01-municipality of bongao08 audit report
TRANSCRIPT
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Republic of the PhilippinesCOMMISSION ON AUDIT
Commonwealth Avenue, Quezon City
ANNUAL AUDIT REPORTON THE
MUNICIPALITY OF BONGAOProvince of Tawi-Tawi
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For the Year Ended December 31, 2008
May 13, 2009
HON. ALBERT T. QUE
Municipal Mayor
Municipality of Bongao
Dear Mayor Que:
Pursuant to Section 43 of Presidential Decree No. 1445, otherwise known as theGovernment Auditing Code of the Philippines, we are pleased to transmit the Annual
Audit Report on the accounts and operations of the Municipality of Bongao for theCalendar Year ended December 31, 2008.
The audit findings together with the corresponding recommendations are
discussed in detail in the report. We request that the recommendations be immediatelyimplemented and we will appreciate being informed of the action/s taken thereon within
one (1) month from receipt hereof.
We acknowledge the cooperation extended to our Auditor by the HonorableMayor and his Staff.
Very truly yours,
y of the Chairman:
KHEM N. INOK
Director IVRegional Director
Republic of the Philippines
COMMISSION ON AUDITAutonomous Region in Muslim MindanaoOFFICE OF THE REGIONAL DIRECTOR
ARMM Compound, Cotabato CityTel. # 421-7738 loc 134 Fax # 421-1233
E-mail:[email protected]
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Copy Furnished:
1. The President
Thru: The Regional SecretaryDepartment of Interior and Local Government
Autonomous Region in Muslim Mindanao
ORC Compound, Cotabato City2. The Regional Director
Bureau of Local Govt. Finance
Regional Office No. IX
Zamboanga City
3. The Regional Director
Department of Budget and Management
Regional Office No. IXZamboanga City
4. The Honorable Governor
Province of Tawi-Tawi
5. The Presiding Officer and Sangguniang Bayan Members
Thru: The SB Secretary
Municipality of Bongao
Province of Tawi-Tawi
6. File The Regional Director
Commission on Audit
Autonomous Region in Muslim Mindanao
Cotabato City
7. File The Acting Supervising Auditor
Provinces of Tawi-Tawi & Basilan
COA-ARMM
8. File Audit Team Leader
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May 11, 2009
ATTY. KHEM N. INOK
Regional Director
Commission on AuditAutonomous Region in Muslim Mindanao
Cotabato City
Sir:
In compliance with Section 2, Article IX-D of the Philippine Constitution and
pertinent sections of Presidential Decree No. 1445, we conducted a Financial andCompliance Audit on the accounts and operations of the Bongao Municipal Government,
Tawi-Tawi, for the year ended December 31, 2008.
The Audit was conducted to ascertain the propriety of financial transactions and
compliance of the agency to prescribed rules and regulations. It was also made to
ascertain the accuracy of financial records and reports, as well as the fairness of the
presentation of the financial statements.
Our report consists of four parts: Part I Audited Financial Statements, Part II
Detailed Findings and Recommendations, Part III Status of Implementation of PriorYears Recommendations, and Part IV Annexes, which were all discussed with
concerned management officials and staff.
We rendered a qualified opinion on the fairness of presentation of financial
statements, as of December 31, 2008, for reasons as stated in the audit certificate.
Our audit was conducted in accordance with generally accepted state auditing
standards and we believe that it provides reasonable bases for the results of audit.
Very truly yours,
NONA A. IMLAN
State Auditor V
Acting Supervising Auditor
Republic of the Philippines
COMMISSION ON AUDITAutonomous Region in Muslim Mindanao
OFFICE OF THE SUPERVISING AUDITORARMM Compound, Cotabato City
Tel. # 421-7738 loc 134 Fax # 421-1233E-mail:[email protected]
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OFFICE OF THE TEAM LEADERMunicipality of Bongao
April 21, 2009
NONA A. IMLAN
State Auditor V/Supervising Auditor
Provinces of Tawi-Tawi and Basilan
Commission on Audit - ARMM
ARMM Complex, Cotabato City
Madam:
In compliance with Section 2, Article IX-D of the Philippines Constitution and pertinent sections
of Presidential Decree No. 1445, we conducted a financial and compliance audit on the accounts and
operations of the Municipal Government of Bongao, Tawi-Tawi for the year ended December 31, 2008.
The audit was conducted to ascertain the propriety of financial transactions and compliance of the
agency with prescribed rules and regulations. It was also made to ascertain the accuracy of the financialrecords and reports, as well as the fairness of the presentation of the financial statements.
Our report consists of four parts: Part I Audited Financial Statements, Part II Detailed
Findings and Recommendations, Part III Status of Implementation of Prior Years Recommendations,and Part IV Annexes, which were all discussed with concerned management officials during the exit
conference held on April 20, 2009.
There is reasonable assurance that the financial statements are free of material misstatement/s and
were prepared in accordance with applicable laws, rules and regulations and in conformity with generally
accepted state accounting principles. However, we emphasize that the LGU failed to conduct physical
inventory of its property, plant and equipment with book value of P131,941,783.14 and did not provide
depreciation on its depreciable PPEs totalingP28,417,040.35.
Our Audit was conducted in accordance with generally accepted state auditing standards and we
believe that it provides reasonable basis for the results of the audit.
Very truly yours,
MAUREEN D. AMIL
State Auditor III
Audit Team Leader
Republic of the Philippines
Autonomous Region in Muslim Mindanao
COMMISSION ON AUDIT
Autonomous Region in Muslim Mindanao
Province of Tawi-Tawi
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EXECUTIVE SUMMARY
INTRODUCTION
The Municipality of Bongao created on July 01, 1959 by virtue of Executive
Order No. 355. It is a 3rd class municipality consisting of 35 barangays.
The Municipality is under the administrative supervision of the Autonomous
Region in Muslim Mindanao (ARMM) since November 19, 1989, pursuant to Republic
Act No. 6734 enacted on June 08, 1989, otherwise known as The Organic Act of
ARMM.
Like any other local government unit, the Municipality enjoys total independence
in managing, deciding and planning its own administrative, fiscal and development
affairs in conformity with the National Governments thrust for sustainable social andeconomic growth.
As provided by Muslim Mindanao Act No. 25, the Municipality serves as the
dynamic mechanism for developmental processes and effective governance of the
inhabitants within its territorial jurisdiction. In the pursuit of attaining its state purposes,
it exercises power to generate and apply resources, power of eminent domain, corporatepowers and authority to negotiate and secure grants.
HIGHLIGHTS OF OPERATIONS
For the year, the Municipality approved a budget ofP87,187,506.38 out of theestimated funds available for appropriation ofP 87,846,354.00. The budgetary
projection from LGU share on Internal Revenue Allotment (IRA) isP81,264,928.00.
The total income realized during the year is P 84,887,441.55 and the total
expenditures incurred isP85,850,641.49 with a deficit ofP 963,199.94. The actual IRA
received is P 80,975,371.00 and the reported collection from local sources is
P 3,912,070.55.
SCOPE OF AUDIT
A financial and compliance audit was conducted on the accounts and operations
of the Municipality for Calendar Year 2008, using applicable provisions of the NationalGovernment Accounting System Manual (NGAS), the Local Government Code of 1991
(R.A. No. 7160), PD 1445, and such other laws, rules and regulations. The audit
consisted of review of operating procedures, reconciliation, interview with accountable
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and other concerned officials, issuance of demand and letter requests, and other
alternative procedures deemed necessary.
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AUDIT OPINION ON THE FINANCIAL STATEMENTS
The Auditor rendered a qualified opinion on the fairness of presentation of the
financial statements due to the possible effects of adjustments that might have been made
had the LGU conducted a physical inventory of its Property, Plant and Equipment withbook value of P 31,941,783.14 and had it provided depreciation on its depreciable PPEs
totaling P 28,417,040.35.
SIGNIFICANT FINDINGS AND RECOMMENDATIONS
A. Financial and Compliance Audit
1. The validity, existence and correctness of the Property, Plant and Equipmentaccounts totalingP31,941,783.14 could not be ascertained due to the failure of the
LGU to conduct a physical inventory in Calendar Year 2008, as required underSection 124, Volume I of the NGAS Manual, thus affecting the fair presentation of theaccounts in the financial statements.
We reiterate our recommendation for the LGU to conduct periodic physical inventory
of its property, plant and equipment. Items that are beyond economic repair shall be
properly disposed and dropped from the books.
2. Depreciable property, plant and equipment amounting to P28,417,040.35 were not
depreciated due to the absence of property subsidiary ledgers and other records as
basis for the computation of the depreciation, contrary to Section 4, paragraph (o),
Volume I of the NGAS Manual, thus affecting the fair presentation of the Property,Plant and Equipment and expense accounts.
The LGU should exert effort to secure the documents necessary to reconstruct the
PPE accounts so that depreciation for the current and previous years maybe computedto arrive at the correct valuation of the property, plant and equipment. In case the
necessary data could no longer be secured after exhausting all possible means, we
recommend that appraisal of the PPEs be considered in order to establish the correct
book values.
3. Copies of Purchase Orders (POs)/Contracts and Acceptance and Inspection Reports(AIR) covering the procurement of supplies, materials and equipment were not
submitted to the Auditors Office on time for the conduct of evaluation and inspection
of items purchased, contrary to Section A (1-2) of COA Circular No. 96-010 datedAugust 15, 1996 and Section 118 of the NGAS Manual, Volume I, respectively.
We recommend that copies of Purchase Orders/Contracts and Acceptance and
Inspection Reports be submitted to the Auditors Office as required under Section A
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(1-2) of COA Circular No. 96-010 and Section 118 of the NGAS Manual, Volume I.
4. Bank Reconciliation Statements (BRS) on all funds as of December 31, 2008, were
not prepared by the Municipal Accountant, thus casting doubt on the validity and
reliability of the Cash in Bank, Local Currency Current Accounts in the total amount
ofPP 9,134,310.31.
Direct the Municipal Accountant to prepare the monthly bank reconciliation
statement and submit the same to the Office of the Auditor promptly and regularly.
5. The Budget Officer did not maintain Registries of Appropriation, Allotment andObligation for Capital Outlay, Maintenance and Other Operating Expenses,
Personal Services and Financial expenses, thus the Status of Appropriation,
Allotment and Obligation (SAAOb) as of a given date for the year 2008 cannot be
readily prepared.
The Budget Officer should maintain the Registries of Appropriation, Allotment andObligation for each class of expenditure as prescribed to ensure the preparation of the
SAAOb as of a given date anytime and establish a strong internal control onobligation of expenses.
B. Value for Money Audit
6. Evaluation on the utilization ofP 16,195,074.00 for the implementation of various
programs and activities from January to December 2008 under the 20%
Development Fund could not be ascertained due to the absence of accomplishment
reports.
The officials exercising fiscal responsibility over the transactions pertaining to 20%
Development Fund should observe efficiency in planning and monitoring the proper
implementation of programs, projects and activities of the LGU funded out this Fund.
STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT
RECOMMENDATIONS
Of the nine (9) audit recommendations contained in the CY 2007 Annual Audit
Report, two (2) were implemented, one (1) was partially implemented and six (6) remainnot acted. Two (2) of these are reiterated in the current report as they affected the fair
presentation of the financial statements.
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TABLE OF CONTENTS
PART PARTICULARS PAGE
I
AUDITED FINANCIAL STATEMENTS
Audit Certificate 2
Statement of Management Responsibility 3
Consolidated Balance Sheet 4
Consolidated Statement of Income & Expenses 5
Consolidated Statement of Cash Flows 6
Notes to Financial Statements 7
IIFINDINGS AND RECOMMENDATIONS 11
Detailed Findings and Recommendations
Value for Money Audit
III STATUS OF IMPLEMENTATION OF PRIOR
YEARS AUDIT RECOMMENDATIONS19
IV
ANNEXES
A - Consolidated Balance Sheet, by Fund 26
B - Consolidated Statement of Income and
Expenses, by Fund27
C - Consolidated Statement of Cash Flows,
By Fund28
D - Statement of Appropriations, Allotments,
and Balances29
E - Schedule of Property, Plant and Equipment 32
F - Schedule of PPE without Depreciation 33
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PART I
AUDITED FINANCIAL STATEMENTS
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AUDIT CERTIFICATE
The Honorable Mayor
Municipality of Bongao
Province of Tawi-Tawi
We have audited the accompanying Balance Sheet of the Municipal Government of
Bongao as of December 31, 2008 and the related Statements of Income and Expense and Cash
Flows for the year then ended. These financial statements are the responsibility of the
management of the Municipal Government of Bongao. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with laws and generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain reasonable
assurance that the financial statements are free of material misstatement/s. Our audit included
examining on a test basis, evidence supporting the amounts and disclosures in the financial
statements. It also included assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
However, as presented in our comments and observations, the LGU failed to conduct a
physical inventory of its property, plant and equipment as of year-end valued in the books at
P 31,941,783.14. It also did not provide depreciation on its depreciable assets costing
P28,417,040.35. The inadequacy of its records did not permit us to apply adequate alternativeprocedures to determine the validity and the propriety of the property, plant and equipmentaccount.
In our opinion, except for the effect of any adjustments which might have been made had
the LGU conducted a physical count of its property, plant and equipment as of December 31,
2008, and had it provided depreciation on all its depreciable assets, or had the record allowed us
to apply alternative procedures, the financial statements referred to above present fairly, in all
material respect, the financial position of the Municipal Government of Bongao as of December
31, 2008, and the results of its operation for the year then ended, in accordance with applicable
laws, rules and regulations and in conformity with generally accepted state accounting principles.
COMMISSION ON AUDITBy:
NONA A. IMLAN
State Auditor V
Supervising Auditor
February 14, 2009
2
Republic of the Philippines
COMMISSION ON AUDIT
Autonomous Region in Muslim Mindanao
OFFICE OF THE SUPERVISING AUDITOR
Provinces of Tawi-Tawi & BasilanARMM Complex, Cotabato City
Tel Nos. 421 1233
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MUNICIPAL GOVERNMENT OF BONGAO
CONSOLIDATED BALANCE SHEET
As of December 31, 2008
(With Comparative Figures for CY 2007)
2008 2007
A S S E T S
Current Assets
Cash (Note 5) 9,134,310.31 3,588,892.12Receivables (Note 6) 582,404.09 429,593.35
Inventories (Note 7) 47,334.02 47,334.02
Total Current Assets 9,764,048.42 4,065,819.49
Property, Plant and Equipment (net of
depreciation)Land and Land Improvements 6,137,339.82 6,137,339.82
Buildings 18,841,756.90
14,279,278.0
9Office Equipment, Furniture and Fixtures 4,267,906.88 4,101,104.07
Machinery and Equipment 1,382,882.67 1,865,827.97
Transportation Equipment 685,796.87 888,740.76Other Property, Plant and Equipment 26,100.00 34,800.00
Construction in Progress 600,000.00 190,028.08
Total Property, Plant and Equipment (Note 8) 31,941,783.14
27,497,118.7
9
Other Assets 849,256.24 849,256.24
TOTAL ASSETS 42,555,087.80
32,412,194.5
2
LIABILITIES AND EQUITY
LIABILITIES-Current Liabilities (Note 10) 12,317,926.02 4,422,496.68
Deferred Credits 0.00
Total Liabilities 12,317,926.02 4,422,496.68
EQUITY
Government Equity (Note 11) 30,237,161.78
27,989,697.8
4
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TOTAL LIABILITIES & EQUITY 42,555,087.80
32,412,194.5
2
(See accompanying Notes to Financial Statements)
MUNICIPAL GOVERNMENT OF BONGAO
CONSOLIDATED STATEMENT OF INCOME AND EXPENSE
For the Year ended December 31, 2008
(With Comparative Figures for CY 2007)
2008 2007
Income
Local Taxes 1,455,497.55 1,232,504.50
Permit and Licenses 128,908.71 291,233.95Service Income 546,892.00 335,444.00Business Income 1,729,319.00 1,217,528.00
Other General Income 81,026,824.29 58,859,590.47
TOTAL INCOME 84,887,441.55 61,936,300.92
N Less: Expenses
Personal Services 24,481,277.83 22,744,528.68
Maintenance and Other
Operating Expenses 55,869,804.39 34,921,655.33Financial Expenses 7,077.00 91.39
TOTAL EXPENSES 80,358,159.22 57,666,275.40
Operating Income 4,529,282.33 4,270,025.52
Add: Subsidies from Other NGAs 0.00 0.00
Total 4,529,282.33 4,270,025.52
Less: Subsidies to LGUs 0.00 0.00
Subsidies to LGUs 5,492,482.27 5,879,860.63
Total 5,492,482.27 5,879,860.63
NET INCOME (963,199.94)(1,609,835.11
)
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MUNICIPAL GOVERNMENT OF BONGAO
CONSOLIDATED STATEMENT OF CASH FLOW
For the Year Ended December 31, 2008
(With Comparative Figures for CY 2007)
2008 2007
Cash Flow from Operating Activities:
Cash Inflows:
Collection from taxpayers 1,455,497.55 2,240,451.55
Share from Internal Revenue Collections 80,975,371.00
53,450,826.0
0
Receipts from Sale of goods or services 2,405,119.71 2,136,872.50Other Receipts 7,397,840.09 9,326,169.74
Total Cash Inflow 92,233,828.3567,154,319.7
9
Cash Outflows:
Payments-
To Suppliers/Creditors 49,917,667.01
44,568,691.9
6
To employees 31,491,529.6422,744,528.6
8
Other Expense 428,755.70 169,377.87
Total Cash Outflow 81,837,952.35
67,482,598.5
1
Net Cash from Operating Activities 10,395,876.00 (328,278.72)
Cash Flows from Investing Activities:
Cash Inflows
From Sale of Property, Plant &Equipment 0.00 0.00
Cash OutflowsTo Purchase Property, Plant & Equipment 4,850,457.81 51,000.00
Net Cash from Investing Activities
(4,850,457.81
) (51,000.00)
Cash Flows from Financing ActivitiesCash Inflows
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From Acquisition of Loan 0.00 0.00
Cash Outflows
Payment of Loan Amortization 0.00 0.00
Net Cash from Financing Activities 0.00 0.00
Net Increase in Cash 5,545,418.19 (379,278.72)Cash at Beginning of the Period 3,588,892.12 3,968,170.84
Cash at the End of the Period 9,134,310.31 3,588,892.12
NOTES TO FINANCIAL STATEMENT
Note 1 General/Agency Profile
The Municipality of Bongao was created on July 01, 1959 by virtue of Executive
Order No. 355. It is a third (3rd) class municipality, consisting of 35 Barangays. It is the
premier commercial center of the Province of Tawi-Tawi and the seat of the Provincial
Government.
The Municipality is under the administrative supervision of the Autonomous
Region in Muslim Mindanao (ARMM) since November 19, 1989, pursuant to RepublicAct No. 6734 enacted on June 08, 1989, otherwise known as the Organic Act of
ARMM.
Note 2 Basis of Financial Statements Presentation
The financial statements have been prepared in accordance with the Generally
Accepted State Accounting Principles and Standards.
Note 3. Summary of Significant Accounting Policies:
3.1 The LGU uses a modified accrual basis of accounting. Expenses are
recognized when incurred and reported in the financial statements in the
period to which they relate. Income is on accrual basis except fortransactions where accrual basis is impractical or when other methods may
be required by law. Real property taxes are accounted following the
modified accrual method of accounting and the cash basis of accounting isused for all other taxes, fees, charges and other revenues.
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3.2 Petty Cash Fund (PCF) account is maintained under the Imprest System.
All replenishments are directly charged to the expense account. The PCF is
not used to purchase regular inventory items for stock.
3.3 Property, Plant and Equipment are carried at historical cost. Properties of
the government, which are used by the general public, are dropped fromProperty, Plant & Equipment account and recorded in the Registry of
Public Infrastructure/Reforestation Projects.
3.4 The straight-line method of depreciation is followed. Public
Infrastructure/Reforestation Project not used in operation are not subject to
depreciation. Depreciation is not likewise charged to Infrastructure projects
under construction.
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3.5 For assets under construction, all related expenses incurred during the
construction of the project are capitalized and those incurred after the
construction are charged against the operating cost.
3.6 Payable accounts are recognized and recorded in the books of accounts
only upon acceptance of the goods, inventory or assets and rendition ofservices to the local government unit.
3.7 Financial expenses such as bank charges and interest on loans areseparately classified from MOOE.
Note 4. Correction of fundamental errors
Fundamental errors of prior years are corrected by using the Prior Years Adjustments
account. Errors affecting current years operation are charged to the current years
accounts.
Note 5. Cash
This account is broken down as follows:
Account NameBalance
Dec. 31, 2007
Addition/
(Reduction)
Balance
Dec. 31, 2008
Cash in Vault 966,730.34 (966,730.34) 0.00
Cash-Disbursing Officer 178,268.00 (178,268.00) 0.00
Petty Cash Fund 5,000.00 0.00 5,000.00
Cash in Bank LCCA 2,438,893.78 6,690,416.53 9,129,310.31
Total P 3,588,892.12 5,545,418.19 P 9,134,310.31
Note 6. Receivables
This account is broken down as follows:
Account NameBalance
Dec. 31, 2007
Addition/
(Reduction)
Balance
Dec. 31, 2008
Accounts Receivable 60,000.00 (60,000.00) 0.00
Due from Officers and employees 13,729.11 0.00 13,729.11
Due from GOCC 100.00 (100.00) 0.00
Due from LGUs 209,404.12 (209,404.12) 0.00
Due from Other Funds 0.00 422,314.86 422,314.86
Other Receivables 146,360.12 0.00 146,360.12
Total P 429,593.35 P 152,810.74 P 582,404.09
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Note 7. Inventories
The total inventories of P 47,334.02 pertain to account 156 Accountable FormsInventory.
Note 8. Property, Plant and Equipment
This account consists of :
PARTICULARSBalance
Dec. 31, 2007
Addition/
(Reduction)
Balance
Dec. 31, 2008
Land P 300,000.00 P 0.00 P 300,000.00
Land Improvements 5,837,339.82 0.00 5,837,339.82
Office Buildings 5,762,163.28 1,985,364.00 7,747,527.28
Market & Slaughterhouse 8,082,114.81 0.00 8,082,114.81
Other Structures 435,000.00 2,577,114.81 3,012,114.81
Office Equipment 156,179.26 135,740.00 291,919.26
Furniture and Fixtures 3,851,416.38 86,995.00 3,938,411.38
IT Equipment and Software 587,774.80 65,244.00 653,018.80
Const.& Heavy Equipment 3,164,338.50 0.00 3,164,338.50
Motor Vehicles 711,000.00 0.00 711,000.00
Other Transportation Equipment 844,438.36 0.00 844,438.36
Other Property, Plant &
Equipment 87,000.00
0.00
87,000.00Construction in Progress 190,028.08 409,971.92 600,000.00
Total P30,008,793.29 5,260,429.73 P35,269,223.02
Accumulated Depreciation 2,511,674.50 815,765.38 3,327,439.88
Net Amount P27,497,118.79 P 3,327,439.88 P31,941,783.14
Note 9. Depreciation
The LGU failed to provide the depreciation on its Property, Plant and Equipment
with total acquisition cost of P 28,417,040.35 due to the absence of pertinent documentsto support the computation.
Note 10. Current Liabilities
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This account is broken down as follows:
PARTICULARSBalance
Dec. 31, 2007
Addition/
(Reduction)
Balance
Dec. 31, 2008
Due to Officers and Employees P 28,758.93 0.00 P 28,758.93Due to BIR 1,796.22 9,808.40 11,604.62
Due to GSIS 23,348.20 (947.13) 22,401.07
Due to Pag-IBIG 21,475.61 (180.68) 21,294.93
Due to PHILHEALTH 3,525.00 0.00 3,525.00
Due to NGAs 2,958,206.95 7,234,446.34 10,192,653.29
Due to LGUs 409,259.23 294,576.77 703,836.00
Due to Other Funds 209,404.12 212,910.74 422,314.86
Guarantee Deposits Payable 284,754.00 0.00 284,754.00
Performance/Bidders/BailBonds Payable
104,801.50 145,000.00 249,801.50
Other Payable 377,166.92 (185.10) 376,981.82
Total P 4,422,496.68 7,895,429.34 P 12,317,926.02
Note 11. Government Equity
This account is broken down as follows:
PARTICULARS AMOUNT
Balance, Beginning P 27,989,697.84
Add: Transfer of completed
projects - General Fund P 3,190,793.88
Prior Years Adjustment 19,870.00
-------------------3,210,663.88
Total P 31,200,361.72
Add/(Less): Retained Operating Surplus
Current Operations (Net Income per Statement
of Income and Expense) (963,199.94)Balance, End P 30,237,161.78
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PART II
FINDINGS AND RECOMMENDATIONS
Detailed Findings and Recommendations
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A. Financial and Compliance
1. The validity, existence and correctness of the Property, Plant and Equipment
accounts totaling P 31,941,783.14 could not be ascertained due to the failure of the
LGU to conduct a physical inventory in Calendar Year 2007, as required under Section124, Volume I of the NGAS Manual, thus affecting the fair presentation of the
accounts in the financial statements.
As of year-end, the LGU failed to conduct a physical inventory of its property,
plant and equipment valued at P 31,941,783.14 (Annex A). It also failed to prepare
a periodic Report on the Physical Count of Property, Plant and Equipment (RPCPPE).
Subsidiary ledgers maintained are only on those PPEs acquired during the currentadministration.
The failure of the LGU to conduct a physical inventory is a gross violation of
Section 124, Volume I of the NGAS Manual which requires that physical count ofproperty, plant and equipment shall be made annually and reported in the Report on
the Physical Count of Property, Plant and Equipment (RPCPPE). The report shall besubmitted to the Auditor not later than January 31 of each year.
Similarly, Section 156 of COA Circular No. 92-386 dated October 20, 1992,requires the local chief executive (LCE) to create a committee to conduct an annual
physical inventory of all supplies and property under his control. The committee
shall be composed of the representative of the LCE, the treasurer and property or
supply officer or accountable officer, as members.
Due to the failure of the LGU to conduct physical inventory, the existence,condition and whereabouts of the fixed assets cannot be correctly ascertained andunserviceable property, if there is any, cannot be dropped from the books.
Management Comment:
The audit finding is well-taken. An inventory will be conducted not later than
June 30, 2009.
Recommendation:
We reiterate our recommendation for the LGU to conduct periodic physicalinventory of its property, plant and equipment. Items that are beyond economic
repair shall be properly disposed and dropped from the books.
2. Depreciable property, plant and equipment amounting to P 28,417,040.35were not
depreciated due to the absence of property subsidiary ledgers and other records as
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basis for the computation of the depreciation contrary to Section 4, paragraph (o),
Volume I of the NGAS Manual, thus affecting the fair presentation of the
Property, Plant and Equipment and expense accounts.
Section 4, paragraph (o), Volume I of the NGAS Manual provides that:
Depreciation. The straight-line method shall be used. A residual
value equivalent to ten percent (10 %) of the cost shall be set-up and
depreciation shall start on the second month after purchase/completion ofthe property, plant and equipment (PPE). Public infrastructures shall not
be charged any depreciation.
We have noted in our audit that similar to Calendar Years 2005 to 2007, therewas no provision for the depreciation of most of the depreciable property, plant and
equipment of the LGU for the current year (Annex B). This is due to the absence
of property subsidiary ledgers and other records/documents evidencing the
acquisition of the PPEs, which could have served as basis in the computation ofdepreciation.
The failure of the LGU to provide depreciation on depreciable PPEs resulted
in the overstatement of the book value of the PPEs.
Management Comment:
Depreciation on PPEs purchased during the current administration can be
provided. The Municipal Accountant will initiate the reconstruction of the PPEaccounts.
Recommendation:
The LGU should exert effort to secure the documents necessary to reconstruct
the PPE accounts so that depreciation for the current and previous years maybecomputed to arrive at the correct valuation of the property, plant and equipment. In
case the necessary data could no longer be secured after exhausting all possible
means, we recommend that appraisal of the PPEs be considered in order to establish
the correct book values.
3. Copies of Purchase Orders (POs)/Contracts and Acceptance and Inspection
Reports (AIR) covering the procurement of supplies, materials and equipment were
not submitted to the Auditors Office on time for the conduct of evaluation and
inspection of items purchased, contrary to Section A (1-2) of COA Circular No. 96-
010 dated August 15, 1996 and Section 118 of the NGAS Manual, Volume I,
respectively.
Section A (1-2) of COA Circular No. 96-010 dated August 15, 1996 provides
that:
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1. A copy of any letter or purchase order, irrespective of amount, and all
supporting documents thereto shall be submitted to the unit Auditor
concerned within five (5) days from issuance. Xxx
2. The agency official responsible for accepting deliveries of procured
items, shall, within twenty-four (24) hours from such acceptance,notify the Auditor of the time and date of the scheduled deliveries. In
the case of partial delivery of any item in the P.O., the copy to be
submitted shall indicate which items have been delivered, and whichhave not.
Corollary thereto, Section 118 of the New Government Accounting System
(NGAS) Manual, Volume I provides that:
Deliveries of items purchased by the local government units shall beaccepted first by the general services officer before inspection.
Inspection of purchases shall be made by the authorized inspector/s for conformity with specification in the order. Acceptance andinspection shall be made using the Acceptance and Inspection Report
(AIR).
The furnishing of copies of Purchase Orders/Contracts, Acceptance and
Inspection Reports, etc., will enable the Auditors Office to conduct timely evaluationof contracts/purchase orders and verification of the procured items. Weakness or
deficiencies noted in the course of audit can be communicated immediately to
management for appropriate remedial action.
For CY 2008, copies of Purchase Orders were submitted to the Auditors
Office after the prescribed period. Contracts and Acceptance and Inspection Reportswere not furnished the Auditors Office.
Management Comment:
The LGU has no regular Supply Officer. In the meantime, the Municipal
Treasurer will take charge of the submission of the Purchase Orders/Contracts,
Acceptance and Inspection Reports to the Auditors Office.
Recommendation:
We recommend that copies of Purchase Orders/Contracts and Acceptance and
Inspection Reports be submitted to the Auditors Office as required under Section A
(1-2) of COA Circular No. 96-010 and Section 118 of the NGAS Manual, Volume I.
4. Bank Reconciliation Statements (BRS) on all funds as of December 31, 2008, were
not prepared by the Municipal Accountant, thus casting doubt on the validity and
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reliability of the Cash in Bank, Local Currency Current Accounts in the total
amount of P 9,134,310.31.
Based on the Balance Sheets as of December 31, 2008, the balances of the
Cash in Bank-Local Currency Current Account are as follows:
Fund A m o u n t
General Fund P 31,563.19
Trust Fund 9,102,747.12SEF 0.00
Total P 9,134,310.31
However, the accuracy and validity of the cash accounts cannot be ascertained
as there were no Bank Reconciliation Statements prepared by the Municipal
Accountant during the (12) months.
The balances of the Cash in Bank-LCCA on all funds were derived from the
unadjusted balance of the general ledgers. No adjustments were made to reconcile theamounts with the bank balances arising from outstanding checks, bank debit and
credit memos, and other reconciling items.
Consequently, the Cash in Bank-LCCA as of year-end may either beoverstated or understated.
Section 74 of PD 1445, States:
At the close of each month, depositories shall report to the agency head, in
such form as he may direct the condition of the agency account standing on
their books. The head of the agency shall see to it that reconciliation is madebetween the balance shown in the reports and the balance found in the books
of the agency.
COA Circular 96-011 dated October 02, 1996 states:
3.2 The Local Accountants shall within ten (10) days from receipt of the BankStatement reconcile the same (BS) with the General Ledger (GL) and
prepare the BRS in five (5) copies, xxxx
3.3 The accountant shall draw journal vouchers to record all valid reconcilingitems that require adjustment and correction in the GL.
3.4 The duplicate and quadruplicate copies of the BRS including the paid
checks, original copies of the debit/credit memos, shall be submitted to the
auditor concerned for verification within ten (10) days from receipt afterthe end month.
3.5 The Auditor shall verify the duly certified BRS and supporting schedules
within ten (10) days from receipt of the same.
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3.6 The Auditor shall after verification, affix his signature on the BRS under
the notation VERIFIED AND FOUND CORRECT and furnish the
COA Director concerned the duly verified BRS on a monthly basis orwhere there is an urgent need for the same.xxx
A bank reconciliation statement serves as a basis in determining the correctcash in bank balance of the LGU and prove the integrity of the cash balance in the
books of accounts.
Management Comment:
The audit finding is well-taken.
Recommendation:
Direct the Municipal Accountant to prepare the monthly bank reconciliation
statement and submit the same to the Office of the Auditor promptly and regularly.
5. The Budget Officer did not maintain Registries of Appropriation, Allotment and
Obligation for Capital Outlay, Maintenance and Other Operating Expenses,
Personal Services and Financial expenses, thus the Status of Appropriation,
Allotment and Obligation (SAAOb) as of a given date for the year 2008 cannot be
readily prepared.
The approved appropriation for the year 2008 is P 87,187,506.38 broken
down as follows:
a. Personal Services P 25,014,994.90
b. MOOE 61,444,602.48c. Capital Outlay 727,909.00
--------------------
Total P87,187,506.38============
Audit observation made on the Budget Office records disclosed that each class
of expenditure mentioned above did not have the corresponding registry which is aviolation of Section 18 of NGAS, Volume II which states:
Registry of Appropriations, Allotments and Obligations (RAAO) TheRegistry of Appropriations, Allotments and Obligations is prepared for
function/program/project, allotment class, current/continuing
appropriations and fund. This record shall be maintained xxx to monitorappropriations, allotments received and the obligations incurred against
said allotments. The balance is extracted every time an entry is made to
prevent incurrence of obligations in excess of allotments received or
approved appropriations.
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implementation of these programs could not be established. There is no factual basis
to determine whether these programs had contributed to the development of the
Municipal and the general welfare of its inhabitants due to the non-availability ofpertinent documents and reports serving as success indicators such as:
1. Accomplishment report and progress report on the programimplementation with tangible and quantifiable data to support the
attainment of its objectives.
2. Monitoring reports on the accomplishment of activities related
to the implementation of said programs/projects/activities.
Management Comment:
The Office of the Municipal Engineer is used to prepare an Annual
Accomplishment Report. The Report for the year will be submitted to the Auditor
within five (5) days.
Recommendation:
The officials exercising fiscal responsibility over the transactions pertaining to
20% Development Fund should observe efficiency in planning and monitoring the
proper implementation of programs, projects and activities of the LGU funded outthis Fund.
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PART III
STATUS OF PRIOR YEARS AUDIT
RECOMMENDATIONS
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Of the nine (9) audit recommendations contained in the CY 2007 Annual Audit
Report, two (2) were implemented, one (1) was partially implemented and six (6) remain
not acted. Two (2) of these are reiterated in the current report as they affected the fairpresentation of the financial statements.
Audit Observation Recommendation Ref Management
Action
Statusof Imple-
mentation
Reason forPartial/Non-
Implementation
1. The validity,
existence and correct-
ness of the Property,
Plant and Equipment
accounts totaling
P 27,497,118.79could not be
ascertained due to the
failure of the LGU to
conduct physical
inventory in Calendar
Year 2007, as
required under Section 124, Volume
I of the NGAS
Manual, thus
affecting the fair
presentation of the
accounts in the
financial statements.
We reiterate our
recommendation for
the LGU to conduct
periodic physical
inventory of its
PPEs. Items that are
beyond economic
repair shall be
properly disposed
and dropped from thebooks.
2007
AAR
Not
implemented.
Reiterated as
Finding # 1.
2. Depreciable
property, plant and
equipment amounting
to P 23,854,561.54
were not depreciateddue to the absence of
property subsidiary
ledgers and other
records as basis for
the computation of
the depreciation,
contrary to Section 4,
paragraph (o),Volume I of the
NGAS Manual, thus
affecting the fair
presentation of the
Property, Plant and
Equipment and
expenseaccounts.
We recommend that
depreciation be
provided and the
related accumulated
depreciationaccounts for all
depreciable assets be
updated in
accordance with the
NGAS Manual, for a
realistic presentation
of the value thereof
in the financial state-ments. Also,
manage-ment must
exert effort to secure
the documents
necessary to
reconstruct the PPE
accounts so that
depreciation for thecurrent and previous
years maybe
computed to arrive at
the correct valuation
of the property, plant
and equipment.
2007
AAR
Not
implemented
Reiterated as
Finding # 2
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Audit Observation Recommendation Ref Management
Action
Status
of Imple-
mentation
Reason for
Partial/Non-
Implementation
3. OtherPayable
amounting to P377,166.92 had
remained
outstanding for
more than two
(2) years contrary
to the provisions
of Section 98 of
Presidential
Decree (PD)
1445. Theabsence of
subsidiary
ledgers castdoubt on its
validity.
Require the Muni-
cipal Budget Officer
and Municipal
Accountant to deter-
mine all obligationswith valid claims and
revert to the
unappro-priated
surplus (Government
Equity Account) the
accounts payable that
has no valid or
existing creditors orclaimants
considering the lapse
of time.
2007
AAR Implemented
4. The failure of theMunicipal Treasurer
to submit the
Consolidated Reportof Accountability for
Accountable Forms
(CRAAF) to the
Office of the Auditor
within five (5) daysafter the end of the
month as requiredunder Section 51,
Volume II of the
NGAS Manual
hindered the prompt
detection of
unaccounted and loss
of accountable forms.
Require theMunicipal Treasurer
to designate a regular
personnel who willtake charge of the
preparation of the
CRAAF to ensure
prompt submission to
the Office of theAuditor.
2007AAR
Implemented
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Audit Observation Recommendation Ref Management
Action
Status
of Imple-mentation
Reason for
Partial/Non-Implementation
5. Casual employees
were utilized/assigned
to perform collecting
functions due tomanpower
constraints, contraryto Section 65 of the
Government
Accounting And
Auditing Manual
(GAAM), Volume I.
We advise the
Municipal Treasurer
to strictly comply
with Section 65 ofGAAM, Volume I,
such that onlyregular employees
should be designated
as collectors to
ensure
accountability. We
recommend to the
Municipal Mayor to
fill the vacant positions in the
Office of the
Municipal Treasurer,as these are
collection related, to
prevent manpower
shortage.
2007
AAR
Not
Implemented
6. The balance of the
receivable accounts atyear-end is unreliable
due to the failure of
the management torecognize in the
books the Real
Property Tax (RPT)
and SpecialEducation Tax (SET)Receivables as
required under
Section 20, NGAS
Manual, Volume I
The Municipal
Assessor shouldupdate the Master
List of Real Property
Taxpayers to providethe Municipal
Treasurer an accurate
basis in the prepa-
ration of a certified
list showing thenames of taxpayers
and the amount dueand collectible for
the year. The
certified list shall be
the basis of the
Municipal
Accountant in settingup the RPT and SET
Receivables asrequired under
Section 20, NGAS
Manual, Volume I.
2007
AAR
Not
implemented
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Audit Observation Recommendation Ref Management
Action
Status
of Imple-
mentation
Reason for
Partial/Non-
Implementation
7. Purchase of office
supplies and other
supplies during the
year amounting to
P 308,495.44 and
P 187,254.38,respect-tively, were
directly issued to end
users and charged to
the expense account
with-out coursing
through the inventory,
contrary to Section114, Chapter 7,
Volume I of the
NGAS Manual.Stock Cards and
Supplies Ledger
Cards were likewise
not maintained and
Summary of Suppliesand Materials Issued
were not prepared,
contrary to Sections
119 121 of the
same Manual.
The LGU should
adopt the perpetual
inventory method in
recording purchase
of supplies andmaterials. The LCE
should direct the
Municipal
Accountant and
Treasurer to prepare
and maintain records
and reports as
required by the NGAS Manual to
ensure that the
correct amount of
inventory andexpense accounts are
taken up in the
books.
2007
AAR
Not
implemented
8. The LGU failed to
submit regularly on
due dates the
Reports of
Collections andDisbursements toge-
ther with the receipts
and paid vouchers to
the Auditor, as
required under COA
Circular No. 94-006,
as amended, This
resulted to the delayin the issuance of
notices of suspen-
sions, charges anddisallowances and
consequently, the
issuance of the
Certificate of Settle-
ment and Balances.
Direct the Municipal
Treasurer and the
Accountant to submit
regularly on due
dates the Report ofCollections and
Disbursements
together with the
receipts and paid
vouchers and
documents
evidencing their
transactions, asrequired by COA
Circular No
2007
AAR
Partially
implemented
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Audit Observation Recommendation Ref Management
Action
Status
of Imple-
mentation
Reason for
Partial/Non-
Implementation
9. Non remittance of
Real Property Tax
Share of ARMM thus
incurring a liability
amounting of P276,888.52 as of
December 31, 2004 in
disregard of Sec. 108Chapter 4 of GAAM
Vol. I and sec. 69 of
PD 1445.
Direct the Municipal
Treasurer to remit
promptly the share of
ARMM on Real
Property Taxcollected in
consonance with
Section 69 of PD
1445.
2007
AAR
Not
implemented
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PART IV - ANNEXES
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Annex A
MUNICIPAL GOVERNMENT OF BONGAO
CONSOLIDATED BALANCE SHEET
As of December 31, 2008
Totals General Fund Trust Fund SEF
A S S E T S
Current Assets
Cash (Note 5) 9,134,310.31 31,563.19 9,102,747.12 0.00
Receivables (Note 6) 582,404.09 13,729.11 568,674.98
Inventories (Note 7) 47,334.02 47,334.02 0.00 0.00
Total Current Assets 9,764,048.42 92,626.32 9,102,747.12 568,674.98
Property, Plant and Equipment
(net of depreciation)
Land and Land Improvements 6,137,339.82 6,137,339.82 0.00 0.00
Building 18,841,756.90 18,841,756.90 0.00 0.00
Office Equipment, Furniture
and Fixtures 4,267,906.88 4,267,906.88 0.00 0.00
Machinery and Equipment 1,382,882.67 1,382,882.67 0.00 0.00
Transportation Equipment 685,796.87 685,796.87 0.00 0.00
Other Property, Plant and
Equipment 26,100.00 26,100.00
Construction in Progress 600,00.00 0.00 600,000.00 0.00
Total Property, Plant and
Equipment (Note 8) 31,941,783.14 31,341,783.14 600,000.00 0.00
Other Assets 849,256.24 849,256.24 0.00
TOTAL ASSETS 42,555,087.80 32,283,665.70 9,702,747.12 568,674.98
LIABILITIES AND EQUITY
LIABILITIES-
Current Liabilities (Note 10) 12,317,926.02 2,615,178.90 9,702,747.12 0.00
Deferred Credits 0.00 0.00 0.00 0.00
Total Liabilities 12,317,926.02 2,615,178.90 9,702,747.12 0.00
EQUITY
Government Equity (Note 11) 30,237,161.78 29,668,486.80 0.00 568,674.98
TOTAL LIABILITIES &
EQUITY 42,555,087.80 32,283,665.70 9,702,747.12 568,674.98
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Annex BMunicipal Government of BONGAO
CONSOLIDATED STATEMENT OF INCOME AND EXPENSE
For the Year ended December 31, 2008
Totals General Fund
Trust
Fund SEF
Income
Local Taxes 1,455,497.55 1,073,208.94 0.00
382,288.6
1
Permit and Licenses 128,908.71 128,908.71 0.00 0.00
Service Income 546,892.00 546,892.00 0.00 0.00
Business Income 1,729,319.00 1,729,319.00
Other General Income 81,026,824.29 81,026,824.29 0.00 0.00
TOTAL INCOME 84,887,441.55 84,505,152.94 0.00
382,288.6
1
Less: Expenses
Personal Services 24,481,277.83 24,481,277.83 0.00 0.00
Maintenance and Other
Operating Expenses 55,869,804.39 55,869,804.39 0.00 0.00
Financial Expenses 7,077.00 7,077.00 0.00 0.00
TOTAL EXPENSES 80,358,159.22 80,358,159.22 0.00 0.00
Operating Income 4,529,282.33 4,146,993.72 0.00
382,288.6
1
Add: Subsidies from NationalGovt 0.00 0.00 0.00 0.00
Total 4,529,282.33 4,146,993.72 0.00
382,288.6
1
Less: Subsidies to Other LGUs 5,492,482.27 5,492,482.27 0.00 0.00
NET INCOME (963,199.94) (1,345,488.55) 0.00
382,288.6
1
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Annex CMunicipal Government of BONGAO
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year ended December 31, 2008
TOTALS
General
Fund
TRUST
FUND SEF
Cash Flow from Operating
Activities:
Cash Inflows:
Collection from taxpayers 1,455,497.55 1,073,208.94 0.00 0.00
Share from Internal Revenue
Collections 80,975,371.00 80,975,371.00 0.00 0.00
Receipts from Sale ofGoods/services 2,405,119.71 2,405,119.71 0.00 0.00
Other Receipts 7,397,840.09 51,453.29 7,346,386.80 0.00
Total Cash Inflow 92,933,828.35 84,505,152.94 7,346,386.80 0.00
Cash Outflows:
Payments-
To Suppliers/Creditors 49,917,667.01 49,317,667.01 600,000.00 0.00
To employees 31,491,529.64 31,491,529.64 0.00 0.00
Other Expense 428,755.70 0.00 13,255.82 415,529.88
Total Cash Outflow 81,837,952.35 80,809,196.65 613,255.82 415,529.88
Net Cash from Operating
Activities 10,395,876.00 3,695,956.29 6,733,160.98 (33,241.27)
Cash Flows from Investing
Activities:
Cash Inflows
From Sale of Property,Plant and Equipment 0.00 0.00 0.00 0.00
Cash OutflowsTo Purchase Property,
Plant and Equipment 4,850,457.81 4,850,457.81 0.00 0.00
Net Cash from Investing
Activities (4,850,457.81)
(4,850,457.81
) 0.00 0.00
Cash Flows from Financing
ActivitiesCash Inflows 0.00 0.00 0.00 0.00
Cash Outflows 0.00 0.00 0.00 0.00
Net Cash from FinancingActivities 0.00 0.00 0.00 0.00
Net Increase in Cash 5,545,418.19
(1,154,501.52
) 6,733,160.98 (33,241.27)
Cash at Beginning of the Period 3,588,892.12 1,186,064.71 2,369,586.14 33,241.27
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Cash at the End of the Period 9,134,310.31 31,563.19 9,102,747.12 0.00
Annex D
Municipal Government of BONGAOSTATUS OF APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS(Current Legislative Appropriation)
(Consolidated)As of December 31, 2008
UnobligFunction/Program/Project/A Appropria Allotme Obligati Balance
GENERAL PUBLIC SERVICES
Executive Services (Mayor)General Administration
Personal Services 6,917,251. 6,852,70 6,852,70 0.00
MOOE 2,340,000. 2,329,02 2,329,02 0.00Capital Outlay 92,814.00 92,814.0 92,814.0
Vice-MayorPersonal Services 959,290.94 959,290. 959,290. 0.00MOOE 1,500,000. 1,500,00 1,500,00 0.00Capital Outlay 0.00 0.00 0.00 0.00
Legislative ServicesLegislation
Personal Services 5,005,180. 5,005,18 5,005,18 0.00MOOE 1,950,000. 1,940,83 1,940,83 0.00Capital Outlay 500,000.00 500,000. 250,200. 249,800.
Secretary to Sangguniang
Personal Services 1,176,759. 1,176,75 1,176,75 0.00MOOE 433,503.59 433,503. 433,503. 0.00
Planning and DevelopmentGeneral Administration
Personal Services 1,882,895. 1,882,89 1,882,89 0.00MOOE 435,778.60 435,778. 435,778. 0.00
Civil Registry (CivilGeneral Administration
Personal Services 720,583.79 720,583. 720,583. 0.00MOOE 179,467.67 179,467. 179,467. 0.00
Budgeting Services (Budget
General AdministrationPersonal Services 977,014.55 977,014. 977,014. 0.00MOOE 265,082.17 265,082. 265,082. 0.00
Accounting ServicesGeneral Administration
Personal Services 1,142,043. 1,142,04 1,142,04 0.00MOOE 284,741.30 284,741. 284,741. 0.00
Treasury Services
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General AdministrationPersonal Services 3,350,081. 3,350,08 3,350,08 0.00MOOE 550,000.00 550,000. 550,000. 0.00Capital Outlay 135,095.00 135,095. 135,095.
Assessment of RealGeneral Administration
Personal Services 1,027,325. 1,027,32 1,027,32 0.00MOOE 172,000.0 172,000. 172,000. 0.00
Auditing Services (Auditor)General Administration
MOOE 350,000.0 350,000.0 350,000.0 0.00
Information ServicesGeneral Administration
MOOE 338,003.3 338,003.0 338,003.0 0.00
Legal ServicesGeneral AdministrationMOOE 104,600.0 104,600.0 104,600.0 0.00
MCTCMOOE 50,000.00 50,000.00 50,000.00 0.00
Police ServicesGeneral Administration
MOOE 760,000.0 758,459.9 758,459.9 0.00
Fire Protection ServicesGeneral Administration
MOOE 195,583.3 195,583.3 195,583.3 0.00
Repair and Maintenance of GovernmentGeneral Administration
MOOE 9,000,000 9,000,000 9,000,000 0.00
SUB-TOTAL 42,795,09 42,708,86 42,459,06 249,800
EDUCATION, CULTURE,MANPOWER DEVELOPMENTMaintenance of Sports Centers, Athleticand Playgrounds
SportsMOOE 2,245,000 2,243,368 2,243,368 0.00
SUB-TOTAL 2,245,000 2,243,368 2,243,368 0.00
HEALTH SERVICESGeneral Administration
MOOE 3,750,000 3,745,205 3,745,205 0.00
SUB-TOTAL 3,750,000 3,745,205 3,745,205 0.00
HOUSING AND COMMUNITYSanitary Services
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MOOEStreet Cleaning 860,000.0 858,711.7 858,711.7 0.00Garbage Collections 4,050,000 4,037,274 4,037,274 0.00Street Lighting 1,500,000 1,500,000 1,500,000 0.00
Social Welfare ServicesMOOEGeneral Administration 1,560,000 1,556,420 1,556,420 0.00Family Planning 100,000.0 100,000.0 100,000.0 0.00Red Cross 5,000.00 5,000.00 5,000.00 0.00OTHERS 2,200,000 2,195,852 2,195,852 0.00
SUB-TOTAL 10,275,00 10,253,25 10,253,25 0.00
ECONOMIC SERVICESMunicipal Economic
General AdministrationMOOE 1,870,000 1,870,000 1,870,000 0.00
Engineering ServicesGeneral Administration
Personal Services 856,567.6 856,567.6 856,567.6 0.00MOOE 192,000.0 192,000.0 192,000.0 0.00
SUB-TOTAL 2,918,567 2,918,567 2,918,567 0.00
OTHER PURPOSESRetirement and Other
Lump-SumPersonal Services 1,000,000 1,000,000.00 530,825.54 469,174
Outlays in Connection withOther Calamities, other
Budgetary ReservesMOOE 4,048,768 4,048,768 4,048,768 0.00
OthersMOOE 2,750,000 2,738,601 2,738,601 0.00
SUB-TOTAL 7,798,768 7,787,369 7,318,195 469,174
Aid to Barangays 35,000.00 35,000.00 35,000.00 0.00
Local Development FundPeace and Order
MOOE 1,060,000 1,050,867 1,050,867 0.00
IT Department
General AdministrationMOOE 150,000.0 138,068.7 138,068.7 0.00
Community DevelopmentGeneral Administration
MOOE 16,195,07 16,195,07 16,195,07 0.00Capital Outlay 0.00 0.00
SUB-TOTAL 17,405,07 17,384,01 17,384,01 0.00
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GRAND TOTAL 87,187,5 87,040,6 86,321,6 718,97
Annex E
AAR Page 10
Schedule of Property, Plant and Equipment
As of December 31, 2008
PARTICULARSAcquisition
Cost
Accumulated
DepreciationBook Value
Land P 300,000.00 P 0.00 P 300,000.00
Land Improvements 5,837,339.82 0.00 5,837,339.82
Office Buildings 7,747,527.28 0.00 7,747,527.28
Market & Slaughterhouse 8,082,114.81 0.00 8,082,114.81
Other Structures 3,012,114.81 0.00 3,012,114.81
Office Equipment 291,919.26 69,990.39 221,928.87
Furniture and Fixtures 3,938,411.38 52,744.69 3,885,666.69
IT Equipment and Software 653,018.80 492,707.48 160,311.32
Const.& Heavy Equipment 3,164,338.50 1,781,455.83 1,382,882.67
Motor Vehicles 711,000.00 581,125.03 129,874.97
Other Transportation Equipment 844,438.36 288,516.46 555,921.90
Other Property, Plant &
Equipment87,000.00 60,900.00 26,100.00
Construction in Progress 600,000.00 0.00 600,000.00
TOTAL PROPERTY, PLANT &
EQUIPMENTP35,269,223.02 P 3,327,439.88 P 31,941,783.14
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Annex F
AAR Page 11
Schedule of PPE without Depreciation in CY 2008
As of December 31, 2008
PARTICULARSAcquisition
Cost
Accumulated
DepreciationBook Value
Land Improvements 5,837,339.82 0.00 5,837,339.82
Office Buildings 7,747,527.28 0.00 7,747,527.28
Market & Slaughterhouse 8,082,114.81 0.00 8,082,114.81
Other Structures 3,012,114.81 0.00 3,012,114.81
Furniture and Fixtures 3,737,943.63 0.00 3,737,943.63
TOTAL P 28,417,040.35 0.00 P 28,417,040.35