were deposited into the General Fund bank account of the Municipal Government,
rather than a separate bank account designated for this specific purpose.
10.5 Thus, the total cash balance in the bank account includes not only those for GF
Proper but also funds under the 20 percent DF, which is composed of its current
appropriations amounting to ₱77,937,148.56 and continuing appropriations
amounting to ₱183,583,707.73, or a total of ₱261,520,856.29, as reported in the
Status of Appropriations, Allotments, and Obligations (SAAOB) as of December
31, 2024.
10.6 However, our examination of the financial statements of the 20 percent DF showed
that the balance of the Cash in Bank – LCCA as of December 31, 2024, was
₱298,328,573.82. Hence, there is a substantial discrepancy of ₱36,807,717.53,
computed as follows:
Cash in Bank - LCCA 20% DF (per FS), Dec. 31, 2024 ₱ 298,328,573.82
Reported in SAAOB, Dec. 31, 2024
20 percent DF
Current 77,937,148.56
Continuing 183,583,707.73
Total balance of DF per SAAOB, Dec. 31, 2024 261,520,856.29
Discrepancy 36,807,717.53
10.7 Although the cash reported in the 20 percent DF financial statements is
significantly higher than the recorded cost of projects to be implemented, there is
a need to examine the huge difference to ensure that actual cash backup for the
implementation of developmental projects is properly monitored. Because of this
substantial discrepancy, the accuracy of the actual cash available for the
unimplemented developmental projects cannot be verified. Considering that there
is no separate bank account for the 20 percent DF, the cash requirements of the
aforementioned appropriated projects could not be completely ascertained,
knowing that the General Fund bank account also includes other funds with
chargeable claims.
10.8 In order to properly manage and monitor on a timely basis the status of utilization
of the 20 percent DF and ensure actual cash backup of its current and continuing
projects, programs, and activities (PPAs), it is advantageous to maintain a separate
bank account. Thus, this can also ensure that only funds pertaining to the 20
percent DF are recorded as cash for the special account, and, at the same time,
none of the funds under the General Fund Proper are used for PPAs under the 20
percent DF.
10.9 We recommended and the Municipal Accountant and the Municipal Budget
Officer agreed to reconcile their reports and determine the actual funds
available for ongoing and/or unimplemented projects under the 20 percent
DF. We further recommend that Management, upon the authorization of the
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