Status of Implementation of Prior Years’ Audit Recommendations Of the eight (8) audit recommendations contained in the 2008 Annual Audit

Report, three (3) were fully implemented, and five (5) were not implemented, the details below:
Audit Observation
Ref. AAR 2007

Management Action

Status of Implementation and Reason for Partial/ Non-Implementation

1. Collections were continuously Finding not deposited intact and within No. 1 the reglamentary period, in apparent disregard of Section 28 of COA Circular No. 92-382 and of past Audit Observation Memorandum bearing on the same deficiency.

The Accountable Officer concerned did not render his comment as of the preparation of this report.

Unimplemented Collection totaling to P1,146,580.73 remained undeposited as of December 31, 2009.

The Municipal Treasurer is advised to adhere with the above cited regulations and reminded of the provision stated in Section 22 d, of omnibus rules implementing book V of Executive Order 292, for being notoriously undesirable will be meted the penalty of dismissal.
2. The Municipal Accountant Finding failed to prepare up-to-date No. 2 monthly bank reconciliation statements as required in Section 74 of Presidential Decree 1445 thus, casting doubt on the unreconciled balances amounting to P6,981,510.22.

It is advised that the Bank Reconciliation Statements be prepared monthly to ascertain the accuracy of cash-in-bank account and avoid the same lapses done in the previous years. The readiness of a Bank Reconciliation Statement is a vital tool for the management in forecasting inflows and outflows of cash for the year.

The official concerned assured as that they will do their best to work back in order to determine those reconciling items and the preparation of the monthly bank reconciliation statement.

Unimplemented The Municipal Accountant once again not able to prepare the required bank reconciliation statement. Reiterated this year 2009

23

Audit Observation

Ref. AAR 2007

Management Action

Status of Implementation and Reason for Partial/ Non-Implementation

3. The absence of monthly Finding reconciliation between the No. 3 Accounting and Treasury Department for cash account resulted to numerous discrepancy between balance per cashbook and balance per ledger The management is advised to at least reconcile cash account once a month to address any discrepancy immediately, and reminded that the provision of internal control is a responsibility of the Local Chief Executive. 4. Various Accountable Finding Officers failed to liquidate cash No. 4 advances amounting to P3,823,554.34 on time contrary to the provision of COA Circular 97-002 that may result to loss and/or misuse of fund. The accountable officer are advised to comply strictly to COA Circular No. 97-002 on the proper granting of cash advances to safeguard government funds from possible loss and/or misuse. Immediate settlement of long overdue cash advances is demanded to avoid filing of appropriate legal action to enforce liquidation.

The concerned officer promised that the necessary action shall be taken up to correct the deficiency noted in the ensuing year.

Implemented Monthly reconciliation between the Accounting and Treasury was made during the year.

The management Implemented assured us that Cash advances last our year were settled. recommendation shall strictly adhered to.

24

Audit Observation

Ref.

Management Action

Status of Implementation and Reason for Partial/ NonImplementation

5. The management failed to Finding records and reconciles inventory No. 5 of supplies and materials purchased and issued for the year ended, contrary to provision of Section 114 of the Manual on the New Government Accounting System. The management is advised to follow strictly the provisions of Section 114 of the New Government Accounting system, and a regular reconciliation of records of accountable form. 6. The management failed to Finding render complete report of No. 6 inventory of Property, Plant and Equipment amounting to P56,362,250.67 contrary to Section 124 of the New Government Accounting System, thus casting doubt on the propriety of the account. Once again the official concerned is reminded that the preparation of inventory report is an indispensable obligation of the management and therefore advised to religiously prepare the report and submitted to the office of the auditor on or before January 31, of each year to ascertain existence and correctness of the reported asset.

The management accepted such lapses and promised to be corrected on the ensuing year.

Unimplemented Again the Municipality failed to records as inventory the total purchase of supplies and materials during the year.

It was promised that diligent efforts shall be taken up to reconcile the report and submit it to the auditor for review and verification

Unimplemented The municipality still failed to submit the required complete physical inventory of Property, Plant and Equipment during the year.

25

Audit Observation

Ref.

Management Action

Status of Implementation and Reason for Partial/ NonImplementation

7. The management had a practice Finding of hiring a private lawyer No. 7 contrary to the provision of COA Circular 98-002. The management is advised to stop the hiring of the services of a private legal counsel and strictly follow the provision of COA Circular 98-002 and Section 481 of Republic Act No. 7160. 8. Untimely passage of appropriation ordinance to non Finding implementation of infrastructure No. 8 project chargeable against 20% development fund of 2007 amounting to P7,260,000.00 depriving the constituents of enjoying the benefits of the investment project. As the title of the budget implies “Annual Investment Plan for 2007”. The implementation/utilization of the said appropriation should have been on the fiscal year as appropriated. Failure to implement on the last quarter of the year, the approved budget on the part of the local executive, and a failure to enact Sangguniang Resolution on time deprived your constituents of the benefits of the development project. With the facts as stated above we recommend that annual appropriation be approved as mandated under Section 323 of the Local Government Code and implemented as stated in Section 4.0 of DILG and DBM joint Memorandum Circular. 26

The management promised that hiring of the services of a private legal council shall be stop and follow the provision of COA Circular 98002 and Section 481 of RA No. 7160.

Unimplemented The practice was again repeated this year 2009

Of the Fully Implemented infrastructure project chargeable against 20% development fund of 2007 amounting to P7,260,000.00 96% was fully implemented and 4% was already on going.

Sign up to vote on this title
UsefulNot useful