3.5 We recommended and the Municipal Accountant agreed to ensure that the
unexpended balance of the LDRRMF—QRF and MOOE of the MF is
properly recorded in the Trust Fund books at year-end to reflect accurate
financial reporting pursuant to COA Circular 2012-02 dated September 12,
2012.
3.6 We further recommended and the Municipal Accountant agreed to conduct
training sessions for accounting personnel to emphasize the importance of
timely and accurate journal entries related to LDRRMF transfers and
compliance with regulatory guidelines.
Non-recording of book reconciling items-
4. The Cash in Bank balances showed a discrepancy of ₱(3,068,540.08), net of
outstanding checks, compared to the confirmed balances from the depository bank,
which remained unadjusted because book reconciling items in the Bank
Reconciliation Statements (BRS) were not recorded during the year, inconsistent
with Sections 3.2 and 3.3 of COA Circular No. 96-011 dated October 2, 1996, thus
presenting an inaccurate and unreliable balance in the financial statements.
4.1 Sections 3.2 and 3.3 of COA Circular No. 96-011 dated October 2, 1996, state that
the Local Accountant shall reconcile the Bank Statements (BS) with the General
Ledgers (GL) within ten days of their receipt and prepare the BRS. He is also
required to issue journal vouchers to record all valid reconciling items that
necessitate adjustments and corrections in the GL.
4.2 Our audit of the Municipality’s cash and cash equivalents account as of December
31, 2024, uncovered several discrepancies between the Cash in Bank account book
and the bank balances. Confirmations received from the Municipality’s
Authorized Government Depository Banks (AGDBs) indicated a total discrepancy
of ₱(7,448,051.04), as detailed in the table below:
Balance Per
Bank Balance Per
Account No. Bank Difference
Name Books
Confirmation
General Fund (GF)
LBP 0292-1037-60 ₱ 217,813,224.46 ₱ 223,761,219.35 ₱ (5,947,994.89)
DBP 7400-12624-030 991,775.57 991,775.57 0.00
LBP 0292-1107-40 2,001,849.66 3,179,822.50 (1,177,972.84)
LBP 0292-1107-66 13,830,290.29 13,736,483.44 93,806.85
LBP 0292-1107-58 1,465,895.26 1,038,645.09 427,250.17
DBP 0740-012626-160 6,043,313.50 6,043,313.50 0.00
LBP 0292-1135-95 73,846,495.01 73,971,626.88 (125,131.87)
Trust Fund (TF)
DBP 000014557404 29,571,656.87 31,081,819.51 (1,510,162.64)
DBP 000003987408 3,163,088.91 1,897,861.63 1,265,227.28
LBP 0292-1095-20 306,132.44 303,403.71 2,728.73
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