12.4 An inquiry with the Municipal Accountant revealed that the balance had been
overlooked and had not yet been remitted to the National Treasury, even after the
lifting of the State of Public Health Emergency. However, the Municipal
Accountant assured that he would coordinate with the Municipal Treasurer to
prepare a check payable to the National Government, ensuring that the balance
would be promptly remitted to the National Treasury.
12.5 The Municipality's inability to remit the unutilized funds to the National Treasury
deprived the National Government of the opportunity to use these funds for
priority projects, programs, and activities.
12.6 We recommended and the Municipal Accountant agreed to provide the
Municipal Treasurer with the records of unutilized funds under the BGCM
so that the latter can return these funds to the National Treasury in
accordance with Item 3.9 of DBM LBC No. 125 dated April 7, 2020.
12.7 The Municipal Accountant and Municipal Treasurer disclosed that a disbursement
voucher has already been prepared to return the unutilized funds to the National
Treasury.
Fund Transfers not supported by MOA and Approved Project Expenditures or Expenses
13. Fund transfers amounting to ₱420,000.00 provided to the Barangays of the
Municipality as subsidy for Sibul Festival were not supported by the Memorandum
of Agreement (MOA) and Approved Project Expenditures or Expenses as required
under COA Circular 2012-001 dated June 14, 2012, resulting in a lack of
accountability, insufficient oversight and challenges in monitoring and liquidation.
13.1 Item 3.1.1 of COA Circular No. 2012-01 dated June 14, 2012, as amended by COA
Circular 2016-002 dated May 31, 2016, enumerated the following documentary
requirements for fund transfers:
1. Copy of MOA/Trust Agreement
2. Copy of Approved Program of Work (for infrastructure project)
3. Approved Project Expenditures or Estimated Expenses indicating the
project objective and expected output (for other projects)
4. Certification by the Accountant that funds previously transferred to the
Implementing Agency (IA) have been liquidated and accounted for in the
books
5. Copy of the OR issued by the IA to the Source Agency acknowledging
receipt of funds transferred
13.2 During our post-audit of Disbursement Vouchers (DVs) (Annex A), it was
revealed that the Municipality transferred a total of ₱420,000.00 in subsidies to its
Barangays. These funds were intended to cover expenses related to the Pagsibul
sa Kabataan and Pagsibul sa Barangay Festival. The subsidies were sourced from
the Municipality's General Fund under the Culture and Arts Development
Program.
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