and Management Officer (LDRRMO) shall submit the report on or before 15 th
day after the end of each month through the LDRRMC and Local Development Council
(LDC) to the COA auditor of the LGU.”
COA Memorandum No. 2014-009 dated August 28, 2014 provides for the guidelines in
the audit of DRRMF.
Verification disclosed that only the year-end Report on Sources and Utilization of
LDRRMF for CY 2019 was submitted, contrary to the above-cited regulation, hence
precluded the Audit Team from conducting timely audit to determine if utilization of the
LDRRMF for the year was compliant with the guidelines set forth in COA Memorandum
No. 2014-009.
We recommended that the Municipal Mayor require the MDRRMO to:
a. carefully study the feasibility of the projects/activities before inclusion in the

MDRRMP to ensure its implementation in order for the Municipality to be
adequately prepared for any upcoming disaster/calamity and reduce its risk;
b. strictly comply the regulation regarding the proper utilization of DRRMF to

avoid audit disallowance; and
c. submit to the Audit Team the Monthly Report on the Sources and Utilization of
DRRMF on or before the 15th day after the end of each month.
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We further recommended that the Municipal Mayor require the Municipal DRRM
Council to submit to the Audit Team a copy of the Municipal Resolution which
provides funds for the purchase of aluminum divider, and the report/schedule
showing the source of funds for the purchase of dump truck and aluminum
divider.
In his letter dated July 16, 2020, the Municipal Mayor stated that it has always been the
goal of the Municipality to enhance its disaster preparedness and response capabilities
to reduce disaster risks which readily destroy properties and take human lives, thus all
actions were made in good faith and with full belief that these are geared towards the
accomplishment of said goal.
The low utilization of LDRRMF-MF may be attributed to the fact that there was an
election during CY 2019. Turnover of documents as well as functions happened during
this year. Current LDRRMO III assumed office only in August 2019. Prior to him, there
was no permanent LDRRM as the Municipality was restricted by the Personnel Services
(PS) limitations. Only designated municipal officials who had other duties were tasked to
perform the functions of the LDRRM officer in addition to their work. This may have
resulted to the “improper” appropriations as observed.
The expended appropriations under the LDRRMF-MF for CY 2019 amounting to

P4,695,850.00 were authorized under Sangguniang Bayan (SB) Resolution No. 2019-
253. This was supported with MDRRMC Resolution No. 2019-01, Series of 2019
indicating therein which original projects/activities these appropriations were taken.
The expenses in the amount of P166,106.29 were made in accordance with the
approved appropriation at that time. The amount was used to further enhance the
services of the LDRR office. It was not the intention of the officials of the Municipality to
undermine the rules but merely due to an honest mistake which was prompted by the
intention to enhance its disaster preparedness and response capabilities and to reduce
disaster risks.
It had been the practice in the Municipality that the Report on Sources and Utilization of
DRRMF are submitted quarterly. The same are being posted at three (3) conspicuous
places in the Municipality for purposes of transparency. The Municipality never aimed to
avoid timely audit. However, as recommended, the Municipality will ensure the
submission of the Monthly Report of the same on or before the 15th day after the end of
each month.
The Municipal Mayor also stated that he will ensure that the MDRRMO will carefully
consider projects/activities before its inclusion in the MDRRMP to ensure its orderly
implementation and that the Municipality is adequately prepared for possible
disasters/calamities.
The Municipal Mayor further stated that he will also remind the officials to strictly comply
with the regulation regarding the proper utilization of DRRM funds.
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Auditor’s Rejoinder
The Audit Team acknowledged the comments of the Municipal Mayor and stated that the
Audit Team will closely monitor the Municipality’s compliance with the audit
recommendations this year 2020.
E. Solid Waste Management
14. The Municipality still has no 10-Year Solid Waste Management Plan (SWMP)
because it was not yet approved by the National Solid Waste
Management Commission (NSWMC), and 35 of 46 barangays or 76.09 percent still
have no Materials Recovery Facility (MRF) due to lack of funds, contrary to
Republic Act (RA) No. 9003, hence the Municipality has no guide in implementing
its solid waste management system consistent with the National Solid Waste
Management Framework (NSWMF) and may result in negative impact on public
health and environment.
RA No. 9003 provides the following guidelines on Solid Waste Management:
Section The province, city or municipality, through its local solid waste
16 management boards, shall prepare its respective 10-year solid waste
management plans consistent with the National Solid Waste Management
Framework.
Section There shall be established a Materials Recovery Facility (MRF) in every

32 barangay or cluster of barangays. The facility shall be established in a
barangay-owned or leased land or any suitable open space to be
determined by the barangay through its Sanggunian. For this purpose, the
barangay or cluster of barangays shall allocate a certain parcel of land for
the MRF.
Review of pertinent documents submitted by the MENRO-Designate showed that the

Municipality had submitted a draft copy of its 10-Year SWMP to the NSWMC on April 28,
2016 for review. Interview with the MENRO-Designate disclosed that since this date, the
Municipality has neither received any communications from the NSWMC nor made a
written follow-up to the latter. As such, the Municipality has no guide in implementing
its solid waste management system consistent with the NSWMF.
It was further disclosed that 35 of 46 Barangays or 76.09 percent still have no MRF.
According to the MENRO-Designate, the concerned Punong Barangays always reason
out that no fund is yet available for the construction of MRF in their barangay.
Due to the absence of SWMP, validation of the implemented programs/projects of the

Municipality whether in accordance with the NSWMF was not facilitated. Further, the
non-maintenance of MRF by 35 barangays may result in negative impact on public
health and environment because more waste goes to landfill.
We recommended that the Municipal Mayor require the MENRO-Designate to

coordinate with the NSWMC regarding the status of review on the Municipality’s
10-Year SWMP in order to know the next steps to be undertaken that will facilitate
approval of the said Plan.
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We further recommended that the Municipal Mayor provide assistance for the
establishment of MRF in 35 barangays and intensify information campaign and
education in all barangays on the necessity of MRF to ensure protection of public
health and environment.
The Municipal Mayor stated in his letter dated July 30, 2020 that the copy of the
Municipality’s 10-year SWMP was submitted on 28 April 2016 to the Department of
Environment and Natural Resources-Environmental Management Bureau (DENR-EMB)
Central Office by the Municipal Planning and Development Coordinator (MPDC) for
approval. Sometime in August 2017, the MENRO-Designate personally made a follow
up to the DENR Central Office on the status of the submitted Plan wherein it was
informed that the Plan was pending review by the concerned personnel therein. As of
July 30, 2020, DENR-EMB has not informed the Municipality of their findings on said
Plan.
Due to the continuing changes in the waste accumulation in the Municipality, several
additional methods were effected to comply with RA No. 9003. The MRF in Barangay
Dahican was improved and a stricter implementation of the prohibition of single-use
plastic in the Municipality was strictly enforced. Thus, the MENRO-Designate initiated
the updating of the 10 –Year SWMP. In fact, she is currently working in the 4th chapter
of the same, Waste Analysis and Characterization Study, in anticipation of the possible
revisions that may occur.
Thus, it is humbly submitted that it is erroneous to say that the Municipality has no 10-
year Solid Waste Management Plan. This has been prepared, submitted and remains
valid until a disapproval is made by the Commission.
As regards the absence of MRF in 35 Barangays, the Municipal Mayor stated that the
Municipality has limited resources in the many undertakings geared to addressing Solid
Waste Management in the earlier years of strict compliance to RA 9003. Funds were
focused on the closure of the open dumpsite and the establishment of MRF and a
sanitary landfill pursuant to the provisions of the law. As such, funds were also limited
when it comes to provision and construction of MRFs among barangays. Nevertheless,
the Municipality managed to construct a total of 11 MRFs in various barangays funded
under the Municipal Development Fund (MDF) in 2016. In 2017, the Municipality
prioritized the allocation of fund under MDF for the construction of MRFs in various
barangays. Therefore, the number of barangays with constructed MRFs has gradually
increased over the years.
According to the MENRO-Designate, the previous report on the number of barangays

with MRF in the Municipality was based on the reports available on her file. However,
upon review of relative disbursements and other information in the Accounting Office
and as per inspection/validation made on 31 July 2020 and 01 August 2020 it was
revealed that there is a total of thirty-five barangays in the Municipality with functional
MRFs. The records of the MENRO-Designate was not updated. In addition, deficiencies
in the total number of MRFs in the previous report and that of the actual number during
the inspection was due to the failure of the concerned Barangay Secretaries to submit
85
MRF reports and updates to her office. This is despite her numerous reminders of the
necessity to construct the same during meetings and reminders via texts and calls.
Likewise, Intensified Education Campaigns (IECs) are continuously being conducted in

the Municipality to ensure protection of public health and environment.
We acknowledged the explanations of the Municipal Mayor however the Audit Team
maintained its observation that the Municipality still has no SWMP. Per letter of the
MPDC the submitted copy of SWMP to the DENR-EMB on April 28, 2016 was just a
draft copy, thus he was requesting for information/advice in order to know the next step
to do. The Audit Team gave its views that when a document is just a draft copy it could
be either replaced, updated or be totally dropped after review. Further, if a document
requires approval, it must be submitted for approval and be approved before it becomes
the active version of the document and be used as reference. As such, the
recommendation is also maintained.
F. Compliance with Tax Laws and Regulations
Tax laws and regulations were strictly observed by the Municipality. Collections due the
Bureau of Internal Revenue were regularly remitted.
G. Compliance with GSIS, PhilHealth and PAG-IBIG Laws and Regulations
The mandatory GSIS, PhilHealth and Pag-IBIG contributions and loan amortizations
were promptly and religiously remitted to the respective agencies.
H. Unsettled Audit Suspensions, Disallowances and Charges
As of December 31, 2019, the Municipality’s unsettled audit disallowances totaled

P2,100,252.16, as shown below, while none for audit suspensions and charges.
ND No
No. Date Nature Balance
13-001-100(12) 9/11/2013 Productivity Enhancement Incentive P1,690,000.00
2016-01 6/30/2016 Collective Negotiation Agreement 410,252.16
Total P2,100,252.16
I. Official Development Assistance (ODA) Fund
15. The Municipality awarded the contract for the implementation of the project
“Construction of San Isidro-Bolo-San Vicente Kanluran-San Vicente Silangan-Sta.
Maria Dao Farm to Market Road” on July 19, 2019 even without the duly approved
Implementation Management Agreement (IMA) between the Municipality and the
Department of Agriculture (DA)-Philippine Rural Development Project (PRDP) as
the IMA was made and entered into on September 19, 2019 only, contrary to
Section 5.01 of IMA No. IVA-2019-9-02. Moreover, this IMA which date is
September 19, 2019 was signed by the former Municipal Mayor whose term had
86
ended on July 1, 2019, thereby rendering the legality and validity of the IMA and
the implementation of the project questionable.
Section 5.01 of IMA No. IVA-2019-9-02 provides that, “[t]he MLGU shall start the
implementation of the Subproject, based on the schedule presented in Schedule 5
(Project Implementation Plan) hereof, immediately from the date of the effectivity of this
Agreement.”
Review of the above-mentioned Schedule 5 showed that the approval and signing of
IMA precedes the awarding of contract to the winning bidder.
Further, based on the process flow for the Intensified Building Up of Infrastructure and
Logistics for Development (I-BUILD) from DA-PRDP, the IMA and Certificate of
Availability of Fund (CAF) are required documents to secure the No Objection Letter No.
2 (NOL 2) which signals that the concerned local government unit may proceed with the
awarding of contract to the winning bidder.
As discussed in the immediately succeeding audit observation, the copy of Contract

Agreement pertaining to the project “Construction of San Isidro-Bolo-San Vicente
Kanluran-San Vicente Silangan-Sta Maria Dao Farm to Market Road” with contract
amount of P171,067,548.56 was submitted by the Municipality on December 6, 2019
and was reviewed by the Audit Team on December 11, 2019.
On January 9, 2020, the Municipality submitted to the Audit Team the various additional
supporting documents which the latter requested in its letter dated December 11, 2019,
including the IMA.
Upon review of the IMA it was disclosed that the date of its signing was September 19,
2019. Apparently, there was no valid agreement yet between the Municipality and the
DA-PRDP when the Contract was awarded to DQT Builders Corporation on July 19,
2019.
Further review also disclosed that the IMA which date is September 19, 2019 was
signed by former Municipal Mayor whose term had ended on July 1, 2019, in view of the
May 13, 2019 Election.
The aforementioned deficiencies rendered the legality and validity of the IMA and the
implementation of the said project questionable.
We recommended that the Municipal Mayor take the necessary action in order to
address the noted deficiencies that may possibly invalidate the IMA and the
Contract Agreement with the Contractor to avoid audit disallowances.
In his letter dated May 12, 2020, the Municipal Mayor explained that the IMA was signed
by then Municipal Mayor Atty. Almira Abella-Orfanel during her official term of office
which ended at noon of June 30, 2019, and that the date 19 September 2019 is the date
of notarization of the document and not the date the document was signed by the Mayor,
87
thus the contract of award for the implementation of the said project on July 19, 2019
was made with the duly approved IMA between the Municipality and the DA-PRDP.
The Audit Team acknowledged the Management’s explanation, however, it was

emphasized that the date 19 September 2019 is not only the date of notarization of IMA
but also appeared as the date it was signed by the former mayor because the copy of
IMA submitted to the Audit Team, particularly the first page, reads as follows:
“This Agreement is made and entered into this 19th day of Sept. 2019, at Quezon City,
Philippines, by and between:”, thus it was recommended that necessary action be taken
to correct the date 19 September 2019 appearing on the first page of IMA to avoid dual
interpretation.
16. The copy of Contract Agreement between the Municipal Government of

Catanauan, Quezon and DQT Builders Corporation for the project “Construction
of San Isidro-Bolo-San Vicente Kanluran-San Vicente Silangan-Sta. Maria Dao
Farm to Market Road” with a contract amount of P171,067,548.56, which was
approved and notarized on September 24, 2019, was submitted to the Audit Team
on December 6, 2019 or after the lapse of five working days, contrary to the
Commission on Audit (COA) Circular No. 2009-001, thereby prevented the Audit
Team from conducting timely auditorial review.
Item 3.1.1 of COA Circular No. 2009-001 dated February 12, 2009 provides that, “Within
five (5) working days from the execution of a contract by the government or any of its
subdivisions, agencies or instrumentalities, including government-owned and controlled
corporations and their subsidiaries, a copy of said contract and each of all the
documents forming part thereof by reference or incorporation shall be furnished to the
Auditor of the agency concerned. xxx.”
On December 6, 2019, the Municipality submitted the copy of Contract Agreement

pertaining to its project “Construction of San Isidro-Bolo-San Vicente Kanluran-San
Vicente Silangan-Sta Maria Dao Farm to Market Road” which it contracted with DQT
Builders Corporation in the amount of P171,067,548.56. This project is funded by the
Department of Agriculture under the Philippine Rural Development Project.
Upon review of said Contract Agreement on December 11, 2019, the Audit Team noted
that it was approved by the contracting parties on September 24, 2019, so that if the
above-cited COA regulation was followed, it should have been submitted to the Audit
Team on October 1, 2019.
The belated submission of the subject Contract Agreement and its supporting
documents had prevented the Audit Team from conducting timely review and to
immediately communicate the deficiencies noted.
We recommended that the Municipal Mayor direct the Bids and Awards Committee
(BAC) Chairman or Secretariat to strictly comply with the regulation on the
submission of copy of contract together with the supporting documents within
five working days from its approval to facilitate the conduct of auditorial review.
88
In his letter dated June 24, 2020, the Municipal Mayor apologized for the delayed
submission of the subject Contract Agreement and explained that it was due to various
supporting documents which they had to accomplish or acquire. He further stated that he
already instructed the BAC Chairman and Secretariat to strictly comply with the
regulation on the timely submission of copy of perfected contracts together with its
supporting documents.
89
STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATION
As of December 31, 2019
Of the 16 prior year’s audit recommendations embodied in the Calendar Year (CY) 2018 Annual Audit Report (AAR), one was fully
implemented, six were partially implemented, eight were not implemented by the Municipality and one was dropped.
Reason for
Management’s Status of Non/Partial
Reference Observation Recommendations
Action Implementation Implementation
CY 2018 AAR, 1. Thirteen lots titled in the We recommended that the
Observation name of the Municipality Municipal Mayor instruct the
No. 1, Page 50 were not recorded in the Municipal Assessor and
books, due to lack of Municipal Treasurer to:
coordination of the
Municipal Treasurer’s  facilitate the titling of the No action. Not Titling of land was
Office, Municipal lands owned by the Implemented still not facilitated.
Accounting Office and Municipality; Also, the
Municipal Assessor’s documents to
Office and absence of fair  exert effort to locate and No action. Not support the
market values, and seven secure the documents Implemented ownership were
lots included in the that will support the still not secured.
Schedule of Land Owned ownership for all the lots
by the Municipality were owned by the Municipality; Reiterated under
not titled in the name of Audit Observation
the Municipality due to  review and reconcile their No action. Not No. 3, Page 56.
absence of valid records of inventory and Implemented
supporting documents to schedules of land and
support the titling, verify the ownership of
contrary to Sections 112 each lots; and
and 39(2) of Presidential
Decree (PD) No. 1445,  coordinate with the No action. Not
Paragraphs 26 and 27 of Municipal Accountant for Implemented
Philippine Public Sector the recording of all the lots
Accounting Standards owned by the Municipality.
(PPSAS) 17 - Property,
Plant and Equipment and
90
Section 148 of
Commission on Audit
(COA) Circular No. 92-
386, thus understating the
Land account by
undetermined amount and
exposing the subject lots
to third party claims which
could be detrimental to
the government in terms
of litigation costs.
CY 2018 AAR, 2. The existence and We reiterated our

Observation valuation of the Property, recommendation that the
No. 2, Page 51 Plant and Equipment Municipal Mayor require
(PPE) with a net book the:
value of P304,984,191.59
could not be ascertained  Inventory Committee to No action. Not No inventory
due to non-completion of complete the physical Implemented reports were
the physical inventory inventory of all property of submitted. Also,
during the year as well as the Municipality and property cards
non-preparation and non- prepare and submit were incomplete.
maintenance of property immediately the pertinent
cards and subsidiary inventory reports; Reiterated under
ledgers for each category Audit Observation
of PPE, contrary to  Municipal General No action. Not No. 2, Page 52 .
Sections 124 and 114 of Services Officer (MGSO) Implemented
the Manual on the New to prepare and maintain
Government Accounting complete and updated
System (MNGAS), property cards; and
Volume I.
 MGSO and Municipal No action. Not
Accountant to reconcile Implemented
their records regularly.
91
CY 2018 AAR, 3. Fully-depreciated and We reiterated our
Observation unserviceable properties recommendation that the
No. 3, Page 53 with residual value Municipal Mayor instruct the
totaling P1,664,210.39 MGSO to:
were not yet disposed of
due to non-preparation of  prepare the updated Submitted the Partially Various
the Inventory and physical inventory of the IIRUP. Implemented deficiencies were
Inspection Report of unserviceable properties noted from the
Unserviceable Property of the Municipality; submitted IIRUP
(IIRUP) by the designated and from
Property Custodian as  prepare and submit the Submitted the Fully disposal
required under Section 79 IIRUP as part of the IIRUP. Implemented procedures.
of PD No. 1445 and disposal procedures; and
Section 125, Chapter 7, Reiterated under
Volume I of the MNGAS,  dispose the unserviceable The Municipality Partially Audit Observation
thereby depriving the properties in accordance disposed the Implemented No. 8, Page 70.
Municipality of the with the steps and unserviceable
possible additional procedures enumerated properties.
income that can be under Section 79 of PD
derived therefrom. No. 1445 to generate
additional income out of
the proceeds from the
sale thereof.
CY 2018 AAR, 4. Real Property Tax We recommended that the Properties were Partially A huge amount of
Observation Delinquencies were Municipal Mayor require the subjected for Implemented real property
No. 4, Page 54 accumulated at a total Municipal Treasurer to public auction. taxes is still not
amount of continue exerting extra collected.
P83,031,156.05 at year- effort and adopt the
end, due to lack of full remedies to enforce Reiterated under
enforcement of statutory collection of delinquent real Audit Observation
remedies for the collection property taxes in No. 1, Page 50 .
of delinquent accounts by accordance with RA No.
the Municipal Treasurer’s 7160.
Office, as provided under
Sections 247, 256, 258
92
and 260 of Republic Act
(RA) No. 7160, thus the
Municipality stands to lose
potential revenues which
could have been utilized
for its development
programs and projects.
CY 2018 AAR, 5. Receivables from officers We reiterated our

Observation and employees totaling recommendation that the
No. 5, Page 55 P106,758.45 representing Municipal Mayor:
Municipal funds utilized
for payment of  require the concerned Loans Partially The remaining
employees’ personal loan officials and employees to receivable Implemented loans receivable
with the Land Bank of the settle immediately the totaling totaling
Philippines - Mulanay amount collectible from P27,999.94 was P78,838.69
Branch, the amortizations them; collected. (adjusted balance
of which were not of P106,838.63
deducted from payrolls less P27,999.94)
and which were remain
automatically debited from uncollected.
the depository account
maintained by the  require the Municipal Dropped Debtors are
Municipality in the same Treasurer to deduct the former
bank, were not fully amount of P106,758.45 employees of the
settled at year-end, from the salaries or Municipality and
contrary to Section 2 of whatever amount payable no any money is
PD No. 1445 and Section to the officers and due to them.
305 of RA No. 7160. employees; and
 in case of non-settlement No action. Not The Municipal

of the amount, file Implemented Mayor requested
appropriate charges for authority from
against the officers and the Sangguniang
employees. Bayan to file a
request to COA
93
for the write off of
the remaining
receivables.
Reiterated under
Audit Observation
No. 5, Page 60.
CY 2018 AAR, 6. Of the P47,752,000.00 We reiterated our Various Partially Six out of nine
Observation appropriated for recommendation that the development Implemented development
No. 6, Page 57 development projects Municipal Mayor, thru the projects were projects
funded from the 20 offices concerned, establish implemented. continued from
percent Development proper coordination in the CYs 2017 and
Fund (DF), implementation and 2018 were still
P27,604,089.63 or 57.8 monitoring of the projects not implemented
percent was utilized for under the 20 percent DF in during CY 2019.
CY 2018, contrary to order to enhance the rate of
Section 5 of Department implementation and ensure Reiterated under
of the Interior and Local that benefits are delivered Audit Observation
Government (DILG) - to the constituents of the No. 12, Page 77.
Department of Budget Municipality.
and Management (DBM)
Joint Memorandum
Circular (JMC) No. 2017-1
dated February 22, 2017,
thus depriving the
constituents of the
Municipality of the
benefits of completed
projects to which these
funds had been originally
intended.
CY 2018 AAR, 7. The amount appropriated We recommended that the Various GAD Partially GAD budget
Observation for Gender and Municipal Mayor instruct the projects were Implemented totaling
No. 7, Page 58 Development (GAD) GAD Focal Person to implemented. P3,511,977.80
94
programs, projects and maximize the utilization of was not utilized.
activities in CY 2018 was the GAD funds through the
not fully utilized, leaving implementation of GAD Reiterated under
an unexpended balance related programs and Audit Observation
of P5,933,709.15 at year- projects in order to attain No. 11, Page 75.
end, due to non- the objective for which
prioritization of other GAD funds were provided in
programs, projects and accordance with RA No.
activities, contrary to 9710 or the MCW and
Section 36(a) of RA 9710 PCW-DILG-DBM-NEDA
or the Magna Carta of JMC No. 2013-01, as
Women (MCW) and amended by PCW-DILG-
Philippine Commission on DBM-NEDA JMC No. 2016-
Women (PCW) – 01 dated January 12, 2016.
Department of the Interior
and Local Government
(DILG) – Department of
Budget and Management
(DBM) – National
Economic Development
Authority (NEDA) JMC
No. 2013-01, as amended
by PCW-DILG-DBM-
NEDA JMC No. 2016-01
dated January 12, 2016,
thus defeating the intent
of the program to pursue
women’s empowerment
and gender equality.
95
Appendix 1
Part I, Page 5

STATEMENT OF FINANCIAL POSITION (BY FUND)
Special
Education
ASSETS Total General Fund Fund Trust Fund
Current Assets
Cash and Cash Equivalents P 192,843,019.49 P 110,580,603.74 P 2,795,646.13 P 79,466,769.62
Receivables 125,649,206.47 58,404,935.46 62,201,785.76 5,042,485.25
Inventories 2,947,015.39 2,947,015.39 0.00 0.00
Prepayments and Deferred Charges 21,462,462.49 583.63 0.00 21,461,878.86
Total Current Assets 342,901,703.84 171,933,138.22 64,997,431.89 105,971,133.73
Non-Current Assets
Property, Plant and Equipment 464,077,072.50 437,778,902.30 6,773,567.09 19,524,603.11
Biological Assets 296,000.00 296,000.00 0.00 0.00
Intangible Assets 1,779,008.00 1,779,008.00 0.00 0.00
Total Non-Current Assets 466,152,080.50 439,853,910.30 6,773,567.09 19,524,603.11
TOTAL ASSETS 809,053,784.34 611,787,048.52 71,770,998.98 125,495,736.84
LIABILITIES
Current Liabilities
Financial Liabilities 13,956,801.55 13,468,247.38 453,158.55 35,395.62
Inter-Agency Payables 85,410,717.77 4,654,978.77 484,843.25 80,270,895.75
Intra-Agency Payables 9,285,897.50 4,965,140.25 0.00 4,320,757.25
Trust Liabilities 22,142,509.94 729,184.58 9,562.25 21,403,763.11
Deferred Credits/Unearned Income 116,604,580.96 54,400,790.77 62,201,785.76 2,004.43
Other Payables 21,141,075.04 1,533,635.53 144,518.83 19,462,920.68
Total Current Liabilities 268,541,582.76 79,751,977.28 63,293,868.64 125,495,736.84
Financial Liabilities 112,236,062.51 112,236,062.51 0.00 0.00
TOTAL LIABILITIES 380,777,645.27 191,988,039.79 63,293,868.64 125,495,736.84
NET ASSETS/EQUITY
Government Equity 428,276,139.07 419,799,008.73 8,477,130.34 0.00
TOTAL LIABILITIES AND NET
ASSETS/EQUITY P 809,053,784.34 P 611,787,048.52 P 71,770,998.98 P 125,495,736.84
Appendix 2
Part I, Page 6

STATEMENT OF FINANCIAL PERFORMANCE (BY FUND)
Special
Education
Total General Fund Fund
REVENUE
Tax Revenue P 17,020,255.86 P 14,165,089.26 P 2,855,166.60
Share from Internal Revenue Collections 190,822,529.00 190,822,529.00 0.00
Service and Business Income 13,342,448.97 13,338,204.66 4,244.31
Other Income 50,325.00 50,325.00 0.00
TOTAL REVENUE 221,235,558.83 218,376,147.92 2,859,410.91
Less: Current Operating Expenses

Personnel Services 79,909,381.93 79,909,381.93 0.00
Maintenance and Other Operating Expenses 66,156,899.03 63,426,974.41 2,729,924.62
Financial Expenses 4,443,682.65 4,443,682.65 0.00
Non-Cash Expenses 23,139,801.65 22,913,163.81 226,637.84
Total Current Operating Expenses 173,649,765.26 170,693,202.80 2,956,562.46
SURPLUS FROM CURRENT OPERATION 47,585,793.57 47,682,945.12 (97,151.55)
Add:
Gain on Sale of Property, Plant and
Equipment 21,807.00 21,807.00 0.00
Less:
Transfers, Assistance and Subsidy to 11,217,960.15 11,217,960.15 0.00
Loss on Sale of Property, Plant and
Equipment 1,543,063.36 1,484,250.97 58,812.39
SURPLUS FOR THE PERIOD P 34,846,577.06 P 35,002,541.00 P (155,963.94)
Appendix 3
Part I, Page 7

STATEMENT OF CHANGES IN NET ASSETS/EQUITY (BY FUND)
Special
Education
Total General Fund Fund
Balance at January 1, 2019 P 389,650,534.40 P 381,017,440.12 P 8,633,094.28
Add (Deduct):
Change in Accounting Policy 13,773,521.73 13,773,521.73 0.00
Prior Period Errors (9,994,494.12) (9,994,494.12) 0.00
Restated Balance 393,429,562.01 384,796,467.73 8,633,094.28
Add: Changes in Net Assets/Equity
During the Period
Surplus for the Period 34,846,577.06 35,002,541.00 (155,963.94)
Balance at December 31, 2019 P 428,276,139.07 P 419,799,008.73 P 8,477,130.34
Appendix 4
Part I, Page 8

STATEMENT OF CASH FLOWS (BY FUND)
Special
Education
Total General Fund Fund Trust Fund
Cash Flows From Operating Activities
Cash Inflows
Collection from Taxpayers P 17,020,255.86 P 14,165,089.26 P 2,855,166.60 P 0.00
Share from Internal Revenue Allotment 190,822,529.00 190,822,529.00 0.00 0.00
Interest Income 274,159.63 269,915.32 4,244.31 0.00
Other Receipts 77,252,534.33 21,108,779.07 233,351.69 55,910,403.57
Total Cash Inflows 285,369,478.82 226,366,312.65 3,092,762.60 55,910,403.57
Cash Outflows
Payments to:
Suppliers and Creditors 56,430,109.37 53,701,033.62 2,729,075.75 0.00
Employees 79,909,381.93 79,909,381.93 0.00 0.00
Interest Expenses 4,443,682.65 4,443,682.65 0.00 0.00
Other Payments 60,473,744.74 38,286,640.63 457,364.49 21,729,739.62
Total Cash Outflows 201,256,918.69 176,340,738.83 3,186,440.24 21,729,739.62
Net Cash Flows from Operating Activities 84,112,560.13 50,025,573.82 (93,677.64) 34,180,663.95
Cash Flows From Investing Activities
Cash Outflow
Purchase of Property, Plant and Equipment
and Public Infrastructures 60,120,325.02 41,289,213.92 951,325.00 17,879,786.10
Net Cash Flows from Investing Activities (60,120,325.02) (41,289,213.92) (951,325.00) (17,879,786.10)
Cash Outflow
Payment of Loan Amortization 9,267,485.15 9,267,485.15 0.00 0.00
Net Cash Flows from Financing Activities (9,267,485.15) (9,267,485.15) 0.00 0.00
Total Cash Provided by Operating, Investing
and Investing Activities 14,724,749.96 (531,125.25) (1,045,002.64) 16,300,877.85
Add: Cash at the Beginning of the Year 178,118,269.53 111,111,728.99 3,840,648.77 63,165,891.77
Cash Balance at the End of the Year P 192,843,019.49 P 110,580,603.74 P 2,795,646.13 P 79,466,769.62
Appendix 5
Part II, Page 51

SCHEDULE OF REAL PROPERTY TAX DELINQUENCIES
Unpaid Taxes Total Tax

Barangay Assessed Value
Delinquency
Basic SEF Penalty
1 Poblacion 01 620,830.00 86,683.40 86,683.40 112,568.54 285,935.34
2 Poblacion 02 463,870.00 79,673.30 79,673.30 105,413.71 264,760.31
3 Poblacion 03 779,570.00 64,853.60 64,853.60 82,899.79 212,606.99
4 Poblacion 04 780,070.00 58,930.60 58,930.60 74,122.56 191,983.76
5 Poblacion 05 707,390.00 71,017.60 71,017.60 87,540.05 229,575.25
6 Poblacion 06 752,630.00 49,150.10 49,150.10 59,877.36 158,177.56
7 Poblacion 07 2,118,660.00 199,555.40 199,555.40 250,492.27 649,603.07
8 Poblacion 08 2,010,490.00 195,135.60 195,135.60 249,992.76 640,263.96
9 Poblacion 09 3,686,040.00 306,620.35 306,620.35 374,353.44 987,594.14
10 Poblacion 10 3,791,280.00 529,844.10 529,844.10 698,818.94 1,758,507.14
11 Ajos 2,549,260.00 437,118.60 437,118.60 565,746.29 1,439,983.49
12 Anusan 2,507,000.00 482,601.40 482,601.40 634,224.96 1,599,427.76
13 Bolo 2,707,920.00 411,386.23 411,386.23 542,932.40 1,365,704.85
14 Bulagsong 1,836,400.00 306,860.83 306,860.83 401,722.26 1,015,443.91
15 Camandiison 3,196,900.00 729,463.48 729,463.48 961,903.12 2,420,830.07
16 Canculajao 6,150,820.00 1,154,699.20 1,154,699.20 1,517,726.15 3,827,124.55
17 Catumbo 2,590,700.00 251,234.50 251,234.50 323,533.25 826,002.25
18 Cawayanin ibaba 2,969,720.00 558,941.35 558,941.35 734,772.70 1,852,655.40
19 Cawayanin ilaya 1,719,400.00 276,424.50 276,424.50 357,873.84 910,722.84
20 Cutcutan 2,813,530.00 453,493.98 453,493.98 596,522.63 1,503,510.58
21 Dahican 1,387,770.00 286,880.50 286,880.50 382,329.17 956,090.17
22 Doongan ibaba 7,592,830.00 1,627,258.60 1,627,258.60 2,156,543.57 5,411,060.77
23 Doongan ilaya 3,853,780.00 732,449.60 732,449.60 977,318.26 2,442,217.46
24 Gatasan 918,040.00 99,894.70 99,894.70 129,048.24 328,837.64
25 Macpac 573,310.00 77,686.09 77,686.09 101,675.61 257,047.79
26 Madulao 10,847,510.00 1,548,975.97 1,548,975.97 2,033,431.35 5,131,383.29
27 Matandang Sabang
Kanluran 2,899,561.00 533,305.74 533,305.74 700,520.93 1,767,132.40
28 Matandang Sabang
Silangan 6,447,011.00 471,939.69 471,939.69 574,234.96 1,518,114.33
29 Milagrosa 2,929,520.00 574,169.10 574,169.10 771,591.01 1,919,929.21
30 Navitas 4,093,520.00 763,868.90 763,868.90 1,009,358.83 2,537,096.63
31 Pacabit 4,818,492.00 744,406.87 744,406.87 982,952.19 2,471,765.93
32 San Antonio Magcopa 3,850,381.00 722,327.39 722,327.39 963,543.47 2,408,198.24
33 San Antonio Pala 588,720.00 67,461.35 67,461.35 88,935.05 223,857.75
34 San Isidro 4,226,126.00 353,268.01 353,268.01 452,294.45 1,158,830.47
35 San Jose Anyao 276,381.00 9,436.41 9,436.41 10,175.48 29,048.30
36 San Pablo Suha 5,249,962.00 1,010,575.15 1,010,575.15 1,346,505.76 3,367,656.05
37 San Roque 8,900,581.00 1,723,036.85 1,723,036.85 2,277,989.33 5,724,063.02
38 San Vicente Kanluran 8,174,891.00 1,740,648.21 1,740,648.21 2,316,067.13 5,797,363.55
39 San Vicente Silangan 4,484,981.00 965,992.16 965,992.16 1,275,407.69 3,207,392.01
40 Sta. Maria Dao 3,258,000.00 685,697.05 685,697.05 912,088.54 2,283,482.64
Unpaid Taxes Total Tax
Barangay Assessed Value
Delinquency
Basic SEF Penalty
41 Tagabas Ibaba 2,556,570.00 398,640.90 398,640.90 523,007.30 1,320,289.10
42 Tagabas Ilaya 5,017,360.00 1,106,938.05 1,106,938.05 1,467,007.25 3,680,883.35
43 Tagbacan Ibaba 4,221,030.00 701,406.58 701,406.58 921,389.82 2,324,202.97
44 Tagbacan Ilaya 3,159,250.00 722,604.85 722,604.85 955,591.66 2,400,801.36
45 Tagbacan Silangan 4,753,820.00 956,685.55 956,685.55 1,255,137.48 3,168,508.58
46 Tuhian 424,840.00 32,184.70 32,184.70 40,126.66 104,496.06
Total 150,256,717.00 25,361,427.04 25,361,427.04 33,357,308.20 84,080,162.28
Appendix 6
Part II, Page 57

SCHEDULE OF LAND OWNED BY THE MUNICIPALITY
Calendar Year 2019
Address/ Recorded Unrecorded

Location (at acquisition (Assessed
Title No. Declared Owner Lot Type/Actual Use (Barangay) cost) Value) Untitled Remarks
Recorded in the books
1 Not Provided Barangay Hall Site Gatasan 130,000.00 130,000.00 For titling
2 T-414329 LGU Catanauan New Cemetery Site Poblacion 09 2,000,000.00
3 T-521407 LGU Catanauan Housing (National Food Authortity) Madulao 60,000.00 No copy of title
4 T-501138 LGU Catanauan Access Road to Market Poblacion 08 90,000.00
5 T-448249 LGU Catanauan Materials Recovery Site Dahican 227,674.07 No copy of title
6 T-066-2016006327 LGU Catanauan Slaughter Site San Antonio Pala 857,682.53
7 Not Provided SLSU Site San Antonio Pala 10,880,000.00 10,880,000.00 For titling
8 Not Provided Sanitary Landfill Dahican 1,620,000.00 1,620,000.00 For titling
15,865,356.60 - 12,630,000.00
Unrecorded but with copy of title
1 T-372153 LGU Catanauan New Municipal Building Poblacion 09 149,630.00
2 T-472797 LGU Catanauan New Public Market Site Madulao 45,440.00
5 T-473183 LGU Catanauan Road Lot Going to Market Madulao 10,280.00
6 T-473182 LGU Catanauan Access Road to Market Madulao 30,490.00
7 T-469227 LGU Catanauan Public Market/Gawad Kalinga Madulao 198,350.00
8 T-462311 LGU Catanauan Pathway Not Provided No tax declaration
9 T-462309 LGU Catanauan Old Municipal Building Not Provided No tax declaration
10 OCT - 3614 LGU Catanauan Central School Not Provided No tax declaration
- 669,370.00 -
Unrecorded and without copy of title
1 T-183 LGU Catanauan Municipal Trial Court Building Site Poblacion 02 23,020.00
2 T-371590 LGU Catanauan Rural Health Unit Building Site Poblacion 09 8,290.00
3 T-437736 LGU Catanauan Training Center Site (PARUDEV) Poblacion 09 58,300.00
4 T-414330 LGU Catanauan New Cemetery Site Poblacion 09 179,800
- 269,410.00 -
Address/ Recorded Unrecorded
Location (at acquisition (Assessed
Title No. Declared Owner Lot Type/Actual Use (Barangay) cost) Value) Untitled Remarks
Unrecorded and untitled

1 LGU Catanauan Old Municipal Building and Covered Poblacion 05 16,800.00 16,800.00 With tax declaration
Site
2 LGU Catanauan PNP Pathwalk Site Poblacion 05 1,130.00 1,130.00 With tax declaration
3 LGU Catanauan School Site Poblacion 09 403,280.00 403,280.00 With tax declaration
4 Manuel Uy Ek Liong Jr. et al Fish Landing Project Site Matandang -
Sabang Kanluran With Deed of Donation,
5 Antonio Abadilla Gawad Kalinga Not Provided - not yet declared to LGU
- 421,210.00 421,210.00
Total 15,865,356.60 1,359,990.00 13,051,210.00
Appendix 7
Part II, Page 59
Municipality of Catanuan, Quezon

SCHEDULE OF GUARANTY/SECURITY DEPOSITS PAYABLE
Years
Date Payee Amount Outstanding
General Fund
5/10/2011 N-Bel Computer Printshop P 435.00 > 8 years
6/1/2011 Mariel Machineries, Inc. 7,810.00 > 8 years
7/4/2011 Lianca Trading 495.00 > 7 years
1/24/2012 RQR Marketing 1,400.00 > 7 years
2/1/2012 Amtes Commercial and General Merchandise 2,400.00 > 7 years
3/26/2012 Amtes Commercial and General Merchandise 500.00 > 6 years
9/18/2012 Amtes Commercial and General Merchandise 300.00 > 6 years
9/25/2012 Neswood Furniture 381.60 > 6 years
7/2/2014 ALRC Chat Computer Sales and Services 1,415.00 > 4 years
9/23/2014 Unknown Payee 2,100.00 > 4 years
11/7/2014 Josh and JM Aluminum and Construction Supply 1,980.00 > 4 years
2/10/2015 Afield Consulting Incoporated 9,900.00 > 4 years
5/6/2015 Octego IT Solution 3,500.00 > 4 years
5/6/2015 Woper Link Enterprises 3,500.00 > 4 years
6/30/2015 Octego IT Solution 4,800.00 4 years
8/20/2015 Reyestan Trading and Gen. Mdse 9,407.30 > 3 years
10/12/2015 Five Eight Aluminum Glass Supply 2,500.00 > 3 years
11/2/2015 ALRC Chat Computer Sales and Services 1,150.00 > 3 years
11/12/2015 N-Bel Computer Printshop 1,468.00 > 3 years
11/19/2015 MCRE General Merchandise 2,000.00 > 3 years
11/19/2015 MCRE General Merchandise 600.00 > 3 years
12/18/2015 Susan Recarro Construction Supply 6,282.00 > 3 years
12/22/2015 Josh and JM Aluminum and Construction Supply 520.00 > 3 years
6/7/2016 Afield Consulting Inc. 177,900.80 > 2 years
9/19/2016 N-Bel Computer Printshop 700.00 > 2 years
11/7/2016 JAAP General Merchandise 225.00 > 2 years
11/22/2016 Lianca Trading 1,162.50 > 2 years
12/14/2016 ALRC Chat Computer Sales and Services 297.50 > 2 years
12/22/2016 Slink Trading 4,491.45 > 2 years
12/22/2016 Josh and JM Aluminum and Construction Supply 465.00 > 2 years
6/1/2017 JAAP General Merchandise 542.50 > 2 years
6/29/2017 R-minimart General and Merchandise 596.25 > 2 years
6/29/2017 R-minimart General and Merchandise 1,203.15 > 2 years
TRUST FUND
1/4/2011 Collection 3,000.00 > 8 years
6/16/2011 Collection 500.00 > 8 years
10/24/2011 Nikulo's Computer Sales and Services 4,000.00 > 7 years
1/30/2013 Mellmar Enterprise 2,590.00 > 5 years
2/13/2014 Nikulo's Computer Sales and Services 4,300.00 > 4 years
4/28/2015 Woper Link Enterprises 8,550.00 > 3 years
4/28/2015 R-minimart General and Merchandise 14,544.00 > 3 years
5/16/2016 Eddie Arellano 2,500.00 > 2 years
11/29/2016 JSP Construction 5,000.00 > 2 years
11/29/2016 DQT Buiilders 5,000.00 > 2 years
Total Guaranty/Security Deposits Payable P 516,044.21
Appendix 8
Part II, Page 65
PROCUREMENTS WITH INCOMPLETE SUPPORTING DOCUMENTS
Calendar Year 2019
Check Contract Unsubmitted Supporting Documents (x)

Payee Particulars Number Date Amount Net Amount 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Infrastructure
JSP Construction Rehabilitation (Reblocking of
Municipal Road) Barangays 8 and 9 6201 2/20/2019 P 2,997,494.31 P 2,836,914.26 O O O O O O O
Reblocking of Municipal Road,
Barangay 8 26644 11/18/2019 1,963,360.76 1,840,650.72 O O O O O O O
Construction of Local Access Road
along Barangay Tagbacan Silangan to
San Jose Anyao
First Billing 6545 4/16/2019 13,686,241.73 7,218,364.77 O O O O
Final Billing 6592 8/1/2019 5,612,486.85 O
Rehabilitation (Reblocking) of
Municipal Road along Nabatasan
Street 6210 6/28/2019 518,388.50 485,989.22 O O O O O O O O
Concreting of Local Road (FMR)
Barangay Milagrosa 6211 6/28/2019 998,081.58 935,701.48 O O O O O O
Concreting of Local Rod, Barangay
San Roque 6212 6/28/2019 997,389.53 935,052.68 O O O O O O
Concreting of Local Road (FMR)with
4m width and 200m thick, Barangay
Anusan 6215 6/28/2019 997,861.25 935,494.92 O O O O O O
Concreting of Local Road, Catanauan
Central School 6221 6/28/2019 948,513.40 889,231.31 O O O O O O O
DQT Builders Construction of Lined Canal, 6222 7/17/2019 1,697,763.56 1,591,653.33 O O O O O O O O
Corporation Barangays 8 and 9
Concreting of Local Road FMR,
Barangay Canculajao 6213 6/28/2019 999,725.07 953,367.25 O O O O O O
Concreting of Local Road (FMR) with
4M and 200m thick, Barangay 6214 6/28/2019 997,789.46 935,427.62 O O O O O O O O
Concreting of Local Road (FMR) with
4m thick and 200m, Barangay
Cawayanin Ilaya 6217 6/28/2019 997,926.67 935,556.25 O O O O O O O O
Barangay Bulagsong 6218 6/28/2019 997,980.67 935,606.88 O O O O O O O
Barangay San Antonio Magcopa 6219 6/28/2019 998,015.91 935,636.91 O O O O O O
Documentary Requirements-
Concreting of Local Road (FMR),
Barangay Camandiison 6220 6/28/2019 997,959.07 935,586.63 O O O O O O O
Check Contract Unsubmitted Supporting Documents (x)
Payee Particulars Number Date Amount Net Amount 1 2 3 4 5 6 7 8 9 10 11 12 13 14
RTY Construction Construction of Road Opening,
Barangay Sta. Maria 6207 6/28/2019 997,573.65 935,225.29 O O O O O O O
Barangay Doongan Ibaba 6208 6/28/2019 998,025.33 935,648.75 O O O O O O
L.A. Clamor Concreting of Local FMR Barangay
Construction Tagbacan Ibaba 6206 6/28/2019 997,345.78 935,011.66 O O O O O O O O
Construction of Local Road, Barangay
Madulao 6216 6/28/2019 997,325.39 934,992.55 O O O O O O O O O
P.Y Lacorte Builders Regravelling of Madulao FMR (Public
Market) 6209 6/28/2019 998,388.38 935,989.11 O O O O O O O O
Partial Construction of Sanitary
Landfill, Barangay Dahican 22589 8/14/2019 2,493,296.33 2,337,465.31 O O O O O
Construction of FMR, Barangay Bolo 26648 11/18/2019 498,096.46 466,965.43 O O O O O O O
Goods
Lovi Motors
Corporation Supply and Delivery of Dump Truck 26963 12/14/2019 4,600,000.00 4,307,571.43 O O
New Tanchuan Supply and Delivery of Materials O O O O O
Lumber and (Aggregates) for the Rehabilitation of
Hardware FMR of various Barangays 10633 6/18/2019 4,295,255.90 4,065,152.90
Consulting
Geoinfometrics Consulting Services for the Updating
Solutions Co. of Comprehensive Land Use Plan
First Blling 10611 6/18/2019 2,173,500.00 637,107.18 O O
Final Billing 22814 9/13/2019 1,001,168.43
Total P 46,405,019.12
Legend
1 Approved Annual Procurement Plan
2 Approved Budget for the Contract
3 Construction Safety and Health Program approved by DOLE
4 Site Development Plan
5 Minutes of Pre-Bid Conference
6 Minutes of Pre-procurement Conference
7 Omnibus Sworn Statement by the prospective bidder
8 Program Evaluation and Review Technique/Critical Path Method
9 Certification from the Head of BAC Secretariat on the posting of advertisement at conspicuous places
10 Bid Evaluation Report
11 Inspection Report by the Agency’s Authorized Engineer
12 Pictures taken before, during and after the construction
13 Contractor’s Affidavit on payment of laborers and materials
14 Office Order authorizing the signing official to sign/approve the DV
Appendix 9
Part II, Page 66

PROCUREMENTS WITH INCOMPLETE INVITATION TO OBSERVERS
Calendar Year 2019
Relevant Non-
Commission Private Government
Projects on Audit Group Organization
Reblocking of Municipal Road, Barangay 8 and 9 √ x x
Reblocking of Municipal Road, Barangay 8 √ x √
Construction of Local Access Road along Barangay
√ x √
Tagbacan Silangan to Barangay San Jose Anyao
Rehabilitation (Reblocking) of Municipal Road along
√ x √
Nabatasan Street
Concreting of Local Road, Farm to Market Road (FMR),
√ x √
Barangay Milagrosa
Concreting of Local Road, Barangay San Roque √ x √
Concreting of Local Road (FMR) with 4m width and
√ x √
200m thick, Barangay Anusan
Concreting of Local Road, Catanauan Central School √ x √
Construction of Lined Canal, Barangays 8 and 9 √ x x
√ x √
Barangay Canculajao
Concreting of Local Road (FMR) with 4M and 200m
√ x √
thick, Barangay Dahican
Concreting of Local Road (FMR) with 4m thick and
√ x √
200m, Barangay Cawayanin Ilaya
Concreting of Local Road (FMR) Barangay Bulagsong √ x √
√ x √
Barangay San Antonio Magcopa
Concreting of Local Road (FMR), Barangay √ x √
Construction of Road Opening, Barangay Sta. Maria √ x √
√ x √
Barangay Doongan Ibaba
Concreting of Local (FMR) Barangay Tagbacan Ibaba √ x √
Construction of Local Road (FMR), Barangay Madulao √ x √
Construction of FMR, Barangay Bolo √ x √
Regravelling of Madulao FMR (Public Market) √ x √
Partial Construction of Sanitary Landfill,
√ x x
Barangay Dahican
Supply and Delivery of Dump Truck √ x √
Supply and Delivery of Materials (Aggregates) for the
√ x √
Rehabilitation of FMR of various Barangays
Consulting Services for the Updating of Comprehensive
√ x x
Land Use Plan (CLUP)
Appendix 10
Part II, Page 71

Schedule Of Disposed Property, Plant And Equipment
Calendar Year 2019
Total Accumulated Carrying

Date Acquired Particulars/ Articles Cost Depreciation Amount
PPE WITH DETAILS
POWER SUPPLY SYSTEM
Jan-05 Distribution Transformer, 75 KVA 90,500.00 90,013.56 486.44
Apr-05 Street Lights - 7 sets 27,930.00 27,748.47 181.53
May-05 Duplex Wire 25,800.00 25,622.62 177.38
May-05 Duplex Wire 19,998.00 19,860.55 137.45
Aug-05 Electrification - Labor 3,500.00 3,472.00 28.00
Dec-05 Duplex Wire 16,115.00 15,961.90 153.10
Jun-06 Duplex Wire 29,815.50 29,465.17 350.33
OFFICE EQUIPMENT
Feb-99 Manual Typewriter 50,985.00 48,435.75 2,549.25
May-00 VCR 7,300.00 6,570.00 730.00
May-00 Colored TV 19,800.00 17,820.00 1,980.00
Dec-00 Typewriter 24,908.00 23,662.60 1,245.40
Feb-01 Typewriter 15” Carriage 13,499.00 12,149.10 1,349.90
Jun-01 Typewriter 41,695.00 39,610.25 2,084.75
Mar-03 Typewriter 18" 19,800.00 18,810.00 990.00
May-03 Electric Typewriter 23,000.00 21,850.00 1,150.00
Jun-03 Typewriter 18" 19,492.00 18,517.40 974.60
Jun-03 Typewriter 19,492.00 18,517.40 974.60
Jul-03 Typewriter 24" 27,000.00 25,650.00 1,350.00
Aug-03 Typewriter 24" 23,764.00 22,575.80 1,188.20
Dec-03 Typewriter 24" 28,800.00 27,360.00 1,440.00
Mar-04 Fax Machine 12,000.00 10,800.00 1,200.00
Mar-04 Typewriter 18” Carriage 20,750.00 18,675.00 2,075.00
Nov-04 Marigold Table 775.00 697.50 77.50
Nov-04 Plastic Chairs 1,000.00 900.00 100.00
Nov-04 Swivel Chair with armrest 3,195.00 2,875.00 319.50
Nov-04 Swivel Chair 4,180.00 3,762.00 418.00
Nov-04 Executive Chair Faith 7,938.00 7,144.12 793.88
Nov-04 Swivel Chairs 12,900.00 11,610.00 1,290.00
Nov-04 Typewriter 39,600.00 37,620.00 1,980.00
Dec-04 Swivel Chair 1,050.00 945.00 105.00
Dec-04 Brass Marker 7,840.00 7,056.00 784.00
Dec-04 Swivel Chair 14,400.00 12,960.00 1,440.00
Jan-05 Refrigerator GE 6 cu.ft 10,210.00 9,699.50 510.50
Feb-05 GE Telephone Cordless 1,899.00 1,709.10 189.90
May-05 Typewriter 18” Carriage 20,000.00 18,000.00 2,000.00
Sep-05 Tv Sharp 29" 30,000.00 28,500.00 1,500.00
Dec-05 Typewriter 49,696.00 47,211.20 2,484.80
Jan-06 Coffe Maker 1,490.00 1,415.50 74.50
Jan-06 Swivel Chairs 5,995.00 5,695.25 299.75
Aug-06 Aircon 2HP 74,340.00 70,623.00 3,717.00
Dec-06 Olympia Typewriter 4,950.00 4,455.00 495.00
Apr-07 Carrier, AC 1/2 HP 9,700.00 9,549.65 150.35
Jun-07 Electric Typewriter 12,500.00 11,250.00 1,250.00
Sep-07 Stand Fan, Standard 18” HD 1,435.00 1,291.50 143.50
Jun-08 Money Counter Machine 14,500.00 13,775.00 725.00
Feb-09 Casio Calculator 3,050.00 2,475.00 305.00
Jul-09 Air - Carrier 1.5 HP 31,236.00 30,435.58 800.42
Aug-09 Olympia Typewriter 28,550.00 25,695.00 2,855.00
Sep-09 Aircon 2HP Condura 25,080.00 24,418.51 661.49
Sep-09 Xerox Machine Fuji 98,000.00 95,415.25 2,584.75
Dec-09 Xerox Machine 299,000.00 290,777.50 8,222.50
Feb-10 Fax Machine-HP Laser Jet 21,312.50 21,173.97 138.53
Mar-10 Carrier Split Type Aircon 62,562.50 60,771.65 1,790.85
Sep-10 Carrier Aircon 1.5 HP 20,000.00 19,382.50 617.50
Sep-10 Casio, Calculator 2,095.00 2,070.38 24.62
Dec-10 Filing Cabinet - 2door 5,800.00 5,718.80 81.20
Mar-11 DP-420(Authomatic Sorting) 28,150.00 27,217.53 932.47
Mar-11 KYOCERA-MITA Digital Plain Copier 65,500.00 63,330.31 2,169.69
May-11 Drum Assy.DC1080(xerox) 11,700.00 11,303.66 396.34
Jun-11 1Fax Machine-Olivetti 10,000.00 9,657.50 342.50
Jun-11 2 Carrier AC 2HP (35Kea.) 70,000.00 67,602.50 2,397.50
Jul-11 Casio, Calculator HD 4,950.00 4,854.71 95.29
Aug-11 Aircon Carrier, 1HP 24,500.00 23,642.50 857.50
Aug-11 Typewriter, Olympia 24' 36,000.00 35,280.00 720.00
Mar-12 2.5HP A/C, CARRIER, PC 40,650.00 39,120.55 1,529.45
Jul-12 Air Condition 2HP WT 36,000.00 34,845.81 1,154.19
Nov-12 Projector (IN FOCUS) 29,500.00 28,342.30 1,157.70
Nov-12 Air Condition 1.5HP WT 28,500.00 27,037.50 1,462.50
Jan-13 Aircon 1.5HP 28,500.00 27,320.81 1,179.19
Jan-13 Aircon 2HP 36,000.00 34,510.50 1,489.50
Sep-13 Aircon, Carrier (2pcs.) 51,000.00 48,736.87 2,263.13
Nov-13 Aircon, Carrier (2sprints.) 53,000.00 50,608.37 2,391.63
INFORMATION AND COMMUNICATION TECHNOLOGY EQUIPMENT
Mar-96 Computer Sets, complete accessories 99,700.00 89,730.00 9,970.00
Oct-97 Computer Sets, complete accessories 48,000.00 43,200.00 4,800.00
Feb-99 Computer Sets, complete accessories 59,650.00 53,685.00 5,965.00
Oct-99 Printer, Canon 21,587.00 19,428.30 2,158.70
Jan-00 Printer, Canon 21,164.00 19,047.60 2,116.40
Nov-01 Computer Sets, complete accessories 85,400.00 76,860.00 8,540.00
Feb-02 Computer Sets, complete accessories 48,150.00 43,355.00 4,815.00
Nov-02 Printer, Canon 17,995.00 16,195.50 1,799.50
Jul-03 Printer, Canon 5,145.00 4,630.50 514.50
Jul-03 Computer Sets, complete accessories 40,000.00 36,000.00 4,000.00
Jul-03 Computer Sets, complete accessories 45,000.00 40,500.00 4,500.00
Aug-03 Printer, Epson 3,640.00 3,276.00 364.00
Aug-03 UPS-Solaris 2,710.00 2,439.00 271.00
Aug-03 Scanner, Mustek 3,990.00 3,591.00 399.00
Aug-03 UPS-Solaris 1,905.50 1,714.95 190.55
Nov-03 Printer, Canon 19,350.00 17,415.00 193.50
Jan-04 Printer 3,100.00 2,790.00 310.00
Jan-04 Computer Sets 42,250.00 38,025.00 4,225.00
Mar-04 Computer Set 40,350.00 36,315.00 4,035.00
Oct-04 Computer Sets 45,000.00 40,500.00 4,500.00
Nov-04 Disk Drive 2,500.00 2,250.00 250.00
Jan-05 Printer, EPSON C435x 2,682.00 2,413.80 268.20
Jan-05 APC 500V UPS 5,200.00 4,680.00 520.00
Feb-05 Printer 22,500.00 2,250.00 2,250.00
Mar-05 Motherboard 20,200.00 18,180.00 2,020.00
Jun-05 Computer Sets, complete accessories 175,440.00 157,896.00 17,544.00
Jun-05 Computer Set, Complete accessories 49,800.00 44,820.00 4,980.00
Aug-05 Epson Printer C45 3,060.00 2,754.00 306.00
Aug-05 Back-up UPS 6,600.00 5,940.00 660.00
Feb-06 Computer 1 Set complete accessories 63,550.00 57,195.00 6,355.00
Feb-06 Computer 1 Set complete accessories 68,160.00 61,344.00 6,816.00
Mar-06 Computer 1 Set complete accessories 49,890.00 44,901.00 4,989.00
Mar-06 Computer Set 52,950.00 47,665.00 5,295.00
Apr-06 Computer 1 Set complete ac c. 59,960.00 53,964.00 5,996.00
May-06 Laptop Computer, Multi Media Projector 149,500.00 134,550.00 14,950.00
Jul-06 Computer Parts 19,400.00 17,460.00 1,940.00
Aug-06 GIS Application 1,700,000.00 1,530,000.00 170,000.00
Sep-06 Multi Media Speaker (M1310) 6,600.00 5,940.00 660.00
Oct-06 Printer, Epson Stylus C45 6,400.00 5,760.00 640.00
Oct-06 CPU Windows XP 29,000.00 26,100.00 2,900.00
Oct-06 RPTA Computerization 3,310,288.00 3,144,773.60 165,514.40
Nov-06 Printer HP T380 6,875.00 6,187.50 687.50
Nov-06 Printer Epson 3,350.00 3,015.00 335.00
Dec-06 Printer HP 3,350.00 3,015.00 335.00
Dec-06 Epson Printer LX300 9,180.00 8,262.00 918.00
Dec-06 Computer, complete Accessories 200,000.00 180,000.00 20,000.00
Dec-06 CPU Windows XP 26,500.00 23,850.00 2,650.00
Dec-06 UPS & AVR 3,730.00 3,357.00 373.00
Feb-07 RPTA Computerization 1,986,477.00 1,887,153.15 99,323.85
Feb-07 Printer, HD 6,030.00 5,427.00 603.00
Feb-07 Computer Set, complete accessories 60,000.00 54,000.00 6,000.00
May-07 CPU Windows XP 32,100.00 28,890.00 3,210.00
May-07 Computer Back-up APS 500 5,000.00 4,500.00 500.00
Jun-07 RPTA Computerization 1,002,733.90 952,597.20 50,136.70
Oct-07 Computer Set, complete accessories 49,000.00 44,100.00 4,900.00
Oct-07 A3 Flat Bed Scanner 85,000.00 76,500.00 8,500.00
Feb-08 Computer Set, complete accessories 39,500.00 35,550.00 3,950.00
Apr-08 Laptop Asus w/ accessories 39,800.00 35,820.00 3,980.00
May-08 Laptop Asus w/ accessories 44,625.00 40,162.50 4,462.50
Sep-08 Laptop Asus X8LE 4P14 35,000.00 31,500.00 3,500.00
Sep-08 Monitor-LCD Type 17” 9,500.00 8,550.00 950.00
Sep-08 Monitor LCD Type 19” 13,000.00 11,700.00 1,300.00
Oct-08 Printer, HP Deskjet D260 3,100.00 2,790.00 310.00
Oct-08 Laptop COMPAQ Pressario 38,00.00 34,200.00 3,800.00
Nov-08 Printer, Epson LX300 8,700.00 7,830.00 870.00
Dec-08 Printer, Epson Stylus 8,100.00 7,290.00 810.00
Dec-08 Computer Desktop, complete
accessories 43,000.00 38,700.00 4,300.00
Dec-08 Computer Desktop, complete
accessories 35,000.00 31,500.00 3,500.00
Dec-08 Licensed Program (Auto CAD) 20,000.00 18,000.00 2,000.00
Dec-08 Switch Hub Port 6,000.00 5,400.00 600.00
Feb-09 Computer Set, Complete accessories 37,000.00 33,300.00 3,700.00
Apr-09 LCD Monitor 8,500.00 7,650.00 850.00
May-09 Computer Set, Complete accessories 30,000.00 27,000.00 3,000.00
Jun-09 Printer with Scanner 6,000.00 5,400.00 600.00
Jul-09 Laptop Lenovo 49,900.00 44,910.00 4,990.00
Jul-09 Laptop Acer 44,000.00 39,600.00 4,400.00
Aug-09 Laptop Lenovo 49,800.00 44,820.00 4,980.00
Aug-09 Laptop Acer 49,900.00 44,910.00 4,990.00
Sep-09 Desktop Computer 35,000.00 31,500.00 3,500.00
Oct-09 LCD Monitor 9,000.00 8,100.00 900.00
Dec-09 Motherboard 11,000.00 9,900.00 1,100.00
Feb-10 AOC-LCD Monitor 7,295.00 7,247.58 47.42
Feb-10 Computer Laptop 40,000.00 39,740.00 260.00
Mar-10 Desktop Computer 40,000.00 39,710.01 289.99
Apr-10 Laptop 39,500.00 39,184.00 316.00
May-10 LCD Monitor 7,900.00 7,830.87 69.13
Jun-10 Laptop-3GB Complete accessories 46,000.00 45,565.00 435.00
Jun-10 Processor-Intel Dual Core 5,200.00 5,150.60 49.40
Jun-10 Motherhood E5400 4,300.00 4,259.15 40.85
Jun-10 DDR2 Memory Card 2GB 3,250.00 3,219.12 30.88
Jun-10 Video Card 512MB 2,850.00 2,822.92 27.08
Jul-10 LCD Monitor 19" 9,600.00 9,552.00 48.00
Sep-10 Monitor 9,950.00 9,833.09 116.91
Sep-10 5 in 1 Scanner HP 8,800.00 8,696.60 103.40
Sep-10 Computer, Desktop Complete
accessories 42,195.00 41,699.21 495.79
Sep-10 Printer, HP Deskjet 4,300.00 4,249.47 50.53
Nov-10 Computer, Laptop 29,900.00 29,503.82 396.18
Feb-11 HP Printer 9,200.00 9,057.40 142.60
Mar-11 Desktop Computer with Complete
accessories 42,000.00 41,317.50 682.50
Mar-11 Printer -Epson LX-300 12,600.00 12,395.25 204.75
Apr-11 Desktop Computer 40,000.00 39,320.00 680.00
Apr-11 CPU 21,465.00 21,100.10 364.90
Apr-11 Desktop Computer 58,000.00 57,014.00 986.00
May-11 CPU 13,700.00 13,456.82 243.18
May-11 Printer - Canon 3 in 1 4,350.00 4,272.79 77.21
May-11 Netbook - Computer 15,000.00 14,733.75 266.25
May-11 LED Monitor 18.5" 9,000.00 8,840.25 159.75
Jun-11 1 Heavy Duty Laser Printer 15,000.00 14,722.50 277.50
Jun-11 1 Set Desktop Computer Complete
accessories 45,000.00 44,167.50 832.50
Jun-11 1 Set Laptop 52,500.00 51,528.75 971.25
Jun-11 1 Printer (3 in 1) 6,900.00 6,772.35 127.65
Oct-11 Computer, Desktop 67,950.00 66,489.07 1,460.93
Jan-12 18" LED Monitor 9,600.00 9,372.00 228.00
Feb-12 L100 Tank Printer 14,000.00 13,657.00 343.00
Feb-12 1 unit CPU 13,500.00 13,169.25 330.75
Sep-12 UPS-HD 3,000.00 2,910.75 89.25
Oct-12 Monitor 11,500.00 11,149.25 350.75
Oct-12 Laptop-Acer complete accessories 30,000.00 29,085.00 915.00
Feb-13 Laptop, complete accessories 40,000.00 38,660.00 1,340.00
Feb-13 Desktop, complete accessories 31,000.00 29,961.50 1,038.50
Feb-13 1 unit Laptop Acer Aspire 28,000.00 27,062.00 938.00
Apr-13 Desktop PC, complete accessories 37,000.00 35,705.00 1,295.00
Jun-13 Desktop Computer (Set) 29,000.00 27,941.50 1,058.50
Jun-13 Laptop-Acer 28,000.00 26,978.00 1,022.00
Dec-13 Laptop 38,500.00 36,921.50 1,578.50
COMMUNICATION EQUIPMENT
Sep-99 Two-way Radio Motorola 196,058.00 176,452.20 19,605.80
May-03 Mobile Phone-Nokia 3530 196,425.00 176,782.50 19,642.50
Jan. 05 Mobile Phone - Nokia 3100 6,670.00 6,634.16 35.84
Oct. 05 Mobile Phone - Nokia 3220 (4 units) 29,610.00 29,350.86 259.14
Jun-06 Mobile Phone (2 units) 30,000.00 29,647.50 352.50
Aug-06 Mobile Phone Nokia 3220 w/ camera 6,350.00 6,270.63 79.37
Aug-06 Nokia 1100 3,500.00 3,456.25 43.75
Oct-06 Mobile Phone SEK750i(2) 30,000.00 29,602.50 397.50
Dec-06 Mobile Phone, Nokia 6600 9,000.00 8,874.00 126.00
CONSTRUCTION AND HEAVY EQUIPMENT
Jan-95 Motor Engine-NISSAN 15,000.00 13,500.00 1,500.00
Jul-01 Motor Engine-Ambulance 28,600.00 25,740.00 2,860.00
Dec-03 Welding Machine (DT) 19,000.00 17,100.00 1,900.00
Aug-06 ISUZU Dump Truck (Plate No. SFY-511) 900,000.00 810,000.00 90,000.00
Aug-06 LH Tractor Donated by DA
Aug-06 Ford Tractor Donated by DA
Aug-06 Engine-PNP Jeep 29,500.00 26,550.00 2,950.00
Jun-08 Patrol Boat Engine 48,500.00 43,650.00 4,850.00
OTHER MACHINERY AND EQUIPMENT
Jun-95 Sprayer 5,400.00 4,860.00 540.00
Feb-96 Fogging Machine 120,000.00 108,000.00 12,000.00
Mar-96 Sprayer 8,012.50 7,211.25 801.25
Apr-96 Sprayer 4,400.00 3,960.00 440.00
Jun-96 Mattock 1,440.00 1,296.00 144.00
Sep-96 Mattock 12,422.00 11,179.80 1,242.20
Apr-97 Sprayer 6,900.00 6,210.00 6,900.00
Apr-97 Water Pump, SAER 2 HP 24,300.00 21,870.00 2,430.00
Apr-97 Hand Tractor 25,950.00 23,355.00 2,595.00
Dec-97 Hand Tractor 28,920.00 26,028.00 2,892.00
Sep-98 Fogging Machine 73,000.00 65,700.00 7,300.00
Feb-99 Rice Thresher 20,000.00 18,000.00 2,000.00
Mar-99 Hand Tractor 18,546.20 16,692.00 1,854.63
Aug-00 Hand Tractor 19,850.00 17,865.00 1,985.00
Oct-00 Hand Tractor 29,950.00 26,995.00 2,995.00
Dec-00 Hand Tractor 35,600.00 32,040.00 3,560.00
Oct-01 Hand Tractor 33,500.00 30,150.00 3,350.00
Jun-02 Hand Tractor Machine 15,000.00 13,500.00 1,500.00
Dec-02 Hand Tractor 35,360.00 31,824.00 3,536.00
Jul-03 Drum Kit 3,564.00 3,207.60 356.40
Jan-05 Imarflex Coffee Maker 890.00 801.00 89.00
Feb-05 Water Dispenser 2,600.00 2,340.00 260.00
30-Aug-05 16 HP Briggs & Station 30,345.00 27,310.50 3,034.50
2006 Sewing Machine 8,000.00 7,200.00 800.00
Jan-06 Water Dispenser Rack 1,490.00 1,341.00 149.00
May-06 G.E. Water Dispenser 6,499.00 5,849.10 649.90
May-06 Large Caldron 5,200.00 4,680.00 520.00
Jun-06 Hot & Cold Water Dispenser 9,900.00 8,910.00 990.00
Nov-06 Water Dispenser 3,350.00 6,300.00 335.00
Oct-07 Hot and Cold Dispenser 5,650.00 5,085.00 565.00
Nov-07 Hot and Cold Dispenser 5,225.75 4,703.17 522.58
Jun-08 Fax Machine MFC3360c 6,307.00 5,676.30 630.70
Dec-08 Fax Machine 7,480.00 6,732.00 748.00
Dec-08 Fast Charger for AA Battery 2,750.00 2,475.00 275.00
Mar-09 Grass Cutter 15,795.00 14,215.50 1,579.50
OFFICE EQUIPMENT
Jul-95 Typewriter 5,500.00 4,950.00 550.00
Aug-95 Typewriter 6,000.00 5,400.12 599.88
Jan-96 Calculator 10,000.00 9,000.00 1,000.00
Feb-96 Typewriter 7,460.00 6,714.00 746.00
Feb-96 Aircon Carrier 2HP 19,800.00 17,820.00 1,980.00
Mar-96 Typewriter 58,000.00 52,200.00 5,800.00
Apr-96 Typewriter 21,000.00 18,900.00 2,100.00
Nov-96 Typewriter 33,800.00 30,420.00 3,388.00
Aug-97 Aircon Carrier 2HP 20,300.00 18,270.00 2,030.00
Oct-97 Aircon Carrier 2HP 88,670.00 79,803.00 8,867.00
Jul-98 Typewriter 175,880.00 158,292.00 17,588.00
Dec-98 Typewriter 269,875.00 242,887.50 26,987.00
Jul-99 Aircon Carrier 2HP 25,264.00 22,737.60 2,526.40
Mar-00 Typewriter 66,706.00 60,035.50 6,670.50
Oct-00 Typewriter 13,600.00 12,240.00 1,360.00
Feb-01 Mimeo Machine 17,365.00 15,628.50 7,975.00
Apr-01 Aircon Carrier 2HP 21,700.00 19,530.00 2,170.00
Oct-01 Xerox Machine 72,817.50 65,535.75 7,281.75
Apr-03 Casio Calculator 5,380.00 4,842.00 538.00
Jun-03 Scientific Calculator-Casio 1,199.40 1,097.46 119.94
Jun-03 Calculator-Casio 1,604.40 1,443.96 160.44
Aug-03 Portable Typewriter 6,500.00 5,850.00 650.00
Oct-03 Sharp Xerox Machine 70,000.00 63,000.00 7,000.00
Oct-03 Aircon Carrier 2 HP 20,220.00 18,198.00 2,022.00
Jan-04 Electric Fan 1,655.00 1,489.50 165.50
Mar-04 Knapsack Sprayer 7,640.00 6,876.00 764.00
Apr-04 Aircon Carrier ½ HP 9,700.00 8,730.00 970.00
Aug-04 Water Dispenser 6,186.00 5,567.40 618.60
Sep-04 Camera Kodak 4,635.00 4,171.50 463.00
Oct-04 Tires, Heavy Equipment 32,800.00 29,520.00 3,280.00
Oct-04 Water Tank 14,035.00 12,631.50 1,403.50
Oct-04 Grass Cutter 5,000.00 4,500.00 500.00
Nov-04 Chest Freezer 14,300.00 12,870.00 1,430.00
Nov-04 Diesel Engine-Tractor 29,250.00 26,325.00 2,925.00
Nov-04 Tires, Heavy Equipment 64,250.00 57,825.00 6,425.00
Nov-04 Cassette Recorder 3,200.00 2,880.00 320.00
Nov-04 Water Dispenser 7,595.00 6,835.50 759.50
Dec-04 Calculator 3,600.00 3,240.00 360.00
Dec-04 Aircon Carrier 2.5 hp and 2.0 hp 602,658.00 542,392.20 60,265.50
Feb-05 Electric Floor Polisher Wilson # 14 54,000.00 48,600.00 5,400.00
May-05 DTR Recorder 16,400.00 14,760.00 1,640.00
Jun-05 Aircon Carrier ¾ HP 12,810.00 11,529.00 1,281.00
Jul-05 Sony Micro Cassette 16,400.00 14,760.00 308.43
Aug-05 Konzert Sound System 11,950.00 10,755.00 1,195.00
Aug-05 Briggs and Straton 16 HP 30,345.00 30,102.22 242.78
Sep-05 Aircon Carrier ¾ HP 14,000.00 12,600.00 1,400.00
Sep-05 Aircon Carrier 1 HP 16,000.00 14,400.00 1,600.00
Sep-05 Motor Pump, Complete accessories 18,496.00 18,341.10 154.90
Sep-05 Motorized Brush Cutter 20,220.00 20,050.66 169.34
Nov-05 Main board Socket 3,084.25 2,775.82 430.00
Dec-05 MOP Bucket/ Wringe Combo 4,300.00 3,870.00 1,736.50
Dec-05 Steel Modular Cabinet 13,960.00 13,827.38 132.62
Jan-06 Camera PNP & GSO 9,000.00 8,910.00 900.00
Feb-06 Generator Sets Diesel 539,990.00 534,443.09 5,546.91
Feb-06 Manual Sewing Machine 32,000.00 31,672.00 328.00
Feb-06 Digital Camera 46,500.00 46,023.37 476.63
Mar-06 Waste Shedder 233,000.00 230,524.37 2,475.63
Apr-06 Elec. Motors, US (2HP) 6,000.00 5,934.00 66.00
May-06 BMX Bike 2,000.00 1,977.25 22.75
May-06 Motor Pump and accessories 22,877.85 22,617.61 260.24
May-06 Mountain Bike 4,000.00 3,954.50 45.50
Aug-06 Aircon 24,780.00 66,906.00 7,434.00
Aug-06 Generator House and accessories 162,193.50 160,166.08 2,027.42
Aug-06 Digital Camera 19,500.00 19,256.25 243.75
Sep-06 Generator House - Labor 14,200.00 14,017.17 182.83
Oct-06 SAER Motor Pump 3/4 HP 5,820.00 5,742.88 77.12
Oct-06 TILT Truck with Cover 58,400.00 57,626.20 773.80
Oct-06 AVR for Generator 23,500.00 23,188.62 311.38
Nov-06 SAER Motor Pump 1.5 HP 17,435.00 17,197.44 237.56
Nov-06 Car Aircon,1set(ToyotaHilux) 33,950.00 33,487.44 462.56
Nov-06 Hot & Cold Dispenser 5,898.00 5,817.65 80.35
Dec-06 Olympia Typewriter 4,950.00 4,455.00 495.00
Dec-06 Checkwriter 18,000.00 17,748.00 252.00
Dec-06 Arrowroot Crusher & Grinder 18,000.00 17,748.00 252.00
Jan-07 Electric Typewriter 12,500.00 11,250.00 1,250.00
Feb-07 Capacitor 16 MFD 450V 1,321.50 1,301.51 19.99
Feb-07 SAER, Motor Pump 1HP 7,140.00 7,032.01 107.99
May-07 Car Stereo, PIONEER 2950 9,960.00 9,801.88 158.12
Sep-07 Aircon Carrier 1.5 HP 18,300.00 16,470.00 1,830.00
Sep-07 Sprayer 6,900.00 6,210.00 690.00
Oct-07 Hot & Cold Dispenser 5,650.00 5,549.59 100.41
Oct-07 Stand Fan, KDK, HD (2) 5,500.00 5,402.37 97.63
Oct-07 Wall Clock 1,095.00 1,075.56 19.44
Mar-08 Motor Pump #1.5HP SAER 16,500.00 16,176.19 323.81
Jul-08 Pressure Tank & Water pump complete
accessories including labor 34,540.00 33,810.34 729.66
Jul-08 Lawn Mower-Robin 15,370.00 15,045.31 324.69
Jul-08 Magellan GPS 3000XL 4,500.00 4,404.94 95.06
Sep-08 Camera Pixma MP145 3,995.00 3,595.50 399.50
Sep-08 Sound System-complete accessories 21,240.00 20,775.37 464.63
Nov-08 Camera Digital 10,000.00 9,000.00 1,000.00
Nov-08 Laminator ACURA A3 HD 5,358.00 4,819.20 538.80
Nov-08 Water Dispenser-GE 7,995.00 7,814.11 180.89
Nov-08 Grass Cutter-ROBIN 4T 14,000.00 13,683.25 316.75
Dec-08 Testing Machine 9,100.00 8,890.70 209.30
MOTOR VEHICLES
Dec-02 ISUZU Trooper Wagon (Plate No. SGJ-
770) 750,000.00 675,000.00 75,000.00
Jan-03 Mazda Cruiser Jeep (PNP) Plate No. 185,000.00 166,500.00 18,500.00
SFZ-101
2003 RS Yamaha MC (Plate no. SK-3799) 67,000.00 60,300.00 6,700.00
Aug-06 Foton ambulance (Plate no. SKL-774) Donated by PCSO
WATERCRAFTS
Aug-97 Motorboat w/ Complete accessories 114,100.00 108,395.00 5,705.00
Dec-00 Motorboat-Engine 37,850.00 34,065.00 3,785.00
Aug-02 Patrol Boat-Fiber Glass 69,255.35 62,329.81 6,925.54
Jul-06 Fishing Boat No engine 26,000.00 23,400.00 2,600.00
FURNITURE AND FIXTURES
Jan-93 Office Tables 19,999.00 18,999.05 999.95
Jul-95 Swivel Chair 5,200.00 4,680.00 520.00
Feb-96 Office Tables 6,500.00 6,175.00 325.00
Mar-96 Office Tables 9,999.00 9,499.05 499.95
Jan-97 Swivel Chairs 19,950.00 17,995.00 1,995.00
Feb-97 Cabinet 2,971.00 2,673.90 297.10
Feb-97 Office Tables 19,410.00 18,439.50 970.50
Mar-97 Office Tables 7,850.00 7,457.50 392.50
Apr-97 Chairs 6,150.00 5,535.00 615.00
Apr-97 Office Tables 4,780.00 4,541.00 239.00
May-97 Office Tables 10,766.50 10,228.17 538.33
Jul-97 Office Tables 2,150.00 2,042.50 107.50
Aug-97 Book Shelves 7,000.00 6,650.00 350.00
Oct-97 Chairs 10,720.00 9,648.00 1,072.00
Nov-97 Chairs 29,326.00 26,393.40 2,932.60
Dec-97 Various Tables 38,200.00 36,290.00 1,910.00
Jun-98 Various Tables 20,500.00 19,475.00 1,025.00
Aug-98 Various Tables 38,615.00 36,684.25 1,930.75
Apr-00 Chairs 3,432.00 3,088.80 343.20
Apr-00 Tables 11,616.00 11,035.60 580.40
Apr-01 Cabinet 10,500.00 9,975.00 525.00
Oct-01 Cabinet 13,750.00 13,062.50 687.50
Feb-03 Office Table 7,350.00 6,615.00 735.00
Apr-03 Filing Cabinet 17,000.00 15,300.00 1,700.00
Jul-03 Swivel Chair 1,220.00 1,098.00 122.00
Jul-03 Table, Narra Ply 1,850.00 1,665.00 185.00
Jul-03 Tables 11,037.00 9,933.30 1,103.70
Jul-03 Table, Narra Ply 1,850.00 1,665.00 185.00
Jul-03 Filing Cabinet 7,030.00 6,327.00 703.00
Feb-04 Computer Table (1) 3,536.00 3,359.20 176.80
Mar-04 Office Table 6,472.00 5,824.00 647.20
Mar-04 Office Table (1) 3,690.00 3,505.50 184.50
Nov-04 Office Table 30x48 (6) 40,800.00 38,760.00 2,040.00
Nov-04 Plastic Bench (2) 4,580.00 4,351.00 229.00
Nov-04 Index Card Cabinet(2) 44,600.00 42,370.00 2,230.00
Nov-04 Office Table 24x48 (2) 11,270.00 10,706.50 563.50
Nov-04 JPD Steel Cabinet 13,965.00 13,266.75 698.25
Nov-04 Executive Office Table 8,876.00 8,432.20 443.80
Nov-04 Sanwa Office Table(24x48) 7,295.00 6,930.25 364.75
Nov-04 Sanwa Office Table(24X40) 37,176.00 35,317.20 1,858.80
Nov-04 Sanwa Office Table 47,400.00 45,030.00 2,370.00
Nov-04 Pres. Chair, Faith 11,339.00 10,772.05 566.95
Nov-04 Office Table (20x38) 4,350.00 4,132.50 217.50
Nov-04 Drafting Table 6,796.00 6,456.20 339.80
Nov-04 Office Table (30x48)(2) 14,800.00 14,060.00 740.00
Nov-04 Cabinet 2,500.00 2,375.00 125.00
Dec-04 Cabinet with Drawers 3,250.00 2,926.74 323.26
Dec-04 Office Table Narra(30x54) 11,000.00 10,450.00 550.00
Dec-04 Typing Table 2,700.00 2,565.00 135.00
Dec-04 Plastic Bench (4 seater) 23,940.00 22,743.00 1,197.00
Dec-04 Sanwa Exec. Table(28x55) 16,500.00 15,675.00 825.00
Dec-04 Np Interwork Office Table 7,930.00 7,533.50 396.50
Dec-04 Various Cabinets 179,756.50 170,768.67 8,987.83
Dec-04 Vertical Ven. Blinds 183,350.00 174,182.50 9,167.50
Jan-05 Swivel Chair (5) 12,495.00 12,427.83 67.17
Jan-05 Office Table 48x24 (2) 8,410.50 8,365.30 45.20
Jan-05 Office Table 40x20 (3) 7,528.50 7,488.03 40.47
Jan-05 Brown Frame (2) 1,775.00 1,752.25 22.75
Jan-05 Blue Jar (1) 630.00 626.65 3.35
Jan-05 Cabinets, various sizes 28,500.00 28,346.81 153.19
Feb-05 Executive Chair 5,670.00 5,636.99 33.01
Feb-05 Sanwa Office Table (55x28)(2) 16,500.00 16,405.12 94.88
Feb-05 Sanwa Office Table (55x40) 8,250.00 8,202.55 47.45
Feb-05 NP Pluming Table (30x54) 4,515.00 4,489.03 25.97
Feb-05 Various Cabinets (materials) 151,270.00 150,400.21 869.79
Feb-05 Telephone Stand 1,513.00 1,504.31 8.69
Feb-05 Various Cabinets 26,750.00 26,596.20 153.80
Apr-05 Various Cabinets 34,000.00 33,779.00 221.00
May-05 Plastic Chair 1,690.00 1,521.00 169.00
May-05 Steel Gate 147,703.76 146,688.27 1,015.49
Jun-05 Various Sizes, cabinets (materials) 114,780.00 113,947.84 832.16
Jun-05 Plastic Chairs (60) 16,920.00 16,797.36 122.64
Jun-05 Plastic Table (2) 5,100.00 5,063.02 36.98
Jul-05 Exec.Table w/ side drawer 23,920.00 23,738.43 181.57
Jul-05 Exec. Chair Mid Black Leather 9,108.00 9,038.55 69.45
Jul-05 RUF-HS012 Guest Chair (6) 20,493.00 20,336.63 156.37
Aug-05 Filing Cabinet, 3 Drawer 7,350.00 6,615.00 735.00
Aug-05 Table Name Sign (8pc) 21,200.00 21,030.55 169.45
Aug-05 Aluminum Micro Blinds 4,560.00 4,523.52 36.48
Aug-05 PVC Vertical Blinds 4,180.00 4,146.36 33.64
Aug-05 Aluminum Micro Blinds 6,840.00 6,785.28 54.72
Sep-05 Swivel Chair, Black 1,750.00 1,575.00 175.00
Sep-05 Visitor Chair, F002 5,750.00 5,175.00 575.00
Sep-05 Table Name Sign (7pcs) 18,550.00 18,394.63 155.37
Sep-05 Table Name Sign (19pcs) 38,000.00 37,681.75 318.25
Oct-05 Window Grills 11.5m 15,000.00 14,868.75 131.25
Oct-05 Side Table - Saigon 4,195.00 4,158.29 36.71
Oct-05 SOFA, Trudie leather 29,998.00 29,735.51 262.49
Oct-05 Table Name Sign (5) 10,000.00 9,912.50 87.50
Nov-05 Index Cabinets Steel 50,000.00 49,543.75 456.25
Nov-05 Partition Wall/ Divider 48,000.00 47,562.00 438.00
Feb-06 Cofta Table 5,392.00 4,852.80 539.20
Mar-06 Swivel Chair 7,000.00 6,300.00 700.00
Apr-06 Steel Cabinet,JPCII w/ vault 14,000.00 13,846.00 154.00
Jul-06 Cabinet 9,885.00 9,768.85 116.15
Aug-06 Cabinet 58,290.00 57,561.38 728.62
Aug-06 Ceiling Fan & Plastic Chairs 9,880.00 9,756.50 123.50
Aug-06 Examining Table 4,174.25 4,100.50 73.75
Aug-06 Filing Cabinets 4 drawers 6,296.75 6,185.50 111.25
Aug-06 White Board 4 x 5 1,839.50 1,807.00 32.50
Aug-06 Office Table 2,900.75 2,849.50 51.25
Sep-06 Vertival Blinds & Door Tint 18,300.00 18,064.39 235.61
Sep-06 Mini Filing Cabinet 3,500.00 3,454.94 45.06
Sep-06 Various Cabinet, Labor 11,210.00 11,065.68 144.32
Oct-06 Office Table w/ topGlassSANWA 6,450.00 6,364.53 85.47
Oct-06 Swivel Chairs Armrest (HD) 3,400.00 3,354.95 45.05
Oct-06 Computer Table 2,450.00 2,417.53 32.47
Oct-06 Electric Fan 950.00 937.41 12.59
Oct-06 Electric Fan 1,700.00 1,677.47 22.53
Oct-06 Plastic Chairs 6,450.00 6,364.53 85.47
Nov-06 Swivel Chairs,SANWA Exec.Hiback 3,000.00 2,959.12 40.88
Nov-06 Table Name Sign, Glass 2,000.00 1,972.75 27.25
Nov-06 Swivel Chair,Jr.Executive 3,000.00 2,959.12 40.88
Dec-06 Swivel Chair,Jr.Executive 2,700.00 2,662.20 37.80
Dec-06 Venetian Blinds (7sets) 20,748.00 20,457.53 290.47
Dec-06 Swivel Chair w/top glass(3units) 14,900.00 14,691.40 208.60
Dec-06 Swivel Chair,Jr.Executive 3,000.00 2,958.00 42.00
Jun-07 Filling Cabinet-4 drawer 7,900.00 7,771.62 128.38
Jun-07 Table Name Sign, 2 sets 7,000.00 6,886.25 113.75
Oct-07 Table Name Sign, various sizes 45,490.00 44,682.56 807.44
Dec-07 Swivel Chair w/ armrest Junior Exec. 3,650.00 3,582.47 67.53
Dec-07 Swivel Chair w/ armrest Junior Exec. (3) 3,650 @10,950.00 10,747.42 202.58
Mar-08 Swivel Chair-1025-B 5,100.00 4,999.91 100.09
Jun-08 Swivel Chair w/ arm 5,035.50 4,931.01 104.49
Jun-08 Office Table 6,800.00 6,658.90 141.10
Jun-08 Fax Machine Table 14x18 inches 1,500.00 1,468.87 31.13
Jun-08 Counter Machine Table 2,000.00 1,958.50 41.50
Jun-08 Side Table 1,500.00 1,468.87 31.13
Jul-08
Sanwa Executive Chair Mcs-402 (3 units) 9,849.00 9,640.94 208.06
Jul-08 Folding Table 779.00 762.54 16.46
Jul-08 Swivel Chair (2 units) 4,620.00 4,522.40 97.60
Jul-08 Corner Table 490.00 479.65 10.35
Dec-08 Executive Chair w/ armrest 3,339.00 3,262.20 76.80
Dec-08 Swivel Chair w/ armrest 3 units @
3339.00 10,017.00 9,786.61 230.39
Computer Table 10,950.00 9,855.00 1,095.00
LIBRARY BOOKS
Apr-96 Library Books, Encyclopedia 28,650.00 25,785.00 2,865.00
Oct-00 Library Books, Encyclopedia 27,450.00 24,705.00 2,745.00
Sep-01 Library Books, Encyclopedia 24,900.00 22,410.00 2,490.00
OTHER PROPERTY, PLANT AND EQUIPMENT (PPE)
Jan-96 Calculator 10,000.00 9,000.00 1,000.00
Feb-96 Various Equipment 15,000.00 17,820.00 1,980.00
Feb-96 Various Equipment 39,000.00 13,500.00 1,500.00
Nov-96 Various Equipment 28,504.00 25,653.60 2,850.40
Nov-97 Various Equipment 26,880.50 24,192.45 2,688.05
Jul-00 Karaoke Sharp 10,010.00 9,009.00 1,001.00
May-06 Water Dispenser 6,499.00 5,849.10 649.90
Aug-06 Stand Fan 564.40 507.96 56.44
Aug-06 Gas Stove with Tank 1,128.80 1,015.92 112.88
Fire Extinguisher, Beginning Book Bal. January 2001 36,400.00
Mar-09 Karaoke, 2000 Watts 11,440.00 10,296.00 1,144.00
Mar-09 Stand Fan, Big 9,152.00 8,236.80 915.20
Oct-05 Various Office Books 6,645.00 5,980.50 664.50
Jan-98 Baunamometer 21,540.00 19,386.00 2,154.00
Apr-98 Vault 10,800.00 9,720.00 1,080.00
Jan-96 Karaoke 10,000.00 9,000.00 1,000.00
Mar-97 Karaoke Sharp 23,230.00 20,907.00 2,320.00
Jul-00 Karaoke Sharp 10,010.00 9,009.00 1,001.00
Jul-96 Ceiling Fan Standard 2,000.00 1,800.00 200.00
Aug-96 Ceiling Fan Standard 1,740.00 1,323.00 174.00
Apr-96 Camera Canon 7,000.00 6,300.00 700.00
Aug-06 Mini Sound System 2,448.50 2,203.65 244.85
Aug-06 Stand Fan 564.40 507.96 56.44
Aug-06 Gas Stove with Tank 1,128.80 1,015.92 112.80
1,607,739.23
PPE WITHOUT DETAILS
Office Equipment
Beginning Balance, General Ledger, December 1994 36,770.73
Library Books
Balance from General Ledger, December 2003 19,823.00
Balance from Trust Fund, December 31, 2004 415,173.82
Other PPE
Beginning Book Balance, January 2001 30,000.00
501,767.55
Total 2,109,506.78

Catanauan2019 Audit Report

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We recommended that the Municipal Mayor require the:

a. Municipal Treasurer (MT) to prepare a list of individual taxpayers with delinquencies

b. Municipal Accountant to facilitate the adjustment of RPT/SET Receivables once the

c. Municipal Accountant to ensure that all collections are properly recorded;

d. Municipal Assessor to facilitate the immediate cleansing of property tax records to

e. MT to continue the enforcement of remedies as provided in Republic Act No. 7160.

We reiterated our recommendation that the Municipal Mayor require the:

a. Inventory Committee to complete the physical inventory of all property of the

c. MGSO and Municipal Accountant to reconcile their records.

We also recommended that the Municipal Mayor require the:

c. Municipal Accountant to prepare and submit the Schedule of Depreciation and

d. Municipal Accountant to maintain complete and updated PPE Ledger Card;

AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION

Agency Action Plan Reason for

The following are the key officials of the Municipality:

Hon. Ramon A. Orfanel Municipal Mayor

Total Assets P 809,053,784.34 P 705,105,203.09 P103,948,581.25

Total Income 221,257,365.83 202,283,268.42 18,974,097.41

Auditor’s Opinion on the Financial Statements

4. Guaranty/Security Deposits Payable totaling P516,044.21 which have been outstanding

5. Receivables from the former Municipal employees totaling P78,838.69 representing

Other Significant Observations and Recommendations

We recommended that the Municipal Mayor require the:

c. BAC Chairman to ensure strict compliance with the documentary requirements to

d. Municipal Accountant to ensure that the Disbursement Voucher is supported with

a. submit the following:

 Inventory and Inspection Report of Unserviceable Property (IIRUP) for those

 list of transferred property with corresponding Invoice and Receipt of Property;

 photos of valueless property before and during condemnation either by burning,

 documents on the public auction conducted; and

 other documents that will substantiate the regularity of such disposal.

4. Motor vehicles of the Municipality costing P1,670,900.00 were not supported by

6. Programs/Projects/Activities (PPAs) attributed to Gender and Development (GAD)

8. Only 70.98 percent or P5,331,068.00 out of P7,510,510.88 appropriation for CY 2019

Summary of Total Suspensions, Disallowances and Charges as of Year-End

As of December 31, 2019, the Municipality’s unsettled audit disallowances totaled

Part Subject Page

I AUDITED FINANCIAL STATEMENTS

II AUDIT OBSERVATIONS AND RECOMMENDATIONS

 Financial and Compliance Audit 50

III STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT

INDEPENDENT AUDITOR’S REPORT

Hon. RAMON A. ORFANEL

Basis for Qualified Opinion

4. Guaranty/Security Deposits Payable totaling P516,044.21 which have been outstanding

5. Receivables from the former Municipal employees totaling P78,838.69 representing

We conducted our audit in accordance with International Standards of Supreme Audit

Key Audit Matters

The following were also discussed in the report:

 Motor vehicles of the Municipality costing P1,670,900.00 were not supported by

Note 2019 2018

(See accompanying Notes to Financial Statements)

Notes 2019 2018

Less: Current Operating Expenses

(See accompanying Notes to Financial Statements)

Note 2019 2018

Balance at January 1, 2019 P 389,650,534.40 P 315,078,128.63

(See accompanying Notes to Financial Statements)

Note 2019 2018

(See accompanying Notes to Financial Statements)

Note 2 – Basis of Financial Statements Presentation

Note 3 –Summary of Significant Accounting Policies

3.1 Basis of Accounting

The Municipality uses accrual basis of accounting in accordance with IPSAS.