o This account is used to record amounts of credit extended to debtors not
otherwise specifically classified. Credit this account for receipt of loan
repayments.
❑ Due from Non-Government Organizations/People’s Organizations (1-03-06-
030)
o This account is used to record amount of advances granted to Non-
Government Organizations (NGOs)/People’s Organizations (POs) for
implementation of specific projects. Credit this account for liquidation of
advances.
5.13 Following the provisions of COA Circular Nos. 2007-001 and 2015-009, it is
appropriate to reclassify those funds granted to Cooperatives and NGOs/POs as
Due from NGOs/POs. This is also in line with the LGU’s mandate to provide
assistance to these organizations for projects that would be implemented within its
jurisdiction. As a non-profit government unit with the role of promoting the
establishment and operation of these NGOs/POs, the true intention of Management
shall be evaluated whether to grant this financial assistance, subject to liquidation
or payment.
5.14 We recommended that Management strictly implement the guidelines and
procedures established under COA Circular No. 2007-001 in the granting,
utilization, accounting, and auditing of all funds released to non-governmental
organizations and/or people’s organizations.
5.15 We further recommended that Management demand liquidation of these
funds in accordance with the aforementioned issuance.
5.16 Lastly, we recommended that, henceforth, Management re-evaluate their true
intentions in granting financial assistance to organizations and individuals,
ensuring compliance with the law so that proper accounting and recording
can be made.
5.17 The City Planning and Development Officer (CPDO) explained that the primary
goal of the fund transfer was to provide financial assistance. However,
Management included a cost-recovery scheme to regain the capital. The City
Mayor mentioned that the funds were loaned to farmers for their financial support,
while also requiring repayment to enable Management to recover the capital.
5.18 Management should assess the true intention of its program. However, it is
emphasized that all transfers to NGOs/POs should be guided by COA Circular
2007-001, wherein it is the City Government that identifies priority programs and
chooses the appropriate NGO/PO to implement them.
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