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 Ref.                                                                                                                                Status of
                  Audit Observations                                     Audit Recommendations
                                                                                                                                  Implementation

          related RPT income accounts doubtful,
          affecting the fair presentation of the 13. Prepare the necessary adjusting entries; and                      Unimplemented
          financial statements.
                                                 14. Periodically issue demand letters to the Municipal Accountants to Unimplemented
                                                     ensure strict compliance with the aforementioned requirements.

                                                                                                                           The Provincial Accountant
                                                                                                                           reminded the Municipal
                                                                                                                           Accountants, including the
                                                                                                                           Municipal         Treasurers.
                                                                                                                           However, most Municipal
                                                                                                                           Accountants         submitted
                                                                                                                           their reports late, hindering
                                                                                                                           the reconciliation of the
                                                                                                                           Monthly Abstract with the
                                                                                                                           records of the Provincial
                                                                                                                           Accountant.
 2023     The contract for the Construction of 15. Management provides a comprehensive written explanation or Implemented
 AAR,     Warehouse and Production Facility of     justification of the different dates found in the Contract of Agreement
AO No.    the Negros Oriental Native Chicken       and the Notice to Proceed pertaining to the same transaction.
8, page   Production and Marketing Enterprise
   55     amounting to ₽5,081,112.64 was 16. Management submits a detailed written justification clarifying why the Implemented
          executed before the winning contractor   contract was awarded, notwithstanding the contractor’s inability to
          posted the Performance Security,         furnish the requisite performance security within the stipulated
          contrary to Items XIII and IX of the     timeframe provided under Section 27.1 of the Revised IRR of RA No.
          Terms and Conditions and Section         9184.
          27.1 of the Revised IRR of RA No.
          9184.



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