9.5 Further inquiries with CGSO personnel revealed that they are awaiting the
necessary documentation from the City Legal Office and/or City Assessor’s
Office to properly assess the value of the aforementioned properties and update
the corresponding property cards for accurate record keeping.
9.6 This deficiency was previously noted in the CY 2018 AAR, yet Management has
not fully addressed the concern. As indicated in the prior audit findings, only five
(5) out of nine (9) parcels of land have been recorded in the books.
9.7 Accordingly, the non-recording of the donated properties as of CY 2024 has
resulted in the understatement of both the assets and equity accounts of the City,
significantly affecting the Land account in the financial statements as of
December 31, 2024.
9.8 The non-recording of properties in the City's books of accounts was attributed to
two primary factors: (1) incorrect and inadequate documentation and filing
practices inherited from previous administrations, and (2) difficulties in collecting
taxes from the donors of the properties.
9.9 This situation hindered the issuance of new Tax Declarations. However, the City
Legal Officer noted that, despite the absence of new Tax Declarations, the land
titles—once transferred and registered under the name of the City—can serve as
a valid basis for recording the properties in the City's books of accounts.
9.10 Moreover, the City Accountant committed to reviewing the available documents
to determine the feasibility of recording the donated lots in the City's books of
accounts.
9.11 We recommended and Management agreed to enhance the coordination and
communication between the City Legal Office (CLO), City Assessor’s Office,
City General Services Office (CGSO) and CAO to expedite property
valuation and documentation process by establishing a tracking system or
timeline for property documentation. A focal person from each office could
be designated to oversee the timely submission and follow-up on any missing
documents.
OTHER FINANCIAL RELATED ISSUES
Unutilized Local Disaster Risk Reduction and Management Fund (LDRRMF) totaling
₱12,052,699.82
10. The LDRRMF has ₱12,052,699.82 in continuing appropriations for capital outlay
that remained unutilized as of year-end due to inadequate monitoring of the
implementation of 26 projects, which deviated from Items 5.1.5 and 5.1.11 of COA
Circular No. 2012-002 dated September 12, 2012, thereby posing risks that the
City may not be adequately prepared for the adverse impacts of disasters and
calamities.
10.1 Section 1, Rule 18 of the Implementing Rules and Regulations (IRR) of the
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