Annex A
Status of
Ref. Observation Recommendation Implementation/Results
of Validation
AAR Disclosures in the 4. The Municipal Unimplemented
2023, Notes to Financial Accountant revise
AO no. Statements on the the Notes to the The Municipal
2, page “Loans Payable – Financial Statements Accountant has not
27 Domestic” account to include the submitted any financial
balance of principal amount, statements.
₱227,575,364.56 are interest rate, maturity
incomplete, a date, amount for each
departure from the purpose, and interest
fair presentation expense of the Loans
requirement under Payable – Domestic
the International account, to properly
Public Sector inform the users of
Accounting the financial
Standards (IPSAS), statements, the
thus affecting the financial
usefulness of the performance of the
financial information Municipal
on loans to its users, Government,
especially its particularly in
constituents. financial
management
AAR The liquidating and 5. The Municipal Implemented
2023, disbursing officers Treasurer ensure that
AO no. had custody of the cash Bonds of AOs now cover
3, page collections and cash accountabilities of their respective
28 advances that AOs are in accountabilities.
exceeded the accordance with their
and maximum existing bonds,
accountability pursuant to Treasury
AAR covered by their Circular No. 02-
2022, bonds. This goes 2019.
AO no. against Section 305 6. Management review Implemented
4, page (f) of Republic Act and evaluate the
31 (RA) No. 7160 and maximum Management had already
Treasury Circular accountabilities of reviewed the maximum
No. 02-2019, thus AOs and apply for an accountabilities of AOs
increasing the increase in the and applied for the
likelihood that the amount of bond, appropriate bonds.
government may not when necessary, in
