EXECUTIVE SUMMARY

INTRODUCTION

The Municipality of Siniloan is a town amidst in the northern part of Laguna. It is

an inverted L-shaped mass nestled in the plains between Sierra Madre ranges and the
Laguna de Bay. It is bounded by North by the Municipality of Famy, on the West by the
Municipality of Mabitac, on the East by the Municipality of Pangil and on the South by
Laguna de Bay.

Siniloan has a land area of 6,442.88 hectares distributed to 20 political

subdivisions namely, the Barangays of M. Acevida, Bagumbarangay, Buhay, P. Burgos,
Gen. Luna, Halayhayin, Kapatalan, Laguio, Liyang, Llavac, Macatad, Magsaysay,
Mayatba, Magsaysay, Mayatba, I. Mendiola, M. Pandeño, G. Redor, J. Rizal, Salubungan
and Wawa, all headed by duly elected Punong Barangays.

It is in 1579 when Siniloan was founded. However, it was only in 1583 that it
was established and recognized as town through the Franciscan missionaries.

July 1, 2013 marked the beginning of the new administration under the leadership
of Mayor Eduardo R. Tibay assisted by Vice-Mayor Roberto D. Acoba and the members
of the Sangguniang Bayan. The financial affairs of the municipality remained under the
supervision of Ms. Juvy R. Rabino, as the Municipal Treasurer, Ms. Paulina V. Potencia,
as the Municipal Accountant and Eufrocina A. Valeroso as the Municipal Budget Officer.

The Municipality maintains three funds, namely: the General Fund, Special
Education Fund and Trust Fund.

FINANCIAL HIGHLIGHTS

For Calendar Year (CY) 2014, the Municipal Government has a total budget of
₱96,104,290.15 for its General and Special Education Fund amounting to ₱92,860,557.28
and ₱3,243,732.87, respectively. Out of this budget, the amount of ₱96,104,290.15 was
appropriated and allotted. Obligations incurred totaled ₱89,051,620.12 for its GF and
SEF amounting to ₱87,224,134.31 and ₱1,827,485.81, respectively.

The total assets, liabilities, equity, income and expenses for CY 2014 compared
with that of the preceding year are shown in the succeeding page:
Increase
CY 2014 CY 2013 (Decrease)
Total Assets 112,176,574.79 94,130,630.51 18,045,944.28
Total Liabilities 58,143,769.03 50,357,244.18 7,786,524.85
Total Government Equity 54,032,805.76 43,773,386.33 10,259,419.43
Total Income 98,317,161.61 86,514,433.99 11,802,727.62
Total Expenses 85,584,595.46 81,621,988.52 3,962,606.94

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SCOPE OF AUDIT

Financial and compliance audit was conducted on the accounts and operations of
the Municipality of Siniloan for Calendar Year 2014. The audit was conducted to
ascertain the fairness of the presentation of the financial statements and compliance of the
agency to law, rules and regulations.

The audit was conducted to ascertain the propriety of financial transactions,

compliance with prescribed rules and regulations and the economical, efficient and
effective utilization of resources. It was also made to ascertain the accuracy of financial
records and reports, as well as the fairness of the presentation of financial transactions.

AUDIT OPINION ON THE FINANCIAL STATEMENTS

The Audit Team rendered a qualified opinion on the fairness of the presentation of
the financial statements of the Municipality owing to the unreliability of the Property
Plant and Equipment (PPE) valued at ₱65,600,151.95 due to the non-submission of
RPCPPE and incomplete maintenance of Property Cards and Property, Plant and
Equipment Ledger Cards. In addition, the accuracy of the amount reported in the
Statement of Cash Flows (SCF) as well as the affected accounts in the other financial
statements could not be ascertained due to a net difference of ₱24,092,822.05 between
the SCF and the Statement of Income and Expenses and/or financial statement analysis.
Further, the reliability and accuracy of Assets and Liabilities accounts balances of
₱19,297,362.15 and ₱9,824,850.52, respectively, were doubtful due to the lack of
subsidiary ledgers.

SUMMARY OF SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS

For the exemption cited above, we recommended that the Municipal Mayor
implement the following actions:

a. Instruct the completion of the physical count of all properties of the Municipal
Government by creating an inventory team, providing them attainable time
table to accomplish the inventory taking and report preparation and instruct
the Municipal Accountant and Municipal General Services Office to observe
proper maintenance of the PPELCs and PCs, provide the complete and
necessary information in both records to facilitate verification and
reconciliation and to effect the necessary adjustments of their records, if
warranted;

b. Instruct the Municipal Accountant to submit the complete schedules and other
pertinent documents to support the data reported in the Consolidated
Statement of Cash Flows and draw Journal Entry Vouchers to adjust the
deficiencies noted to come up with a more reliable balances of the accounts in
the financial statements; and

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 c. require the Municipal Accountant to prepare the subsidiary ledger of the
accounts with still no SL and continuously maintain all the subsidiary ledgers
for all controlling accounts particularly the real accounts or the Balance Sheet
accounts.

Other significant observations and recommendations are the following:

1. The Disbursement Vouchers (DVs) totaling ₱68,499,234.85 were not submitted to

the Office of the Auditor for audit, in violation of COA Circular Nos. 2009-006 and
95-006 dated September 15, 2009 and May 18, 1995, respectively, and Section 100
of Presidential Decree 1445, hence, we could not be determined the accuracy,
validity and reliability of the transactions.

We recommended that the Municipal Accountant exert all efforts to locate the
unsubmitted DVs and its supporting documents and submit the same to the Office of
the Auditor. We also recommend her strict compliance with the provisions of COA
Circular Nos. 2009-006 and 95-006 dated September 15, 2009 and May 18, 1995,
respectively, and Section 100 of Presidential Decree No. 1445.

2. The actual expenditures of the Municipality for Personal Services (PS) expenses
exceeded the 45% limitation by 41% or a total of ₱14,511,797.82 for the Calendar
Year 2014 contrary to Section 325 of Republic Act (RA 7160) or the Local
Government Code of 1991 and DBM Local Budget Circular No. 98 dated Oct. 14,
2011.

We recommended that the Municipal Mayor require the Municipal Budget Officer to
reduce or eliminate the excess in personal services and limit expenses within the
allowed amount as prescribed by the regulation. We also recommended that the
municipality exert more effort to increase its collections in order to generate
additional revenue that would increase the basis in the computation of the allowable
personal services. Henceforth, comply with the limitation on Personal Services
expenditures pursuant to RA 7160.

3. The Real Property Tax (RPT) Receivable and Special Education Tax (SET)
Receivable reciprocal accounts as well as its contra-accounts, Deferred RPT and SET
Income, had a difference of ₱10,799,066.90, contrary to Section 20 of Manual on
New Government Accounting System (MNGAS) Volume I, thus, casting doubt on
the accounts balances in the financial statements.

We recommended that the Municipal Accountant analyze or investigate the causes

of the discrepancies of these reciprocal accounts and draw the necessary journal entry
vouchers to adjust the balances of the above mentioned accounts.

4. Errors in the recording of the transaction pertaining to the progress billing of the
construction of the Siniloan Public Market and loan released by the Land Bank of
the Philippines in the amount of ₱17,139,200.00 and ₱17,056,000.00, respectively,

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 resulted in the overstatement of the Markets and Slaughterhouses and Notes Payable
accounts and understatement of Construction in Progress – Agency Assets and Loan
Payable accounts in the financial statements.

We recommended that the Municipal Mayor instruct the Municipal Accountant to

make the necessary adjustment and reclassify the erroneously recorded accounts to
its proper account classification to fairly present the same in the financial statements.

5. Audit of cash revealed the following deficiencies:

a. The accuracy of Cash in Bank-Local Currency Current account balance shown in

the financial statements at ₱9,259,530.46 could not be determined due to a net
difference noted between the general ledger and the cashbook by ₱73,277.44,
contrary to pertinent provisions of the Government Accounting and Auditing
Manual (GAAM) and the Manual on the New Government Accounting Systems
(MNGAS) for Local Government Units (LGUs) affecting the fair presentation of
the financial statements.

We reiterated our recommendation that the Municipal Accountant and the

Municipal Treasurer regularly reconcile the Cash-In-Bank account balances per
ledger and per cashbooks, and to immediately effect the adjustments/corrections
noted therein.

We also recommended that the Municipal Accountant conduct regular verification

of the credit and debit memos issued by the bank and immediately effect the
necessary adjustments/corrections in the books, otherwise, said reconciling items
will be considered shortage/overage of the Municipal Treasury.

b. Cash books were not maintained and Bank Reconciliation Statements were not
prepared for the account Cash in Bank – Local Currency, Time deposits.

We recommended that the Municipal Mayor instruct the Municipal Treasurer to

maintain separate cash books for each fund on their custody or administration.

We also reiterated our previous year’s recommendation that the Municipal Mayor
require:

 The Municipal Accountant to prepare Bank Reconciliation Statement for the

all depository accounts and to submit to the Auditor for verification within ten
(10) days after the end of each month.

 Both the Municipal Treasurer and the Municipal Accountant to prepare a

quarterly reconciliation statement of Cash in Bank’s general ledger and
cashbook balances and to make necessary adjustments/corrections on the
discrepancies noted. Furnish the Auditor copy of the statement jointly

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 certified both by the said agency officials within 15 days after the end of the
quarter.

6. Project grant awarded to the Municipal Agricultural Office amounting to

₱1,000,000.00 was disbursed in spite incomplete documentation contrary to Section
4(6) of Presidential Decree No. 1445 and non-compliance with BIR Memorandum
Circular 56-2009 on the withholding of taxes amounting to ₱53,571.43, thus, validity,
propriety and legality of the disbursements could not be determined.

We recommended that the Municipal Mayor require the Municipal Accountant to

complete the documentation of the utilization of the project grant and to strictly
comply with the BIR Memorandum Circular 56-2009 in withholding taxes from the
aforementioned disbursements.

7. Expenditures totaling ₱471,630.99 charged against the Special Education Fund do not
fall within the primary purpose of the fund, contrary to Section 272 of Republic Act
(RA) 7160 as implemented by DECS, DBM and DILG Joint Circulars No. 01-B
dated June 25, 2001, No. 01-A dated March 14, 2000 and No, 01 dated April 14,
1998, thus, defeating the purpose for which the fund was established.

We recommended that the Local School Board Officials strictly observe the
provisions of Section 272 of RA 7160, DBM Local Budget Circular No. 62 and DBM
Compensation Policy Guidelines No. 98-1 relating to the defined usage or utilization
of the SEF in order to consider said expenditures allowable in audit. Likewise,
comply with the provisions of DECS-DBM-DILG Joint Circular No. 01, s. of 1998 in
identifying projects/programs and activities chargeable against SEF where the budget
should reflect an equitable distribution of SEF mandated priority projects.

8. The unexpended balance of DAP totaling ₱244,467.99 were not remitted to the
Bureau of Treasury contrary to G.R. No. 209287 dated February 3, 2015.

We recommended that the Municipal Mayor instruct the Municipal Accountant and
the Municipal Treasurer to remit the unexpended balance of DAP to the Bureau of
Treasury.

9. Review of the contract for the infrastructure project titled “Construction of Siniloan
Public Market” amounting to ₱52,000,000.00 showed the it was not submitted to the
Office of the Auditor within five days from its execution contrary to COA Circular
No. 2009-001 dated February 12, 2009, thus, depriving the Auditor of the timely
auditorial and legal review of the contract. In addition, post-audit of its payment for
mobilization cost of ₱7,800,000.00 showed that it was not supported by complete
documentation as required by COA circular 2009-001dated February 12, 2009 and
COA circular 2012-001 dated June 14, 2012.

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 We recommended that the Municipal Mayor instruct the BAC secretariat and the
BAC Chairman to submit immediately the lacking supporting documents pertaining
to the payment of mobilization cost of the “Construction of Siniloan Public Market.”

We also recommended the strict compliance of the Municipality with the provisions
of RA 9184 and COA Circular No. 2009-001 dated February 12, 2009.

10. The account Due to Other Funds under the Special Education Fund with year-end
balance amounting to ₱100,000.00 has no corresponding reciprocal account Due from
Other Funds, thus rendering the said account unreliable.

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

 Determine the composition of the P100,000.00 recorded Due to Other Funds in

the SEF books of accounts; and

 Prepare adjusting entries to correct error for proper presentation of the accounts in
the financial statements.

From now on, strictly adhere with the accounting principles as provided in the
Manual on NGAS to ensure proper presentation of the accounts in the financial
statements.

11. Cash advances amounting to ₱88,400.00 remained unliquidated as of the end of the
year due to non-observance of the rules and regulations on cash advances under COA
Circular No. 97-002 dated February 10, 1997, resulting in the overstatement of asset
and understatement of affected expense accounts in the financial statement and
exposes government fund to risk of loss and/or misappropriation.

We recommended that the Municipal Mayor:

 Require the concerned officers/employees to immediately liquidate their

outstanding cash advances.

 Refrain the granting of cash advances for special purposes to elected officials;

 Instruct the Municipal Accountant to:

- strictly monitor the granting of cash advances and stop the practice of
granting cash advance to officers and employees with outstanding cash
advances;

- ensure that all cash advances are liquidated within the prescribed period and
require the accountable officers of the immediate and timely liquidation of
cash advances;

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 - Immediately issue demand letters to concerned accountable officers

12. The Municipality’s failure to transfer the amount of ₱80,164.85 from the sale of bid
documents recorded under Trust Fund to the General Fund violated Item 6.2 of DBM
Budget Circular No. 2004-5A dated October 7, 2005 as amended by Budget Circular
No. 2007-3 dated November 29, 2007 and misstated the affected accounts in
financial statements.

We recommended that the Municipal Mayor instruct the:

 Concerned Municipality officials to prepare the necessary documents for the

transfer of the amount from Trust fund to General Fund;

 Municipal Treasurer to transfer the amount from Trust Fund account to the
General Fund; and

 Municipal Accountant to draw journal entries transferring the remaining

₱80,164.85 from the sale of bid documents from the books of Trust Fund to the
General Fund.

 From now on, strictly adhere to the provisions of DBM Budget Circular No.
2004-5A dated October 7, 2005 as amended by Budget Circular No. 2007-3 dated
November 29, 2007.

13. Audit of the charges made against the five percent share of Local Government Unit
(LGU) totaling ₱49,530.47 received from the PCSO Charity Fund showed the
following deficiencies:

a) The Fund was recorded in the General Fund as Due to Other NGAs instead of
treating the same as part of the general income contrary to COA Circular Nos.
2003-001 and 2004-008 dated June 17, 2003 and September 20, 2004,
respectively, thus, the recorded income in the General Fund was understated and
was not appropriated for the intended purpose;

b) The fund was granted as financial assistance to various beneficiaries in the

absence of well-defined policy guidelines that resulted in inconsistencies in the
grant of donations and assistance and created doubts in the eligibility of some
beneficiaries and the purpose for which the assistance were given;

c) ₱3,000.00 worth of financial assistance was erroneously charged to the PCSO

fund, thus, making the total disbursements made out of that particular fund
misstated; and

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 d) Vouchers together with their supporting documents totaling ₱7,500.00 were
not submitted contrary to Section 4(6) of Presidential Decree No. 1445, thus,
casting doubt to the existence and validity of the transaction.

We recommended that the Municipal Mayor:

 Require the Municipal Accountant to make the necessary adjustments in the

books to ensure that transactions relative to the PCSO Charity Fund are properly
presented in the financial statements. Likewise, this should be made available for
appropriation for its intended purpose.

 Instruct the Head of the Municipal Social Welfare and Development to create and
maintain database of information of all indigents per barangay for ready reference
in processing financial assistance and other related transactions.

 Set up clear-cut policies and guidelines on its financial assistance program

chargeable to the PCSO Charity Fund. The beneficiaries, amounts and
documentary requirements and the processing office/s should be well defined to
ensure that only qualified beneficiaries are assisted and that assistance is given
only for public and general welfare purpose.

 Require the Municipal Accountant to submit the abovementioned vouchers and

their supporting documents.

14. Discrepancy in the ending balance of cash amounting to ₱280.00 in the Cash Flow
Statement and Balance Sheet for the previous year remained unadjusted, thus, the
accuracy and reliability of the amount reported could not be ascertained.

We recommended that the Municipal Mayor instruct the Municipal Accountant to

draw Journal Entry Vouchers to adjust the deficiencies noted to come up with reliable
balances of the accounts in the Municipality’s financial statements.

15. The Section 14.5 provision of the contract entered into between the Municipality of
Siniloan, Laguna and Land Bank of the Philippines included as lien all the bank
deposits the Municipality has with the banks, meaning the inclusion of the bank
accounts maintained for Special Education Fund (SEF) and Trust Fund (TF) which
should not be the case, since, these funds can be utilize only for its specific purpose as
cited under Section 309 (a) and (b) of Republic Act No. 7160 otherwise known as the
Local Government Code of the Philippines, hence, cannot be used as lien to the loan.

We recommended that the Municipal Mayor communicate with the Land Bank of the
Philippines to consider the revision of the abovementioned provision in the Loan
Contract.

16. The Municipality still failed to maintain special accounts in the General Fund for
public utilities and other economic enterprises, contrary to Section 105 of the Manual

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 on NGAS for LGUs, Volume I, thus, adequate information on financial position and
results of operation were not available for decision making and monitoring.

We reiterated our previous year’s audit recommendation that the Municipal Mayor
instruct the Municipal Accountant to prepare and maintain complete subsidiary
records of each special account. Accordingly, at the end of each year, prepare trial
balance and financial statements of each special account for submission to the
Auditor.

17. The Municipal Accountant failed to set up the Real Property Tax and Special
Education at the beginning of the CY 2014 due to the failure of the Municipal
Treasurer to furnish and the Municipal Accountant to request the duly certified list of
taxpayers with the corresponding amount due and collectible during the year, contrary
to Section 20 of the Manual on New Government Accounting System (NGAS), Vol.
I.

We recommended that the Municipal Mayor require the Municipal Treasurer to

submit the certified list of taxpayers showing the amount due and collectible to the
Municipal Accountant for her to set up a more reliable RPT/SET Receivable.

18. Copies of Contracts and Purchase Orders together with the supporting documents
were not submitted to the Office of the Auditor within five (5) working days from
execution and issuance for review and evaluation, in violation of Sections 3.2.1 and
3.2.2 of COA Circular No. 92-001 dated February 12, 2009. Also, delivery reports
were not furnished within 24 hours from acceptance of deliveries as required under
Section 6.9 of COA Circular No. 2009-002 dated May 18, 2009 and Section 467 of
Government Accounting and Auditing Manual (GAAM). As a result, the timely
review and evaluation of transactions and inspection of deliveries could not be made.

We recommended that the Municipal Mayor instruct the concerned Municipality

Officials to submit copies of POs and supporting documents to the Office of the
Auditor within five (5) working days after its perfection/issuance. Likewise, furnish
Inspection and Acceptance Report (IAR) to COA for the conduct of timely inspection
and evaluation of the actual deliveries of the goods in compliance with the above-
cited regulation.

19. Audit of the 20% Development Fund (DF) showed the following deficiencies:

a. Disbursements charged to the 20% Development Fund of the Municipality

totaling ₱1,895,445.45 were not in accordance with the guidelines set forth by
DILG-DBM Joint Memorandum Circular No. 2011-01 dated April 13, 2011, thus,
intended benefits that should have been extended to the constituents had the
amount been used for development projects were not attained.

We recommended that the Municipal Mayor instruct the Municipal Accountant,

Municipal Budget Officer and the Municipal Planning and Development

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 Coordinator to exclusively used the 20% Development fund for socio-economic
programs and projects which are in the nature of investment or capital
expenditures.

b. Funds were disbursed out of the 20% Development Fund without the signatures of
Authorized Officials in the supporting documents contrary to Item 5 of Section 4
of PD 1445 thus, casting doubt to the validity and legality of the said transactions.

We recommended that the Municipal Mayor instruct the Municipal Accountant to

ensure that all disbursements are supported with complete documentation and
signature of proper officials before processing/approving future disbursements.

20. Audit of the Municipality’s implementation of 2014 planned Gender and

Development (GAD) programs, projects and activities and its compliance with GAD
laws, rules and regulations disclosed the following deficiencies:

a) The Local Government Unit (LGU) GAD Focal Point System (GFPS) provided in
Section 11 of RA No. 10121 was not yet organized/formally organized by the
Municipality contrary to Section 4.1A.1 of Philippine Commission on Women –
Department of the Interior and Local Government – Department of Budget and
management – National Economic and Development Authority Joint
Memorandum Circular (PCW-DILG-DBM-NEDA JMC) No. 2013-01, thus,
hinders the acceleration of the gender mainstreaming and institution of
mechanism to implement the Magna Carta for Women.

We recommended that the LCE fully comply with the requirement of Section
4.1A.1 of PCW-DILG-DBM-NEDA JMC No. 2013-01 and create the LGU-
GFPS in accordance with the structure and composition provided for in the
MCW-IRR i.e. the LGU GFPS shall have an Executive Committee headed by the
LCE, a Technical Working Group and/or a Secretariat. The LCE should sign an
appropriate issuance for the creation of GFPS by issuing office
order/appointments or passed a Sangguniang Pambayan Resolution/Ordinance
creating the same.

b) The submitted Annual GAD Plan Budget of the Municipality for FY 2014 totaled
only to P120,000.00, however, review of the submitted Annual Gad
Accomplishment Report showed that the Budget for GAD was P4,624,000.00
creating confusion on the evaluation and validation of the implementation of the
Municipality’s approved GAD Plan and Budget.

We recommended that the Municipality allocate the mandatory five percent (5%)
of the total appropriation for Gender and Development to sustain programs and
projects wherein women potentials are recognized, leading to equality among men
and women thereby enhancing their capability as partners in the pursuit of
building a better community. In addition, secure the approval of the DILG
Regional Director of the GAD Plan and Budget.

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 We also recommended that the reconciliation of the Annual Gad Plan and Budget
with the GAD Accomplishment Report to avoid confusion in the evaluation and
validation of the implementation of the Municipality’s Gad Plan and Budget.

Further, include in the submission of the Annual GAD Accomplishment Report

the detailed listing of obligations charged against GAD Fund and actual payments
made to facilitate the verification of fund utilization.

c) The Municipality failed to initiate activities leading to the establishment of the

Local GAD Code of the Municipality contrary to Section 4.1 E of PCW-DILG-
DBM-NEDA JMC No. 2013-01 affecting the Municipal government promotion
of gender-responsive governance.

We recommended that the Municipal Mayor pursue the establishment of the

Local GAD Code by issuing the instruction to the LGU GFPS to assist the
Sanggunian in the formulation of the Local GAD Code. We also recommend that
the LGU GFPS formulate measure that will ensure establishment of the Local
Government Code of the Municipality.

d) Based on the submitted Annual GAD Accomplishment Report, the Municipality

failed to utilized the full amount budgeted for GAD, as only P3,631,211.68 or
78.5% of the total budget of P4,624,000.00 was used during the year, thus, the
intent of GAD on promoting gender-responsive governance, protecting and
fulfilling women’s human rights, and promoting women’s empowerment as
mandated by the policies enumerated in Joint Memorandum Circular No. 2001-01
of DILG, DBM and NCRFW was not fully achieved.

We recommended that the Municipal Mayor require the LGU GFPS to fully
implement the GAD Plan and Budget so that the intent of GAD on promoting
gender-responsive governance, protecting and fulfilling women’s human rights,
and promoting women’s empowerment as mandated could be fully achieved. We
also recommend the LGU GFPS strictly monitor the implementation of the
planned GAD program, projects and activities to ensure that the plan was fully
implemented.

21. Audit of the Municipality’s Government’s budget and utilization of Local Disaster
Risk Reduction Management Fund (LDRRMF) and its compliance with laws, rules
and regulations governing the fund disclosed the following deficiencies:

a) The Municipality failed to maximize the utilization of LDRRMF, as only 69% or

P2,211,276.00 of the approved Mitigation Fund budget of P3,205,317.27 was
utilized, defeating the aims of RA No. 10121, the “Philippine Disaster Risk
Reduction and Management Act pf 2010” to strengthen and develop processes to
better prepare and lessen the impact of deadly and costly natural and man-made
hazards and disasters.

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 We recommended that the Municipal Government fully implement the LDRRMF
programs and see to it that all expenses incurred were in accordance with the
approve budget to strengthen and develop processes to better prepare and lessen
the impact of deadly and costly natural and man-made hazards and disasters.

b) The Local Disaster Risk Reduction and Management Council (LDRRMC)

provided in Section 11 of RA No. 10121 was not yet organized/formally
organized by the Municipality.

We recommended that the Municipal Government fully comply with the

requirement of Sec. 11 of RA No. 10121 otherwise known as ”The Philippine
Risk Reduction and management Act of 2012” and create LDRRMC by issuing
an office order/appointments or passed a Sangguniang Pambayan
Resolution/Ordinance creating the same.

c) The Municipality failed to submit the LDRRMF reports required under the
accounting and reporting guidelines provided under COA Circular No. 2012-002
and with the provision of Section 4 (1), Rule 5 of the IRR of R.A. 10121 giving
difficulty in the evaluation of LDRRMF accomplishment and fund utilization.

We recommended that the LDRRMO and the Municipal Accountant to adhere to

the guidelines set forth in COA Circular No. 2012-002 and prepare and submit the
Monthly Report on Sources and Utilization of DRRMF within the period
prescribed, which is on or before the 15th day after the end of each month. In
addition, we recommend that the Municipality submit to the Office of the Auditor
all the requested documents and information to enable the proper review and
evaluation of the implementation and utilization of the LDRRMF.

STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT

RECOMMENDATIONS

Out of the thirty-three prior year’s audit recommendations embodied in the 2013
Annual Audit Report, six were fully implemented, ten were partially implemented and
nine were ongoing and eight were not implemented.

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