prepare the JEV only after receiving the Report of Check Issued (RCI) together
with the DVs and supporting documents. He shall then record JEV in the Check
Disbursements Journal.
4.5 As a result of the foregoing, the recorded unreleased checks of ₱1,314,220.44
understated the Cash in Bank and Liability accounts by the same amount.
4.6 We recommended and the Municipal Accountant agreed to prepare JEVs
for valid reconciling items that require adjustment and correction in the GL,
in accordance with COA Circular No. 96-011 dated October 2, 1996.
4.7 We further recommended and the Municipal Accountant agreed to 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.
Stale checks still recorded as reconciling items - ₱198,161.51
5. Stale checks amounting to ₱198,161.51 are still recorded as reconciling items in the
Bank Reconciliation Statements (BRS), which contradicts Section 59 of the New
Government Accounting System (NGAS) Manual for LGUs, Volume I, resulting in
an understatement of the Cash in Bank - Local Currency, Current Account balance
by the same amount.
5.1 Section 59 of the NGAS Manual for LGUs, Volume I, provides that checks may
be canceled when they become spoiled or stale. It is stale if it has been outstanding
for over six months from the date of issue or as prescribed by the depository bank.
At least one month before a check becomes stale, the Treasurer shall send a
written notice to the payee of the existence of the check.
5.2 Our verification of the Bank Reconciliation Statement (BRS) as of December 31,
2024, revealed that six checks, totaling ₱198,161.51, have remained outstanding
for more than 10 to 72 months since their issuance date. These checks remained
listed as reconciling items in the bank reconciliation statement as of year-end and
are presented below:
No. of
Fund Check Date Amount Months
Number Outstanding
1 General 74602849 01/01/2021 ₱ 5,279.06 48
2 General 80749396 12/20/2022 3,000.00 24
3 General 90118425 03/08/2024 169,238.94 10
4 Trust 309 12/29/2018 5,000.00 72
5 Trust 382 06/30/2020 10,779.25 54
6 Trust 80750219 09/30/2023 4,864.26 15
Total ₱ 198,161.51
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