PART III-STATUS OF IMPLEMENTATION

OF PRIOR YEARS’ AUDIT RECOMMENDATIONS

 PART III – STATUS OF IMPLEMENTATION OF PRIOR YEARS’
AUDIT RECOMMENDATIONS

Out of the twelve (12) audit recommendations in the CY 2016 Annual Audit
Report including prior years, three (3) were implemented, eight (8) were partially
implemented, and one (1) was not implemented, presented as follows:
Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
1. The account balances of the CY 2016 Already had Partially
reciprocal accounts-Due AAR, reconciliation Implemented
from LGU and Due to LGU Observation yet accounts
No. 1, page
as appearing in the books of were still not
50
the Provincial Government fully
of Isabela and the reconciled Reiterated in
Municipality of Aurora, Part II of this
Isabela disclosed a report
discrepancy amounting to
P31,660,268.00.

We recommended that the

Municipal Accountant
reconcile the LGU’s records
with that of the Provincial
Government of Isabela to
establish the correct balances
of the reciprocal accounts.

2. The Memorandum of CY 2016 The LGU Partially

Agreement (MOA) dated AAR, Aurora thru a Implemented
December 11, 2000 between Observation Resolution
No. 2, page yet with
LGU Aurora, Isabela and No. 21, Series
50
the Department of of 2017 had continues
Agriculture on the fund requested the payment made
transfer of P2,300,000.00 for Department of
the procurement of tractor Agriculture
was not fully adhered to, as Regional Field
follows: Office
 Payments made as of (DARFO

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
December 31, 2016 RO2) to grant
amounted to extension of
P1,035,000.00 only which amortization
is less than 50% of the
of the said
required amortization
and way behind the loan up to the
maturity date of time the
February 11, 2011.; and remaining
balance shall
 The recipient be fully paid
cooperative in Aurora,
by EMPC
Isabela pays the
amortization directly to through LGU
DA-RFU 02 instead of to Aurora with
LGU Aurora, Isabela an annual
which should remit the amortization
payment to the source of
NGA.
P230,000.00
We recommended that
management submit an
amendment to the
Memorandum of Agreement
dated December 11, 2000
between LGU Aurora, Isabela
and the Department of
Agriculture duly agreed upon
by the parties concerned,
i.e. allowing the cooperative
to pay directly to DA-RFU 02
instead of to the LGU.

Also, we recommended that

the LGU make proper
representation with DA-RFU
02 for the extension of the
payment period, otherwise,
demand full payment of the
overdue account from the

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
cooperative to settle its
liability to the source NGA.
3. Unutilized fund transfers CY 2016 Complied as Partially
from National Government AAR, to the return of Implemented
Agencies totaling Observation the amount.
No. 3, page The condition
P163,190.75 for completed
52
programs, projects and still exists hence
activities were not yet reiterated in
returned/refunded as of Part II.
December 31, 2016 contrary
to Item 6.7 of COA Circular
No. 94-013 dated December
13, 1994.

We recommended that
management return/refund the
unutilized balances of the fund
transfers to the source
National Government
Agencies to fully liquidate the
same, thus, reduce the liability
of the LGU.

4. The accounts of the LGU for CY 2016 Partially

the year 2016 were not AAR, Implemented.
submitted to the Office of Observation
No. 4, page The submission of
the Auditor within the
54 accounts in 2017,
period prescribed under though had
existing rules and improved, was
regulations, hence the delay still delayed.
in the post-audit of the Hence, reiterated
transactions and the possible in Part II of this
suspension or disallowance report.
thereof including the
possible imposition of
administrative disciplinary

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
sanctions.

We reiterated our
recommendation that the
Municipal Accountant ensure
timely submission of accounts
to facilitate the audit of the
transactions as well as to
avoid the possible suspension
or disallowance of the same
and the imposition of
administrative sanctions.

5. The Monthly Report on the CY 2016 Partially

Sources and Utilization of AAR, Implemented
the Local Disaster Risk Observation
No. 5, page The condition
Reduction and Management
55
Fund (LDRRMF) of the still exists hence
Municipality was not reiterated in
submitted to the Office of Part II.
the Auditor within the
period prescribed under
COA Circular No. 2012-002
dated September 9, 2012.

We recommended that the

Local Chief Executive direct
the Municipal Accountant and
Local Disaster Risk Reduction
and Management Officer to
prepare and submit,
respectively, the Monthly
Report on Sources and
Utilization of the LDRRMF
within the period prescribed
under COA Circular No.

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
2012-002. Correspondingly,
the report for December 2016
should be submitted for
verification.

6. Copies of Purchase Orders CY 2016 Not

(POs) and Government AAR, Implemented.
Contracts including their Observation
No. 6, page
supporting documents were
56
not submitted to the Office
of the Auditor within the The condition
period prescribed under still exists hence
COA Circular No. 2009-001 reiterated in
dated February 12, 2009, Part II.
hence, the delay in the
systematic and effective
review thereof.

We recommended that
management submit the
purchase orders, government
contracts and their supporting
documents to the Office of the
Auditor within the period
prescribed under COA
Circular No. 2009-001 to
facilitate the systematic and
effective review thereof.

7. Disbursements totaling CY 2016 Partially

P29,924.50 for fuel and oil AAR, Implemented
used in the hauling of Observation
No. 7, page
garbage were not supported
57
with complete
documentation contrary to
existing rules and

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
regulations, thus, the
validity and propriety of the
transactions could not be
relied upon.

We recommended that
management ensure that all
procurement activities be
supported with complete
documentation as prescribed.
It is emphasized that complete
documentation does not only
mean the submission of
documents but also the
completeness and consistency
of the details thereof.

As to the disbursements
amounting to P29,924.50, the
lacking and the necessary
corrective documents should
be submitted to ascertain the
validity and propriety of the
thereof. Otherwise, the said
transactions may be
suspended or disallowed in
audit.

8. Disbursements for CY 2016 Implemented

supplemental feeding AAR,
totaling P276,300.00 were Observation
No. 8, page
not supported with complete
59
documentation contrary to
existing rules and
regulations, thus, the
validity and propriety of the

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
transactions could not be
relied upon.

We recommended that the

Municipal Social Welfare and
Development Officer be
required to submit the (1) list
of children fed and their
profile for the 20 feeding
days; (2) menu for the 20
feeding days; and (3)
corrective/explanatory
documents, if any, for the
other deficiencies noted to
fully ascertain the validity and
propriety of the
disbursements. Otherwise, the
same may be suspended or
disallowed in audit.

It is emphasized that complete

documentation does not only
mean the submission of
documents but also the
completeness and consistency
of the details thereof.

9. Various expenses totaling CY 2016 Implemented

P169,785.46 incurred during AAR,
the 2016 Area II Athletic Observation
No. 9, page
Meet were not supported
61
with complete
documentation contrary to
existing rules and
regulations, thus, the
validity and propriety of the

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
disbursements could not be
relied upon.

We recommended that
management ensure that all
procurements chargeable
against the Special Education
Fund be supported with
complete documentation as
prescribed. It is emphasized
that complete documentation
does not only mean the
submission of documents but
also the completeness and
consistency of the details
thereof.

As to the disbursements
totaling P169,785.46, the
lacking and the necessary
corrective/explanatory
documents, if any, be
submitted to ascertain the
validity and propriety thereof.
Otherwise, the transactions
may be suspended or
disallowed in audit.

10. The Municipality has not yet CY 2016 Partially

established a sanitary AAR, Implemented
landfill which is not Observation
No. 10, page
compliant with the pertinent
64
provisions of Republic Act
No. 9003 dated January 26,
2001, otherwise known as
the Ecological Solid Waste

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
Management Act of 2000.

We recommended that
management prioritize the
provision of a sanitary landfill
for the LGU in compliance
with the pertinent provisions
of the Solid Waste
Management Act.

11. Financial assistance CY 2016 Due to Partially

amounting to P50,000.00 AAR, GOCCs under Implemented
from Land Bank of the Observation Trust Fund
No. 11, page
Philippines for amounting to
65
rehabilitation due to Super P50,000.00
typhoon Lawin remained pertains to the Reiterated in
unutilized as of December financial Part II of this
31, 2016 thereby depriving assistance report.
the typhoon victims of the received from
benefits they could have Land Bank of
received out of the said fund. the Philippines
for Super
We recommended that the Typhoon
Municipal Mayor utilize the victims/rehabil
financial assistance of itation with
P50,000.00 for the purpose it partial
was intended. Thereafter, the disbursement
amount should be liquidated of P15,000.00,
to reduce the liability of the hence, a
LGU. balance of
P35,000.00.
The said
financial
assistance had
not utilized
and be

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
refunded to
source agency
because
victims from
LGU Aurora
were reported
at DSWD-
RO2 as
donor/who
gave the
financial
assistance.

12. Information and publicity CY 2016 Implemented

on the on-going AAR,
infrastructure projects of Observation
No. 12, page
the LGU were not done due
66
to the non-posting of
signboards at the project
locations in violation of the
pertinent provisions of COA
Circular No. 2013-004 dated
January 30, 2013, thus,
defeating the purpose of
promoting transparency.

We recommended that the

Municipal Engineer’s Office
post or display a tarpaulin
or signboard for all its projects
at the project location
pursuant to COA Circular No.
2013-004, thus, promote
transparency.

Also, the Local Chief

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 Status of
Audit Observations/ Reference Management Implementation/
Reason for
Recommendations Actions
Partial/Non
Implementation
Executive shall inform the SA
and ATL concerned within 10
days after the appropriate
signboard and/or public
notices are already posted as
basis for validation.

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