governance, safeguarding the Municipal Government’s financial integrity, and
supporting informed decision-making and strategic planning.
5.5. As part of our regular audit procedure, we requested a copy of the BRS as of
December 31, 2024, to verify the accuracy of the Cash in Bank balances. However,
records showed that the requirement to submit the BRS for the entire year of 2024
was not met.
5.6. We reiterate that under R.A. No. 7160, or the Local Government Code, the
Accountant is responsible for preparing and submitting financial statements to the
local chief executive and the concerned sanggunian. Additionally, the Head of the
Agency must ensure that the bank balance reported in their books reconciles with the
bank statement report.2
5.7. Furthermore, the accountable officer is reminded of Section 105 (2) of the mentioned
Act, which pertains to government funds, to wit:
“Every officer accountable for government funds shall be liable for all
losses resulting from the unlawful deposit, use or application thereof and
for all losses attributable to negligence in the keeping of the funds.”
5.8. Given the foregoing, the non-preparation of the BRS hindered the timely
reconciliation and validation of the Municipality’s Cash in Bank per book and per
bank, and the detection of errors and/or fraud, if any.
5.9. We recommended and the Municipal Accountant agreed to prepare and submit
to the Audit Team the monthly BRS pursuant to Sections 3.2 and 3.4 of COA
Circular No. 96-011 dated October 2, 1996.
5.10. We further recommended and the Municipal Accountant and Municipal
Treasurer agreed to closely coordinate and regularly reconcile their respective
records for early detection and correction of adjustments and errors, if any,
pursuant to Section 74 of P.D. No. 1445.
2 Section 74 of P.D. No. 1445
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