A. DETAILED OBSERVATIONS AND RECOMMENDATIONS
FINANCIAL AUDIT
Non-submission of year-end Financial Statements (FS)
Monthly trial balances, quarterly, and year-end FS were not submitted by the City
Accountant within the prescribed timelines, contrary to the provisions of Section 70 of
NGAS for LGUs, Item 4 of COA Circular No. 2010-001, and Paragraph 7 of COA
Circular No. 2009-006, thus, restricting stakeholders’ access to accurate financial
information necessary for informed decision-making and raising concerns about
transparency and accountability in the City’s financial management practices.
6. Section 347 of Republic Act (R.A.) No. 7160 mandates that local treasurers, accountants
and other accountable officers shall render their accounts within the time, form, style, and
content prescribed by COA regulations. Moreover, Section 474 provides that the
accountant shall take charge of both the accounting and internal audit services of the local
government unit concerned and shall:
(1) Install and maintain an internal audit system in the local government unit concerned;
(2) Prepare and submit financial statements to the governor or mayor, as the case may
be, and to the sanggunian concerned;
(3) Apprise the sanggunian and other local government officials on the financial
condition and operations of the local government unit concerned;
(4) Certify to the availability of budgetary allotment to which expenditures and
obligations may be properly charged;
(5) Review supporting documents before preparation of vouchers to determine
completeness of requirements;
(6) Prepare statements of cash advances, liquidation, salaries, allowances,
reimbursements and remittances pertaining to the local government unit;
(7) Prepare statements of journal vouchers and liquidation of the same and other
adjustments related thereto;
(8) Post individual disbursements to the subsidiary ledger and index cards;
(9) Maintain individual ledgers for officials and employees of the local government
unit pertaining to payrolls and deductions;
2
