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Ref.
                    Audit Observations                              Audit Recommendations                       Status of Implementation


         Circular No. 77-61 dated September 26,              Driver’s Trip Tickets to ensure that all the
         1977, thus, the reasonableness of fuel              data    needed     to     determine      the
         consumption and the necessity of the trips          reasonableness of fuel consumed for the
         undertaken could not be determined.                 period and the necessity of the trips
                                                             undertaken are provided.

AAR    19.      Payments of seed capital assistance      25. We recommended that the Municipal                        Unimplemented
2021     granted as a loan to the beneficiaries of the       Accountant reclassify the amount granted        The Municipal Accountant had
p.35     backyard       cattle    fattening    project       as seed capital fund to the farmer’s            commented          that         the
         amounting to ₱9,550,000.00 were recorded            associations recorded to expense or liability   recommended adjusting entry is
         to either a liability account or an expense         accounts to the proper asset account “Other     not possible since the affected
         account instead of the asset account “Other         Receivables” (1-03-06-990) by making the        accounts do not have the same
         Receivables” (1-03-06-990), thus total              following adjusting entry:                      normal balances and effecting the
         liabilities and total assets were understated                                                       entry would result in an
         by at least ₱9,550,000.00 as of December                             Debit          Credit          unbalanced financial report.
         31, 2021.                                        Other            9,550,000.00                      Accounting personnel are still
                                                          Receivables                                        locating the source documents
                                                          Prior                            100,000.00        for the erroneous entries so it can
                                                          Period                                             be corrected.
                                                          Adjustment
                                                          Trust                           4,300,000.00
                                                          Liabilities
                                                          Trust                           2,100,000.00
                                                          Liabilities –
                                                          DRRMF
                                                          Due         to                  3,050,000.00
                                                          NGAs

                                                         26. We further recommended that Management         Unimplemented
                                                             make the necessary adjustments in the Management had yet to the make
                                                             books of accounts for the seed capital adjustments.
                                                             assistance granted as a loan to the

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