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                                                                                                                 STATUS OF
 REFERENCE               OBSERVATION                                 RECOMMENDATION                           IMPLEMENTATION /
                                                                                                            RESULTS OF VALIDATION
2021 AAR     Management failed to monitor and       22. The Municipal Accountant submit the                        Unimplemented
AO No. 2,    enforce liquidation of cash                subsidiary ledgers of each accountable
                                                                                                              The designated disbursing
page 29      advances        amounting         to       officer as of December 31, 2021, monitor
                                                                                                              officer had not yet settled
             ₱6,773,591.36, hence, remained             cash advances, and demand the immediate
                                                                                                              the unliquidated cash
             unliquidated as of December 31,            liquidation of all outstanding cash advances
                                                                                                              advances.
             2021, contrary to Section 89 of            by issuing demand letters direct to the
             Presidential Decree (P.D.) No. 1445        accountable officers concerned. Otherwise,
             and the pertinent provisions of COA        if no liquidation is made, impose the
             Circular No. 97-002 dated February         sanction of withholding the salaries of those
             10, 1997, thereby, possibly                who still fail to settle their accounts after due
             overstating    the     assets    and       notice.
             understating the related expense
                                                    23. The Municipal Mayor require all concerned                  Unimplemented
             accounts of the Municipality, while
                                                        accountable officers to immediately settle
             exposing government funds to
                                                        their cash advances and direct the Municipal
             possible          loss        and/or
                                                        Accountant to strictly enforce the liquidation
             misappropriation.
                                                        of cash advances within the prescribed
                                                        period and see to it that no additional cash
                                                        advances are granted unless previous ones
                                                        are settled or properly accounted for.
2021 AAR     The procurement of supplies and        24. Municipal Accountant to strictly observe                   Unimplemented
AO No. 4,    materials for the “Improvement of          compliance with the perpetual inventory
                                                                                                              The necessary adjusting
Page 34      Water       Systems”        totaling       method of accounting for construction
                                                                                                              entry had not yet been
             ₱355,259.00 was charged directly           supplies and materials procured for projects
                                                                                                              taken up in the books.
             to the Water Supply System (1-07-          implemented by the administration by
             03-040) account instead of                 recording all purchases under the
             recognizing the same under                 “Construction Materials Inventory.”
             Construction Materials Inventory
                                                    25. The Municipal Accountant coordinate with                   Unimplemented
             (1-04-04-130), contrary to Sections
                                                        the property custodian to implement controls
             50 and 52 of the New Government
                                                        on the receipt and utilization of the same,
             Accounting      System     (NGAS)
                                                        submit a summary of the utilized
             Manual, Volume I, precluding
                                                        construction materials to the Accounting
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