09-RoxasCity2019 Part2-Observations and Recomm

PART II- AUDIT OBSERVATIONS AND
RECOMMENDATIONS
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AUDIT OBSERVATIONS AND RECOMMENDATIONS
A. FINANCIAL AND COMPLIANCE
Unliquidated Advances
1. Cash advances totaling ₱10.798 million remained unliquidated/unsettled as of

December 31, 2019 contrary to Commission on Audit (COA) Circular No. 97-002
dated February 10, 1997, Section 14 of Executive Order (E.O.) No. 298 dated
March 23, 2004 and COA Circular No. 2012-004 dated November 28, 2012, thus,
resulting in unascertained cash disbursements/expenses and unsettled
accountabilities carried by concerned officials/employees.
Pertinent provisions of COA Circular No. 97-002 dated February 10, 1997 state that:
“Section 4.1.2 - No additional cash advances shall be allowed to any

official or employee unless the previous cash
advance given to him is first settled or a proper
accounting thereof is made.
Section 4.1.3 - A cash advance shall be reported on as soon as the

purpose for which it was given has been served.
xxx
Section 5.7 - When a cash advance is no longer needed or has not

been used for a period of two (2) months, it must be
returned to or refunded immediately to the collecting
officer.
Section 5.8 - All cash advances shall be fully liquidated at the end of
each year. Xxx”
Moreover, Section 14 of EO 298 also provides in part that:
“within thirty (30) days of his return to his permanent official station in
the case official local travel, every official or employee shall render an
account of the cash advance received by him.”
In addition, COA Circular No. 2012-004 dated November 28, 2012 on the Demand
for Immediate Liquidation and Settlement of All Cash Advances Outstanding as of
December 31, 2011 requires that:
“Item 5.0- Article 217 of the Revised Penal Code states in unequivocal
terms that: ‘The failure of a public officer to have duly
forthcoming any public funds or property with which he is
chargeable, upon demand by any duly authorized officer,
shall be prima facie evidence that he has put such missing
funds or property to personal use.
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Item 6.0 - Wherefore, final notice and demand is hereby made to all
concerned to settle and liquidate all outstanding cash
advances as of December 31, 2011 on or before
January 31, 2013. Provided, however, that those who
have been issued by the Commission on Audit notice and
demand, prior to the issuance of this Circular, to settle
and liquidate their cash advances within a specified
period, shall do so within the period specified in the said
notice.
xxx.
This Circular shall serve as the demand required under

appropriate law, rules and regulations to settle the
accountable officer’s unliquidated cash advance as well
as all those who are already separated from the service or
have transferred to other agency.”
Analysis on balances of Cash Advances as of December 31, 2019 disclosed the

following:
1.1. Balances of cash advances showing a total of ₱10.798 million remained

unliquidated/unsettled as of December 31, 2019. The amount also includes
those unsettled cash advances granted in previous years amounting to
₱1.740 million (Annex H.1);
1.2. Previous year’s cash advances remained unliquidated/unsettled despite that its
purpose has already been served hence, exposing government funds to risk of
misapplication and misuse;
1.3. Cash advances granted during the year were not liquidated within 30 days; and
1.4. Additional cash advances were granted to officers and employees although the
previous cash advances have not been liquidated.
The high percentage of long outstanding unliquidated advances suggests, among

others, weakness in the monitoring and strict enforcement of their liquidation,
considering the period that these advances remained unliquidated and that most of
them may have already been expended. This condition poses a risk of misapplication
of the Cash Advances and understated related expense accounts as of
December 31, 2019.
Settlement of cash advances, particularly those granted in previous years, would

have resulted in the accounting of actual cash disbursements and expenses and free
concerned officials/employees of their accountabilities.
This observation is a reiteration of previous year’s audit observation which was taken
up with concerned officials of the City and partially is implemented.
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We reiterated our recommendation that Management:
a. Require the immediate liquidation/settlement by concerned

officials/employees of all cash advances totaling ₱10.798 million;
b. Cause the withholding of salaries of officials and employees, effective

immediately, for unliquidated cash advances totaling ₱1.740 million
granted in prior years and impose administrative sanctions like withholding
of emoluments due them for those who have outstanding unsettled
obligations;
c. Refrain from granting additional cash advances to officers and employees

with unsettled accounts; and
d. Henceforth, strictly comply with COA Circular No. 97-002 and Section 14 of
E.O. 298 on the granting, utilization and liquidation of cash advances and
COA Circular No. 2012-004 on the Demand for Immediate Liquidation and
Settlement of All Cash Advances Outstanding as of December 31, 2011. In
particular, send demand letter to accountable officials/employees and
institute appropriate action against them.
The Audit Team issued Audit Observation Memorandum (AOM)

No. 2020-009 (2019) dated February 27, 2020 for the foregoing observations and
recommendations.
2. Disbursements for operating expenses totaling ₱15.368 million were made

through cash advance and not through issuance of checks drawn in the name
of the supplier/payee, contrary to Section 2(2) of COA Circular No. 97-002
dated February 10, 1997, hence, poses risk of loss or mishandling of funds and
accumulation of outstanding cash advances.
Section 2(2) of COA Circular No. 97-002 dated February 10, 1997 states:
“Ideally, cash should be handled under the general principles of the

imprest system, to wit;
xxx
2. All payments must be made by check.
Xxx
In practice, however, there are certain instances when it may be very

difficult, impractical or impossible to make payments by check. In such
a case, payments may be made by the disbursing officer in the form
of cash through his cash advance.”
In addition, Section 93 of Presidential Decree (PD) 1445 provides:
“To whom warrants or checks payable. Warrants chargeable to

revenue or trust funds of the national government or checks drawn
against the treasury Checking Account for Agencies maintained with
any government depository shall be made payable either directly to
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the creditor to whom the money is due or to a disbursing officer for
official disbursement.”
Our audit of disbursements for CY 2019 revealed that payment of supplies,

materials, meals and snacks and others totaling ₱15.368 million (Annex H.2) were
made through cash advance/s instead of directly paying to the supplier, hence,
poses risk of loss or mishandling of funds and accumulation of outstanding cash
advances. Further, purchase of goods without following the prescribed procedures
on the conduct of applicable prescribed mode of procurement, deprived the
government of the most advantageous price. Likewise, this practice negates
compliance of Republic Act 9184 or the Government Procurement Reform Act and
also deprived the government of additional income thru the withholding of taxes as
required by the BIR.
We recommended that Management:
a. Refrain from drawing a cash advance in lieu of direct payment to suppliers

except in highly justifiable instances where payment of checks is
impractical; and
b. Strictly comply with COA Circular 97-002 and RA 9184 insofar as

disbursements is concerned.

No. 2020-009 (2019) dated February 27, 2020 for the foregoing observations and
recommendations.
Local Disaster Risk Reduction and Management Fund (LDRRMF)
3. Appropriation for Calendar Year (CY) 2019 on 70% LDRRMF was not fully
utilized contrary to Department of the Interior and Local Government (DILG)
Memorandum Circular (MC) No. 2012-73 dated April 17, 2012, hence, weakened
the attainment of objectives to reduce disaster risks and enhance disaster
preparedness and response capabilities.
DILG Memorandum Circular No. 2012-73 dated April 17, 2012 provides that:
“Xxx, all Local Chief Executives are hereby enjoined to utilize their
Local Disaster Risk Reduction and Management Fund to ensure that
basic ‘rescue and response equipment’ are procured and to
operationalize the provisions of the National DRRM Plan and National
Climate Change Action Plan, in accordance with the pertinent
provisions of related laws and its implementing rules and regulations.
A. 70% of the 5% LDRRMF may be utilized to procure early warning

systems, preparedness equipment and other equipage.”
The formulated Programs, Projects and Activities (PPAs) for Disaster Risk Reduction
and Management (DRRM) are deemed priority and timely implementation thereof is
essential to attain the objectives of reducing the impact of all forms of disaster and
increasing resilience in terms of their effects on man, crops, animals and
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infrastructure through the implementation of PPAs pertinent to prevention and
mitigation, preparedness, response, rehabilitation and recovery.
Verification and analysis of the submitted LDRRMF utilization report of the City as of
December 31, 2019 disclosed the following:
1. Only ₱12.080 million or 43 percent was utilized out of the ₱28.189 million budget
for 70% LDRRMF leaving an unutilized balance of ₱ 16.109 million or 57 percent,
as summarized below:
Original Supplemental Final

Particulars Utilization %age Balance
Appropriation Budget Appropriation
70% allocation 28,188,971.30 28,188,971.30 12,079,701.07 43% 16,109,270.23

30% allocation 12,080,987.70 12,080,987.70 11,956,968.00 99% 124,019.70
Unprogrammed
Budget 2,269,586.00 2,269,586.00 - 2,269,586.00
Total 40,269,959.00 2,269,586.00 42,539,545.00 24,036,669.07 57% 18,502,875.93
Percentage based on Final Appropriation 57% 43%
Source: Annex I.1
2. Ten identified/planned PPAs for the 70% fund were not

implemented/accomplished during the year. These were primarily intended for
trainings and seminars, information dissemination, purchase of preparedness
and response equipment and other equipage, etc. (See Annex I.1)
3. Appropriations totaling ₱2.270 million per supplemental budgets and

Sangguniang Panlungsod (SP) Appropriation Ordinances were not programmed
for any specific PPAs to effectively, efficiently and economically utilize the
LDRRMF Fund, as shown below:
Particulars Amount
Supplemental SP Appropriation Ordinance No. 046-2019 683,561.00
Budget No. 3 dated 6/11/19
Supplemental SP Appropriation Ordinance No. 060-2019 1,276,967.00
Total 0.00
4. A total of ₱5.277 million or 23.09 percent out of ₱22.853 million was utilized for
PPAs funded from continuing appropriation and a total of ₱2.110 million or 6.84
percent out of ₱30.829 million was utilized for PPAs funded from the unexpended
LDRRMF of previous years. It showed that the identified/planned PPAs were not
fully implemented/materialized, as summarized in the next page:
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Particular Appropriation Utilization Balance
A. Continuing Appropriation (Capital Outlay)
CY 2018 8,419,100.89 2,374,126.12 0
CY 2017 5,412,263.60 2,000,000.00 00
CY 2016 1,309,289.00 0.00 1,309,289.00
CY 2015 5,111,647.50 0.00 5,111,647.50
CY 2014 1,930,370.00 238,500.00 0.00
CY 2013 238,478.00 234,610.00 0.00
CY 2012 432,120.84 429,700.00 0
Total 0 0 0
B. Trust Fund
Unprogrammed
1. CY 2018 19,163,163.57 0.00 19,163,163.57
Reprogrammed
1. CY 2018
(ARO No. 381-
2018 dated
11/6/2018) 126,871.59 126,145.59 0.00
2. CY 2017
(Res. No. 49-2018
dated 5/29/2018) 8,270,927.98 1,866,024.48 00
3. CY 2016
(Res. No. 100-
2017 dated
12/31/2016) 1,157,905.07 117,983.50 0
4. CYs 2011-2015
(Res. No. 91-2016
dated 12/31/2016) 43,585.00 0.00 43,585.00
5. CY 2013
(Res. No. 2-2014
dated 10/3/
2014) 2,066,808.10 0.00 2,066,808.10
Total 0 0 0
Source: Annexes I.2-I.3
We recognize the fact that management has made progress in implementing PPAs
on capability building and construction of RCPC drainage system (Annex I.1).
However, attention should also be given to PPAs on acquisition of preparedness and
response equipment and other programmed activities.
Failure to fully utilize the appropriation for 70 percent LDRRMF resulted in the
weakening of LGU’s effort in the attainment of its objectives to reduce disaster risks
and enhance disaster preparedness and response capabilities.
It is emphasized that implementing the PPAs under the LDRRMF is important in the
sense that with proper preparation and planning, the effects of calamities could be
mitigated, if not avoided, in terms of loss or damage to property or life.
up with concerned officials of the City and remained unimplemented.
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a. Require the LDRRMC to study and evaluate its LDRRMFIP, if needed, revise
and update it, and determine or address the constraints/reasons for failure
to fully utilize the 70 percent LDRRMF; and
b. Effectively, efficiently and economically implement the priority

identified/planned PPAs contained in the approved LDRRMFIP and Annual
Investment Plan (AIP) during the current year to attain the objectives
pursuant to the above-mentioned circular.

No. 2020-008 dated February 26, 2020 for the foregoing observations and
recommendations.
Management Comment:
The Management commented that only ₱12.080 million was utilized out of the
₱28.189 million budget for 70 percent LDRRMF due to the following reasons:
1. The implementation of the election banning period restricted the implementation

of government programs, projects and activities (PPAs);
2. After the local election, the Executive Order reconstituting the LDRRMF Council
was enacted only in October 2019. Hence, the said Council was not able to
conduct meetings to approve proposed plans, projects and activities;
3. During the transition period project proposals and purchase orders were not
enacted, pending for the creation of a new set of personnel for the Bids and
Awards Committee;
4. It was on November 12, 2019 that the LDRRMF Council was able to conduct a
meeting to reprogram the unprogrammed budget in the Trust Fund amounting to
₱19.163 million and the 5 percent funds from the Supplemental Budgets and
Sangguninang Panlungsod Appropriations Ordinances amounting to ₱2.270
million. It was proposed to be funded for several PPAs such as the completion of
CLUP, refurbishing of the Regional Evacuation Center and construction of box
culvert drainange systems in different areas of Roxas City; and
5. The onslaught of Typhoon Tisoy and Ursula contributed to the non-

implementation of the proposed programs, projects and activities.
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Solid Waste Management (SWM) Program
4. Lack of budgetary allocation to support established measures and guidelines

in the implementation of Solid Waste Management (SWM) PPAs in
accordance with the SWM Plan may hamper the attainment of significant PPAs
in solid waste reduction and collection contrary to RA No. 9003, hence, targets
for solid waste volume reduction and effective SWM program might not
materialize.
Section 16, Chapter III of RA No. 9003 reads that:
“The province, city or municipality, through its local solid waste

management boards, shall prepare its respective 10-year solid waste
management plans consistent with the National Solid Waste
Management Framework. Xxx”
Section 12, Chapter II of the same Act provides the duties and responsibilities of the
City Solid Waste Boards such as, but not limited to;
(1) Adopt measures to promote and ensure the viability and effective
implementation of solid waste management programs in its
component barangays;
(2) Monitor the implementation of the City or Municipal Solid Waste

Management Plan through its various political subdivisions and in
cooperation with the private sector and the NGOs; and
(3) Develop the specific mechanics and guidelines for the

implementation of the City or Municipal Solid Waste Management
Plan;
The Comprehensive and Integrated Solid Waste Management System of the City of
Roxas was enacted per City Ordinance No. 075-2001 to guide, control, and regulate
the generation at source, storage, collection, transportation and disposal of solid
wastes, enhance ecological balance and promote and protect the health, safety,
peace and convenience and welfare of the inhabitants of Roxas City.
The Roxas City Solid Waste Management Board, in consultation with the various
sectors in the community, developed the City Solid Waste Management Plan that
ensures the long-term SWM, as well as integrates the various SWM Programs and
strategies of barangays within its jurisdiction, and oversees the implementation of the
plan.
Most of the functions of SWM in the city is performed by the General Services Office,
thru the Project Management Office-SWM. It is charged with the waste collection and
disposal, management of final disposal facility, and supervision of SWM personnel.
Repairs and maintenance of SWM equipment are under the Equipment and Motor
Pool Division of the City Engineer’s Office.
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The Liga ng mga Barangay, Department of Education (DepEd) and the City Mayor’s
Office, through the Roxas Press Bureu, handle Information and Dissemination
Campaign.
Enforcement of SWM regulations is under the Philippine National Police (PNP).
Presently, the city’s collection service covers 44 out of 47 barangays with 14 regular
routes; 100 percent daily collection in all urban barangays and commercial
establishments starting 5:00 am daily. Additional nightly collections of four routes are
now being undertaken starting at 6:00 pm along major roads and around the Central
Business District. Per inquiry with City Environment and Natural Resources Office
(CENRO), the waste generation in Roxas City has doubled over a decade which is
estimated at about 94-100 tons of waste/day or 36,500 tons/year were collected but
a significant percentage remained not segregated, recycled or composted and
brought to Sanitary Land Fill at Brgy. San Jose, Roxas, City.
For 13 rural barangays, the scheduled collection is two times per week. One island
barangay named Olotayan is practicing its own Solid Waste Management Program
to be soon evaluated by the City Solid Waste Management Board.
The City Government also provided one unit garbage truck each to eight barangays
namely: Banica, Bato, Baybay, Cagay, Culasi, Dayao, Lawaan and Libas for
collection of garbage in their respective areas of jurisdiction, while three of these
barangays namely: Banica, Bato, and Lawaan also have barangay-owned garbage
collection trucks while all the other barangays solely depend on the collection
services of the City.
Private establishments, on the other hand, have their own collection scheme in
accordance with the Roxas City Solid Waste Management Board policy guidelines.
The SWM Board was reconstituted per Executive Order No. 14, series of 2013 to
perform the duties and responsibilities as provided in Section 12 of RA No. 9003.
Relative thereto, the Ecological SWM Plan was formulated for a 10 year period
covering CY 2017 to CY 2026 which was approved by the National Solid Waste
Commission in CY 2020. Included in the ESWM Plan of Roxas City Brief
Implementation Future Plan (5.2) on collection, aims to:
1. To enforce collection of residual waste only in all brangays;

2. To purchase additional collection equipment;
3. To hire more support staff charged with collection; and
4. To venture into Public-Private Partnership (PPP) for garbage collection and for
management and operation of Sanitary Landfill (SLF).
Lack of budgetary allocation to support the SWM program implementation was

noted.
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In order to implement the SWMP, the amount of ₱20.180 million (see table below)
was appropriated in 2019 for SWM Program, Projects and Activities (PPAs).
Fund Source PPA Amount

City Mayor’s Office SWM Program – Fuel, Oil, and ₱ 20,180,000.00
Lubricants Expense
Total ₱ 20,180,000.00
It was noted that the PPAs totaling ₱20.180 million was fully utilized for solid waste
collection activities. SWM personnel salaries were charged to the General Services
Office Budget while that of the Job Order personnel were charged to City Mayor’s
Office.
The SWM office is currently managed by the General Services Officer in coordination
with the newly appointed City Environment and Natural Resources Officer. The
following are its manpower/personnel complement; City solid Waste Management
Board which includes representatives from Civil Society Organizations (CSOs) and
Academe, SWM Focal Person and the Barangay Solid Waste Management
Committee with a Personal Services cost of ₱5.242 million (see Annex J.1).
Collection
In the SWM Plan, the policy on efficient collection and proper transport of wastes by
the Roxas City Government is another major strategy in SWM which objectives are
(1) to include all barangays in the City’s garbage collection system by 2027 and (2)
to improve the scheme of collection system with provided specific schedules of
collection for the biodegradable and non-biodegradable wastes (Item 6.3 of SWM
Plan).
The City of Roxas has 18 garbage trucks but only nine Garbage Trucks were utilized
on the 14 assigned routes and Heavy Equipment (3.2 of SWM Plan)) to maintain the
collection activities and leveling in the controlled dump site newly operationalized
Sanitary Landfill at Brgy. San Jose, Roxas City with a total of 221 personnel that
were directly involved in the SWM Program.
Included in the present Plan are 14 solid waste collection routes, four night shift
routes and collection schedules (Annex J.2).
The following observations in collection services of Solid Waste were noted:
a. Activities to assess compliance of solid waste collection routes with schedules and
targeted areas need to be closely monitored;
b. Provision of necessary training to all collectors and personnel to ensure that the
solid wastes are handled properly and in accordance with the guidelines pursuant
to RA No. 9003 were not provided with budget in the CY 2019 SWM PPAs;
c. Programmed 14 regular collection routes per revised SWM Plan in CY 2019 were
lumped together. It appeared that the assigned barangays were too many to be
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covered by a single garbage truck, resulting in inability to collect the garbage as
scheduled;
d. Fuel consumption of nine Garbage Trucks and Heavy Equipment totaled ₱20.180
million suggested that control measures for fuel utilization in every solid waste
collection route (distance covered, that is, from garage, to collection area, to dump
site at Brgy. San Jose, back to garage) need to established per assigned route;
and
e. Regular preventive maintenance of garbage trucks are not regularly scheduled nor
a budget is provided for major repair under a SWM PPAs to avert possible
breakdown of vehicles and eventually hampered attainment of garbage collection
schedule on assigned routes.
To ensure efficient and effective system of SWM, adequate planning in the

formulation of PPAs is necessary pursuant to Section 16, Chapter III of RA No.
9003 and to attain targets for solid waste volume reduction measures and guidelines
in the implementation of SWM PPAs be established pursuant to Sections 2 (c) of
Republic Act (RA) No. 9003.
We recommended that Management require the SWM Board to:
a. Come up with a comprehensive proposed budget for the SWM Program

integrating the Personal Services, MOOE and Capital Outlay and Financial
Expenses requirements in implementing the SWM Program of the City in
accordance with the approved SWM Plan;
b. Intensify SWM collection activities to assess compliance on solid waste

collection routes with schedules and targeted areas. Maximize available old
garbage trucks to serve the target clientele;
c. Direct the Solid Waste Management Board to formulate concrete measures

and guidelines as basis for the implementation of PPAs in all components
of SWM particularly in solid waste reduction, collection, monitoring and
evaluation like strict implementation of segregation of solid waste at the
barangay level;
d. Direct the City Environmental Office to properly assess the capacity of nine
garbage trucks if it can effectively carry out the 18 routes, if not, design
and come up with thorough collection measures of waste based on
realistic schedules to improve delivery of basic service to its clientele; and
e. Direct the CENRO and Budget Officer to propose budgetary allocations for
all PPAs identified in the SWM Plan for an effective program
implementation, such as, solid waste collection, specifically for the
following:
 Lack of Garbage Truck

 Fuel, Gasoline and Oil
 Repairs and Maintenance
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 Other General Services

No. 2020-011(2018-2019) dated February 19, 2020 for the foregoing observations
and recommendations.
Local Economic Enterprise (LEE)
5. Existing practices undermine the LGU’s capacity to maximize its revenue

generating power resulting in lost revenues and resources that could have
been plowed back to the LEE for acquisition of modern equipment and
facilities that will benefit the public in general.
Department of Budget and Management Local Budget Circular No. III dated June 10,
2016 prescribes the Manual on the Setting Up and Operation of Local Economic
Enterprise (LEE’s). Section 2.3 thereof provides that: “The LEE Manual also provides
guidance on how to review existing LEE operations in order to ensure their viability,
and if this cannot be attained, prompt the LGU to adopt appropriate measures”.
The comparative financial statement of LEE (See Annex K.1) will show financial
performance in CY 2019 per approved budget viz the actual operating performance
as of December 31, 2019. Market and Slaughterhouse have exceeded its targeted
surplus while Libas Fishing Port reported revenue decline having only attained 59.2
percent against its target. The Roxas City Integrated Transport Terminal (RCITT)
revenue generation of ₱17.520 million corresponds to 80.45 percent viz its ₱21.779
million target set for CY 2019.
Market generated revenue of ₱27.238 million show significant increase of 25.21

percent considering that market stall rental rate remained the same with a rental rate
per square meter adapted based on SP Ordinance No. 048-2010 dated
December 14, 2010 despite the upgrading and renovation of meat and livestock
section and the vegetable section.
Total operating expenses for the market amounted to ₱19.406 million, while the
recorded surplus of ₱7.832 million posted a significant 746 percent from what was
targeted at ₱0.925 million under the zero-based budget in CY 2019.
The RCITT generated revenue of ₱17.520 million or 80.45 percent viz the CY 2019
targeted revenue of ₱21.779 million and posting an increase of ₱227,051.55 from
last year’s record of ₱17.293 million. RCITT posted the highest peso value surplus of
₱8.461 million or equivalent to 76.30 percent, however, fell short by ₱2.595 million to
attain its targeted surplus of ₱11.056 million.
The Libas Fishing Port showed a declining trend in revenue generation since
CY 2018. Reported revenues was only ₱2.879 million or attained 59.19 percent of its
target of ₱4.864 million.
The peso revenue contribution of Market and the RCITT showed positive
improvement for the LGU in the area of generating revenue. On the other hand,
there is a need to reassess the operation of the Libas Fishing Port and the Slaughter
House to ensure the LEEs sustainability and profitability.
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LEEs reported operating expenses were within the approved budget recorded at
₱19.406 million or 93.17 percent against budget in Market; ₱9.059 million or 84.48
percent in RCITT; ₱3.601 million or 75.12 percent in Libas Fishing Port; and ₱1.931
million or 77.62 percent in Slaughter House indicating a controlled cost or
economical operation of all LEE as of December 31, 2019.
Overall, the total revenues generated by the four LEEs was ₱50.754 million which
was 99.35 percent viz its target of ₱51.084 million; Total Operating Expenses
incurred was ₱8.452 million or 88.43 percent against its budget of ₱9.558 million.
The posted net surplus of ₱42.302 million was 101.86 percent viz its projection of
₱41.526 million in CY 2019.
Review of LEE operation, revealed that:
1. The present stall rates is based on SP Ordinance No. 048-2010 dated

December 14, 2010, otherwise known as the New Revision of the City of Roxas
Revenue which took effect in January 1, 2011. The 50 percent increase full
implementation was made on March 2017. This ordinance was crafted eight
years ago and need to be upgraded to be relevant to present condition and
changing time;
2. Contracts on operating lease on market stall rentals are not available on file as
requested,
3. Non-submission of Ordinance/SP Resolution creating the Upgraded Market in

Pueblo de Panay and other facilities for rental as LEE;
4. The following policies need to be reviewed due to non-adherence to sound

operating practices of the LEE Management;
 Control of incoming goods at designated gates;

 Abandoned/ unoccupied stalls/close stalls;
 Facilities needing repair and upgrading as perceived by the lessee;
 Programmed repair and maintenance not incorporated in the LEE budget;
 Salaries not incorporated in Roxas City Integrated Transport Terminal budget,
 Post-mortem Inspection Fee based on estimates not on actual weight.
5. LGU’s generated surplus derived from LEE operation are not applied consistently
to improvement, major repairs and related expenses of the LEE to foster better
services and to provide convenience to clientele. Budget provision for repair and
rehabilitation are minimal in the approved budget of the LEE; and
6. Appropriated funds of LEE for Capital Outlay in CY 2019 amounting to ₱4.435

million and for Continuing Appropriation totaling ₱10.424 million (See Annex K.2)
are not utilized as of December 31, 2019.
These conditions might pose a risk to LGU in its capacity to maximize revenues
needed to deliver the basic quality services to its target clientele, the general public.
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In view thereof, we recommended that Management:
a. Direct the LEE management to review its Business Plan and its operation
including management, staffing, risk analysis, marketing and sales
pursuant to DBM Local Budget No. 111 dated June 10, 2016, Section 5.3 of
the Manual on the Setting up and Operation of Local Economic
Enterprises;
b. Prepare contract on Lease Rental Agreement with tenants specifying

details of terms and conditions to protect the interest of both parties;
c. Submit Ordinance/SP Resolution creating as LEE the Upgraded Market in

Pueblo de Panay and other facilities for rental;
d. Recommend for the updating of the Revenue Code Ordinance on LEEs,

specifically on the rates and unit of measures considering that the
ordinance took effect January 1, 2011;
e. Procure the needed facilities to ensure desirable services to its clients by

utilizing the appropriated funds for Capital Outlay of LEEs;
f. Integrate in the proposed budget the acquisition of equipment and

improvement of LEE’s facilities as contemplated in Section 5.1 of DBM
Local Budget Circular No. VI dated June 10, 2016, Manual on the Setting-up
and Operation of Local Economic Enterprises which prescribes that profits
and income derived from LEE operation shall be applied to following
priorities;
f.1 First, cost of improvement, repair and related expenses of the LEE;
f.2 Second, return of advances received by the LEE to the General
Fund (GF); and
f.3 Any excess shall form part of the GF.
g. Instruct the City Administrator to review the LEE activities to ensure

liability, profitability and sustainability of its operations so that quality
services can be assured that will benefit the public.

Management Comment:
The Roxas City Government is already undertaking measures for the improvement
of services and generation of additional revenues. The following are the actions to be
undertaken by the LGU upon approval of Revised Revenue Code Ordinance by the
Sangguniang Panlungsod:
1. Revision of stall rental rates and other fees (already being discussed at the
session of SP and will be known in the coming days);
42
2. Upon implementation of the new rates, the LGU will require stall owner to sign
contracts and will be renewed annually;
3. To require the four LEEs to submit estimated cost for renovation of

improvements and quotation for acquisition of equipment/s, if necessary; and
4. To review and do inventories of the following:
 Inventories of number of units (stalls) that are unoccupied or abandoned on

four LEEs.
 Require to submit quotation for the renovation of stalls.
 Require to submit quotation of cost for the repair and maintenance of existing
equipment.
 Encouraged the City Government to utilize the appropriation for the repairs
and renovation and construction.
 To include in the budget all expenses (salary, repairs, construction, etc.) in
the respective LEEs budget.
Property Plant and Equipment (PPE)
6. Report on the Physical Count of Property, Plant and Equipment (RPCPPE) was
not submitted to the Audit Team, thus, resulted in difficulty in ascertaining the
completeness and correctness of the PPE account balance (net of
depreciation) amounting to ₱1.369 billion as of December 31, 2019 contrary to
the Manual on the New Government Accounting System (NGAS) for Local
Government Units (LGUs), Volume I and Volume II and COA Circular No. 92-
386 dated October 20, 1992.
Section 57 of the Manual on the NGAS for LGUs, Volume II, provides that the Report
on the Physical Count of Property, Plant and Equipment shall be used to report the
physical count of property, plant and equipment by type as of a given date. It shows
the balance of property and equipment per cards and per count and
shortage/overage, if any.
The instructions in the use of the prescribed form of RPCPPE states that the latter
shall be prepared yearly in four copies and shall be certified correct by the Inventory
Committee, attested by the representative of the Auditor concerned and approved by
the Head of the Agency.
Section 124 of the Manual on the NGAS for LGUs, Volume I, provides:
“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.”
(underscoring ours)
43
Further, Section 156 of COA Circular No. 92-386 dated October 20, 1992 which
prescribes the Rules and Regulations on Supply and Property Management in the
LGUs, states:
“Annual Inventory of Supplies or Property.- The local chief executive

shall require an annual physical inventory of all supplies or property of
the local government unit as of December 31, of each year, to be
conducted by office or department by a committee of three (3)
consisting of the representative of the local chief executive as
chairman and the general services officer, municipal or barangay
treasurer, as the case may be, and the supply accountable officer of
the department or office concerned, as members. The inventory report
shall be submitted to the local chief executive and copy furnished the
provincial, city or municipal auditor concerned.”
It was noted that the City conducted physical inventory as of June 30, 2019 and the
corresponding report was received by the Office on September 3, 2019. The physical
inventory had been conducted only by the GSO and not by a committee of three (3)
in selected departments and the corresponding report was not consolidated and not
reconciled with the accounting records to make necessary adjustments if there are
discrepancies noted.
The City was unable to prepare and submit the RPCPPE to the Audit Team in order
to ascertain the validity or existence of the assets and the completeness and
correctness of PPE records totaling ₱1.369 billion (net of depreciation) as of
December 31, 2019, as shown in the table below:
Account General Fund SEF Trust Fund Total

Land and Land
89,170,059.24 8,095,051.61 0.00 0
Improvements
Infrastructure
339,939,857.36 3,231,249.72 0.00 0
Assets
Buildings and
514,846,819.80 61,666,188.83 0.00 0
Other Structures
Machinery and
149,948,085.90 4,576,970.56 0.00 0
Equipment
Transportation 123,493.97 0.00 0
40,513,388.21
Equipment
Furniture,
Fixtures and 9,080,254.39 3,618,968.40 0.00 0
Books
Construction in
116,975,485.98 9,211,408.26 16,849,355.94 0
Progress
Other PPE 338,189.23 418,904.85 0.00 0
Total 0 00 0 0
It is emphasized that conduct of inventory and preparation of report thereon could

provide information as to the condition, location, custodianship of assets, among
others. This could aid management in coming up with decisions as to procurement,
repairs and other asset management activities.
44
The non-submission of the reconciled RPCPPE renders it difficult to ascertain the
existence, condition, completeness and correctness of the reported balance of the
various PPE accounts.
up with concerned officials of the City and partially implemented.
a. Prepare and submit the RPCPPE to the Audit Team not later than
January 31 of each year in compliance with the above-cited provisions. The
RPCPPE should be certified correct by the Inventory Committee, approved
by the Head of the Agency and reconciled with the accounting records to
make necessary adjustments if there are discrepancies noted; and
b. Expedite the inventory-taking in accordance with the following prescribed

procedures:
b.1 Creation of Inventory Committee;

b.2 Property Identification and Coding by the Inventory Committee;
b.3 Issuance of Acknowledgment Receipt for Equipment (ARE) to employee
receiving the property; and
b.4 Preparation and submission to COA of prescribed Inventory Reports.

No. 2020-003 dated February 17, 2020 for the foregoing observations and
recommendations.
Management Comment:
The Management has submitted the RPCPPE as of December 31, 2019 to the Audit
Team on June 2, 2020.
Auditor’s Rejoinder:
The RPCPPE received by the COA on June 2, 2020 was not consolidated, not
certified correct by the Inventory Committee, not approved by the Head of the
Agency and not reconciled with the accounting records to make necessary
adjustments if there are discrepancies noted.
45
20% Development Fund (DF)
7. Programs, projects, and activities (PPAs) funded by 20% Development Fund

(DF) were not fully implemented/utilized due to lapses in prioritizing,
monitoring and evaluating the implementation thereof contrary to the
provisions of Presidential Decree (P.D.) No. 1445, DILG and DBM Joint
Memorandum Circular (JMC) No. 2017-1 dated February 22, 2017, DILG MC No.
99-66 dated April 23, 1999 and Republic Act (R.A.) No. 7160, thus, resulted in
unmet targets and deprived the constituents of possible socio-economic
development and environmental management outcomes that could be derived
therefrom.
Section 2 of P.D. No. 1445 provides, among others, 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.
DILG and DBM JMC No. 2017-1 dated February 22, 2017 provides the updated
guidelines on the appropriation and utilization of the 20% of the Annual Internal
Revenue Allotment (IRA) for development projects. It states that all development
projects to be funded under the 20% Development Fund (DF) shall contribute to the
attainment of desirable socio-economic development and environmental
management outcomes of the LGU, and shall partake the nature of investment or
capital expenditures.
Further, Section 5.0 thereof provides that:
“It is the responsibility of every local chief executive to ensure that the
20% DF is optimally utilized to help achieve desirable socio-economic
development and environmental outcomes of the LGU.
The utilization of the 20% DF, whether willfully or through negligence,

for any purpose other than those expressly prescribed by law or public
policy shall be subject to the sanctions provided under RA No. 7160
and other applicable laws.”
Section II. 5 of DILG MC No. 99-66 dated April 23, 1999 provides that any reverted
or unexpended balance of the 20% DF during the year shall be re-appropriated to
finance only those development PPAs identified to be funded under the 20% DF for
the ensuing year.
Section 109(5) of RA No. 7160 provides the functions of Local Development Council
(LDC) which is to coordinate, monitor, and evaluate the implementation of
development programs and projects.
Section 455 (b.2) of the same RA on the Powers and Duties of the City Mayor
provides in part that:
46
“Enforce all laws and ordinances relative to the governance of the city
and in the exercise of the appropriate corporate powers provided for
under Section 22 of this Code, implement all approved policies,
programs, projects, services and activities of the city xxx.”
(Underscoring ours)
Verification and analysis of appropriation and utilization of the 20% DF and

implementation of the programs/projects/activities (PPAs) funded by the said fund
revealed that:
1. The savings/unexpended balances (including the amount of unimplemented

PPAs) of previous years totaling ₱51.855 million were not re-appropriated to
eligible development PPAs, as shown below:
Calenda Savings/Unexpended No. of *Amount of

r Year Balances Unimplemented Unimplemented
PPAs PPAs
2015 16,801,675.05 2 15,716,508.00
2016 16,056,477.32 7 15,128,246.92
2017 9,854,793.52 9 8,051,738.00
2018 9,142,032.95 7 6,330,881.00
Total 0 0 0
*See: Annex L.3
As can be gleaned in the table above, a total of 25 previous years PPAs with
an aggregate amount of ₱45.227 million remained unimplemented as of
December 31, 2019.
2. A total of ₱67.110 million or 58 percent was utilized out of the ₱116.389 million
appropriation in CY 2019 leaving an unutilized balance of ₱49.279 million or 42
percent (Annex L.1). It showed that 19 out of 38 prioritized development PPAs
were fully and partially implemented (Annex L.2). Other PAPs for the year were
not implemented like concreting and rehabilitation of some barangay roads,
and construction/rehabilitation of buildings and other structures, hence,
depriving the constituents of the desired benefits that could have been derived
therefrom;
3. PPAs totaling ₱2.370 million (as shown in the table below) are described in
generic terms with no project details, such as the specific project name,
location, schedule of implementation, and expected output, thus, the PPAs
could not readily be implemented or measured in terms of accomplishment.
Programs/Projects/Activities Category Appropriation

1. Installation of Street/Road Lighting CO 1,500,000.00
System
2. Other Development Projects CO 869,689.00
Total 0.00
4. Procurement of Equipment, Furniture and Fixtures for Manpower/Skills Training

Center at Barangay Inzo Arnaldo Village, Roxas City amounting to ₱1.000
47
million is not allowed to be included in appropriations or charged against the
20% DF as provided in Section 4.0 of DILG and DBM JMC No. 2017-1 dated
February 22, 2017;
5. Projects costing over ₱5.000 million were implemented by administration

notwithstanding the conditions/limitations set forth in Section 3.3 (a to e) of
Annex A of GPPB Resolution No. 018-2006 which provides that prior authority
shall be obtained from the Secretary of Public Works and Highways, if the
project cost is ₱5.000 million up to ₱20.000 million (Annex L.1). A written
justification dated November 15, 2019 from the City Engineer was received by
the Office asserting that the LGU had technical capabilities and enough
construction equipment and tools to undertake PPAs by administration;
6. For on-going projects, duly paid construction materials were not visible on
project sites upon inspection despite being fully delivered and received by the
Project Engineer/Project In-Charge as substantiated by delivery receipts.
Further, in some instances, persons who received the deliveries have not filled
up their printed names in the delivery receipt, hence, could not be easily
identified.
Notice of Suspension (NS) Nos. 2019-009-100(2019) to 2019-013-100(2019)

all dated October 15, 2019 totaling ₱10.470 million were issued for paid
materials which were remained undelivered as of the date of NS, as shown
below:
Date NS No. Amount

10/5/2019 2019-009-100(2019) 4,492,335.85
10/5/2019 2019-010-100(2019) 3,031,372.86
10/5/2019 2019-011-100(2019) 1,011,092.36
10/5/2019 2019-012-100(2019) 1,224,296.22
10/5/2019 2019-013-100(2019) 710,853.04
Total 0
Justification letters all dated January 21, 2020 from the Project Engineer/
Project In-Charge were received by the Office on January 21, 2020 stating that
undelivered/unused construction materials were stored in the suppliers
premises considering that the LGU had no existing warehouse where to
keep/store the procured construction materials/supplies and would be delivered
anytime upon the request of the Project Engineer/ Project In-Charge. These
contentions were supported by the suppliers’ certifications all dated January 20,
2020, except Solidus Construction Supply, acknowledging that the said
materials were in their custody.
7. Some paid deliveries of sands, gravels and aggregates were not duly
supported by original invoices reflecting the plate number, date and time of
delivery, and stating the actual volume of delivery as provided in the Handbook
on Property and Supply Management System;
8. Construction materials were not taken up as inventory and were directly

debited to Construction-In-Progress account, hence, issuances thereof
48
supposedly from stock could not be accounted for as issued as the same were
directly received by the Project Engineer/Project-In-Charge. Thus, there was no
check and balance on the utilization of construction materials and the Project
Engineer/Project In-charge has the complete control of deliveries without
rendering the Report of Supplies and Materials Issued (RSMI) on the utilized
portion;
9. No warehouse facility was utilized to store the construction materials. Likewise,

no person was designated to take proper custody;
10. Deviation of the project on Concreting of Six Lane Access Roads to

Roxas City Integrated Transport Terminal and New Market with Side Walks
and Bicycle Lanes were not duly supported by Change Order and As Built Plan
when completed;
11. Posting of relevant information or announcements in the form of

tarpaulins/signboards of the infrastructure project implementation were not
undertaken/ visibly seen upon inspection in the project site as prescribed in
Item 2.2.3 of COA Circular 2013-004 dated January 30, 2013 (Annex L.2); and
12. Delayed implementations of projects were noted even if construction materials

were delivered due to adaption of pakyaw contracting system and poor
monitoring of project implementation.
To ensure project implementation, adequate planning in the formulation of PPAs

ready for implementation is required and necessary coordination with concerned
departments should be undertaken to monitor and strengthen implementation of all
priority PPAs contained in the Annual Investment Plan (AIP).
The LGU should closely monitor and evaluate the implementation of the identified
and prioritized development PPAs funded by 20% DF so that any cause of
suspension or problems that would delay the project implementation would be
immediately addressed and more desired benefits would be delivered to the
constituents as planned.
a. Review unimplemented PPAs in CYs 2015-2019 and ascertain viability of

implementation for the ensuing year, otherwise, re-appropriate or
reprogram for more viable and significant PPAs in accordance with the
socio-economic development and environmental management
requirements provided by DILG and DBM JMC No. 2017-1 dated February
22, 2017;
b. Properly plan the timely implementation and expedite execution of all

identified and prioritized development PPAs funded by 20% DF to
guarantee the prompt accomplishment of the same;
c. Refrain from formulating PPAs which are not among those enumerated by
the provisions in the utilization of the 20% DF;
49
d. Secure prior authority from the Secretary of Public Works and Highways on
the implementation by administration of PPAs costing over ₱5.000 million
up to ₱20.000 million, otherwise, PPAs are to be undertaken through
straight contract;
e. Direct the Project Engineer/Project In-Charge who signed in the delivery

receipt and the person who signed the Inspection and Acceptance Report
to account for the utilization of construction materials used through
preparation of RSMI;
f. Direct the supplier concerned to immediately deliver the unused

construction materials for the on-going PPAs to the GSO for proper
accounting, custody and safekeeping considering that these had been duly
paid and for the PPAs that were stopped without necessary stop order
notice. Otherwise, refund the amount paid;
g. Institute appropriate control and strengthen the monitoring of on-going

projects by administration through pakyaw system. For construction
materials which were already paid, the issuances/utilizations should be
reported through RSMI by the Project Engineer/Project In-Charge;
h. Closely monitor the implementation of PPAs to ensure that the interest of

the LGU and the government in general are safeguarded, expected
deliverables are submitted timely and payments are made only after
satisfactory acceptance of deliverables by authorized person and
compliance is made with payment conditions;
i. Submit the original invoices reflecting the plate number, date and time of
delivery, and stating the actual volume of the delivery of the paid sands,
gravels and aggregates;
j. Require the City Accountant to record the Construction Materials as

Inventory when purchased/acquired for issuance to projects, transfers or
other disposal to monitor the utilization;
k. Submit the Change Order and As Built Plan for the deviation of the
completed project on Concreting of Six Lane Access Roads to Roxas City
Integrated Transport Terminal and New Market with Side Walks and Bicycle
Lanes; and
l. Require the City Engineer to publicize in the form of tarpaulins/signboards

all infrastructure projects to be implemented in their project location.
The Audit Team issued Audit Observation Memorandum (AOM) No. 2020-006 dated
February 19, 2020 for the foregoing observations and recommendations.
50
Fund Transfers from National Government Agencies (NGAs)
8. The lack of monitoring in project implementation of fund transfers resulted in

accumulation of Due to National Government Agencies account amounting to
₱28.737 million contrary to the provision of COA Circular No. 94-013 dated
December 13, 1994 and COA Circular 2012-001 dated June 14, 2012, deprived
the intended recipients of the benefits that could be derived therefrom; and the
non reversion of unexpended balances to the Unappropriated Surplus of the
General Fund or its return to source agency deprived the latter of funds that
can be used for other priority projects.
COA Circular No. 94-013 dated December 13, 1994 provides the rules and
regulations in the grant, utilization and liquidation of funds transferred to
implementing agencies. Under Section 6 of the Duties and Responsibilities of
Implementing Agency, it is specifically provided:
“6.7 Return to the SA any unused balance and upon completion of

project.”
Likewise, COA Circular No. 2012-001 dated June 14, 2012 under Section 3.0
provides the documentary requirements for the Fund Transfer, as follows:
“3.1 Transfer of Funds to Implementing Agency
Fund transfer should be properly taken up in the books of both

agencies, used only for the purpose intended, and properly
accounted and reported (COA Circular No. 94-013 dated
December 13, 1994).
Xxx
3.1.2 Implementations and Liquidation
Implementing Agency:
 Necessary supporting documents depending on the
nature of transactions
 Copy of MOA/Trust Agreement
 Copy of OR upon receipt of funds transferred
 Copy of OR issued by the Source Agency evidencing
refund of unexpended/unutilized balance of fund
transfer.
3.1.3 Liquidation
Source Agency:
 Report of Check Issued and Report of Disbursements
certified correct by the Accountant, approved by the
Head of IA, and duly audited by the Auditor of the IA
 Copy of OR issued for the Refund of
unexpended/unutilized balance of fund transferred.”
51
Due to National Government Agencies account amounting to ₱28.737 million is
composed of long outstanding account balances of ₱11.851 million and prior years
fund utilized taken up as CIP totaling ₱16.886 million. This indicates unfinished
projects not yet turned over to various source agencies. The delayed/non-
implementation of these projects necessitates the conduct of closer project
monitoring to ensure proper and timely completion as provided in COA Circular No.
94-013 for the benefit of the intended recipients (See Annex M.1).
The Audit Team evaluated the utilization/implementation of Fund Transfers under

Due to NGAs account as of December 31, 2019 and observed the following:
Project Implementations – Due to NGAs
1. Available programmed funds intended for various purposes amounting to ₱5.752

miilion were held idle and unutilized, resulting in non-delivery of basic economic
services to intended beneficiaries (See Annex M.2);
2. Unused balances of completed projects in prior year were not returned/remitted

back to the Source Agencies pursuant to Section 3.1.2 of COA Circular No. 94-013
and likewise the unexpended balances of cash proceeds of trust receipts are not
reverted to the Unappropriated Surplus of the General Fund. A total of ₱1.286
million (see Annex M.3) is subject for reversion;
3. Delayed implementation of Roxas City Riverside Promenade with project duration

of 120 Calendar Days. It was also noted that no Memorandum of Agreement
pertaining to the Local Government Support Fund (LGSF) downloaded to Roxas
City amounting ₱8.434 million, received on July 23, 2019 was prepared. Thus the
terms and conditions for the implementation of said project could not be readily
ascertained. A total of ₱6.880 million was disbursed as of December 31, 2019 with
a reported project status of 89.22 percent.
The project was undertaken by Administration with project cost of ₱8.434 million.
Public bidding was conducted on October 15, 2019 for the construction materials
with an Approved Budget for the Contract (ABC) of ₱5.646 million while Notice to
Proceed (NP) was dated November 13, 2019. The labor component was through
Pakyaw Contracting System. The expected date of completion would be on
February 2020.
Mechanism/
Fund Name/Title of Date Project Status
Mode of OR No. Fund Received Disbursement
Source Project Received as of 12/31/19
Implementation
Riverside
Promenade,
FY 2018
Lapu-lapu By Administration 1482234 7/23/2019 ₱8,434,039.00 ₱6,879,810.68 89.22%
LGSF-AC
Street, Roxas
City
4. Copy of the Memorandum of Agreement (MOA) or Trust Agreement was not

forwarded to the Office of the Auditor considering that the Disbursement Vouchers
are not yet submitted.
52
The delayed/non-implementation of some programs/projects were due to the
following:
1. Lack of coordinated monitoring activities by focal person; and
2. Infra-projects were undertaken by Administration, where procurement activities

take time.
It must be emphasized that prior years’ fund transfers which has been long
outstanding need to be validated by the City Accountant if it is completed or
abandoned, so that necessary actions can be made. The nature of fund transfer
entails immediate implementation based on its purpose. Hence, timely and efficient
utilization of funds should be observed.
a. Enhance closer monitoring activities on fund transfer and direct the Focal
Person and Project Proponent Department Head to implement immediately
without delay funded programs of all on-going/not started projects to attain
the program’s objectives;
b. Direct the City Accountant to conduct regular periodic verification and

reconciliation of the unexpended balance of fund transfers Due to NGAs
account, determine if there are concerned creditors with valid claims, and
cause the immediate return/remittance of any unexpended amount of fund
transfer after project completion pursuant to COA Circular 94-013; and
c. Direct the City Accountant to book-up completed projects in the General

Fund at acquisition cost.

Gender and Development (GAD)
9. Non-submission of annual Gender and Development (GAD) Accomplishment

Report for CY 2019 rendered difficulty in validating the agency’s
implementation of GAD related programs, activities and projects, and
determining if these funds were utilized for intended purpose contrary to
Department of Budget and Management (DBM), National Economic and
Development Authority (NEDA), and National Commission on the Role of
Filipino Women (NCRFW) Joint Circular (JC) No. 2004-1 dated April 5, 2004 and
COA Circular No. 2014-001 dated March 18, 2014.
Sections 4.8 and 5.2 of DBM, NEDA and NCRFW JC No. 2004-1 dated April 5, 2004
state that:
“4.8 Agencies shall prepare their annual GAD accomplishment

reports for the previous year that contain actual
53
accomplishments vis-à-vis targets as well as the amounts
utilized for the achievement of such.
5.2 The agency GAD Focal Point shall prepare the annual GAD
accomplishment report in coordination with the agency budget
officers following the format prescribed in Annex B to be
approved by the agency head.
The annual GAD accomplishment report shall be accompanied

by the following: (1) brief summary of the reported program or
project; (2) abstract of reported studies; (3) copies of reported
policy issuances; and (4) curriculum vitae of trainers or
consultants of the reported training/s.
Xxx.”
Item V of COA Circular No. 2014-001 dated March 18, 2014 also provides:
“Responsibility of the Audited Agency.- The Audited agency shall

submit a copy of the Annual GAD Plan and Budget (GPB) to the COA
Audit Team assigned to the agency within five (5) working days from
the receipt of the approved plan from the PCW or their mother or
central offices, as the case maybe. Likewise, a copy of the
corresponding Accomplishment Report shall be furnished the said
Audit Team within five (5) working days from the end of January of the
preceding year.”
For CY 2019, the City set aside ₱40.270 million representing five percent of the
₱805.399 million amount budget. However, the CY 2019 GAD Accomplishment
Report was not submitted to the Audit Team as required by the above-mentioned
laws, rules and regulations. A follow-up letter dated January 15, 2020 was sent to the
agency.
Per inquiry with the Management, it was alleged that the said report could not be
submitted due to non-reconciliation of accomplishment vis-a-vis the utilized fund
which will be provided by the Accounting Department.
Due to the non-submission of accomplishment report, there was difficulty in

validating the agency’s implementation of GAD related programs, activities and
projects, and if these funds were utilized for the intended purposes. Likewise,
absence of strict observance of the guidelines and procedures in the implementation
of GAD-related activities as well as proper monitoring and coordination with all
concerned offices and reports to oversight agencies, would defeat the goal and the
purpose for which GAD advocacy was established.
a. Require the GAD Focal Person to submit the GAD Accomplishment Report
for CY 2019 to the Audit Team for review/validation; and
54
b. Henceforth, monitor GAD activities and require the GAD Focal Person to
perform constant reconciliation with accounting records to come up with a
reliable GAD report and submit a copy of the corresponding
Accomplishment Report to the Audit Team within five working days from
the end of January of the preceding year in strict compliance with the
aforementioned laws, rules and regulations.
Management Comment:
The Management has submitted the CY 2019 GAD Accomplishment Report to the
Audit Team on March 4, 2020.
Dormant Accounts
10. Dormant receivable accounts with an aggregate amount of ₱10.311 million as

of December 31, 2019 remained in the books and are already long overdue
contrary to the provision of Philippine Public Sector Accounting Standards
(PPSAS) and COA Circular No. 2016-005 dated December 19, 2016, thus,
affecting the reliability and fair presentation of the subject accounts in the
financial statements.
Philippine Public Sector Accounting Standards No. I paragraph 27 provides among

others, that the financial statements shall present fairly the financial position,
financial performance and cash tellers of an entity. Fair presentation requires the
faithful representation of the effects of transactions, other accounts, and conditions in
accordance with the definition and recognition criteria for assets, liabilities, revenue
and expenses set out in PPSAS.
COA Circular No. 2016-005 which provides the guidelines and procedures on the
write-off of Dormant Receivable Accounts, Unliquidated Cash Advances and Fund
Transfers of National Government Agencies, Local Government Units and
Government Owned and Controlled Corporations defines Dormant Receivable
Accounts as accounts which balances remained inactive or non-moving in the books
of accounts for 10 years or more and where settlement/collectability could no longer
be ascertained.
Verification of accounting records showed that various receivable accounts have

long been outstanding which were carried in the books, affecting the presentation of
accounts in the Financial Statements (FS).
The accounts totaling ₱10.311 million have been dormant for 10 years or more and
neither their collectability nor their settlements are assured. These accounts are
broken down in the next page:
55
Account Amount Reference
1. Loans Receivable-Others 6,595,417.59 Annex N.1
2. Due from NGAs 2,145,033.29 Annex N.2
3. Due from GOCCs 105,258.44 Annex N.2
4. Due from LGUs 508,033.82 Annex N.2
5. Other Receivables 957,021.06 Annex N.3
Total 000
Due from NGAs in General Fund amounting ₱145,033.29 as of December 31, 2018
has been past due for the last 10 years and lacks documentary support. The
remaining balance in the Trust Fund amounting ₱2.000 million represents the
Receivable from the Department of Public Works and Highways for amount
advanced by the General Fund on November 17, 2008 covered by SARO# A-08-
00926 with Sub Allotment 2008-05-003814 dated May 28, 2008 of which No Notice
of Cash Allocation was received and its collectability cannot be assured. The fund
was intended for the following projects:
Project Cost
A. Construction/Installation of Road Lighting fixture along San Roque ₱ 849,712.00
Street
B. Construction/Installation of Road Lighting fixture along San Roque 577,890.00
Extension
C. Construction/Installation of Road Lighting fixture along Fuentes Drive 572,398.00
TOTAL ₱ 2,000,000.00
It is also pointed out that PPSAS No. I Paragraph 7 defines assets as resources
controlled by an entity as a result of past events and from which future economic
benefits or service potential are expected to flow to the entity. Considering that these
receivables do not provide future economic benefit to the LGU, the same should be
evaluated for possible write-off from the books.
To ensure compliance in the write-off of dormant accounts, proper reconciliation be

made. The specific guidelines and procedures in the write-off of dormant accounts as
provided in Sections 6, 7 and 8 of COA Circular No. 2016-005 should be observed,
such as, but not limited to:
1. Conduct of regular monitoring, analysis and preparation of schedules of

receivables;
2. Conduct of periodic verification, analysis and validation of existence of

receivables; and
3. Filing of request for write-off with supporting documents to concerned COA unit.
a. Direct the City Accountant to initiate the write-off of dormant accounts and
undertake the specific guidelines and procedures as provided in Sections
6.0, 7.0 and 8.0 of COA Circular No. 2016-005;
56
b. Conduct periodic monitoring and analysis of the dormant accounts for
issuance of demand letter and initiate write-off if the borrowers are
insolvent, could no longer be located and dead; and
c. Pending application/approval of request for write-off, appropriate

disclosure be made on the Notes to Financial Statements.
Submission of Accounts
11. Delay in the submission of financial reports and records by the City
Accountant contrary to the pertinent provisions of the Manual on the NGAS for
LGUs, Volume I, Presidential Decree (P.D.) No. 1445, the Revised Penal Code
and Commission on Audit (COA) Circular No. 95-006 dated May 18, 1995,
hindered the timely auditorial examination of accounts, hence, errors and
misstatements in the financial reports might not be immediately detected and
corrected.
Relevant sections of the Manual on the NGAS for LGUs, Volume I, provide that:
“Section 70 - Monthly pre-closing trial balance for each fund shall be

submitted not later than the twentieth day after the end
of the month. It shall be supported by the Status of
Appropriations, Allotments, and Obligations, for both
the current and continuing appropriations.
Section 73 -Interim reports are financial statements required to be

prepared at any given period or at a financial reporting
period shorter than a full financial year, without closing
the books of accounts. The following interim financial
statements and the Notes to Financial Statements shall
be prepared and submitted quarterly:
a. Balance Sheet;
b. Statement of Income and Expenses; and
c. Statement of Cash Flows”
Pertinent provisions of P.D. No. 1445 provide that:
“Sec. 100 -Disbursing officers in any government agency shall render

monthly reports of their transactions pursuant to
regulations of the Commission to be submitted not later
than the fifth day of the ensuing month to the auditor
concerned who shall conduct the necessary examination
and audit within thirty days from receipt thereof.
Sec. 107 -In the absence of specific provision of law, all accountable
officers shall render their accounts, submit their vouchers,
and make deposits of money collected or held by them at
57
such times and in such manner as shall be prescribed in
the regulations of the Commission.”
Furthermore, an accountable officer is liable for his failure to render accounts to the
Auditor pursuant to the provision of Article 218 of the Revised Penal Code:
“Any public officer, whether in the service or separated therefrom by

resignation or any other cause, who is required by law or regulation to
render account to the Insular Auditor, or to a provincial auditor and
who fails to do so for a period of two months after such accounts
should be rendered, shall be punished by prision correctional in its
minimum period, or by a fine ranging from 200 to 6,000 pesos, or
both.”
Corollary thereto, pertinent provisions of COA Circular No. 95-006 dated

May 18, 1995 requires the time and mode of rendering of account as follows:
“6.03 -Accountable Officers shall submit the records receipts,

disbursements, expenditures, operations, and all other
transactions, together with the supporting documents, to the
Chief Accountants in the manner and within the timeframe
prescribed in existing rules and regulations.
6.05 -The official involved in the daily recording of transactions in the

books of accounts shall turn-over the receipts and the
disbursements records with all paid vouchers and documents
evidencing the transaction to the Auditor within ten (10) days
from date of receipt of said documents.”
Annex O presents the status of submission of the following financial reports and
accounts by the City Accountant to the Office of the Auditor:
1. Monthly Pre-closing Trial Balances;
2. Interim Financial Statements consisting of the Statement of Financial Position,

Statement of Financial Performance and Statement of Cash Flows; and
3. Monthly accounts comprising of the following reports:
 Reports of Checks Issued and the supporting Check Disbursement Vouchers;

 Reports of Collections and Deposits and the supporting Official Receipts
issued; and
 Reports of Cash Disbursements and the supporting Payrolls for salaries and
wages.
The attached schedule also disclosed the following deficiencies in the submission of
reports and accounts, to wit:
1. Submission of monthly pre-closing Trial Balances were delayed at an average of

23 days; and
58
2. Monthly records of receipts and disbursements were not submitted to the Audit
Team within the prescribed period.
It should be noted that Reports of Collections and Deposits, Reports of Checks

Issued and Reports of Cash Disbursements are required to be prepared and
recorded daily by the City Treasurer pursuant to Sections 29, 43 and 46 of the
Manual on the NGAS for LGUs, Volume I. Subsequently, these reports shall be
immediately submitted to the City Accountant for recording in the Journal Entry
Voucher.
The non-compliance of the City Accountant to submit the above-cited required

reports and records within the prescribed due date pursuant to the aforesaid laws,
rules and regulations hindered the timely auditorial examination of the same, hence,
errors and misstatements might not be immediately detected and corrected.
We recommended that the City Accountant:
a. Submit immediately the financial reports and accounts listed in Annex A

which are already overdue; and
b. Henceforth, strictly comply with the aforementioned laws, rules and

regulations on the timely submission of financial reports and records of
receipts and disbursements to facilitate auditorial review.
January 28, 2020 for the foregoing observations and recommendations.
Special Education Fund (SEF)
12. Memorandum of Agreement (MOA) and Approved Project Expenditures or

Estimated Expenses indicating the project objective and expected output were
not submitted as basic documents provided in COA Circular No. 2012-001
dated June 14, 2012 upon fund transfer to Department of Education (DepEd),
Roxas City Division amounting to ₱6.336 million, hence, the validity of
expected output could not be determined upon release of the fund transfer to
the Implementing Agency.
Sections 3.1.1 and 3.1.3 of COA Circular No. 2012-001 dated June 14, 2012
prescribed the documentary requirements for Fund Transfers, to wit:
“3.1.1 Transfer
Source Agency:
□ Copy of MOA/Trust Agreement
□ Approved Project Expenditures or Estimated Expenses
indicating the project objective and expected output (for
other projects)
3.1.3 Liquidation
Source Agency:
59
□ Copy of OR issued for the refund of unexpended/unutilized
balance of fund transferred.”
During the course of our audit, it was noted that Fund transfers to DepEd Roxas City
Division for the period January 1 to December 31, 2019 amounting to ₱6.336 million
(see table below) did not comply with the basic documentary requirements as
provided in Section 3.1.1 of COA Circular No. 2012-001, specifically the MOA and
Approved Project Expenditures or Estimated Expenses, hence, verification if said
funds were utilized for the intended purpose could not be made.
Date Check Payee Particulars Amount

No.
11/20/19 1838996 DepEd – Transfer of Fund for the Sports 270,000.00
Division of Program and Other DepEd
Roxas City Related Activities (District Level)
Roxas City Related Activities (Division Level)
Roxas City Related Activities (School Level)

Roxas City Related Activities (Provincial
Level)
12/03/19 1839004 DepEd – Transfer of Fund for the 400,000.00
Division of Educational Research
Roxas City
Division of Skills/Talent Competition
Roxas City
12/23/19 1839013 DepEd – Transfer of Fund for the payment 300,000.00
Division of of expenses pertaining to the
Roxas City operation of Schools/Learning
Centers (Assistance for the
Operation and Maintenance of
SPED Schools)
12/23/19 1839014 DepEd – Transfer of Fund for the Annual 3,000,000.00
Division of Financial Assistance for
Roxas City Logistics, Utilities and
Communication Allowance of
DepEd Personnel
12/26/19 1839015 DepEd – Transfer of Fund for the School 700,000.00
Division of Monitoring and Evaluation
Roxas City Activities
12/30/19 1839019 DepEd – Transfer of Fund for the Monthly 150,000.00
Division of Financial Assistance for Utilities
Roxas City and Transportation of 10
Teachers of Olotayan is
@1,500.00/month for 10 months
60
Total 6,336,000.00
In view of the foregoing, we recommended that Management:
a. Submit the MOA and Approved Project Expenditures or Estimated

Expenses for fund transfers made during the year; and
b. Refrain from granting fund transfers to other agencies without the required
documents as provided for in Sections 3.1.1 and 3.1.3 of COA Circular
No. 2012-001 dated June 14, 2012.
The Audit Team issued Audit Observation Memorandum (AOM) No. 2020-010
(2019) dated February 27, 2020 for the foregoing observations and
recommendations.
13. The failure of the Management to implement/utilize programmed approved

Local School Board (LSB) expenditures totaling ₱11.000 million contrary to
Section 2 of Presidential Decree (PD) No. 1445 and Republic Act (RA) No. 7160,
deprived the target clientele of the basic essential services for the
improvement of the educational system.
Section 2 of Presidential Decree (PD) No. 1445 states:
“Declared Policy. 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.”
Further, Section 17(a) of Republic Act (RA) 7160 states:
“Local government units shall endeavour to be self-reliant and shall

continue exercising the powers and discharging the duties and
functions currently vested upon them. They shall also discharge the
functions and responsibilities of national agencies and offices
devolved to them pursuant to this Code. Local government units shall
likewise exercise such other powers and discharge such other
functions and responsibilities as are necessary, appropriate, or
incidental to efficient and effective provisions of the basic services and
facilities enumerated therein.“
Examination of the Special Education Fund utilization revealed that Management

failed to implement/utilize programmed approved Local School Board (LSB)
expenditures for Calendar Year 2019 totaling ₱11.000 million, as shown in the next
page.
61
Major Final Output/ Programs, Year Amount Status of
Projects and Activities Appro- Implementa-
priated tion
62
Assistance for the operation and 2019 200,000.00 Implemented
1
Maintenance of ALS
School partnership and linkages 2019 500,000.00 Implemented
2
activities
Sub-total 700,000.00
Financial subsidy for School 2019 350,000.00 Not Implemented
1
Health Programs
Financial Subsidy for TVL 2019 1,500,000.00 Not Implemented
2
Programs
Reading Materials for Library 2019 1,500,000.00 Not Implemented
3
Hub and mobile library
Reproductions of Instructional 2019 200,000.00 Not Implemented
Materials in all learning areas for
4
Elementary and Secondary
Schools
Sports/Skills training for 2019 150,000.00 Not Implemented
5
Implementers
Subsidy to NGAs for Senior High 2019 3,000,000.00 Not Implemented
6
School Tools and Equipment
Subsidy for SPA Instructional 2019 300,000.00 Not Implemented
7
Equipment
Construction, repair and 2019 3,000,000.00 Not Implemented
8 maintenance of school building
and other facilities
9 Titling of School Sites 2019 1,000,000.00 Not Implemented
Sub-total 11,000,000.00
Grand-total 11,700,000.00
In addition, materials for the Repair and Maintenance of School Building and Other
Facilities at Brgy. San Jose, Roxas City charged to CY 2018 LSB Budget were
already fully delivered per Delivery Receipt Nos. 222-227,229-234 and were
consequently, paid through Check No. 1838945 dated March 4, 2019 amounting to
₱3.416 million. However, upon examination of the Project Status Report (Annex P), it
revealed that it was only 51 percent as to its actual accomplishment as of December
31, 2019. Further, unused construction materials were not visible on the project site
during the conduct of ocular inspection. The inability of the Local School Board to
implement and/or prosecute the projects deprived the target clientele of the basic
essential services for the improvement of the educational system. Moreover, failure
to execute the same programs/projects within reasonable time exposes properties to
losses due to deterioration on started construction and/or unwanted loss for
abandoned projects, hence, efficiency, economy and effectiveness in the operations
cannot be ensured.
In view of the foregoing, we recommended that Management:
63
a. Submit justification as to why the implementation of the programmed SEF
projects for the year were either non-implemented or halted and identify
causes of non-implementation and/or delay;
b. Direct the Project Engineer to submit valid affidavit as to the status of the
unused materials delivered, if applicable, on the given projects, its
whereabouts and why such materials were not received in full as per
Delivery Receipt;
c. Implement immediately, when possible, the programs, projects and/or

activities programmed for the year based on the Annual Implementation
Plan to reduce risk of loss of property;
d. Monitor, account and secure all government properties to minimize, if not

totally eliminate, possible losses.
e. Ensure a more strategic and efficient utilization of appropriated funds for

priority programs, projects and activities and reinforce the budgeting
priorities by preparing the SEF Budget based on the DepEd approved
School Improvement Plan (SIP) and Division Education Development Plan
(DEDP); and
f. Direct the Local School Board to identify the specific projects charged to
Capital Outlay in its LSB Budget to include the specific project, nature of
project, location and the approved budget.
The Audit Team issued Audit Observation Memorandum (AOM) No. 2020-010
(2019) dated February 27, 2020 for the foregoing observations and
recommendations.
Management Comment:
The City Engineer commented with regard to the Repair and Maintenance of School
Building and Other Facilities at Brgy. San Jose, Roxas City that the status of its
accomplishment was only 51 percent as of December 31, 2019 due to the reason
that there was a verbal instruction from the Chief Executive to temporarily stop the
construction of the project, hence, the City Engineer’s Office could not process its
liquidation papers considering that there was an unexpended amount intended for
the labor component which is still due.
As to the unused paid construction materials, the LGU does not have existing
warehouse where to keep/store the procured materials. The City Engineer’s Office
has an internal agreement with the supplier that the said materials will be deposited
at the supplier’s bodega for safe keeping. Upon advise by the Chief Executive to
resume the work, the supplier will then deliver the materials which are temporarily
stored at their bodega.
B. COMPLIANCE WITH TAX LAWS
64
The Roxas City Government had complied with the withholding of taxes from employees
compensation. Likewise, gross money payments to suppliers or dealers of goods and
services were subjected to the applicable withholding taxes and the same were remitted.
C. REMITTANCES
C.1. GSIS Remittances
The Roxas City Government regularly remitted the monthly contributions and loans
premiums deducted from the LGU’s officers and employees for CY 2019.
C.2. PhilHealth and HDMF (Pag-IBIG) Remittances
In CY 2019, the LGU deducted and remitted the PhilHealth premiums and Pag-
IBIG contributions pursuant to R.A. No. 7875, otherwise known as the “National
Health Insurance Act of 1995”, and R.A. No. 9670, otherwise known as “Home
Development Mutual Fund Law of 2009”, respectively.
C.3. Loan Amortizations
The LGU regularly paid its loans, with outstanding balances totaling
₱65.509 million as of December 31, 2019, to the Land Bank of the Philippines
(LBP), as shown below:
Purpose of the Total Amortization Outstanding

Bank
Loan Amount Principal Interest Balance
LBP Construction of
Integrated Public 49,611,999.84 31,417,309.56 12,227,042.10 18,194,690.28
Transport
Terminal
LBP Construction of 59,996,168.00 35,542,923.18 12,138,995.44 24,453,244.82
Sanitary Landfill
LBP Acquisition of
various brand new 31,900,000.00 9,039,239.79 1,975,606.24 22,860,760.21
heavy equipment
Total 0 0 0 00
D. STATUS OF SUSPENSIONS, DISALLOWANCES AND CHARGES AS OF

DECEMBER 31, 2019
65
The total suspensions, disallowances and charges found in the audit of various
transactions of City of Roxas as of December 31, 2019 is ₱25.753 million, based on the
Notice of Suspension (NS)/Notice of Disallowance (ND)/Notice of Charge (NC) issued by
this Commission, as summarized hereunder:
Beginning This Period Ending

Balance NS/ND/NC NSSDC Balance
Notice of Suspension 348,800.00 27,743,202.75 2,339,341.05 25,752,661.70
Notice of Disallowance 0.00 0.00 0.00 0.00
Notice of Charge 5,668.26 0.00 5,668.26 0.00
Total 354,468.26 0 0 00
66

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PART II- AUDIT OBSERVATIONS AND

A. FINANCIAL AND COMPLIANCE

1. Cash advances totaling ₱10.798 million remained unliquidated/unsettled as of

“Section 4.1.2 - No additional cash advances shall be allowed to any

Section 4.1.3 - A cash advance shall be reported on as soon as the

Section 5.7 - When a cash advance is no longer needed or has not

Moreover, Section 14 of EO 298 also provides in part that:

This Circular shall serve as the demand required under

Analysis on balances of Cash Advances as of December 31, 2019 disclosed the

1.1. Balances of cash advances showing a total of ₱10.798 million remained

The high percentage of long outstanding unliquidated advances suggests, among

Settlement of cash advances, particularly those granted in previous years, would

a. Require the immediate liquidation/settlement by concerned

b. Cause the withholding of salaries of officials and employees, effective

c. Refrain from granting additional cash advances to officers and employees

The Audit Team issued Audit Observation Memorandum (AOM)

2. Disbursements for operating expenses totaling ₱15.368 million were made

“Ideally, cash should be handled under the general principles of the

In practice, however, there are certain instances when it may be very

In addition, Section 93 of Presidential Decree (PD) 1445 provides:

“To whom warrants or checks payable. Warrants chargeable to

Our audit of disbursements for CY 2019 revealed that payment of supplies,

We recommended that Management:

a. Refrain from drawing a cash advance in lieu of direct payment to suppliers

b. Strictly comply with COA Circular 97-002 and RA 9184 insofar as

The Audit Team issued Audit Observation Memorandum (AOM)

Local Disaster Risk Reduction and Management Fund (LDRRMF)

A. 70% of the 5% LDRRMF may be utilized to procure early warning

Original Supplemental Final

70% allocation 28,188,971.30 28,188,971.30 12,079,701.07 43% 16,109,270.23

2. Ten identified/planned PPAs for the 70% fund were not

3. Appropriations totaling ₱2.270 million per supplemental budgets and

b. Effectively, efficiently and economically implement the priority

The Audit Team issued Audit Observation Memorandum (AOM)

1. The implementation of the election banning period restricted the implementation

5. The onslaught of Typhoon Tisoy and Ursula contributed to the non-

4. Lack of budgetary allocation to support established measures and guidelines

Section 16, Chapter III of RA No. 9003 reads that:

“The province, city or municipality, through its local solid waste

(2) Monitor the implementation of the City or Municipal Solid Waste

(3) Develop the specific mechanics and guidelines for the

Enforcement of SWM regulations is under the Philippine National Police (PNP).

1. To enforce collection of residual waste only in all brangays;

Lack of budgetary allocation to support the SWM program implementation was

Fund Source PPA Amount

The following observations in collection services of Solid Waste were noted:

To ensure efficient and effective system of SWM, adequate planning in the

We recommended that Management require the SWM Board to:

a. Come up with a comprehensive proposed budget for the SWM Program

b. Intensify SWM collection activities to assess compliance on solid waste

c. Direct the Solid Waste Management Board to formulate concrete measures

 Lack of Garbage Truck

The Audit Team issued Audit Observation Memorandum (AOM)

Local Economic Enterprise (LEE)

5. Existing practices undermine the LGU’s capacity to maximize its revenue

Market generated revenue of ₱27.238 million show significant increase of 25.21

Review of LEE operation, revealed that:

1. The present stall rates is based on SP Ordinance No. 048-2010 dated

3. Non-submission of Ordinance/SP Resolution creating the Upgraded Market in

4. The following policies need to be reviewed due to non-adherence to sound

 Control of incoming goods at designated gates;

6. Appropriated funds of LEE for Capital Outlay in CY 2019 amounting to ₱4.435

b. Prepare contract on Lease Rental Agreement with tenants specifying

c. Submit Ordinance/SP Resolution creating as LEE the Upgraded Market in