Annex A
Status of Implementation/
Ref. Observation Recommendation
Results of Validation
negative/abnormal balances, contrary to Sections 19(b) and 20, Volume I of the
Sections 111(2) and 112 of Presidential NGAS Manual.
Decree (P.D.) No. 1445 and Section 27 of 32. The Municipal Accountant prepare the Unimplemented
the Philippine Public Sector Accounting adjusting entry debiting Cash in Bank-
Standards (PPSAS) No. 1, thereby, affecting Local Currency, Current Account (1-01-
the fair presentation of the financial 02-010) and crediting Due to NGAS (2-
statements. 02-01-050) amounting to
a. Real Property Tax Receivable was not ₱11,000,000.00.
established at the beginning of the year 33. The Municipal Mayor instruct the Unimplemented
based on the duly certified list of tax Municipal Accountant to update and
collectibles from the Municipal Treasurer maintain the subsidiary ledgers of the
contrary to Section 19(b) and 20 of the general ledger accounts, conduct a
Manual on the New Government thorough review of the affected accounts
Accounting System (NGAS), Volume I. to determine the other causes of the
b. The Local Government Support Fund abnormal balances, initiate
(LGSF) from the Department of Budget and corrections/adjustments, and thereafter
Management (DBM) directly credited to the come up with all accounts in their
Municipality’s bank account amounting to normal balances to fairly present the
₱11,000,000.00 was erroneously recorded financial statements.
in the books of accounts, thereby,
understating Due to NGAs account by the
same amount.
