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 Ref.                                                                                                                              Status of
                  Audit Observations                                   Audit Recommendations
                                                                                                                                Implementation

 2018     The collectability of receivables 102. Conduct a thorough verification and analysis of the dormant               Unimplemented:          An
 AAR,     aggregating ₱13,458,171.45 which        receivable accounts and provide allowance for impairment pursuant to     allowance for impairment
AO No.    had been non-moving or dormant for      Section 71 of PPSAS 29.                                                  loss had been set up in CY
5, page   ten years to more than 20 years could                                                                            2019 for receivables past
   39     not be ascertained due to the absence                                                                            due for ten years and more,
          of sufficient records/documents and/or                                                                           whose collectability could
          the debtors could no longer be located,                                                                          no longer be ascertained.
          to the detriment of the government.                                                                              However,              other
          Likewise,       no    allowance     for                                                                          receivables aging more
          impairment of receivables was                                                                                    than five years, such as
          recognized thereon as prescribed in                                                                              advances for operating
          Section 7 of COA Circular No. 2016-                                                                              expenses, payroll, special
          005 dated December 19, 2016, thus,                                                                               disbursing officers, and
          affecting the presentation of the                                                                                officers and employees,
          financial statements.                                                                                            were not provided with an
                                                                                                                           allowance for impairment
                                                                                                                           loss.

                                                103. Comply with all the conditions and requirements of COA Circular No.   Unimplemented:           The
                                                     2016-005 for possible filing of request for authority to write off    lacking documents for the
                                                     dormant receivable accounts by the Local Chief Executive to the       request for the write-off of
                                                     Commission on Audit.                                                  dormant receivables had
                                                                                                                           not been submitted to the
                                                                                                                           Audit Team for re-
                                                                                                                           evaluation        due      to
                                                                                                                           difficulties in gathering the
                                                                                                                           required documents.




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