Account CY 2024 CY 2023 Increase/(Decrease)
Balance per Books ₱ 1,292,249.00 ₱ 684,845.04 ₱ 607,403.96
Balance per Cashbook 258,739.86 193,188.36 65,551.50
Difference ̈́₱ 1,033,509.14 ̈́₱ 491,656.68 ₱ 672,955.46
3.4. Inquiries with the Municipal Treasurer and Municipal Accountant disclosed that
regular reconciliation between the general ledger and the cashbook has not been
consistently performed. However, the Municipal Accountant stated that she informs
the Municipal Treasurer whenever discrepancies are noted, so these may be
addressed promptly. She also assured the audit team that she would trace the causes
of the increased unreconciled balance, particularly since it pertains to CY 2024
transactions.
3.5. The continued existence of the unreconciled balance amounting to ₱1,033,509.14
materially affects the fair presentation of the cash balance in the financial
statements.
3.6. This observation was communicated to Management through Audit Observation
Memorandum No. 2025-05(2024)-Manjuyod dated May 2, 2025.
3.7. We recommended and Management agreed that the Municipal Accountant
and the Municipal Treasurer immediately investigate and account for the
difference, and reconcile their records to reflect the accurate cash balance as of
year-end.
3.8. We further recommended and Management agreed that going forward,
monthly reconciliations be strictly implemented to detect and correct any
discrepancies in a timely manner, thereby ensuring the accuracy and reliability
of financial reporting.
Property, Plant, and Equipment Under the Trust Fund
4. Property, Plant, and Equipment (PPE) under the Trust Fund totaling ₱3,521,153.86
were neither transferred to the General Fund nor provided with depreciation
allowances, contrary to Sections 97 and 104.1.i of the Manual on the NGAS for
LGUs Volume I, Paragraph 71 of IPSAS 17, and COA Circular No. 2015-008 dated
November 23, 2015, thus adversely affecting the fairness of presentation of the
financial statements.
4.1. Section 97 of the Manual on the New Government Accounting Systems for Local
Government Units (LGUs), Volume I, provides that:
“Project Expenditures. – The construction period theory shall apply for
expenditures on infrastructure projects of the Trust Fund. For other
projects, expenditures shall be debited to the appropriate expenditure
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