6.7 We recommended and the Municipal Accountant agreed to establish internal
accounting policies to identify whether a particular expenditure pertains to
Other Maintenance and Operating Expenses, Training Expenses,
Extraordinary and Miscellaneous Expenses, etc.
6.8 We further recommended and the Municipal Accountant agreed to,
henceforth, strictly follow the Revised Chart of Accounts, as required in COA
Circular No. 2015-009.
6.9 Lastly, we recommended and the Municipal Budget Officer agreed, in
coordination with the Municipal Treasurer and Municipal Accountant, to
ensure that annual appropriation and disbursement of funds for discretionary
purposes are within the statutory limit provided for in Section 325(h) of RA
No. 7160.
Unreconciled cash in bank balance - ₱8,011,497.85
7. The Cash in Bank – Local Currency Current Account (LCCA) balance reported
in the financial statements as of December 31, 2024, totaling ₱60,137,598.45,
includes unreconciled items amounting to ₱7,939,976.89 and ₱71,520.96, in the
General Fund and Trust Fund, respectively, due to a lack of coordination between
the Offices of the Municipal Accountant and Municipal Treasurer in the previous
years, which is inconsistent with Section 3.0 of COA Circular No. 96-011, dated
October 2, 1996, thus, the accuracy of the aforementioned account cannot be
determined.
7.1 Section 74 of Presidential Decree (PD) No. 1445 provides that “at the close of each
month, depositories shall report to the agency head, in such form as he may direct,
the condition of the agency account standing on their books. The head of the
agency shall see to it that a reconciliation is made between the balance shown
in the reports and the balance found in the books of the agency.” [Emphasis
provided]
7.2 Pursuant to the above PD, Section 3.0, “General Policy/Guidelines,” of COA
Circular No. 96-011, dated October 2, 1996, requires the depository or servicing
banks to provide the Local Accountant with Bank Statements (BS), along with
debit/credit memos (DM/CM), and paid checks, among others, within five days
after the end of each month. These documents will serve as the basis for preparing
the monthly Bank Reconciliation Statements (BRS). Within 10 days of receiving
the BS, the Accountant shall reconcile these with the General Ledgers (GL) and
prepare the BRS, which shall be distributed in five copies. The duplicate and
quadruplicate copies of the BRS, including paid checks and original copies of
DM/CM, shall be submitted to the concerned Auditor for verification.
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