STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATIONS

Of the 77 audit recommendations contained in the Calendar Years (CYs) 2017, 2016 and 2015 Annual
Audit Reports (AARs), 24 or 31 percent were fully implemented, 39 or 51 percent were partially
implemented and 14 or 18 percent remained unimplemented.

Reason/s for
Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

Reiterated in 1. The reported cash account

Finding No. 42 balance of P932.242 million
Page 39 is unreliable due to
unrecorded disbursement in
the amount of P19.772
million and unidentified
reconciling items appearing
in the Bank Reconciliation
Statements (BRSs) for CYs
1999 to 2003 amounting to
P5.893 million. Likewise,
the net difference of P4.420
million between the book
and bank balances cannot be
ascertained due to the
absence of the BRSs and
supporting documents.

We reiterated prior year’s

recommendations that:

a. The City Treasurer Partially The CAD, City Coordination

coordinate with the Implemented Treasury with depository
depository banks as Department (CTD) bank is
regards to the documents and City Legal ongoing.
to support the unadjusted Department (CLD)
and unidentified are in close
reconciling items under coordination in
the General Fund; determining the
exact amount and
those liable for the
unreconciled items.

It was found, based

on initial
investigation, that
several of the
persons responsible
were already
deceased.

Meanwhile, the
CLD was able to
obtain a certification
from the Bureau of

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

Fire Protection
(BFP). As of date,
an incident report of
fire damage by CTD
had been submitted
to CAD for
reference.

b. The City Mayor through Fully

the CLD demand Implemented The CTD had
justification/ information already coordinated
from the City Treasurer with CAD on the
on the unjustified delay in submission of
the submission of documents to
disbursement vouchers support
which are not supported disbursement
with documents; vouchers.

c. The City Accountant:

 Assign personnel to Partially

prepare the BRS on a Implemented There is only one The preparation
monthly basis for all personnel assigned of bank
depository accounts to do the bank reconciliation is
pursuant to COA reconciliation but in addition to
Circular No. 96-011; last April 2019, the regular
and another personnel function of the
was designated to designated
help in the bank employee, thus
reconciliation. latter cannot
render his/her
full time to
prepare the
same.
Consequently,
there is still
delay and not
all accounts
have
corresponding
BRS.
 Effect adjusting entries Not
immediately in the implemented Retrieval of
books of accounts for documents is still Management
reconciling items ongoing could not still
already identified. provide the
documentary
references
needed to
support or

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

identify the
reconciling
items.

Reiterated in 2. The Property, Plant and

Finding No. 1 Equipment (PPE) account is
page 39 unreliable due to
unreconciled book balance
of P1.628 billion with the
Report on the Physical
Count of PPE (RPCPPE) of
P1.670 billion, showing a
difference of P42.197
million.

We reiterated the last year’s

recommendations that:
Partially The CAD and Reconciliation
a. The Inventory Committee Implemented General Services for the
complete the Department (GSD) remaining
reconciliation of the had been unreconciled
RPCPPE with the continuously PPE are still on-
accounting and property reconciling its going.
records; records to have a
reliable PPE account
and RPCPPE.

Partially The CAD already -do-

b. The CAD effect the Implemented recorded in the
adjustments, if any, to books the
correct the overstatement/ amount/account
understatement of PPE as which required
a result of the adjustments noted in
reconciliation of RPCPPE the reconciliation of
with the accounting and PPE account and
property records. RPCPPE.

CY 2017 AAR 3. Real Property Tax (RPT)

payments by Globe
Telecommunication, Inc.
from CYs 2011 to 2013
totaling P5.831 million, with
the annotated words “paid
under protest” which were
recorded under the Trust
Fund account instead of the
General Fund (GF),
remained unadjusted as of
year-end despite the failure
of the taxpayer to file a
written protest pursuant to

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

Section 252 of RA 7160.

We recommended that:

a. The CAD effect the Not The Management No follow-up

adjusting entry/ies to Implemented held a meeting last action was
correct the Other Payables July 4, 2018 with made by the
and Deferred Credits and Globe Telecom Inc. Management to
Income accounts; regarding the enforce
settlement of real collection for
property taxes. the assessed
amount of
b. The CTD – It was verified that liability.
there was no proper
 Transfer the fund from Not protest from Globe -do-
the Trust Fund account to Implemented Telecom Inc. and
the General Fund they are liable to the
account; and amount assessed.

 Enforce collection of the Not Based on records, -do-

unpaid balance of the
total assessed amount of
RPT.
Implemented the amount paid was
based only on mere
assessment of Globe
Telecom Inc. The
entire assessment by
the City Assessment
Department will be
enforced to collect
unpaid balance of
RPT.

CY 2017 AAR 4. The balance of the Due to

NGAs account of P179.448
million is unreliable due to
the inclusion of the
unutilized amount of the
fund transfer from the
Department of Public Works
and Highways (DPWH) and
the Department of Health
(DOH) amounting to
P101.514 million and
P4.106 million, respectively,
which did not reconcile with
the Liquidation Report and
Confirmation Letter and/or
Utilization Report with a
difference of P94.304
million and P3.135 million,
respectively. Furthermore,
the unutilized balance was

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

not returned to the source

agencies.

We recommended that
Management:

a. Direct the CAD to Fully The unutilized

identify the cause of the Implemented balances per record
difference on the recorded vis-a-vis per
unutilized amount in the confirmation letter
books vis-à-vis the were already
confirmation from DPWH reconciled and
and effect the necessary effected necessary
adjustments to book adjusting entries.
unrecorded liquidation
and/or unrecorded
utilization of financial
assistance-PBM, if any;
and
Fully The unutilized
b. Direct the City Treasurer Implemented balances were
to return the unutilized already transferred
balance to the DPWH and to DOH.
DOH.

CY 2017 AAR 5. The Construction in

Progress -Building and
Other Structures account
balance of P97.010 million
in the Trust Fund remained
unadjusted despite the
completion of Pagamutang
Bayan ng Malabon (PBM)
project in CY 2016.

We had recommended that Fully The CAD, upon

the CAD make appropriate Implemented receipt of the
adjusting entries for the necessary
transfer of the CIP - documents from the
Building and Other City Engineering
Structures account to the Department (CED),
Building and Other already made the
Structures account in view necessary adjusting
of the completion of the entries in the books
PBM project. to reflect the
completion of the
PBM.

CY 2017 AAR 6. The overpayment/ refund of

employees’ salary and

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

withholding taxes totaling

P481,526.26 has remained
unsettled/ unadjusted
contrary to Section 4
Paragraph (1) and (4) of PD
1445.

We had recommended that Partially The CAD is Reconciliation

the CAD deduct from the Implemented seriously making is still ongoing.
salaries of the concerned efforts to recover the
personnel the amounts of over/double
over/ double payments. payments.
Henceforth, institute
appropriate measures to The corrective
minimize if not eliminate measures placed
the occurrence of over/ were effective and
double remittances or the CAD will
overpayment of salaries. continue to
implement the same
to further strengthen
its internal control.

CY 2017 AAR 7. The double remittances of

taxes withheld to BIR
amounting to P3.030 million
was erroneously booked-up
to the Due from NGAs-BIR
account instead of recording
as Due from Officers and
Employees-specific
employee/s account, thus,
overstating the Due from
NGAs-BIR and understating
the Due from Officers and
Employees account by the
same amount.

We recommended that:

a. The CAD-

 Effect adjusting Partially As of date, certain Reconciliation

entry/ies to correct the Implemented amount has already is still ongoing.
balances of the Due recovered from the
from NGAs-BIR and BIR and effected
Due from Officers and necessary adjusting
Employees to present entries.
fairly the account
balances in the books;
and

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

 Institute internal Fully The CAD and CTD

control measures to Implemented have put in place
prevent recurrence of payroll internal
double remittance of control procedures
withholding taxes; and to avoid double
remittances.

b. The City Treasurer exert Partially As of date, certain Certain amount

efforts for the immediate Implemented amount has already is deducted
recovery of the over recovered from the from monthly
remittance to BIR. BIR and was BIR
credited to the remittances.
City’s BIR
and Pag-IBIG
accounts.

CY 2017 AAR 8. The Cash Advances

pertaining to Petty Cash
Fund (PCF) totalling
P239,983.66 was not
liquidated and the unused
balance was not returned to
the City Treasurer at year-
end, contrary to Section 48,
Volume I of the NGAS
Manual for LGUs.

We had recommended that Fully The AO liquated the

the City Treasurer and the Implemented cash advance and
City Accountant strictly returned the excess
enforce compliance by all amount of P11,000
accountable officers for the as supported by OR
liquidation of their Petty Nos.3685839 and
Cash accountabilities and 3929465.
return to the City Treasurer
all unused cash at the end of The CAD
the year pursuant to Section will continue to
48, Volume 1 of the NGAs strictly enforce the
Manual. compliance of their
AO in the
liquidation of their
petty cash
accountabilities and
the return of unused
cash at the end of
the year.

CY 2017 AAR 9. The City failed to accrue

and remit the mandatory 5%
share of the Metropolitan
Manila Development

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

Authority (MMDA) from

the City’s gross revenue, net
of Internal Revenue
Allotment (IRA), as
required under Section 10(d)
of RA 7924, thereby,
understating the Due to
NGAs by P1.387 million.

We recommended that:

a. The CAD record under Fully The CAD already

the Due to NGAs account Implemented recognized and paid
the difference between the the mandatory 5%
computed mandatory share to the MMDA
MMDA shares vis-a-vis for CY 2018
the amount deducted by amounting to
DBM for said MMDA P5,958,000.00.
shares for CYs 2011 to
2017 in the net amount of
P1,386,814.74; and

b. Management ensure the Fully The CAD had

accrual of 5% of the Implemented started to set-up this
City’s total gross revenue year and the
of the preceding year, net succeeding years the
of the internal revenue Due to NGAs for
allotment, as the City’s the MMDA share,
share in the operations of based on the
the MMDA, and the recommendation of
timely remittance of the COA to avoid
amount to the said agency discrepancy and
pursuant to Section 10(d) already made timely
of R.A. No. 7924. remittances.

CY 2017 AAR 10.The accuracy and validity of

the consolidated balance of
Other Payables account
amounting to P41.365
million could not be
ascertained due to (a)
Erroneously recorded Cost
of Sales and RPT dues of
P1.510 million; (b)
Unrecorded refund of the
redemption price by the City
to the winning bidder during
the auction sales in CY 2014
of P0.686 million; (c)
Understatement of P0.051
million caused by over

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

remittance of loan payments

to the Malabon City
Government Employees
Multi-Purpose Cooperative
(MCGEPC) and to the Land
Bank of the Philippines
(LBP); and (d) Absence of
updated Subsidiary Ledgers
(SLs) to support the long
outstanding balances of
P2.913 million.

We recommended that
Management:

a. Direct the CAD to –

 Prepare necessary Partially The CAD

adjusting entries to Implemented had drawn a detailed
record the Cost of Sales breakdown of the
and RPT dues, and accounts on
transactions pertaining redeemed delinquent
to the redeemed real property.
delinquent real
property; and

 Maintain SL records for Partially The CAD had Updating of SL

Other Payables account Implemented already maintained records is still
(TF) and update the SL but still in the ongoing.
postings in the SLs in process of updating
accordance with Section the records in the
10, Volume II of the prescribed format.
NGAS Manual for
LGUs; and

b. Exert efforts to recover Partially The CAD had Coordination

the over remittances of Implemented exerted all efforts to with MCGEPC
loan payments to recover the over and LBP is still
MCGEPC and LBP from remittances of loan ongoing.
the employees concern or payments to
from the MCGEPC or MCGEPC and LBP
LBP. from the employees
concern or from the
MCGEPC or LBP.

Reiterated in 11.The City does not have an

Finding No. 6, internal audit service/unit
Page 53 that functions in accordance
with the intent of existing
laws and administrative
issuance contrary to

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Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

Sections 2 and 3 of R.A. No.

4177 amending R.A. No.
3456.
Partially The City has created The ordinance
We had recommended that implemented the Interim Malabon is not yet
Management create and City Internal Audit passed.
organize an internal audit Service, pending the
service independent of the passage of the
Accounting Department. Ordinance for the
creation of the
office.

CY 2017 AAR 12.Excess/ unutilized

collections/ income totaling
P450,346.38 from sale of
bid documents and other
income from the conduct of
public bidding were not
reclassified and closed to
equity account in the
General Fund at year-end,
thereby, understating the
Government Equity account
and overstating the Other
Payables-BAC (Bid
documents) account by the
same amount.
Fully The CAD had
We reiterated previous Implemented reclassified and
year’s recommendation that closed to
the City Accountant record the amount
the income earned from the of P450,346.38 to
conduct of public bidding the equity account.
as trust receipts in
accordance with the
provisions
of DBM Circular No. 2004-
5A and transfer the excess
amount to the General Fund
pursuant to the provisions
of DBM Circular No. 2004-
5A.

CY 2017 AAR 13.Payments of honoraria to

Bids and Awards Committee
(BAC) members, Technical
Working Group (TWG) and
BAC Secretariat totalling
P0.765 million were not
supported with documentary

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Observations/ Status of Management
Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

requirements as prescribed
by COA Circular 2012-001,
thus, the correct amount of
honoraria could not be
ascertained.

We had recommended that

the CAD ensure that claims Fully The BAC
for honoraria of BAC Implemented Secretariat had
members, TWG and already attached the
Secretariat are supported EO in the payrolls to
with the required clearly reflect the
documents as provided honoraria for the
under item 5.7.1 of COA BAC and BAC
2012-001 including Office Secretariat
Order and Notice of members.
Awards to establish validity
and propriety of the claims.

CY 2017 AAR 14.The City Assessor and City

Treasurer failed to
implement City Ordinance
No. A10-2016 requiring the
assessment and collection of
ad valorem tax on idle lands,
as a result, income from
Real Property Tax of at least
P10.846 million for CY
2017 was not collected from
the taxpayers/landowners of
idle lands, thereby,
depriving the City of
additional revenues.
Moreover, the List of Idle
Lands was not updated by
the City Assessor in
violation of Section 239 of
RA 7160.

We recommended that:

a. The City Assessor – Fully The City Assessor Verification of

Implemented had already the actual status
 Maintain and keep an identified the actual of land is
updated record of all status of land ongoing
idle lands located within reported based on
the City of Malabon; the actual ocular
inspection on each
property conducted.

Fully The City Assessor

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Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

Implemented had furnished the

 Furnish the Office of City Treasurer the
the City Treasurer with updated record of
an updated record of idle lands
idle lands for imposition
of additional tax in
accordance with Section
239 of RA 7160 and
Section 2B.06, Article
B of City Ordinance
No. A10-2016;

b. The City Treasurer – Partially

Implemented
 Send notice of
assessment to all
owners of idle lands in
the City; and Partially
implemented
 Impose and collect ad
valorem tax on all idle
lands in the City.

CY 2017 AAR 15.The PPE of the City worth

P228.454 million were not
insured against any
insurable risk with the
General Insurance Fund
(GIF) of the GSIS as
required under RA No. 656,
thus, the City may not be
indemnified for any damage
or loss of the said property
caused by fire, earthquake or
other calamity.

We reiterated last year’s

recommendation that
Management direct:
Fully Management The DECS
a. The GSD and the City implemented informed that schools are not
Accountant to insure that the said PPE were for the accounts
all government properties already insured of the City, thus
with the General in 2018 except for the DepEd
Insurance Fund of the other Department of National Office
GSIS against any loss or Education Culture is in-charge of
damage caused by fire, and Sports (DECS) the insurance of
earthquake or other school buildings. the said school
calamity; and buildings.
With the 21 health
centers, an estimated

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Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

amount from GSIS

was already at hand.

Fully The amount had

Implemented been reflected in the
b. The Budget Officer to 2018 supplemental
ensure that appropriate budget.
amount is included in the
budget to cover for the
property insurance
premiums.
Reiterated in 16.Delayed submission of
Finding No. 15, Disbursement Vouchers,
Page 75 Payrolls, Liquidation
Reports, Reports of
Collections and Deposits
and accounting reports
precluded the City Auditor’s
Office from conducting
timely audit of the
transactions and from
promptly informing
Management of the
deficiencies, if any.

We reiterated our last year’s

recommendation that:
Partially The CAD Submission of
a. The CTD, particularly the Implemented committed to reports on the
disbursing officer, submit diligently submit its said timeline is
disbursement vouchers reports on time. still lacking.
and payrolls with
complete supporting
documents; and Partially
Implemented
b. The CAD install measure
that will facilitate the
timely submission of
disbursement vouchers,
payrolls, official receipts,
accounting reports and
financial statements
within the required first
ten days of the ensuing
month.

Reiterated in 17.Various Inter-Agency

Finding No. 17, Payable accounts included
Page 78 unremitted withheld taxes,
contributions, premiums and
loan payments to BIR, GSIS

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Reference Partial/Non-
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Implementation

and Pag-Ibig covering the

period July 2014 to
November 2017 totaling
P4.547 million,
P671,877.13, and
P50,843.39, respectively.
Furthermore, over/double
remittances of taxes and
contribution made to BIR,
GSIS, Pag-IBIG and
PhilHealth totaling
P335,560,45, P22,084.04,
P13,439.08and P2,868.75,
respectively, remained
unsettled/ unadjusted
contrary to Section 4
Paragraph (1) and (4) of
Presidential Decree No.
1445 (PD 1445).

We recommended that:

a. The City Treasurer remit Partially As of date, CAD is Reconciliation

immediately to the BIR, implemented continuously is still ongoing
GSIS, and Pag-IBIG the verifying and
unremitted taxes, reconciling the
contributions and loan City’s account with
payments; the balances
reported to update
b. The Management – and make the
necessary adjusting
 Exert efforts to recover Partially entries and to
the amount due to over/ Implemented recover the amount
double remittances to of over/double
different NGA/ GOCCs remittances.
and overpayment of
employees’ salaries; Recovery from BIR
of the double
 Identify the person who Partially remittances were
caused the over/double Implemented settled by making
remittance or the necessary
overpayment and make remittances due to
him/her accountable accountable
therefor; personnel and had
prepared adjusting
entry/s. The CAD
c. The CAD – has also issued
corrective measures
 Institute appropriate Partially to strengthen
measures to minimize if Implemented internal control.
not eliminate the

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Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

occurrence of
over/double
remittances; and

 Submit status of action Partially

taken, for recovery from Implemented
BIR the double
remittances of VAT for
May 2016 thru e-filling
totalling P197,966.39,
otherwise, make
adjusting entry/s for
Due from BIR to Due
from Officers and
employees to recognize
accountability of
personnel who caused
the double remittance.

Reiterated in 18.Prompt payment by the City

Finding No. 18, of loan amortization for the
Page 81 outstanding loan from the
Land Bank of the
Philippines for the
construction of various
infrastructure projects.

We recommended that the Fully The City Treasurer

City Treasurer continue the Implemented continue the practice
practice of regularly paying of regularly paying
the loan amortization. the loan
amortizations with
summary schedule
prepared by the
CAD.

Reiterated in 19. Audit suspensions and

Finding No. 19, disallowances totalling
Page 82 P28.643 million and
P11.982 million,
respectively, remained
unsettled as of the year-end.

We reiterated the previous Partially The CLD already The 3 NDs with
year’s recommendation that Implemented sent demand letters total amount of
the Local Chief Executive to the persons liable. P894,860.00
direct concerned officials to The persons liable were fully
coordinate with all persons are willing to settle settled in
responsible/liable and the disallowed November and
facilitate the settlement of amount. Also, the December
all outstanding audit City Administrator 2017.

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Reference Partial/Non-
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Implementation

suspensions and is in negotiation

disallowances as required with the heir of the NSSDC No.
under existing regulations. late Vice-Mayor, 2018-003
It was also advised that one of the persons ND 2009-005-
disallowances be endorsed liable, for the 100(06)
to the City Legal Office for remaining ND 2009-007-
necessary accountable 100(06)
action/disposition. balances amounting ND 2009-008-
to P200,000.00. 100(06)
dated March 27,
Due to the exerted 2018 was issued
efforts of the CLD for the
and the settlement of
management, partial the subject
settlement disallowances
amounting to
P693,975.02 was
settled.

Criminal cases
against Accountable
Officers are still
pending before the
Sandiganbayan
through an earlier
case filed against
said persons.

For the other parties

in the COA
Decision issued by
the Regional
Director, LGS-NCR
in May 2016, the
said parties filed a
Petition for Review
before the
Commission on
Audit proper which
are still ongoing.

Management
continues to explore
extra-judicial
settlement first
before filing a civil
case considering
that the whole
amount will be fully
collected and filing
of cases would

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Reference Partial/Non-
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Implementation

entail added
expenses for the
City.

AAR 2016
CY 2016 20. The year-end balance of the
total liabilities of P149.6
million under the Special
Education Fund (SEF)
books was inaccurate and
unreliable due to the
presence of abnormal
balances totaling
P344,998.32 in some of the
payable accounts which
remained unadjusted from
one to nine years.

We recommended that the

Accountant:

a. Review, analyze and Partially The CAD had Not all negative
trace back the Implemented reviewed balances have
transactions that transactions which analyzed and
caused the negative showed negative prepared
balances and prepare balances and adjusting
the adjusting entries to prepared adjusting entries.
correct the affected entries.
accounts;
The CAD already
b. Make arrangement Partially made adjustment in Management is
with the BIR for the Implemented the work flow still finding
immediate recovery of system to ensure ways how to
the over remittances that all transactions deduct tax
since under the as to the occurrences refund from
Revenue Code, claim of over payment/ BIR or to
for refund of overpaid over remittance pass collect from
taxes must be filed through the desired former
within the 2-year system and advised employees.
prescriptive period accountable
from the time the right personnel to
of claim accrues; immediately remit
withheld taxes and
the amount deducted
from the salary of
officials and
employees to the
respective
government
agencies such as
BIR following the

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Reference Partial/Non-
Recommendations Implementation Action/Comment
Implementation

month for which the

same were deducted.

c. Exert effort to collect Partially This was made by

the overpayment of Implemented stopping incidence Management is
salary from concerned of extended teachers finding ways
employees; and under SEF in how to collect
previous years so from resigned
that all transactions employees and
remittance of of those who
withholding taxes can no longer
will reflect accurate be located.
amount to be
deducted from
salary of officials
and employees.

CY 2016 1. The amount of P37.477

million recorded under
Due from NGAs account
remained unadjusted
despite the submission of
liquidation report on the
utilization of funds to the
Accounting Department
contrary to COA Circular
No. 2016-002, thus,
overstating the account
balance by the same
amount.

We had recommended that Fully CAD had adjusted

CAD effect the appropriate Implemented the amount in the
adjusting entry/s for the books of accounts
fund transfer, and submit and already
the liquidation report submitted
together with the liquidation report
supporting documents to and corresponding
the Audit Team for audit supporting
verification. documents.

CY 2016 2. Funds transferred by the

Department of Health
(DOH) to the City
amounting to P14.131
million for the
implementation for
various
programs/activities of the

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Reference Partial/Non-
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Implementation

Malabon City Health

Office in CYs 2011 to
2015 which were already
completed has an unused
balances totaling P1.748
million that were not
returned to the Source
Agencies contrary to
Paragraph 4.9 of COA
Circular No. 94-013 dated
December 13, 1994.
Fully The CAD had
Implemented already returned the
We had recommended that remaining balance
Management return the to DOH.
unutilized cash balance to
the Source Agency/s if the
same is no longer needed.

CY 2016 3. The 20 percent or P11.389

million share of the
National Government on
LGU’s collection on
building permit fees
recorded in the Due to
Other NGA account in CY
2011 and 2012 has
remained unremitted to
the Bureau of Treasury
contrary to DOF .
Department Order No. 51-
2010 dated August 03,
2010.

We had recommended that Not Verification of No information

the City Treasurer remit the Implemented records showed that was provided or
full amount of the amount of gathered on the
P11,389,004.50 to the P11,389,004.50 was reason for
Bureau of Treasury which recorded in the inaction and
represents 20 per cent of books under the why
the building permit fees account Due to management
collections covered by Other NGAs in CYs based their
Department Order No. 51- 2011 and 2012 In remittance
2010. favor of the Bureau solely on said
of Treasury (BTr) DPWH and
for the account of DILG Joint
the DPWH but the Circular when
same remained the subject non-
unremitted to date remittance or
which could have deficiency
been used to cover the

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augment fund for calendar years

priority projects. 2011 and 2012
which should
The delay in the have been based
remittance was due on DOF
to the confusion Department
brought about by the Order No. 51
new issuance of 2010 dated
DPWH and DILG August 03,
Joint Circular No. 2010.
2013-001 regarding
the remittance of the
percentage share of
the LGU on the
building permit fees
collection which
decreased from 20
to five percent.

CY 2016 a. Management appoint a

regular City
Accountant, fill up the
necessary vacant
plantilla items in the
CAD, re-evaluate the
sufficiency of existing
manpower
complement of the
Office and create
additional position, if
warranted, to avoid the
delayed preparation
and submission of
financial reports and
documents and the
frequent rendition of
overtime by the staff.

b. The CAD install Partially Four out of eight There were

measures that will Implemented plantilla positions augmentation
facilitate timely approved for the provided by
recording of the staff of CAD were management
transactions to ensure filled up by with additional
the timely submission Management two (2) newly
of disbursement effective since hired personnel
vouchers, payrolls, February 2017 (1 CPA) added
official receipts, onwards. to the CAD but
accounting reports and the plantilla
financial statements Management in their came from
within the required reply through the other Offices.

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first 10 days of the OIC-CHRMDD has

ensuing month. agreed to implement
the recommendation
and started
preparing the
renewal of
designation of OIC.
Partially CHRMDD had This is due to
Implemented started renewal of voluminous
Officers-in-Charge transactions and
(OICs) who have no cut-off on
been discharging the submission
their Orders for over of reports is
a year and are being being
monitored congruent implemented.
w/ CSC Memo Cir.
No. 06-05 dated
February 15, 2005
CY 2016 b. The City’s DRRM
Plan does not contain
relief distribution
mechanisms to ensure
the efficiency and
effectiveness of the
distribution system.

c. The roles and

responsibilities of a
designated storage
keeper were not clearly
defined, hence,
accountability could
not be easily
pinpointed.

d. Records on the receipt

and disposal of
supplies and materials
were not
maintained/updated,
thus, the difficulty to
properly account for
the items/goods
distributed to the
victims/beneficiaries.

We recommended that:

a. The City’s LDRRM

Council include in the
LDRRMF Plan the

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 Construction of
permanent
warehouse/storage
facilities located in
accessible, safe and
secured areas with
shelves or cabinet
to avoid possible
damage/spoilage
and/or
loss/pilferage of
relief goods and
materials;

Fully The City

Implemented Engineering
Department (CED)
had constructed
permanent
warehouse/storage
 Relief Distribution for the stockpiling
Mechanism to serve of construction
as a guide in the materials for
distribution and disaster
disposal of supplies, preparedness.
materials and relief
goods to calamity Moreover, the City
victims; had implemented
security measures
b. The City Mayor pending the
designate a warehouse distribution of the
keeper to discharge the materials to the
functions and recipients. There
responsibilities for the exist a CCTV and
safekeeping and the warehouse is
issuances of relief guarded and its
goods; compound where
the materials are
c. The designated kept and guarded by
warehouse keeper limit our City Security
access to Unit 24/7.
warehouses/storage Not
facilities to authorized Implemented No information was

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personnel and releases provided.

the relief
goods/construction
materials directly to
the calamity
victims/intended
beneficiaries based on
validated list of Fully
calamity affected Implemented The City had
families; and already designated a
warehouse keeper.
d. The designated
personnel maintain
updated records on the
receipt and issuance of
supplies and materials
and maintain a stock Fully
card for each item of Implemented The designated
construction materials warehouse keeper
and other supplies for made an assurance
purposes of monitoring limit access to
the balance warehouses/ storage
and availability of facilities to
stocks/items on hand. authorized personnel
and releases the
relief
goods/construction
materials directly to
the calamity
victims/intended.

Fully
Implemented The designated
personnel had
already maintained
updated records
receipt and issuance
of supplies and
materials and
maintain a stock
card for monitoring
purposes.

CY 2016 6. The unexpended/

unobligated LDRRMF
balance of P34.519
million was (a) recorded
in “Due to Other Funds”
account instead of

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“Subsidy to Other Funds”

under the General Fund;
(b) the balance for Capital
Outlay totaling P1.924
million which shall be
made continuing in the
General Fund books and
was transferred to Trust
Liability-DRRM; and (c)
the amount and details of
the said balance were not
disclosed in the Notes to
Financial Statements.

We recommended that the Not No information was No disclosure

City Accountant to Implemented provided. made in the CY
disclose in the Notes to 2018 Notes to
Financial Statements the Financial
amount and details of the Statements.
unexpended balance of
the LDRRMF.

CY 2016 7. Compliance with tax laws

We had recommended Partially Management Management is

that the City Treasurer Implemented mentioned that the still verifying
remit the amount of amount of the actual
P5,002,057.64 to the BIR P3,544,841.98 are amount subject
immediately. still subject for for remittance
verification and the to BIR.
remaining amount
will be remitted
within the year.

CY 2016 8. The City of Malabon has

not fully complied with
the full disclosure policy
as required under DILG
Memorandum Circular
No. 2013-140 dated
December 03, 2013 and
Article II, Section 28 of
the Philippine
Constitution, thus,
depriving the public of
updated information on
how its budget is
managed, disbursed and
used and limiting
information to its
constituents on the status

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of programs, projects and

activities being undertaken
by the City. Fully The CGSD and all
Implemented Departments
We had recommended concerned had
that the CGSD and all consistently posted
Departments concerned reports in
comply with full compliance with full
disclosure policy as disclosure policy as
required under DILG required under
Memorandum Circular DILG Memorandum
No. 2013-140 in order to Circular No. 2013-
inform the constituents of 140.
Malabon City and the
general public of its
accomplishments and how
public funds were utilized

AAR 2015
CY 2015 1. Dormant accounts
unnecessarily overstated
the receivables and
payables by P1,882,867.15
and P250,394.77,
respectively.

1.a The Account Due from

Officers and Employees
amounting to P415,134.10
representing overpayment
of salaries and cash
shortages remained
dormant from 1 to 24
years, due to failure to
collect or deduct from
subsequent payroll of the
employees concerned.

We had recommended that:

1. The City Management:

Partially The City With plan of
 Look into the Implemented Administrator action but still
recurrence of already forwarded to be
overpayment of necessary implemented.
salary and wages and documents to City
institute measure/s to Legal Department
avoid its incurrence; for appropriate
action and have
informed
accountable officers

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to look into the

recurrence of
overpayment of
salary and wages
Not and already institute
implemented measure/s to avoid -do-
 Hold the salaries of its incurrence;
the accountable
persons who were
responsible for the
overpayment of the Not
salary; and implemented OCA advised CLD -do-
to hold the salaries
 Exert effort to accountable persons
collect/recover the who were
overpayment of salary responsible for the
as well as the cash overpayment of the
shortages salary.

OCA gave notice to

all involved
departments to
ensure collection
and recovery of the
overpayment of
salary as well as the
cash shortages thru
coordination with
City Legal
Department and
City Treasury
Department.

1.b The Other Receivables

Account (1-03-06-990)
amounting to
P1,256,515.04 remained
dormant from five to 33
years, due to erroneous
entry and failure to
collect/recover the
receivables.

We had recommended that

the City Accountant:

 Examine the validity Partially The CAD Analysis of

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 Reason/s for
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and actual existence of Implemented mentioned that they dormant

the receivables will examine the Account mas
account which validity and actual made but
remained dormant for existence of the remained
5 to 33 years already; receivables account unadjusted.
which remained
dormant for five to
33 years already.

 Make the necessary Not The Other

adjustment/s in the Implemented Receivables
books, if warranted, to account still
reflect the actual and unadjusted.
correct account
balance of Other
Receivables account;
and

 Revisit the MOA or Not CAD revisited the No letter

loan agreement on Implemented MOA or loan request was
micro lending and agreement on micro filed yet with
institute procedures to lending and advised COA.
collect the loan. the City Coop.
Devpt. Office to
institute procedures
to collect the loan &
already informed the
accountable offices
for appropriate
action.

As of date, CAD
will formally
request COA for the
dropping of dormant
Accounts
Receivable
balances.

1.c Various sub-account

balances of the Due to
Officers and Employees
(account 2-01-01-020)
amounting to P250,394.77
remained dormant for one
to more than four years.

We had recommended that Partially CAD examined the Subject for

the City Accountant to Implemented validity and actual verification of
examine the validity and existence of the copy of JEV.
actual existence of the payable account

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 Reason/s for
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payable account which which remained

remained dormant for 2 to dormant for two to
more than 4 years already more than four years
and make the necessary already.
adjustment in the books.

It is further recommended Not Accountable officers No copy of JEV

the reversion of the Implemented were also advised to submitted for
balances aging two years make reversion of the reversion of
or more pursuant to the the balances aging account
foregoing provision of PD two years or more balance.
No. 1445 so that the by December 2016
corresponding fund may be pursuant to the
used for other projects by foregoing provision
the LGU. of PD NO. 1445 so
that the
corresponding fund
may be used for
other projects of the
city.

1.d Account balance of Not To file a request for No request for

P210,218.01 of the Implemented authority from the the dropping of
Advances to Special COA to drop/cancel dormant was
Disbursing Officers the dormant account filed.
(Account 1-03-05-030) balances.
remained dormant for 22 to
25 years.

We had recommended the

filing of a request for
authority from the COA to
drop/cancel the dormant
account balances.

2. The City Accountant: To file a request for

authority from the
COA to drop/cancel
 Examine the validity Partially the dormant account No request for
and actual existence of Implemented balances. the dropping of
the overpayment of dormant was
salaries and cash filed.
shortages which
remained dormant
from two to 24 years; The CAD already
and made the necessary
adjustments in the
 Make the necessary Partially books to reflect the No written
adjustment/s in the Implemented actual and correct request was
account balance of filed for the

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books, if warranted, to Due from Officers dropping of

reflect the actual and and Employees dormant
correct account account by account.
balance of Due from transferring dormant
Officers and accounts to Other
Employees account. Receivables as per
attached JEV and
summaries. Will
request for the
dropping of dormant
Account Due from
Officers and
Employees (1-03-
06-020), subject for
the approval by
COA, if warranted.

The CAD already

made the necessary
adjustments in the
books to reflect the
actual and correct
account balance of
Other Receivables
account.

CY 2015 3. The City Government of

Malabon maintains deposit
accounts with the
Philippine National Bank
(PNB) violating
Department of Finance
(DOF) Department Order
No. 27-05 and DOF
Department Circular No.
001

We had recommended that Not Management said The deposit

Management transfer its Implemented that they are set to account with
bank account deposits with transfer their PNB PNB still exists.
the Philippine National deposits to their
Bank to a government LBP-Malabon
depository bank, the Land deposit account as
Bank of the Philippines – soon as their request
Malabon Branch in for documents is
particular which is within furnished by PNB
the premises of the city relative to the
hall building. unrecorded and
unidentified
reconciling items.

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CY 2015 4. The Real Property Tax

(RPT) and Special
Education Tax (SET)
collections were only 32.55
percent and 43.57 percent
of the recorded receivables
indicating collection
inefficiency resulting in the
accumulation of
uncollected receivables.

We had recommended that:

1. City Treasurer’s Department The CTD

(CTD):

 Increase collection Fully  Had already

efficiency by exerting Implemented increased
extra effort in the collection
collection of Real efficiency in the
Property/Special of RPT/ SET
Education Tax; and accounts.

 Appraise whether the Partially  Mentioned that Updating of

entire amount of Implemented they will still records is still
RPT/SET Receivables update records as ongoing.
balance at year-end basis for proper
still represent appraisal whether
collectible account. the entire amount
of RPT/ SET
Receivables
balance at year-
end still represent
collectible
account.

2. The CAD to: The CAD

 Coordinate with the CTD Partially  Had coordinated

for the actual RPT/SET Implemented with the CTD for
Receivables to be set up at the actual RPT /
the beginning of the year. SET Receivables
to be set up at the
beginning of the
year.

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Partially  Re-examined the

 Re-examine the validity of Implemented validity of
doubtful accounts in the doubtful accounts
setting up of RPT/SET in the setting up
Receivables for the years of RPT/SET
2014 and 2015 totaling Receivables for
P64,749,181.56 which is the years 2014
still included in the and 2015 totaling
accumulated yearend P64,749,181.56
balance of RPT/SET which is still
Receivables and make the included in the
necessary adjustment, if accumulated
warranted. yearend balance
of RPT/SET
Receivables and
make the
necessary
adjustment, if
warranted.

City Assessment
3. The City Assessment Department
Department to: informed that:

Partially  They will conduct

 Update the data base of Implemented tax mapping in 21
RPUs subject to real barangays to
property taxation; update the data
base on RPUs: The City
Assessment
Dept had
Partially  Will cancel all conducted tax
 Cleanse the record of Implemented RPUs with mapping
demolished improvements duplicate, activity in
and dismantled/non- triplicate tax certain
existing machineries; declarations; barangays.

 Segregate list of RPUs –

Partially  Will cancel all
- Forfeited in favor of Implemented non- existing
the City Government improvements and
of Malabon; and machineries; and
As of date,
Partially  Will tag in the there were
Implemented system all RPUs already
cancelled

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- Under litigation forfeited in favor RPUs; Tagged

of the City. in the system
RPUs to come
up with a list of
forfeited and
under litigation
RPUs.
CY 2015 5. The financial assistance of
P175,000.00 received in
2012 for disaster relief
relative to Habagat and
Typhoon Pedring remained
unutilized thus, depriving
the constituents of benefits
that may have been derived
therefrom, and violative of
Item IV.B.13 of COA
Circular No. 2014-002
dated April 15, 2014.

We had recommended that Fully The fund balance

the City of Malabon take Implemented were utilized for
the opportunity of utilizing Projects, Programs
available funds donated by and Activities of the
other local government City.
units to benefit its
constituents and thus avoid
the return of the said funds
to its donors or to the
Bureau of the Treasury
when donated funds are not
utilized for the intended
purpose.

115