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Reason for
CY Management Status of
Audit Observation Recommendation Partial/Non-
2009 Action Implementation
Implementation
AAR
STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT
RECOMMENDATIONS
Of the ten (10) audit recommendations contained in the CY 2009 Annual Audit
Report (AAR), none was implemented, one (1) was partially implemented while the
remaining nine (9) were not acted upon during the year and were reiterated in CY 2010
AAR. These are as follows:
Ref.
Reason for
CY Management Status of
Audit Observation Recommendation Partial/Non-
2009 Action Implementation
Implementation
AAR
I. Financial and Compliance Audit
Depreciation We advise Finding The Not Inadequacy of
expense was not Management to No. 1.1 management Implemented records to
provided for exert efforts to was not able establish the costs
buildings totaling locate the to comply Reiterated under of the properties.
P1.02 billion documents relative with their Finding
representing to the costs of the commitment No. 1.1
balances as of June buildings so that the that the
30, 2004 hence the corresponding created PPE
overstatement of depreciation Monitoring
said account and expense could be Team will
understatement of computed and conduct
depreciation taken-up in the physical
expense account by books. If it is no inventory,
an undetermined longer possible to assess and
amount get the historical inspect the
values, require the conditions of
City Appraisal the PPEs and
Committee to submit
determine the inventory
appraised values of report
the buildings to thereon.
serve as basis in
recording the book
values as well as in
preparing/updating
the property stock
and ledger cards
and ultimately in
providing the
depreciation costs.
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Ref.
Reason for
CY Management Status of
Audit Observation Recommendation Partial/Non-
2009 Action Implementation
Implementation
AAR
Initially, the
simultaneous
physical inventory
of the property
should be
completed thru the
coordinated efforts
of the General
Services Office and
the PPE Monitoring
Team.
Non recording of We recommend that Finding Letter was Not Difficulty in the
bond transactions in management No. 1.3 sent by the Implemented retrieval of bank
the amount of designate a City records since
P38.86 million representative from Accountants Reiterated under officers
overstated the the City Office to PNB Finding No. 1.2 previously in-
balances of Accountants Office requesting for charge of the
accounts Cash in to personally documents bond floatation
Bank, LCCA coordinate with the relative to the had since been
Trustee Bank and trustee bank, expenses transferred or no
Government Equity Philippine National incurred out longer in service.
and understated the Bank, to secure the of the bond
expense account. documents relative floatation.
to the P38.86
million expenses
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Ref.
Reason for
CY Management Status of
Audit Observation Recommendation Partial/Non-
2009 Action Implementation
Implementation
AAR
for the Katipunan
Bonds, thereby
facilitating the
recording of the
transactions in the
books of accounts.
Additional revenue We recommend that Finding The City is Not The formulated
of at least P107.16 Management No. 3.1 still in the Implemented procedures and
million was not facilitate the process of guidelines that
attained for failure approval/passage of revising the Reiterated under will govern the
of the City to an ordinance subdivision Finding No. 4.4 transfer is still for
execute the sale of enumerating the plan. final approval by
property from the procedures and LIAC. Once
socialized housing guidelines approved, the
program and to governing the same will support
collect the real disposition of the the Sangguniang
property taxes socialized lots. Panlungsod Res.
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Ref.
Reason for
CY Management Status of
Audit Observation Recommendation Partial/Non-
2009 Action Implementation
Implementation
AAR
therefrom. No. 1777 s. 2006
authorizing the
City to dispose
these projects.
The shares from We advise the City Finding Barangay Not Subsidiary
Real Property and Accountants Office No. 3.3 shares now Implemented records for the
Community Taxes to fast-track the identified in account were not
of the barangays for reconstruction of the Abstract Reiterated under maintained by the
CY 2004 and prior the subsidiary of Collection. Finding No. 4.3 City Accountant.
years remained not records to establish
released. the amount of
unreleased RPT and
community tax
shares of each
barangay, in
compliance with
Section 271 (d) of
RA 7160.
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Ref.
Reason for
CY Management Status of
Audit Observation Recommendation Partial/Non-
2009 Action Implementation
Implementation
AAR
totaling to P83.70 balances of the on-going. the reconciliation
million and P81.87 accounts Due to of payable
million, GSIS and Due to Reiterated under accounts caused
respectively, BIR in the financial Finding No. 4.2 delay in the
existing in the statements, we process.
books since 2004 recommend the
and prior years creation of a
remained not committee tasked
remitted due to solely to reconcile
insufficient records with the
documents to GSIS and the BIR.
establish the
correctness of such Management is
liabilities. enjoined to strictly
comply with the
GSIS and BIR
regulations on the
timely remittance
of the trust
collections.
The automated We advise the Head Finding Transfer of Partially The Information
system of the of SPPC to No. 3.5 facility to Implemented Technology
waterworks coordinate with the North City Office is still in
operation of the Information Hall was the process of
Serbisyong Patubig Technology Office effected. installing needed
ng Pamahalaang the enhancement of Management enhancement of
Caloocan (SPPC) the automation now in the the system.
remained without a system of SPPC, process of
reporting facility, which should enhancing
thus, the unpaid include a reporting automation
accounts were not facility that would system to
properly monitored facilitate the include
and taken up in the preparation of its reporting
books, contrary to financial reports. facility
Section 112 of PD needed in the
1445. preparation of
financial
reports.
II. Value for Money Audit
The operations of We reiterate our Finding Management Not No technical
Maypajo market previous years No. 1 posted Implemented committee was
could have recommendation advertisement formed to
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Ref.
Reason for
CY Management Status of
Audit Observation Recommendation Partial/Non-
2009 Action Implementation
Implementation
AAR
generated an that the available for lease of Reiterated under conduct
additional revenue spaces in the vacant spaces Finding No. 2 evaluation and
of P37.20 million second and third of the market. study the
per year had floors be advertised possibility of
management opted so these could amending or
to directly manage generate additional rectifying
its operations and revenue. provisions in the
leased its vacant contract with the
areas to its We further Cooperative.
optimum capacity. recommend that
demand letters be
issued to the
religious
congregation and
illegal occupants at
the second and third
floors requiring
them to vacate the
premises so that
available and
existing spaces be
leased to interested
parties. Seek legal
action if demands
remain unheeded.
Finally, we reiterate
our
recommendation
that a technical
committee be
created to review
the lease contract
with the MMMPC,
to ensure that the
terms are
advantageous to the
government.
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