Road Networks 305,969,402.21
Building 6,923,262.95
Dams/Reservoirs 788,666.67
Total 313,681,331.83
7.5 The incompleteness of the disclosures in the Notes to Financial Statements with
respect to the Road Network account resulted in incomplete financial information,
which departs from the fair presentation attribute required in the cited provisions
of IPSAS and COA Circular No. 2015-008. In turn, the usefulness of financial
information contained in the financial statements to its users, insofar as road
networks are concerned, is also affected. Therefore, the users of the financial
statements, particularly the constituents of the City Government, are provided with
inadequate financial information.
7.6 We recommended that the City Accountant, henceforth, include the required
disclosures on the Road Network account as required under COA Circular
No. 2015-008.
7.7 The City Accountant already updated their Notes to Financial Statements, adding
the necessary disclosures for the Road Networks.
OTHER FINANCIAL RELATED ISSUES
Utilization of the 20 percent DF not optimized
8. Only 43 out of the 178 projects programmed under the 20 percent Development
Fund (DF) were implemented because of factors such as accessibility of project
location and availability of heavy equipment and materials, among others, thus
not achieving optimum efficiency in providing basic facilities and services to the
constituents, as mandated under Section 17 of the RA No. 7160.
8.1 Section 17 of Republic Act 7160, or the Local Government Code of 1991, provides
that LGUs should endeavor to be self-reliant and continue exercising their powers
and discharging their vested duties and functions. Aside from these, the LGUs
should discharge such other functions and responsibilities that are necessary,
appropriate, or incidental to the efficient and effective provision of the basic
services and facilities.
8.2 Consistent therewith, Section 287 of the same Code requires each LGU to
appropriate no less than 20 percent of its internal revenue allotment for
development projects. This is to ensure that funds are earmarked for projects
intended to uplift the standard of living of its constituents. Thus, aside from
appropriation, the Code wants to ensure that the allocated percentage is maximized
in terms of the implementation of developmental projects in each LGU.
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