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Ref.
                    Audit Observations                        Audit Recommendations                    Status of Implementation


                                                   93. We also recommended that the farmer               Unimplemented
                                                       beneficiaries be required to return the The amount loaned included the
                                                       excess grant of capital assistance.     purchase price of each cattle,
                                                                                               with the remaining balance used
                                                                                               for feeds and other needs related
                                                                                               to cattle fattening. Management
                                                                                               mentioned that the beneficiaries
                                                                                               fulfilled      their       payment
                                                                                               obligations, allowing the next
                                                                                               batch of beneficiaries to avail of
                                                                                               the loan. Due to the good
                                                                                               repayment        turnover,     the
                                                                                               livelihood program was made
                                                                                               available to many farmers from
                                                                                               different barangays in the
                                                                                               Municipality.

AAR     58.     The Local Government Unit 94. We recommended that the Municipality                           Unimplemented
2016,     maintained two non-interest earning        close its deposit accounts with the PVB and    The Municipality had already
p. 41     deposits with private banks contrary to    RBB and deposit the same to a government       closed the account it maintained
          Section 311 of RA No. 7160 and Section     financial institution granting high interest   with PVB. However, its RBBI
          5.2 of Department of Finance (DOF)         rates.                                         account is still being maintained.
          Circular No. 001-2015 dated June 1, 2015,
          thus, funds might not be totally
          safeguarded against loss while depriving
          the Municipality from earning additional
          interest on bank deposits to fund projects
          and programs.




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