Republic of the Philippines

Province of Camarines Sur

LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
REPORT ON THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
For CY 2018
AOMs/Issue
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to be ta
Concern
We recommend that Management:
(a) require MENRO in coordination with the Municipal * Municipal Planning &
AOM No. Management Board to provide a concrete plan for the
2019-01- Development
operation of the MRF and provide an appropriate alternative
100(2018) plan on proper waste disposal for safe and sanitary Coordinator Fully Implemented Please see the attached letter
The Municipality was not able to install a management of the temporary controlled dumpsite while of the MENRO regarding this
safe and sanitary management of solid still in the process of waiting approval of the 10-year Solid
wastes in CY 2018 for the temporary Waste Management Plan/Program by the DENR; *MENRO/Agricultural AOM.
controlled dumpsite despite reported Technologist
expenditures of P3.59 million contrary to
Section 10 of RA No. 9003, thus failed to
ensure the protection of the environment
and the health and safety of its constituents.

(b) keep track and follow-up the review and approval of the

LGU's 10-year Solid Waste Management Plan with the DENR

and the request for appraisal with PAO; and

(c) require the Municipal Management Board to strategically

plan to ensure implemetation and enforcement of the
provisions of the Act.
We recommend that Management direct the General
* General Services
Services Officer to: Officer
Fuel consumptions of motor vehicles owned (a) submit written justification and the Statement of * Municipal
AOM No. Accountant Prepared and Submit Montlhy
2019-02- by the LGU with a total of P2.79 million were Accounts in lieu of the Monthly Report of Fuel Consumption Report and Driver's Trip Ticket
100(2018) recorded as outright expense inconsistent Fully Implemented the Municipal Accountant.
and RIS for PY 2017 consumptions as abovementioned to
with COA Circular No. 77-61, hence, cast
forestall the issuance of Notice of Suspension;
doubts as to the validity and propriety of the (b) prepare Monthly report of fuel consumption together
Fuel, Oil and Lubricants Expenses account. with the Monthly summary of RIS and Driver's Trip Tickets to
the Municipal Accountant for recording in the LGU Books of
Accounts at the end of each month: and
 Republic of the Philippines
Province of Camarines Sur
LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
(b) prepare Monthly report
REPORT ON THE STATUS OF IMPLEMENTATION of fuel consumption
ON AUDITtogether OBSERVATIONS AND RECOMMENDATIONS
For CY 2018
with the Monthly summary of RIS and Driver's Trip Tickets to
AOMs/Issue
Audit Observation Recommendation
the Municipal Accountant for recording in the LGU Books of Persons Responsible Status of Implementation Action taken/Action to be ta
Concern
Accounts at the end of each month: and
(c) require the concerned personnel to accomplish the RIS to
support the withdrawals of gasoline from the authorized
gasoline dealer/supplier.

We also recommend that Management require the

Municipal Accountant to:
(a) ensure the completeness of the submission of The Municipal Accountant obs
the documentary requirements consistent with the the correct entry in purchasing
for the succeeding period and
COA Circular No. 77-61 for this particular transaction; prepared adjusting entry to co
(b) prepare adjusting entry to correct the Fuel, Oil the Fuel, Oil and Lubricants
and Lubricants Expenses account of the amount Expenses.
obligated as at the yearend; and
(c) refrain from reporting purchase of fuel as an out
right expense without the abovementioned required
support documents. It shall be reported as an inven-
tory and shall only be reported as expenses upon
submission of the required support documents for
the consumption.
Unused balances from fully implemented We recommend that Management require the Municipal
AOM No. * Acting Municipal The Municipal Accountant
2019-03- projects funded by National Government Accountant to coordinate with the respective Sas, validate Treasurer verify/validate to the source
300(2018) Agencies totaling P352,189.77 remained the propriety of the amount and facilitate the liquidation of Ongoing agency
said balances. * Municipal
unreturned, contrary to COA Circular No. 94- Accountant
013, considering that they are dormant
accounts, hence, depriving the national
government of the use of the fund.
The Municipality was unable to implement We recommend that Management strategically implement
AOM No. * Municipal Planning &
2019-004- the Const. of Slaughterhouse Facility and its developmental projects within the target period of Development
100(2018) Eqpt. With an appropriation of P3.08 million accomplishment to ensure that the 20% of the IRA is Coordinator Fully Implemented Please see the attached letter
under the 20% Local Development Fund for optimally utilized in the prompt implementation of programs
 Republic of the Philippines
Province of Camarines Sur
LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
REPORT ON THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
The Municipality was unable to implement We recommend that Management For
strategically
CY 2018 implement
AOMs/Issue the Const. of Slaughterhouse Facility and its developmental projects within the target period of
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to be ta
Concern Eqpt. With an appropriation of P3.08 million accomplishment to ensure that the 20% of the IRA is
of the Municipal Engineer &
under the 20% Local Development Fund for optimally utilized in the prompt implementation of programs * Municipal Budget
Officer MPDC regarding this AOM.
CY 2018 while P4.36 million of its continuing and projects to achieve the desirable socio-economic
* Municipal Engineer
appropriation remained unimplemented, development as prescribed under DILG-DBM Joint
contrary to DILG-DBM Memorandum Circular 2017-1.
Joint Memorandum Circular No. 2017-1
thus, opportunity of the
residents/beneficiaries of timely benefit
from the projects had been lost.

We recommend that Management:

Excessive expenditures were incurred for (a) study the packages offered by mobile networks and * Members of the
Sangguniang Bayan
mobile phone load allowance by about
AOM No. evaluate which would provide the best price favorable to the
2019-005- P30,000.00 to P84,000.00 per
100(2018) official/employee per annum, totalling government; Not Implemented
(b) set specific guidelines on the grant of reasonable mobile
P1.398 million without any guidelines for * Municipal
Accountant
entitlement, contrary to COA Circular No.
telephone allowance to its officials and employees; and
2012-003, thus exposing the funds to (c) refrain from paying excessive expenditures as required
possible loss or wastage due to lack of
under COA Circular No. 2012-003 and see to it that claims
definite controls.
are supported with adequate documentation.
We recommend that the management:
LCPC programs amounting P1.637 million (a) prepare a local code for children which will serve as guide * Municipal
AOM No. for the implementation of this program; Accountant Please see the attached SB
2019-006- was not implemented, contrary to Section Resolution Adopting the
100(2018) 18 of Republic Act No. 9344 due to non- Fully Implemented Establishing of LCPC
(b) install/establish the Local Councils for the Protection of * LCPC Program
establishment of Local Council and lack of Coordinator
Children (LCPC); and Please see the attached execu
local code for children, thereby depriving its (c) implement the programs/activities that promote and
order reorganizing the LCPC
constituents of the benefits they could have protect the right and welfare of the children. composition/member to facilt
derived had these funds been utilized and
 Republic of the Philippines
LCPC programs amounting P1.637 million Province of Camarines Sur
was not implemented, contrary to Section LOCAL GOVERNMENT UNIT OF SIPOCOT
18 of Republic Act No. 9344 due to non- Sipocot, Camarines Sur
REPORT
establishment of Local Council ON
and THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
lack of
For CY 2018
local code for children, thereby depriving its
AOMs/Issue
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to be ta
Concern constituents of the benefits they could have
derived had these funds been utilized and the proper implementation of
implemented during the year. programs and activities.
We recommend that Management require:
The accuracy of the reported balance of (a) the Municipal Agriculturist to prepare and submit * Municipal
AOM No. Accountant
2019-007- Biological Assets totaling P292,996.00 was Quarterly Report of Biological Assets to the Accounting
100(2018) unreliable due to nonrecording of related Fully Implemented Please see the attached letter
transactions and lack of monitoring of actual Office to facilitate proper valuation of the account; and * Municipal of the Municipal Agriculturist
(b) the Municipal Accountant to effect the necessary Agriculturist regarding this AOM.
and existing breeding stocks, contrary to
adjustments to correct the Biological Assets and income
Annex B of COA Circular 2015-009 thus,
accounts and thenceforth strictly observe the provisions of
understating the account by approximately
Philippine Public Sector Accounting Standard concerning
P236,404.00
proper recognition, measurement and presentation of
Biological Assets account.

We recommend that Management:

Gender and Development programs (a) require the GAD focal group to judiciously plan the GAD * Municipal
AOM No. Accountant Designated new GAD focal gro
2019-008- amounting to P2.876 million or 32 percent to facilitate the proper
100(2018) programs and projects in order to properly ulilize the budget. Fully Implemented implementation and utilization
were not utilized, contrary to Section 3 of
(b) implement the programs and projects covered by GAD *GAD Focal Person the budget
PCW-DILG-DBM-NEDA Joint Memorandum
Circular 2013-01, due to lack of manpower annual plan and budget to achieve its objective; and Please see attached Executive
to supervise the projects, thus strengthening (c) reinforce the manpower involved in the implementation Order no. 2019-08

GAD mainstream in the operations of the

of GAD related programs, projects and activities.
agency and information of the public of GAD
issues and policies were not fully achieved.
We recommend that Management require the Municipal
Accountant to:
 Republic of the Philippines
Province of Camarines Sur
LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
REPORT ON THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
For CY 2018
AOMs/Issue
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to be ta
Concern
Entries prepared and posted at the end of (a) strictly conform to the generally accepted accounting * Municipal
AOM No. Accountant The Municipal Accountant obs
2019-009- the year to record the inventory totaling principles in recording transactions to ensure accurate and the correct entry for the
100(2018) P2.47 million to its corresponding expense proper presentation of account balances in the financial Fully Implemented succeeding period
statements; and
accounts were inconsistent with COA (b) prepare the adjusting entries to correct the Expenses
Circular No. 2015-009 resulting to
accounts and the Accounts Payable account and observe the
overstatement of payable accounts.
correct entry for the succeeding period.
We recommend that Management:
Revenue on Real Property Tax has declined (a) reinforce the deputation of barangay officials to aid the * Municipal
AOM No. Accountant
2019-010- by 16% amounting to P218,235.95 LGU in collecting taxes by setting their specific functions and Please see attached schedule f
100(2018) compared with previous year income responsibilities; Fully Implemented one time big time taxpayer fro
(b) establish system and personnel in-charge of updating the * Municipal Assessor the Municipal Treasurer's Offic
collected indicating low efficiency in the
collections of the RPT, contrary to Section
required records of latest assessment; and
247 of RA 7160, thus depriving the LGU of
(c) intensify the tax campaign by sending treasury personnel
its income which could have been used to to barangay especially during barangay assemblies for tax
finance additional programs/projects had information drive in order to invite more taxpayers to pay
management exerted efforts for higher taxes on time.
amount of collections.

We recommend that Management:

Procurement of hotel accommodation and (a) carefully devise programs on trainings giving
AOM No.
2019-011- transportation services for the GAD training consideration on the austerity measures and saving for
100(2018) government funds; *BAC Chairman Fully Implemented Submitted terminal report as a
cum team building activity totaling P1.404
(b) strictly comply with the prescribed rules and regulations *Municipal Accountant proof/documentation of the
million were paid via cash advances and/or *GAD Focal Person training and team building
piecemeal direct payment to the service on procurement of goods and services; and *Coordinator activity.
providers, contrary to Section 10 of the (c) to submit the training design, proof/documentation of the

Revised Implementing Rules and Regulations training and team building activity conducted, and
justification of non-compliance of procuring services thru
 Procurement of hotel accommodation and Republic of the Philippines
transportation services for the GAD training Province of Camarines Sur
cum team building activity totaling P1.404
LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
million were paid via cash advances and/or
REPORT ON THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
piecemeal direct payment to the service For CY 2018
AOMs/Issue providers, contrary to Section 10 of the (c) to submit the training design, proof/documentation of the
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to be ta
Concern
Revised Implementing Rules and Regulations training and team building activity conducted, and
(RIRR) of Republic Act (RA) No. 9184, thus, justification of non-compliance of procuring services thru
may be suspended/disallowed in Audit. competitive bidding to forestall the issuance of Notices of
Suspension/Disallowance.

The Physical count of Property, Plant and We recommend that Management create an Inventory * Municipal
AOM No. Accountant
2019-12-All Equipment(PPE) was not conducted, thus, Committee and conduct physical inventory of all properties
Funds(2018) out of the PPE accounts with gross book Fully Implemented Conduct physical inventory las
of the Municipal Government and prepare and submit the
value of P260.875 million as of Dec. 31, * Acting GSO Sept., 2019
corresponding reports to the Audit Team as mandated by the
2018, P184.011 million was not validated
above provision. Please see attached executive
and was rendered unreliable, contrary to We also recommend that Management require the
order creating the Property
Section 124 of the New Government Inventory, Appraisal and
reconciliation of the RPCPPE and subsidiary ledgers
Accounting System (NGAS) Manual for Local Disposal Committee
maintained at the Accounting Office and any discrepancy be
Government Units, Volume 1.
investigated and/or appropriate action taken thereon.
We recommend that Management:
LDRRM programs amounting to P5 million or (a) carefully formulate the plans, programs and projects in * Municipal
AOM No. order to properly utilize the budget; and Accountant
2019-13- 58% for prevention and preparedness were
100(2018) not utilized and implemented, contrary to Fully Implemented Please see the attached letter
(b) prioritize the implementation of the programs and * LDRRM Coordinator of the LDRRM Officer III regard
Section 3 of PCW-DILG-DBM-NEDA Joint
projects covered by LDRRMF annual plan and budget to this AOM.
Memorandum Circular 2013-01, due to non-
achieve its objectives.
prioritization of the projects, thus mitigation
and prevention of disaster may not be
achieved.

Occupancy fee, advance rental and security We recommend the Acting Municipal Treasurer to submit a * Municipal
AOM No. Accountant
2019-014- deposit with a total amount of copy of the Report or Summary of the Uncollected Balances
100(2018) approximately P471,013.32 were not Fully Implemented The Municipal Treasurer subm
of the lessees as at CY 2018 to the Office of the Municipal a copy of the Report or Summ
reported as at CY 2018 contrary to Section of the Uncollected Balances to
 Republic of the Philippines
Province of Camarines Sur
LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
REPORT ON THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
Occupancy fee, advance rental and security We recommend the Acting Municipal
ForTreasurer
CY 2018to submit a
AOMs/Issue deposit with a total amount of copy of the Report or Summary of the Uncollected Balances
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to subm
be ta
Concern approximately P471,013.32 were not The Municipal Treasurer
of the lessees as at CY 2018 to the Office of the Municipal a copy of the Report or Summ
reported as at CY 2018 contrary to Section * Acting Municipal of the Uncollected Balances to
Accountant to reflect the true and correct amount of Treasurer Municipal Accountant
112 of PD No. 1445, thus, understanding the
receivables, liability, and income of the LGU as of the period.
Operating Lease Receivables (asset account),
Other Deferred Credits (liability account) We also recommend the Municipal Accountant to prepare an
and Receipt from Market Operations adjusting entry to report the correct balances of the
(income account) of approximately accounts.
P462,806.82, P190,306.82 and P272,500.00,
respectively.
We recommend that Management require the:
Administration of the new public market (a) Public Market Board to formulate measures or actions as
AOM No. The Municipal Treasurer prope
2019-015- operations was not efficiently carried out maybe necessary as to the enforcement of the lease contract *Market Supervisor monitored the billings of charg
100(2018) due to several lapses in monitoring Fully Implemented of the stallholders for the
vis-à-vis the Sipocot Market Code; *Acting Municipal succeeding period.
electricity expenses chargeable to the
Treasurer
stallholder, contrary to the Section 33.1 of (b) Acting Municipal Treasurer to properly monitor the
the Sipocot Market Code, thus resulting to a
*Municipal Accountant
loss of approximately P589,967.00 billings or charges of the stallholders held for collections; and

(c) Municipal Accountant to ensure that receivables of the

unpaid charges or billings are likewise duly accounted for.

We recommended that the Municipal Mayor cause

AAR CY Accounts Payable (AP) totaling P45.85 the submission of the documents of the recorded Fully Implemented
2017 million were not adequately supported Accounts Payable totaling P45.85 million to forestall The Municipal Accountant com
Section 141 of NGAS Manual f
(Restated in CY 2018 and 2016 AAR) the issuance of Notice of Suspension. LGU in recording liability for th
succeeding period
We also recommended that the Municipal Mayor
require the Municipal Accountant to comply with
 Republic of the Philippines
Province of Camarines Sur
LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
REPORT ON THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
For CY 2018
AOMs/Issue
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to be ta
Concern
Section 141 of NGAS Manual for LGU, Volume III, in
recording liability and make the necessary adjustments
for those payables not covered with valid claim

We recommended that Management direct the GSO The Municipal Mayor issue a
AAR CY Payments for the procurement of supplies to prepare the required documents to facilitate Fully Implemented executive order reconstituting
2017 and completed projects were delayed up payment of the recorded Accounts Payable. BAC composition, secretariat a
to more than a year resulting to bad credit Technical working group to
rating of the Municipality We also recommend that the Municipal Mayor require facilitate the proper procurem
the Municipal Accountant adherence to Section 04.s process to avoid delayed paym
of the Manual on NGAS for LGU, Volume I and to make
the necessary adjustments for those payables not Please see attached executive
covered with valid claims. order no. 2019-05
We recommend that management appropriate fund
AAR CY The balance of P2.7 million under the that will finance the titling of the 43 parcels of land Fully Implemented Please see the attached Purch
2017 Land (1 07 01 010) account was understated in the name of the Municipality to confirm its ownership Order for the relocation survey
by at least P29.6million of lot
We also recommended that the Municipality consider
the hiring/procurement of the services of reputable
company that will conduct the survey and facilitate the
fast processing of the Transfer Certificate Title of the
43 parcels of land in the name of the Municipality.

We recommended that the Municipal Mayor, in order

AAR CY Absence of Consolidated APP resulted to to facilitate preparation and consolidation of APP,
2016 the delayed procurement and contributed initiate a workshop wherein all the Heads of each end-
to the incurrence of Accounts Payable user unit of the Municipality shall prepare their respective Fully Implemented The new designated head of th
totaling to P32.2 million as of Dec. 31, 2016. Project Procurement Management Plan (PPMP) for their BAC Secretariat prepared the
different programs, activities, and projects (PAPs). The Consolidated APP from August
PPMP output shall then be submitted to the Budget December 2019.
 Republic of the Philippines
Province of Camarines Sur
LOCAL GOVERNMENT UNIT OF SIPOCOT
Sipocot, Camarines Sur
REPORT ON THE STATUS OF IMPLEMENTATION ON AUDIT OBSERVATIONS AND RECOMMENDATIONS
For CY 2018
AOMs/Issue
Audit Observation Recommendation Persons Responsible Status of Implementation Action taken/Action to be ta
Concern
Officer for her evaluation whether it is within the
approved budget of the corresponding end-user unit.

We also recommended that the Municipal Mayor require

from the Head of the BAC Secretariat the preparation of
the Consolidated APP as prescribed in Section 7 of the
Revised Implementing Rules and Regulations of R.A.
9184 during the year and in the ensuing years.
We recommended and Management agreed to:
AAR CY The procedure in giving Assistance to Please see attached guidelines
the implementation of assistan
2016 Individuals In Crisis Situations (AICS) with Provide guidelines of the AICS program in accord with its to individuals in crisis situation
total disbursements of P1.28 million was objective and allocate petty cash fund that specifically for Fully Implemented SB resolution approving for th
not effectively carried out. AICS releases only to immediately address the needs of establishment of petty cash fu
the beneficiaries; and

require the Municipal Social and Welfare Officer to

strictly monitor the utilization of funds through proper
assessment of families/households per barangay of the
Municipality for immediate reference in extending
financial assistance to the needy individuals.
NDATIONS

Action taken/Action to be taken

Please see the attached letter

of the MENRO regarding this

Prepared and Submit Montlhy

Report and Driver's Trip Ticket to
the Municipal Accountant.
NDATIONS

Action taken/Action to be taken

The Municipal Accountant observe

the correct entry in purchasing fuel
for the succeeding period and
prepared adjusting entry to correct
the Fuel, Oil and Lubricants
Expenses.

The Municipal Accountant

verify/validate to the source
agency

Please see the attached letter

NDATIONS

Action taken/Action to be taken

of the Municipal Engineer &

MPDC regarding this AOM.

Please see the attached SB

Resolution Adopting the
Establishing of LCPC

Please see the attached executive

order reorganizing the LCPC
composition/member to faciltate
NDATIONS

Action taken/Action to be taken

the proper implementation of the

programs and activities.

Please see the attached letter

of the Municipal Agriculturist

Designated new GAD focal group

to facilitate the proper
implementation and utilization of
the budget

Please see attached Executive

NDATIONS

Action taken/Action to be taken

The Municipal Accountant observe

the correct entry for the
succeeding period

Please see attached schedule for

one time big time taxpayer from
the Municipal Treasurer's Office xerox copy

Submitted terminal report as a

proof/documentation of the
training and team building
NDATIONS

Action taken/Action to be taken

Conduct physical inventory last

Please see attached executive

order creating the Property
Inventory, Appraisal and

Please see the attached letter

of the LDRRM Officer III regarding

The Municipal Treasurer submitted xerox Report

a copy of the Report or Summary
of the Uncollected Balances to the
NDATIONS

Action taken/Action to be taken

The Municipal Treasurer properly

monitored the billings of charges
of the stallholders for the
succeeding period.

The Municipal Accountant comply

Section 141 of NGAS Manual for
LGU in recording liability for the
succeeding period
NDATIONS

Action taken/Action to be taken

The Municipal Mayor issue a

executive order reconstituting the
BAC composition, secretariat and
Technical working group to
facilitate the proper procurement
process to avoid delayed payment.

Please see attached executive

Please see the attached Purchase

Order for the relocation survey

The new designated head of the

BAC Secretariat prepared the xerox copy
Consolidated APP from August to
NDATIONS

Action taken/Action to be taken

Please see attached guidelines on

the implementation of assistance
to individuals in crisis situation and
SB resolution approving for the
establishment of petty cash fund