EXECUTIVE SUMMARY

INTRODUCTION

The Municipality of Burgos was previously a part of Benguet. In 1920, the

boundary line between La Union and Benguet was modified, hence, Burgos, known as
Disdis, was reverted to La Union

Like any local government units, the municipality enjoys total autonomy in the
management of its own affairs in conformity with the development thrusts of the national
government.

FINANCIAL HIGHLIGHTS

The agency’s financial condition and result of operations for calendar year 2013
compared with that of preceding year are as follows:

CY 2013 CY 2012
Total Assets P60,023,380.13 P65, 004,617.40
Total Liabilities 11,142,272.30 18,243,270.23
Residual Equity 48,881,107.83 46,761,347.17

Sources and application of funds are as follows:

CY 2013 CY 2012
Allotment P53,978,113.61 58,968,736.68
Obligations 32,587,340.26 41,804,690.05
Balance 21,390,773.25 17,640,046.63

OPERATIONAL HIGHLIGHTS

As part of its functions, the municipality had undertaken in 2013 projects,

programs and activities designed to develop its localities and improve its facilities. The
major accomplishments of the municipality during the year herein presented vis-à-vis the
corresponding plans and targets to highlight this report.

Program/Project/Activity Target Accomplishment

Construction of Slope Protections- P4,500,000.00 10 100%
Improvement of Farm to Market Roads- P5,025,00.00 12 100%
Construction/Improvement of Hanging Bridges- P950,000 4 100%

The municipality had realized a total income of 38,794,711.31, which is

2,896,265.06 less than the income of 41,690,976.37 in 2012. On the other hand, total
expenditures for the same year amounting to 37,102,412.43 is less than last year’s
expenditures of 42,760,130.84 or by 13%
SCOPE OF AUDIT

A financial and compliance audit was conducted on the accounts and operational
activities of the Municipality of Burgos, La Union for the calendar year ended December
31, 2013.It was focused on the different audit thrusts/areas enumerated by COA
Unnumbered Memorandum dated July 17, 2013.

The audit was done on sampling basis and used various audit techniques like
confirmation, observation, interview, evaluation of control system/s, and other auditing
procedures and techniques necessary under the circumstances.

AUDITOR’S OPINION ON THE FINANCIAL STATEMENTS

We rendered a qualified opinion on the financial statements of the municipality

because the validity and accuracy of the balance of the Accounts Payable amounting to P
P1, 011,532.60, which had been outstanding for more than two years, could not be
ascertained. The inadequacy of records did not allow us to apply other alternative
procedures to satisfy ourselves as to the validity and accuracy of the account.

SIGNIFICANTCOMMENTS AND RECOMMENDATIONS

Discussed herewith are some of the audit findings:

1. Accounts Payable totaling P1,011,532.60 which has been outstanding for more than
90 days were not supported by valid claims casting doubt on the reliability of
accounts.
We have recommended the Municipal Accountant-Designate to document all
payable accounts which has been outstanding for more than two years and against
which no actual claim has been filed or not covered with valid contracts.

2. Collections were not promptly deposited with authorized depository bank within the
prescribed period, contrary to Section 32 of NGAS Manual Volume l, thus, exposing
the funds to possible loss, misuse or misappropriation.
We have recommended the Municipal Treasurer that all deposits be made intact with
the authorized depository bank within the prescribed period pursuant to Section 32, of
NGAS for LGUS Manual Volume I.

STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT

RECOMMENDATIONS

Out of seven (7) recommendations embodied in the previous Annual Audit Reports
from 2010 to 2012, two (2) were fully implemented and five (5) were partially
implemented.