We recommended that Management: (a) Enforce the terms and conditions of the contract,
particularly on full delivery requirements before payment, unless partial delivery is
explicitly authorized and clearly provided for and stipulated in the contract, including
delivery and payment schedules; (b) Impose liquidated damages, in accordance with the
contract and RA 9184, in all instances of delayed or incomplete delivery, unless a valid
reason supported by documentation is accepted and approved by the HOPE; and (c)
Develop and adopt standard guidelines on the handling of partial deliveries and payments
to ensure consistency, legal compliance, and alignment with government procurement
principles of transparency, efficiency, and accountability.
6. Drugs and medicines were accepted by the City even though the items delivered did not
conform to the specifications stipulated in the contract agreement, as listed in the Request
for Quotation (RFQ) submitted by the winning bidder, thereby compromising the integrity
of the procurement process of 40 items or 41 per cent of the goods delivered amounting to
₱1,830,982.88.
We recommended that Management enforce compliance with the terms and specifications
stated in the contract and the Request for Quotation (RFQ), such that items delivered exactly
match the descriptions, brand names, and specifications indicated therein, unless a formal
amendment of the contract is duly signed by both parties prior to delivery.
7. Due to the extensive requirements to secure a Department of Health License to Operate
(DOH-LTO) land ambulances, the five vehicles owned by the City were operating as a
Patient Transport Vehicle instead of ambulances as marked on its body, thus the assurance
that the ambulances operate with competent personnel and appropriate equipment to
respond to medical emergencies, provide quality care, and ensure patient safety may not be
fully attained.
We recommended that Management secure the DOH-LTO for the five vehicles marked with
“AMBULANCE” otherwise, register them as Patient Transport Vehicle (PTV) and change
the labels accordingly pursuant DOH AO No. 2018-001 dated January 28, 2018.
Summary of Total Suspensions, Disallowances, and Charges as of Year-end
The reported audit suspensions and disallowances of the City Government of Guihulngan as
of December 31, 2024, were as follows:
NS/ND/NC
NS/ND/NC
Ending Settled from Ending
Issued from
Balance 01/01/2024 to Balance
01/01/2024 to
(12/31/2023) 12/31/2024 (As of 12/31/24)
12/31/2024
Notice of Suspension ₱ 3,437,511.00 ₱ 0.00 ₱ 0.00 ₱ 3,437,511.00
Notice of Disallowance ₱ 3,342,730.63 ₱ 0.00 ₱ 1,724,203.82 1,618,526.81
Total ₱ 6,780,241.63 ₱ 0.00 ₱1,724,203.82 ₱ 5,056,037.81
iv
