c. Direct the Municipal Accountant to immediately coordinate with the
concerned Barangays to submit liquidation reports for the ₱420,000.00
fund transfers, and require compliance within a specified timeframe.
13.7 On June 2, 2025, copies of the MOAs and Approved Activity Design were
submitted to the Audit Team.
Long outstanding receivables from officers and employees
14. The Municipality did not enforce the timely collection of receivables from its officers
and employees, amounting to ₱108,336.22, which have been outstanding for up to
three years or more, indicating lapses in financial management and non-compliance
with Section 2 of PD No. 1445, thereby compromising the principles of efficiency,
economy, and effectiveness in government operations.
14.1 Section 2 of PD No. 1445 provides that it is the declared policy of the State that
all resources of the government shall be managed, expended or utilized in
accordance with law and regulations, and safeguard against loss or wastage
through illegal or improper disposition, with a view to ensuring efficiency,
economy and effectiveness in the operations of government. The responsibility to
take care that such policy is faithfully adhered to rests directly with the chief or
head of the government agency concerned.
14.2 COA Circular 2015-009 dated December 1, 2015, prescribes the Revised Chart of
Accounts for Local Government Units (LGUs). Annex B of the circular prescribes
that the account Due from Officers and Employees is debited for the amount of
claims from the agency’s officers and employees for overpayment, cash shortage,
loss of assets, and other bills issued by the agency. The account is credited for the
collection of the receivable.
14.3 Review of the General Ledger (GL) for the Due from Officers and Employees
account revealed a balance of ₱142,292.22 as of December 31, 2024. An
examination of the Aging Schedule indicated that ₱4,856.00 represents amounts
not yet due as of year-end, while ₱137,436.22 pertains to amounts outstanding for
periods ranging from less than 30 days to over three (3) years, as detailed below:
No. of Days Past Due Total Amount Due
Less than 30 days ₱ 0.62
31-90 days 180.77
91-365 days 5,259.00
Over 1 year 26,384.13
Over 2 years 79,630.62
3 years & above 25,981.08
Total ₱ 137,436.22
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