INTRODUCTION

A. Introduction

The barangay was created in 1974 by virtue of Presidential Decree No. 557. The passage
of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, which took
effect on 1 January 1992 further strengthened and institutionalized and has given the barangay
more power and financial resources necessary in its operations.

As the basic political unit of the government, the barangay serves as the primary planning
and implementing unit of government policies, plans, programs, projects and activities in the
community. Its mandate is to deliver essential services to its constituents involving peace and
order, health and sanitation, education and other basic services in conformity with the National
Government’s thrust for sustainable social and economic growth.

B. Organizational Set-Up

Barangay 701 has total personnel complement of 67 as of 31 December 2018 broken

down as follows:

Elective Officials:
Felibus C. Papa Jr. Punong Barangay
Edison N. Zabala Barangay Kagawad
Lilian R. Papa Barangay Kagawad
Jocelyn A. Bongcahig Barangay Kagawad
Lyn S. Dangan Barangay Kagawad
Meriam J. Gil Barangay Kagawad
Carlito L. Fiel Barangay Kagawad
Antonia B. Grafil Barangay Kagawad

Appointive Officials/employees:
Jeffrey O. Tungol Barangay Secretary
Gertrudes C. Gapuz Barangay Treasurer

Tanod 20
Lupon 5
Barangay Admin 1
Barangay Consultant 1
Barangay Affair 1
Barangay Liaison 1
Day Care Teacher 1
Rescue Team 5
Barangay Health Worker 1
Barangay Driver 2

1
 Fireman 9
Streetsweepers 10

Total 35

C. Financial Profile

C.1 Income

For calendar year (CY) 2018, Barangay 701 generated a total income of Php12.078
million (an increase of Php1.035 million compared to the CY 2017 income of Php11.043
million) from all sources, representing 112.38 percent of the estimated income.

Details of estimated and actual collections for CYs 2017 and 2018 is as follows:

Estimated Income and Actual Collections

For the Years 2017 and 2018

2017 2018
Sources Actual Under (Over) Actual Under (Over)
Estimated Estimated
Collections Estimated Collections Estimated
Internal Revenue
Allotment 1,859,162 1,859,162 - 1,996,769 1,994,619 2,150
Share from Real Property
Taxes 9,469,686 9,172,136 297,550 8,739,092 10,071,696 (1,332,604)
Grants, Aids and Subsidies 12,000 12,000 - 12,000 12,000 -
Total 11,340,848 11,043,298 297,550 10,747,861 12,078,315 (1,330,454)

C.2 Appropriations and Expenditures

In CY 2018, the Barangay appropriated the total amount of Php10.748 million (a

decrease of Php592,987 or 5.23 percent as compared to the previous year of Php11.341
million). The corresponding expenditures amounted to Php10.290 million or 95.74 percent of
this appropriation and higher by 23.58 percent than that incurred in CY 2017. The details are
presented as follows:

The details are presented as follows:

Estimated Income and Actual Collections

Comparative Analysis
For CYs 2017 and 2018

2017 2018
Sources Appropriation Unexpended Appropriation Unexpended
Expenditures Expenditures
s Appropriations s Appropriations
Personal Services 3,889,323 3,862,068 27,255 4,153,218 4,007,470 145,748

2
 Maintenance and Other
Operating Expenses
4,017,440 4,465,002 (447,562) 4,968,468 6,282,772 (1,314,304)
Capital Outlay 3,434,085 -1 3,434,085 1,626,175 -2 1,626,175
Total 11,340,848 8,327,070 3,013,778 10,747,861 10,290,242 457,619

C.3 Financial Statements

The assets, liabilities, equity, income and expenses of Barangay 701 covering CYs
2017 and 2018 is shown in the table below.

Year Assets Liabilities Equity Income Expenses

39,880,590.1 11,043,297.9
2017 7 3,784,920.57 36,095,669.60 6 8,327,069.74
42,201,940.5 12,078,314.5
2018 4 3,414,284.57 38,787,655.97 2 10,290,241.73

D. Accomplishments

In CYs 2017 and 2018, the Barangay 701 implemented the following major programs,
projects and activities, among others:

1. Installation and maintenance of CCTVs;

2. Clean and Beautification Program;
3. Drainage Declogging - to prevent flooding due to clogged waterways;
4. Maintenance of Peace and Order;
5. Procurement of medicines;
6. Procurement of sports materials for various sports activities;
7. Distribution of school supplies to students from indigent families; and
8. Distribution of Christmas grocery items (Gift Giving Project).

E. Scope of Audit

The audit covered the CYs 2017 and 2018 accounts and operations of the Barangay 701.
The objectives of the audit are to: (a) recommend agency improvement opportunities; (b)
determine compliance with existing laws, rules and regulations; and (c) determine the extent of
implementation of prior years’ audit recommendations. The audit was limited due to the lack of
documentations of material transactions as discussed in this report. On account of this limitation,
this Audit Report is without prejudice to the subsequent issuance of audit
observations/disallowances/suspensions.

1
CY 2017 Expenditures for CO cannot be presented due to non-submission of CSACB by the OCAT
2
CY 2018 Expenditures for CO cannot be presented due to non-submission of CSACB by the OCAT