3.4 As of December 31, 2024, the Municipality’s Accounts Payable balance amounted to
₱14,059,061.35, as shown in the table below:
Over 1 - 2 Over 2 - 10 Over 10
Fund Total Current
yrs. yrs. yrs.
General Fund
CY 2024 ₱11,018,653.64 ₱11,018,653.64 ₱ - ₱ - ₱ -
CY 2023 67,114.00 - 67,114.00 - -
CY 2021 & prior 2,193,711.60 - - 2,118,095.00 75,616.60
Sub-total 13,279,479.24 11,018,653.64 67,114.00 2,118,095.00 75,616.60
Special Education Fund
CY 2024 574,499.60 574,499.60 - - -
CY 2023 140,011.00 - 140,011.00 - -
CY 2022 26,360.00 - 26,360.00 - -
CY 2019 38,711.51 - - 38,711.51 -
Sub-total 779,582.11 574,499.60 166,371.00 38,711.51 -
Total ₱14,059,061.35 ₱11,593,153.24 ₱ 233,485.00 ₱ 2,156,806.51 ₱ 75,616.60
3.5 Analysis of the account showed that ₱2,465,908.11 of this amount remained
outstanding for over one year to more than 10 years, as summarized in the table
below:
Age of Accounts Payable Amount
Current ₱ 11,593,153.24
Over 1 - 2 years ₱ 233,485.00
Over 2 years – 10 years ₱ 2,156,806.51
Over 10 years ₱ 75,616.60 ₱ 2,465,908.11
Total ₱ 14,059,061.35
3.6 An inquiry with an employee from the Municipal Treasurer’s Office revealed that
there are still vouchers related to obligations for CYs 2024 and 2023 that remain
unpaid, as they still lack the necessary signatures from the Municipality’s authorizing
parties.
3.7 Additionally, a review of the Accounts Payable supporting schedule for prior years
indicated that obligations were recorded based on obligation requests. An inquiry
with the Municipal Accountant revealed that, during her tenure, obligation requests
were already supported by billings and invoices. However, she is uncertain whether
the recordings in prior years were based solely on obligation requests or also
supported by Inspection and Acceptance Reports (IARs) and/or suppliers’ invoices,
which serve as evidence of actual delivery and acceptance of goods or services by
Management. The need to verify prior years’ accounts raises doubt about the validity
of the claims at the time they were recorded.
3.8 This practice is inconsistent with Section 9, Volume 1 of the NGAS Manual, which
requires that obligations be recorded in the books only upon submission of complete
supporting documents to the Budget Officer for certification. Moreover, Section 4(s),
Volume 1 of the same Manual, states that “Liability shall be recognized at the time
goods and services are accepted or rendered and supplier/creditor bills are received.”
35
