STATUS OF
IMPLEMENTATION/
REFERENCE OBSERVATION RECOMMENDATION
RESULTS OF
VALIDATION
2017 AAR The Municipality did not comply with the 37. That Management strictly observe and Unimplemented
AO No. 3, rules and regulations regarding the grant, implement the regulations on the grant,
Page 33 utilization, and liquidation of cash utilization, and liquidation of cash
advances under COA Circular No. 97-002 advances pursuant to COA Circular No.
dated February 10, 1997, resulting in the 97-002 dated February 10, 1997.
accumulation of unliquidated cash 38. Management demand from concerned
advances totaling ₱153,256.21 as at Unimplemented
officials and employees the immediate
year-end, ₱123,174.21 of which have been settlement of their cash advances.
outstanding for more than two months,
possibly misstating the asset and equity
accounts.
2017 AAR The establishment and maintenance of the 39. The Municipal Accountant see to it that: Unimplemented
AO No. 4, Petty Cash Fund (PCF) were not in (a) the grant of the initial cash advance for
Page 35 accordance with the pertinent sections of the PCF is supported with authority by the
the Manual on the New Government Local Chief Executive and an estimate of
Accounting System (NGAS) for Local expenses; (b) replenishment of the cash
Government Units (LGUs), Volume I and advance is made only when the
COA Circular No. 97-002 dated February disbursements reach at least 75%, or as the
10, 1997, thus, using the Fund for regular need requires, by submitting a
and recurring expenses. replenishment voucher supported by
PCVs and other documents duly
summarized in a report of disbursements;
and (c) the PCF is not used for regular
expenses, such as rentals, subscriptions,
utilities and the like.
2015 AAR The Municipality paid honoraria 40. Management stop the payment of Unimplemented
AO No. 6, amounting to ₱13,000.00 to BIR honoraria to personnel not authorized Persons liable were no
Page 41 employees assigned thereat, contrary to the under the Compensation Policy longer connected with
provisions of Compensation Policy Guidelines No. 98-1 dated March 23, the Municipality.
Guidelines No. 98-1, resulting in irregular 1998.
expenditures.
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