10-MunicipalityofAuroraZdS2014 Part2-Observations and Recommendations

7/23/2019 10-MunicipalityofAuroraZdS2014 Part2-Observations and Recommendations

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DETAILS OF FINDINGS AND RECOMMENDATIONS

Favorable Observations

The Municipal Government of Aurora, Zamboanga del Sur is operating four (4)

Economic Enterprises hich are treated as special accounts in the General fund boo!namel"# Mar!et $perations, Slaughterhouse, %ateror!s and Tourism ($peration of Aurora

Mountain &esort) and the motor pool'

As shon in the General und, re*closing Trial +alance for the "ear ended ecember

-., /0.4 income of the four above*mentioned economic enterprises is shon belo#

Business Enterprises Revenue

.' Mar!et 1 Slaughter 2ouse 3,.4,5.'53

/' %ater %or!s $peration 5,44/,363'06

-' Tourism ($peration of Aurora

Mountain &esort).,353,.35'00

Total P 1!"#$!1#%

'

or 78 /0.4, the municipalit" had implemented the folloing infrastructurepro9ects, to it#

Pro'e(t Total Cost

.' &epair:&ehab of &2; &oofing hase < 600,000'00

/' &epair:&ehab of &2; +uilding hase ational 7hild evelopment 7enter /,-00,000'00

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re@uirements common to all cash advances ecept for travels is a certification from the

Accountant that previous cash advances have been li@uidated and accounted for in the

boo!s'

urthermore, Section .'.'. of the same 7ircular provides that#

1.1.1 Payroll Fund for Salaries, Wages, Allowances, Honoraria and OtherSimilar Exense

!he cash ad"ances for ayroll fund shall #e e$ual to the net amount of the

ayroll for the ay eriod.

Additional %ocumentary &e$uirements

o Aro"ed contracts 'for initial ayment(

o Approved Payroll or list of payees indicating their net paymentso Aro"al)authority 'residential directi"e or legislati"e enactment( or legal

#asis to ay any allowance)salaries)wages)fringe #enefits

o Daily time record (DTR) Approved by the supervisor(emphasis supplied)

erusal of the records shos that the disbursement vouchers are onl" supported b" a

list of disbursement vouchers composing the cash advance and at times b" the AccountantBs

Advice'

There are no certification from the Accountant that the previous cash advances

granted to the accountable officer have been li@uidated and accounted for in the boo!s or

T&s been attached in an" of the transactions involved' Moreover, the list of disbursementsattached is not an e@uivalent substitute to the re@uired approved pa"roll or list of pa"ees as

re@uired under the circular'

The failure to attach all of the aforementioned documentar" re@uirements in all of

the cash advances for pa"roll fund is an indication of a ea! internal control in the

disbursement of government funds thus, validit", legalit" and accurac" of the transactionsare doubtful'

Mana.e*ent Co**ent+

7ompl"ing ith the aforementioned documentar" re@uirements is impracticalconsidering the distance of the Municipalit" from the depositor" ban! and theaccompan"ing ris! to the disbursing officer' $ther effect ould be the dela" on the release

of the salaries and ages to the emplo"ees' >onetheless, the aforementioned documentar"

re@uirements are alread" attached together ith the pa"ment of the a"roll'

Management has li!eise re@uested the Candban! of the hilippines to open an

etension office in the Municipalit" or at least an ATM machine' That a", management

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ould be able to compl" ith the documentar" re@uirements set forth under 7$A 7ircular

>o' /0./*00. as the ATM mode ill be used'

Au)itor7s Re'oin)er+

7$A 7ircular /0./*00. so specificall" enumerates the documentar" re@uirementsnecessar" to be attached for cash advances' Therefore, it is imperative for the Management

to compl" ith the regulation considering that the 7ommission is tas!ed to post*audit the

transactions involved'

Re(o**en)ation

The Municipal Accountant should observe strict compliance of the documentar"re@uirements to be attached to the disbursement vouchers before the same shall be

authoriDed for pa"ment'

$% -arious o00i(ials an) e*ploees o0 t/e Muni(ipalit 0aile) to li3ui)ate ti*el t/eir

(as/ a)van(es totalin. P 1!#8$!1$%&9 as o0 #1 De(e*ber $41 (ontrar to t/e

provisions set 0ort/ un)er Se(tion &: o0 PD 18 an) Se(tion 8%1%# o0 COA Cir(ular

:9544$ )ate) 1: Februar 1::9 t/us! overstatin. t/e asset a((ount an) un)erstatin.

t/e relate) e;pen)itures%

7$A 7ircular >o' =5*00/ dated .0 ebruar" .==5 provides, in part, that

*. +i$uidation of cash ad"ances.

*.1 !he accounta#le officer shall li$uidate his cash ad"ance as

follows- x x.

*.1. Official tra"el / within sixty '0( days after return to the

Philiines in the case of foreign tra"el or within thirty'( days after return to his ermanent official station in

the case of local tra"el, as ro"ided for in EO 234 and

5OA 5ircular 6o. 70/3.

Failure of the accounta#le officer to li$uidate his cash

ad"ance within the rescri#ed eriod shall constitute a

"alid cause for the withholding of his salary and the

institution of other sanctions as ro"ided for underaragrahs 7.2 and 7. hereof. - x x.

Also, Section 6= of residential ecree >o' .443 provides that#

6o cash ad"ance shall #e gi"en unless for a legally authori8ed secific urose. A

cash ad"ance shall #e reorted on and li$uidated as soon as the urose for which it

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was gi"en has #een ser"ed. 6o additional cash ad"ance shall #e allowed to any

official or emloyee unless the re"ious cash ad"ance gi"en to him is first settled or

a roer accounting thereof is made. (underscoring ours)

Moreover, the 7ommission on Audit has issued on /6 >ovember /0./ 7ircular >o'

/0./*004 on the sub9ect emand for


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Aging of the Advances to $fficers and Emplo"ees account as of ecember -., /0.4

for all funds, as shon in Anne E, disclosed the folloing#

$f the total balance of .,-3/,.4/'65# 36-,='03 or 4-'.5F ere at least three

"ears past due ..,=/0'00 or 0'66F ere to "ears past due /=.,30-'00 or /.'3F eremore than a "ear past due .4,.0='5/ or ./'.4F ere at least =. da"s but not more than

-3 da"s past due ..,-.4'.0 or ..'=-F ere at least -. da"s to =0 da"s past due and

.-=,00'00 or .0'-/F ere at most -0 da"s past due as of -. ecember /0.4'

Moreover, it as noted in the submitted reports that some cash advances ere

granted to officials and emplo"ees even hen sub9ect personnel have pending unli@uidated

cash advances. The condition still prevails despite the issuance of demand letters toconcerned officials in various batches dated September ./, .5, ?une 4, and ?anuar" /= all in

/0.4, ?une -0 in /0.-, and ecember -., September 4, and ebruar" - all in /0./ hereb"

the last paragraph thereof has eplicitl" stated that o' /0./*00- dated /= $ctober /0./ for granting cash advances toofficials prohibited to receive additional cash advances as eplicitl" stipulated under the

aforementioned Section 6= of residential ecree .443, thus are disalloable in audit'

The failure to li@uidate the cash advances at the end of the "ear or as soon as the

purpose has been served shall sub9ect the accountable officers concerned to the penalt"provisions of Section ./6 of residential ecree >o' .443' Also, the non*li@uidation of cash

//

78 /0.4 78 /0.-


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advances hen no longer needed provides an avenue for the misuse or misappropriation of

the funds hich as granted for a specific purpose'

Re(o**en)ation+

Management should#

.' emand the concerned officials and emplo"ees ith unli@uidated cashadvances indicated in the list to effect immediate settlement of cash advances,

otherise, the necessar" sanction for its settlement as provided for in

paragraph ='. of 7$A 7ircular >o' /0./*004 dated /6 >ovember /0./ shall

be enforced

/' &efrain from granting additional cash advances to Accountable $fficer ith

previous unli@uidated cash advances and

-' Ensure the compliance ith the documentar" re@uirements, more so ith

regards to the 7ertification of the Accountant concerning the previousli@uidation of cash advances'

Mana.e*ent Co**ent+

Management ill compl" ith the documentar" re@uirements' %ith regards to those

ho have outstanding cash advances, arrangements have alread" made to ma!e monthl"

deductions on emplo"eesB pa"rolls until the cash advance has been settled'

B% RE-EN@E

#% Revenue Colle(tors ere )elae) in t/e turnover o0 t/eir (olle(tions to t/e

Li3ui)atin. O00i(ers 0ro* #" to :1 )as in violation o0 Se(tion $: o0 t/e NGAS! t/us

e;posin. t/e .overn*ent 0un)s to ris2 o0 loss t/rou./ 0or(e *a'eure or *isuse%

Section /= of >GAS also provides#

ec. !". Reporting for #ollections and Deposits. ?

5ollectors)tellers shall issue a receit to ac;nowledge collections

made. !he receit may#e in the form of re/num#ered Official&eceits, or cash tic;ets and the li;e. At the close of each #usiness

day, these collectors)tellers shall accomlish the &eort of

5ollections and %eosits '&5%( in four coies. !he original andtwo coies, together with the dulicates of the official receits

issued, shall #e su#mitted to the treasurer)cashier to whom the cash

collected shall #e turned o"er. !he fourth coy of the &5% shall #e

retained #y the collector)teller concerned. =arangay !reasurersdeuti8ed to collect taxes imosed #y ro"inces, cities and

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municialities shall follow the same rocedures in turning o"er

their collections to the treasurer)cashier concerned.

@n the case of collectors assigned to the field, where tra"el time from

their laces of assignment to the !reasurers Office is more than one

day, turno"er of collections shall #e made at least once a wee; or assoon as the collections reach P*,..>

Ierification of &eport of 7ollections for the period of ?anuar" . to March -., /0.4as made'


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The practice of dela"ed turnover of collections manifests ea! internal control, thus

eposing funds to the ris! of misuse or loss through force ma9eure'

Mana.e*ent Co**ent+

7onsidering the actual situation prevailing in the CG;, it as made an office polic"to remit:turn*over collections tice*a*ee! for collectors assigned in the treasur" office and

once a ee! for collectors assigned in the Mar!et, Slaughterhouse and Aurora Mountain

&esort' >evertheless, collectors can remit their collections an"time hen his:heraccountable forms are alread" consumed'

Moreover, ith the


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o' -, series of /0./ dated . ebruar" /0./ hasenumerated the basic components of a 2uman &esources lan as follos#

#. H& Banagement Systems and Programs

#.1. H& Plan with the following #asic comonents

Organi8ational Profile

o Agency Bandate, Cision, Bission and Strategic Doals

o Organi8ational 5hart)Functional 5hart)Personnel 5hart

o 9o# %escrition of all ositions

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H& Systems

o &ecruitment)Promotion

ualification Standards 'S(

Berit Promotion)Selection Plan or merit System 'For

5losed/5areer( Personnel Selection =oard

Succession Planning

o &etention

Performance Banagement System

!raining and %e"eloment

5areer Pathing Program

Emloyee Welfare

o &ewards and &ecognition

Program on Awards and @ncenti"es for Ser"ice

Excellence 'P&A@SE(o &etirement

Pre/retirement Program

o Emloyee &elations

Drie"ance Bachinery

o Emloyee Health and Wellness Program

o Emloyee %isciline

5ommittee on %ecorum and @n"estigation '5O%@(

Human resources @nformation System 'H&@S(

An 2& lan is aimed to further the management of human resources toards

productive contributions to the vision and mission of the agenc" and to sharpen therecruitment, promotion, retention, personnel relations, reards and incentives as ell as

succession planning and retirement practices and policies beneficial to both individual

emplo"ees and to the agenc" as a hole' The plan ould thus 9ustif" the necessit" of hiringadditional personnel of the agenc" as ell as meeting the optimum efficienc" of its human

resources hile operating ithin the limitations set forth under the la'


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$ne of the most essential part in a ?ob $rder 7ontract is the definition of the uties

and &esponsibilities of the contracting parties' This is the reason h" an accomplishment

report is made a necessar" re@uirement in order to ascertain that the specific duties andresponsibilities are met and achieved and it serves as a gauge if it ould be necessar" to

rene specific contracts'

&evie of the ?ob $rder contracts disclosed that the documents bear no specific

duties and responsibilities but merel" state that KPerform such other duties and

resonsi#ilities as may#e assigned #y cometent authorities.>>o other documents eresubmitted nor attached to the pa"rolls to indicate the specific duties and responsibilities

given b" other competent authorities' Such case has been made more compelling as the CG;

has eceeded its S Cimitation during the "ear hile the emplo"ees contracted and reneed

on a regular basis ere mostl" charged to the repairs and maintenance accounts under par!s,plaDas and monuments (63/), irrigation, canals and laterals (633) or other public infra (60)

or under $ther M$$E (==)'

This finding is alread" a reiteration of a previous "earBs observation made b" the7ommission but has still remained not complied ith'

Re(o**en)ation+

Management should#

.' o' -, series of /0./ and

/' Ensure that duties and responsibilities are specificall" stipulated in all the

contract of services:M$A or ?ob $rder contracts' Specific instructions givenb" those competent authorities to hich specific emplo"ees are detailed ith

should be li!eise attached to the contracts'

Mana.e*ent Co**ent+

The 2& lan as not made as the 7S7 has not "et come up ith the templates of the

same' This "ear, the preparation of the 2& lan is epected to push through as a conference

about the matter ill be made in March'

D% PAMENT OF ,ONORARIA+

"% ,onoraria to *e*bers o0 t/e Bi)s an) Aar)s Co**ittee an) t/e Te(/ni(al

or2in. Group a*ountin. to P $48!844%44 ere *a)e )espite t/e la(2 o0

pres(ribe) )o(u*entar re3uire*ents as provi)e) 0or un)er COA Cir(ular No

$41$5441 )ate) 1 6une $41$ an) t/e 0un)s ere sour(e) 0ro* t/e re.ular

appropriations un)er t/e General Fun) (ontrar to DBM Bu).et Cir(ular No

$4495# )ate) $: Nove*ber $449 a*en)in. DBM Bu).et Cir(ular No% $4458A%

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o' /005*- dated /= >ovember /005

provides for the source of pa"ment of honoraria and overtime pa" for personnel involved ingovernment procurement are as follos#

.1 !he amount necessary for ayment of honoraria and o"ertime ay authori8edunder =5 6o. 23/*A dated Octo#er :, 2* shall #e sourced from thefollowing

.1.1 5ollections from successfully comleted rocurement roects limited,howe"er, to acti"ities rior to awarding of contracts to winning

#idders

Proceeds from sale of #id documentsG

Fees from contractor)sulier registryG

Fees charged for coies of minutes of #id oenings, =A5

resolutions and other =A5 documentsG Protest feesG and

Proceeds from #id security forfeiture.

xxx

o' /004*3A or the Guidelines on the Grant of 2onoraria toGovernment ersonnel


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same shall form art of their cororate or local go"ernment funds,

resecti"ely.

%hile the 7hairs and members of the +A7, T%G and the Secretariat are alloed to

receive honoraria for their participation in procurement activities, the" are nonetheless

barred from receiving overtime pa" for procurement*related services rendered in ecess ofofficial or!ing hours, pursuant to otice of aard to the inning bidder of procurement activit" being claimed

7ertification that the procurement involves competitive bidding

Attendance Sheet listing names of attendees to the +A7 meeting

erusal of the pa"ment of honorarium to the +A7, T%G and the Secretariat

disclosed that the pa"ments amounting to /03,300'00 ere sourced out from the General

und and 9ournaliDed under the $ther M$$E (==) or $ther a"ables (4-=) accounts'

o cop" of the declaration of savings from the

/0.4 budgets of the Sangguniang +a"an has li!eise been attached to the pa"rolls to 9ustif"

their charges to the General und' Moreover, the use of $ther M$$E or $ther a"ablesaccount is not 9ustified as it has to be 2onoraria (5/0) account under the ersonnel Services'

As pointed out in a prior Audit $bservation Memorandum, the local government has

alread" eceeded its S Cimitation in /0.4'

>oted li!eise in audit is the grant of overtime pa" to Mr' Covenel 7' $ral,

Government Service $fficer in Ma" /0.4 ho is a member of the +A7 Secretariat and hasbeen claiming honorarium for his role' Among those tas!s performed are a) acilitate CG;

$fficial Transaction canvass and spare parts and materials b) repare supporting docs for

+idding of CG; ro9ect .0hrs and c) preparation of voucher for inning bidders, all of

hich are procurement*related services'

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The deficiencies and errors committed precluded the Auditor from determining the

legalit" of the claims of those involved in the government procurement vis*L*vis those

successfull" completed procurement pro9ects as basis of the claims' These deficienciesarrant the suspension of transactions involved'

Re(o**en)ation+

.' 7ollection of amounts necessar" for the pa"ment of the honoraria and overtime pa"

sourced from those enumerated under item -'. should be accounted for as trust

receipts

/' &eclassif" all collections from successfull" completed procurement pro9ects and the

pa"ment of the aforementioned honoraria to the Trust und accounts

-' The Municipal Accountant should refrain from charging the +A7 2onoraria and

overtime pa" from the General und unless supported b" a declaration of savingsfrom the Sangguniang +a"an as emphasiDed under -'.'4 of +7 >o' /005*-

4' &efrain from granting overtime pa" to an" of the government personnel involved in

government procurement, ho have claimed honoraria, for an" procurement H

related services rendered be"ond office hours pursuant to 3'.0 of +7 >o' /004*3A

and

3' $bserve strict compliance ith the documentar" re@uirements enumerated in 3'5'. of

7$A 7ircular >o' /0./*00.'

Mana.e*ent Co**ent+

The re@uired documents stated in the A$M are in the possession of the +A7' The

Accounting $ffice has not been furnished ith copies thereof despite the re@uests that it be

attached to the vouchers' &est assured that this "ear Management ill be compl"ing ith thedocumentar" re@uirements'

E% PROC@REMENT PROCESS

9% Several (lai*s in C $41 totallin. P!":"!8"&%&&ere pai) b t/e LG@ )espite t/e

(overin. )isburse*ent vou(/ers o' .443, otherise

!non as the State Audit 7ode of the hilippines, states#

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o evidence of invitation of three observers in all stages of the

procurement process

-' >o results of Eligibilit" 7hec!:Screening

4' >o documents enumerated under Section /-'., &evised o results of Eligibilit" 7hec!:Screening and

-' >o documents enumerated under Section /-'., &evised o printout cop" of advertisement posted in the hilGES

-' >o results of Eligibilit" 7hec!:Screening

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4' >o documents enumerated under Section /-'., &evised o evidence of invitation of three observers in all stages of theprocurement process

)% Pa*ent to Arti0e; Co*puter Center 0or pur(/ase o0 E3uip*ent use 0or t/e

Co**unit5Base) Monitorin. Sste* o results of Eligibilit" 7hec!:Screening

-' >o documents enumerated under Section /-'., &evised


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Section 3 of 7$A 7ircular >o' /0./*00/, provides#

The /0.4 Annual +udget of the Municipalit" for C&&M amounted to4,=/6,6/'=6' $ur verification of the sources and utiliDation of the fund, revealed the

folloing#

.' The Monthl" &eport on Sources and ;tiliDation of &&M as not submittedb" the Municipal Accountant and the Cocal isaster &is! &eduction and

Management $fficer (C&&M$) to the Audit Team and

/' The Cocal disaster &is! &eduction and Management und


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Re(o**en)ation+

The Accountant shall strictl" adhere to the pertinent provisions of 7$A >o' /0./*00/ on the accounting, reporting and utiliDation of C&&M'

Specificall", management should#

.' &e@uire the accountant to prepare the monthl" &eport on the &eceipt and

;tiliDation of isaster &is! &eduction and Management (&&M) und andsubmit to the 7$A Auditor thru the Cocal isaster &is! &eduction and

Management $fficer (C&&M$) ever" .3thda" of the month and

/' Submit immediatel" the Cocal isaster &is! &eduction and Management


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Coan amortiDation for the construction repair or refinishing of administrative office

such as municipal hall is therefore covered b" the prohibition on the use of the /0F

evelopment und' EA) and the epartment of

+udget and Management (+M) states#


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of their total #udgets. !he comutation and utili8ation shall #e

imlemented in accordance with secific guidelines ro"ided

therein.>

Ierification disclosed that the approved Annual +udget for 78 /0.4 of CG;*Aurora

has appropriated onl" /00,000'00 for GA programs:pro9ects:activities' Ci!eise, thereas no GA lan and budget prepared for 78 /0.4' The +udget $fficer informed the Audit

Team that there ere number of GA related activities incorporated in the

budget:appropriations of the $ffice of the 7it" Ma"or, &ural 2ealth ;nit and MS%$'2oever, to date, no annual GA accomplishment report for 78 /0.4 as submitted to our

$ffice'

The absence of the GA lan and +udget and the corresponding Accomplishment&eport left the Auditor ithout an" basis in determining hether the re@uired allocation of

3F for GA pro9ects:programs:act has been complied and precluded the Auditor from

validating the implementation of the programs and pro9ects funded from GA funds'

This finding is a reiteration of prior "earBs audit observation as contained in the

Annual Audit &eport for the calendar "ear ended ecember -., /0.-'

Re(o**en)ation+

Management should appropriate at least five percent (3F) of the total budget for GA

programs:activities:pro9ects, prepare the re@uired Annual GA lan and +udget as ell as

the Annual GA Accomplishment &eport pursuant to Section /'- of ?oint 7ircular >o'

/0./*0.

Mana.e*ent Co**ent+

or the /0.4 GA, the GA lan made as onl" for the MS%$ lin!ing ith the

AgricultureBs $ffice for the related activities'

As a prospective measure thereafter, the Municipal Ma"or has alread" convened the

GA Technical %or!ing Group to collect data from all offices and to formulate the /0.3

GA lan' +" end of ebruar", Management ill be submitting the /0.3 GA lan as ell

as the GA Annual Accomplishment &eport'

I% EN-IROMENTAL COMPLIANCE A@DIT

11% T/e pro.ra*s on soli) aste *ana.e*ent ere not i*ple*ente) in violation o0 t/e

provisions o0 Republi( A(t :44#! /i(/ resulte) to t/e 0ailure in a(/ievin. t/e

purposes 0or /i(/ t/e la as ena(te) upon%

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Section .0 of the &epublic Act =00-, otherise !non as the Ecological Solid %aste

Management Act states that the CG;s shall be primaril" responsible for the implementation

and enforcement of the provisions of this Act ithin their respective 9urisdictions'

$n the other hand, ecerpts from Section ./ of such Act, states that#

ovember /0.4 as received onl" on /= ecember /0.4'

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7ompliant to the conditional approval, the CG; shall revise:update the S%M in

accordance ith the annotated outline issued b" the >S%M7 and shall be submitted to the

7ommission not later than .3 March /0.3 as re@uired' ;pon its final approval b" >S%M7,the S%M ill be implemented accordingl"'

6% PERSONAL SER-ICES LIMITATIONS

1$% T/e Personal Servi(es Bu).et /as e;(ee)e) b P !:$:!49:%#9 t/e 8? li*itation

set 0ort/ un)er Se( #$8


23/35

'd( Payment of &etirement Dratuity and !erminal +ea"e =enefits of emloyees.


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Re(o**en)ation+

Management should be mindful of the S Cimitation set forth b" la b" prioritiDingependitures ithin the S component and ensure that income targets are met or eceeded in

order to have a bigger income base for purposes of S 7omputation'

% PAMENT OF O-ERTIME PA

1#% Several ,ea)s o0 O00i(es /o are not entitle) to overti*e pa (lai*e) pa*ent 0or

overti*e servi(es in (ontravention to Se(tion $&! -olu*e I o0 t/e Govern*ent

A((ountin. Au)itin. Manual an) Se(tion %4 o0 DBM Bu).et Cir(ular No% 14

)ate) $: Mar(/ 1::"%

Section 4'0 of +M +udget 7ircular >o' .0 dated /= March .== enumerates the

eempted government personnel from claim of overtime pa" as follos#

xxx

3.1.: Positions of e$ui"alent category as those a#o"e/mentioned in State

ni"ersities and 5olleges 'S5s(, +ocal Do"ernment nits '+Ds( and in

Do"ernment/owned and)or 5ontrolled 5ororations 'DO55s( and

Do"ernment Financial @nstitutions 'DF@s(G

3.1.4 @ncum#ents of intermediate ositions which ha"e #een allowed and created

in/#etween the a#o"e enumerated ositions in the existing organi8ational

structure)staffing attern of go"ernment agencies, S5s, +Ds, DO55s and

[email protected] Electi"e officialsG and

3.1.1 Other aointi"e officials whose e$ui"alent ran; is higher than a chief of

di"ision. (underscoring supplied)

aragraphs / and - of Section /64 of GAAM Iolume < have provided for therationale behind the eclusion of government personnel enumerated under 4'.'6 and 4'.'=,

to it#

Section 243. Officials and emloyees not entitled to o"ertime ay. !he ayment of

o"ertime ser"ices contemlated herein shall not aly to officials occuyingositions enumerated hereunder

xxx

Additionally, since intermediate ositions ha"e #een allowed and created in

#etween the a#o"e enumerated ositions in the existing organi8ationalstructure)staffing attern of go"ernment agencies, go"ernment/owned and)or

controlled cororations, state uni"ersities and colleges and local go"ernment units,

4.


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and inasmuch as these ositions in"ol"e coordinati"e and integrati"e functions and

in some cases incum#ents of these ositions exercise general suer"ision o"er line

di"isions and units, incum#ent of said ositions are li;ewise excluded from recei"ingo"ertime comensation.

Electi"e officials are also excluded from recei"ing meal allowance and otherforms of comensation since they do not ha"e fixed hours of ser"ice.(;nderscoring

supplied)

Audit of the disbursement vouchers involving pa"ment of overtime servicesdisclosed that some of the epartment 2eads have claimed overtime pa"ments despite the

clear eclusions of the concerned government officials from the same' Among those ho

had claimed are as follos#

>ame esignationTotal overtime pa"

claimed

Maria Courdes ' So"*open Municipal Assessor 34,3=0'=6Ma' Milagros 7' Tigue Municipal Accountant /6,.='36

7ristita ' CopeDormer Municipal +udget

$fficer/0,-03'56

Antolin T' uinco Municipal +udget $fficer .-,/.6'/-

Total P 11"!$&%89

2eads of $ffices, being supervisor" in nature are ecluded from the claim of

overtime pa"'


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!he A@& and other suorting documents shall #e forwarded to the 5hief

Accountant for the rearation of the %C and recording of deli"eries in the

aroriate ledger cards.

Sections ./4 and ./3 of the same Manual further provides that#

Sec. 123. @n"entory of Sulies or Proerty.* !he local chief executi"e shallre$uire eriodic hysical in"entory of sulies or roerty. Physical count of

in"entory items #y tye shall #e conducted semestrally and reorted in the

&eort of the Physical 5ount of @n"entories '&P5@(. !his shall #e su#mittedto the Auditor concerned not later than 9uly 1 and 9anuary 1 of each year

for the first and second semesters, resecti"ely.

Physical count of roerty, lant, and e$uiment #y tye shall #e

made annually and reorted on the &eort on the Physical 5ount of

Proerty, Plant and E$uiment '&P5PPE(. !his shall #e su#mitted to the

Auditor concerned not later than 9anuary 1 of each year.

Sec. 12*. %isosal of Sulies or Proerty. / %isosal rocedures shall #e in

accordance with alica#le rules and regulations on suly and roertymanagement in local go"ernment units. !he Waste Baterials &eort 'WB&(

and the @n"entory and @nsection &eort of nser"icea#le Proerty '@@&P(

shall #e used.

As of -. ecember /0.4, the total net propert", plant and e@uipment of the

Municipalit" per accounting records shoed a balance of /./,66.,4-6'/.'


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Iarious accounts ere li!eise observed to have no corresponding Accumulated

epreciation accounts as follos#

urthermore, it as also determined in the &7E that the various unserviceable

items declared in the inventor" list but ere still !ept ithin its respective account

classifications instead to the $ther Assets Account (/=0)' Such non*reclassification has

bloated the E accounts and the non*disposal thereof has put at ris! the CG; to lose thesalvage value had the propert" been properl" disposed of'

%ith regards to the


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-' The Municipal Accountant shall provide depreciation on all depreciable

assets and ensure the reconciliation and update of the aforementioned

dormant accounts and

4' The Municipal Treasurer:ropert" officer prepare the


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communicated to management for corrective measures' The prompt submission of contracts

and all supporting documents ould allo the timel" revie of the contracts in terms of

compliance ith re@uirements of applicable las, rules and regulations, completeness ofdocumentar" re@uirements and initial evaluation of the contractual covenants to ensure that

the" are not disadvantageous to the government'

Re(o**en)ation+

Management shall submit copies of contracts together ith all the supportingdocuments and re@uest for 7$A inspection for deliveries of goods purchased and pro9ects

underta!en ithin the prescribed period or immediatel" upon completion of the pro9ects,

pursuant to 7$A 7ircular >o' /00=*00.'

Mana.e*ent Co**ent+

Management ill submit the contracts before the month of ebruar" /0.3 ends'

1"% Disburse*ent vou(/ers an) O00i(ial re(eipts 0or t/e t/ree 0un)s ere not

(o*pletel sub*itte) to t/e O00i(e o0 t/e Au)itor 0or au)it as o0 Februar $#! $418

in violation o0 COA Cir(ular No% :8544" an) Se(tions 144 o0 PD 18! t/us

pre(lu)in. t/e Au)itor 0ro* establis/in. t/eir propriet! a((ura( an) reliabilit%

&eiterated hereunder are the rules and regulations pertaining to the submission of

vouchers and documents to the $ffice of the Auditor#

Section of 7$A 7ircular >o' =3*00 dated Ma" .6, .==3 states the folloing

duties and responsibilities of agenc" officials#


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KS=B@SS@O6 OF PAPE&S &E+A!@CE !O DOCE&6BE6! O=+@DA!@O6S.


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S$* .00*.4.0-3, 04=, 05/

%e further noted that the $ffice of the Municipal Accountant is ver" much dela"edin submitting vouchers and official receipts to the $ffice of the Auditor' As of the date of the

eit conference, the vouchers ere not completel" submitted to the office of the Audit for

audit' The SE and T transactions submitted for the months covering from ?ul" toSeptember /0.4 ere onl" partiall" made'

The continued practice of the CG; of not submitting paid transactions ithin theprescribed period hinders the revie and verification of the financial transactions at the most

proimate period to the date of incurrence here errors can be immediatel" corrected'

This observation is a reiteration of prior "earBs (78 /0.-) AA& findings andrecommendation'

Mana.e*ent Co**ent+

The $ffice of the Municipal Accountant has been undermanned for the past "ears

ith onl" four personnel, including the Municipal Accountant, ma!ing the financialstatements for the municipalit" and the 44 baranga"s' Submission of the original vouchers

ill be made onl" after the vouchers are verified ith the financial statements'

art of the dela" is li!eise attributed to the late submission of the vouchers from

the $ffice of the Municipal Treasurer' Iouchers for >ovember and ecember ere onl"

received b" the Accounting office in ebruar"' or this "ear, hoever, the to offices ill

do their best to effect the earl" submission of the documents and reports'

Au)itor7s Re'oin)er+

Cac! of manpoer should not be a reason for the $ffice of the Municipal

AccountantBs failure to submit timel" the re@uired accounts' pro'e(ts>a(tivities an)

t/e *ont/l *onitorin. report to t/e Co**ission on Au)it an) provi)e

4=


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noti0i(ation to its (onstituents an) to t/e publi( in .eneral o0 its on.oin. pro'e(ts! in

violation o0 COA Cir(ular No% $41#544 )ate) 6anuar #4! $41#%

7$A 7ircular >o' /0.-*004, provides#

&evie of the calendar "ear /0.4 Annual


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the Municipalit", e noted that the pro9ect signboard of concreting of 7ampo


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As o0 6anuar

41! $41De(e*ber $41 De(e*ber $41 $41

>otice of

Suspensions /,/4,54/'/= * /,.3,.45'/= =0,3=3'00

>otice ofisalloance * * * *

>otice of

7harge* * * *

Total P $!$"!9$%$: * P $!18"!19%$: P :4!8:8%44

>otices of Suspension:s, isalloance:s and 7harge:s issued prior to the effectivel"of the ne &ules and &egulations on Settlement of Accounts (7$A 7ircular >o' /00=*00

dated September .3, /00=) are not reflected in the status of balances but are still deemed

disalloance:charges hich shall continue to be enforced in accordance ith Sec' /6 of the

above cited circular'

Documents

10-MunicipalityofAuroraZdS2014 Part2-Observations and Recommendations