funds granted to them shall retain their character as public funds, in accordance
with Section 4.1 of the said Circular.
5.4 Examination of the Loans Receivable – Others account (01-03-01-990) amounting
to ₱25,283,319.72 showed, however, that it includes receivables from
Cooperatives, NGOs/POs, beneficiaries of Self-Employment Assistance sa
Kaunlaran (SEA-K), and others, summarized as follows:
Beneficiaries/Grantees Amount
Cooperatives ₱ 4,201,565.13
NGOs/Pos 19,480,706.19
Sub-total 23,682,271.32
SEA-K 152,736.00
Others 1,448,312.40
Sub-total 1,601,048.40
Total ₱ 25,283,319.72
5.5 Upon perusal of the receivables, on a sampling basis, we also observed that the
payors of those under “Others” were individual persons. We noted that these were
balances carried forward from previous years, before the establishment of the e-
NGAS. Since the adoption of the e-NGAS by the City Government, there have
been no changes in the balances of this account.
5.6 Verification of sample transactions in the account revealed that collections were
made from loans granted in previous years, as well as from the beneficiaries of the
SEA-K program. It also showed that in CY 2024, the City Government granted
Kalamtukan Agrarian Reform Beneficiaries Cooperative (KARBECO) a loan
amounting to ₱800,000.00, pursuant to Resolution No. 719, issued on November
13, 2023, by the Sangguniang Panlungsod. This Resolution authorized the
Honorable Mayor to enter into a Memorandum of Agreement (MOA) by the City
Cooperative and Manpower Development Office (CCMDO), on behalf of the City
Government of Bayawan, with KARBECO, represented by its Chairman, relative
to the cooperative’s application for livelihood assistance through the program
“Financial Assistance to Cooperatives, PO’s and Farmers Association” in the
amount of ₱800,000.00.
5.7 In KARBECO’s application, the cooperative, through its Chairman, requested
financial assistance from the City Government through the aforementioned
program. Attached to the application is the cooperative’s Resolution No. 09, Series
of 2023 dated May 2, 2023, which states that the purpose of seeking financial
assistance is for its project, “Fertilizer, Herbicide, Pesticides and other Agrivet
Supplies”. In the MOA executed by the Honorable Mayor with KARBECO, it was
stated that KARBECO is “found to be qualified to avail of the Livelihood fund
Assistance” in the amount of ₱800,000.00, payable in four years, with quarterly
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