a significant concern, as proper documentation is crucial for ensuring
accountability and transparency.
4.6 Moreover, the non-submission of liquidation reports by NGOs/POs stems from
the source agency’s lack of monitoring. Without proper follow-up and
enforcement, NGOs may delay or neglect their reporting duties, creating
accountability gaps.
4.7 COA Circular No. 2007-001 explicitly states that funds granted to NGOs/POs
remain public funds. This means that effective monitoring is crucial to ensure
these funds are used properly and efficiently. The current condition raises
concerns about financial management and the potential misuse of public funds,
which can negatively impact the reliability of the year-end financial statement
account balances.
4.8 Management concurred to gather all available data and documents, beginning
with the Sectoral Desk Office, CSWDO, CAO, and the City Treasurer’s Office
(CTO). Additionally, the CAO confirmed its commitment to reclassify
unidentified entries and non-interest-bearing notes to the Other Receivables
account. The CAO also agreed to review potential impairment on the Due to
NGOs/POs account.
4.9 We recommended and Management agreed that the concerned personnel at
the CAO, in coordination with the Sectoral Desk Office and City Social
Welfare and Development Office (CSWDO):
a. Conduct a thorough review of outstanding balances and consider factors
such as the age of receivables and any specific circumstances that affect
collectability. If necessary, establish impairment allowances to reflect the
real recoverable value of this account;
b. Investigate and conduct a full review of the balances under Due from
NGOs/POs account, including a thorough examination of Memorandum
of Agreements to determine the validity and status of each grant, and take
appropriate legal action against defaulting NGOs/POs in accordance
with COA Circular No. 2007-001 dated October 25, 2007;
c. Upon assessing the condition and status of each grant, establish a
comprehensive monitoring schedule to track progress and facilitate
actions for resolutions of the same;
d. Reclassify the unidentified entries and non-interest-bearing notes,
amounting ₱8,571,088.34 and ₱2,075,190.60, respectively, currently
recorded under Due from NGOs/POs to Other Receivables account; and
e. Consider implementing the one-time cleansing of all dormant accounts
under COA Circular No. 2023-008 dated August 17, 2023.
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