6.4 The Head of Agency (HoA) shall establish an Investigation Committee tasked with
conducting a thorough review of dormant accounts. The Committee shall prepare
an Investigation Report, which will be submitted to the HoA for approval. Based
on the findings, the HoA shall then render a final decision and provide a copy of
the report to the Accountant for proper documentation.
6.5 Within one (1) year from the Circular’s effectivity, the Head of the Accounting
Unit, through the HoA, shall submit a request to the Audit Team Leader (ATL)
and/or Supervising Auditor (SA)—depending on the jurisdictional amount—for
COA’s approval to write off or derecognize dormant accounts from the books.
This request must be accompanied by the supporting documents specified in
Annex 8 of the Circular.
6.6 Verification of the General Ledger (GL) revealed that the Other Receivables
account in the General Fund included an amount of ₱1,907,679.50. The amount
was set up in CY 2018 as a beginning balance when the Municipality migrated to
the Electronic New Government Accounting System (eNGAS). Inquiry with the
Municipal Accountant disclosed that the balance pertains to assistance to
individuals that were granted in CY 2010. However, there are no schedules or
documents present to warrant the collection of such, although effort was expended
before to produce schedules and search for the supporting documents.
6.7 Meanwhile, the accounts Due from Government Owned and Controlled
Corporations (GOCCs) and Due from National Government Agencies (NGAs) are
also composed of beginning balances set up in CY 2018:
Account Amount
Due from GOCCs
GSIS/EC Contributions ₱ 6,228.19
Due from NGAs
Bureau of Post 136.00
COMELEC 5,491.73
DOH 400.00
Ministry of Budget 566.68
Ministry of Public Highways 17,500.00
Supreme Court 676.41
₱ 24,770.82
6.8 An interview with the Office of the Municipal Accountant disclosed that the
balances mentioned were already recorded in the books prior to the Municipal
Accountant’s employment with the Municipality in CY 2016, and there were no
documents to support the claim.
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