Ref.
Audit Observations Audit Recommendations Status of Implementation
DBM Local Budget Circular (LBC) No. 55. We further recommended that Management Implemented
124 dated March 26, 2020, thus, reducing adhere strictly to the provisions of DILG
the funds available for disaster risk Memorandum Circular No. 2012-73 dated
management, relief, rehabilitation and April 17, 2012, NDRRMC-DBM-DILG
recovery programs. Joint Memorandum Circular No. 2013-1
dated March 25, 2013 and DBM LBC No.
124 dated March 26, 2020 on the use of the
LDRRMF.
AAR 38. The Municipality made some 56. We recommended that Management Unimplemented
2019 adjustments to the Property, Plant, and prepare the following reversal entry: Management maintained that the
p.29 Equipment (PPE) - Land account for a net appraisal should be taken up as
credit amount of ₱11,634,391.19, contrary Account part of the Notes to Financial
to the pertinent provisions of Philippine Title Debit Credit Statements (FS) only to conform
Public Sector Accounting Standard Land 11,677,081.19 to the basic accounting principles
(PPSAS) No. 17, affecting the accuracy Government 11,677,081.19 of materiality and conservatism.
and reliability of the account balance Equity
amounting to ₱3,842,754.46 as of
December 31, 2019, thus, the financial 57. We also recommended that Management Unimplemented
statements were not fairly presented. exhaust all means to determine the The determination of the
acquisition costs of Lot Nos. 1840, 1841, acquisition costs of the lots is
1851-B, 1852, 1855, 1856, 1894, and 3181 still ongoing, as they were
so that appropriate adjustment in the acquired many years ago.
recorded costs may be made accordingly.
58. Lastly, we recommended that, henceforth, Unimplemented
Management adhere to the provisions set This recommendation had not
forth under PPSAS No. 17 for the been adhered to due to some
accounting treatment for property, plant, adjustments still to be made to
and equipment to present fairly the the costs.
financial statements.
81
