Balances as of 12/31/24
PER
NET
PER GENERAL
PARTICULARS DIFFERENCE
CASHBOOK /SUBDIARY
(A)-(B)
(A) LEDGER
(B)
Cash Local Treasury
General Fund ₱1,518,372.66 ₱2,670,177.68 ₱(1,151,805.02)
Special Education Fund 354,590.75 365,256.35 (10,665.60)
Trust Fund 886,745.57 927,126.87 (40,381.30)
Total ₱2,759,708.98 ₱3,962,560.90 ₱(1,202,851.92)
Advances for Operating Expenses
General Fund ₱ 187,580.00 ₱ 355,171.72 ₱ (167,591.72)
Advances for Payroll
General Fund ₱ 0.00 ₱ 907,644.16 ₱ (907,644.16)
5.3 This is a reiteration of the previous year’s audit observation on the Cash Local
Treasury account, which noted a difference of ₱(2,973,348.49). An interview with
the Municipal Accountant and the Municipal Treasurer disclosed that an attempt
was made to reconcile the Cashbook and General Ledger balances during the first
semester of CY 2024. However, it was not pursued because the focal persons were
unable to allocate sufficient time for it due to their numerous work responsibilities.
5.4 We want to highlight the significance of effective internal controls and meticulous
accounting practices in ensuring reliable and accurate accounts. This necessitates
that relevant records, including the cashbook and the Cash Local Treasury, as well
as Advances for Operating Expenses and Advances for Payroll ledgers, align to
validate the account balances shown in the financial statements. Additionally,
conducting regular and proper reconciliations of these records is essential to
maintain the accuracy of the accounts and to uphold the accountability of the
Municipal Treasurer.
5.5 The discrepancies noted above indicate a lack of adherence to these practices, as
there was no proper periodic reconciliation between the records of the Municipal
Treasurer and the Municipal Accountant. These unreconciled discrepancies
between the cashbook and the accounting records raise concerns about the
reliability of the Cash Local Treasury, Advances for Operating Expenses, and
Advances for Payroll balances reported in the cashbook and financial statement as
of December 31, 2024.
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