balance. While a 1.27 per cent and 5.05 per cent drop was observed in
2021 and 2022, respectively—attributable to credit transactions related to
housing projects—only a 0.58 per cent to 0.39 per cent downward trend
was noted from 2023 to 2024. This highlights the continued slow pace of
liquidation and weak monitoring, especially considering the long-standing
age of these transfers. With fund transfers ranging from six (6) to 30 years
old, the likelihood of settlement appears remote.
4.4.4. Additionally, financial records revealed no impairment allowances were
established for this account, which could signal an oversight in addressing
the potential risk of non-recovery of these receivables.
b. Inadequate monitoring, missing documents, and non-submission of liquidation
reports
4.4.5. Further analysis of the Due from NGOs/POs account showed the
following components (Appendix 3):
Percentage to
Particulars Amount Due from
NGOs/PO balance
Housing Project ₱ 33,139,755.43 71.27%
Unidentified Entries 8,571,088.34 18.43%
NGOs/POs 2,711,747.41 5.83%
Non-Interest Bearing Notes 2,075,190.60 4.47%
Total ₱ 46,497,781.78 100%
4.4.6. As gleaned from the table above, a significant portion of the account,
equivalent to 71.27 per cent or ₱33,139,755.43, is attributed to housing
projects in various barangays. Moreover, we noted that 18.43 per cent
(₱8,571,088.34) consists of unidentified entries recorded in the account.
Notably, only 5.83 per cent (₱2,711,747.41) represents actual fund
transfers to NGOs/POs for project implementation, while 4.47 per cent
(₱2,075,190.60) pertains to non-interest-bearing notes.
4.4.7. Evidently, inadequate monitoring has contributed to confusion and
missing records regarding these fund transfers. For example, during our
evaluation of the transactions, we noted that payments totaling
₱3,604,259.04 were made for the housing project. However, the CAO was
unable to close the specific fund due to insufficient supporting
documentation. As a result, the fund transfer cannot be marked as
completed or removed from the books, resulting in the subsidiary ledger
reflecting the following debit and credit transactions:
Particulars Debit Credit Balance
Housing Project ₱ 36,744,014.47 ₱ 3,604,259.04 ₱ 33,139,755.43
(See Appendix 3)
4.5 During the interview with the CAO, it became apparent that documents related to
the fund transfers and associated projects and programs were missing. This raises
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