6.16. In an undated letter, the Municipal Mayor explained that their travel to Baguio was
undertaken to ensure the effective planning and implementation of GAD programs,
in a venue conducive to strategic planning and free from usual workplace distractions.
However, she acknowledged the importance of adhering to COA and DILG
guidelines, particularly DILG MC No. 2011-55 and COA Circular 2012-003, which
emphasize the prudent use of government funds. However, moving forward,
Management assured the Audit Team that the Municipal Government will:
6.16.1. Refrain from conducting training, meetings, seminars, workshops, or similar
activities outside the geographical island;
6.16.2. Prioritize the conduct of similar future activities within the territorial
jurisdiction to minimize government expenses; and
6.16.3. Strictly adhere to the principle of prudent and economical use of public funds
as prescribed by relevant rules and regulations; and
6.16.4. Address the said concern and adopt corrective actions to avoid recurrence of
the same audit observations.
Payment of Registration Fees
7. Registration fees paid to the Philippine Councilor’s League (PCL) totaling
₱156,000.00 for the attendance of the Sangguniang Bayan (SB) members to the 1 st
Quarter Provincial Assembly were issued with personalized non-VAT Official
Receipts (OR) registered with the Bureau of Internal Revenue (BIR), contrary to
Section 4(6) of Presidential Decree (PD) No. 1445, which may result to unaccounted
collection and possible loss of government funds.
7.1. Among the fundamental principles of government financial transactions and
operations pertain to claims against government funds, which should be supported
with complete documentation, pursuant to Section 4(6) of PD No. 1445.
7.2. The Department of Justice, in its Opinion No. 41, series of 1995, dated May 5, 1995,
ruled that all leagues organized by elective officials are considered as government
institutions/organizations, referring to the query of one of the organized leagues and
federations of local elective officials particularly on the issue of rates of
seminar/registration fees to be collected. Relative thereto, COA issued Resolution
No. 2011-014 dated December 13, 2011, declaring all local government leagues as
government organizations.
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