Annex A
Status of Implementation/
Ref. Observation Recommendation
Results of Validation
Manual (GAAM), Volume I, resulting in Account (1-01- 02-010) and crediting
erroneous and unreliable Cash Local Cash- Local Treasury (1-01-01-010)
Treasury account balance as of December amounting to ₱11,000,000.00 based on
31, 2021. the bank credit memo to recognize the
a. The reconciliation of the cashbook deposit of the fund transfer; and
balance with the subsidiary accounting 30. Require the Municipal Accountant and Unimplemented
records was not complied with; thus, we Municipal Treasurer to, henceforth,
could not ascertain both records’ accuracy, conduct regular reconciliation of the
completeness, and correctness. cashbooks with the subsidiary
b. The Local Government Support Fund accounting records in accordance with
(LGSF) from the Department of Budget and Sections 63(A.2) and 63.F of the Local
Management (DBM) directly credited to the Treasury Operations Manual and
Municipality’s bank account amounting to pertinent provisions of the NGAS
₱11,000,000.00 was erroneously recorded Manual.
as Cash Local Treasury (1-01-01-010),
thereby overstating the account by the same
amount.
The reliability and accuracy of the reported 31. The Municipal Treasurer furnish the Unimplemented
2021 AAR
AO No.3, account balances of Real Property Tax Municipal Accountant at the beginning
Page 32 Receivable (1-03-01- 020), Deferred Real of the year with a certified list of
Property Tax (2-05-01-010), Due to BIR (2- taxpayers with the amount due and
02-01-010), and Due to NGAs (2-02-01- collectible for the current year as their
050) in the General Fund are doubtful basis for recording the RPT and SET
because of the absence of the updated Receivables in compliance with
subsidiary ledgers, resulting in
