1. Repairs and Maintenance – Land Improvements. This account is used to
record the cost of repairs and maintenance on Aquaculture structures and
other land improvements constructed/ acquired/ developed for public use.
2. Environment/Sanitary Services. This account is used to record the cost of
services contracted/undertaken by administration for the upkeep and
sanitation of the public places. This includes the cost of clean and green
program, garbage and hospital waste collection and disposal.
6.3 Our verification of the Disbursement Vouchers (DVs) revealed that in CY 2024,
the Municipality paid the LGU of Bayawan City a total of ₱170,215.00 as a
tipping fee. A review of the Memorandum of Agreement between the
Municipality of San Jose and the City of Bayawan showed that this payment is a
requirement for the disposal of the Municipality’s solid waste at Bayawan City’s
Sanitary Landfill. Therefore, the tipping fee should be recorded under the
“Environment/Sanitary Services” account as it pertains to the cost of garbage
disposal.
6.4 However, our review of the Journal Entry Vouchers (JEVs) revealed that the
payment of tipping fees for garbage disposal was incorrectly recorded under
“Repair and Maintenance - Land Improvements” account instead of the
“Environment/Sanitary Services” account, as shown in the table below:
Date JEV # Particulars Appropriate Account Amount
02/06/24 100-24- Tipping Fee for garbage Environment/Sanitary ₱ 13,205.00
02-05 disposal for January 24, 26 Services
and 31, 2024
03/01/22 100-24- Tipping Fee for garbage Environment/Sanitary 16,985.00
03-09 disposal for February 2, 7, 21 Services
and 28, 2024
Tipping Fee for garbage Environment/Sanitary 140,025.00
disposal for the Month of June Services
2024
Total Donations ₱170,215.00
6.5 Our interview with the Municipal Accountant revealed that he recorded the
payment of the tipping fee for garbage disposal under "Repair and Maintenance"
because it was funded by the 20% Development Fund allocated for the
Rehabilitation of the Residual Containment Area.
6.6 The above misclassification of expenses contradicts COA Circular No. 2015-009,
dated December 1, 20151. As a result, the “Environment/Sanitary Services”
account was understated, while the “Repairs and Maintenance – Land
Improvement” account was overstated by the same amount.
6.7 We recommended and the Municipal Accountant agreed to use the
appropriate account prescribed in COA Circular No. 2015-009, dated
December 1, 2015, for garbage collection and disposal.
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