2. Loans totaling ₱2,461,183.81 granted to individuals and people’s organizations have
remained outstanding for over 10 years due to the inaction of the LGU to demand and
strictly enforce the collection of the loans, depriving the government of funds that could
have been used for expanding the program or implementing other priority projects.
We recommended 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.
Henceforth, we recommended 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.
3. 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,
increasing the risk of irregular or unsupported expenditures compromising the integrity and
accountability of public fund utilization.
We recommended that the Municipal Mayor direct:
a. The Municipal Accountant to ensure that all disbursement vouchers (DVs) and claims
against public funds are supported with complete, accurate, and relevant documents in
accordance with Section 4(6) of Presidential Decree No. 1445, which states that claims
must be backed by complete documentation.
b. The Municipal Treasurer to mandate the use of “PAID” stamps on all DVs and
supporting documents immediately after payment to establish proof of settlement,
prevent duplicate disbursements, and maintain a clear audit trail.
c. The LDRRM Officer to review the Activity Design of all LDRRM activities to ensure
that the planned objectives, target participants, and budget allocations are clearly
defined, realistic, and aligned with actual implementation.
d. All Department Heads to use the updated forms such as the DV, PR etc. as prescribed
in the Manual of New Government Accounting System for LGUs.
e. All Department Heads and personnel responsible for any transaction to review, sign,
and fill in all the information needed in the Disbursement Voucher, Purchase Request,
Requests for Quotation, Purchase Orders, Activity Designs, Acceptance and Inspection
Reports, and other related pertinent documents.
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