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Ref.          Audit Observations                  Audit Recommendations                 Status of Implementation
       ₱3,838,501.95,    and   the   cash       (1-07-05-080) by making          the
       advances    for    wage    payment       following adjusting entries:
       amounting to ₱1,638,341.25. These
       errors are inconsistent with COA         Construction and Heavy Equipment
       Circular No. 2015-009 dated                 ₱10,269,674.00
       December 1, 2015, and have resulted      Motor Vehicles
       in the misclassification of the             ₱10,269,674.00
       affected accounts based on the
       amounts involved.                   3.   Record        the       corresponding         Implemented
                                                depreciation expense accounts used
                                                in     recording       the     annual
                                                depreciation expense for the dump
                                                trucks to be reclassified;

                                           4. Transfer the unexpended and                     Implemented
                                              unobligated balances of the QRF
                                              and the LDRRMF-MOOE to the
                                              Special Trust Fund be recorded in
                                              the General Fund books at the end
                                              of the year as Transfers of Unspent
                                              Current Year DRRM Funds to the
                                              Trust Funds (5-02-15-010);

                                           5. Reclassify the recorded cash                    Implemented
                                              advances from the asset account
                                              Advances for Payroll (1-03-05-
                                              020) to the appropriate account
                                              Advances to Special Disbursing
                                              Officer (1-03-05-030) by making
                                              the following adjusting entry:

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