Livelihood Program, the details of which are still to be provided. However, the
Municipal Accountant mentioned that it is challenging or nearly impossible to
determine the names for which the payment is to be credited.
10.11 The Municipality’s inability to initiate the procedures outlined under COA
Circular No. 2023-008 for the proper disposition of dormant accounts has resulted
in the continued recognition of long-inactive and unsupported receivables totaling
₱860,048.41 in its financial records. This inaction not only compromises the fair
and faithful presentation of its financial statements but also impairs transparency
and accountability in the management of public funds. Without the necessary
validation, documentation, and COA approval for derecognition, these dormant
accounts distort the true financial position of the Municipality and hinder efforts
to maintain sound fiscal administration.
10.12 We recommended and the Local Chief Executive agreed to direct the
Municipal Accountant to:
a. Review and analyze all dormant accounts to determine their validity
and secure/gather all available documents related to these accounts;
b. If a complete review and analysis cannot be performed due to missing
documents and records, she shall then prepare a list of available
records pertaining to the dormant account, indicate the extent of
validation conducted, and attach all documents to the list. A detailed
list of all lost documents or records must be included; and
c. Prepare and submit a detailed report to the Head of Agency
recommending an investigation to determine the cause/s of the missing
documents and identify the official/s and employee/s responsible for the
loss.
10.13 We further recommended and it was agreed that if the investigation results
warrant request for authority to write-off from the Commission, the Head
of the Accounting Unit, through the HoA, should file with or through the
ATL and/or SA, depending on the jurisdictional amount, a request for the
approval of COA to write-off or derecognize the dormant accounts from the
books. The request shall be supported by the documents listed in Annex 8 of
the Circular.
Accrued interest expense and interest payable not recognized at year-end - ₱119,443.29
11. Interest Payable and Interest Expense totaling ₱119,443.29, which accrued on the
Municipality’s domestic loan were not recognized at year-end, contrary to Section
4.a, Chapter 2 of the New Government Accounting System (NGAS) Manual for
Local Government Units (LGUs), Volume I, thereby affecting the accurate
presentation of the accounts in the financial statements.
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