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Ref.
Audit Observations Audit Recommendations Status of Implementation
AAR 39. The Municipal government availed We recommended that Management:
2019 of a loan from Land Bank of the
p.32 Philippines (LBP) amounting to 59. Submit the loan agreement together with Unimplemented
₱27,022,591.63 to finance expansion of the certified true copy of the SB Resolution Records showed that
motor pool through acquisition of three bearing the signatures of all concurring SB Management had submitted
units brand new heavy equipment, with members, BSP Opinion of the Monetary photocopies of the Resolution
longer payment terms beyond the term of Board together with the requisite No. 52, series of 2018, Monetary
incumbent officials, agreed to terms documents, BLGF-DOF certifications, Board Opinion, and DOF-BLGF
disadvantageous to the Municipality, certification by the Municipal Budget certification, as supporting
which was not fully supported with the Officer, Municipal Accountant and documents only to JEV No. 100-
requisite certifications and documents to Municipal Treasurer noted by the LCE, the 1912-2698 dated December 31,
justify the necessity of contracting the said pertinent Promissory Note and other 2019, which recorded the
amount, and lastly, the loan proceeds as collateral documents, and the supplemental acquisition of three units heavy
well as the related expenditures were not AIP; and equipment in the books of
reported in the Statement of Comparison of accounts of the Municipality. In
Budget and Actual Amounts, affecting the addition, a copy of the 2019 AIP
validity and propriety of the undertaking. Addendum No. 09 and
Appropriation Ordinance No. 10
were submitted through
electronic mail on July 30, 2020.
However, all the documents
submitted were not certified true
copies. Also, the certification of
the MBO, Accountant and
Treasurer duly noted by the LCE,
and pertinent Promissory Note
and other collateral documents,
had not been submitted to the
Audit Team.
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