8.6 The difference of 0.38 percent between the reported accomplishment and the verified
accomplishment, corresponding to an amount of ₱107,227.00, is shown below:
Difference
Wt% Amount
Agency’s Reported Accomplishment 0.395 ₱ 110,771.00
COA Verified Accomplishment 0.013 ₱ 3,544.00
Difference 0.382 ₱ 107,227.00
8.7 The premature certification of project completion and the subsequent full payment,
despite the noted deficiencies, resulted in the overpayment of ₱107,227.00. This
impairs the reliability of the completion reports submitted by the implementing office
and raises concerns about the effectiveness of project monitoring and validation prior
to payment. It also reflects lapses in internal control, particularly in the verification
and inspection processes, which may expose public funds to the risk of loss or
misuse.
8.8 We recommended and the Municipal Mayor and the Municipal Engineer agreed
to inform the contractor of the deficiencies noted and require them to either
complete the remaining work items or refund the amount corresponding to the
uninstalled components, totaling ₱107,227.00.
8.9 We further recommended and Management agreed to enhance its monitoring
and validation procedures by ensuring that all work items are physically verified
and accounted for prior to certifying project completion and processing the final
payment.
8.10 Management sent a letter dated April 28, 2025, addressed to the contractor,
requesting that they resolve the identified deficiencies and complete the remaining
items in accordance with the specifications outlined in the POW.
Toiletries and other supplies for the Dauin Mega Market (DMM) Hotel
9. Toiletries and other supplies for the Dauin Mega Market (DMM) Hotel, totaling
₱4,500.00, could not be fully accounted for because their utilization was not
documented with duly accomplished Requisition and Issue Slips while the Summary
of Supplies and Materials Issued was not prepared, inconsistent with the relevant
provisions of the NGAS Manual for LGUs, Volume I, thus, proper monitoring and
accounting of these toiletries and supplies could not be ensured.
9.1 Section 116 of the New Government Accounting System (NGAS) Manual for Local
Government Units (LGUs), Volume I, provides the requisition procedures for
supplies, while Section 121 details the reporting on the issuance of supplies/materials,
viz:
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