Summary of Significant Audit Observations and Recommendations
In addition to the above-noted deficiency, the following are the significant audit observations
and recommendations noted in the course of the audit:
1. The City was not able to recouped advance payments made to contractors amounting to
₱5,072,122.24 for completed and terminated projects, thus resulting to possible loss of
government funds.
We recommended that Management efficiently and effectively monitor the recoupment of
advances made to contractors, ensuring that these are repaid accordingly and likewise
initiate the procedures on the forfeiture of performance bond posted by the defaulting
contractors in case of non-completion, delay or termination of contracts.
2. Several projects under the 20 per cent development fund with total appropriations of
₱69,256,081.62 were considered to be not well-planned and not procurement-and-
implementation ready affecting the optimal utilization of the said funds which could have
contributed to the attainment of desirable socio-economic targets and outcomes of the City.
We recommended that Management, through the City Engineering Office and City Planning
and Development Office, and other concerned offices such as the end-users, to formulate
collectively a comprehensive and realistic plan to expedite the procurement and
implementation of all identified priority development projects under the 20 per cent DF.
3. Nine permanent employees of the Local Disaster Risk Reduction Management Office
(LDRRMO) were included in the Group Life Insurance for community disaster volunteers,
thus reducing the funds available for disaster risk management, relief, rehabilitation, and
recovery programs.
We recommended that the LDRRMO adhere strictly to the provisions outlined in National
Disaster Risk Reduction Management Council-Memorandum Circular NO. 64, s. 2021 on
the protection of accredited community Disaster Volunteers (ACDVs) so that the LDRRMF
would only be used for its intended purpose.
4. The Waterworks System’s operation incurred losses over the three-year period ending
December 31, 2024 amounting to ₱1,024,411.69, ₱536,465.56 and ₱3,245,152.41,
respectively.
We recommended that Management conduct a comprehensive operational review of the
Operation of the Waterworks System to become self-reliant and avoid losses so that it can
contribute to sustainable development and community empowerment.
5. Payment of ₱5,964,085.88 corresponding to 83.88 per cent of the contract for the purchase
of drugs and medicines for City Health Unit (CHU) I was made even without the
certification by the Head of Procuring Entity that the goods have been delivered in
accordance with the terms of the contract, thus undermining good governance in the
procurement process
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