3. Management did not maintain a separate bank account for its 20 percent
Development Fund (DF) special account, making it difficult to determine, in a
timely manner, the availability of actual cash backup of the unutilized balance of
₱244,914,818.32 as of December 31, 2024, which consists of current and continuing
appropriations for the implementation of development projects.
We recommended that the City Accountant and the City Budget Officer reconcile their
reports and determine the actual funds available for ongoing and/or unimplemented
projects under the 20 percent DF. We further recommended that Management, upon the
authorization of the Sanggunian, open a separate bank account in the General Fund for
the 20 percent DF, to which the City Accountant and City Treasurer transfer the
determined or reconciled balance of the said account.
4. The City Government placed a total of ₱385 million into four time deposit
accounts, of which ₱366 million represents the cash back-up of its current and
continuing capital outlay appropriations under the General Fund, leaving only
₱19 million as idle funds, thus, tying up funds necessary for the timely
implementation of projects and activities.
We recommended that Management transfer the funds from the time deposit accounts
to the City’s regular savings or current account upon maturity to ensure cash availability
when required for project implementation. We further recommended that Management
review the funds intended for capital outlay projects that are placed in time deposit
accounts and assess whether these projects are still subject to implementation or not. If
not, such funds shall be reverted to the unappropriated surplus of the General Fund and
realigned to appropriate capital expenditures.
5. Defects in the procurement process for the construction of farm-to-market road
(FMR) projects and the purchase of vehicles, equipment, supplies, and materials
totaling ₱129,067,459.84, particularly in the observance of proper timelines and
compliance with the procurement procedures, compromised the integrity of these
transactions, creating potential inefficiencies and additional costs to the
government.
We recommended that BAC strictly observe the prescribed bid validity period or, if
necessary, secure the bidder’s written concurrence for extension before bid validity
expires. We also recommended for them to ensure that the conduct of bidding,
specifically the Negotiated Procurement – Two Failed Biddings, is within the
prescribed period, otherwise, request an extension of 30 days upon approval of the Head
of Procuring Entity. Lastly, we recommended that BAC evaluate and address
bottlenecks that cause delays in the procurement process, including the posting of
NOAs and NTPs, to prevent the recurrence of procurement gaps.
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