Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency Action Plan Reason for

Target Partial/ Delay/ Action Taken/
Status of
Ref. Audit Observations Audit Recommendations Person/Dept. Implementation Non- Action to be
Action Plan Implementation
Responsible Date CY 2015 Implementation Taken
, if applicable
From To
AAR 1. The Municipality incurred Direct the Budget Officer to clearly To replenish 20% DF Mayor,Budget 2/25/2015 3/6/2015 Fully Issued Executive
CY expenses in the amount of define, prioritize and implement of 2014 from the Officer, Implemented Order 1-2015
2014 P86,704.00 charged to the 20% infrastructure projects charged to appropriation of the MPDC, dated 2/25/2015
Development Fund that are not 20% Development Fund based on Office of the Mayor Treasurer “Slashing
related to or connected with the approved budget. Otherwise, amount from
implementation of development ineligible claims will be disallowed in Other Supplies
programs and activities in audit. Expense to
violation to the prescribed replenish 20%
guidelines pursuant to the Joint DF 2014
Memorandum Circular 2011-1
dated April 13, 2011 of DILG
and DBM, thus affecting
efficiency and effectiveness.

AAR 2. Procurement of gasoline and Instruct the Treasurer/Cashier to To monitor strict Mayor, 3rd Qtr Fully Complied as of
CY diesel amounting to prepare checks drawn on adherence of COA Budget 2014 Implemented 3rd Quarter 2014
2014 P244,101.41 were paid in cash disbursement vouchers. Pay and Circular so that all Officer,
instead of checks contrary to reflect to the real name of the payee disbursements are paid MPDC,
COA Circular No. 92-382 dated in settlement of obligations. thru checks Treasurer
July 3,1992 and COA Circular Disbursing
No. 97-002 dated February 10, Strictly adhere to the provision of Officer
1997, resulting to failure to COA Circular No. 92-382 and COA
collect withholding tax from Circular No. 97-002
Government Payments as
provided by EO 651 dated
February 16, 1981.
 Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency Action Plan Reason for

Target Status of Partial/ Delay/ Action Taken/
Ref. Audit Observations Audit Recommendations Person/Dept. Implementation Implementatio Non- Action to be
Action Plan n Implementation, Taken
Responsible Date CY 2015
if applicable
From To
3. Disbursement vouchers Disbursement vouchers and all To monitor strict and Treasurer’s 2/25/2015 2/26/2015 Fully Cash payments
AAR
together with supporting supporting documents should be continuous compliance Office, Implemented had been
CY documents were not stamped stamped “PAID” after payment to in stamping PAID to Disbursing stamped
2014 “PAID” after payment strengthen the agency’s internal all support docs Officer previously.
showing inadequate control in control system on disbursements, to Immediately
the disbursement of funds. facilitate the identification of after the exit
consummated transactions, and to conference with
prevent double payments claims. COA all
supporting
documents were
stamped PAID
 Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency Action Plan Reason for

Target Status of Partial/ Delay/ Action Taken/
Ref. Audit Observations Audit Recommendations Person/Dept. Implementation Implementatio Non- Action to be
Action Plan n Implementation Taken
Responsible Date CY 2015
, if applicable
From To
4. Collections from Real Property
AAR Require the Municipal Treasurer to Treasurer’s Reporting is thru
Tax (RPT) particularly those
CY record the real property tax Office computerization.
collected in advance and
2014 collections in the General and Special The Enhanced
discounted worth P 763,061.20
Education Fund Cash books, Tax Revenue
were accounted under Trust Fund,
indicating the proceeds and/or sharing Assessment and
instead of General Fund and
of basic real property tax and the Collection System
Special Education Fund, contrary
additional 1% real property tax for (ETRACS) does
to the provisions of Section 271 of
the SEF. not allow entry of
RA 7160 as amended, thus
advance payment.
proceeds and/or share of real
Likewise, it is also recommended that The collections
property tax collections were not
the Municipal Accountant should take will be transferred
only properly distributed to the
up the journal entry of Collection in the following
proper funds but it also deprived
indicating among others the proceeds year/current year
the services that it may provides to
of real property tax collections that but it is now
its intended beneficiaries.
will accrue to the intended accounts reflected in SRE
and/or beneficiaries. The same version 2.
accounting entry will be applied to
real property tax collections paid in
advance and discounted.
 Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency Action Plan Reason for

Target Status of Partial/ Delay/ Action Taken/
Ref. Audit Observations Audit Recommendations Person/Dept. Implementation Implementatio Non- Action to be
Action Plan n Implementation Taken
Responsible Date CY 2015
, if applicable
From To
AAR 5. BAC Chair and members had Justify the payment of BAC To release honoraria Budget, BAC, Fully 2015 LEP- Local
CY claimed honoraria, in attending Honoraria taken from the General only charged to Item- Accounting, Implemented Expenditures
2014 public bidding conducted for Fund and Trust Fund by showing that support to BAC and Treasurers Program with
related procurement activities in these are within the guidelines of from proceeds of Appropriations
the absence of sufficient funding, DBM Circular No. 2007-3 dated bidding docs Ordinance; with
contrary to DBM Circular No. November 29, 2007. Item Support to
2007-3 dated November 29, 2007. BAC hence
In cases of deficiency in collections Honoraria were
from the sources identified, the charged here and
amount of honoraria shall be adjusted from the proceeds
proportionately for all those BAC of bidding docs;
entitled thereto. LCE had already
refunded the
Require the refund of excess honoraria given to
honorarium and honorarium paid to her Php
the local chief executive who is not 10,000.00- O.R.
entitled to it. 817940 dated
3/12/2015
Follow strictly the provisions
mandated under DBM-BC No. 2007-
3 dated November 24, 2007.
 Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency Action Plan Reason for

Target Status of Partial/ Delay/ Action Taken/
Ref. Audit Observations Audit Recommendations Person/Dept. Implementation Implementatio Non- Action to be
Action Plan n Implementation Taken
Responsible Date CY 2015
, if applicable
From To
AAR 6. The correctness and validity We have recommended management adhere to To operationalize the Inventory 5/6/2015 6/30/2015 Partially Designated GSO
the provisions cited in Sections 58 and 122 of
CY of Property, Plant and
Presidential Decree No. 1445 and Section 43 of
Inventory Team and Team Implemented Officer-Dante
2014 Equipment account valued at P the New Government Accounting System and tagged all equipment, composed by Taylaran
64,471,812.85 as of December currently the DILG Memorandum Circular No. furniture and fixtures Office, Tagging is
31, 2013 has not been 2013-33 on Local Governance Transition. treasurer’s ongoing-finished
established, there being no Office and 2 offices
That an Inventory Committee be created
physical inventory report or composed of Head/any of his representatives Accounting
available supporting subsidiary from the Municipal Treasurer’s Office/Property Office
records. and Supply Office, Accounting Office and
Mayor’s Office and should be witness by COA
Representative of which an Inventory Report
be submitted thereon.

During the actual physical count a tag or

property numbers be placed to all assets, issue
Acknowledgement Receipts for Equipment
(ARE) to cover all assets/various equipment
issued to its officers and employees to ensure
property accountability thereof.

Unserviceable properties should be transferred

to other assets account prior to disposal.

The Accounting Division to reconcile balances

per inventory report against the balances per
their records and make the necessary
adjustments for the discrepancies noted.
 Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency Action Plan Reason for

Target Status of Partial/ Delay/ Action Taken/
Ref. Audit Observations Audit Recommendations Person/Dept. Implementation Implementatio Non- Action to be
Action Plan n Implementation Taken
Responsible Date CY 2015
, if applicable
From To
AAR 7. Advances to Officers and We have recommended that the To demand a refund Accounting April June Partially Demand letters
CY Employees account amounting to Accountable Officer should fully from concerned 2015 2015 Implemented had been issued.
2014 P588,857.89 remained unliquidated liquidate his cash advance and settle employees for their To send again
as of December 31, 2013, in immediately. unliquidated account demand letters
violation of the provisions of COA
Circular No. 97-002 dated And require to follow the provision of
February 10, 1997, resulting to CSC Resolution No. 04-0676 dated
non-recognition of asset or expense June 17, 2004 and COA Circular No.
accounts. 97-002 dated February 10, 1997.

8. The unexpended balance of the We recommended that the Municipal To record LDRRM MDRRMC, Fully Fully implemented.
Local Disaster Risk Reduction Accountant should transfer at year- expenditures under Treasurer’s Implemented Transfer was done
Management Fund (LDRRMF) in end the unexpended balance of the appropriate books of Office, from General Fund
to Trust Fund-
the amount of P 801, 582.62 was QRF and DRRMF-MOOE to the accounts; unexpended Accounting
Regular per Check
not transferred to the Special Trust Special Trust Fund under the account funds under Trust No. 44125548 dated
Fund under the account Trust “Trust Liability-DRRM” in the Trust Account 6/2/2014, Offcial
Liability-DRRM in the Trust Fund Fund books pursuant to COA Circular Receipt No.
books which is contrary to existing No. 2012-002. Moreover, he should 2329596 dated June
law, rules and regulations, thus the maintain a separate registry of 2, 2014, Remittance
amount was not set aside for the appropriations, allotments and No. 2014-00267
purpose of supporting disaster risk obligations for the LDRRMF-RAAO- dated June 4, 2014
(Transfer of
reduction and management for QRF RAAO-for MOOE and
MDRRM Fund
activities within the next five (5) RAAO-for CO for the easy General Fund 5%
years. determination of the unexpended Reserved
balance of the fund. Accumulated from
2010)
 Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency Action Plan Reason for

Target Status of Partial/ Delay/ Action Taken/
Ref. Audit Observations Audit Recommendations Person/Dept. Implementation Implementatio Non- Action to be
Action Plan n Implementation Taken
Responsible Date CY 2015
, if applicable
From To
9. Net take home pay of some We have recommended the
employees was far below the management to deduct only
AAR Accounting Fully As of April 2015,
minimum net pay required under authorized deductions and to strictly
CY Implemented No employees are
the provision of Section 37 of the follow the provisions of the
2014 below P 3,000.00
General Appropriation Act (GAA aforementioned law.
net take home pay
of 2012), Republic Act No. 10155,
thus defeating the purpose of
maintaining sufficient amount for
subsistence among the employees
concerned that affected the
continuous efficiency on the
delivery of basic service.

10. The Municipal Government had We have recommended the management Budget, Office Fully GAD Plan
provided only a total amount of to provide at least five percent (5%) of the of the Mayor, Implemented implemented and
P350,000.00 for GAD agencies total annual appropriation for the Treasurer’s monitored. GAD
Programs/Projects or 0.47% of its total implementation of programs/projects
Office related activities
Annual Budget of P74,062,104.00 related to Gender and Development in
instead of 5% thus, violating the compliance with the provisions of Joint
were obligated
provisions of Joint Circular No. 2004-1 Circular No. 2004-1 dated April 5, 2004 and charged
dated April 5, 2004 of the Department of the Department of Budget and accordingly
of Budget and Management (DBM), Management (DBM), National Economic
National Economic and Development Development Authority (NEDA) and the
Authority (NEDA) and the National National Commission on Role of Filipino
Commission on Role of Filipino Women (NCRFW).
Women (NCRFW).
 Annex A

Municipality of Clarin
Clarin, Misamis Occidental
AGENCY ACTION PLAN and STATUS of IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2014
As of December 31, 2014

Agency sign-off:

HON. ELSA F. NAVARRO 5-May-15

Municipal Mayor DATE