d. Coordinate with the concerned offices to expedite the retrieval of supporting documents
and perform the necessary analyses to validate and clear long-standing reconciling items.
b. The accounts Cash Local Treasury, Advances for Operating Expenses and Advances
for Payroll accounts showed unreconciled difference of ₱(1,202,851.92),
₱(167,591.72), and ₱(907,644.16), respectively, against the cashbook balances, thus
the reliability of the cashbook and General Ledger (GL) balances could not be relied
upon.
We recommended and the Municipal Treasurer and Municipal Accountant agreed to trace
the differences between the cashbook and the General Ledgers of the Cash Local Treasury,
Advances for Operating Expenses, and Advances for Payroll accounts. We further
recommended that, henceforth, Management require the Municipal Treasurer and
Municipal Accountant to properly conduct the quarterly reconciliation between the
treasury records and accounting records in compliance with Section 143 (A.7) of the
LTOM.
c. The Municipality did not implement the procedures on the proper disposition and
cleansing of dormant accounts totaling ₱2,108,562.90, resulting in the continued
recognition of unsupported balances in the financial records and impairing the fair
and faithful presentation of the Municipality’s financial statements.
We recommended that the Local Chief Executive direct the Municipal Accountant to:
a. Review and analyze all dormant accounts to determine their validity and secure/gather
all available documents related to these accounts;
b. If a complete review and analysis cannot be performed due to missing documents and
records, he shall then prepare a list of available records pertaining to the dormant account,
indicate the extent of validation conducted, and attach all documents to the list. A detailed
list of all lost documents or records must be included; and
c. Prepare and submit a detailed report to the Head of Agency recommending an
investigation to determine the cause/s of the missing documents and identify the official/s
and employee/s responsible for the loss.
We further recommended that if the investigation results warrant a request for authority to
write-off from the Commission, the Head of the Accounting Unit, through the HoA, should
file with or through the ATL and/or SA, depending on the jurisdictional amount, a request
for the approval of COA to write-off or derecognize the dormant accounts from the books.
The request shall be supported by the documents listed in Annex 8 of the Circular.
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