11. On January 22, 2025, the Audit Team requested the submission of the FS, including
schedules of subsidiary ledger balances for the controlling accounts in the general
ledger (GL) as of December 31, 2024. However, the Municipal Accountant was unable
to comply.
12. Due to the non-submission of the financial statements on February 14, 2024, we issued
a demand letter on February 17, 2025, requesting that the Municipal Accountant
promptly submit the year-end financial statements.
13. When no action was taken, a second demand letter was sent on March 31, 2025. In line
with Section 122 of Presidential Decree (PD) No. 1445, we recommended to the Local
Chief Executive (LCE) the suspension of the Municipal Accountant’s salary due to
continued non-compliance. We also reminded Management that under Section 127 of
the same Decree, any unjustified failure of a public officer to comply with the
requirements of the Code constitutes neglect of duty, which may warrant administrative
disciplinary action. If found guilty after due process, the responsible officer shall be
penalized in accordance with the Civil Service Law.
14. Our interview with the Municipal Accountant revealed that they recently finished
encoding the December Cash Disbursement Vouchers, which were submitted by the
Municipal Treasurer’s Office toward the end of January 2025. Additionally, the
accounting office faced staffing challenges, as one encoder transferred to another
agency and another staff member recently retired. Currently, the accounting office is
focused on cleansing Property, Plant, and Equipment (PPE) records, posting to the
Subsidiary Ledger (SL), and making adjusting entries to reconcile items from the Bank
Reconciliation Statements (BRS). The Municipal Accountant has assured us that the
financial statements will be submitted by the first week of March 2025.
15. However, as of this date, the Municipal Accountant has still not submitted the FS and
trial balances.
16. The delayed submission of the FS not only hindered the timely conduct of audit
procedures but also limited Management’s ability to access relevant and current
financial information necessary for prudent planning and operational decisions. The
non-compliance with the mandated deadline undermines fiscal transparency and
accountability in local governance.
17. We recommended and the MTO agreed to establish a strict internal schedule for
the timely submission of all accounting source documents to avoid delays in the
preparation of the year-end FS.
18. We also recommended and the Human Resource Management Officer (HRMO)
agreed to prioritize the prompt hiring and deployment of qualified personnel to
fill the vacant positions in the accounting office, subject to the lifting of the
COMELEC election ban, to ensure continuity and efficiency in financial reporting
activities.
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