Status of
Ref Observation Recommendations Implementation/
Results of Validation
No. 5, to terms disadvantageous to the observations, submit the loan the loan agreement,
page City, did not report the initial agreement together with the BSP BSP Monetary Board
40 drawdown of ₱11,923,106.67 in Monetary Board Opinion and Opinion and BLGF-
the Statement of Comparison of BLGF-DOF certifications and DOF certifications
Budget and Actual Amounts also a certified true copy of SP on Net Debt Service
(SCBAA), did not maintain a RN 18-196 bearing the signatures Ceiling and
special account for the loans to of all concurring SP members on Borrowing Capacity.
monitor proper utilization thereof, all pages, conduct a thorough A letter for the
contracted longer payment terms assessment of the necessity of justification on the
beyond the term of incumbent borrowing funds to avoid necessity of the
officials and was not fully additional interest and costs, with procurement of heavy
supported with the requisite primordial consideration of the equipment dated
certifications and documents to City’s ability to repay the loan 10/20/2021 was
justify the necessity of contracting within the incumbency of the submitted.
the said amount. officials’ 3-year term in office, The loans are
renegotiate on a fixed interest monitored through a
rate, adjust the SCBAA, and Subsidiary Ledger
direct the Accountant to maintain with account no. 2-
a special account in the GF for 01-02-040 under the
loans secured. account title: Loans
Payable – Domestic.
2019 The City did not properly monitor The City Mayor to:
AAR, the implementation of eight
AO projects costing ₱43,144,693.82 76) Exercise the remedies provided Unimplemented
No. 7, which were found upon ocular under Section 8.4, Annex “E” of No action taken by
page inspection to be either defective or the Revised IRR of R.A. No. management.
46 with negative slippage nor did it 9184 in addressing the contracts
take any of the courses of action under default, without prejudice
provided under Section 8.4 of to other courses of action and
Annex “E” of the 2016 Revised remedies available under the
IRR of R.A. No. 9184 against circumstances;
erring contractors, thereby causing
unnecessary delay in the delivery 77) Require the City Engineer, CPDO Unimplemented
of the desired benefits by the and other officials to submit a No action taken by
targeted end-users of the said written explanation why no management.
projects. immediate steps were undertaken
to address the deficiencies noted,
for the seeming lack of initiative
to enforce the measures available
to the government to correct such
defects, why progress payments
were allowed for projects with
negative slippage, and why final
payment was approved for
projects not compliant with
specifications; and
78) Justify the obvious tendency of Unimplemented
implementing projects by No action taken by
contract given the additional management.
indirect cost incurred and why the
same should not be regarded as
unnecessary expenses which are
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