8.9 As a result of the non-settlement of cash advances, which may have already been
used, considering that these have been outstanding for a long time, the related
receivable and expense accounts on the financial statements are not accurately
presented. Moreover, the delayed liquidation and the holding of any excess cash
advances that should have already been refunded by the officials and employees
concerned open opportunities for misuse or misapplication of cash, hence
increasing the risk of possible loss of government funds in their possession.
8.10 Given that the demand letters have already been sent and the accountable officers
still refuse to make the settlement, it appears that their inaction is intentional.
Thus, Management should exert strong efforts to compel those with long
outstanding cash advances to immediately settle the same and strictly enforce the
suspension of salaries of the erring accountable officers, including the filing of
appropriate administrative proceedings, pursuant to the Civil Service Commission
(CSC) Memorandum Circular No. 12, s. 2012.
8.11 We recommended and the Municipal Accountant agreed to issue final
demand letters directing the individuals involved to immediately liquidate all
outstanding cash advances. If no liquidation is made, we recommend that the
Municipal Accountant impose the sanction of withholding the salaries of
those who still fail to settle their accounts after receiving notice.
8.12 We further recommended and Management agreed to take aggressive
measures to compel all accountable officers to settle their accounts, including
the filing of appropriate administrative proceedings, pursuant to CSC
Memorandum Circular No. 12, s. 2012.
Inventory accounts remained unchanged since CY 2018 - ₱2,412,710.31
9. Supplies and materials issued during the year were not recognized as expenses and
still remained in the Other Supplies and Materials Inventory account amounting
to ₱2,412,710.31 as of December 31, 2024, as the SSMI was not submitted by the
Municipal Treasurer, which is inconsistent with Sec. 121 of the NGAS Manual for
LGUs Vol. 1, which may result in the overstatement of the inventory balance and
equity account, and understatement of related expense accounts.
9.1 Section 121 of the NGAS Manual for LGUs, Vol. 1 requires the Municipal
Treasurer to consolidate the RIS weekly for supplies and materials issued using the
SSMI and submit the same to the Municipal Accountant. Based on the SSMI, a
journal entry voucher shall be prepared to record the expenditures using
appropriate expenditure accounts.
9.2 A review of the Other Supplies and Materials Inventory (Account Code: 1-04-04-
990) account disclosed that as of December 31, 2024, no deductions or issuances
were recorded during the year, despite the Municipality incurring regular
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