limit the municipality’s ability to meet financial obligations and deliver essential
services to its constituents, as it has been deprived of funds that could have been used
for public services, infrastructure projects, and other programs.
4.8. This observation was communicated to Management through Audit Observation
Memorandum (AOM) No. 2025-03(2024)-Ayungon dated March 21, 2025.
4.9. We recommended and Management agreed that the Municipal Treasurer and
Municipal Accountant, with the concurrence of the Local Chief Executive,
evaluate the collectability of these loans and exhaust all efforts to collect from
the debtors, such as sending demand letters, conducting follow-ups, negotiating
payment terms, or implementing legal actions.
4.10. Henceforth, we recommended and Management agreed that the Municipal
Accountant maintain subsidiary records for future borrowers to monitor each
borrower’s status and provide detailed records that support the General Ledger
to ensure accurate financial reporting.
Lacking Supporting Documents
5. The utilization of the Local Disaster Reduction and Management Fund (LDRRMF)
amounting to ₱198,850.00 was paid despite the absence and inaccuracy of supporting
documents due to insufficient review by responsible personnel from various
departments, resulting in non-compliance with Section 4(6) of Presidential Decree No.
1445 and increasing the risk of irregular or unsupported expenditures compromising
the integrity and accountability of public fund utilization.
5.1. Section 4(6) of Presidential Decree No. 1445 states, “Claims against government
funds shall be supported with complete documentation.”
5.2. We conducted a post-audit of ten (10) disbursement vouchers (DV) of the utilization
of the Local Disaster Risk Reduction and Management Fund (LDRRMF) for
Calendar Year 2024 and noted the following significant observations, as detailed in
Appendix 3.
5.11.1. The payment of food ingredients used for the meal of the responders in the
search and retrieval operation on a reported missing person in the Barangay
Anibong, Ayungon, Negros Oriental was supported with a wrong Sales
Invoice. The transaction was only for ₱5,850.00 but the sales invoice attached
was for the purchase of 50 bags of milled rice in the amount of ₱139,000.00
for the Municipality. This discrepancy indicates a lack of proper
documentation to support the validity and accuracy of the claimed expense.
5.11.2. The DV for the payment of snacks of ₱10,000.00 for the 1st quarter National
Earthquake Simultaneous Drill 2024 does not bear the signature of the
Municipal Treasurer that certifies that the funds are available for this
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