6. We wish to bring to your attention the following significant observations and
recommendations from the audit of the operations of the Municipal Government of
Amlan for the year ended December 31, 2024, along with other relevant information
regarding the Municipal Government, as obtained from the records of the Audit Team
and the financial and other reports submitted by Management for audit:
a) Status of audit for CY 2024 accounts
i. The audit of the CY 2024 accounts of the Municipality could not be
completed because the Municipality did not submit the financial statements,
trial balances, and corresponding General and Subsidiary Ledgers.
ii. Of the 103 recommendations from previous years, six were implemented
and 97 were not implemented, as shown in the validation results presented
in Annex A.
iii. We have the following audit observations for the year ended December 31,
2024:
7. The Municipal Accountant was unable to submit the Municipality’s year-end
financial statements (FS) for CY 2024 within the prescribed period, contrary to
Section 41(2) of PD No. 1445 and Section 4.1 of COA Circular No. 2010-01 dated
March 2, 2010, thereby depriving the municipal officials of timely financial data
essential for informed decision-making.
8. Section 41(2) of Presidential Decree (PD) No. 1445, or the Government Auditing Code
of the Philippines, provides that the chief accountant or the official in charge of keeping
the accounts of a government agency shall submit to the Commission year-end trial
balances and such other supporting or subsidiary statements as may be required by the
Commission not later than the fourteenth day of February.
9. Moreover, the same provision is found in Section 4.1 of COA Circular No. 2010-01
dated March 2, 2010, which states that the accountant shall submit the year-end FS and
schedules to the auditor on or before February 14 of each year. This amends the
provisions in Sec. 3.1 of COA Accounting Circular Letter No. 2007-002 dated January
19, 2007, which provides that year-end FS shall be submitted within 60 days after
December 31 of each year.
10. Consistent with the adoption of the Philippine Public Sector Accounting Standards
(PPSAS) in the LGUs, Section 3.4 of COA Circular 2016-004 dated September 30,
2016, prescribed the presentation of the financial statements as follows:
10.1. Statement of Financial Position;
10.2. Statement of Financial Performance;
10.3. Statement of Changes in Net Assets/Equity;
10.4. Cash Flow Statement;
10.5. Comparison Statement of Budget and Actual Amounts (SCBAA); and
10.6. Notes to Financial Statements.
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