5.12. We further recommended and the Municipal Accountant agreed to disclose the
composition of the Biological Assets account in the Notes to Financial Statements
in accordance with IPSAS 27 to provide relevant information that may affect
the fairness of the presentation of the financial statements.
B. OTHER FINANCIAL-RELATED ISSUES
Seminars Outside the Territorial Jurisdiction
6. Management conducted a planning workshop for the preparation of its CY 2025 GAD
Plan and other GAD-related activities in Baguio City, spending a total amount of
₱758,007.52 for travel, airfare, and hotel function expenses, in contravention of DILG
MC No. 2011-59 and COA Circular No. 2012-003, thus incurring significant expenses
that could have been reduced had the workshop been conducted within its territorial
jurisdiction, indicating extravagant expenditures.
6.1. On April 25, 2011, the Department of the Interior and Local Government (DILG)
issued DILG MC No. 2011-59 to address local government-organized or funded
training, seminars, workshops, or similar activities outside their official stations or
territorial jurisdictions, utilizing public funds. The DILG perceives this practice as
detrimental to the financial capacity of local governments to support essential
development endeavors, thereby constraining their ability to fulfill the constitutional
mandate of ensuring an enhanced quality of life for all constituents.
6.2. Consequently, the DILG has mandated Local Chief Executives and Presiding
Officers of Sanggunians to strongly discourage the organization of the aforesaid
training, seminar, workshop, or similar activity outside of the geographical
island of the respective local government units. The Department emphasizes the
importance of officials taking full cognizance of their primary responsibility and
accountability regarding the prudent use of scarce financial resources and strict
adherence to existing budgeting, accounting, and auditing rules and regulations.
6.3. Anent thereto, COA Circular No. 2012-003 dated October 29, 2012, provides the
updated guidelines for the prevention and disallowance of irregular, unnecessary,
excessive, extravagant, and unconscionable expenditures. It defines extravagant
expenditures as those incurred without restraint, judiciousness, and economy. Thus,
these expenditures exceed the bounds of propriety and are immoderate, prodigal,
lavish, luxurious, grossly excessive, and injudicious.
6.4. Annex E of the said Circular enumerates the cases that are considered extravagant
expenditures of the government. Among the cases specified, Item 3 thereof is the
conduct of out-of-town meetings, which can be held within the office premises.
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