Significant Findings and Recommendations
The following are the significant observations and recommendations in the audit and/or
evaluation of the operations of the Municipality for CY 2024. These and other audit
observations discussed by the Audit Team with Management in an exit conference on May 8,
2025, are fully presented in Part II of this Report.
1. The Accounts Payable balance of ₱14,059,061.35 was not fairly presented due to the
inclusion of unpaid obligations amounting to ₱2,465,908.11, of which ₱2,232,423.11
remained outstanding for more than two years and were neither reverted to the
unappropriated surplus, thus, may no longer represent valid claims.
We recommended that the Municipal Accountant coordinate with the Municipal Budget
Officer and the Municipal Treasurer to determine whether the Accounts Payable totaling
₱2,465,908.11, aged from over one year to more than 10 years, were recorded based on
obligation requests duly supported by supplier bills/invoices and accomplished Inspection
and Acceptance Reports, to ensure the validity and accuracy of the liability account
presented in the financial statements.
We further recommended that, henceforth, the Municipal Accountant recognize liabilities
only at the time goods and services are accepted or rendered and supplier or creditor bills
are received, based on valid claims that are adequately supported by sufficient and
appropriate evidence.
2. The cost of 12,644 bags of 10-kilogram rice, amounting to ₱7,143,860.00, procured
using the prior years’ unexpended LDRRMF, was incorrectly recorded as a direct
debit to the Trust Liabilities – DRRMF account instead of the Welfare Goods
Expenses account, thus affecting the reliability of financial reporting and the
accurate presentation of expenses related to disaster response.
We recommended that the Municipal Accountant strictly adhere to the illustrative
accounting entries prescribed under COA Circular Nos. 2012-002 and 2015-009 in
recording the utilization of the unspent LDRRMF to ensure proper accounting and
accurate financial reporting of trust fund transactions.
3. The Municipality’s recording of various medicines and medical supplies worth
₱2,235,426.25 used for GAD programs and projects, was without the proper
documentation of actual issuance, specifically the Requisition and Issue Slip (RIS)
and Summary of Supplies and Materials Issued (SSMI), thereby compromising the
accuracy of expense recognition and rendering the balances of the Drugs and
Medicines Inventory and Medical, Dental and Laboratory Supplies Inventory
accounts unreliable as of December 31, 2024.
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