Fund Date of Deposit Amount
General Fund January 3, 2025 ₱ 300.00
January 7, 2025 148,503.00
January 7, 2025 16,500.00
January 7, 2025 888.88
Total ₱ 339,550.19
7.3. The Audit Team is concerned that the failure of the Municipal Treasurer to deposit
intact his collections on December 27, 2024, not only violates financial regulations
but also increases the risk of fund mismanagement, loss, or unauthorized use.
7.4. It may be mentioned that the Municipal Mayor, being the father of the Municipality,
is neither exempt from liability, as provided under Section 102 of P.D. No. 1445
quoted hereunder:
“Section 102. Primary and secondary responsibility.
1. The head of any agency of the government is immediately and
primarily responsible for all government funds and property
pertaining to his agency.
2. Persons entrusted with the possession or custody of the funds or
property under the agency head shall be immediately responsible
to him, without prejudice to the liability of either party to the
government.”
7.5. This observation was communicated to Management through Audit Observation
Memorandum (AOM) No. 2025-06(2024)-Bindoy dated February 14, 2025.
7.6. We recommended that the Municipal Mayor direct the Municipal Treasurer to
strictly comply with Section 69 of Presidential Decree (P.D.) No. 1445 by
ensuring that all collections are deposited intact with the authorized depository
bank at the end of each day or within the prescribed period.
7.7. Additionally, internal controls should be strengthened by implementing
regular monitoring, surprise cash inspections to prevent fund
misappropriation and mitigate the risk of loss, and to consider appropriate
disciplinary actions for any repeated violations.
7.8. During the exit conference, the Municipal Treasurer explained that the collections
were not deposited intact due to the absence of the accountable officer who is
responsible for depositing the collections. Nevertheless, he assured the Audit Team
that collections will be deposited intact and regularly.
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