EXECUTIVE SUMMARY

Introduction

San Pablo City became a chartered City on May 7, 1940, by virtue of Commonwealth Act
No. 520, which was later amended by Republic Act (RA) No. 163 on June 20, 1947.

Like other local government units, the city enjoys total independence in planning, managing,
and deciding its own administrative, fiscal and development affairs in conformity with the
national government’s thrust for sustainable social and economic growth, pursuant to RA
No. 7160, otherwise known as the Local Government Code of 1991.

San Pablo City is well known as the “Jeepney Capital of the Philippines” for its contribution
to the country’s transportation industry. A large number of various passengers jeepneys,
owner-type jeeps, Asian Utility Vehicle (AUV) and mini-buses are assembled annually in the
city.

The Organizational Structure of the City is as follows:

a. Key Officials

• City Mayor - Hon. Vicente B. Amante

• City Vice Mayor - Hon. Justin G. Colago
• Members of the Sanggunian

1. Hon. Carmela A. Acebedo

2. Hon. Angelita E. Yang
3. Hon. Martin Angelo B. Adriano Jr.
4. Hon. Richard C. Pavico
5. Hon. Dandi Medina
6. Hon. Buhay D. Espiritu
7. Hon. Lou Vicent B. Amante
8. Hon. Cesarito C. Ticzon
9. Hon. Francis C. Calatraba
10. Hon. Christian Dior C. Amante
11. Hon. Ariston A. Amante
12. Hon. Liberty Pamela E. Capuchino

• City Accountant - Ms. Arlene M. Beltejar

• City Treasurer - Mr. Arjan V. Babani

b. No. of Personnel Complement

• Permanent 1,203
• Co-terminus 38
• Job Order 1,140
• Elective Officials 14
Total 2,395

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Audit Objectives

Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error and to issue
an auditor’s report that includes our opinion.

Scope of Audit

Financial and compliance audits were conducted on the accounts and operations of the City
Government of San Pablo for Calendar Year (CY) 2022. The audit consisted of interviews
with concerned local officials and employees tracing account balances through the
accounting system, verification of disbursements with underlying documents, inspection,
analysis, and reconciliation of accounts, and such other procedures considered necessary.

The audit was conducted to ascertain the propriety of financial transactions and compliance
with prescribed rules and regulations. It was also made to ascertain the accuracy of financial
records and reports, as well as the fairness of the presentation of the account balances in
the financial statements.

Financial Highlights

For CY 2022, the City Government has a total Current Appropriations of P2,138,585,195.77
from its General Fund (GF) and Special Education Fund (SEF) amounting to P
2,013,541,195.77 and P125,044,000.00, respectively. The city also has Continuing
Appropriations of P36,216,385.44 for GF and P0.00 for SEF.

Out of the City’s Current Appropriations, the whole amount of P2,138,585,195.77 was
allotted. Obligations incurred for the GF and SEF amounted to P1,784,739,870.84 and
P86,339,241.03, respectively, or a total of P1,871,079,111.87. The whole amount of
P36,216,385.44 was obligated in the Continuing Appropriations. The realized net income of
the City Government for all funds amounted to P192,573,488.74.

The total assets, liabilities, equity, income, and expenses for CY 2022 of the City
Government compared with that of the preceding year are as follows:

Increase/
2022 2021 (Decrease)
Assets P 3,948,291,598.76 P 3,323,443,776.21 P 624,847,822.55
Liabilities 1,046,772,298.12 643,918,696.45 402,853,601.67
Equity P 2,901,519,300.64 P 2,679,525,079.76 P 221,994,220.88

Increase/
2022 2021 (Decrease)
Revenue P 1,959,528,758.60 P 1,514,960,472.31 P 444,568,286.29
Expenses
Personnel Services 769,902,543.70 659,600,978.44 110,301,565.26
Maintenance and
Other Operating
Expenses 771,059,431.87 624,815,027.64 146,244,404.23
Financial Expenses 13,714,260.68 7,236,512.70 6,477,747.98

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 Non-Cash Expenses 192,328,485.70 171,491,620.99 20,836,864.71
Total Operating
Expenses 1,747,004,721.95 1,463,144,139.77 283,860,582.18
Operating Income 212,524,036.65 51,816,332.54 160,707,704.11
Gains 39,000.00 436,328.02 (397,328.02)
Miscellaneous Income 232,518.96 1,358,684.77 (1,126,165.81)
Losses (34,250.00) (30,000.00) (4,250.00)
Transfer, Assistance
and Subsidy (20,187,816.87) (16,485,231.06) (3,702,585.81)
Surplus (Deficit) for the
period P192,573,488.74 P 37,096,114.27 P155,477,374.47

Audit Opinion on the Financial Statements

The Auditor rendered an unmodified opinion on the fairness of the presentation of the
financial statements.

Other significant observations and recommendations are the following:

1. Accounts Payable amounting to P93,063,207.40 as of December 31, 2022 were not

readily supported with pertinent documents, contrary to Paragraph 27 of International
Public Sector Accounting Standards (IPSAS) in relation to Section 4(6) of PD No. 1445.
Thus, affecting the fair presentation of the affected account in the financial statements.

We recommended that the City Mayor instruct the City Accountant to:

a. submit the appropriate documents evidencing receipt of delivery and rendition of services
to support the recognition of accounts payable; and

b. provide the Audit Team with detailed aging of the items in the schedule of accounts
payable under the column “More than one year”.

2. Four projects with a total amount of P961,690.00 charged against the 20 percent DF
were not among those projects enumerated in the approved annual development plan
and that the 20 percent DF of the City were not substantially or fully implemented with a
utilization rate of 71.76 percent on the current appropriation, leaving an unutilized
appropriation totaling P79,961,328.40 as of year-end, contrary to DBM-DOF-DILG JMC
No. 1 dated November 4, 2020, thus the primary purpose of attaining desirable socio-
economic development was not fully achieved.

We recommended that the City Mayor ensure that utilization of the 20 percent DF
conform with the provision of JMC No. 2020-001.

Further, we recommended that the City Mayor, in coordination with the City Planning
and Development Office, optimally utilize the 20 percent DF to help achieve desirable
socio-economic development and environmental outcomes for the City.

The above observations and recommendations were communicated to concerned City

officials and staff through Audit Observation Memoranda (AOMs). Management’s views and
comments were incorporated in the report, where appropriate.

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Status of Implementation of Prior Year’s Audit Recommendations

As of December 31, 2022, out of 10 audit recommendations embodied in the CY 2021

Annual Audit Report, 10 were fully implemented by the City Government of San Pablo.

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