7.3. Further, Section 505, Article V of Republic Act (RA) No. 7160 clearly states the
funding for all leagues, viz:
“(a) All leagues shall derive its funds from contributions of local
government units from fund-raising projects and activities without
the necessity of securing permits x x x
(b) All funds of leagues shall be deposited as trust funds with its treasurer
and shall be disbursed in accordance with the board of director’s
resolutions, subject to pertinent accounting and auditing rules and
regulations. x x x” [Underscoring supplied]
7.4. The PCL is one of the organized leagues of elective officials allowed under RA No.
7160. Most of its funding sources are derived from the payment of membership fees
of its members and registration fees by its members for various trainings, seminars,
or activities conducted by the league.
7.5. Post-audit of the disbursement vouchers of the Municipality for CY 2024 revealed
that eight members of the Sangguniang Bayan were each granted a cash advance
amounting to ₱39,113.00, or a total of ₱312,904.00, to attend the 1st Quarter
Provincial Assembly on February 21-23, 2024, at the Hennan Regency Resort and
Spa, Boracay Island, Malay, Aklan.
7.6. However, verification of the corresponding Liquidation Reports disclosed that the
payment of ₱19,500.00 registration fee per participant was not supported by
Government Official Receipts or Accountable Form (AF) No. 51. Instead, the PCL
Negros Oriental Chapter issued personalized, non-VAT ORs to the payees.
7.7. It is emphasized that the PCL-Negros Oriental Chapter is a duly recognized
government organization. Therefore, it should have issued AF No. 51 to properly
account for all its collections. The Municipality that paid the fees to the PCL, on the
other hand, should have demanded that the PCL-Negros Oriental Chapter provide the
appropriate form to support their disbursements to the said organization.
7.8. Due to the foregoing, financial accountability for collections made by the PCL-
Negros Oriental Chapter and payments made by the Municipality could not be
accounted for as government funds, which may result in the possible loss thereof.
7.9. We recommended that Management ensure that future payments to the PCL
are properly supported with a government official receipt AF No. 51 because
they are considered a government organization subject to compliance with
existing rules and regulations.
7.10. During the exit conference, Management acknowledged the deficiency and assured
the Audit Team that they would address the concern by drafting a communication to
the PCL-Negros Oriental moving forward.
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