01-Binalonan2012 Audit Report

8/10/2019 01-Binalonan2012 Audit Report

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Republic of the PhilippinesCOMMISSION ON AUDIT

Commonwealth Avenue, ue!on Cit"

ANNUAL AUDIT REPORT

ON THE

MUNICIPALITY OF BINALONANProvince of Pangasinan

#o$ The %ea$ &n'e' Decembe$ (), *+)*


2/33

Republic of the Philippines

COMMISSION ON AUDIT

Office of the Supervising Auditor

Audit Group F- Pangasinan II

Binalonan, Pangasinan

February 28, 20!

The Honorable AMON !" GUICO III

"unicipal "ayor

"unicipality of Binalonan


Sir#

#e trans$it here%ith the report on the financial and co$pliance audit of the accounts and

operations of the Muni$ipalit% o& 'inalonan( Pangasinan for the year ended &ece$ber !,

202, in co$pliance %ith Section 2, Article '()& of the Philippine *onstitution and pertinentsections of Presidential &ecree +o --. /he report %as prepared by "s *oraon A Paragas,

Audit /ea$ 1eader and "s ladys * Bathan, 3llen S 4ue5ano, Audit /ea$ "e$bers

/he audit %as conducted to ascertain the propriety of financial transactions and

co$pliance %ith prescribed rules and regulations 't %as also conducted to ascertain the accuracy

of financial records and reports, as %ell as, the fairness of presentation of the financial state$ents

/he report consists of four parts6 Part ' contains the Audited Financial State$ents, Part ''

details our Significant Findings and Reco$$endations %hich %ere discussed %ith the concerned

$anage$ent officials and staff, Part ''' presents the Status of '$ple$entation of Prior 7ears

Reco$$endations and Part '9 sho%s our Anne:es

#e re;uest that the findings and reco$$endations contained in the said report be fully

addressed and %e %ould appreciate being infor$ed of the action ta0? days fro$ receipt hereof, pursuant to the eneral Provisions of Section @- of Republic Act

+o 0.., other%ise


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COMMISSION ON AUDIT

Office of the Audit /ea$ 1eader)/ea$ .


/el +o =0.? .>2)0@.@

February 28, 20!

"s *ecilia AnchetaSupervising Auditor

*o$$ission on AuditAudit roup F C Pangasinan


Mada+#

'n co$pliance %ith Section 2, Article '()& of the Philippine *onstitution andpertinent sections of Presidential &ecree +o --., %e conducted a Financial and

*o$pliance Audit on the accounts and operations of the Muni$ipalit% o& 'inalonan(Pro,in$e o& Pangasinanfor the year ended &ece$ber !, 202

/he audit %as conducted to ascertain the propriety of financial transactions and

co$pliance of the agency to prescribed rules and regulations 't %as also $ade to

ascertain the accuracy of financial records and reports, as %ell as the fairness of thepresentation of financial state$ents

/he results of our audit are e$bodied in our attached report consisting of fourparts, Part ' C Audited Financial State$ents, Part '')&etailed Findings and

Reco$$endations, Part ''' C Status of Prior 7ears Audit Reco$$endations and Part '9 )

Anne:es /he findings and reco$$endations %ere discussed %ith concerned

$anage$ent officials and staff

A ;ualified opinion on the fairness of the presentation of the financial state$ents%as rendered due to the inade;uacy of records $aintained by the $unicipality and the

non)sub$ission of the physical inventory report of the properties of the $unicipality

%hich affected the reliability of the Property, Plant and 3;uip$ent in the a$ount of P200,88>,>>80

Our audit %as conducted in accordance %ith generally accepted state auditing

standards and %e believe that it provides reasonable bases for the results of audit

9ery truly yours,

COAON A" PAAGAS

State Auditor '''

Audit /ea$ 1eader


4/33

).)CUTI!) SUMMA/

A" AUDIT HIGH*IGHTS

As of &ece$ber !, 202, the total assets, liabilities and govern$ent e;uity ofthe "unicipality of Binalonan a$ounted to P28@,.!,0>2, P,-2,8@808 and

P2,@-,>->!, respectively

For the year 202, the "unicipality had generated an inco$e of

P0.,08,2.!>@ or an increase of P,0.,8>. over that of last years actual

inco$e of P0!,@2,!8>.-

*urrent appropriations a$ounted to P8,.@0,-8 and continuing

appropriations a$ounted to P!@,@-,!202> of %hich P@8,08@,@022 and

P28,@!,282!> respectively %ere obligated /he total e:penses incurred for the year

202 a$ounted to P@0,2,>20, increased by P0,.2-,8!02> or !2 percent asco$pared to last years P@,>-,88-

'" SCOP) OF AUDIT

/he audit covered the operations of the "unicipality of Binalonan for the

calendar year 202 /he types of audit e$ployed consist of financial and co$pliance

audit ai$ed to ascertain the fairness and reliability of the financial position andresults of operation of the $unicipality and to chec< agencys adherence to auditing

la%s, rules and regulations 1i


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D" SIGNIFICANT FINDINGS AND )COMM)NDATIONS

Su$$aried belo% are the significant audit findings and the correspondingreco$$endations6

/he *ash in 9ault account had an outstanding balance of P @,!! indicating thatthe collections %ere not deposited intact contrary to Section !2 of the "anual on +e%

overn$ent Accounting Syste$ ="+AS?, 9olu$e ' thereby e:posing the

undeposited a$ount to possible $isuse

#e reco$$end that the "unicipal /reasurer $ust deposit intact all the collections to

avoid possible $isuse or $isappropriation of fund Also, the "unicipal /reasurer

should refrain fro$ using collections in paying disburse$ent vouchers 'nstead, pettye:penses $ust be paid out of the petty cash fund %hile chec


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$aintain their respective e;uip$ent ledger cardsEproperty records for reconciliation

purposes

. &isburse$ent 9ouchers, payrolls and Dournals %ere not sub$itted to *OA for post)

audit %ithin the regle$entary period set forth under Section 00 of P& --. /hus,

precluding the Audit /ea$ fro$ perfor$ing a ti$ely revie% and evaluation of theagencys transactions

#e reco$$end that the officials concerned shall render $onthly reports of theirtransactions %ithin the regle$entary period set forth under Section 00 of P& --.

> +o separate financial state$ents %ere prepared pertaining to the niversity of

3astern Pangasinan =3P? contrary to the provisions of Section 0. and 0 of the"anual of the +e% overn$ent Accounting Syste$ =+AS?, thereby resulting in the

difficulty of $onitoring the operations of the said operating unit

#e reco$$end strict co$pliance %ith the provisions of Section 0 of "+AS

1i


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TA'*) OF CONT)NTS

Page +o

PAR/ ' C Audited Financial State$ents

State Auditors Report on the Financial State$ents

State$ent of "anage$ent Responsibility 2 *onsolidated Balance Sheet !

*onsolidated State$ent of 'nco$e and 3:penses -

*onsolidated State$ent of *ash Flo%s .

*onsolidated State$ent of *hanges in overn$ent 3;uity >

+otes to Financial State$ents

PAR/ '' C &etailed Findings and Reco$$endations .

PAR/ ''' C Status of '$ple$entation of Prior 7ears Reco$$endations 2

PAR/ '9 C Anne:es Financial State$ents by Fund

eneral Fund

Anne: A C Balance Sheet

B C State$ent of 'nco$e and 3:penses

* C State$ent of *ash Flo%s

& C State$ent of *hanges in overn$ent 3;uity

Special 3ducation Fund

Anne: 3 C Balance Sheet

F C State$ent of 'nco$e and 3:penses

C State$ent of *ash Flo%s

H C State$ent of *hanges in overn$ent 3;uity

/rust Fund Anne: ' C Balance Sheet

I C State$ent of *ash Flo%s

J C State$ent of *hanges in overn$ent 3;uity

Status of Appropriations, Allot$ents and Obligations

Anne: 1 C *urrent 1egislative Appropriations

" C *ontinuing Appropriations

Others

Anne: + C Analysis of *ash in 9ault Account

O C Schedule of *ash Advances

P C tiliation of ender and &evelop$ent =A&?


8/33

Part I

Audited Finan$ial State+ents


9/33


10/33


COMMISSION ON AUDIT

*o$$on%ealth Avenue, 4ueon *ity

STAT) AUDITO0S )POT ON TH) FINANCIA* STAT)M)NTS

Hon" a+on !" Gui$o III

"unicipal "ayorBinalonan, Pangasinan

Pursuant to Section 2, Article '()& of the *onstitution of the Philippines and Section -!

of the overn$ent Auditing *ode =P& +o --.?, %e have audited the acco$panying Balance

Sheet of the Muni$ipalit% o& 'inalonan( Pro,in$e o& Pangasinanas of &ece$ber !, 202 and

the related State$ents of 'nco$e and 3:penses and *ash Flo%s for the year then ended /hese

financial state$ents are the responsibility of the $anage$ent Our responsibility is to e:press anopinion on these financial state$ents based on our audit

3:cept as discussed in the follo%ing paragraph, %e conducted our audit in accordance%ith generally accepted state auditing standards in the Philippines /hese standards re;uire that

%e plan and perfor$ our audit to obtain reasonable assurance that the financial state$ents are

free of $aterial $isstate$ents Our audit includes e:a$ining, on a test basis, evidence supporting

the a$ounts and disclosures in the financial state$ents 't also includes assessing the accounting

principles used and significant esti$ates $ade by $anage$ent, as %ell as evaluating the overall

financial state$ent presentation #e believe that our audit provides reasonable basis for our

opinion

/he inade;uacy of records $aintained by the "unicipality and the non)sub$ission of the

physical inventory report of the properties of the "unicipality affected the reliability of the

Property, Plant and 3;uip$ent =net of Accu$ulated &epreciation? in the a$ount of

P 200,88>,>>80 O%ing to the inade;uacy of the records of the "unicipality, %e %ere unableto ascertain the e:istence, accuracy and validity of the accounts by other audit procedures

'n our opinion, e:cept for the effects of the $atters discussed in the preceding paragraph,

the financial state$ents referred to above present fairly, in all $aterial respects, the financial

position of the Muni$ipalit% o& 'inalonan( Pangasinan as of &ece$ber !, 202, and the results

of its operations and cash flo%s for the year then ended in confor$ity %ith generally accepted

state accounting principles in the Philippines

COMMISSION ON AUDIT

By6

COAON A" PAAGAS

State Auditor '''

Audit /ea$ 1eader

February 28, 20!


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NOT)S TO FINANCIA* STAT)M)NTS

=#ith *o$parative Figures for 20?

Agency Profile

*reation

/he na$e Binalonan evolved fro$ the 'locano %ord balonG %hich is

synony$ous to baonG in /agalog and pac, &on Silverio delos Santos of

"anaoag too< the reign on Binalonan, t%o years later, in 8!8, Binalonan beca$e

a separate $unicipality Ho%ever, there is no


13/33

'ts construction %as largely financed by a loan fro$ 4uedan and Rural *redit

uarantee *orporation =43&A+*OR?

Another structure in the public $ar


14/33

Funda$ental errors of prior years are corrected using the Prior 7ears AdDust$ent

account %hile errors affecting the current years operations are charged to the current

years accounts

"onetary &eno$ination sed

All a$ounts in the financial state$ents are e:pressed in Philippine Peso, the

do$estic currency

! *ash

/he *ash Account consists of the follo%ing6

1271 1277

*ash in 9ault

Petty *ash FundPayroll Fund

*ash in Ban!8

2,2!! 2,>8!,@@

>,!8.,22-2

!2>,8!-0

!8!.-0,@!>-

.,88>-!0! 2,>-!,.8!!@

.,8@,!0@0@

/ypes of deposits $aintained

Four =-? current accounts and one =? ti$e deposit account are $aintained

under the eneral Fund One =? current account is individually $aintainedunder the Special 3ducation Fund and the /rust Fund

Period of ti$e deposit

/he ti$e deposit account %ith the Philippine +ational Ban< =P+B?, rdaneta

*ity branch has a !0)day ter$ and at the end of $aturity date, the a$ount is beingrolled over

- Receivables

/his account includes the follo%ing6

1271 1277

&ue fro$ Officers and 3$ployees

Real Property /a: Receivable

Special 3ducation /a: Receivable&ue fro$ +As

&ue fro$ 1s

&ue fro$ Other FundsReceivables C &isallo%ancesE*harges

8,-0,-.82

!,>0.8

!,>0.8,-.@

202,-!!

,>-,00280>!0,0000

8,-.,!.!@

2,2,@@-!@

2,2,@@-!@,-.@

202,-!!

2,2>,.!>8>!0,0000

@


15/33

Advances to Officers and 3$ployees

Other Receivables

!>,0.@02

KKK--,8!->

,-!-,.2!88

.@!,08.

KKK!0,@->

8,.2,828

&ue fro$ Officers and 3$ployees account is $ainly co$prised of the cash

shortage of the for$er "unicipal /reasurer, "rs "arilyn O 9alenuela, totalingP8,-08,@-0>

. 'nventories

*onsist of the follo%ing6

1271 1277

Office Supplies 'nventory

Accountable For$s 'nventory"edical, &ental and 1ab Supplies 'nventory

-,8.0@

>,02@00 .@,!-!-

.-2,..2!

--,@.>>0

8,2@00 22,02@0

.0.,.8.0

> Prepay$ents

1271 1277 *onsist of6

Other Prepaid 3:penses 2!,8@82 2,>.0

/he substantial a$ount of this account pertain to prepaid guarantee fee/he 1 uarantee *orporation =1*?, as guarantor on the P0 $illion loan

%ith the Ban< of the Philippine 'slands =BP'?, absolutely guarantees the pro$ptand full pay$ent of the principal andEor interest on the loan up to eighty)fivepercent =8.L? of the principal and interest /he uarantee Fee e;uivalent to one

point t%enty)five percent =2.L? per annu$ on guaranteed portion of the

principal and interest on the loan is payable in advance

For the first year, the a$ount %as deducted fro$ the initial loan release in

&ece$ber 200 Subse;uent annual guarantee fees are payable based on theschedule provided by the guarantor

PROP3R/7, P1A+/ M 34'P"3+/

/his account consists of6

Particulars

Balance

2E!E2

+et AdditionE

=Reduction?

Balance

2E!E

1and !,-0.,!>!,-8 ) !,-0.,!>!,-81and i$prove$ents ,0@00- ) ,0@00-

3lectrification, Po%er and 3nergy

0


16/33

Structures !,2!,2>.. !8,>800 !,0@2,.8@..

Office buildings .,!2,->00 =0--? .,!2,->--

School buildings ,!-,!-.> 0,@.@,->>> .,22@0Hospitals and health centers ,>2>,!!>>0 ) ,>2>,!!>>0

"ar!8-8 !,!88,->..Office e;uip$ent 8,2,>82!0 8@,2!0@ ,8@!,-.!!

Furniture and fi:tures .,-8,!-2- !>,@!.0 -,80,>0-

'/ 3;uip$ent and Soft%are ,82,!0@! .-,8>2! ,2@,--@01ibrary Boo8 ,>00 82,8!>8

"achineries -,!80,00000 ) -,!80,00000

*o$$unication 3;uip$ent ,2@,0!!0 !8,.00 @2,@88!0

*onstruction and Heavy 3;uip$ent -,2@!,80>00 >8,00000 !,>.,80>00"edical, &ental and 1aboratory

3;uip$ent !>,08@2. 2,-0000 !!,>8@2.

"ilitary and Police 3;uip$ent ->8,>@@0> ) ->8,>@@0>

Sports 3;uip$ent !2,>2>00 ) !2,>2>00/echnical and Scientific 3;uip$ent >,->8@- ) >,->8@-

Other "achineries and 3;uip$ent !,..,>0->0 >8,82@>0 !,-82,.00"otor 9ehicles -,-!,!> ) -,-!,!>

Other Property, Plant and 3;uip$ent >,00.,8882 ,-,82000 -,.@-,0>82

*'P, Agency Assets ) =!2,0>,0!!02? !2,0>,0!!02*'P, Roads, High%ays and Bridges ) ) )

*'P, 'rrigation, *anals and 1aterals ) =88!,!>000? 88!,!>000

*'P, Other Public 'nfrastructures ) ) )

/otal *ost 2-088,2..!0 -,-!@,!!>@8 @!,--,@8!2

1ess6 Accu$ulated &epreciation !@,@@-,>!8.0 -,!,20.!! 2.,88,-!!

Net 'oo6 !alue 122(889(979"82 ::(:19(7:7"9; 79


17/33

&ue to B'R

&ue to S'S

&ue to PA)'B'&ue to PH'1H3A1/H

&ue to Other +As

&ue to 1s&ue to Other Funds

Perfor$anceEBiddersEBail Bonds Payable

/a: Refunds PayableOther Payables

.2.,.8!@>

,2>!

@,>@.2.000

,0.-.-

!,.@,!.!-,>-,00280

20@,.@.>

!8,..0> .,0!,!8

>,2-,@>2@.

,82,>2808

,0@@0

>,@.2.000

,0.-.-

!,.@2,8822>2,2>,.!>8

@8,.2@.

>@,--8. ,22-,>>>02

8,0!,@-.

0 1ong)ter$ 1iabilities 1271 1277

1oans Payable ) &o$estic

Refinanced loan %ith 1and Ban< by BP'

For the construction of the 3P Building

.8,888,88888

!,888,88888

-.,000,00000

-2,-@,-----

22,@.,00000

@,---,-----

/he $unicipal govern$ent of Binalonan, Pangasinan availed of a loan on

+ove$ber 0, 200 %ith the Ban< of Philippine 'slands =BP'? and guaranteed by the1 uarantee *orporation =1*? /he credit facilities consisted of a P2. $illion

$ediu$ ter$ loan and a P-. $illion long ter$ loan 't bears an interest rate of P&S/ R2

plus 2.L on any ter$ band

/he P2. $illion loan %as used to fully repay the outstanding loan %ith the 1and

Ban< of the Philippines =1BP? and is payable in four =-? years and si: =>? $onths =the

re$aining ter$ of 1BP loan? On the other hand, the P-. $illion loan is payable inseven years, %ith t%o)year grace period

&eferred *redits

*o$position

1271 1277&eferred Real Property /a: 'nco$e

&eferred Special 3ducation /a: 'nco$e

Other &eferred *redits

!,>0.8

!,>0.8

2,.,8!.8@

2,.@,0->2.

2,2,@@-!@

2,2,@@-!@

-,@,@82.8

0,2>.,@!>

Other &eferred *redits account is $ade up of the follo%ing6

1271 1277

ood%ill =+e% Public "ar2.,200028@,!!@

2@.,20002,@0,0@-8

2


18/33

Reservation Fee

/%o =2? "onths Advance Rental

One =? "onth &eposit

.,00000

8>@,800

!,0>.02,.,8!.8@

.,00000

8-,-00

.->,@>>00 -,@,@82.8

2 overn$ent 3;uity

1271 1277

overn$ent 3;uity, Beginning Balance @@,-0!,!8@!> -,82@,2-!2

AddE&educt6 Retained Operating Surplus

*urrent Operations -,@0.,>->2 2-,!2-,>0-0

Prior 7ears AdDust$ents =!!00? @2,>@-

/otal 2-,!08,>.@8 @@,2->,-@8-@

AddE&educt6 /ransfer fro$ =to?

/ransfer of PP3Eco$pleted proDects fro$/rust

FundEeneral FundEOther Fund @,!0>,2>> 2,@!,>..@

/ransfer of PP3Eco$pleted proDects toeneral

FundEOther Fund =@,!0>,2>>? =2,@!,>..@?

/ransfer of co$pleted ProDects toRegistry6

Public 'nfrastructures =,--,0@28!? =,.,!0>>? Reforestation ProDects

/ransfer of PP3Eco$pleted proDects fro$

Other 1s

/ransfer of PP3Eco$pleted proDects toOther 1s

Other AdDust$ents N -,>8@,00000 ,@08,@-8

Other transactions under /rust Fund =.@,-00.2? )

overn$ent 3;uity, 3nding Balance 2,@-,>->! @@,-0!,!8@!>

Other adDust$ents a$ounting to P-,>8@,00000 under /rust Fund as sho%n in its

State$ent of *hanges in overn$ent 3;uity consist of the follo%ing6

Receipt of the follo%ing funds6

Fro$ P&AF of *ongress%o$an *ar$en Ji$iG S *oDuangco for thefollo%ing proDects6

!


19/33

P!,.00,00000 C *o$pletion of 3P Building

P >!@,00000 C Brgy &u$ayat #ater Syste$P .0,00000 C Brgy San Felipe *entral #ater Syste$

P-,8@,00000

Fro$ P&AF of Senator Francis 3scudero6

P .00,00000 C for constructionErehabilitation of Public "ar80

,82,2.!.,>!>,@200-

>>,-@8,!2-.

0.,08,2.!>@

8,0--,@.!@2

2,.,0.!>.

2,>0,2.2282,-@.,.2@8!

>8,0@-,.@>>>

0!,@2,!8>!-

'nternal Revenue Allot$ent of P>.,0>0,!.00 is classified under Other 'nco$e

+ote - 3:penditure accounts

3:penditure accounts are as follo%s6 1271 1277

Personal Services

"aintenance and Other Operating 3:pensesFinancial 3:penses

-.,0-8,8-00

-,.>@,20@. !,..-,..-2

@0,2,>20

-0,@@,-0.

!>,>0,0.0! ,@@8,2>>>>

@,>-,88-

-


20/33

Part II

Detailed

Findings and e$o++endations


21/33

PAT II

D)TAI*)D FINDINGS AND )COMM)NDATIONS

I" Finan$ial and Co+plian$e Audit

7" The Cash in !ault a$$ount had an outstanding balan$e o& P >7-00?Special 3ducation Fund 808,0--.>

/rust Fund .-2,>@8

Total P >7


22/33

/he "unicipal /reasurer said that she %ill adopt $easures to avoid huge *ash in 9ault

balance and to every e:tent possible cash %ill only be paid to petty cash e:penses

2. Cash ad,an$es granted to ,arious o&&i$ials and e+plo%ees a+ounting to P:9"21

3ere not liuidated at %ear-end 3hi$h is not in a$$ordan$e to COA Cir$ular No" >,0.@02

re$ained unli;uidated as of year)end =See Anne: O?

/he non)li;uidation of the cash advances %ithin the regle$entary period is contrary to*OA *ircular +o @)002 dated February 0, @@, prescribing the rules and regulations on

the grant, use and li;uidation of cash advances "oreover, the 1 %as deprived of using

the funds for other progra$s and activities

Pertinent provisions of the above)cited circular states that6

4.1.1 No cash advance shall be given unless for a legally specific

purpose.

4.1.2 No additional cash advance shall be allowed to any official oremployee unless the previous cash advance given him is first

settled or a proper accounting thereof is made.

4.1.4 Only permanently appointed officials shall be designated as

disbursing officers. Elected officials may be granted a cash

advance only for their traveling expenses.

.! "ll cash advances shall be fully li#uidated at the end of each

year. $he accountable officer shall refund any unexpendedbalance to the cashier%collecting officer who shall issue the

necessary official receipt.&

It is hereb% re$o++ended that in $ase 3here the o&&i$ialsEe+plo%ees 3ere not able to

liuidate i++ediatel% their $ash ad,an$es( the &ollo3ing +easures should be a,ailed o& in

line 3ith the pro,isions o& COA Cir$ular >


23/33

"anage$ent has been adopting $easures to enforce li;uidation of the cash

advancesOther%ise, the a$ount of unli;uidated cash advances shall be deducted fro$ the

salaries of concerned officials and e$ployees

:" Trust *iabilit%-DM5 ?7=8@ in the Trust Fund 'oo6s &or the

unependedEunobligated a+ount on the ui$6 esponse Fund o& *o$al Disaster is6

edu$tion and Manage+ent Fund ?*DMF@ 3as not re$orded 3hi$h not in

$onsonan$e 3ith COA Cir$ular 1271-1" The non-re$ording +a% epose the a+ount to

pa% &or ependitures other than the intended purpose"

Section 22 of RA 02 states that6

=a? /he present *ala$ity Fund appropriated under the annual eneral Appropriations Act

shall henceforth be


24/33

2 All une:pended balance of 4uic< 4RF and the &RR"F)"OO3 shall be

transferred to the Special /rust Fund under the account /rust 1iability)&RR"G

=*ode -!8? in the /rust Fund Boo


25/33

Be re$o++end that the o&&i$ials $on$erned shall render +onthl% reports o&

their transa$tions 3ithin the regle+entar% period set &orth under Se$tion 722 o& PD

7==;"

/he "unicipal Accountant co$$itted to sub$it all vouchersE reports that are

ready for trans$ittal %ithin the prescribed period for sub$ission

II" !A*U) FO MON)/ AUDIT

9" No separate &inan$ial state+ents 3ere prepared pertaining to the Uni,ersit% o& )astern

Pangasinan ?U)P@ $ontrar% to the pro,isions o& Se$tion 72; and 772 o& the Manual o&

the Ne3 Go,ern+ent A$$ounting S%ste+ ?NGAS@( thereb% resulting in the di&&i$ult% o&

+onitoring the operations o& the said operating unit"

Section 0. of the +AS "anual states that 1ocal overn$ent nits shall $aintain

accounts in the eneral Fund for public utilities and other econo$ic enterprises, loans,

interests, bond issues, and other contributions for specific purposes and develop$ent proDectsfunded fro$ the share of the local govern$ent concerned fro$ the internal revenue

collections and develop$ent of national %ealth and such other special accounts %hich $aybe created by la% or ordinance

Section 0 of the sa$e $anual li


26/33

/he proDectsEprogra$s of the "unicipality under the ender and &evelop$ent =A&?

Progra$ %hich %ere not fully i$ple$ented are the follo%ing6

Proe$tsE Progra+s Unepended 'alan$e

Social &evelop$ent Progra$ P )

2 Saranay ti Barangay 200,00000! #o$ens &evelop$ent Progra$ 2-,800

- #o$ens Health *elebration ,>.@2>

. B/1E+S9 =/39? -,00000

> PAP S"3AR 2-,00000

Purchase of "edical 3;uip$ent 2.,00000

8 Supple$ental Feeding 0,00000

Grand Total P ;2;(==9"19

Had the proDectsEprogra$s under ender and &evelop$ent =A&? Progra$ %ere fully

i$ple$ented, the $a:i$u$ benefits for the intended beneficiariesE recipients especially thechildren, youth, %o$en and senior citiens could have been attained

Be reiterate our pre,ious %ear0s re$o++endation that the +anage+ent identi&% the

priorit% progra+s( a$ti,ities and proe$ts to be pro,ided 3ith spe$i&i$ budgetar%

allo$ations under the Gender and De,elop+ent ?GAD@ Plan to ensure their &ull

i+ple+entation &or the bene&it o& the intended bene&i$iariesEre$ipients"

"anage$ent said that they shall endeavor to identify the priority progra$s, activities andproDects to be provided %ith specific budgetary allocations under the ender and

&evelop$ent =A&? Plan

20


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Part III

Status o& I+ple+entation o&

Prior /ear0s Audit

e$o++endations


28/33

PAT III

Status o& I+ple+entation o& Prior /ear0s Audit e$o++endations

Out of the eight reco$$ended $easures e$bodied in the 20 Annual Audit Report, four =-?%ere partially i$ple$ented %hile the re$aining reco$$endations %ere not i$ple$ented by

$anage$ent, to %it6

Audit

Observation

Reco$$endation Ref "anage$ent

Action

Status of

'$ple$entation

Reason for

PartialE+on)

'$ple$entation

/he"unicipality

%as not able to

sub$it theinventory

report of its

Property, Plant

and 3;uip$enttotaling

P>,.>0,-8.

. contrary tothe provisions

of Section 2-

of the "anualon the +e%

overn$ent

Accounting

Syste$="+AS?,

hence, the

accuracy, valueand e:istence

of the account

%ere notascertained

#ereco$$ended

that the

co$$itteecreated to

conduct the

physical

inventoryco$plete the

inventory ta


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Fund had a

year)endbalance

totaling to

P-8,0->0

indicating thatcollections

%ere notdeposited daily

and intact as

re;uired under

Section !2,*hapter ! of

the "anual on

the +e%overn$ent

AccountingSyste$="+AS?,

9olu$e ', thus

e:posinggovern$ent

funds to

possible loss,

$isuse or $isapplication

undeposited

collections %iththe authoried

depository ban


30/33

Syste$

="+AS?,9olu$e '

- +on)setting up

of depreciatione:penses fordepreciable

assets

a$ounting to

P8,00-,@88@resulted to the

understate$ent

of e:penseaccount and

overstate$ent

of Property,Plant and

3;uip$ent

=PP3? account

#e reco$$ended

that the officialsconcerneddeter$ine the

dates of

ac;uisitionEconstr

uction of theundepreciated

Property, Plant

and 3;uip$ent tobe used in the

co$putation of

depreciatione:pense in order

to present fairly

the boo< value ofthe assets in the

financial

state$ents

AAR

20

+ot

'$ple$ented

Only PP3

ac;uiredEconstructedstarting 2002

%ere subDected to

depreciation due

to absence ofrecords prior to

2002

. So$edisburse$ents

%ere paiddespite theabsence of

proper and

co$pletedocu$entationcontrary to

Section -

paragraph > ofPresidential

&ecree +o

--., hencecasting doubts

on the legality

and propriety ofthe accounts

#e reco$$endedthat $anage$ent

sub$it there;uiredsupporting

docu$ents in

order to correct

the deficienciesnoted in the post)

audit of accounts

'n addition alldisburse$ent

vouchers and

payrolls and thecorresponding

supporting

docu$ents beproperly signed

and

acco$plished

1i


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reco$$ended that

pay$ent be $adeonly on

disburse$ent

vouchers and

payrolls %ithco$plete

supportingdocu$ents

> &isburse$ent

vouchers,

payrolls andDournals for the

$onth of

+ove$ber and&ece$ber 20

%ere not yet

sub$itted to*OA for post)

audit, thus

precluding the

Audit /ea$fro$

perfor$ing the

revie% and

evaluation ofthe agencys

transactions

/he Audit /ea$

reco$$ended

that the officialsconcerned sub$it

the +ove$ber

and &ece$ber20 accounts

i$$ediately

1i


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i$ple$entation

for the benefit ofthe intended

beneficiariesE

recipients

8 +o separate

financial

state$ents

pertaining to theniversity of

3astern

Pangasinan=3P? %ere

sub$itted to

*OA office%ithin the

prescribed

period, therebyresulting in the

difficulty of

$onitoring the

operations ofthe said

operating unit

#e reco$$ended

strict co$pliance

%ith the

provisions ofSections 0. and

0 of the

"+AS1i


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Part I!

Annees

01-Binalonan2012 Audit Report

Documents

Transcript of 01-Binalonan2012 Audit Report