14.4 Verification of the Subsidiary Ledger (SL) of the amounts presented above
pertains to amounts collectible from the officers and employees due to
overpayment of salaries, receivable arising from the case denied per COA decision
for the loss through robbery, adjustment due to erroneous liquidation, adjustment
of GSIS, Pag-IBIG, PhilHealth, receivable from payment of cellcards and internet
expenses, receivable due to DCCCO repayment paid by the LGU, and other
adjustments.
14.5 The Office of the Municipal Accountant has identified that the receivables are
collectible from 27 officers and employees who are still connected with the
Municipality. Additionally, ₱2,531.00 is due from a retired employee, while
₱29,100.00 is owed by an employee who has transferred to another agency.
However, the Municipal Accountant clarified in its reply to the observation that
the amount of ₱29,100.00 was a result of incorrect posting and, thus, the amount
shall not be included in the total amount due and collectible.
14.6 An inquiry with the Municipal Accountant revealed that management has not
enforced measures to compel officers and employees still affiliated with the
Municipality to settle their outstanding obligations. Furthermore, as of this date,
no demand has been issued to the two former employees who are no longer
connected with the Municipality.
14.7 The lack of efforts to enforce collections indicates lapses in safeguarding
government resources, potentially leading to financial inefficiencies, loss of funds,
and mismanagement, thereby compromising the principles of efficiency,
economy, and effectiveness in government operations.
14.8 We recommended and the Local Chief Executive agreed to direct the
Municipal Accountant to promptly issue formal demand letters to all officers
and employees with outstanding balances, including those who have retired
or transferred to other agencies.
14.9 We further recommended and the Municipal Accountant agreed to establish
and implement stricter monitoring and reporting mechanisms to ensure
regular tracking, timely follow-up, and accurate reporting of all outstanding
receivables from officers and employees.
14.10 The Municipal Accountant also disclosed that a careful review of each account has
already been done, and demand letters have been drafted.
Unreverted and unutilized LGSEF
15. The Local Government Service Equalization Fund (LGSEF), amounting to
₱121,164.61, has not been utilized for over ten years due to a lack of available
documents and records, which contradicts Section 2 of Presidential Decree (P.D.)
No. 1445, thereby depriving the constituents of the benefits they would have received
had the funds been utilized for additional projects.
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