Account Title Amount
Extraordinary and Miscellaneous Expense ₱ 6,230,515.21
Training Expenses 2,434,615.34
Honoraria 544,500.00
Subsidy to Other Funds 130,000.00
Donations 101,612.50
Salaries and Wages – Casual/ Contractual 98,274.67
Office Equipment 76,793.28
Semi-Expendable Agricultural and Forestry Equipment 47,952.00
Accountable Forms, Plates and Stickers 44,640.00
Repairs and maintenance – Transportation Equipment 37,083.10
Welfare Goods for Distribution 28,000.00
Subscription Expenses 24,200.00
Disaster Response and Rescue Equipment 5,856.00
Office Supplies Inventory 2,839.28
Total ₱ 9,806,881.38
6.4 Apart from the Chart of Accounts recommended by the Commission, Section 51
of the General Provisions, General Appropriations Act (GAA) of CY 2024
provides that Extraordinary and Miscellaneous Expenses (EME) encompass costs
incurred for meetings, seminars and conferences, official entertainment, public
relations, educational, athletic and cultural activities, contributions to civic or
charitable institutions, membership in government associations, membership in
national professional organizations accredited by the Professional Regulation
Commission, membership in the Integrated Bar or the Philippines, subscription to
professional technical journals and informative magazines, library books and
materials, office equipment and supplies, and other similar expenses not supported
by the regular budget allocation.
6.5 However, it is emphasized that the statutory limitation on the disbursements for
EME or discretionary funds shall be observed. We refer Management to Section
325(h) of RA No. 7160, which mandates that the annual appropriations for
discretionary purposes of the local chief executive shall not exceed two percent of
the actual receipts derived from basic real property taxes in the next preceding
calendar year.
6.6 Given the above, the misclassification of expenditures amounting to ₱9,806,881.38
under the Other Maintenance and Operating Expenses (OMOE) account
compromises the integrity and usefulness of the Municipality's financial reports.
While the expenses were valid and incurred for legitimate purposes, their improper
classification distorts the presentation of financial statements, which can mislead
users and hinder effective decision-making, performance evaluation, and resource
allocation. Accurate recording based on the Revised Chart of Accounts is essential
to ensuring transparency, accountability, and compliance with COA regulations,
as well as to upholding the standards of financial reporting prescribed under IPSAS
and national laws.
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