prevailing cost to sell these biological assets.
3. The Municipal Accountant did not prepare Journal Entry Vouchers
(JEV) for book reconciling items in the Bank Reconciliation Statements
(BRS) totaling ₱1,792,371.24, resulting in an understatement of both the
Cash in Bank and Liability accounts by the same amount.
We recommended that the Municipal Accountant prepare JEVs for valid
reconciling items that require adjustment and correction in the GL.
We further recommended that the Municipal Accountant follow the check
disbursement process prescribed in Section 44 of the NGAS Manual for
LGUs, Volume I, to ensure that the JEVs are prepared and recorded based on
the RCI together with the DVs and supporting documents received from the
Municipal Treasurer’s Office.
These and all other audit observations and recommendations are discussed in
detail in Part II of this Report.
Summary of Total Suspensions, Disallowances, and Charges as of Year-End
The reported audit suspensions, disallowances, and charges of the LGU as of
December 31, 2024, were as follows:
Beginning This Period Ending
Balance January 1 to December Balance
31, 2024
(As of (As of
1/1/2024) NS/ND/NC NSSDC 12/31/24)
Notice of Suspension ₱ 0.00 ₱ 0.00 ₱ 0. ₱ 0.00
00
Notice of Disallowance 1,778,200.00 0.00 0.00 1,778,200.00
Notice of Charge 0.00 0.00 0.00 0.00
Status of Implementation of Prior Years’ Recommendations
Of the 76 audit recommendations contained in the CY 2023 and prior years’ Annual
Audit Reports, six were implemented and 70 were unimplemented. Of the six
implemented recommendations, two were closed due to changes in condition.
Meanwhile, of the 70 unimplemented recommendations, three were reiterated and
included in audit observation numbers 1 and 12, while five were restated in audit
observation numbers 1 and 10 in Part II of this report, in view of the similarity of the
issues involved. Moreover, Management commented that they will have difficulty in
implementing four recommendations due to a lack of storage for inventories
purchased and a lack of personnel assigned to handle and distribute inventories.
iv
