PART III

STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATION

Of the 14 prior years’ audit recommendations, ten (10) or 71.42% were implemented by Management, 3 (three) or 21.42% were
partially implemented and 1 (one) or 7.16% was not implemented.

Reason for Partial/

Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
1. The accounting Office was AAR CY
unable to comply with the 2016
regulation on the timely
preparation and submission of the
year-end financial statements and
other reports/schedules for the
General Fund proper and other
funds for CY 2016.

1.) We recommended that Fully Implemented

the Municipal Accountant be
required the timely submission of
the year-end Financial statements
and other reports/schedules for the
General Fund Proper and other
funds for CY 2016 in accordance
with the regulation. Accordingly,
appropriate remedial measures
should be effected by Management

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 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
to ensure that year-end financial
statements and required reports are
submitted promptly; and capacitate
agency personnel through
attendance to trainings and
seminars to ensure an efficient and
fast work output.
Fully Implemented
2.) We also recommended
that strict adherence to the cited
rules and regulations on the
rendition of reports be enforced by
the concerned officials in order not
to incur penalty as provided in
Section 122 (2) of P.D. No. 1445.
2. The Cash Advances granted AAR CY The amount includes Dialogue and formal letter were
from CYs 2003 to 2015 in the total 2016 cash advances by already sent to the concerned
amount of ₱148,392.30 was still former mayor. individuals.
not settled by the accountable
Officers concerned as of the year
end.

3.) We recommended that Not Implemented

withholding of salaries or any
amount due the Accountable
Officers concerned pursuant to the
provision of Section 5.1.3 of COA

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 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
Circular No. 97-002. Also,
appropriate sanctions for
continued violation of existing
law, rules and regulations could
also be instituted against them
pursuant to Section 128 of P.D.
No. 1445.
3. The Cash Advances of Special AAR CY
Disbursing Officer in November 2016
and December 2016 amounting to
₱0.65 million for the DSWD
Supplementary Feeding Program
(SFP) were not sufficiently
documented and transferred to the
MSWD Officer.

4.) We recommended that

Management must have a more Fully Implemented
efficient and effective control over
the granting, utilization and
liquidation of cash advances by
strictly implementing the rules and
regulations pertaining thereto and
observing proper/sufficient
documentation of disbursements.
4. As in previous year, again AAR CY
Management did not conduct the 2016

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 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
annual physical inventory of all its
Inventories and Properties and also
have not updated the Inventory
reports/records as required under
Section 124 of the Manual on the
NGAS for LGUs, Volume I, thus
prevented the Audit Team from
ascertaining the correctness,
valuation and existence of the
Agency’s property.

We reiterated and
recommended that Management:

5.) Initiate the conduct of a Partially

through and complete physical Implemented
inventory of all its inventory items
and properties which should be
done by an Inventory Committee
composed of the representative of
the Local Chief Executive as
Chairman, the Supply and
Property Officer or her
representative and the Accountant
or her representative;

6.) Prepare and submit to Partially

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 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
the Auditor the inventory reports Implemented
of all its inventory items and
properties; and

7.) Require the Accounting Partially

and Property Officials to maintain Implemented
updated records of Agency Assets.
5. Collections aggregating ₱1.06 AAR CY
million were not remitted daily by 2016
Revenue Collectors in the Office
of the Municipal Treasurer to the
OIC-Municipal Treasurer,
resulting in unremitted collections
in their possession ranging from
one to 44 days.

8.) We recommended that Fully Implemented

the Revenue Collectors remit all
their collections daily to the
Liquidating Officer to avoid
accumulation of Cash intheir
custody, in order to mitigate the
risk of possible loss and misuse of
the Municipal funds.

9.) Also, the Management Fully Implemented

requires the ICO-Municipal

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 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
Treasurer to strictly monitor the
remittances of collections by the
Revenue Collectors to the
Liquidating Officer and the
remittance/deposit of the same to
the ICO-Municipal Treasurer and
Authorized Depository Bank,
respectively, by the Liquidating
Officer.
6. The programs, projects and AAR CY
activities for the 20 percent Local 2016
Development Fund (LDF) were
not monitored by the Municipal
Planning and Development
Coordinator (MPDC) as embodied
in Section 476, Article Six, Book
III of RA No. 7160 in relation to
Sections 106 and 109 of the same
law.

We recommended that
Management require:

10.) The Project Fully Implemented

Implementers to provide the
MPDC of the Status of the
implementation of the

63
 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
developmental programs, projects
and activities of the LGU, for
monitoring purposes;

11.)The MPDC to monitor Fully Implemented

and evaluate the implementation of
the different developmental
programs, projects, and activities
in the local government unit in
accordance with the Approved
Development Plan; and

12.) The MPDC to cause Fully Implemented

the timely recording and updating
which would enable him to be
well-equipped in his functions in
appraising the Municipal Mayor
and other Agency Personnel of the
status of the development project
being implemented for a particular
period.
7. The Municipality of AAR CY
Bacacay showed an efficiency 2016
rating of 17 percent only on the
general implementation of the
proposed Development Projects
funded from their CY 2016

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 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
Current Legislative and
Continuing Appropriations of 20
percent Economic Development
Fund (EDF) amounting to ₱52.78
million, hence some of the
prioritized projects aggregating
₱43.78 million which were geared
toward the social, economic and
environmental development were
not fully attained or optimized.

13.) We recommended that Fully Implemented

the Local Chief Executive direct
the Municipal Offices concerned to
prioritize and fast track the
implementation of the
unimplemented CY 2016 targeted
socio economic and environmental
development projects under the 20
percent EDF of the Municipality, if
still found feasible and beneficial
to undertake, in order to recover
from the low efficiency rate that
might otherwise adversely affect
the efficiency for the following
year.
8. The payments made to laborers AAR CY

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 Reason for Partial/
Audit Observation and Status of Delay/ Non-
Reference Management Action
Recommendation Implementation Implementation, if
applicable
hired by the LGU for specific 2016
programs and projects under the
SEF amounting to ₱343,000.00
during CY 2016 were not
supported with contracts of
services or job orders.

14.) We recommended that Fully Implemented

Management submit immediately
the Contract of Services or Job
Order of the laborers who perform
the labor works for the above-cited
projects of the barangay
undertaken by Administration.
Failure to submit the same may
result to audit suspension or
disallowance. Henceforth, shall
issue Job Order Contracts upon
hiring of laborers to work on LGU
projects undertaken by
Administration. The contract shall
specify the amount of
compensation and the work to be
rendered by the laborer. A copy
thereof shall be attached to the
pertinent disbursement voucher to
support the claim.

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