Republic of the Philippines

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City

ANNUAL AUDIT REPORT

on the

City of Trece Martires

Province of Cavite

For the Year Ended December 31, 2017

 EXECUTIVE SUMMARY

Introduction

City Government of Trece Martires was founded on May 24, 1954 by virtue of
Republic Act (RA) No. 981 through the historic effort of then Senator Justiniano
Montano and Congressman Jose T. Cajulis.

On March 31, 1992, President Corazon C. Aquino signed into law RA No. 7325,
amending the City charter and authorizing the conduct of local election in the City. The
first local election was held on May 11, 1992.

Located at the heart of the Province of Cavite, with a land area of 3,917 hectares
and a population of 155,700, the City Government of Trece Martires is the capital of the
Province of Cavite. It is a fourth class city with 13 barangays named after the 13 martyrs
who were sentenced to death on September 11, 1896 during the Spanish Regime.

The City Government of Trece Martires aims to create an environment conducive to

business that promote social, moral and economic development. It seeks to ensure peace
and order by strengthening the functionaries and organizations that play key roles in
maintaining a progressive and peaceful community, promoting programs and projects
that are environmentally sustainable and ensuring that the programs reach the marginal
and indigent members of the community.

The Organizational Structure of the City is as follows:

a. Key Officials

City Mayor : Melandres G. De Sagun

City Vice Mayor : Alexander C. Lubigan
City Accountant : Diomedes C. Bragais
City Treasurer : Ma. Lilibeth F. Baral

Members of the Sangguniang Panlungsod

1. Denver P. Colorado
2. Rona A. Bago
3. Mark Albert L. Montehermoso
4. Manolito S. Villanueva
5. Carlito G. Aure
6. Venancio M. Gatdula
7. Romeo A. De Sagun
8. Jhon Kester Aldrin R. Anacan
9. Melandro G. De Sagun
10. Lamberto M. Lubigan
11. Cornelio L. De Sagun – ABC President

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 b. No. of Personnel Complement

Permanent 391
Casual 42
Elective Officials 13
Co-terminus 14
Total 460

Financial Highlights

For CY 2017, the City Government of Trece Martires generated a total income of
P706,783,158.80 from local taxes, permits and licenses, service and business income and
internal revenue allotment. It has a total appropriation of P946,274,177.13. Of the total
appropriation, P607,054,416.80, was obligated, leaving an unobligated balance of
P339,219,760.33.

The total assets, liabilities, equity, income and expenses for CY 2017 compared
with that of the preceding year are as follows:

Increase/
CY 2017 CY 2016 (Decrease)

Assets 2,229,928,030.80 1,822,712,926.85 407,215,103.95

Liabilities 966,418,936.71 810,532,776.58 155,886,160.13
Equity 1,263,509,094.09 1,012,180,150.27 251,328,943.82
Income 706,783,158.80 601,087,016.98 105,696,141.82
Expenses 472,421,156.67 470,686,319.75 1,734,836.92

Scope of Audit

Financial, compliance and value for money audits were conducted on the accounts
and operations of the City of Trece Martires for CY 2017. The audit was conducted to
ascertain the fairness of the presentation of the financial statements and compliance of the
City with laws, rules and regulations, as well as the economical, efficient and effective
utilization of resources.

Audit Opinion on the Financial Statements

We rendered a qualified opinion on the fairness of the presentation of the

financial statements of the City due to the following observations:

a) Projects which have not yet commenced as of December 31, 2017 amounting
to P32,360,000.00, completed projects totaling P6,248,908.09, and unbilled
balance of unfinished project amounting to P2,886,953.18 or a total of
P41,495,861.27 were included in the outstanding balance of the Construction

ii
 in Progress (CIP) accounts of P202,975,385.77, contrary to COA Circular
No. 2015-009, thus resulting in overstatement of CIP and Accounts Payable
accounts by P41,495,861.27 and P35,246,953.18, respectively, and
understatement of Infrastructure Assets and Other Structures by
P4,750,000.00 and P1,498,908.09, also respectively, at year-end.

b) Accounts Payable were recognized in the books for various claims amounting
to P48,278,243.82 despite lack of proper and sufficient evidence proving the
validity of such claims, contrary to the provision of Section 46 of Presidential
Decree (PD) No. 1177. Moreover, P235,108.04 of this amount has been
outstanding for two years, contrary to Section 98 of PD No. 1445, thus
casting doubt on the validity of the Accounts Payable balance as of year-end.

Significant Observations and Recommendations

For the deficiencies cited above, we recommended that the City Mayor direct the:

a) City Accountant to prepare a Journal Entry Voucher (JEV) to adjust the

balances of the Construction in Progress, the related property, plant and
equipment and payable accounts.

b) City Accountant to ascertain the validity of each and every claim that formed
part of the P48,278,243.82 recognized as Accounts Payable in the books of
the City. Thereafter, revert the amount with no valid claims including the
P235,108.04 thereto, which had been outstanding for more than two years, to
the Unappropriated Surplus account in accordance with Section 98 of PD
No. 1445.

Other significant observations and recommendations are as follows:

1. Concerned City officials and employees continuously disregarded existing

rules and regulations on the grant and liquidation of cash advances, by
granting of additional cash advance when previous cash advance was not yet
settled and drawing cash advances for salaries, wages, allowances, honoraria
and other similar payments that were not equal to the net amount reflected in
the payroll, among others, thereby showing weak internal control over the
handling of cash, which exposed government funds to possible loss or
misuse.

We reiterated our recommendation that the City Mayor direct the OIC-City
Accountant and Accountable Officers to adhere strictly to the provisions of
COA Circular Nos. 97-002 and 2012-004 in the granting, utilization and
liquidation of cash advances.

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2. Delinquent Real Property Tax (RPT) and Special Education Tax (SET) of the
City had accumulated and increased by 4.54 percent from P492,322,844.37 in
Calendar Year (CY) 2016 to P514,662,954.52 in CY 2017, which showed its
inability to enforce the remedies provided under Section 256 of Republic Act
(RA) No. 7160 and its 2012 Revenue Code, thus losing the opportunity to
immediately use the funds for its priority programs and projects and enhance
the delivery of basic services to its constituents.

We reiterated our recommendation that the City Mayor direct the ICO-City
Treasurer to strictly enforce the remedies for the collection of delinquent real
property taxes by administrative action through levy on real property and sale
of real property by public auction or by judicial action as provided for under
Section 2A.45 of the 2012 Revenue Code of Trece Martires City.

3. Out of the P161,718,966.33 appropriation of the 20% Development Fund for

CYs 2012 to 2017, only P36,133,714.99 or 22 percent was utilized, contrary
to Section 5.0 of Department of the Interior and Local Government (DILG)
and Department of Budget and Management (DBM) Joint Memorandum
Circular No. 2011-1 due to lack of proper planning and monitoring of the
implementation of projects, thus depriving the intended beneficiaries of the
prompt and optimum benefits from full utilization of the fund.

We recommended that the City Mayor strictly implement the provisions of

Section 5.0 of DILG and DBM Joint Memorandum Circular No. 2011-1
dated April 13, 2011 and ensure that the implementation of the 20%
Development Fund is in accordance with the timeline indicated in their
Annual Investment Plan (AIP) so that maximum benefits are availed of by the
intended beneficiaries.

We also recommended that the City Mayor direct the:

 City Development Council, City Planning and Development

Coordinator and OIC-City Engineering Office to properly plan the
programs/projects of the 20% Development Fund to avoid delays in
the implementation of programs/projects;

 OIC-City Engineering Office shall ensure that detailed engineering

such as survey and site inspection/investigation are carried out
sufficiently before the preparation of the plans to ensure that the
technical requirements are complete and complied with before
bidding and award of contracts to avoid delays in the construction or
project implementation period; and

 City Development Council and City Planning and Development

Coordinator to review the projects enumerated in the continuing
appropriation and determine whether these are still feasible and
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 priority projects of the City, otherwise, re-program the said projects
together with the unexpended balance of the completed projects with
the concurrence of the Sangguniang Panlungsod, for other
development projects that will address the present needs of the
constituents.

4. Payment for overtime services amounting to P156,290.82 were granted to the

City Officials whose positions are higher than that of a Division Chief,
contrary to Section 7.1 of the Civil Service Commission (CSC) and
Department of Budget and Management (DBM) Joint Circular No. 02,
s. 2015, thus considered as an irregular expense.

We recommended that the City Mayor direct the City Accountant, Assistant
City Treasurer, City Health Officer, City Planning and Development
Coordinator and Executive Assistant V to refund the respective amount of
overtime pay they received totaling P125,465.46, net of refunded amount of
P 30,825.36.

5. Welfare goods purchased out of the Local Disaster Risk Reduction and
Management Fund (LDRRMF) amounting to P4,600,915.00 could not be
accounted as the proof of distribution were not submitted nor attached to the
disbursement voucher (DV), contrary to Section 4 (6) of Presidential Decree
(PD) No. 1445, thereby casting doubt on the propriety of the transactions.
Furthermore, purchase of these welfare goods were taken up as direct expense
instead of inventory account, as required under Commission on Audit (COA)
Circular Nos. 2014-002 and 2015-009.

We recommended that the City Mayor direct the:

 Submission to the Audit Team of a copy of the Resolution or

Ordinance enacted by the Sangguniang Panlungsod ratifying the
release and use of P1,517,240.00 to purchase 644 cavans of rice
chargeable against the 30% QRF of the City. Henceforth, adherence to
paragraph 6.6.3 of NDRRMC-DBM-DILG Joint Memorandum
Circular No. 2013-1 is enjoined to ensure proper use of public funds;

 City Disaster Risk Reduction Management Officer and City Social

Welfare Development Officer to provide to the Audit Team the
Distribution List of the above subject purchases duly acknowledged by
the actual beneficiaries/recipients to attest to the veracity of the fund
utilization and avoid the issuance of Notice of Suspension.
Henceforth, all assistance extended or goods distributed to the
intended beneficiaries be properly documented to ensure that the
resources of the government are managed and utilized in accordance
with the established rules and regulations; and

v
  City Accountant and the General Services Officer to comply with the
accounting and reporting guidelines on the utilization of the LDRRMF
prescribed under COA Circular Nos. 2014-002 and 2015-009 dated
April 15, 2014 and December 1, 2015, respectively, to ensure the
correctness and reliability of the financial reporting of the City.

6. School supplies and erasable books purchased amounting to P1,184,027.50

and P739,603.15, respectively, could not be accounted as the proof of
distribution were not submitted nor attached to the disbursement voucher
(DV), contrary to Section 4 (6) of Presidential Decree (PD) No. 1445.
Likewise, inconsistencies in the procurement of school supplies were also
noted, thus casting doubt on the validity and propriety of the transactions.
Moreover, purchases of the above amount of school supplies and total
number of erasable books for distribution amounting to P1,989,250.00 were
recorded as outright expense and Property Plant and Equipment (PPE),
respectively, instead of the proper inventory accounts as required under
Commission on Audit (COA) Circular No. 2015-009, thus resulting in the
understatement of inventory at the time of purchase by P1,184,027.50 and
overstatement of PPE and government equity accounts each by
P1,989,250.00.

We recommended that the City Mayor direct the:

 City Administrator to provide to the Audit Team the Distribution List

of the school supplies and erasable books worth P1,184,027.50 and
P739,603.15, respectively, duly acknowledged by the actual
beneficiaries/recipients to attest to the veracity of the disbursements
and avoid the issuance of Notice of Suspension. Henceforth, all
supplies and materials distributed to intended beneficiaries be
properly documented to ensure that the resources of the government
are managed and utilized in accordance with the established rules and
regulations;

 Bids and Awards Committee (BAC) and other concerned officials to

provide/submit justifiable reasons for the inconsistencies between the
dates and reference numbers in the purchase of school supplies worth
P1,184,027.50 for evaluation by the Audit Team, otherwise, the
payment made may be suspended/disallowed in audit;

 City Social Welfare and Development Officer to be the one in charge

of determining and requesting for the appropriate instructional
materials for day care children to avoid wastage of government funds;

 City General Services Officer to be in charge of the acceptance of all

purchases of goods as property custodianship, recording and
maintaining of property records are among the functions of his Office;
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  City Accountant and the General Services Officer to comply with the
accounting and reporting requirements prescribed under COA Circular
No. 2015-009 dated December 1, 2015 to ensure the correctness and
reliability of the financial reporting of the City; and

 City Accountant to draw a Journal Entry Voucher to adjust the

overstatement of the PPE and Government Equity accounts each by
P1,989,250.00.

7. An aggregate amount of P11,805,000.00 from the Local Government Support

Fund (LGSF) and Bottom-up Budgeting (BuB) support funds received from
the different National Government Agencies (NGAs) remained unutilized as
of December 31, 2017, thus failing to realize the purposes for which the funds
were received and ultimately depriving the constituents of the immediate
enjoyment of the intended benefits that could be derived therefrom.

We recommended that the City Mayor direct the responsible focal persons to
expedite the implementation of BuB funded projects. Likewise, direct the
City Development Council and City Planning and Development Coordinator
to include in the City’s Investment Plan/Program the counterpart of the City
Government for the Construction of Agtas Bridge at Aguado-Cabuco Road
and submit the same to the Sangguniang Panlungsod for approval. After
which, provide appropriation for the additional funds to implement such
projects.

8. The City’s revised Ten-Year Solid Waste Management Plan (SWMP) for
the years 2015-2024 was not yet approved by the National Solid Waste
Management Commission (NSWMC) due to non-submission of the copy of
contract with private hauler and/or sanitary landfill, safe closure and
rehabilitation plan for the open dumpsite duly acknowledged by the
Environmental Management Bureau (EMB) Regional Office and complete
data on Chapters 11 and 12 on the Ten-Year SWMP to the NSWMC, thus
delaying the implementation of an efficient solid waste management program.

We recommended that the City Mayor direct the:

 City Legal Officer to hasten the review of the revised Ten-Year Solid
Waste Management Plan of the City and submit the same to the
Sangguniang Panlungsod for approval; and

 OIC-CENRO that as soon as the SWMP is approved by the

Sangguniang Panlungsod, submit immediately the same together with
the required documents to the NSWMC for approval.

vii
 9. The designation of an Architect as Officer in Charge (OIC) of the City
Engineering Office in place of a duly appointed City Engineer who was
assigned to undertake other functions is contrary to the provisions of Section
477 of the Republic Act (RA) No. 7160, known as The Local Government
Code of 1991, that could result in the non-efficient performance of the duties
and functions of a City Engineer.

We recommended that the City Mayor designate a duly licensed Civil

Engineer to head the City Engineering Office in compliance with Section 477
of RA No. 7160.

10. A Gender and Development (GAD) Database containing information crucial

in gender responsive planning, programming and policy formulation was not
established and maintained by the City, contrary to Section 4.1.B.1 of Joint
Memorandum Circular No. 2013-01 of the Philippine Commission on
Women (PCW), Department of the Interior and Local Government (DILG),
Department of Budget and Management (DBM) and National Economic and
Development Authority (NEDA), thus giving no assurance that all programs,
projects and activities (PPAs) integrated in the GAD Plan and Budget
addressed the gender issues and concern in the locality to the disadvantage of
the intended beneficiaries. Moreover, activities which are not GAD-related
were included in the Annual GAD Plan and Budget for CY 2017.

We recommended that the City Mayor as the Chairman of GAD Focal Point
System (GFPS) initiate the establishment and maintenance of a GAD
Database that is compliant with all the requirements and features provided
for in the above-quoted Joint Memorandum Circular and direct the Technical
Working Group (TWG) or Secretariat, which is composed of the different
offices within the City, to actively participate in its development.

We also recommended the City officials and employees undergo more

capacity trainings and programs on GAD, which shall include but not limited
to gender sensitivity training (GST), gender responsive planning and
budgeting, gender analysis, gender audit and GAD tools for them to be
capacitated on GAD.

Status of Implementation of Prior Year’s Audit Recommendations

Of the 25 audit recommendations contained in the 2016 Annual Audit report, ten
were fully implemented, eight were partially implemented and seven were not
implemented.

viii
 TABLE OF CONTENTS

PART SUBJECT PAGE

I AUDITED FINANCIAL STATEMENTS

o Independent Auditor’s Report 1

o Statement of Management’s Responsibility for
Financial Statements 3
o Statement of Financial Position 4
o Statement of Financial Performance 5
o Statement of Changes in Net Asset/Equity 6
o Statement of Cash Flows, All Funds 7
o Statement of Comparison of Budget and Actual Amounts 8
o Notes to Financial Statements 10

II OBSERVATIONS AND RECOMMENDATIONS 49

III STATUS OF IMPLEMENTATION OF PRIOR YEAR’S 82

AUDIT RECOMMENDATIONS

IV ANNEXES

Annex 1 - Statement of Financial Position, By Fund 98

Annex 2 - Statement of Financial Performance, By Fund 103
Annex 3 - Statement of Changes of Net Assets/Equity, By Fund 109
Annex 4 - Statement of Cash Flows, By Fund 110
Annex 5 - Statement of Comparison of Budget and Actual Amounts,
By Fund 112
Annex 6 - Schedule of Construction in Progress 116
Annex 7 - Schedule of Accounts Payable Without Sufficient
Documents 118
Annex 8 - Schedule of Officials who were Granted Additional Cash
Advances Despite Non-Settlement of Previous Cash
Advances 119
Annex 9 - Schedule of Cash Advances with Delayed Liquidation 120
Annex 10 - Schedule of Delinquent Real Property Taxes 121
Annex 11 - Utilization of 20% Development Fund 123
Annex 12 - List of Projects that could not yet be Implemented 127
Annex 13 - Sample of Erasable Book Distributed to Day Care
Children 128
Annex 14 - Schedule of Programs and Projects Without Specific
Gender Issues 132
 PART I

AUDITED FINANCIAL STATEMENTS

 City Government of Trece Martires
Province of Cavite
Statement of Financial Position
All Funds
As of December 31, 2017
(With Comparative Figures for CY 2016)

Note 2017 2016

ASSETS
Current Assets
Cash and Cash Equivalents 4 P 615,346,480.89 P 355,313,759.62
Receivables 5 515,150,183.50 495,257,352.83
Inventories 6 1,460,968.20 1,184,503.08
Prepayments and Deferred Charges 7 20,391,702.52 29,296,978.53
Total Current Assets 1,152,349,335.11 881,052,594.06

Non-Current Assets
Investment Property 8 37,507,278.52 37,507,278.52
Property, Plant and Equipment 9 1,039,617,840.17 903,699,477.27
Biological Assets 10 453,577.00 453,577.00
Total Non-Current Assets 1,077,578,695.69 941,660,332.79
TOTAL ASSETS P 2,229,928,030.80 P 1,822,712,926.85

LIABILITIES
Current Liabilities
Financial Liabilities 11 107,019,588.00 105,291,046.97
Inter-Agency Payables 12 58,695,360.17 12,124,829.37
Intra-Agency Payables 13 10,020.00 298,449.20
Trust Liabilities 14 32,630,013.47 20,571,626.33
Deferred Credits/Unearned Income 15 572,519,814.13 539,044,884.48
Other Payables 16 34,192,908.75 17,621,886.62
Total Current Liabilities 805,067,704.52 694,952,722.97

Non-Current Liabilities
Financial Liabilities 11 161,351,232.19 115,580,053.61
Total Non-Current Liabilities 161,351,232.19 115,580,053.61
TOTAL LIABILITIES 966,418,936.71 810,532,776.58

NET ASSETS/EQUITY
Government Equity 1,263,509,094.09 1,012,180,150.27

TOTAL LIABILITIES AND NET ASSETS/EQUITY P 2,229,928,030.80 P 1,822,712,926.85

(See accompanying Notes to Financial Statements)

4
 City Government of Trece Martires
Province of Cavite
Statement of Financial Performance
All Funds
For the Year Ended December 31, 2017
(With Comparative Figures for CY 2016)

Note 2017 2016

REVENUE
Tax Revenue 17 P 210,030,962.28 P 193,513,991.11
Share from Internal Revenue Collections 18 429,737,118.00 336,290,390.40
Service and Business Income 19 66,830,490.40 60,155,294.29
Total Revenue 706,598,570.68 589,959,675.80

Less: Current Operating Expenses

Personnel Services 20 170,436,824.61 167,331,283.38
Maintenance and Other Operating Expenses 21 198,871,775.90 215,747,793.68
Financial Expenses 22 8,719,856.64 5,108,376.83
Non-Cash Expenses 23 79,861,138.41 74,709,285.46
Total Current Operating Expenses 457,889,595.56 462,896,739.35

Surplus (Deficit) from Current Operation 248,708,975.12 127,062,936.45

Add (Deduct)
Transfers, Assistance and Subsidy to 24 (13,216,875.75) (3,837,405.96)
Other Non-Operating Income/(Loss) 25 (1,130,097.24) 7,175,166.74
SURPLUS (DEFICIT) FOR THE PERIOD P 234,362,002.13 P 130,400,697.23

(See accompanying Notes to Financial Statements)

5
 City Government of Trece Martires
Province of Cavite
Statement of Changes in Net Assets/Equity
All Funds
For the Year Ended December 31, 2017
(With Comparative Figures for CY 2016)

Note 2017 2016

Balance at January 1 P 1,012,180,150.27 P 856,303,893.27

Add (Deduct)
Prior Period Errors 26 16,402,969.69 10,248,381.41
Restated Balance 1,028,583,119.96 866,552,274.68
Add (Deduct) Changes in Net Assets/Equity
during the year
Adjustment of Net Revenue Recognized directly in
Net Assets/Equity 27 563,972.00 15,227,178.36
Surplus (Deficit) for the period 234,362,002.13 130,400,697.23
Total Changes during the year 234,925,974.13 145,627,875.59
Balance as of December 31 P 1,263,509,094.09 P 1,012,180,150.27

(See accompanying Notes to Financial Statements)

6
 City Government of Trece Martires
Province of Cavite
Statement of Cash Flows
All Funds
For the Year Ended December 31, 2017
(With Comparative Figures for CY 2016)

Note 2017 2016

Cash Flows from Operating Activities

Cash Inflows
Collection from Taxpayers P 208,202,528.30 P 193,513,991.11
Share from Internal Revenue Allotment (IRA) 429,737,118.00 329,647,784.00
Receipts from Business/Service Income 38,692,212.00 58,959,035.14
Interest Income 1,373,772.04 1,196,259.15
Other Receipts 28 68,758,788.48 372,312,051.11
Total Cash Inflows 746,764,418.82 955,629,120.51
Cash Outflows
Payment to Suppliers and Creditors 62,293,828.67 211,257,713.68
Payment to Employees 235,013,192.30 167,331,283.38
Interest Expense 8,053,153.64 2,093,023.79
Other Payments 29 37,336,058.23 368,341,265.90
Total Cash Outflows 342,696,232.84 749,023,286.75
Net Cash Flows from Operating Activities 30 404,068,185.98 206,605,833.76
Cash Flows from Investing Activities
Cash Inflows
Proceeds from Sale/Disposal of Property,
Plant and Equipment 108,167.50 -
Cash Outflows
Purchase/Construction of Property, Plant
and Equipment 201,445,033.32 186,336,152.83
Net Cash Flows from Investing Activities (201,336,865.82) (186,336,152.83)
Cash Flows from Financing Activities
Cash Inflows
Proceeds from Loans 70,353,188.86 125,330,712.74
Cash Outflows
Payment of Loan Amortization 13,051,787.75 11,995,522.35
Net Cash Flows from Financing Activities 57,301,401.11 113,335,190.39
Total Cash Provided by Operating, Investing
and Financing Activities 260,032,721.27 133,604,871.32
Add: Cash at the Beginning of the Year 355,313,759.62 221,708,888.30
Cash at the End of the Year 4 P 615,346,480.89 P 355,313,759.62

(See accompanying Notes to Financial Statements)

7
 City Government of Trece Martires
Statement of Comparison of Budget and Actual Amounts
All Funds
For the Year Ended December 31, 2017

Difference
Budgeted Amounts Original and Difference Final
Original Final Final Budget Actual Amounts Budget and Actual
Revenue
A. Local Taxes
1. Tax Revenue
a. Tax Revenue-Property P 103,530,778.50 P 103,530,778.50 P - P 90,177,297.73 P 13,353,480.77
b. Tax Revenue-Goods and Services 95,088,000.00 95,088,000.00 - 109,537,804.54 (14,449,804.54)
c. Other Local Taxes 8,780,000.00 8,780,000.00 - 10,315,860.01 (1,535,860.01)
Total Tax Revenue 207,398,778.50 207,398,778.50 - 210,030,962.28 (2,632,183.78)
2. Non-Tax Revenue
a. Service Income 27,867,000.00 27,867,000.00 - 26,876,699.83 990,300.17
b. Business Income 28,236,724.00 28,236,724.00 - 30,423,415.47 (2,186,691.47)
c. Other Income and Receipts 7,685,000.00 7,685,000.00 - 9,687,913.22 (2,002,913.22)
Total Non-Tax Revenue 63,788,724.00 63,788,724.00 - 66,988,028.52 (3,199,304.52)
B. External Sources
1. Share from the National Internal Revenue
Taxes (IRA) 429,737,118.00 429,737,118.00 - 429,737,118.00 -
C. Receipts from Borrowings - - - 71,019,891.86 (71,019,891.86)
Total Revenues and Receipts 700,924,620.50 700,924,620.50 - 777,776,000.66 (76,851,380.16)

Expenditures
General Public Services
Personnel Services 133,000,466.31 133,000,466.31 - 109,859,664.12 23,140,802.19
Maintenance and Other Operating Expenses 194,441,888.39 194,441,888.39 - 146,039,733.08 48,402,155.31
Capital Outlay 51,795,000.00 51,795,000.00 - 31,428,742.53 20,366,257.47
Education
Personnel Services 7,094,000.00 7,094,000.00 - 4,775,941.34 2,318,058.66
Maintenance and Other Operating Expenses 35,816,810.04 35,816,810.04 - 18,989,406.54 16,827,403.50
Capital Outlay 22,200,000.00 22,200,000.00 - 9,578,270.00 12,621,730.00
Social Services and Social Welfare
Personnel Services 34,738,995.97 34,738,995.97 - 26,604,283.94 8,134,712.03
Maintenance and Other Operating Expenses 15,363,390.14 15,363,390.14 - 9,843,649.85 5,519,740.29
Capital Outlay 1,620,000.00 1,620,000.00 - 1,210,687.50 409,312.50
Economic Services
Personnel Services 34,676,317.55 34,676,317.55 - 28,193,607.00 6,482,710.55
Maintenance and Other Operating Expenses 22,033,000.00 22,033,000.00 - 14,661,324.32 7,371,675.68
Capital Outlay 17,940,000.00 17,940,000.00 - 16,046,000.00 1,894,000.00
Other Purposes
Debt Service
Financial Expense 8,866,703.00 8,866,703.00 - 8,719,856.64 146,846.36
20% Development Fund
Maintenance and Other Operating Expenses 20,000,000.00 20,000,000.00 - 13,051,787.75 6,948,212.25
Capital Outlay 65,947,423.60 65,947,423.60 - 34,600,000.00 31,347,423.60
City Disaster Risk Reduction and
Management Fund
Maintenance and Other Operating Expenses 16,208,234.91 16,208,234.91 - 16,208,234.91 -
Capital Outlay 16,900,000.00 16,900,000.00 - 7,230,000.00 9,670,000.00
Senior Citizens & Persons with Disabilities
Personnel Services 950,000.00 950,000.00 - 819,000.00 131,000.00
Maintenance and Other Operating Expenses 9,270,000.00 9,270,000.00 - 6,622,768.07 2,647,231.93
Capital Outlay 150,000.00 150,000.00 - 115,000.00 35,000.00
Others
Personal Services 1,388,278.33 1,388,278.33 - 184,328.21 1,203,950.12
Total Current Legislative Appropriation 710,400,508.24 710,400,508.24 - 504,782,285.80 205,618,222.44

8
 Difference
Budgeted Amounts Original and Difference Final
Original Final Final Budget Actual Amounts Budget and Actual
Continuing Appropriations
General Public Services
Capital Outlay 227,900,858.89 227,900,858.89 - 98,772,131.00 129,128,727.89
Education
Capital Outlay 7,972,810.00 7,972,810.00 - 3,500,000.00 4,472,810.00
Total Continuing Appropriations 235,873,668.89 235,873,668.89 - 102,272,131.00 133,601,537.89
Total 946,274,177.13 P 946,274,177.13 - 607,054,416.80 339,219,760.33
Surplus (Deficit) for the period P (245,349,556.63) (245,349,556.63) P - P 170,721,583.86 P (416,071,140.49)

Recapitulations
Personnel Services P 211,848,058.16 P 211,848,058.16 P - P 170,436,824.61 P 41,411,233.55
Maintenance and Other Operating Expenses 313,133,323.48 313,133,323.48 - 225,416,904.52 87,716,418.96
Capital Outlay 412,426,092.49 412,426,092.49 - 202,480,831.03 209,945,261.46
Financial Expense 8,866,703.00 8,866,703.00 - 8,719,856.64 146,846.36
Total P 946,274,177.13 P 946,274,177.13 P - P 607,054,416.80 P 339,219,760.33

9
 Notes to Financial Statements

1. Profile

Trece Martires City is the capital of the Province of Cavite, and it is composed of 13
dynamic and fast developing barangays named after the 13 martyrs.

The City was founded on May 24, 1954 by virtue of Republic Act (RA) No. 981
through the historic effort of then Senator Justiniano Montano and Congressman Jose
T. Cajulis.

On March 31, 1992, President Corazon C. Aquino signed into law RA No. 7325
amending the City charter by providing for the holding of local election in the City.
Pursuant to this law, the first local election was held on May 11, 1992. It was
classified as a fourth class city under Memorandum Circular No. 97-2 dated April 20,
1997 by the Bureau of Local Government Finance (BLGF).

The City maintains three funds, namely: the General, Special Education and Trust
Funds.

It also maintains four special accounts under the General Fund consisting of the Trece
Martires City College, Market, Slaughterhouse and the 20% Development Fund.

2. Statement of Compliance and Basis of Preparation of Financial Statements

The consolidated financial statements have been prepared in accordance with and
comply with the Philippine Public Sector Accounting Standards (PPSAS) issued by
the Commission on Audit (COA) per COA Resolutions No. 2014-003 and 2015-009
dated January 24, 2014 and March 9, 2015, respectively, and Revised Charts of
Accounts for Local Government Units (RCALGU) issued under COA Circular
No. 2015-009 dated December 1, 2015.

The consolidated financial statements have been prepared on the basis of historical
cost, unless stated otherwise. The Statement of Cash Flows is prepared using the
direct method.

3. Summary of Significant Accounting Policies

3.1 Basis of Accounting

The consolidated financial statements are prepared on an accrual basis in

accordance with the PPSAS.

10
3.2 Revenue Recognition

Revenue from Non-Exchange Transactions

Taxes, Fees and Fines

The City Government of Trece Martires recognizes revenues from taxes and fines
when the event occurs and the asset recognition criteria are met. To the extent that
there is a related condition attached that would give rise to a liability to repay the
amount, liability is recognized instead of revenue. Other non-exchange revenues
are recognized when it is improbable that the future economic benefit or service
potential associated with the asset will flow to the entity and the fair value of the
asset can be measured reliably.

Transfers from Other Government Entities

Revenues from non-exchange transactions with other government entities are

measured at fair value and recognized on obtaining control of the asset (cash,
goods, services and property) if the transfer is free from conditions and it is
probable that the economic benefits or service potential related to the asset will
flow to the City and can be measured reliably.

Revenue from Exchange Transactions

Rendering of Services

The City recognizes revenue from rendering of services by reference to the stage
of completion when the outcome of the transaction can be estimated reliably. The
stage of completion is measured by reference to labor hours incurred to date as a
percentage of total estimated labor hours.

Where the contract outcome cannot be measured reliably, revenue is recognized

only to the extent that the expenses incurred.

Sale of Goods

Revenue from the sale of goods is recognized when the significant risks and
rewards of ownership have been transferred to the buyer, usually on delivery of
the goods and when the amount of revenue can be measured reliably and it is
probable that the economic benefits or service potential associated with the
transaction will flow to the City.

Interest Income

Interest income is accrued using the effective yield method. The effective yield
discounts estimated future cash receipts through the expected life of the financial

11
 asset to that asset’s net carrying amount. The method applies this yield to the
principal outstanding to determine interest income each period.

Rental Income

Rental income arising from operating leases on investment properties is accounted

for on a straight-line basis over the lease terms and included in revenue.

3.3 Investment Property

Investment properties are measured initially at cost, including transaction costs.

The carrying amount includes the replacement cost of components of an existing
investment property at the time that cost is incurred if the recognition criteria are
met and excludes the costs of day-to-day maintenance of an investment property.

Investment property acquired through a non-exchange transaction is measured at

its fair value at the date of acquisition. Subsequent to initial recognition,
investment properties are measured using the cost model and are either
depreciated over its economic life or subjected to impairment losses.

Investment properties are derecognized either when they have been disposed of or
when the investment property is permanently withdrawn from use and no future
economic benefit or service potential is expected from its disposal. The difference
between the net disposal proceeds and the carrying amount of the asset is
recognized in the surplus or deficit in the period of derecognition. Transfers are
made to or from investment property only when there is a change in use.

3.4 Property, Plant and Equipment

All property, plant and equipment are stated at cost less accumulated depreciation
and impairment losses. Cost includes expenditure that is directly attributable to
the acquisition of the items. When significant parts of Property, Plant and
Equipment are required to be replaced at intervals, the City recognizes such parts
as individual assets with specific useful lives and depreciates them accordingly.
Likewise, when a major inspection is performed, its cost is recognized in the
carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognized in
surplus or deficit as incurred. Where an asset is acquired in a non-exchange
transaction for nil or nominal consideration, the asset is initially measured at its
fair value.

Depreciation on assets is charged on a straight-line basis over the useful life of the
asset. Depreciation is charged at rates calculated to allocate cost or valuation of
the asset less any estimated residual value over its remaining useful life.

The assets’ residual values and useful lives are reviewed and adjusted
prospectively, if appropriate, at the end of each reporting period. An asset’s
12
 carrying amount is written down immediately to its recoverable amount, or
recoverable service amount, if the asset’s carrying amount is greater than its
estimated recoverable amount or recoverable service amount.

The City derecognizes items of property, plant and equipment and/or any
significant part of an asset upon disposal or when no future economic benefits or
service potential is expected from its continuing use. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the surplus or deficit
when the asset is derecognized.

Public Infrastructures were not previously recognized in the books. The City
availed of the five-year transitional provision for the recognition of the Public
Infrastructure. For the first year of implementation of the PPSAS, the City will
not recognize the Public Infrastructure in the books of accounts.

3.5 Leases

LGU as a Lessee

Finance leases are leases that transfer substantially all of the risks and benefits
incidental to ownership of the leased item to the City. Assets held under a finance
lease are capitalized at the commencement of the lease at the fair value of the
leased property or, if lower, at the present value of the future minimum lease
payments. The City also recognizes the associated lease liability at the inception
of the lease. The liability recognized is measured as the present value of the future
minimum lease payments at initial recognition. Subsequent to initial recognition,
lease payments are apportioned between finance charges and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance
of the liability. Finance charges are recognized as finance costs in surplus or
deficit.

An asset held under a finance lease is depreciated over the useful life of the asset.
However, if there is no reasonable certainty that the City will obtain ownership of
the asset by the end of the lease term, the asset is depreciated over the shorter of
the estimated useful life of the asset and the lease term.

Operating leases are leases that do not transfer substantially all the risks and
benefits incidental to ownership of the leased item to the City. Operating lease
payments are recognized as an operating expense in surplus or deficit on a
straight-line basis over the lease term.

LGU as a Lessor

Leases in which the City does not transfer substantially all the risks and benefits
of ownership of an asset are classified as operating leases. Initial direct costs

13
 incurred in negotiating an operating lease are added to the carrying amount of the
leased asset and recognized over the lease term.

Rent received from an operating lease is recognized as income on a straight-line

basis over the lease term. Contingent rents are recognized as revenue in the period
in which they are earned.

3.6 Intangible Assets

Intangible assets acquired separately are initially recognized at cost. The cost of
intangible assets acquired in a non-exchange transaction is their fair value at the
date of the exchange. Following initial recognition, intangible assets are carried at
cost less any accumulated amortization and accumulated impairment losses.
Internally generated intangible assets, excluding capitalized development costs,
are not capitalized and expenditure is reflected in surplus or deficit in the period
in which the expenditure is incurred.

The useful life of the intangible assets is assessed as either finite or indefinite.
Intangible assets with a finite life are amortized over its useful life. Software is
amortized for 10-20 years.

Intangible assets with a finite useful life are assessed for impairment whenever
there is an indication that the asset may be impaired. The amortization period and
the amortization method, or an intangible asset with a finite useful life, are
reviewed at the end of each reporting period. Changes in the expected useful life
or the expected pattern of consumption of future economic benefits embodied in
the asset are considered to modify the amortization period or method, as
appropriate, and are treated as changes in accounting estimates. The amortization
expense on an intangible asset with a finite life is recognized in surplus or deficit
as the expense category that is consistent with the nature of the intangible asset.

Gains or losses arising from derecognition of an intangible asset are measured as

the difference between the net disposal proceeds and the carrying amount of the
asset and are recognized in the surplus or deficit when the asset is derecognized.

Research and Development Cost

Research costs when incurred are treated as expenses. Development costs on an

individual project are recognized as intangible assets when the Agency can
demonstrate:

a) The technical feasibility of completing the asset so that the asset will
be available for use or sale;

b) Its intention to complete and its ability to use or sell the asset;

14
 c) How the asset will generate future economic benefits or service
potential;

d) The availability of resources to complete the asset; and

e) The ability to measure reliably the expenditure during development.

Following initial recognition of an asset, the asset is carried at cost less any
accumulated amortization and accumulated impairment losses. Amortization of
the asset begins when development is complete and the asset is available for use.
It is amortized over the period of expected future benefit. During the period of
development, the asset is tested for impairment annually with any impairment
losses recognized immediately in surplus or deficit.

3.7 Impairment of Non-Financial Assets

Impairment of Cash-Generating Assets

At each reporting date, the City assesses whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing
for an asset is required, the City estimates the asset’s recoverable amount. An
asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s
fair value less costs to sell and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent
of those from other assets or groups of assets.

Where the carrying amount of an asset or the cash-generating unit (CGU) exceeds
its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs to sell, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate
valuation model is used.

Impairment losses of continuing operations, including impairment on inventories,

are recognized in the statement of financial performance in those expense
categories consistent with the nature of the impaired asset.

For assets, an assessment is made at each reporting date as to whether there is any
indication that previously recognized impairment losses may no longer exist or
may have decreased. If such indication exists, the City estimates the asset’s or
cash-generating unit’s recoverable amount. A previously recognized impairment
loss is reversed only if there has been a change in the assumptions used to
determine the asset’s recoverable amount since the last impairment loss was
recognized. The reversal is limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the carrying amount that would
15
 have been determined, net of depreciation, had no impairment loss been
recognized for the asset in prior years. Such reversal is recognized in surplus or
deficit.

Impairment of Non-Cash-Generating Assets

The City assesses at each reporting date whether there is an indication that a non-
cash-generating asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the City estimates the asset’s
recoverable service amount. An asset’s recoverable service amount is the higher
of the non-cash generating asset’s fair value less costs to sell and its value in use.

Where the carrying amount of an asset exceeds its recoverable service amount,
the asset is considered impaired and is written down to its recoverable service
amount.

3.8 Financial Instruments

Financial Assets

Initial Recognition and Measurement

Financial assets are classified as financial assets at fair value through surplus or
deficit, loans and receivables, held-to-maturity investments or available-for-sale
financial assets, as appropriate. The City determines the classification of its
financial assets at initial recognition.

Purchases or sales of financial assets that require delivery of assets within a time
frame established by regulation or convention in the marketplace (regular way
trades) are recognized on the trade date, i.e., the date that the City commits to
purchase or sell the asset.

The financial assets include: cash and short-term deposits; trade and other
receivables; loans and other receivables and quoted and unquoted financial
instruments.

Subsequent Measurement

The subsequent measurement of financial assets depends on their classification.

Financial Assets at Fair Value through Surplus or Deficit

Financial assets at fair value through surplus or deficit include financial assets
held for trading and financial assets designated upon initial recognition at fair
value through surplus and deficit. Financial assets are classified as held for
trading if they are acquired for the purpose of selling or repurchasing in the near
term. Financial assets at fair value through surplus or deficit are carried in the
16
statement of financial position at fair value with changes in fair value recognized
in surplus or deficit.

Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or

determinable payments that are not quoted in an active market. After initial
measurement, such financial assets are subsequently measured at amortized cost
using the effective interest method, less impairment. Amortized cost is calculated
by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the effective interest rate. Losses arising from
impairment are recognized in the surplus or deficit.

Held-to-Maturity

Non-derivative financial assets with fixed or determinable payments and fixed

maturities are classified as held-to-maturity when the City has the positive
intention and ability to hold it to maturity. After initial measurement, held-to-
maturity investments are measured at amortized cost using the effective interest
method, less impairment. Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of
the effective interest rate. The losses arising from impairment are recognized in
surplus or deficit.

Derecognition

The City derecognizes a financial asset or, where applicable, a part of a financial
asset or part of a group of similar financial assets when:

a) The rights to receive cash flows from the asset have expired or is
waived;

b) The City has transferred its rights to receive cash flows from the asset
or has assumed an obligation to pay the received cash flows in full
without material delay to a third party; and either: (a) has transferred
substantially all the risks and rewards of the asset; or (b) has neither
transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

Impairment of Financial Assets

The City assesses at each reporting date whether there is objective evidence that a
financial asset or a group of financial assets is impaired. A financial asset or a
group of financial assets is deemed to be impaired if, there is objective evidence
of impairment as a result of one or more events that has occurred after the initial
recognition of the asset (an incurred ‘loss event’) and that loss event has an

17
impact on the estimated future cash flows of the financial asset or the group of
financial assets that can be reliably estimated. Evidence of impairment may
include the following indicators:

a) The debtors or a group of debtors are experiencing significant financial

difficulty;

b) Default or delinquency in interest or principal payments;

c) The probability that debtors will enter bankruptcy or other financial

reorganization; and

d) Observable data indicates a measurable decrease in estimated future

cash flows (e.g. changes in arrears or economic conditions that
correlate with defaults).

Financial Assets Carried at Amortized Cost

For financial assets carried at amortized cost, the City first assesses whether
objective evidence of impairment exists individually for financial assets that are
individually significant, or collectively for financial assets that are not
individually significant. If the City determines that no objective evidence of
impairment exists for an individually assessed financial asset, whether significant
or not, it includes the asset in a group of financial assets with similar credit risk
characteristics and collectively assesses them for impairment. Assets that are
individually assessed for impairment and for which an impairment loss is, or
continues to be, recognized are not included in a collective assessment of
impairment.

If there is objective evidence that an impairment loss has been incurred, the
amount of the loss is measured as the difference between the assets carrying
amount and the present value of estimated future cash flows (excluding future
expected credit losses that have not yet been incurred). The present value of the
estimated future cash flows is discounted at the financial asset’s original effective
interest rate. If a loan has a variable interest rate, the discount rate for measuring
any impairment loss is the current effective interest rate.

The carrying amount of the asset is reduced through the use of an allowance
account and the amount of the loss is recognized in surplus or deficit. If, in a
subsequent year, the amount of the estimated impairment loss increases or
decreases because of an event occurring after the impairment was recognized, the
previously recognized impairment loss is increased or reduced by adjusting the
allowance account. If a future write-off is later recovered, the recovery is credited
to finance costs in surplus or deficit.

18
Financial Liabilities

Initial Recognition and Measurement

Financial liabilities within the scope of IPSAS 29 are classified as financial

liabilities at fair value through surplus or deficit or loans and borrowings, as
appropriate. The City determines the classification of its financial liabilities at
initial recognition.

All financial liabilities are recognized initially at fair value and, in the case of
loans and borrowings.

The financial liabilities include trade and other payables, bank overdrafts, loans
and borrowings.

Subsequent Measurement

The measurement of financial liabilities depends on their classification.

Financial Liabilities at Fair Value through Surplus or Deficit

Financial liabilities at fair value through surplus or deficit include financial

liabilities held for trading and financial liabilities designated upon initial
recognition at fair value through surplus or deficit.

Loans and Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently
measured at amortized cost using the effective interest method. Gains and losses
are recognized in surplus or deficit when the liabilities are derecognized as well as
through the effective interest method amortization process.

Amortized cost is calculated by taking into account any discount or premium on

acquisition and fees or costs that are an integral part of the effective interest rate.

Derecognition

A financial liability is derecognized when the obligation under the liability is

discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender
on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and the recognition of a new liability.

19
 Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount reported in
the consolidated statement of financial position if, there is a currently enforceable
legal right to offset the recognized amounts and there is an intention to settle on a
net basis, or to realize the assets and settle the liabilities simultaneously.

Fair Value of Financial Instruments

The fair value of financial instruments that are traded in active markets at each
reporting date is determined by reference to quoted market prices or dealer price
quotations (bid price for long positions and ask price for short positions), without
any deduction for transaction costs.

3.9 Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, deposits on
call and highly liquid investments with an original maturity of three months or
less, which are readily convertible to known amounts of cash and are subject to
insignificant risk of changes in value. For the purpose of the consolidated
statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits as defined above, net of outstanding bank overdrafts.

3.10 Inventories

Inventory is measured at cost upon initial recognition. To the extent that inventory
was received through non-exchange transactions (for no cost or for a nominal
cost), the cost of the inventory is its fair value at the date of acquisition.

Costs incurred in bringing each product to its present location and condition are
accounted for, as follows:

a) Raw materials: purchase cost using the weighted average cost method;

b) Finished goods and work in progress: cost of direct materials and labor
and a proportion of manufacturing overheads based on the normal
operating capacity, but excluding borrowing costs.

After initial recognition, inventory is measured at the lower of cost and net
realizable value. However, to the extent that a class of inventory is distributed or
deployed at no charge or for a nominal charge, that class of inventory is measured
at the lower of cost and current replacement cost.

Net realizable value is the estimated selling price in the ordinary course of
operations, less the estimated costs of completion and the estimated costs
necessary to make the sale, exchange, or distribution. Inventories are recognized

20
 as an expense when deployed for utilization or consumption in the ordinary
course of operations of the City.

3.11 Provisions

Provisions are recognized when the City has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits or service potential will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.

Where the City expects some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is recognized as a separate asset
only when the reimbursement is virtually certain.

The expense relating to any provision is presented in the statement of financial

performance net of any reimbursement.

Rehabilitation Liability

Rehabilitation costs are provided at the present value of expected costs to settle
the obligation using estimated cash flows and are recognized as part of the cost of
that particular asset. The cash flows are discounted at a current rate that reflects
the risks specific to the rehabilitation liability. The unwinding of the discount is
expensed as incurred and recognized in the statement of financial performance as
a finance cost. The estimated future costs of decommissioning are reviewed
annually and adjusted as appropriate. Changes in the estimated future costs or in
the discount rate applied are added to or deducted from the cost of the asset.

Contingent Liabilities

The City does not recognize a contingent liability, but discloses details of any
contingencies in the notes to the financial statements, unless the possibility of an
outflow of resources embodying economic benefits or service potential is remote.

Contingent Assets

The City does not recognize a contingent asset, but discloses details of a possible
asset whose existence is contingent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the City in the notes
to the financial statements. Contingent assets are assessed continually to ensure
that developments are appropriately reflected in the financial statements. If it has
become virtually certain that an inflow of economic benefits or service potential
will arise and the asset’s value can be measured reliably, the asset and the related
revenue are recognized in the financial statements of the period in which the
change occurs.

21
3.12 Changes in Accounting Policies and Estimates

The City Government of Trece Martires recognizes the effects of changes in

accounting policy retrospectively. The effects of changes in accounting policy are
applied prospectively if retrospective application is impractical.

The City recognizes the effects of changes in accounting estimates prospectively

by including in surplus or deficit.

3.13 Foreign Currency Transactions

Transactions in foreign currencies are initially accounted for at the ruling rate of
exchange on the date of the transaction. Trade creditors or debtors denominated in
foreign currency are reported at the statement of financial position reporting date
by applying the exchange rate on that date. Exchange differences arising from the
settlement of creditors, or from the reporting of creditors at rates different from
those at which they were initially recorded during the period, are recognized as
income or expenses in the period in which they arise.

3.14 Borrowing Costs

Borrowing costs are capitalized against qualifying assets as part of property, plant
and equipment. Such borrowing costs are capitalized over the period during which
the asset is being acquired or constructed and borrowings have been incurred.
Capitalization ceases when construction of the asset is complete. Further,
borrowing costs are charged to the statement of financial performance.

3.15 Related Parties

The City regards a related party as a person or an entity with the ability to exert
control individually or jointly, or to exercise significant influence over the City, or
vice versa. Members of key management are regarded as related parties and
comprise the Mayor, Vice-Mayor, Sangguniang Panlungsod Members,
Committee Officials and Members, Accountant, Treasurer, Budget Officer,
General Services and all Chiefs of Departments/Divisions.

3.16 Service Concession Arrangements

The City analyses all aspects of service concession arrangements that it enters into
in determining the appropriate accounting treatment and disclosure requirements.
In particular, where a private party contributes an asset to the arrangement, the
City recognizes that asset when, and only when, it controls or regulates the
services the operator must provide together with the asset, to whom it must
provide them, and at what price. In the case of assets other than ’whole-of-life’
assets, it controls, through ownership, beneficial entitlement or otherwise – any
significant residual interest in the asset at the end of the arrangement. Any assets

22
 so recognized are measured at their fair value. To the extent that an asset has been
recognized, the City also recognizes a corresponding liability, adjusted by a cash
consideration paid or received.

3.17 Budget Information

The annual budget is prepared on the modified cash basis, that is, all planned
costs and income are presented in a single statement to determine the needs of the
City. As a result of the adoption of the Modified cash basis for budgeting
purposes, there are basis, timing or entity differences that would require
reconciliation between the actual comparable amounts and the amounts presented
as a separate additional financial statement in the statement of comparison of
budget and actual amounts. Explanatory comments are provided in the notes to
the annual financial statements; first, the reasons for overall growth or decline in
the budget are stated, followed by details of overspending or underspending on
line items.

3.18 Significant Judgments and Sources of Estimation Uncertainty

Judgments

In the process of applying the City’s accounting policies, management has made
judgments, which have the most significant effect on the amounts recognized in
the consolidated financial statements.

Operating Lease Commitments – as Lessor

The City Government of Trece Martires has entered into property leases of its
certain of its properties. The City has determined, based on an evaluation of the
terms and conditions of the arrangements, (such as the lease term not constituting
a substantial portion of the economic life of the commercial property) that it
retains all the significant risks and rewards of ownership of the properties and
accounts for the contracts as operating leases.

Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The City based its assumptions and estimates
on parameters available when the consolidated financial statements were
prepared. However, existing circumstances and assumptions about future
developments may change due to market changes or circumstances arising beyond
the control of the City. Such changes are reflected in the assumptions when they
occur.

23
Useful Lives and Residual Values

The useful lives and residual values of assets are assessed using the following
indicators to inform potential future use and value from disposal:

a) The condition of the asset based on the assessment of experts

employed by the Agency;

b) The nature of the asset, its susceptibility and adaptability to changes in

technology and processes;

c) The nature of the processes in which the asset is deployed; and

d) Changes in the market in relation to the asset

Impairment of Non-Financial Assets – Cash-Generating Assets

The recoverable amount of cash-generating units and individual assets is

determined based on the higher of value-in-use calculations and fair values less
costs to sell. These calculations require the use of estimates and assumptions. It is
reasonably possible that the assumptions will change, which may then impact
management’s estimations and require a material adjustment to the carrying value
of tangible assets.

The City reviews and tests the carrying value of assets when events or changes in
circumstances suggest that the carrying amount may not be recoverable. Cash-
generating assets are grouped at the lowest level for which identifiable cash flows
are largely independent of cash flows of other assets and liabilities. If there are
indications that impairment may have occurred, estimates of expected future cash
flows are prepared for each group of assets. Expected future cash flows used to
determine the value in use of tangible assets are inherently uncertain and could
materially change over time.

Impairment of Non-Financial Assets – Non- Cash Generating Assets

The City reviews and tests the carrying value of non-cash-generating assets when
events or changes in circumstances suggest that there may be a reduction in the
future service potential that can reasonably be expected to be derived from the
asset. Where indicators of possible impairment are present, the Agency
undertakes impairment tests, which require the determination of the fair value of
the asset and its recoverable service amount. The estimation of these inputs into
the calculation relies on the use estimates and assumptions.

Any subsequent changes to the factors supporting these estimates and

assumptions may have an impact on the reported carrying amount of the related
asset.

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 Fair Value Estimation – Financial Instruments

Where the fair value of financial assets and financial liabilities recorded in the
statement of financial position cannot be derived from active markets, their fair
value is determined using valuation techniques including the discounted cash flow
model. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, judgment is required in establishing fair
values. Judgment includes the consideration of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the
reported fair value of financial instruments.

Provisions

Provisions were raised and management determined an estimate based on the

information available. Provisions are measured at the management's best estimate
of the expenditure required to settle the obligation at the reporting date, and are
discounted to present value where the effect is material.

Held-to-Maturity Investments and Loans and Receivables

The City assesses its loans and receivables at the end of each reporting period. In
determining whether an impairment loss should be recorded in surplus or deficit,
the City evaluates the indicators present in the market to determine if those
indicators are indicative of impairment in its loans and receivables.

Where specific impairments have not been identified, the impairment for trade
receivables and loans and receivables is calculated on a portfolio basis, based on
historical loss ratios, adjusted for national and industry-specific economic
conditions and other indicators present at the reporting date that correlate with
defaults on the portfolio. These annual loss ratios are applied to loan balances in
the portfolio and scaled to the estimated loss emergence period.

3.19 Financial Instruments - Financial Risk Management

Credit Quality

Credit quality is assessed risk of default attached to counterparties to which the

City Government of Trece Martires extends credit and also those parties with
whom the City invests. As such, the credit quality assessed extends to the
customers, investments and banks servicing the City.

For financial statement purposes, the investments and balances with banks are
limited to the investments, loans receivable and cash and cash equivalents line
items in the statement of financial position. The City follows Department Order
No. 27-05 of the Department of Finance (DOF) in the maintenance of depository

25
accounts. It also determines credit quality of the investments and banks using
information obtained from external rating agencies.

The City Government of Trece Martires, as a local government authority, is

mandated under Republic Act No. 7160 or the Local Government Code to provide
basic services to all its constituents irrespective of their financial standing. As
such, the City is required, by legislation, to extend services and extended payment
terms to all customers irrespective of their financial standing.

Investments

The City limits its exposure to credit risk by investing with only reputable
financial institutions that have a sound credit rating, which are within the specific
guidelines set in accordance with the City Finance Committee and the Sanggunian
approved investment policy. Consequently, the City does not consider there to be
any significant exposure to credit risk.

Receivables

Receivables are amounts owed by consumers, and are presented net of

impairment losses. The City is compelled, by its constitutional mandate, to
provide all of its residents with basic minimum services, without recourse to an
assessment of creditworthiness.

Cash and Cash Equivalents

The City limits its exposure to credit risk by investing cash and cash equivalents
with only reputable financial institutions that have a sound credit rating, and
within specific guidelines set in accordance with the Sanggunian’s approved
investment policy.

Liquidity Risk

Liquidity risk is the risk of the City not being able to meet its obligations as they
fall due. The City’s approach to managing liquidity risk is to ensure that sufficient
liquidity is available to meet its liabilities when due, without incurring
unacceptable losses or risking damage to the City’s reputation.

Capital Management

The primary objective of managing the City Government of Trece Martires’

capital is to ensure that there is sufficient cash available to support the City’s
funding requirements, including capital expenditure, to ensure that the City
remains financially sound. The City monitors capital using a gearing ratio, which
is net debt, divided by total capital, plus net debt. Included in net debt are interest-
bearing loans and borrowings, payables, less investments.

26
 Currency Risk

The City Government of Trece Martires is not exposed to foreign-currency risk.

Market Risk

Market risk is the risk of changes in market prices, such as foreign exchange rates
and interest rates, affecting the City’s income or the value of its financial
instrument holdings. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimizing the
return on the risk.

4. Cash and Cash Equivalents

This comprised of the following:

2017 2016
Cash on Hand
Cash-Local Treasury P 9,018,822.18 P 6,624,048.55
Cash in Bank-Local Currency
Cash in Bank-Local Currency, Current Account 534,662,906.21 277,452,415.15
Cash in Bank-Local Currency, Time Deposit 71,664,752.50 71,237,295.92
Total Cash and Cash Equivalents P 615,346,480.89 P 355,313,759.62

The Cash-Local Treasury balance of P9,018,822.18 consists of collections from Real

Property and Local Taxes on the last working day and were deposited on January 3 to
5, 2018.

Cash in Banks earns interest based on the prevailing bank deposit rates. Short-term
Deposits are made for varying periods, depending on the immediate cash
requirements of the City and earn interest at the respective short-term deposit rate.

The Cash in Bank-Local Currency, Current Account is composed of the following:

Account No.
General Fund
Land Bank of the Philippines
2052-1000-30 P 6,789,411.61

Veterans Bank of the Phlippines

0018-001055-002-018010000741 383,250,713.89
Sub-total 390,040,125.50

27
 Special Education Fund
Land Bank of the Philippines
2052-1002-78 536,380.96
Veterans Bank of the Phlippines
0018-006653-002-018010001181 50,727,925.85
Sub-total 51,264,306.81

Trust Fund
Land Bank of the Philippines
2052-1002-60 9,997,064.24
Veterans Bank of the Phlippines
0018-006651-002-018010001172 83,361,409.66
Sub-total 93,358,473.90
Grand Total P 534,662,906.21

The Cash in Bank-Local Currency, Time Deposit represents deposit placements in

various banks, as follows:

Account/Certificate No. Amount Maturity

General Fund
Veterans Bank of the Phlippines
3003328 P 5,000,000.00 30 days
3003329 5,000,000.00 30 days
3003330 5,000,000.00 30 days

Land Bank of the Philippines

2051-0565-26 15,471,042.18 90 days
2051-0524-66 10,295,059.70 30 days
2051-0573-87 10,295,059.74 30 days
2051-0733-66 5,150,897.72 30 days
2051-0733-58 5,150,897.72 30 days

Special Education Fund

Land Bank of the Philippines
2051-0733-40 5,150,897.72 30 days
2051-0733-31 5,150,897.72 30 days
Total P 71,664,752.50

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5. Receivables

The account pertains to the following:

2017 2016
Loans and Receivable Accounts
Real Property Tax Receivables P 332,033,431.53 P 313,754,940.22
Special Education Tax Receivables 182,629,522.99 178,567,904.15
Intra-Agency Receivables
Due from Other Funds 10,020.00 298,449.20
Advances
Advances to Officers and Employees 10,245.00 1,905,448.52
Other Receivables
Due from Officers and Employees 34,291.73 3,747.95
Other Receivables 432,672.25 726,862.79
Total P 515,150,183.50 P 495,257,352.83

Loans and Receivables Accounts

Real Property Tax Receivables and Special Education Tax Receivables amounting to
P332,033,431.53 and P182,629,522.99, respectively, pertain to collectibles of the
City from delinquent real property taxpayers.

Intra-Agency Receivables

The Due from Other Funds amounting to P3,620.00 refers to receivable from Trust
Fund due to erroneous payment of Trust Fund disbursements by the General Fund,
while the remaining P6,400.00 pertains to receivable from the Special Education
Fund for payment of Philhealth.

Advances

Advances to Officers and Employees of the General Fund amounting to P10,245.00

represents cash advance of Alberto Ararao intended for the 28th Annual Convention
of League of Local Planning and Development Coordinators of the Philippines, Inc.
and it was liquidated on February 6, 2018 under O.R. No. 3515051.

Other Receivables

Due from Officers and Employees amounting to P34,291.73 pertains to receivable

from collectors as a result of short remittances. Other Receivables of P432,672.25
represents the Self Employment Assistance (SEA) Program beneficiaries of the Trust
Fund.

29
 As at December 31, 2017, the aging analysis of receivables is as follows:

1 month to <1 year to <2 year to 5

Total one year two years years Over 5 years
General Fund
Due from Other Funds P 10,020.00 P 10,020.00 - -
Real Property Tax
Receivables 332,033,431.53 - - - P 332,033,431.53
Advances to Officers and
Employees 10,245.00 10,245.00 - - -
Due from Officers and
Employees 34,081.51 34,081.51 - - -
Sub Total 332,087,778.04 54,346.51 - - 332,033,431.53
Special Education Fund
Special Education Tax
Receivables 182,629,522.99 - - - 182,629,522.99
Due from Officers and
Employees 210.22 210.22 - - -
Sub-total 182,629,733.21 210.22 - - 182,629,522.99

Trust Fund
Advances to Officers and - - - - -
Employees
Other Receivables 432,672.25 - - - 432,672.25
Sub-total 432,672.25 - - - 432,672.25

Grand Total P 515,150,183.50 P 54,556.73 - - P 515,095,626.77

6. Inventories

This account pertains to Office Supplies Inventory of P765,642.20, Medical, Dental

and Laboratory Supplies Inventory of P606,703.00 and Other Supplies and Materials
Inventory amounting to P88,623.00 or a total of P1,460,968.20 under the General
Fund.

7. Prepayments and Deferred Charges

This comprised of the following:

2017
Advances to Contractors P 5,500,111.42
Discount on Advance Payments 14,891,591.10
Total P 20,391,702.52

8. Investment Property

The Investment Property – Land is comprised of 14 parcels of land valued at

P12,507,278.52 acquired through dacion en pago in favor of the City Government as
payments of delinquent real property taxes intended for capital appreciation, and a
parcel of land valued at P25,000,000.00 with an area of 6,709.56 square meters which

30
 is for lease to Prime Worldwide Paper Packaging for a period of 25 years effective
October 1, 2012 up to September 30, 2037.

9. Property, Plant and Equipment

This includes the following:

Increase in
Accumulated
December 31, 2016 December 31, 2017
Depreciation for
Balance Balance
Net addition/ Reduction 2017
Carrying Value Carrying Value

Land P 218,138,842.31 P 34,395,520.00 - P 252,534,362.31

Land Improvements
Other Land Improvements 80,740,612.67 - P 20,474,177.41 60,266,435.26
Infrastructure Assets
Road Networks 7,301,647.61 490,934.10 - 7,792,581.71
Water Supply Systems 2,843,899.29 733,948.80 - 3,577,848.09
Power Supply System 14,990,017.00 - 14,990,017.00
Other Infrastructure Assets 1,992,680.00 - 1,992,680.00
Sub-total 10,145,546.90 18,207,579.90 - 28,353,126.80
Building and Other Structures
Buildings 93,376,780.43 8,605,961.75 6,489,268.75 95,493,473.43
School Buildings 93,895,753.25 40,000.00 4,907,151.39 89,028,601.86
Hospital & Health Centers 5,424,938.17 997,299.02 1,382,900.04 5,039,337.15
Markets 9,310,285.86 - 482,323.08 8,827,962.78
Slaughterhouses 11,221,704.26 - 759,124.08 10,462,580.18
Other Structures 129,210,195.86 7,424,541.24 16,190,649.76 120,444,087.34
Sub-total 342,439,657.83 17,067,802.01 30,211,417.10 329,296,042.74
Machinery and Equipment
Office Equipment 23,040,693.07 5,933,211.84 5,185,008.23 23,788,896.68
Information and Communication
Technology Equipment 35,641,509.59 24,204,402.75 8,012,947.45 51,832,964.89
Communication Equipment 2,517,046.70 4,560,310.95 646,097.90 6,431,259.75
Construction and Heavy
Equipment 25,485,642.27 10,475,000.00 2,842,640.16 33,118,002.11
Disaster Response and Rescue
Equipment 328,868.57 (1,030.00) 9,467.38 318,371.19
Medical Equipment 1,413,905.35 314,115.47 256,618.11 1,471,402.71
Technical and Scientific Equipment - 2,828,500.00 44,784.60 2,783,715.40
Other Machinery & Equipment 4,217,852.71 491,000.00 440,272.36 4,268,580.35
Sub-total 92,645,518.26 48,805,511.01 17,437,836.19 124,013,193.08

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 Increase in
Accumulated
December 31, 2016 December 31, 2017
Net addition/ Depreciation for
Balance Balance
Reduction 2017
Carrying Value Carrying Value

Transportation Equipment
Motor Vehicles 34,727,736.60 3,782,867.73 7,141,630.01 31,368,974.32
Furniture, Fixtures and Books
Furniture and Fixtures 9,137,735.70 1,005,254.55 2,389,022.96 7,753,967.29
Books 930,171.59 1,988,123.75 543,188.17 2,375,107.17
Sub-total 10,067,907.29 2,993,378.30 2,932,211.13 10,129,074.46
Construction in Progress
Construction in Progress -
Infrastructure Assets 5,000,000.00 24,350,000.00 - 29,350,000.00
Construction in Progress -
Builidings & Other Structures 108,966,739.68 64,658,646.09 - 173,625,385.77
Sub-total 113,966,739.68 89,008,646.09 - 202,975,385.77
Other Property, Plant & Equipment 826,915.73 (145,670.30) - 681,245.43
Total Property, Plant & Equipment P 903,699,477.27 P 214,115,634.74 P 78,197,271.84 P 1,039,617,840.17

As of December 31, 2017, Property, Plant and Equipment has a total cost of
P1,349,479,726.19 with Accumulated Depreciation of P309,861,886.02 or a net book
value of P1,039,617,840.17.

As of December 31, 2017, the General Services Office reported Unserviceable

Properties with carrying amount of P908,968.65 broken down as follows:

Office Equipment P 246,374.00

Information and Communication
Technology Equipment 9,000.00
Communication Equipment 64,000.00
Disaster Response and Rescue Equipment 6,400.00
Medical Equipment 1,940.00
Motor Vehicles 400,000.00
Furniture and Fixtures 180,808.65
Other Property, Plant and Equipment 446.00
Total P 908,968.65

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10. Biological Assets

This consists of Breeding Stocks as follows:

Qty. Cost Date of Purchase Amount

General Fund
Breeding Cattle 6 14,250.00 01/03/1995 P 85,500.00
Breeding Swine 5 5,000.00 17/03/1995 25,000.00
Breeding Swine 5 5,000.00 24/11/1995 25,000.00
Breeding Swine 1 7,100.00 24/11/1995 7,100.00
Breeding Swine 1 7,400.00 24/11/1995 7,400.00
Breeding Swine 1 6,700.00 24/11/1995 6,700.00
Breeding Swine 2 7,100.00 24/11/1995 14,200.00
Breeding Swine 6 1,250.00 24/11/1995 7,500.00
Breeding Swine 5 1,420.00 24/11/1995 7,100.00
Breeding Cattle 10 12,307.70 04/05/2010 123,077.00
Breeding Cattle 3 25,000.00 22/07/2011 75,000.00
Breeding Cattle 2 35,000.00 22/07/2011 70,000.00
Total P 453,577.00

These are under the supervision of the City Agriculture’s Office under the City’s
Livestock Program.

11. Financial Liabilities

These pertain to the following:

2017 2016
Current
Payables
Accounts Payable P 85,044,939.46 P 95,512,511.69
Due to Officers and Employees 27,063.88 27,876.15
Loans Payable
Loans Payable-Domestic 21,947,584.66 9,750,659.13
Sub-total 107,019,588.00 105,291,046.97
Non-Current
Loans Payable
Loans Payable-Domestic 161,351,232.19 115,580,053.61
Sub-total 161,351,232.19 115,580,053.61
Total P 268,370,820.19 P 220,871,100.58

Accounts Payable pertains to the obligations to contractors/suppliers arising from the

purchase of goods, services and infrastructure projects for CYs 2016 to 2017. The
amount of P7,836,309.37 was already paid as of January 2018.

33
 The Due to Officers and Employees consists of unclaimed overtime pay,
representation, transportation and clothing allowances and travelling expenses for
CY 2017.

The Loans Payable-Domestic represents the balances of loan from the Philippine
Veterans Bank (PVB) as follows:
Balance of Loan
as of
Date December 31,
Fund Approved Amount of Loan 2017 Term Purpose

General Fund 04/28/2015 P 169,575,689.01 P 156,523,901.26 10 years Construction of

Public Cemetery

General Fund 04/28/2015 12,454,323.00 12,454,323.00 10 years Rehabilitation of

Computeration
Program

General Fund 04/28/2015 14,320,592.59 14,320,592.59 10 years Construction of

Covered Courts in
Various Barangays

Total P 183,298,816.85

Current Non-Current Total

General Fund P 21,947,584.66 P 161,351,232.19 P 183,298,816.85

The Loans Payable-Domestic was the second loan acquired from Philippine Veterans
Bank, to be fully paid in year 2025. The current portion pertains to the amortization
due for CY 2018.

12. Inter-Agency Payables

These include the following accounts:

2017 2016
Due to BIR - P 231,991.93
Due to GSIS P 7,465.92 -
Due to NGAs 57,598,169.29 10,302,204.27
Due to LGUs 1,089,724.96 1,590,633.17
Total P 58,695,360.17 P 12,124,829.37

34
 Due to NGAs includes the following:

General Fund

 Balances of the Department of the Interior and Local Government (DILG)

funded projects amounting to P2,600,000.00

Trust Fund

 DILG’s Performance Challenge Fund and Bottom-Up Budget of

P10,352,289.29

 Funds from Department of Social Welfare and Development (DSWD) for

livelihood program of meat processing amounting to P500,000.00

 Barangay Nutrition Scholars (BNS) travelling allowance of P840.00

 Fund from Commission on Higher Education (CHED) Region IV-A for

Trece Martires City College financial assistance amounting to
P144,000.00

 Fund from Department of Health (DOH) and DSWD for Matching Grant
and Feeding Programs amounting to P1,655,040.00

 Fund from DILG for resettlement governance assistance amounting to

P42,346,000.00 and was received only by the City on December 28, 2017

Due to LGUs of P1,089,724.96 pertains to the shares of the 13 barangays from the
collection of Real Property Taxes and were already remitted to the Barangays in
January 2018.

13. Intra-Agency Payables

The Due to Other Funds in the Trust Fund amounting to P3,620.00 refers to payables
to General Fund due to erroneous payment of Trust Fund disbursements by the
General Fund.

The Due to Other Funds in the Special Education Fund of P6,400.00 pertains to
payables to General Fund for payment of Philhealth.

14. Trust Liabilities

Trust Liabilities in the Trust Fund pertains to Trust Liabilities-DRRMF amounting to

P32,630,013.47, which represents the unexpended 30% Quick Response Fund (QRF)
and Maintenance and Other Operating Expenses.

35
15. Deferred Credits/ Unearned Income

2017 2016
Deferred Real Property Tax P 332,033,431.53 P 313,754,940.22
Deferred Special Education Tax 182,629,522.99 178,567,904.15
Other Deferred Credits 57,856,859.61 46,722,040.11
Total P 572,519,814.13 P 539,044,884.48

Deferred Real Property Tax and Deferred Special Education Tax amounting to
P332,033,431.53 and P182,629,522.99, respectively, pertain to contra-accounts for
the recording of Real Property Tax Receivables and Special Education Tax
Receivables.

Other Deferred Credits refers to collection of advance payment from Real Property
Tax and Special Education Tax for CY 2017 amounting to P39,287,869.48 and
P18,568,990.13, respectively, and subsequently recognized as income on January 31,
2018.

16. Other Payables

This account comprises of Other Payables in the General, Special Education and
Trust Funds amounting to P27,680,621.81, P1,913.82 and P6,510,373.12,
respectively, or a total of P34,192,908.75. The details of which are as follows:

Particulars Amount
General Fund
Retention Fee P 20,141,514.72
Financial Assistance from the Province of
Cavite 40,000.00
Collection from Business Tax and Real
Property Tax under Protest 4,503,979.07
Share from Building Permit Fee for City
Engineering Office 2,816,860.12
Incentive of the Traffic Management Office 62,820.00
Payment of Loans of Employees to Local
Employees Multi Purpose Cooperative (LEMPCO) 9,633.07
Collection for Outsource Service Provider of
Hospital 23,314.83
Other Receipts 82,500.00
Sub-total 27,680,621.81

Special Education Fund

Collection from Special Education Tax
under protest 1,913.82

36
 Particulars Amount
Trust Fund
Self Employment Assistance (SEA) Rollback 669,567.64
Collection from Business Tax and Real Property
Tax under Protest 1,524,530.94
Collection from Bid Documents 153,733.77
City's Share from Fire Code 1,850,821.50
Financial Asssitance from Other Government
Agencies 739,293.13
Affiliation Fee 55,295.00
Collection from Quarry 188,197.41
Collection from Alay Lakad 32,500.00
Fund from DOH for Trece Martires Pavillon
(TMP) Hospital and City Health Office (CHO) 471,235.73
Interest on Bank Deposits 101,540.96
Endowment Fund 184,418.34
Philheath Collection for General Emilio
Aguinaldo Memorial Hospital 522,590.35
Other Receipts 16,648.35
Sub-total 6,510,373.12
Total P 34,192,908.75

17. Tax Revenue

This includes the following:

2017 2016
Tax Revenue - Individual and Corporate
Professional Tax P 222,892.30 P 81,550.00
Community Tax 1,971,989.25 1,660,970.03
Tax Revenue - Property
Real Property Tax-Basic 36,950,340.35 42,714,273.63
Discount on Real Property Tax-Basic (2,794,365.15) (6,056,998.54)
Special Eduaction Tax 42,555,859.67 44,466,392.09
Discount on Special Education Tax (4,871,137.21) (4,402,896.07)
Special Levy on Idle Lands 5,333,000.90 6,462,909.55
Real Property Transfer Tax 13,003,599.17 8,383,409.57
Tax Revenue - Goods and Services
Business Tax 101,581,756.02 84,339,805.64
Tax on Delivery Trucks and Vans 84,975.00 76,135.00
Franchise Tax 7,871,073.52 7,335,694.90

37
 2017 2016
Tax Revenue - Fines and Penalties
Tax Revenue-Fines and Penalties-Taxes
on Individual and Corporation 2,817,257.17 2,594,057.60
Tax Revenue-Fines and Penalties-
Property Taxes 5,072,386.27 5,654,460.85
Tax Revenue-Fines and Penalties-Other
Taxes 231,335.02 204,226.86
Total P 210,030,962.28 P 193,513,991.11

18. Share from National Taxes

The Share from National Taxes pertains to Share from Internal Revenue Collections
amounting to P429,737,118.00.

19. Service and Business Income

This consists of:

2017 2016
Service Income
Permit Fees P 14,411,515.60 P 10,809,241.59
Registration Fees 1,783,348.65 2,179,320.00
Registration Plates, Tags and
Sticker Fees 996,978.00 917,700.00
Clearance and Certification 2,672,265.60 2,346,923.93
Supervision and Regulation Enforcement Fees 1,746,110.00 493,695.00
Inspection Fees 1,777,485.96 1,908,547.04
Processing Fees 44,700.00 47,500.00
Occupation Fees 3,377,849.30 3,118,990.00
Fees for Sealing and Licensing of
Weights and Measures 57,860.00 61,300.00
Other Service Income 8,586.72 37,686.72
Business Income
School Fees 9,826,845.50 13,507,250.00
Rent Income 6,186,203.17 4,814,278.90
Parking Fees 490,500.00 591,500.00
Receipts from Market Operation 5,375,520.76 5,101,027.42
Receipts from Slaughterhouse
Operation 7,577,685.59 5,092,563.39
Receipts from Cemetery Operation 893,915.00 1,204,915.00
Receipts from Printing and Publication 72,745.45 72,912.10
Garbage Fees 2,185,650.00 2,195,100.00
Hospital Fees 5,847,781.46 4,301,016.42
Interest Income 1,373,772.04 1,196,259.15
Fines and Penalties - Business Income - 34,430.31
Other Business Income 123,171.60 123,137.32
Total P 66,830,490.40 P 60,155,294.29

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20. Personnel Services

The details of the account are as follows:

2017 2016
Personnel Services
Salaries and Wages - Regular P 89,920,325.52 P 84,545,072.36
Salaries and Wages - Casual and Contractual 8,660,536.66 9,458,847.63
Other Compensation
Personal Economic Relief Allowance 11,886,955.84 12,231,000.49
Representation Allowance 2,278,212.50 2,243,575.00
Transportation Allowance 2,073,787.50 1,951,600.00
Clothing/Uniform Allowance 2,495,000.00 2,550,000.00
Subsistence Allowance 1,045,909.63 1,055,181.04
Laundry Allowance 88,395.05 218,183.17
Honoraria 1,422,000.00 1,271,500.00
Overtime and Night Pay 1,991,538.61 2,547,584.30
Year- End Bonus 16,049,261.68 7,911,352.88
Cash Gift 2,438,000.00 2,593,500.00
Personnel Benefit Contributions
Life and Retirement Insurance Contributions 11,671,422.00 11,075,869.53
PAG-IBIG Contributions 620,439.74 628,615.08
PHILHEALTH Contributions 1,005,199.84 1,075,700.00
Employees Compensation Insurance Premiums 649,960.27 563,813.70
Other Personnel Benefits
Terminal Leave 4,424,966.61 2,479,284.30
Other Personnel Benefits 11,714,913.16 22,930,603.90
Total P 170,436,824.61 P 167,331,283.38

Other Personnel Benefits under the General Fund pertains to the terminal leave
benefits, monetization of leave credits of employees and the Productivity
Enhancement Incentives of officials and employees equivalent to one month salary
given in December 2017.

21. Maintenance and Other Operating Expenses

This consists of the following:

Travelling Expenses
Travelling Expenses- Local P 2,204,064.16 P 2,617,507.16
Training and Scholarship Expenses
Training Expenses 4,489,334.34 2,799,428.86

39
 2017 2016
Supplies And Material Expenses
Office Supplies Expenses 3,850,906.00 3,902,420.79
Accountable Forms Expenses 456,330.00 389,130.00
Animal/Zoological Expenses 100,567.50 133,786.00
Food Supplies Expenses 8,532,274.25 2,717,151.00
Drugs and Medicines Expenses 2,720,919.50 3,229,744.00
Medical, Dental and Laboratory Supplies Expenses 202,071.00 564,437.00
Fuel, Oil and Lubricants Expenses 15,195,752.36 18,579,637.70
Agricultural and Marine Supplies Expenses 346,598.00 314,277.50
Textbooks and Instruction Materials Expenses 13,602,176.25 13,458,712.00
Other Supplies and Materials Expenses 14,603,214.37 20,322,036.59
Sub-total 59,610,809.23 63,611,332.58
Utility Expenses
Water Expenses 703,897.02 1,076,835.15
Electricity Expenses 10,966,816.91 10,650,698.76
Sub-total 11,670,713.93 11,727,533.91
Communication Expenses
Postage and Courier Services 71,500.00 69,500.00
Telephone Expenses 3,073,071.26 3,088,114.81
Internet Subscription Expenses 160,544.20 166,264.53
Sub-total 3,305,115.46 3,323,879.34
Awards/Rewards and Prizes
Awards and Rewards Expenses 1,971,000.00 1,006,671.00
Confidential, Intelligence, Extraordinary and
Confidential Expenses 4,374,000.00 6,750,000.00
Extraordinary Miscellaneous Expenses 705,000.00 646,450.24
Sub-total 5,079,000.00 7,396,450.24
Professional Services
Legal Services - 200,000.00
Consultancy Services 5,062,000.00 6,971,200.00
Survey Expenses 7,107.10 -
Other Professional Services 20,173,966.84 21,810,740.56
Sub-total 25,243,073.94 28,981,940.56
General Services
Environmental/ Sanitary Services 34,590,426.57 51,429,086.96
Repairs and Maintenance
Repairs and Maintenance-Land Improvements - 497,546.24
Repairs and Maintenance-Infrastructure Assets 1,110,762.33 1,351,679.53
Repairs and Maintenance-Buildings and
Other Structures 3,924,800.73 5,269,661.21
Repairs and Maintenance-Machineries and Equipment 1,671,935.00 2,039,544.00
Repairs and Maintenance-Transportation Equipment 3,980,817.80 3,972,511.31
Repairs and Maintenance - Furniture and Fixtures 34,000.00 12,100.00

40
 2017 2016
Repairs and Maintenance - Other Property, Plant and
Equipment 263,719.00 -
Sub-total 10,986,034.86 13,143,042.29
Taxes, Insurance Premiums and Other Fees
Fidelity Bond Premiums 46,691.25 43,462.50
Insurance Expenses 2,565,810.57 909,994.21
Sub-total 2,612,501.82 953,456.71
Other Maintenance and Operating Expenses
Advertising Expenses 589,425.00 435,204.00
Printing and Publication Expenses - 10,000.00
Representation Expenses 1,350,000.00 3,600,000.00
Rent Expenses 10,325,000.00 3,900,000.00
Membership Dues and Contributions to Organizations 520,875.00 574,581.00
Donations 5,213,185.00 4,490,080.00
Other Maintenance and Operating Expenses 19,111,216.59 15,747,599.07
Sub-total 37,109,701.59 28,757,464.07
Total Maintenance and Other Operating Expenses P 198,871,775.90 P 215,747,793.68

Environmental/Sanitary Services

The account refers to the wages of Job Order (JO) employees hired as Bantay
Kalikasan and Utility Workers.

Other Professional Services

The account pertains to the wages of other JO employees, including those employed
as Barangay Nutrition Scholars (BNS) and Barangay Health Workers (BHW). The
salaries and benefits of personnel of the City College of Trece Martires, a school
managed by the City, are also charged to this account.

22. Financial Expenses

This consists of the following:

2017 2016

Interest Expenses P 8,053,153.64 P 2,093,023.79

Guarantee Fees - 21,367.04
Bank Charges 321,550.00 769,912.00
Commitment Fees - 2,000,000.00
Other Financial Charges 345,153.00 224,074.00
Total P 8,719,856.64 P 5,108,376.83

41
 The Bank Charges pertains to fees for processing the current loan acquired from
Philippine Veterans Bank.

Other Financial Charges consist of payments for other fees and documentary stamps
used in the processing of the loan.

23. Non-Cash Expenses

This consists of the following:

2017 2016
Depreciation
Depreciation-Land Improvements P 20,474,177.41 P 20,525,162.44
Depreciation-Buildings and Structures 35,338,611.64 30,902,724.39
Depreciation-Machinery and Equipment 13,972,940.72 13,263,086.65
Depreciation-Transportation Equipment 7,141,630.01 7,089,749.43
Depreciation-Furnitures, Fixtures and
Books 2,933,778.63 2,911,364.13
Depreciation-Other Property Plant
and Equipment - 17,198.42
Total P 79,861,138.41 P 74,709,285.46

24. Transfers, Assistance and Subsidy To

This includes:
2017 2016
Financial Assistance/Subsidy to
Subsidy to National Government Agencies P 1,344,983.18 P 3,577,405.96
Subsidy to Other Local Government Units - 260,000.00
Transfer to
Transfers of Unspent Current Year DRRM
Funds to the Trust Funds 11,871,892.57 -
Total P 13,216,875.75 P 3,837,405.96

The Subsidy to National Government Agencies pertains to financial assistance

granted to National Government Agencies in the form of honorarium, training and
seminar expenses and other maintenance and operating expenses. The transfer of
unspent current year DRRM funds to trust funds amounting to P11,871,892.57
pertains to the CY 2017 unspent quick response and the portion of mitigation fund
intended for maintenance and other operating expenses.

42
25. Other Non-Operating Income/Losses

This includes the following:

2017 2016
Miscellaneous Income
Gain on Sale of Property, Plant and Equipment P 27,050.00 P -
Transfer from Trust Fund the Unexpended LDRRMF
for CY 2011 - 11,127,341.18
Miscellaneous Income 157,538.12 -
Total 184,588.12 11,127,341.18
Loss on Sale of Property, Plant and Equipment
Motor Vehicle 567,132.27 2,402,229.53
Other Property Plant and Equipment 67,402.80 48,160.00
Furniture and Fixtures 239,361.05 579,411.35
Information and Communication Technology
and Software 8,796.25 91,114.00
Communication Equipment 103,539.05 199,999.30
Office Equipment 190,786.16 492,024.26
Medical Equipment 127,016.53 139,236.00
Disaster Response and Rescue Equipment 10,000.00 -
Books 651.25 -
Total Losses 1,314,685.36 3,952,174.44

Net Other Non-Operating Income/Losses P (1,130,097.24) P 7,175,166.74

26. Prior Period Errors

Particulars 2017 2016

a) Adjustment on Prior Year's Operating Activities
Interest Income P 527.95 P 159,643.69
Cancellation of Stale Check 10,000.00 136,782.98
Condonation of Receivables from TMC Lempco (165,000.00)
Reversion of Unexpended Obligations 1,413,857.32 7,289,539.69
Overpayment of Previous Loans (115,020.54)
Reimbursement of Various Receipts (195,174.40)
Payment to Supplier (1,127,276.25) (11,280.51)
Settlement of Cash Advance (675,000.00) (518,000.00)
Issuance of Office Supplies (1,161,780.18) (441,474.00)
Overposting of Check # 000061960 - 0.03
Refund of Granted Donations - 34,500.00
Transfer of Income from Provincial Government 37,492.60
Adjustment on Other Receivable -
Reynante Suarez - (5,000.00)
Adjustment on over-stated Deferred Credits - 25,052,185.08
Adjustment on Other Payables 35,516.82 18,249.39
Adjustment on Previous Issuance of Office
Supplies 24,436.28 -
Adjustment on Income 10,000.00 -
Prior Years Service Income from NHMFC 2,990.66 3,052.26
Sub-total (1,904,429.74) 31,718,198.61

b) Adjustment on LDRRMF
Transfer of LDRRMF from General Fund
to Trust Fund (12,131,987.14) (18,755,336.89)

43
 Particulars 2017 2016
c) Adjustment on Prior Year's PPE transactions
Unrecorded parcel of land 28,775,520.00 -
Disposal of Unserviceable Assets - (27,283.75)
Accumulated Depreciation of Assets from Trust Fund - (939,438.09)
Adjustment on Accumulated Depreciation-School
Building 1,663,866.57 -
Adjustment on Accumulated Depreciation-Other
Structures - (1,747,758.47)
Sub-total 30,439,386.57 (2,714,480.31)
Total P 16,402,969.69 P 10,248,381.41

27. Adjustment of Net Revenue Recognized directly in Net Assets/Equity

This comprises of the following:

Transfer of Property, Plant and Equipment from Trust Fund to the General Fund as
follows:
Accounts Amount
Information and Communication
Equipment P 64,998.00
Hospital Equipment 441,132.00
Furniture and Fixtures 57,842.00
Total P 563,972.00

28. Other Receipts

This consists of:

General Fund
a) Collection of Various Receivables P 1,257,215.89
b) Other Receipts from Other Activities 157,538.12
Sub-total 1,414,754.01
Special Education Fund
a) Prior Period Errors 527.95
Sub-total 527.95
Trust Fund
a) Collection of Various Receivables 1,244,618.52
b) Receipts from Various NGAs 47,526,507.74
c) Trust Liabilities - Disaster Risk Reduction
and Management Fund 12,058,387.14
d) Other Receipts from Other Activities 6,513,993.12
Sub-total 67,343,506.52
Total P 68,758,788.48

44
29. Other Payments

This includes the following:

General Fund
a) Donations P 5,213,185.00
b) Subsidy to National Government Agencies 1,344,983.18
c) Transfer of Unspent LDRRMF 11,871,892.57
d) Transfer of Prior Year's Unspent
LDRRMF 12,131,987.14
e) Payment of Prior Year's Maintenance
and Other Operating Expenses 1,904,957.69
Sub-total 32,467,005.58
Special Education Fund
a) Payment of Other Liabilities 29,795.00
Sub-total 29,795.00
Trust Fund
a) Payment of Other Liabilities 4,839,257.65
Total P 37,336,058.23

30. Reconciliation of Net Cash Flows from Operating Activities to Surplus/Deficit

Special
General Fund Education Fund Trust Fund Total
Surplus/(Deficit) P 213,989,217.45 P 20,372,784.68 - P 234,362,002.13
Non-cash transactions
Depreciation 74,703,074.93 5,158,063.48 - 79,861,138.41
(Gains)/Losses on Sale of
Property, Plant and Equipment 1,242,335.42 45,299.94 - 1,287,635.36
Increase/(Decrease) in payables,
excluding loans 24,475,568.19 11,846,167.75 P 61,596,320.08 97,918,056.02
(Increase)/Decrease in other
current assets 9,385,977.55 (420,476.93) (336,689.73) 8,628,810.89
(Increase)/Decrease in receivables (17,075,621.93) (4,061,827.26) 1,244,618.52 (19,892,830.67)
Prior Period Adjustments 1,903,901.79 (527.95) - 1,903,373.84
Net Cash Flows from Operating Activities P 308,624,453.40 P 32,939,483.71 P 62,504,248.87 P 404,068,185.98

31. Comparison of Budget and Actual Amounts

Reconciliation between actual amounts on a comparable basis presented in the

Statement of Budget and Actual Amounts and in the Statement of Financial
Performance for the Year Ended December 31, 2017.

45
 Financial
General Fund Income Personal Services MOOE Expenses Capitay Outlay
Comparison Statement of Budget
and Actual Amounts P 739,964,237.04 P 165,660,883.27 P 217,957,230.34 P 8,719,856.64 P 194,602,561.03
Basis Differences:
Receipts not considered as income:
Borrowings (71,019,891.86)
Gain on Sale of Assets 27,050.00
Expenses not considered budgetary items
Depreciation 74,703,074.93
Loss on Sale of Assets 1,269,385.42
Budgetary items not considered as expeneses
Debt Service (Loan Amortization) (13,051,787.75)
Capital Expenditures (190,760,773.43)
Timing Differences:
Unconsumed Inventories
charged to current
appropriation (1,460,968.20)
Consumed Inventories and
deferred charges charged to
prior period appropriations 1,184,503.08
Commitments (Obligated but
not yet delivered/billed) (3,841,787.60)
Per Statement of Financial
Performance P 668,971,395.18 P 165,660,883.27 P 280,601,437.82 P 8,719,856.64 P -

Financial
Special Education Fund Income Personal Services MOOE Expenses Capitay Outlay
Comparison Statement of Budget
and Actual Amounts P 37,811,763.62 P 4,775,941.34 P 7,459,674.18 P - P 7,878,270.00
Basis Differences:
Expenses not considered budgetary items
Depreciation - - 5,158,063.48 - -
Loss on Sale of Assets 45,299.94
Budgetary items not considered as expenses
Debt Service (Loan Amortization) - - - - -
Capital Expenditures (7,878,270.00)
Timing Differences:
Commitments (Obligated but
not yet delivered/billed) - - - -
Per Statement of Financial
Performance P 37,811,763.62 P 4,775,941.34 P 12,663,037.60 P - P -

46
 Total Income Personal Services MOOE Financial Expenses Capitay Outlay
C omparison Statement of
Budget and Actual Amounts P 777,776,000.66 P 170,436,824.61 P 225,416,904.52 P 8,719,856.64 P 202,480,831.03
Basis Differences:
Receipts not considered as income:
Borrowings (71,019,891.86)
Gain on Sale of Assets 27,050.00
Expenses not considered budgetary items
Depreciation 79,861,138.41
Loss on Sale of Assets 1,314,685.36
Budgetary items not considered as expeneses
Debt Service (Loan Amortization) (13,051,787.75)
Capital Expenditures (198,639,043.43)
Timing Differences:
Unconsumed Inventories
charged to current
appropriation (1,460,968.20)
Consumed Inventories and
deferred charges charged to
prior period appropriations 1,184,503.08
Commitments (Obligated but
not yet delivered/billed) (3,841,787.60)
Per Statement of Financial
Performance P 706,783,158.80 P 170,436,824.61 P 293,264,475.42 P 8,719,856.64 P -

32. Local Disaster Risk Reduction and Management Fund (LDRRMF)

The LDRRMF represents the amount set aside by the City to support its disaster
management activities pursuant to Republic Act (RA) No. 10121, otherwise
known as the Philippine Disaster Risk Reduction and Management Act of 2010.
The amount available and utilized during the year totaled to P95,988,198.99 and
P19,181,657.38, respectively, broken downs as follows:

Particulars Available Utilized Balance

Current Year Appropriation
Quick Response P 9,932,470.73 P 1,527,200.00 P 8,405,270.73
Mitigation Fund -
MOOE 6,275,764.18 2,809,142.34 3,466,621.84
Capital Outlay 16,900,000.00 7,230,000.00 9,670,000.00
Sub- Total 33,108,234.91 11,566,342.34 21,541,892.57

Continuing Appropriation
CY 2014 695,477.00 - 695,477.00
CY 2015 6,750,000.00 - 6,750,000.00
CY 2016 11,891,476.29 3,500,100.00 8,391,376.29
Sub-Total 19,336,953.29 3,500,100.00 15,836,853.29

47
 Particulars Available Utilized Balance
Unexpended Balance
CY 2012 13,028,610.62 - 13,028,610.62
CY 2013 4,205,956.76 - 4,205,956.76
CY 2014 3,263,458.95 - 3,263,458.95
CY 2015 10,112,997.32 - 10,112,997.32
CY 2016 12,931,987.14 4,115,215.04 8,816,772.10
Sub-Total 43,543,010.79 4,115,215.04 39,427,795.75
Total P 95,988,198.99 P 19,181,657.38 P 76,806,541.61

48
 PART II

OBSERVATIONS AND RECOMMENDATIONS

 OBSERVATIONS AND RECOMMENDATIONS

1. Projects which have not yet commenced as of December 31, 2017 amounting to
P32,360,000.00, completed projects totaling P6,248,908.09, and unbilled balance
of unfinished project amounting to P2,886,953.18 or a total of P41,495,861.27
were included in the outstanding balance of the Construction in Progress (CIP)
accounts of P202,975,385.77, contrary to COA Circular No. 2015-009, thus
resulting in overstatement of CIP and Accounts Payable accounts by
P41,495,861.27 and P35,246,953.18, respectively, and understatement of
Infrastructure Assets and Other Structures by P4,750,000.00 and P1,498,908.09,
also respectively, at year-end.

COA Circular No. 2015-009 dated December 1, 2015 prescribing the Revised
Chart of Accounts for Local Government Units (LGUs) specifies when to use and
credit Construction in Progress (CIP) accounts, to wit:

a) Construction in Progress – Infrastructure Assets – This account is used to

record the accumulated cost or other appropriate value of infrastructure
assets which are still in the process of construction or acquisition. Credit
this account for reclassification to the appropriate Infrastructure Asset
account upon completion.

b) Construction in Progress – Buildings and Other Structures – This account

is used to record the accumulated cost or other appropriate value of
buildings and other structures which are still in the process of construction
or development. Credit this account for reclassification to the appropriate
Buildings and Other Structures account upon completion.

Section 111 of Presidential Decree (PD) No. 1445 states that the accounts of
the agency shall be kept in such details as is necessary to meet the needs of the
agency and at the same time be adequate to furnish the information needed by fiscal
or control agencies of the government. It further states that the highest standards of
honesty, objectivity and consistency shall be observed in the keeping of accounts to
safeguard against inaccurate or misleading information.

Section 112 of the same PD further provides that each government agency
shall record its financial transactions and operations conformably with generally
accepted accounting principles and in accordance with pertinent laws and
regulations. Section 121 also provides that the financial statements shall be based on
official accounting records kept in accordance with law and the generally accepted
accounting principles and standards.

49
 The year-end financial statements of the City showed a balance of
P202,975,385.77 in its CIP account. The account balance comprised of CIP –
Infrastructure Assets amounting to P29,350,000.00 and CIP – Buildings and Other
Structures of P173,625,385.77, summarized below:

Unbilled Balance
Projects not yet Completed
Construction in Progress of Unfinished Ongoing Projects Total
Started Projects
Project
Infrastructure Assets
General Fund P 24,600,000.00 P 4,750,000.00 - - P 29,350,000.00
Buildings and Other Structures
General Fund 1,800,000.00 1,498,908.09 P 2,886,953.18 P 161,479,524.50 167,665,385.77
Special Education Fund 5,960,000.00 - - - 5,960,000.00
Sub-total 7,760,000.00 1,498,908.09 2,886,953.18 161,479,524.50 173,625,385.77
Total P 32,360,000.00 P 6,248,908.09 P 2,886,953.18 P 161,479,524.50 P 202,975,385.77

Verification of the status of projects under the CIP accounts showed that three
projects with a total cost of P6,248,908.09 were no longer qualified to be classified
under the CIP account as these were already completed prior to the closing of CY
2017. One of these projects had already been completed in November 2014.
Furthermore, interview with the concerned personnel revealed that it has been the
practice of the accounting department to recognize in the books CIP and Accounts
Payable for projects which biddings had already been conducted as of year-end even
if the corresponding project implementation has not yet commenced. As of
December 31, 2017, a total of 19 projects amounting to P32,360,000.00 were
recorded to these accounts based only on their obligation requests. It was also noted
that the remaining unbilled amount P2,886,953.18 for the construction of Bahay Pag-
Asa was already recorded as CIP and Accounts Payable was likewise recognized at
year-end. Only the cost of the ongoing construction of the public cemetery
amounting to P161,479,524.50 was qualified to be taken-up as CIP account. Details
of projects included in the CIP are shown in Annex 6.

In view of the foregoing, the CIP and Accounts Payable accounts were
overstated by P41,495,861.27 and P35,246,953.18, respectively, while Infrastructure
Assets and Other Structures were understated by P4,750,000.00 and P1,498,908.09,
also respectively, at year-end.

We recommended that the City Mayor direct the City Accountant to

prepare a Journal Entry Voucher (JEV) to adjust the balances of the
Construction in Progress, the related property, plant and equipment and
payable accounts.

50
 Management’s Comment:

The City Accountant informed the Audit Team that 11 of the projects
enumerated are already ongoing during the first quarter of 2018 and the unbilled
balance of the unfinished project of P2,886,953.18 was billed and paid in January 22,
2018 under Voucher No. 101-1801-0072. On the completed projects included in the
CIP accounts amounting to P6,248,908.09, Journal Entry Voucher will be drawn to
correct the accounts. Nevertheless, he assured compliance with the regulation.

2. Accounts Payable were recognized in the books for various claims amounting to
P48,278,243.82 despite lack of proper and sufficient evidence proving the
validity of such claims, contrary to the provision of Section 46 of Presidential
Decree (PD) No. 1177. Moreover, P235,108.04 of this amount has been
outstanding for two years, contrary to Section 98 of PD No. 1445, thus casting
doubt on the validity of the Accounts Payable balance as of year-end.

Section 98 of PD No. 1445 provides that payables outstanding for two years
or more and with no actual claim filed, administrative or judicial, not covered by
perfected contracts on records may be reverted to the Unappropriated Surplus. This,
however, does not apply to the unliquidated balances of accounts payable in trust
fund as long as the purposes for which the fund was created have not been
accomplished.

Likewise, Section 46 of PD No. 1177 provides, among others, that no

obligation shall be certified to Accounts Payable unless the obligation is founded on
a valid claim that is properly supported by sufficient evidence and unless there is
proper authority for its incurrence and any certification for a non-existent or fictitious
obligation and/or creditor shall be considered void.

Section 4(s) of the Manual for New Government Accounting System

(MNGAS) for Local Government Units (LGUs), Volume I, requires that liability
shall be recognized at the time goods and services are accepted or rendered and
supplier/creditor bills are received.

As of December 31, 2017, the City’s Accounts Payable totaled

P85,044,939.46, of which, P48,278,243.82 or 56.77% were claims not supported
with sufficient documents to prove their validity, while P235,108.04 of which
remained outstanding for two years as shown below:

CY 2017 CY 2016 CY 2015 Total

General Fund
20% Development
Fund P 27,486,953.18 P 514,810.00 P 28,001,763.18
GF-Proper 10,974,281.60 2,452,196.00 P 235,108.04 13,661,585.64

51
 CY 2017 CY 2016 CY 2015 Total
General Fund
City Market 400,245.00 - - 400,245.00
City Slaughter 104,670.00 - - 104,670.00
Sub-total 38,966,149.78 2,967,006.00 235,108.04 42,168,263.82

Special Education Fund 6,109,980.00 - - 6,109,980.00

Total P 45,076,129.78 P 2,967,006.00 P 235,108.04 P 48,278,243.82

Review of the schedules of the outstanding payables and individual claims

from the City Accounting Office showed that a total of P48,278,243.82 (Annex 7)
were recognized despite the absence of sufficient documents such as Disbursement
Vouchers, Inspection and Acceptance Reports and Claimant’s Billings. These
payables were noted to have been booked up upon approval of the Obligation
Request when it should have been proper to book them up as payables only at the
time when goods and services were accepted and rendered, respectively, as provided
for under Section 4(s) of the MNGAS for LGUs, Volume I. This practice of the
Accounting Office casts doubt as to the validity of the Accounts Payable balance as
of year-end.

We recommended that the City Mayor direct the City Accountant to

ascertain the validity of each and every claim that formed part of the
P48,278,243.82 recognized as Accounts Payable in the books of the City.
Thereafter, revert the amount with no valid claims including the P235,108.04
thereto, which had been outstanding for more than two years, to the
Unappropriated Surplus account in accordance with Section 98 of PD No. 1445.

Management’s Comment:

The City Accountant commented that as of to date P23,449,616.18 have

vouchers and P10,949,616.18 of which were already paid. However, he promised
compliance with the audit recommendations. Likewise, he assured that the amount
of P235,108.04 will be reverted to Unappropriated Surplus.

3. Concerned City officials and employees continuously disregarded existing rules

and regulations on the grant and liquidation of cash advances, by granting of
additional cash advance when previous cash advance was not yet settled and
drawing cash advances for salaries, wages, allowances, honoraria and other
similar payments that were not equal to the net amount reflected in the payroll,
among others, thereby showing weak internal control over the handling of cash,
which exposed government funds to possible loss or misuse.

COA Circular No. 97-002 dated February 10, 1997 provides, among others,
the following guidelines in the granting, utilization and liquidation of cash advances,

52
to wit:

4.1.2 No additional cash advances shall be allowed to any official or

employees unless the previous cash advance given to him is first
settled or a proper accounting thereof is made.

4.1.3 A cash advance shall be reported on as soon as the purpose for which
it was given has been served.

4.2.1 The cash advance for salaries, wages, allowances, honoraria and other
similar payments shall be equal to the net amount of the payroll for a
pay period.

5.1.3 For official travel, cash advance shall be liquidated within sixty (60)
days after return to the Philippines in the case of foreign travel or
within thirty (30) days after return to his permanent official station in
the case of local travel.

7.1.0 Each accountable officer with a total cash accountability of P5,000.00

or more shall be bonded. The amount of bond shall depend on the
total accountability of the officer as fixed by the Head of the Agency.
An official or employee who has both money and property
accountability shall be bonded only once to cover both
accountabilities, but the amount of bond shall be in accordance with
the Schedule issued by the Bureau of Treasury.

7.1.3 When the accountability is increased, the Accountant shall ensure that
additional bond is applied for.

Likewise, COA Circular No. 2012-004 dated November 28, 2012 provides
that cash advances for special purpose and time-bound activity must be liquidated
within 20 days from the accomplishment of the purpose.

Audit of cash advances showed that the City did not comply with the
provisions of the above-mentioned COA Circulars, to wit:

a. Additional cash advances were granted to five officials despite non-

settlement of previous cash advances as shown in Annex 8;

b. Cash Advances of the City Disbursing Officer for first salaries, wages,
allowances and honoraria were not equal to the net amount of the payroll
as shown on the next page.

53
 New/ Disbursements Excess of Cash Refund Balance, end
Additional (b) Advance over ( d) of month
Month Cash Disbursements (e)
Advances (c) (c-d)
(a) (e+a-b)
January P 2,380,000.00 P 2,159,085.84 P 220,914.16 P 220,914.16 -
February - - - - -
March 4,900.00 3,015.62 1,884.38 - P 1,884.38
April 725,000.00 723,640.00 3,244.38 3,244.38 -
May 200,000.00 196,700.00 3,300.00 3,300.00 -
June 365,000.00 363,889.20 1,110.80 - 1,110.80
July 350,000.00 325,393.02 25,717.78 1,110.80 24,606.98
August - - 24,606.98 24,606.98 -
September 500,000.00 409,677.22 90,322.78 90,322.78 -
October 215,000.00 213,983.79 1,016.21 1,016.21 -
November 228,000.00 226,900.86 1,099.14 1,099.14 -
December 350,170.48 335,817.43 14,353.05 14,353.05 -
Total P 5,318,070.48 P 4,958,102.98 P 387,569.66 P 359,967.50

c. Cash Advances for traveling expenses totaling P442,599.00 were settled

for a period ranging from 4 to 187 days and for special purpose and time
bound activity totaling P4,575,000 were settled for a period ranging from
32 to 323 days beyond their due dates (Annex 9);

d. Two officials were granted cash advances beyond their maximum cash
accountability, as follows:
CA granted in
Amount of Maximum Cash excess of
Name Purpose
Bond Accountability Maximum Cash
Accountability

Alberto S. Ararao 37,500.00 50,000.00 P 2,800,000.00 TMC Pasaya 2017

Marianne V. Colorado 37,500.00 50,000.00 1,200,000.00 City Government Workshop

on Capablity Training on
Planning and
Implementation
525,000.00 Palarong Panlungsod 2017
Total P 4,525,000.00

The afore-cited lapses showed weak or even absence of controls over the
handling of cash or granting of cash advances that exposed government funds to
possible loss or misuse.

We reiterated our recommendation that the City Mayor direct the OIC-
City Accountant and Accountable Officers to adhere strictly to the provisions of
COA Circular Nos. 97-002 and 2012-004 in the granting, utilization and
liquidation of cash advances.
54
 Management’s Comment:

The City Accountant informed that he already assigned personnel to monitor

the strict compliance on the liquidation of cash advances and promised again to
comply with the regulations.

4. Delinquent Real Property Tax (RPT) and Special Education Tax (SET) of the
City had accumulated and increased by 4.54 percent from P492,322,844.37 in
Calendar Year (CY) 2016 to P514,662,954.52 in CY 2017, which showed its
inability to enforce the remedies provided under Section 256 of
Republic Act (RA) No. 7160 and its 2012 Revenue Code, thus losing the
opportunity to immediately use the funds for its priority programs and projects
and enhance the delivery of basic services to its constituents.

Section 256 of RA No. 7160 provides that “For the collection of the basic
real property tax and any other tax levied under this Title, the local government unit
concerned may avail of the remedies by administrative action thru levy on real
property or by judicial action.”

City Tax Ordinance No. 2011-01, otherwise known as The 2012 Revenue
Code of Trece Martires City provides specific rules in dealing with delinquent RPT,
to wit:

“Section 2A.43. Notice of Delinquency in the Payment of Real Property Tax-

1. When the real property tax or any other tax imposed in this Article
becomes delinquent, the city treasurer shall immediately cause the
notice of delinquency to be posted at the main entrance of the hall
and in publicly accessible and conspicuous place in each
barangay. The notice of delinquency shall also be published once a
week for two (2) consecutive weeks, in a newspaper of general
circulation in this province.

2. The notice shall specify the date upon which the tax became
delinquent and shall state that personal property maybe distrained
to effect payment. It shall likewise state that at anytime before the
distraint of personal property, payment of the tax with surcharges,
interest, and penalties are paid before the expiration of the year
for which the tax is due, except when the notice of assessment or
special levy is contested administratively or judicially, the
delinquent real property will be sold at public auction, and the title
to the property will be vested in the purchaser, subject, however, to
the right of the delinquent owner of the property or any person
having legal interest therein to redeem the property within one (1)
year from the date of sale.

55
Section 2A.45. Remedies for the Collection of Real Property Tax –

For the collection of the basic real property tax and other tax
levied under this Article, the City may avail of the remedies by
administrative action through levy on real property and sale of
real property by public auction or by judicial action.”

Section 2A.47. Levy on Real Property –

After the expiration of the time required to pay the basic real
property tax or any other tax levied under this Article, real
property subject to such tax may be levied upon through the
issuance of a warrant or before, or simultaneously with the
institution of the civil action for the collection of the delinquent tax.
Levy on real property shall be made in the manner set forth.

The city treasurer when issuing a warrant of levy shall prepare a

duly authenticated certificate showing the name of the delinquent
the property owner or person having legal interest thereon.

The warrant shall be mailed to or served upon the delinquent real

property owner or person having legal interest. In case he is out
of the country or cannot be located, to the occupant or
administrator of the subject property.

Written notice of the levy with the attached warrant shall be mailed
to or served upon the assessor and the Registrar of Deeds of this
city, who shall annotate the levy on the tax declaration and
certificate of title of the property, respectively.

The levying officer shall submit a written report on the levy to the
Sangguniang Panlungsod within ten (10) days after receipt of the
warrant by the property owner or person having legal interest in
the property.

Section 2.A.48. Penalty for failure to Issue and Execute Warrant-

Without prejudice to criminal prosecution under the Revised Penal

Code and other applicable laws, the city treasurer or his deputy
who fails to issue or execute the warrant of levy within one (1) year
from the time the tax becomes delinquent or within thirty (30) days
from the date of the issuance thereof, or who is found guilty of
abusing the exercise thereof in the administrative or judicial
proceeding shall be dismissed from the service.”

56
 As of CY 2017, a total of P514,662,954.52 (Annex 10), which included tax
dues and penalties, was reported as tax delinquency of the 13 barangays, covering
the period from 1980 to 2017, as shown below:

Tax Dues
Period Special Education
Location Delinquent General Fund Fund Total
Barangays
1 Aguado 1980-2017 P 3,144,687.96 P 2,034,533.10 P 5,179,221.06
2 Cabezas 1996-2017 99,612,107.17 43,999,256.46 143,611,363.63
3 Cabuco 1980-2017 98,638,997.37 56,257,328.76 154,896,326.13
4 Conchu 1985-2017 9,045,581.28 5,532,929.82 14,578,511.10
5 De Ocampo 1987-2017 18,214,637.32 8,802,276.14 27,016,913.46
6 Gregorio 1980-2017 3,118,602.69 1,474,566.13 4,593,168.82
7 Hugo Perez 1994-2017 16,703,158.96 8,783,535.61 25,486,694.57
8 Inocencio 1983-2017 6,830,667.83 3,565,076.24 10,395,744.07
9 Lallana 1994-2017 23,405,737.02 15,804,103.83 39,209,840.85
10 Lapidario 1980-2017 25,673,802.44 17,329,002.78 43,002,805.22
11 Luciano 1980-2017 1,289,838.78 1,038,831.81 2,328,670.59
12 Osorio 1980-2017 3,683,329.28 3,043,843.52 6,727,172.80
13 San Agustin 1980-2017 22,672,283.43 14,964,238.79 37,636,522.22
Total P 332,033,431.53 P 182,629,522.99 P 514,662,954.52

This observation on tax delinquency was already included in our previous

year’s Annual Audit Report and just contained the updated amount of tax
delinquency in 2017. Contrary to our previous recommendations, similar measures
noted to have been undertaken by the ICO-City Treasurer in 2016 were still done by
her in 2017 in order to be able to collect the tax delinquency presented in the table
above. She still complied with the posting of notice of delinquency in public places
and published in local newspaper and submitted the certified list of all real property
tax delinquencies to the Sangguniang Panlungsod. She also exerted efforts in
intensifying collections of delinquent real property taxes by continuously conducting
tax campaigns to different barangays in coordination with the barangays, schools and
homeowners’ officials. Leaflets were also distributed to the constituents informing
them of the tax payment benefits. However, despite of the measures undertaken by
the ICO-City Treasurer, the delinquent RPT and SET increased by P22,340,110.15
or 4.54 percent, from P492,322,844.37 in CY 2016 to P514,662,954.52 in CY 2017.

It should be noted that the tax delinquencies did not only increase but most
importantly, some of these existed from as early as 1980 or 27 years ago. This
showed that the City’s efforts were not enough to collect the delinquent real property
taxes, hence, the City should have availed of the remedies by administrative action
through levy on real property and sale of real property by public auction or by
judicial action.
57
 The inability of the City to enforce the remedies provided under Section
2A.45 of the 2012 Revenue Code for delinquent real property taxes caused them to
lose the opportunity to immediately make use of the funds for its priority programs
and projects that could enhance the delivery of basic services to its constituents.

We reiterated our recommendation that the City Mayor direct the ICO-
City Treasurer to strictly enforce the remedies for the collection of delinquent
real property taxes by administrative action through levy on real property and
sale of real property by public auction or by judicial action as provided for
under Section 2A.45 of the 2012 Revenue Code of Trece Martires City.

Management’s Comment:

The ICO-City Treasurer informed the Audit Team that the City Mayor has
already authorize them to start the process of the issuance of warrant of levy and she
issued Memorandum on April 20, 2018 to the Division Chief of the Realty Tax
Division for the preparation of the same.

5. Out of the P161,718,966.33 appropriation of the 20% Development Fund for

CYs 2012 to 2017, only P36,133,714.99 or 22 percent was utilized, contrary to
Section 5.0 of Department of the Interior and Local Government (DILG) and
Department of Budget and Management (DBM) Joint Memorandum Circular
No. 2011-1 due to lack of proper planning and monitoring of the
implementation of projects, thus depriving the intended beneficiaries of the
prompt and optimum benefits from full utilization of the fund.

Section 5.0 of DILG and DBM Joint Memorandum Circular No. 2011-1
dated April 13, 2011 states that it shall be the responsibility of every Provincial
Governor, City and Municipal Mayor and Punong Barangay to ensure that the 20%
of the Internal Revenue Allotment (IRA) is optimally utilized to help achieve
desirable socio-economic development and environmental outcomes.

For Calendar Year 2017, the 20% Development Fund amounted to

P85,947,423.60, which represents 20 percent of P429,737,118 .00 estimated IRA,
while the amount of P75,771,542.73 is from the continuing appropriation, or a total
appropriation of P161,718,966.33.

Review of the Accomplishment Report for Infrastructure Projects and Report

on the Utilization of the 20% Development Fund submitted by the City Engineering
Office (CEO), City Planning and Development Office (CPDO), and City
Accounting Office (CAO) showed that only P36,133,714.99 or 22 percent of the
P161,718,966.33 available funds was utilized. The remaining balance of
P125,585,251.34 remained unexpended as of year-end as shown on the next page
(Details are shown in Annex 11).

58
 Project/Program/Activity Appropriation Obligation Balance

Current Appropriation
Social Development P 14,000,000.00 P 5,994,355.72 P 8,005,644.28
Economic Development 42,947,423.60 6,290,563.18 36,656,860.42
Environmental Management 9,000,000.00 1,497,515.20 7,502,484.80
Loan Repayment 20,000,000.00 14,632,837.25 5,367,162.75
Sub-total 85,947,423.60 28,415,271.35 57,532,152.25

Continuing Appropriation
CY 2016 49,513,958.90 5,741,736.40 43,772,222.50
CY 2015 21,629,426.14 1,976,707.24 19,652,718.90
CY 2014 4,043,952.65 - 4,043,952.65
CY 2013 33,155.04 - 33,155.04
CY 2012 551,050.00 - 551,050.00
Sub-total 75,771,542.73 7,718,443.64 68,053,099.09
Total P 161,718,966.33 P 36,133,714.99 P 125,585,251.34

Further review of the Accomplishment Report showed that out of the 32

projects/activities to be undertaken during the CY 2017 only six were implemented
of which five were 100 percent completed and one was partially completed as of
year-end.

Comparison of the Accomplishment Report and Annual Investment Plan

(AIP) for the current year revealed that the time frame indicated within which to
implement these projects were not followed as summarized below:

Timeline of Activities per Per Accomplishments

AIP
No. of Projects/Activities
Target date of No. of
Jan. to April July to Oct. to Total
Implemen- Projects/
March to June Septem Dec.
tation Activities
ber
January to 1
March
January to June 3 1 1
April to June 8 1 2 3
April to 2
September
October to 4 1 1
December
January to 14 1 1
December
Total 32 4 2 6
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 Based on the above table only one activity was implemented as scheduled
which is the repayment of loan. Of the 11 projects to be implemented from January
to June only 4 projects were implemented in July to December while one project
scheduled to be implemented on October to December was implemented in August.

Moreover, interview with the CEO and CPDO personnel and evaluation of
the accomplishment report revealed that 11 projects totaling P37,935,000.00 could
not be implemented due to right of way problems, no identified location/sites of the
projects, insufficient fund, project to be implemented was already done or to be
implemented by the Department of Public Works and Highways (DPWH) and
problem on ownership of the proposed location (Annex 12).

Further, it was noted that the specific location and allocation of fund for 12
projects from the lump sum appropriation for the construction of new roads at
various barangays amounting to P15,000,000.00 were only identified on October 9,
2017 as per Sangguniang Panlungsod Resolution No. 2017-044.

Moreover, review of the Accomplishment Reports submitted by the CPDO

and CEO showed that major projects like the construction of concrete bridge at
Talisayan Road, construction of Multi-Purpose Hall at Barangay Osorio and
construction/rehabilitation of various barangay roads were not yet implemented.
Biddings for the construction/rehabilitation of ten various barangay roads were only
conducted in December 2017.

The lack of proper planning and monitoring of the implementation of projects

of the 20% Development Fund resulted in the low percentage of accomplishment as
compared to plans/targets, thus depriving the intended beneficiaries of such projects
of the prompt and optimum benefits that could be derived from fully completed
projects or full utilization of the fund.

We recommended that the City Mayor strictly implement the provisions

of Section 5.0 of Department of the Interior and Local Government (DILG) and
Department of Budget and Management (DBM) Joint Memorandum Circular
No. 2011-1 dated April 13, 2011 and ensure that the implementation of the 20%
Development Fund is in accordance with the timeline indicated in their AIP so
that maximum benefits are availed of by the intended beneficiaries.

We also recommended that the City Mayor direct the:

 City Development Council, City Planning and Development

Coordinator and OIC-City Engineering Office to properly plan the
programs/projects of the 20% Development Fund to avoid delays in
the implementation of programs/projects;

60
  OIC-City Engineering Office shall ensure that detailed engineering
such as survey and site inspection/investigation are carried out
sufficiently before the preparation of the plans to ensure that the
technical requirements are complete and complied with before
bidding and award of contracts to avoid delays in the construction or
project implementation period; and

 City Development Council and City Planning and Development

Coordinator to review the projects enumerated in the continuing
appropriation and determine whether these are still feasible and
priority projects of the City, otherwise, re-program the said projects
together with the unexpended balance of the completed projects with
the concurrence of the Sangguniang Panlungsod, for other
development projects that will address the present needs of the
constituents.

Management’s Comment:

The OIC, City Engineering Office commented that one of the road with right
of way problem have two owners and the case is still in court. However, the right of
way problem for the Opening/Construction of New Road from Technical Education
and Skills Development Authority (TESDA) Cavite to Talisayan Road for the City
Park has already been resolved and the project is now under construction. On the
problem of site location of the Police Outpost, the officials of the barangay together
with the Homeowners Association is negotiating with Metrobank, the owner of the
lot where the outpost is to be constructed. Moreover, the City Planning and
Development Coordinator informed that the City Development Council is now in the
process of re-programming some of the projects of the continuing appropriation as
well as the unexpended balance of the completed projects.

6. Payment for overtime services amounting to P156,290.82 were granted to the

City Officials whose positions are higher than that of a Division Chief, contrary
to Section 7.1 of the Civil Service Commission (CSC) and Department of Budget
and Management (DBM) Joint Circular No. 02, s. 2015, thus considered as an
irregular expense.

CSC and DBM Joint Circular No. 02, s. 2015 dated November 25, 2015, was
issued to prescribe policies and guidelines on overtime services and overtime pay for
government employees. Section 7 of the Circular enumerates the government
officials and employees who are not authorized to render overtime services with pay
or compensation, as shown below:

7.1 Civilian personnel holding positions higher than division chief or

equivalent level;

61
 7.2 Those granted other forms of allowances or benefits for services rendered
beyond the prescribed work hours under existing laws, rules and
regulations;

The Position Classification and Compensation Scheme in LGUs provides that

the highest position below the rank of an Assistant Department Head for Component
City is SG 22. The plantilla of personnel of the City considered SG 22 as Division
Chief. Hence, officials with SG higher than 22 are not entitled to overtime pay.

Item 3.1 of COA Circular No. 2012-003 dated October 29, 2012 defines
irregular expenditure as expenditure incurred without adhering to established rules,
regulations, procedural guidelines, policies, principles or practices that have gained
recognition in laws. Irregular expenditures are incurred if funds are disbursed
without conforming with prescribed usages and rules of discipline. A transaction
conducted in a manner that deviates or departs from, or which does not comply with
standards set is deemed irregular. A transaction which fails to follow or violates
appropriate rules of procedure is, likewise, irregular.

Audit of overtime and night pay account showed that six City Officials with
salary grades higher than that of a Division Chief claimed overtime pay amounting to
P156,290.82 for rendering 244 hours overtime services for the period between
December 27, 2016 to January 21, 2017, as shown below:

Overtime
Name Designation Salary Grade hours Payroll No. Period covered Amount
rendered
Diomedes C. Bragais City Accountant 23 25 101-16-12-4207 12/27-31/2016 P 10,068.02
Ferlinda M. Paz Assistant City Treasurer 23 44 101-17-01-083 12/19-31/2016 18,000.29
Marina R. Pereña City Health Officer II 25 95 101-17-05-0607 01/02-31/2017 45,775.74
Alberto S. Ararao City Planning and
25 16 101-17-02-238 01/03-20/2017 23,463.32
Development Coordinator
Marina M. Castillo City Administrator 25 32 101-17-02-339 01/03-21/2017 30,825.36
Raymund C. Eguillos Executive Assistant V 24 32 101-17-02-339 01/03-21/2017 28,158.09
Total 244 P 156,290.82

Review of the accomplishment reports showed that Mr. Diomedes C. Bragais,

OIC-City Accountant supervised his staff in the Accounting Department who
rendered overtime services during the closing of accounts and preparation of the
year-end financial statements reports.

Likewise, Ms. Ferlinda Paz, OIC-City Treasurer oversaw the City

Treasurer’s Office employees in rendering overtime services in relation to the
closing of CY 2016 accounts and conducting tax collection campaign to delinquent
real property and business tax payers of 13 barangays.

62
 Furthermore, Dra. Marina Pereña, Ms. Marina Castillo, Mr. Alberto Ararao
and Mr. Raymund Eguillos rendered overtime services during the Business One-
Stop-Shop which was conducted from January 3 to 20, 2017. Accomplishment
reports showed the following:

a) Dra. Pereña, City Health Officer performed medical procedures and

signed and issued health certificate and sanitary permits.

b) Mr. Ararao, City Planning and Development Coordinator (CPDC) and his
staff stated that they were able to processed 2,479 business permits.

c) Ms. Castillo was the one designated to review and sign all business
permits for small business establishments. She also evaluated and initialed
business permits for commercial, industrial and institutional
establishments for final signature of the City Mayor.

d) Mr. Eguillos was tasked to review and countersign permits before

forwarding them to the office of Ms. Castillo for her initial. He also re-
evaluated the assessment of all business establishments and communicated
to clients with problems and special concern regarding their permits.

Although the work they performed had to go beyond the regular working
hours in order to fulfill the programs of the City, it is explicitly provided in Section
7.1 of the aforementioned Joint Circular that they are not authorized to render
overtime services with pay or compensation as their ranks are higher than a Division
Chief.

The payment for overtime services, therefore, did not conform with Section
7.1 of the CSC and DBM Joint Circular No. 02, s. 2015 dated November 25, 2015,
thus considered as an irregular expense.

However, the overtime payment received by Ms. Castillo was already

refunded under Official Receipt (OR) No. 3513003 dated February 1, 2018
amounting to P30,825.36.

We recommended that the City Mayor direct the City Accountant,

Assistant City Treasurer, City Health Officer, City Planning and Development
Coordinator and Executive Assistant V to refund the respective amount of
overtime pay they received totaling P125,465.46, net of refunded amount of
P30,825.36.

Management’s Comment:

The Assistant City Treasurer has already refunded the overtime payment of
P18,000.29 under OR No. 5379500 dated May 4, 2018. Moreover, the City

63
 Accountant informed that he will prepare a Journal Entry Voucher establishing
accounts receivable from the concerned officials who received overtime pay and
monitor the collection thereof.

7. Welfare goods purchased out of the Local Disaster Risk Reduction and
Management Fund (LDRRMF) amounting to P4,600,915.00 could not be
accounted as the proof of distribution were not submitted nor attached to the
disbursement voucher (DV), contrary to Section 4 (6) of Presidential Decree
(PD) No. 1445, thereby casting doubt on the propriety of the transactions.
Furthermore, purchase of these welfare goods were taken up as direct expense
instead of inventory account, as required under Commission on Audit (COA)
Circular Nos. 2014-002 and 2015-009.

Section 4 (6) of PD No. 1445 requires that claims against government funds
shall be supported with complete documentation.

COA Circular No. 2014-002 dated April 15, 2014 provides, among others,
that:

 Supplies, materials, equipment and relief goods procured out of the fund
shall be taken up in the books under the appropriate Inventory and/or
Property, Plant and Equipment (PPE) account. Except for PPE, issuances
for distribution to end-users/beneficiaries shall be supported with
Requisition Issue Slip (RIS) and taken up under the appropriate expense
account.

 The Accounting Unit shall prepare and maintain PPE Ledger Cards and
Supplies Ledger Cards for all PPE and relief goods, respectively,
procured out of appropriations. For check and balance, the Property and
Supply Unit shall maintain Property Cards and Stock Cards.

 Small items purchased for disaster response and rescue activities, which
do not qualify under the equipment classification, shall also be
recorded under the appropriate Inventory account and the issuances to
be charged to appropriate expense account. Issuances shall be supported
with RIS.

 The Monthly Report of Supplies and Materials Issued (RSMI) shall be

prepared by the Property and Supply Unit based on the RIS. The Report
shall be submitted to the Accounting Unit for recording in the books of
account.

Moreover, COA Circular No. 2015-009 dated December 1, 2015 provides

that Welfare Goods for Distribution is the sub-account to be used, under Inventories
held for Distribution, to record the cost of goods for distribution such as canned
64
goods, blankets, mats, kitchen utensils, flashlights and other similar items to people
affected by calamities/disasters/ground conflicts. Upon distribution, this account is
credited and an expense account, Welfare Goods Expenses, is used to record the cost
of goods issued/distributed for such purpose, which also includes the cost of food
served to people affected by calamities/disasters/ground conflicts.

Further, paragraph 6.6.3 of National Disaster Risk Reduction and

Management Council (NDRRMC), Department of Budget and Management (DBM)
and Department of the Interior and Local Government (DILG) Joint Memorandum
Circular No. 2013-1 dated March 25, 2013 requires that the release and use of the
30% Quick Response Fund (QRF) shall be supported by a resolution of the local
Sanggunian declaring the Local Government Unit (LGU) under the state of calamity.

For Calendar Year 2017, the City’s total appropriation for the Local Disaster
Risk Reduction Management Fund (LDRRMF) was P33,108,234.91, representing
five percent (5%) of the estimated revenue from regular sources of P662,164,698.20.
Out of the total budget for LDRRMF, P23,175,764.18 or 70 percent was allocated
for Mitigation Fund and P9,932,470.73 or 30 percent for Quick Response Fund.

Review of records on fund utilization revealed that welfare goods for

stockpile for disaster preparedness amounting to P3,083,675.00 were purchased on
April 25, 2017 out of CY 2016 unexpended LDRRMF. The items purchased were
144 boxes of easy-open can sardines and 1,255 sacks of commercial rice. In
addition, in response to the Sangguniang Panlalawigan Resolution No. 811 dated
September 12, 2017, which declared the Province of Cavite under the state of
calamity due to the onslaught of tropical depression Maring, the City purchased 664
cavans of rice amounting to P1,517,240.00 on November 17, 2017 to aid the families
affected by the typhoon and the amount was charged against the CY 2017 30% QRF.
However, it was noted in audit that the said disbursement was not supported by a
resolution from the local Sanggunian authorizing the release of the amount, contrary
to NDRRMC-DBM-DILG Joint Memorandum Circular No. 2013-1 dated March 25,
2013, casting doubt on the transparency and accountability in the use of the Fund.

Audit of the related DVs also disclosed the absence of lists of recipients and
the proof of receipt of the welfare goods supposed to have been distributed, casting
doubt on whether the goods were actually distributed and received by the intended
victims of the calamity.

Furthermore, verification of the Journal Entry Vouchers (JEVs) for the

purchase of the welfare goods for stockpile worth P3,083,675.00 showed that the
amount was debited to Food Supplies Expense while the amount of P1,517,240.00
for the victims of typhoon Maring was debited to Other Maintenance and Other
Operating Expenses instead of debiting both under the Inventory account, Welfare
Goods for Distribution account and subsequently record them as Welfare Goods

65
Expenses upon distribution to the beneficiaries, contrary to COA Circular Nos. 2014-
002 and 2015-009 dated April 15, 2014 and December 1, 2015, respectively.

We recommended that the City Mayor direct the:

 Submission to the Audit Team of a copy of the Resolution or

Ordinance enacted by the Sangguniang Panlungsod ratifying the
release and use of P1,517,240.00 to purchase 644 cavans of rice
chargeable against the 30% QRF of the City. Henceforth, adherence
to paragraph 6.6.3 of NDRRMC-DBM-DILG Joint Memorandum
Circular No. 2013-1 is enjoined to ensure proper use of public funds;

 City Disaster Risk Reduction Management Officer and City Social

Welfare Development Officer to provide to the Audit Team the
Distribution List of the above subject purchases duly acknowledged
by the actual beneficiaries/recipients to attest to the veracity of the
fund utilization and avoid the issuance of Notice of Suspension.
Henceforth, all assistance extended or goods distributed to intended
beneficiaries be properly documented to ensure that the resources of
the government are managed and utilized in accordance with the
established rules and regulations; and

 City Accountant and the General Services Officer to comply with the
accounting and reporting guidelines on the utilization of the
LDRRMF prescribed under COA Circular Nos. 2014-002 and 2015-
009 dated April 15, 2014 and December 1, 2015, respectively, to
ensure the correctness and reliability of the financial reporting of the
City.

Management’s Comment:

The City Accountant submitted Sangguniang Panlungsod Resolution

No. 2017-045 dated November 6, 2017 authorizing the utilization of Quick Response
Fund amounting to P1,517,240.00 for the purchase of rice intended for families
affected by typhoon Maring. He also submitted list of names as beneficiaries of the
welfare goods in the form of attendance sheet. Likewise, he assured compliance
with the accounting and reporting guidelines on the utilization of LDRRMF.

Audit Team’s Rejoinder:

The submitted list of beneficiaries did not indicate the quantity, kind of
welfare goods distributed and proof of acknowledgement by the
beneficiaries/recipients, hence could not be accounted.

66
8. School supplies and erasable books purchased amounting to P1,184,027.50 and
P739,603.15, respectively, could not be accounted as the proof of distribution
were not submitted nor attached to the disbursement voucher (DV), contrary to
Section 4 (6) of Presidential Decree (PD) No. 1445. Likewise, inconsistencies in
the procurement of school supplies were also noted, thus casting doubt on the
validity and propriety of the transactions. Moreover, purchases of the above
amount of school supplies and total number of erasable books for distribution
amounting to P1,989,250.00 were recorded as outright expense and Property
Plant and Equipment (PPE), respectively, instead of the proper inventory
accounts as required under Commission on Audit (COA) Circular No. 2015-
009, thus resulting in the understatement of inventory at the time of purchase
by P1,184,027.50 and overstatement of PPE and government equity accounts
each by P1,989,250.00.

Section 4 (6) of Presidential Decree No. 1445 requires that claims against
government funds shall be supported with complete documentation.

Philippine Public Accounting Standards (PPSAS) 12 defines Inventories are

assets:

a) In the form of materials or supplies to be consumed in the production

process;

b) In the form of materials or supplies to be consumed or distributed in

rendering of services;

c) Held for sale or distribution in the ordinary course of operations; or

d) In the process of production for sale or distribution.

Moreover, COA Circular No. 2015-009 dated December 1, 2015 provides,

among others, sub-accounts of Inventories held for Distribution, as follows:

a) The Textbooks and Instructional Materials for Distribution is used to

record the cost of textbooks and instructional materials including
flipcharts, video clips/slides, and the like, purchased/received for
distribution. Upon distribution, this account is credited and an expense
account, Textbooks and Instructional Materials Expense, is used to
record the cost of books and instructional materials distributed to public
schools including flipcharts, video clips/slides and the like.

b) Other Supplies and Materials for Distribution is used to record the

amount of purchased/acquired inventories not falling under any of the
specific inventory accounts held for distribution. Upon distribution, this
account is credited and the Other Supplies and Materials Expense

67
 account is used to record the cost of inventories issued/distributed to end-
users not otherwise classified under the specific inventory expense
accounts.

In December 2017, the City purchased an additional 6,735 sets of school

supplies as aid to the students enrolled in public schools amounting to P1,184,027.50
under a repeat order mode of procurement with the following references:

Particulars Reference No. Date

Purchase Request 17-12-627 07/28/2017
Obligation Request 101-17-12-3142 12/15/2017
BAC Resolution 17-417 07/28/2017
Purchase Order 17-12-549 08/10/2017
Sales Invoice 0003 8/16/2017
Inspection and
Acceptance Report unnumbered undated
Check No. 78586 12/22/2017
Official Receipt 0005 12/27/2017

Audit of the transaction showed the following:

1) Purchase Request (PR), Bids and Awards Committee (BAC) Resolution,

Purchase Order (PO) and Sales Invoice were dated in July and August
2017. However, review of the entries in the logbooks of the PRs, BAC
Resolutions and POs maintained by the BAC showed that the series of
the relevant reference numbers indicated therein were all recorded in
December 2017. Likewise, the Obligation Request was dated December
15, 2017 and the said amount was charged to Other Supplies and
Materials; and Textbooks and Instructional Materials Expenses
amounting to P471,651.25 and P712,376.25, respectively. These all point
to the fact that the transactions were initiated and consummated in
December 2017.

The inconsistencies between the dates and reference numbers in the

procurement activity cast doubt on the validity and propriety of the
transactions.

2) The list of recipients and the proof of receipts of the school supplies
supposed to have been distributed was not submitted nor attached to the
DV.

3) Based on the Inspection and Acceptance Report, the City Administrator

accepted the schools supplies instead of the General Services Officer.

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 4) No inventory has been reported at year-end.

Furthermore, in May 2017, the City purchased 5,000 copies of erasable books
for use of the day care children amounting to P1,989,250.00. Review of the
transaction revealed the following:

1) Only 3,141 copies of erasable books amounting to P1,249,646.85 were

duly acknowledged and received by the day care workers and distributed
to 41 day care centers. The remaining 1,859 copies worth P739,603.15
could not be accounted as the attached documents were just list of names
without signatures and the locations of their day care centers were also
not identified, hence proof that these were indeed received by the
children could not be substantiated.

2) Review of the erasable books showed that its contents is not suited for
day care children as the book is more on reading and recognition of
vowels and consonants sounds (Annex 13) and applicable to formal
schooling such as kindergarten or grade 1 pupils. Whereas, day care
centers provides services to children four years old and below and the
services only include recognition of colors, shapes and numbers, arts and
crafts, socialization, tracing dots/lines, motor development and
storytelling.

3) Based on the Inspection and Acceptance Report, the City Administrator

accepted the erasable books instead of the General Services Officer.

4) No inventory has been reported at year-end.

Verification of the Journal Entry Vouchers (JEVs) for the purchases of school
supplies and erasable books showed that these were incorrectly taken up in the books
as direct expense and PPE, respectively, contrary to COA Circular No. 2015-009
dated December 1, 2015. Entries made are shown below:

Upon purchase Upon distribution

Particulars Amount
accounted as should be should be
Textbooks and Instructional
School supplies 712,376.25
Materials Expense Other Supplies and
Other Supplies and
Materials for
Other Supplies and Materials Expense
471,651.25 Distribution
Materials Expense
1,184,027.50
Textbooks and
Textbooks and
Instructional
Erasable Books 1,989,250.00 Books Instructional Materials
Materials for
Expense
Distribution

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 The afore-cited observations on the lack of the required supporting
documents to prove the correctness of quantity delivered and distributed as well as
the propriety of the procurement process undertaken would result in the issuance of
relevant Notices of Suspensions. Moreover, the misclassification of the erasable
books as PPE resulted in the overstatement of the PPE and government equity
accounts each by P1,989,250.00.

We recommended that the City Mayor direct the:

 City Administrator to provide to the Audit Team the Distribution

List of the school supplies and erasable books worth P1,184,027.50
and P739,603.15, respectively, duly acknowledged by the actual
beneficiaries/recipients to attest to the veracity of the disbursements
and avoid the issuance of Notice of Suspension. Henceforth, all
supplies and materials distributed to intended beneficiaries be
properly documented to ensure that the resources of the government
are managed and utilized in accordance with the established rules
and regulations;

 Bids and Awards Committee (BAC) and other concerned officials to

provide/submit justifiable reasons for the inconsistencies between the
dates and reference numbers in the purchase of school supplies
worth P1,184,027.50 for evaluation by the Audit Team, otherwise,
the payment made may be suspended/disallowed in audit;

 City Social Welfare and Development Officer to be the one in charge

of determining and requesting for the appropriate instructional
materials for day care children to avoid wastage of government
funds;

 City General Services Officer to be in charge of the acceptance of all

purchases of goods as property custodianship, recording and
maintaining of property records are among the functions of his
Office;

 City Accountant and the General Services Officer to comply with the
accounting and reporting requirements prescribed under COA
Circular No. 2015-009 dated December 1, 2015 to ensure the
correctness and reliability of the financial reporting of the City; and

 City Accountant to draw a Journal Entry Voucher to adjust the

overstatement of the PPE and government equity accounts each by
P1,989,250.00.

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 Management’s Comment:

The City Officials promised compliance with the audit recommendations.

9. An aggregate amount of P11,805,000.00 from the Local Government Support

Fund (LGSF) and Bottom-up Budgeting (BuB) support funds received from the
different National Government Agencies (NGAs) remained unutilized as of
December 31, 2017, thus failing to realize the purposes for which the funds were
received and ultimately depriving the constituents of the immediate enjoyment
of the intended benefits that could be derived therefrom.

In pursuit of attaining the Philippines Development Plan’s goal of inclusive

growth and poverty reduction and promoting good governance at the local level, the
Human Development and Poverty Reduction Cluster (HDPC) was tasked to improve
the overall quality of life of the Filipino and translating the gains on good
governance into direct, substantial benefits that will empower the poor and
marginalized segments of the society through the implementation of Bottom-up
Budgeting (BuB) funded priority poverty reduction projects as identified at the
city/municipal level through participatory planning and budgeting process.

Likewise, cognizant of the need to provide further support to the Local

Government Units (LGUs) to enable them to fully carry out functions devolved to
them while at the same time building their capacity towards genuine fiscal
autonomy, the National Government has scaled up its efforts to ensure meaningful
devolution by providing a Local Government Support Fund (LGSF). It seeks to
equitably assist the LGUs in the delivery of basic services by providing financial
subsidy for the implementation of their priority programs and projects.

Review of the Due to NGAs account disclosed a balance of P57,598,169.29

as of December 31, 2017. Of this amount, P11,805,000.00 pertains to the funds
received from the different NGAs in 2011 to 2017 that remained unutilized as of
year-end. Details of which are shown below:

Date Amount Utilized /

Fund Source Agency Amount Received Balance
Received Remitted
General Fund
Local Government Support
Fund (LGSF) DBM 12/27/2011 P 2,600,000.00 - P 2,600,000.00

Trust Fund
Bottom-up Budgeting (BuB)
Procurement of 1 unit tractor DA 12/28/2016 2,890,000.00 2,890,000.00

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 Date Amount Utilized/
Fund Source Agency Amount Received Balance
Received Remitted
Trust Fund
Bottom-up Budgeting (BuB)
Barangay Health Stations DOH 01/31/2017 6,000,000.00 - 6,000,000.00
Kaong Planting in
Riverbanks, Streambanks DENR 1/25/2017 296,875.00 P 100,625.00 196,250.00
Kaong Planting in
Riverbanks, Streambanks DENR 02/28/2017 118,750.00 - 118,750.00
Sub-total 9,305,625.00 100,625.00 9,205,000.00
Grand Total P 11,905,625.00 P 100,625.00 P 11,805,000.00

Further, review of the receipts and utilization of the LGSF and BuB projects
disclosed the following:

1. The amount of P2,600,000.00 is for the construction of Agtas Bridge at

Aguado-Cabuco Road from the LGSF granted on December 27, 2011,
which remained unutilized as of to date. The City Planning Development
Coordinator informed that such amount is not sufficient to finance the
said project and additional fund from the General Fund will be
appropriated to implement the project .

2. The Department of Agriculture granted the City Government the amount

of P2,890,000.00 on December 28, 2016 for the procurement of one unit
tractor to enhance the agricultural production of the farmers. The City
Agriculturist informed the Audit Team that she already prepared the
Purchase Request and forwarded to the Bids and Awards Committee
(BAC) on March 17, 2017 for the procurement of the tractor. However,
as of year-end the amount remained unutilized.

3. The amount of P6,000,000.00 from the Department of Health is intended

for the construction of barangay health stations (BHS) at barangay
Cabuco, Hugo Perez and Aguado. The fund was received on January 31,
2017, however, construction commenced only on November 6, 2017.
The City Engineering Office personnel informed the Audit Team that the
implementation was delayed as there was no specific locations for the
projects in Hugo Perez and Aguado. He explained that since the design
plans were being rushed for the request of budget from the national
government, location sites were not considered in the preparation of the
plans for the two barangays. However, even if there was already a site for
the construction of BHS in Barangay Cabuco, the City Engineering
Office decided to implement the three projects simultaneously.
Accomplishment report submitted showed that as of December 31, 2017
the construction of BHS in Barangay Cabuco, Hugo Perez and Aguado
are 50%, 15% and 20% completed, respectively.
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 4. The funds received from the Department of Environment and Natural
Resources totalling P415,625.00 were intended for kaong planting in
riverbanks and stream banks in order to prevent flooding. However, only
P100,625.00 was disbursed out of the funds received in CY 2017 as the
City prioritized the disbursement of funds received in 2016 amounting to
P771,875.00.

The delays in the implementation of the programs/projects deprived the

constituents of the immediate enjoyment of the intended benefits therefrom.

We recommended that the City Mayor direct the responsible focal

persons to expedite the implementation of BuB funded projects. Likewise,
direct the City Development Council and City Planning and Development
Coordinator to include in the City’s Investment Plan/Program the counterpart
of the City Government for the Construction of Agtas Bridge at Aguado-
Cabuco Road and submit the same to the Sangguniang Panlungsod for
approval. After which, provide appropriation for the additional funds to
implement such projects.

Management’s Comment:

The City Planning and Development Coordinator commented that the City
will provide additional funds for the construction of Agtas Bridge. Likewise, the
City Agriculturist and OIC, City Engineering Office informed the Audit Team that
the bidding for the procurement of tractor will be scheduled in June and the
construction of the BHS in Barangay Cabuco and Aguado were already completed
while BHS in Hugo Perez is 75% completed as of May 18, 2018.

10. The City’s revised Ten-Year Solid Waste Management Plan (SWMP) for the
years 2015-2024 was not yet approved by the National Solid Waste Management
Commission (NSWMC) due to non-submission of the copy of contract with
private hauler and/or sanitary landfill, safe closure and rehabilitation plan for
the open dumpsite duly acknowledged by the Environmental Management
Bureau (EMB) Regional Office and complete data on Chapters 11 and 12 on the
Ten-Year SWMP to the NSWMC, thus delaying the implementation of an
efficient solid waste management program.

Section 16 of Republic Act (RA) No. 9003, otherwise known as the

Ecological Solid Waste Management Act of 2000 provides that the City, through its
Local Solid Waste Management Board, shall prepare its 10-year solid waste
management plans consistent with the National Solid Waste Management
Framework. The Solid Waste Management Plan shall be subjected to the approval of
the Commission.

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 The City Solid Waste Management Board was created under Executive Order
No. 09, series of 2013 and signed by the City Mayor on October 16, 2013. The same
was reorganized by virtue of Executive Order No. 04 series of 2017 and signed by
the City Mayor on August 4, 2017 due to the assumption to office of the new set of
local officials.

In CY 2016, the NSWMC filed a complaint against the City’s elective

officials and OIC-CENRO with the Office of the Ombudsman for allowing the
operation of the open dumpsite under Case No. FF-C-16-0197 for the violation of
Section 37 of Republic Act No. 9003 which provides that “No open dumps shall be
established and operated, nor any practice or disposal of solid waste by any person,
including LGUs, which constitutes the use of open dumps for solid wastes, be
allowed after the effectivity of the Acts.”

To comply with Section 37 of RA No. 9003 and upon the directive of the
Office of the Ombudsman, the City permanently closed the open dumpsite in August
2016 and acquired a three hectares lot adjacent to the former dumpsite. A half court
size Material Recovery Facility (MRF) was constructed and also served as a transit
point for the hauling and disposal of the City’s waste done by the private contractor.

Likewise, the City submitted the Safe Closure and Rehabilitation Plan
(SCRP) for the open dumpsite to the Office of the Ombudsman and EMB Regional
Office on March 1, 2017 to comply with the requirements. As of to date, no final
decision has been made by the Ombudsman regarding the complaint.

On July 31, 2017, the City Mayor received a letter from the Executive
Director of NSWMC requiring the City Government of Trece Martires to
immediately cease operation of the open dumpsite and submit on or before 60 days,
the copy of contract with private hauler and/Sanitary Landfill, Safe Closure and
Rehabilitation Plan duly acknowledged by the EMB Regional Office, and complete
data on Chapters 11 and 12 on the 10-year SWMP. Chapters 11 and 12 pertain to
cost estimates/financial aspects and plan implementation.

Inquiry made with the former OIC-CENRO disclosed that the operation of
the open dumpsite was already closed and was under rehabilitation. Likewise, the
new OIC-CENRO informed the Audit Team that the City has already a contract with
Postema Construction and Development Corporation for the hauling and disposal of
garbage and Chapters 11 and 12 of the Ten-Year SWMP were already
revised/updated. However, as of this date the revised SWMP together with the
required documents was not yet submitted to the NSWMC as the SWMP is still
being reviewed by the City Legal Officer and for approval by the Sangguniang
Panlungsod.

It is noteworthy to mention that in relation to the revised Ten-Year SWMP

the Sanggunian Panlungsod passed and approved City Ordinance No. 2017-267

74
 dated November 20, 2017 providing for a comprehensive ecological solid waste
management to ensure the protection of public health and the environment for the
safety convenience and general welfare of inhabitants in the City.

The non-approval of the SWMP delays the implementation of an efficient

solid waste management programs.

We recommended that the City Mayor direct the:

 City Legal Officer to hasten the review of the revised Ten-Year Solid
Waste Management Plan of the City and submit the same to the
Sangguniang Panlungsod for approval; and

 OIC-CENRO that as soon as the SWMP is approved by the

Sangguniang Panlungsod, submit immediately the same together with
the required documents to the NSWMC for approval.

Management’s Comment:

The City Legal Officer informed the Audit Team that the Ten-Year SWMP
has already been reviewed and the comments/analysis relative thereto has been
forwarded to the OIC-CENRO for inclusion in the revised SWMP before submission
to the Sangguniang Panlungsod. Likewise, the OIC-CENRO assured that once the
revised Ten-Year SWMP is approved by the Sangguniang Panlungsod, he would
submit the same together with the required documents to the NSWMC for approval.

11. The designation of an Architect as Officer in Charge (OIC) of the City

Engineering Office in place of a duly appointed City Engineer who was assigned
to undertake other functions is contrary to the provisions of Section 477 of the
Republic Act (RA) No. 7160, known as The Local Government Code of 1991,
that could result in the non-efficient performance of the duties and functions of
a City Engineer.

Section 477 of RA No. 7160 provides the qualifications, powers and duties of
the Engineer, as follows:

a) No person shall be appointed engineer unless he is a citizen of the

Philippines, a resident of the local government unit concerned, of good
moral character, and a licensed civil engineer. He must have acquired
experience in the practice of his profession for at least five (5) years in
the case of the provincial or city engineer, and three (3) years in the case
of the municipal engineer.

The City and Municipal engineer shall act as the local building official.

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 b) The engineer shall take charge of the engineering office and shall:

1) Initiate, review and recommend changes in policies and objectives,

plans and programs, techniques, procedures and practices in
infrastructure development and public works in general of the local
government unit concerned;

2) Advise the governor or mayor, as the case may be, on infrastructure,

public works, and other engineering matters;

3) Administer, coordinate, supervise, and control the construction,

maintenance, improvement, and repair of roads, bridges, and other
engineering and public works projects of the local government
concerned;

4) Provide engineering services to the local government unit concerned,

including investigation and survey, engineering designs, feasibility
studies, and project management; and

5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.

Review of the personnel schedule of the Annual Performance Budget for

CY 2017 showed that the City Government Department Head of the City
Engineering Office is Engr. Aurelio D. De Ocampo, a Civil Engineer. The Audit
Team obtained a copy of the appointment of Engr. De Ocampo from the Human
Resource Management Division (HRMD) and showed that he was appointed as City
Engineer effective March 8, 2016. However, on October 5, 2016 the City Mayor
issued Office Order No. 12-2016 designating Arch. Ronnie P. Javier, Architect IV,
as OIC of the City Engineering Office and Office Order No. 13-2016 detailing
Engr. Ocampo to the City Mayor’s Office to perform duties and responsibilities for
the special project that may be assigned to him. It was also noted that Arch. Javier
acts as the city building official.

Considering that the qualification standards of a City Engineer requires that

he be a licensed civil engineer who will be performing the duties and function of
delivering engineering services, the designation of Arch. Javier as OIC of the City
Engineering Office contradicts such standards.

We recommended that the City Mayor designate a duly licensed Civil

Engineer to head the City Engineering Office in compliance with Section 477 of
RA No. 7160.

76
 Management’s Comment:

The City Mayor commented that he will study the matter and accordingly
take appropriate action.

12. A Gender and Development (GAD) Database containing information crucial in

gender responsive planning, programming and policy formulation was not
established and maintained by the City, contrary to Section 4.1.B.1 of Joint
Memorandum Circular No. 2013-01 of the Philippine Commission on Women
(PCW), Department of the Interior and Local Government (DILG),
Department of Budget and Management (DBM) and National Economic and
Development Authority (NEDA), thus giving no assurance that all programs,
projects and activities (PPAs) integrated in the GAD Plan and Budget
addressed the gender issues and concern in the locality to the disadvantage of
the intended beneficiaries. Moreover, activities which are not GAD-related
were included in the Annual GAD Plan and Budget for CY 2017.

A GAD database is a system that contains all sex-disaggregated data and

gender statistics derived from the ecological profile of the Local Government Units
(LGUs) covering all aspects of local governance areas. It covers specific
data/information that pertains to the status of men and women internal to the
organization and at the community level. Establishment and maintenance of GAD
database is crucial in the preparation of gender responsive plans, programs and
activities as well as sound formulation of GAD policies and decision making of the
LGU that will address the identified gender issues and concerns. As such, LGUs are
encouraged to exhaust all available resources for the collection and processing of
data requirements of the GAD database.

Verification disclosed that the City has not yet established and maintain a
GAD database as mandated under Section 4.1.B.1 of Joint Memorandum Circular
No. 2013-01 of the PCW, DBM and NEDA which states that:

“LGUs through their Local Planning and Development Offices

(LPDO), shall spearhead the setting up and maintenance of the GAD
database to serve as basis for gender-responsive planning,
programming and policy formulation. The GAD database, which can
either be manually operated or developed through software, shall form
part of the overall Management Information System (MIS) of the
LGU.”

Further, “Annex B: Data Requirements for the LGU Gad Database” of PCW-
DILG-DBM-NEDA Joint Memorandum Circular No. 2013-01 states:

“To set up the GAD database, the LGU may utilize its existing
database planning and data-gathering tools and management

77
 information system to generate gender statistics, age and sex-
disaggregated data and other GAD-related information from primary
and secondary sources of data such as surveys, studies, focus group
discussion (FGD) results, progress reports, monitoring and evaluation
results and ODA reports.

The LGU GAD Focal Point System (GFPS) and DILG Operations
Field Officer assigned to the LGU shall assists the Local Planning
Development Office (LPDO) in the generation and processing of sex-
disaggregated data and GAD-related information. Other data-
producing LGU departments and national government agencies
operating at the local level with regional and/or local presence shall
be tapped by the LPDO to provide sex-disaggregated information to
complement the GAD database.”

A gender statistics and GAD-related information are crucial for evidenced-

based planning and policymaking, the LGU GAD database shall serve the following
purposes:

1. To aid in gender analysis of the LGU situation by surfacing gender gaps

and/or differences among women and men in terms of their access to
basic services and facilities, control of resources and enjoyment of rights,
privileges, benefits and rewards.

Information resulting from gender analysis shall be considered and

integrated into the LGU GAD Plan and Budget, gender-responsive
CLUP/CDP/ELA and the LGU GAD Code as provided for in the Joint
Memorandum Circular.

2. To inform the LGU on the extent of implementation and/or attainment of

gender equality and women’s empowerment goals and outcomes.

The GAD database shall help monitor progress made in the

implementation of international commitments and national laws on
GAD, including the results of said implementation.

3. To provide baseline data on the status of women and men in the LGU as
provided for in Section 41 of the MCW-IRR. The process of coming up
with the baseline report shall be guided by the Joint Memorandum
Circular and/or determined by concerned oversight agencies.

The City of Trece Martires appropriated the amount of P43,968,750.00 for

GAD related programs, projects and activities (PPAs) for the current year based on
the submitted Annual GAD Plan and Budget while per GAD Annual

78
Accomplishment Report the total expenses incurred amounted to P31,309,954.00 or
71 percent of the total budget.

Interview with the City Planning and Development (CPD) Officer disclosed
that the program, projects and activities included in the Annual GAD Plan and
Budget were just collated from the identified GAD-related activities of the different
offices of the City by the GAD Focal Point System (GFPS), Technical Working
Group (TWG) and those concerned offices. The gender issues as well as the
performance indicators and targets were also provided therein by each offices but
there was no GAD database established and maintained by the CPDO that could
provide accurate and complete bases in determining the gender issues and concerns
in the locality, thus cast doubt on the responsiveness of such GAD activities to the
actual gender issues and concerns of the target constituents of the locality.

Review of the Annual GAD Plan and Budget and GAD Accomplishment
Report for CY 2017 disclosed that some programs and projects therein with
appropriation of P32,718,750.00 and corresponding disbursements of
P22,615,839.00 were not GAD-related activities as the gender issues and
objectives they relate to were general in nature (Details are shown in Annex 14). It
was also noted that there were programs with accomplishments but have no specific
GAD activity and performance indicator and target.

Furthermore, the GFPS-TWG informed the Audit Team that the concerned
officials like the GFPS-TWG and CPDO, among others, were still confused and not
fully aware on GAD-related laws and international commitments, gender
mainstreaming, gender analysis, gender responsive planning and budgeting and GAD
related tools including the development and maintenance of GAD Database.

The inability to establish and maintain a GAD Database and the inadequacy
of knowledge and competencies of the officials and employees of the City could
result in the non-identification of existing, as well as emerging gender issues and
concerns that need to be addressed.

We recommended that the City Mayor as the Chairman of GAD Focal

Point System (GFPS) initiate the establishment and maintenance of a GAD
Database that is compliant with all the requirements and features provided for
in the above-quoted Joint Memorandum Circular and direct the TWG or
Secretariat, which is composed of the different offices within the City, to
actively participate in its development.

We also recommended the City officials and employees undergo more

capacity trainings and programs on GAD, which shall include but not limited to
gender sensitivity training (GST), gender responsive planning and budgeting,
gender analysis, gender audit and GAD tools for them to be capacitated on
GAD.

79
 Management’s Comment:

The City Officials assured compliance with the audit recommendations.

Unsettled Suspensions, Disallowances and Charges

Unsettled Suspensions, Disallowances and Charges as of year-end amounted to

P131,677,656.89, broken down as follows:

Beginning Balance January 1 - December 31, 2017 Ending Balance

Notices (As of January 1, Matured into (As of December 31,
2017) Issuances Settlement Disallowance 2017)
Notice of Suspension P 18,916,939.52 P 47,806,388.77 - P 10,000,000.00 P 56,723,328.29
Notice of Disallowance 64,954,328.60 10,000,000.00 - - 74,954,328.60
Total P 83,871,268.12 P 57,806,388.77 - P 10,000,000.00 P 131,677,656.89

Disallowances totalling P206,321.43 have been settled on January 29, 2018 under
official receipt numbers 3510480 to 3510483.

Compliance with Tax Laws and Regulations

Records showed that taxes withheld for the current month were remitted on the
following month, on or before the deadline in accordance with Section 2.81 of Revenue
Regulations No. 2-98 dated April 17, 1998, Revenue Memorandum Circular Nos. 23-
2007 and 23-2012 dated March 20, 2007 and February 14, 2012, respectively. The
summary of taxes withheld from employees and suppliers/contractors and remittance
thereof to the BIR in CY 2017 is presented below:

Withheld for the

Fund Beginning year Remittances Balance

General Fund - P 28,162,722.00 P 28,162,722.00 -

Special Education
Fund P 231,991.93 534,938.96 766,930.89 -
Trust Fund - 751,177.74 751,177.74 -
Total P 231,991.93 P 29,448,838.70 P 29,680,830.63 -

80
Compliance with RA No. 8291

The City is regularly deducting the premium contributions, amortization of loans

and other amounts due from the permanent employees together with the government’s
share and remitting the same to the Government Service Insurance system (GSIS) on or
before the tenth day of the following month to which the contributions apply in
accordance with Section 6 of RA No. 8291. The summary of premiums and amortizations
deducted and remitted to the GSIS in CY 2017 is shown below.

Withheld for the

Fund Beginning year Remittances Balance

General Fund - P 32,001,168.81 P 31,993,702.89 P 7,465.92

Special Education
Fund - 1,259,556.57 1,259,556.57 -
Total - P 33,260,725.38 P 33,253,259.46 P 7,465.92

The year-end balance amounting to P7,465.92 deducted for the month of

December 2017 was remitted on January 8, 2018.

Official Development Assistance (ODA)

The City had not received ODA fund.

81
 PART III

STATUS OF IMPLEMENTATION OF PRIOR YEAR’S

AUDIT RECOMMENDATIONS
 Status of Implementation of Prior Year’s Audit Recommendations
As of December 31, 2017

Of the 25 audit recommendations contained in the 2016 Annual Audit report, ten were fully implemented, eight were partially
implemented and seven were not implemented.

Reason for
Management’s Status of
Partial/Non-
Audit Observation Audit Recommendation Reference Action Implementation
implementation
1. Thirty six (36) parcels We recommended that the AAR
of land with a total City Mayor direct: 2016
market value of Page 48
P28,945,520.00 a. the City Accountant to The City Fully
remained unrecorded book up the 36 parcels Accountant has Implemented
in the books of of land which were already booked up
accounts, thus already in the name of the parcels of land
understated the land the City Government under the name of
account by the same valued at market price the City
amount. Moreover, 41 of P28,945,520.00; Government under
parcels of land JEV No. 101-17-
totalling 05-09122 dated
P109,773,647.50 were May 31, 2017.
not covered by
Transfer Certificate of b. the General Services The General Fully
Titles (TCTs) in the Officer to verify with Services Officer Implemented
name of the City, the Register of Deeds has already
contrary to Section of the Province of verified with the
449 of the Government Cavite the correctness Register of Deeds
Accounting and and validity of the of the Province
Auditing Manual TCTs referred in the 27 and secured
(GAAM), Volume I, Tax Declarations to machine copies of
thus exposing these establish the absolute seven TCTs, while
properties to third ownership of the City 26 TCTs are still

82
 party claims. Government over the to be forwarded by
said parcels of land. the Land
Registration
Authority (LRA)
to the Register of
Deeds of the City.

c. the City Assessor and The City Mayor Partially Lack of documents
other officials created a Implemented
concerned to facilitate committee that
the titling of the 41 will facilitate the
parcels of land in the titling of the 41
name of the City parcels of land and
Government of Trece allocated budget
to establish the City’s of P300,000.00 for
absolute ownership the titling of these
thereof. lands.

2. Cash advances to We recommended that the AAR

officers and employees City Mayor direct: 2016
amounting to Page 51
P1,905,448.52 a) all officers and The unliquidated Partially Cash advance of Mr.
remained unliquidated employees concerned cash advances Implemented Alberto S. Ararao
as of December 31, for the immediate/full amounting to dated May 3, 2017 was
2016, contrary to COA liquidation of all P1,905,448.52 not yet liquidated as of
Circular Nos. 97-002 outstanding cash were already December 31, 2017.
and 2009-002, thus advances and strictly settled during the
understating the observe pertinent year.
expense accounts and provisions of COA
overstating the Circular No. 97-002
Advances to Officers and COA Circular No.
and Employees 2009-002.
account by an amount

83
 corresponding to the b) the OIC-City Most of the cash Partially Cash advance of Mr.
actual expenses Accountant to ensure advances were Implemented Alberto S. Ararao
incurred. that all cash advances fully liquidated at dated May 3, 2017 was
are fully liquidated at the end of the only fully liquidated on
the end of the year. year. February 6, 2018.

3. Cash advances for We recommended that the AAR Cash advance Partially Although cash advance
confidential expenses City Mayor direct the OIC- 2016 vouchers for Implemented vouchers were
for the first and second City Accountant to strictly Page 52 confidential submitted to COA,
to third quarters of CY comply with the provisions expenses and their cash advance were still
2016 amounting to of Items 6.1.5 and 6.1.8.4 supporting granted despite non-
P900,000.00 and of COA, DBM, DILG, documents were liquidation of previous
P1,800,000.00, GCG and DND Joint submitted to the cash advances.
respectively, were Circular No. 2015-01 dated COA within the
granted despite non- January 8, 2015 on the grant prescribed period.
liquidation of the of subsequent cash
previous cash advance advances and submission of
and cash advance cash advance vouchers,
vouchers and their their covering transmittal
supporting documents letters and supporting
were not submitted by documents.
the OIC-City
Accountant to the
COA Audit Team
within the prescribed
period, contrary to
Items 6.1.5 and
6.1.8.4, respectively,
of Commission on
Audit (COA),
Department of Budget
and Management
(DBM), Department of

84
 the Interior and Local
Government (DILG),
Governance
Commission for
GOCC (GCG) and
Department of
National Defense
(DND) Joint Circular
No. 2015-01 dated
January 8, 2015.

4. The City officials and We recommended that the AAR Transfer of cash Partially Cash advances were
employees did not City Mayor direct the OIC- 2016 advance from one Implemented still granted to some
comply with the City Accountant and Page 54 accountable officials despite non-
existing rules and Disbursing Officer to officer to another liquidation of their
regulations on the adhere strictly to the was already previous cash
grant and liquidation provisions of COA Circular discontinued. advances. Likewise,
of cash advances, such Nos. 97-002 and 2012-004 most of the cash
as granting of in the granting, utilization advances were not
additional cash and liquidation of cash liquidated within the
advance when advances. prescribed period.
previous cash advance
is not yet settled; Reiterated in Audit
transfer of cash Observation No. 3, Part
advance from one II of this report
accountable officer to
another; cash advance
for salaries, wages,
allowances, honoraria
and other similar
payments is not equal
to the net amount of
the payroll; liquidation

85
 of cash advances
beyond due dates and
non-bonding of
accountable officer,
thereby, showing
ineffective control
over cash advances
and exposing the fund
to possible loss or
misuse.

5. Delinquent Real We recommended that the AAR Not Delinquent Real

Property Tax (RPT) City Mayor direct the In- 2016 Implemented Property Tax increase
accumulated and Charge of Office (ICO)- Page 56 from last year’s
increased by 114.58% City Treasurer to strictly P492,322,844.37 to
from P229,431,125.36 enforce the remedies for the this year’s
in Calendar Year (CY) collection of delinquent real P514,662,954.52.
2015 to property taxes by
P492,322,844.37 in administrative action Reiterated in Audit
CY 2016 which through levy on real Observation No. 4, Part
showed the inability of property and sale of real II of this report
the City to enforce the property by public auction
remedies provided or by judicial action as
under Section 256 of provided under Section
Republic Act No. 7160 2A.45 of the 2012 Revenue
and its 2012 Revenue Code of Trece Martires
Code, thus losing the City.
opportunity to
generate additional
revenue that could
have been utilized for
its priority programs
and projects to

86
 enhance the delivery
of basic services to its
constituents.

6. The unexpended We recommended that the AAR The unexpended Fully

balance of Local City Mayor direct the ICO- 2016 balances of Implemented
Disaster Risk City Treasurer and OIC- Page 59 LDRRMF for CY
Reduction and City Accountant to transfer 2016 and 2017
Management Fund immediately the were transferred to
(LDRRMF) amounting unexpended/unobligated the Trust Fund
to P12,131,987.14 for balances of the Quick account per check
Calendar Year (CY) Response Fund and the nos. 738402 and
2016 was not Mitigation Fund-MOOE to 77593 dated June
transferred to the the Trust Liability-DRRM 15, 2017 and
Special Trust Fund in of the Trust Fund books, in December 29,
the Trust Fund books, compliance with Section 21 2017, respectively.
contrary to Section 21 of RA No. 10121 and Item
of Republic Act (RA) 5.1.10 of COA Circular No.
No. 10121 and Item 2012-002 to ensure that the
5.1.10 of COA LDRRMF is utilized only
Circular No. 2012- for purposes for which it
002, thus the risk that was intended.
the fund will be used
for purposes other than
for disaster risk
reduction and
management activities.

87
7. Disbursement We recommended that the AAR Disbursement Fully
Vouchers/Payrolls and OIC-City Accountant 2016 Vouchers/Payrolls Implemented
supporting documents submit the disbursement Page 60 were already
covering vouchers/payrolls and its submitted to the
disbursements from supporting documents to the Commission on
January to November, Commission on Audit to Audit.
2016 in the General, avoid possible
Special Education and suspension/disallowance in
Trust Funds totalling audit. Henceforth, ensure
P30,342,653.90 were that all accounts are
not yet submitted to submitted within the first
the Commission on ten days of the ensuing
Audit, in violation of month as required under
Section 7.2 of the Section 7.2 of the
Rules and Regulations Commission on Audit
on the Settlement of RRSA.
Accounts (RRSA)
dated September 15,
2009, thereby
precluding the
Auditors from
conducting timely
audit thereof and from
promptly informing
the City of the
deficiencies, if any,
and validity and
propriety of payments
could not be
ascertained.

88
8. Documentary We recommended that the AAR Only the Partially Other documents were
requirements and other City Mayor direct the OIC- 2016 Environmental Implemented not yet submitted such
relevant supporting Accountant to submit all the Page 62 Compliance as authority from the
documents for the required documents Certificate of Sangguniang
rental of landfill enumerated above, to the Mayo Trece Panlungsod of the City
involving a total net Auditor for further review Management and Mayor to enter into
amount of and evaluation, otherwise, Trucking Services contract with Trece
P26,716,874.40 were the payments made to the was submitted. Martires Integrated
not submitted, contrary contractors may be Waste Management
to the provisions of suspended/disallowed in Corporation and Mayo
COA Circular No. audit. Trece Management and
2012-001, thus validity Trucking Services,
and propriety of the Contract of Agreement,
total payments made Official Receipt from
were not assured. Mayo Trece
Management and
Trucking Services,
Special Power of
Attorney in favour of
Mr. Gemirich Go to
collect payment in
behalf of Mayo Trece
Management and
Trucking Services, etc.

The Audit Team issued

NS Nos. 17-001(15)
and 17-002-002(16)
dated January 24, 2017
and August 18, 2017,
respectively.

89
9. Diligence of a good We recommended that the AAR The adverse claim Partially The Certificate
father of a family was City Mayor direct the OIC- 2016 annotated at the Implemented Authorizing
not exercise in the City Accountant to and Page 65 back of the Registration (CAR),
purchase and payment other officials concerned to Transfer issued by the Bureau of
of the parcel of land submit the aforesaid lacking Certificate of Title Internal Revenue
amounting to documents to the was already (BIR), official receipt
P22,799,475.00 for the Commission on Audit and cancelled through evidencing payment of
expansion of the city correct the deficiencies court order dated transfer tax and
cemetery due to the noted in audit to facilitate January 29, 2018. Extrajudicial or judicial
existence of an adverse the conduct of auditorial settlement executed by
claim, incomplete review, technical evaluation the heirs of
and/or deficient and determination of the Constantino P. Vivo
supporting documents, reasonableness of the and proof that it was
thus casting doubt as purchase price of the duly advertised in a
to the legality, subject property and to newspaper of general
regularity and/or avoid possible circulation were not yet
propriety of the suspension/disallowance in submitted.
transaction, to the audit.
disadvantage of the The Audit Team issued
City Government. NS No. 17-003-
101(16) dated August
18, 2017.

10. Out of the We recommended that the AAR

P126,841,801.01 City Mayor: 2016
appropriation of the Page 68
20% Development a) strictly implement the Not Only P36,133,714.99
Fund for CYs 2011 to provisions of Section Implemented or 22% of the
2016, only 5.0 of Department of P161,718,966.33
P46,451,333.42 or the Interior and Local appropriation of the
36.62% was utilized, Government (DILG) 20% Development
contrary to Section 5.0 and Department of Fund for CYs 2012 to
of Department of the Budget and 2017 was utilized for

90
Interior and Local Management (DBM) CY 2017.
Government (DILG) Joint Memorandum
and Department of Circular No. 2011-1 Reiterated in Audit
Budget and dated April 13, 2011 Observation No. 5, Part
Management (DBM) and ensure that the II of this report
Joint Memorandum implementation of the
Circular No. 2011-1, 20% Development
thus depriving the Fund is in accordance
intended beneficiaries with the timeline
of the maximum indicated in their
benefits that could be Annual Investment
derived therefrom. Plan (AIP) so that
maximum benefits are
availed of by the
intended beneficiaries;

b) require the City

Development Council
and City Planning and
Development
Coordinator to:

 properly plan the Not Delays in the

programs/projects of Implemented implementation of
the 20% programs/projects were
Development Fund so still noted in CY 2017.
as to avoid
realignments and
delays in the
implementation of
programs/projects;
and

91
  review the projects Not Most of the continuing
enumerated in the Implemented appropriation were not
continuing yet implemented.
appropriation and
determine whether
these are still feasible
and priority projects
of the City,
otherwise, re-
program the said
projects together with
the unexpended
balance of the
completed projects
with the concurrence
of the Sangguniang
Panlungsod, for other
development projects
that will address the
present needs of the
constituents.

11. The construction of We recommended that the AAR

two-storey male room City Mayor direct the City 2016
quarters building and Development Council and Page 71
repair of existing fire City Planning and
department building, Development Coordinator
construction/ to:
installation of
welcome arch (Phase a) submit explanation or The City Planning Fully
I), and purchase of justification, for further and Development Implemented
various equipment for evaluation of the Audit Coordinator
City Health Office Team, as to why those commented that

92
 totalling expenses were charged these projects are
P3,480,557.60 were against the 20% part of the social
charged to the 20% Development Fund, services of the
Development Fund, otherwise the subject City Government
contrary to transactions shall be and assured
Department of the suspended or compliance with
Interior and Local disallowed in audit in the regulation.
Government (DILG) accordance with the
and Department of provision of the Rules
Budget and and Regulations in
Management (DBM) Settlement of Accounts
Joint Memorandum (RRSA); and
Circular (JMC) No.
2011-1, thus depleting b) allocate 20% The Fully
the fund and defeating Development Fund programs/projects Implemented
the purpose for which only to programs, enumerated in
it was established. projects and activities their 20%
as enumerated in Development
Department of the Fund for CY 2017
Interior and Local were in
Government (DILG) accordance with
and Department of the DILG – DBM
Budget and JMC No. 2011-1.
Management (DBM)
Joint Memorandum
Circular (JMC) No.
2011-1 dated April 13,
2011.

12. Expenses for Gender We recommended that the AAR The Management Not No fund was allocated
And Development City Mayor direct the 2016 informed the Implemented in 2017 for the transfer
(GAD) sensitivity District Supervisor and Page 73 Audit Team that of P1,580,000.00 from
seminar-workshop and other persons liable to they will allocate General Fund to SEF.

93
 team building activity refund the total amount of budget in CY
amounting to P1,580,000.00 for the 2018 from the
P1,400,000.00 and expenses incurred during General Fund
P180,000.00, the GAD sensitivity amounting to
respectively, or a total seminar workshop and P1,580,000.00
of P1,580,000.00 Team Building activity. and transfer the
charged against the fund to the Special
Special Education Education Fund
Fund (SEF) were not (SEF).
among the expenses
enumerated under We also recommended that Utilization of Fully
Section 272 of the Local School Board see Special Education Implemented
Republic Act (RA) to it that Special Education Fund in CY 2017
No. 7160 and DepEd- Fund is utilized for was in accordance
DBM-DILG Joint purposes provided under with the
Circular No. 01, 01-A, Section 272 of Republic Act regulation.
thereby depleting the (RA) No. 7160 as
fund and defeating the implemented by DECS,
purpose for which it DBM and DILG Joint
was intended. Circular No. 01, 01-A dated
April 14, 1998 and March
14, 2000, respectively, to
ensure that the purpose for
which the fund was
intended is met. Otherwise,
charges of expenditures that
are not included under the
aforementioned provisions
will be disallowed in audit.

13. Two Thousand One We recommended that the AAR

Hundred Eighty Nine City Mayor direct: 2016
(2,189) books Page 77

94
 pertaining to Climate a) the concerned Inventory of the Fully
Change, Disaster Risk employee assigned in books were fully Implemented
Reduction retained and the issuance of the accounted for and
issued by the City books and the recipient were distributed to
Mayor’s Office to teachers of TMCNHS the intended
various public schools and TMCES to present beneficiaries.
totalling to the Audit Team the
P1,017,885.00 were books worth
unaccounted during P1,017,885.00, not
the ocular inspection seen and accounted
conducted by the during the ocular
Audit Team, hence inspections for
may result to a validation. Otherwise,
possible loss of Notice of Disallowance
government funds if shall be issued for
could not be found and books that could not be
presented for presented.
validation. Moreover,
the necessity of the b) the City Administrator Purchased books Fully
quantity purchased to ensure that were distributed to Implemented
could not be purchases of books are the end-users.
established as there based on the specific
were no valid and needs, priorities and/or
specific requests from valid requests from the
the end-users. end-users.

14. Procurement of seven We recommended that the AAR The Management Not Authority to purchase
motor vehicles with a City Mayor submit 2016 assured that in the Implemented from the Secretary of
total amount of authority to purchase from Page 79 future they will DILG was not yet
P8,062,200.00 were the Secretary of the Interior seek authority submitted.
undertaken without and Local Government from the DILG
prior approval from (SILG), in compliance with before buying
the Department of DILG Memorandum motor vehicles.

95
 Interior and Local Circular No. 2014-155
Government (DILG) dated December 17, 2014.
Secretary, contrary to
DILG Memorandum
Circular No. 2014-
155.

15. The unexpended We recommended that the AAR The unexpended Fully
balances from City Mayor direct the ICO- 2016 balances from Implemented
completed projects of City Treasurer and OIC- Page 81 completed projects
the funds from the City Accountant to remit was already
National Government the unexpended balance of remitted to the
Agencies (NGAs) the completed projects Bureau of
totaling P278,973.01 totaling P278,973.01 to the Treasury/Source
were not remitted to National Treasury/Source Agency under
the National Treasury Agency as required under check nos. 78028,
and Source Agency, COA Joint Circular No. 9- 276227 and 82730
contrary to COA- 81 dated October 28, 1981 dated September
DBM Joint Circular and Item 4.9 and 6.7 of 22, 2017, May 30,
No. 9-81 and COA COA Circular No. 94-013 2017 and
Circular No. 94-013, dated December 13, 1994 December 15,
thus depriving the so as the national 2017, respectively.
national government government could
of the opportunity for appropriate them to other
the immediate use of essential projects.
the funds for other
vital projects/programs
of the government. We also recommended that Not Still waiting for
Likewise, the amount once the fund for the Implemented additional funding.
of P2,600,000.00 for Construction of Agtas
the construction of Bridge at Aguado-Cabuco
Agtas Bridge at Road is obtained, expedite
Aguado-Cabuco Road the implementation of the

96
 remained unutilized, same.
thus resulting in the
delays in the
attainment of the
project’s objective.

16. The City’s revised 10- We recommended that the AAR The City Partially The City’s revised 10-
Year Solid Waste City Mayor direct the Solid 2016 submitted the Safe Implemented year Solid Waste
Management Plan Waste Management Board Page 83 Closure and Management Plan was
(SWMP) for the years to strictly implement the Rehabilitation not yet approved by the
2015-2024 was not yet activities stated in the Safe Plan (SCRP) for NSWMC due to non-
approved by the Closure and Rehabilitation the open dumpsite submission of the
National Solid Waste Plan within the timeframe. to the Office of copy of contract with
Management Likewise, follow up the the Ombudsman private hauler and/or
Commission status of the case with the and EMB sanitary landfill, safe
(NSWMC) as the City Office of the Ombudsman Regional Office closure and
Officials has a to facilitate the approval of on March 1, rehabilitation plan for
pending case with the the 10-Year Solid Waste 2017 to comply the open dumpsite duly
Office of the Management Plan. with the acknowledged by the
Ombudsman for requirements. Environmental
allowing the operation Likewise, the Management Bureau
of the open dumpsite, SCRP has already (EMB) Regional Office
thus delaying the been implemented and complete data on
implementation of an by the City. Chapters 11 and 12 on
efficient solid waste the Ten-Year SWMP
management to the NSWMC.
programs.
Reiterated in Audit
Observation No. 10,
Part II of this report

97
PART IV

ANNEXES
 Annex 1
AAR Page No. 4

City Government of Trece Martires

Province of Cavite
Statement of Financial Position, By Fund
As of December 31, 2017

Special
Total General Fund Education Fund Trust Fund

ASSETS
Current Assets
Cash and Cash Equivalents
Cash on Hand
Cash Local Treasury P 9,018,822.18 P 5,395,293.52 P 3,609,188.66 P 14,340.00
Cash in Bank - Local Currency
Cash in Bank - Local Currency, Current Account 534,662,906.21 390,040,125.50 51,264,306.81 93,358,473.90
Investments in Time Deposits (90 days)
Cash in Bank - Local Currency, Time Deposits 71,664,752.50 61,362,957.06 10,301,795.44 -
Total Cash and Cash Equivalents 615,346,480.89 456,798,376.08 65,175,290.91 93,372,813.90
Receivables
Loans and Receivable Accounts
Real Property Tax Receivable 332,033,431.53 332,033,431.53 - -
Special Education Tax Receivable 182,629,522.99 - 182,629,522.99 -
Intra-Agency Receivables
Due from Other Funds 10,020.00 10,020.00 - -
Advances
Advances to Officers and Employees 10,245.00 10,245.00 - -
Other Receivables
Due from Officers and Employees 34,291.73 34,081.51 210.22 -
Other Receivables 432,672.25 - - 432,672.25
Total Receivables 515,150,183.50 332,087,778.04 182,629,733.21 432,672.25
Inventories
Office Supplies Inventory 765,642.20 765,642.20 - -
Medical, Dental and Laboratory Supplies Inventory 606,703.00 606,703.00 - -
Other Supplies and Materials Inventory 88,623.00 88,623.00 - -
Total Inventories 1,460,968.20 1,460,968.20 - -

98
 Special
Total General Fund Education Fund Trust Fund
Prepayments and Deferred Charges
Prepayments
Advances to Contractors 5,500,111.42 5,163,421.69 - 336,689.73
Deferred Charges
Discount on Advance Payments 14,891,591.10 11,178,240.47 3,713,350.63 -
Total Prepayments and Deferred Charges 20,391,702.52 16,341,662.16 3,713,350.63 336,689.73
Total Current Assets 1,152,349,335.11 806,688,784.48 251,518,374.75 94,142,175.88
Non-Current Assets
Investment Property
Land and Buildings
Investment Property, Land 37,507,278.52 37,507,278.52 - -
Total Investment Property 37,507,278.52 37,507,278.52 - -
Property, Plant and Equipment
Land
Land 252,534,362.31 232,859,962.31 19,674,400.00 -
Land Improvements
Other Land Improvements 103,393,754.19 103,393,754.19 - -
Accumulated Depreciation - Other Land Improvements (43,127,318.93) (43,127,318.93) - -
Infrastructure Assets
Road Networks 7,792,581.71 7,792,581.71 - -
Water Supply Systems 3,577,848.09 3,577,848.09 - -
Power Supply Systems 14,990,017.00 14,990,017.00 - -
Other Infrastructure Assets 1,992,680.00 1,992,680.00 - -
Buildings and Other Structures
Buildings 133,169,023.26 133,169,023.26 - -
Accumulated Depreciation - Buildings (37,675,549.83) (37,675,549.83) - -
School Buildings 137,764,299.60 41,571,090.24 96,193,209.36 -
Accumulated Depreciation - School Buildings (48,735,697.74) (25,144,822.13) (23,590,875.61) -
Hospitals and Health Centers 19,056,392.94 19,056,392.94 - -
Accumulated Depreciation - Hospitals and Health Centers (14,017,055.79) (14,017,055.79) - -
Markets 12,261,198.10 12,261,198.10 - -
Accumulated Depreciation-Markets (3,433,235.32) (3,433,235.32) - -
Slaughterhouses 24,968,499.06 24,968,499.06 - -
Accumulated Depreciation - Slaughterhouses (14,505,918.88) (14,505,918.88) - -
Other Structures 179,347,809.89 164,566,561.12 14,781,248.77 -
Accumulated Depreciation - Other Structures (58,903,722.55) (53,693,614.89) (5,210,107.66) -

99
 Special
Total General Fund Education Fund Trust Fund
Machinery and Equipment
Office Equipment 43,582,968.57 33,326,936.57 10,256,032.00 -
Accumulated Depreciation - Office Equipment (19,794,071.89) (16,731,807.87) (3,062,264.02) -
Information and Communication Technology Equipment 70,840,707.58 70,840,707.58 - -
Accumulated Depreciation - Information and Communication
Technology Equipment (19,007,742.69) (19,007,742.69) - -
Communication Equipment 8,997,202.08 8,997,202.08 - -
Accumulated Depreciation - Communication Equipment (2,565,942.33) (2,565,942.33) - -
Construction and Heavy Equipment 41,026,538.23 41,026,538.23 - -
Accumulated Depreciation - Construction and Heavy
Equipment (7,908,536.12) (7,908,536.12) - -
Disaster Response and Rescue Equipment 1,354,370.00 1,354,370.00 - -
Accumulated Depreciation - Disaster Response and Rescue
Equipment (1,035,998.81) (1,035,998.81) - -
Medical Equipment 5,500,512.00 5,500,512.00 - -
Accumulated Depreciation - Medical Equipment (4,029,109.29) (4,029,109.29) - -
Technical and Scientific Equipment 2,828,500.00 2,828,500.00 - -
Accumulated Depreciation - Technical and Scientific Equipment (44,784.60) (44,784.60) - -
Other Machinery and Equipment 5,443,856.00 5,443,856.00 - -
Accumulated Depreciation - Other Machinery and Equipment (1,175,275.65) (1,175,275.65) - -
Transportation Equipment
Motor Vehicles 62,612,146.65 61,271,601.18 1,340,545.47 -
Accumulated Depreciation - Motor Vehicles (31,243,172.33) (29,969,654.13) (1,273,518.20) -
Furniture, Fixtures and Books
Furniture and Fixtures 19,003,618.37 15,302,063.02 3,701,555.35 -
Accumulated Depreciation - Furniture and Fixtures (11,249,651.08) (7,854,957.26) (3,394,693.82) -
Books 3,906,525.07 3,650,097.07 256,428.00 -
Accumulated Depreciation - Books (1,531,417.90) (1,287,811.30) (243,606.60) -
Construction in Progress
Construction in Progress - Infrastructures Assets 29,350,000.00 29,350,000.00 - -
Construction in Progress - Buildings and Other Structures 173,625,385.77 167,665,385.77 5,960,000.00 -
Other Property, Plant and Equipment
Other Property, Plant and Equipment 1,033,929.72 809,088.62 224,841.10 -
Accumulated Depreciation - Other Property, Plant and Equipment (352,684.29) (139,085.24) (213,599.05) -
Total Property, Plant and Equipment 1,039,617,840.17 924,218,245.08 115,399,595.09 -

100
 Special
Total General Fund Education Fund Trust Fund
Biological Assets
Bearer Biological Assets
Breeding Stocks 453,577.00 453,577.00 - -
Total Biological Assets 453,577.00 453,577.00 - -
Total Non-Current Assets 1,077,578,695.69 962,179,100.60 115,399,595.09 -
TOTAL ASSETS P 2,229,928,030.80 P 1,768,867,885.08 P 366,917,969.84 P 94,142,175.88
LIABILITIES
Current Liabilities
Financial Liabilities
Payables
Accounts Payable P 85,044,939.46 P 78,934,959.46 P 6,109,980.00 -
Due to Officers and Employees 27,063.88 27,063.88 - -
Bills/Bonds/Loans Payable
Loans Payable - Domestic 21,947,584.66 21,947,584.66 - -
Total Financial Liabilities 107,019,588.00 100,909,608.00 6,109,980.00 -
Inter-Agency Payables
Due to BIR -
Due to GSIS 7,465.92 7,465.92 - -
Due to NGAs 57,598,169.29 2,600,000.00 - P 54,998,169.29
Due to LGUs 1,089,724.96 1,089,724.96 - -
Total Inter-Agency Payables 58,695,360.17 3,697,190.88 - 54,998,169.29
Intra-Agency Payables
Due to Other Funds 10,020.00 - 6,400.00 3,620.00
Total Intra-Agency Payables 10,020.00 - 6,400.00 3,620.00
Trust Liabilities
Trust Liabilities - Disaster Risk Reduction and Management Fund 32,630,013.47 - - 32,630,013.47
Total Trust Liabilities 32,630,013.47 - - 32,630,013.47
Deferred Credits/Unearned Income
Deferred Real Property Tax 332,033,431.53 332,033,431.53 - -
Deferred Special Education Tax 182,629,522.99 - 182,629,522.99 -
Other Deferred Credits 57,856,859.61 39,287,869.48 18,568,990.13 -
Total Deferred Credits/Unearned Income 572,519,814.13 371,321,301.01 201,198,513.12 -
Other Payables
Other Payables 34,192,908.75 27,680,621.81 1,913.82 6,510,373.12
Total Current Liabilities 805,067,704.52 503,608,721.70 207,316,806.94 94,142,175.88

101
 Special
Total General Fund Education Fund Trust Fund
Non-Current Liabilities
Financial Liabilities
Bills/Bonds/Loans Payable
Loans Payable - Domestic 161,351,232.19 161,351,232.19 - -
Total Non-Current Liabilities 161,351,232.19 161,351,232.19 - -
TOTAL LIABILITIES 966,418,936.71 664,959,953.89 207,316,806.94 94,142,175.88
NET ASSETS/EQUITY
Government Equity 1,263,509,094.09 1,103,907,931.19 159,601,162.90 -

TOTAL LIABILITIES AND NET ASSETS/EQUITY P 2,229,928,030.80 P 1,768,867,885.08 P 366,917,969.84 P 94,142,175.88

102
 Annex 2
AAR Page No. 5

City Government of Trece Martires

Province of Cavite
Statement of Financial Performance, By Fund
For the Year Ended December 31, 2017

Special
Total General Fund Education Fund
Revenue
Tax Revenue
Individual and Corporation
Professional Tax P 222,892.30 P 222,892.30 -
Community Tax 1,971,989.25 1,971,989.25 -
Property
Real Property Tax - Basic 36,950,340.35 36,950,340.35
Less: Discount on Real Property Tax - Basic (2,794,365.15) (2,794,365.15)
Special Education Tax 42,555,859.67 - P 42,555,859.67
Less: Discount on Special Education Tax (4,871,137.21) - (4,871,137.21)
Special Levy on Idle Lands 5,333,000.90 5,333,000.90 -
Real Property Transfer Tax 13,003,599.17 13,003,599.17 -
Goods and Services
Business Tax 101,581,756.02 101,581,756.02 -
Tax on Delivery Trucks and Vans 84,975.00 84,975.00 -
Franchise Tax 7,871,073.52 7,871,073.52 -
Fines and Penalties
Tax Revenue-Fines and Penalties - Taxes on Individual and
Corporation 2,817,257.17 2,817,257.17 -
Tax Revenue-Fines and Penalties - Property Taxes 5,072,386.27 5,072,386.27 -
Tax Revenue-Fines and Penalties - Other Taxes 231,335.02 231,335.02 -
Total Tax Revenue 210,030,962.28 172,346,239.82 37,684,722.46

103
 Special
Total General Fund Education Fund
Share from National Taxes
Share from Internal Revenue Collections (IRA) 429,737,118.00 429,737,118.00 -
Total Share from National Taxes 429,737,118.00 429,737,118.00 -
Business and Service Income
Service Income
Permit Fees 14,411,515.60 14,411,515.60 -
Registration Fees 1,783,348.65 1,783,348.65 -
Registration Plates, Tags and Stickers Fees 996,978.00 996,978.00 -
Clearance and Certification Fees 2,672,265.60 2,672,265.60 -
Supervision and Regulation Enforcement Fees 1,746,110.00 1,746,110.00 -
Inspection Fees 1,777,485.96 1,777,485.96 -
Processing Fees 44,700.00 44,700.00 -
Occupation Fees 3,377,849.30 3,377,849.30 -
Fees for Sealing and Licensing of Weights and Measures 57,860.00 57,860.00 -
Other Service Income 8,586.72 8,586.72 -
Business Income
School Fees 9,826,845.50 9,826,845.50 -
Rent Income 6,186,203.17 6,186,203.17 -
Parking Fees 490,500.00 490,500.00 -
Receipts from Market Operation 5,375,520.76 5,375,520.76 -
Receipts from Slaughterhouse Operation 7,577,685.59 7,577,685.59 -
Receipts from Cemetery Operation 893,915.00 893,915.00 -
Receipts from Printing and Publication 72,745.45 72,745.45 -
Garbage Fees 2,185,650.00 2,185,650.00 -
Hospital Fees 5,847,781.46 5,847,781.46 -
Interest Income 1,373,772.04 1,246,730.88 127,041.16
Other Business Income 123,171.60 123,171.60 -
Total Business and Service Income 66,830,490.40 66,703,449.24 127,041.16
Total Revenue 706,598,570.68 668,786,807.06 37,811,763.62

104
 Special
Total General Fund Education Fund
Less: Current Operating Expenses
Personnel Services
Salaries and Wages
Salaries and Wages - Regular 89,920,325.52 89,920,325.52 -
Salaries and Wages - Casual/Contractual 8,660,536.66 6,061,318.84 2,599,217.82
Other Compensation
Personnel Economic Relief Allowance (PERA) 11,886,955.84 11,061,682.92 825,272.92
Representation Allowance (RA) 2,278,212.50 2,278,212.50 -
Transportation Allowance (TA) 2,073,787.50 2,073,787.50 -
Clothing/Uniform Allowance 2,495,000.00 2,345,000.00 150,000.00
Subsistence Allowance 1,045,909.63 1,045,909.63 -
Laundry Allowance 88,395.05 88,395.05 -
Honoraria 1,422,000.00 1,422,000.00 -
Overtime and Night Pay 1,991,538.61 1,991,538.61 -
Year End Bonus 16,049,261.68 15,611,261.68 438,000.00
Cash Gift 2,438,000.00 2,276,500.00 161,500.00
Personnel Benefits Contributions
Life and Retirement Insurance Contributions 11,671,422.00 11,355,342.00 316,080.00
PAG-IBIG Contributions 620,439.74 567,817.17 52,622.57
PHILHEALTH Contributions 1,005,199.84 960,791.81 44,408.03
Employees Compensation Insurance Premiums 649,960.27 623,620.27 26,340.00
Other Personnel Benefits
Terminal Leave Benefits 4,424,966.61 4,424,966.61 -
Other Personnel Benefits 11,714,913.16 11,552,413.16 162,500.00
Total Personnel Services 170,436,824.61 165,660,883.27 4,775,941.34
Maintenance and Other Operating Expenses
Travelling Expenses
Travelling Expenses - Local 2,204,064.16 2,204,064.16 -
Training and Scholarship Expenses
Training Expenses 4,489,334.34 4,450,334.34 39,000.00

105
 Special
Total General Fund Education Fund
Supplies and Material Expenses
Office Supplies Expense 3,850,906.00 3,700,926.00 149,980.00
Accountable Forms Expenses 456,330.00 456,330.00 -
Animal/Zoological Supplies Expenses 100,567.50 100,567.50 -
Food Supplies Expenses 8,532,274.25 8,532,274.25 -
Drugs and Medicines Expenses 2,720,919.50 2,720,919.50 -
Medical, Dental and Laboratory Supplies Expenses 202,071.00 202,071.00 -
Fuel, Oil and Lubrication Expenses 15,195,752.36 15,195,752.36 -
Agricultural and Marine Supplies Expenses 346,598.00 346,598.00 -
Textbooks and Instructional Materials Expenses 13,602,176.25 8,609,568.75 4,992,607.50
Other Supplies Expenses 14,603,214.37 14,600,744.37 2,470.00
Utility Expenses
Water Expenses 703,897.02 703,897.02 -
Electricity Expenses 10,966,816.91 10,966,816.91 -
Communication Expenses
Postage and Courier Service 71,500.00 71,500.00 -
Telephone Expenses 3,073,071.26 3,073,071.26 -
Internet Subscription Expenses 160,544.20 160,544.20 -
Awards/Rewards and Prizes
Awards and Rewards Expenses 1,971,000.00 1,971,000.00 -
Survey, Research, Exploration and Development Expenses
Survey Expenses 7,107.10 7,107.10 -
Confidential, Intelligence, Extraordinary and Miscellaneous
Confidential Expenses 4,374,000.00 4,374,000.00 -
Extraordinary Miscellaneous Expenses 705,000.00 705,000.00 -
Professional Services
Consultancy Services 5,062,000.00 5,062,000.00 -
Other Professional Services 20,173,966.84 19,865,966.84 308,000.00
General Services
Environment/Sanitary Services 34,590,426.57 34,590,426.57 -

106
 Special
Total General Fund Education Fund
Repairs and Maintenance
Repairs and Maintenance - Infrastructure Assets 1,110,762.33 1,110,762.33 -
Repairs and Maintenance - Building and Other Structures 3,924,800.73 3,766,382.05 158,418.68
Repairs and Maintenance - Machineries and Equipment 1,671,935.00 1,671,935.00 -
Repairs and Maintenance - Transportation Equipment 3,980,817.80 3,980,817.80 -
Repairs and Maintenance - Furniture and Fixtures 34,000.00 34,000.00 -
Repairs and Maintenance - Other Property, Plant and
Equipment 263,719.00 263,719.00 -
Taxes, Insurance Premiums and Other Fees
Fidelity Bond Premiums 46,691.25 46,691.25 -
Insurance Expenses 2,565,810.57 2,565,810.57 -
Other Maintenance and Operating Expenses
Advertising Expenses 589,425.00 589,425.00 -
Representation Expenses 1,350,000.00 1,350,000.00 -
Rent Expenses 10,325,000.00 10,325,000.00 -
Membership Dues and Contributions to Organizations 520,875.00 520,875.00 -
Donations 5,213,185.00 5,213,185.00 -
Other Maintenance and Operating Expenses 19,111,216.59 17,302,018.59 1,809,198.00
Total Maintenance and Other Operating Expenses 198,871,775.90 191,412,101.72 7,459,674.18
Financial Expenses
Financial Expenses
Interest Expenses 8,053,153.64 8,053,153.64 -
Bank Charges 321,550.00 321,550.00 -
Other Financial Charges 345,153.00 345,153.00 -
Total Financial Expenses 8,719,856.64 8,719,856.64 -
Non-Cash Expenses
Depreciation
Depreciation - Land Improvements 20,474,177.41 20,474,177.41 -
Depreciation - Buildings and Structures 35,338,611.64 32,490,474.88 2,848,136.76
Depreciation - Machinery Equipment 13,972,940.72 12,927,523.00 1,045,417.72

107
 Special
Total General Fund Education Fund
Depreciation - Transportation Equipment 7,141,630.01 7,141,630.01 -
Depreciation - Furniture, Fixtures and Books 2,933,778.63 1,669,269.63 1,264,509.00
Total Non-Cash Expenses 79,861,138.41 74,703,074.93 5,158,063.48
Total Current Operating Expenses 457,889,595.56 440,495,916.56 17,393,679.00

Surplus (Deficit) from Current Operation 248,708,975.12 228,290,890.50 20,418,084.62

Add (Deduct):
Transfers, Assistance and Subsidy to
Financial Assistance/Subsidy to
Subsidy to National Government Agencies (1,344,983.18) (1,344,983.18) -
Transfers to
Transfers of Unspent Current Year DRRM Funds to the
Trust Funds (11,871,892.57) (11,871,892.57) -
Total Transfers, Assistance and Subsidy to (13,216,875.75) (13,216,875.75) -
Other Non-Operating Income
Gains
Gain on Sale of Property, Plant and Equipment 27,050.00 27,050.00 -
Miscellaneous Income 157,538.12 157,538.12 -
Losses
Loss on Sale of Property, Plant and Equipment (1,314,685.36) (1,269,385.42) (45,299.94)
Total Other Non-Operating Income (1,130,097.24) (1,084,797.30) (45,299.94)
Surplus (Deficit) for the Period P 234,362,002.13 P 213,989,217.45 P 20,372,784.68

108
 Annex 3
AAR Page No. 6

City Government of Trece Martires

Province of Cavite
Statement of Changes in Net Asset/Equity, By Fund
For the Year Ended December 31, 2017

Special
Total General Fund Education Fund

Balance at January 1 P 1,012,180,150.27 P 872,952,300.00 P 139,227,850.27

Add (Deduct):
Prior Period Errors 16,402,969.69 16,402,441.74 527.95
Restated Balance 1,028,583,119.96 889,354,741.74 139,228,378.22
Add (Deduct) Changes in Net Assets/Equity during the year
Adjustment of Net Revenue Recognized directly in Net Assets/Equity 563,972.00 563,972.00 -
Surplus (Deficit) for the Period 234,362,002.13 213,989,217.45 20,372,784.68
Total Changes during the year 234,925,974.13 214,553,189.45 20,372,784.68
Balance as of December 31 P 1,263,509,094.09 P 1,103,907,931.19 P 159,601,162.90

109
 Annex 4
AAR Page No. 7

City Government of Trece Martires

Province of Cavite
Statement of Cash Flows, By Fund
For the Year Ended December 31, 2017

Special
Total General Fund Education Fund Trust Fund
Cash Flows from Operating Activities
Cash Inflows
Collection from Taxpayers P 208,202,528.30 P 169,176,470.03 P 39,026,058.27 P -
Share from Internal Revenue Allotment 429,737,118.00 429,737,118.00 - -
Receipts from Business/Service Income 38,692,212.00 38,692,212.00 - -
Interest Income 1,373,772.04 1,246,730.88 127,041.16 -
Other Receipts 68,758,788.48 1,414,754.01 527.95 67,343,506.52
Total Cash Inflows 746,764,418.82 640,267,284.92 39,153,627.38 67,343,506.52
Cash Outflows
Payment to Suppliers and Creditors 62,293,828.67 60,885,421.34 1,408,407.33 -
Payment to Employees 235,013,192.30 230,237,250.96 4,775,941.34 -
Interest Expense 8,053,153.64 8,053,153.64 - -
Other Payments 37,336,058.23 32,467,005.58 29,795.00 4,839,257.65
Total Cash Outflows 342,696,232.84 331,642,831.52 6,214,143.67 4,839,257.65
Net Cash from Operating Activities 404,068,185.98 308,624,453.40 32,939,483.71 62,504,248.87
Cash Flows from Investing Acitivities
Cash Inflows
Proceeds from Sale/Disposal of Property, Plant
and Equipment 108,167.50 105,497.50 2,670.00 -
Total Cash Inflows 108,167.50 105,497.50 2,670.00 -
Cash Outflows
Purchase/Construction of Property, Plant and Equipment 201,445,033.32 191,567,819.22 9,877,214.10
Total Cash Outflows 201,445,033.32 191,567,819.22 9,877,214.10 -
Net Cash from Investing Activities (201,336,865.82) (191,462,321.72) (9,874,544.10) -
Cash Flows from Financing Acitivities
Cash Inflows
Proceeds from Loans 70,353,188.86 70,353,188.86 - -
Total Cash Inflows 70,353,188.86 70,353,188.86 - -

110
 Cash Outflows
Payment of Loan Amortization 13,051,787.75 13,051,787.75 - -
Total Cash Outflows 13,051,787.75 13,051,787.75 - -
Net Cash from Financing Activities 57,301,401.11 57,301,401.11 - -
Total Cash Provided by Operating, Investing and Financing
Activities 260,032,721.27 174,463,532.79 23,064,939.61 62,504,248.87
Add: Cash at the Beginning of the Year 355,313,759.62 282,334,843.29 42,110,351.30 30,868,565.03
Cash at the End of the Year P 615,346,480.89 P 456,798,376.08 P 65,175,290.91 P 93,372,813.90

111
 Annex 5
AAR Page No. 8
City Government of Trece Martires
Statement of Comparison of Budget and Actual Amounts, By Fund
For the Year Ended December 31, 2017

Budgeted Amounts
Original Final Difference Original and Final Budget
Special Education Special Education Special Education
Particulars Total General Fund Fund Total General Fund Fund Total General Fund Fund
Revenue
A. Local Taxes
1. Tax Revenue
a. Tax Revenue-Property P 103,530,778.50 P 64,770,856.20 P 38,759,922.30 P 103,530,778.50 P 64,770,856.20 P 38,759,922.30 - - -
b. Tax Revenue-Goods and Services 95,088,000.00 95,088,000.00 - 95,088,000.00 95,088,000.00 - - - -
c. Other Local Taxes 8,780,000.00 8,780,000.00 - 8,780,000.00 8,780,000.00 - - - -
Total Tax Revenue 207,398,778.50 168,638,856.20 38,759,922.30 207,398,778.50 168,638,856.20 38,759,922.30 - -
2. Non-Tax Revenue
a. Service Income 27,867,000.00 27,867,000.00 - 27,867,000.00 27,867,000.00 - - - -
b. Business Income 28,236,724.00 28,236,724.00 - 28,236,724.00 28,236,724.00 - - - -
c. Other Income and Receipts 7,685,000.00 7,685,000.00 - 7,685,000.00 7,685,000.00 - - - -
Total Non-Tax Revenue 63,788,724.00 63,788,724.00 - 63,788,724.00 63,788,724.00 - - - -
B. External Sources
1. Share from the National Internal Revenue
Taxes (IRA) 429,737,118.00 429,737,118.00 - 429,737,118.00 429,737,118.00 - - - -
C. Receipts from Borrowings - - - - - - - - -
Total Revenues and Receipts 700,924,620.50 662,164,698.20 38,759,922.30 700,924,620.50 662,164,698.20 38,759,922.30 - - -

Expenditures
General Public Services
Personal Services 133,000,466.31 133,000,466.31 - 133,000,466.31 133,000,466.31 - - - -
Maintenance and Other Operating Expenses 194,441,888.39 194,441,888.39 - 194,441,888.39 194,441,888.39 - - - -
Capital Outlay 51,795,000.00 51,795,000.00 - 51,795,000.00 51,795,000.00 - - - -
Education
Personal Services 7,094,000.00 - 7,094,000.00 7,094,000.00 - 7,094,000.00 - - -
Maintenance and Other Operating Expenses 35,816,810.04 14,675,000.00 21,141,810.04 35,816,810.04 14,675,000.00 21,141,810.04 - - -
Social Services and Social Welfare
Personal Services 34,738,995.97 34,738,995.97 - 34,738,995.97 34,738,995.97 - - - -
Maintenance and Other Operating Expenses 15,363,390.14 15,363,390.14 - 15,363,390.14 15,363,390.14 - - - -
Capital Outlay 1,620,000.00 1,620,000.00 - 1,620,000.00 1,620,000.00 - - - -
Capital Outlay 22,200,000.00 2,200,000.00 20,000,000.00 22,200,000.00 2,200,000.00 20,000,000.00 - - -

112
 Budgeted Amounts
Original Final Difference Original and Final Budget
Special Education Special Education Special Education
Particulars Total General Fund Fund Total General Fund Fund Total General Fund Fund
Economic Services
Personal Services 34,676,317.55 34,676,317.55 - 34,676,317.55 34,676,317.55 - - - -
Maintenance and Other Operating Expenses 22,033,000.00 22,033,000.00 - 22,033,000.00 22,033,000.00 - - - -
Capital Outlay 17,940,000.00 17,940,000.00 - 17,940,000.00 17,940,000.00 - - - -
Special Purpose Appropriations
Debt Services
Financial Expenses 8,866,703.00 8,866,703.00 - 8,866,703.00 8,866,703.00 - - - -
20% Development Fund
Maintenance and Other Operating Expenses 20,000,000.00 20,000,000.00 - 20,000,000.00 20,000,000.00 - - - -
Capital Outlay 65,947,423.60 65,947,423.60 - 65,947,423.60 65,947,423.60 - - - -
City Disaster Risk Reduction and
Management Fund
Maintenance and Other Operating Expenses 16,208,234.91 16,208,234.91 - 16,208,234.91 16,208,234.91 - - - -
Capital Outlay 16,900,000.00 16,900,000.00 - 16,900,000.00 16,900,000.00 - - - -
Senior Citizens & Persons with Disabilities
Personnel Services 950,000.00 950,000.00 - 950,000.00 950,000.00 - - - -
Maintenance and Other Operating Expenses 9,270,000.00 9,270,000.00 - 9,270,000.00 9,270,000.00 - - - -
Capital Outlay 150,000.00 150,000.00 - 150,000.00 150,000.00 - - - -
Others
Personnel Services 1,388,278.33 1,388,278.33 - 1,388,278.33 1,388,278.33 - - - -
Total Current Legislative Appropriation 710,400,508.24 662,164,698.20 48,235,810.04 710,400,508.24 662,164,698.20 48,235,810.04 - - -
Continuing Appropriations
General Public Services
Capital Outlay 227,900,858.89 227,900,858.89 - 227,900,858.89 227,900,858.89 - - - -
Education
Capital Outlay 7,972,810.00 7,972,810.00 - 7,972,810.00 7,972,810.00 - - - -
Total Continuing Appropriation 235,873,668.89 235,873,668.89 - 235,873,668.89 235,873,668.89 - - - -
Total P 946,274,177.13 P 898,038,367.09 P 48,235,810.04 P 946,274,177.13 P 898,038,367.09 P 48,235,810.04 - - -
Surplus (Deficit) for the period
…

113
 Final Budgeted Amounts Actual Amounts Difference Final Budget and Actual
Special Education Special Education Special Education
Particulars Total General Fund Fund Total General Fund Fund Total General Fund Fund

Revenue
A. Local Taxes
1. Tax Revenue
a. Tax Revenue-Property P 103,530,778.50 P 64,770,856.20 P 38,759,922.30 P 90,177,297.73 P 52,492,575.27 P 37,684,722.46 P 13,353,480.77 P 12,278,280.93 P 1,075,199.84
b. Tax Revenue-Goods and Services 95,088,000.00 95,088,000.00 - 109,537,804.54 109,537,804.54 - (14,449,804.54) (14,449,804.54) -
c. Other Local Taxes 8,780,000.00 8,780,000.00 - 10,315,860.01 10,315,860.01 - (1,535,860.01) (1,535,860.01) -
Total Tax Revenue 207,398,778.50 168,638,856.20 38,759,922.30 210,030,962.28 172,346,239.82 37,684,722.46 (2,632,183.78) (3,707,383.62) 1,075,199.84
2. Non-Tax Revenue
a. Service Income 27,867,000.00 27,867,000.00 - 26,876,699.83 26,876,699.83 - 990,300.17 990,300.17 -
b. Business Income 28,236,724.00 28,236,724.00 - 30,423,415.47 30,296,374.31 127,041.16 (2,186,691.47) (2,059,650.31) (127,041.16)
c. Other Income and Receipts 7,685,000.00 7,685,000.00 - 9,687,913.22 9,687,913.22 - (2,002,913.22) (2,002,913.22) -
Total Non-Tax Revenue 63,788,724.00 63,788,724.00 - 66,988,028.52 66,860,987.36 127,041.16 (3,199,304.52) (3,072,263.36) (127,041.16)
B. External Sources
1. Share from the National Internal Revenue
Taxes (IRA) 429,737,118.00 429,737,118.00 - 429,737,118.00 429,737,118.00 - - - -
C. Receipts from Borrowings - - - 71,019,891.86 71,019,891.86 - (71,019,891.86) (71,019,891.86) -
Total Revenues and Receipts P 700,924,620.50 P 662,164,698.20 P 38,759,922.30 P 777,776,000.66 P 739,964,237.04 P 37,811,763.62 P (76,851,380.16) P (77,799,538.84) P 948,158.68

Expenditures
General Public Services
Personal Services P 133,000,466.31 P 133,000,466.31 - P 109,859,664.12 P 109,859,664.12 - P 23,140,802.19 P 23,140,802.19 -
Maintenance and Other Operating Expenses 194,441,888.39 194,441,888.39 - 146,039,733.08 146,039,733.08 - 48,402,155.31 48,402,155.31 -
Capital Outlay 51,795,000.00 51,795,000.00 - 31,428,742.53 31,428,742.53 - 20,366,257.47 20,366,257.47 -
Education
Personal Services 7,094,000.00 - P 7,094,000.00 4,775,941.34 P 4,775,941.34 2,318,058.66 - P 2,318,058.66
Maintenance and Other Operating Expenses 35,816,810.04 14,675,000.00 21,141,810.04 18,989,406.54 11,529,732.36 7,459,674.18 16,827,403.50 3,145,267.64 13,682,135.86
Capital Outlay 22,200,000.00 2,200,000.00 20,000,000.00 9,578,270.00 1,700,000.00 7,878,270.00 12,621,730.00 500,000.00 12,121,730.00
Social Services and Social Welfare
Personal Services 34,738,995.97 34,738,995.97 - 26,604,283.94 26,604,283.94 - 8,134,712.03 8,134,712.03 -
Maintenance and Other Operating Expenses 15,363,390.14 15,363,390.14 - 9,843,649.85 9,843,649.85 - 5,519,740.29 5,519,740.29 -
Capital Outlay 1,620,000.00 1,620,000.00 - 1,210,687.50 1,210,687.50 - 409,312.50 409,312.50 -
Economic Services
Personal Services 34,676,317.55 34,676,317.55 - 28,193,607.00 28,193,607.00 - 6,482,710.55 6,482,710.55 -
Maintenance and Other Operating Expenses 22,033,000.00 22,033,000.00 - 14,661,324.32 14,661,324.32 - 7,371,675.68 7,371,675.68 -
Capital Outlay 17,940,000.00 17,940,000.00 - 16,046,000.00 16,046,000.00 - 1,894,000.00 1,894,000.00 -

114
 Final Budgeted Amounts Actual Amounts Difference Final Budget and Actual
Special Education Special Education Special Education
Particulars Total General Fund Fund Total General Fund Fund Total General Fund Fund
Special Purpose Appropriations
Debt Services
Financial Expenses 8,866,703.00 8,866,703.00 - 8,719,856.64 8,719,856.64 - 146,846.36 146,846.36 -
20% Development Fund
Maintenance and Other Operating Expenses 20,000,000.00 20,000,000.00 - 13,051,787.75 13,051,787.75 - 6,948,212.25 6,948,212.25 -
Capital Outlay 65,947,423.60 65,947,423.60 - 34,600,000.00 34,600,000.00 - 31,347,423.60 31,347,423.60 -
City Disaster Risk Reduction and
Management Fund
Maintenance and Other Operating Expenses 16,208,234.91 16,208,234.91 - 16,208,234.91 16,208,234.91 - - - -
Capital Outlay 16,900,000.00 16,900,000.00 - 7,230,000.00 7,230,000.00 - 9,670,000.00 9,670,000.00 -
Senior Citizens & Persons with Disabilities
Personnel Services 950,000.00 950,000.00 - 819,000.00 819,000.00 - 131,000.00 131,000.00 -
Maintenance and Other Operating Expenses 9,270,000.00 9,270,000.00 - 6,622,768.07 6,622,768.07 - 2,647,231.93 2,647,231.93 -
Capital Outlay 150,000.00 150,000.00 - 115,000.00 115,000.00 - 35,000.00 35,000.00 -
Others
Personnel Services 1,388,278.33 1,388,278.33 - 184,328.21 184,328.21 - 1,203,950.12 1,203,950.12 -
Total Current Legislative Appropriations 710,400,508.24 662,164,698.20 48,235,810.04 504,782,285.80 484,668,400.28 20,113,885.52 205,618,222.44 177,496,297.92 28,121,924.52
Continuing Appropriations
General Public Services
Capital Outlay 227,900,858.89 227,900,858.89 - 98,772,131.00 98,772,131.00 - 129,128,727.89 129,128,727.89 -
Education
Capital Outlay 7,972,810.00 7,972,810.00 - 3,500,000.00 3,500,000.00 - 4,472,810.00 4,472,810.00 -
Total Continuing Appropriations 235,873,668.89 235,873,668.89 - 102,272,131.00 102,272,131.00 - 133,601,537.89 133,601,537.89 -
Total P 946,274,177.13 P 898,038,367.09 P 48,235,810.04 P 607,054,416.80 P 586,940,531.28 P 20,113,885.52 P 339,219,760.33 P 311,097,835.81 P 28,121,924.52
Surplus (Deficit) for the period P (245,349,556.63) (235,873,668.89) P (9,475,887.74) P 170,721,583.86 P 153,023,705.76 P 17,697,878.10 P (416,071,140.49) P (388,897,374.65) P (27,173,765.84)

Recapitulations
Personal Services 211,848,058.16 204,754,058.16 7,094,000.00 170,436,824.61 165,660,883.27 4,775,941.34 41,411,233.55 39,093,174.89 2,318,058.66
Maintenance and Other Operating Expenses 313,133,323.48 291,991,513.44 21,141,810.04 225,416,904.52 217,957,230.34 7,459,674.18 87,716,418.96 74,034,283.10 13,682,135.86
Capital Outlay 412,426,092.49 392,426,092.49 20,000,000.00 202,480,831.03 194,602,561.03 7,878,270.00 209,945,261.46 197,823,531.46 12,121,730.00
Financial Expenses 8,866,703.00 8,866,703.00 - 8,719,856.64 8,719,856.64 - 146,846.36 146,846.36 -
Total 946,274,177.13 898,038,367.09 48,235,810.04 607,054,416.80 586,940,531.28 20,113,885.52 339,219,760.33 311,097,835.81 28,121,924.52

115
 Annex 6
AAR Page No. 50
City Government of Trece Martires
Schedule of Construction in Progress
As of December 31, 2017

Unbilled
Projects Not Completed Balance of
Construction in Progress Ongoing Projects Total
Yet Started Projects Unfinished
Project
Infrastructure Assets
General Fund
Saluysoy-Pulido-West Plain road P 4,500,000.00 - - - P 4,500,000.00
Construction of open canal at TMCNHS 1,000,000.00 - - 1,000,000.00
Concreting of bayog road at Brgy. Lapidario 800,000.00 - - - 800,000.00
Concreting of road atdumpsite in Brgy. De Ocampo 2,500,000.00 - - - 2,500,000.00
Construction of road at Purok 1 and 2 at Brgy.
Cabezas 1,000,000.00 - - - 1,000,000.00
Construction of road at Purok 1 and 2 at Brgy. San
Agustin 1,000,000.00 - - - 1,000,000.00
Construction of Dasmariñas road at Brgy. Osorio 1,500,000.00 - - - 1,500,000.00
Concreting of road at Brgy. Lapidario 1,000,000.00 - - - 1,000,000.00
Concreting of road at Brgy. Gregorio 1,000,000.00 - - - 1,000,000.00
Concreting of road at Purok 6, Brgy. Lallana 1,000,000.00 - - - 1,000,000.00
Concreting of farm-to-market road Roguel St. Brgy.
Luciano 1,000,000.00 - - - 1,000,000.00
Construction of road at Purok 4 and 5 at Brgy.
Hugo Perez 1,500,000.00 - - - 1,500,000.00
Construction of feeder road at Brgy. Aguado 1,000,000.00 - - - 1,000,000.00
Concreting of Naic St. at Brgy. Osorio 1,600,000.00 - - - 1,600,000.00
Opening of new road, TESDA to Talisay/City Park
Phase IV 4,200,000.00 - - - 4,200,000.00
Concreting of Inocencio-Fiscal Mundo road - P 1,750,000.00 - - 1,750,000.00
Construction of New Road at Saluysoy-Pulido - 3,000,000.00 - - 3,000,000.00
Sub-total 24,600,000.00 4,750,000.00 - - 29,350,000.00

116
 Unbilled
Projects Not Completed Balance of
Construction in Progress Ongoing Projects Total
Yet Started Projects Unfinished
Project
Buildings and Other Structures
General Fund
Construction of Bahay Pag-Asa - - P 2,886,953.18 - 2,886,953.18
Construction of Police Outpost 500,000.00 - - - 500,000.00
Construction of Public Cemetery - - - P 161,479,524.50 161,479,524.50
Improvement of Welcome Arc at Brgy. Hugo Perez - 1,498,908.09 - - 1,498,908.09
Construction of Welcome Arc at Brgy. Inocencio 300,000.00 - - - 300,000.00
Slope protection for the disaster prone area 1,000,000.00 - - - 1,000,000.00

Special Education Fund

Construction of Administrative Building at TMCES 5,960,000.00 - - - 5,960,000.00
Sub-total 7,760,000.00 1,498,908.09 2,886,953.18 161,479,524.50 173,625,385.77
Total P 32,360,000.00 P 6,248,908.09 P 2,886,953.18 P 161,479,524.50 P 202,975,385.77

117
 Annex 7
AAR Page No. 52
City Government of Trece Martires
Schedule of Accounts Payable Without Sufficient Documents
As of December 31, 2017

Obligation
Fund Particulars Payee CY 2017 CY 2016 CY 2015 Total
Request No.
20% Development Fund
101-17-06-1183 Construction of City Government Center for children in conflict with law Ivy Construction P 2,886,953.18 P 2,886,953.18
101-17-11-2788 Improvement/concreting of road Dumpsite at Brgy. De Ocampo Ivy Construction 2,500,000.00 2,500,000.00
101-17-11-2837 Construction/Improvement of Feeder road at Brgy. Aguado Dalebo Construction 1,000,000.00 1,000,000.00
101-17-11-2789 Construction/Improvement of Purok 1 and 2 at Brgy. Cabezas Ivy Construction 1,000,000.00 1,000,000.00
101-17-11-2790 Construction/Improvement of road at Brgy. San Agustin Dalebo Construction 1,000,000.00 1,000,000.00
101-17-11-2793 Construction/Improvement of Dasmariñas road at Brgy. Osorio Dalebo Construction 1,500,000.00 1,500,000.00
101-17-11-2798 Construction/Improvement of Purok 4 and 5 at Brgy. Hugo Perez Ivy Construction 1,500,000.00 1,500,000.00
101-17-11-2794 Construction/Improvement of road at Brgy. Lapidario Ivy Construction 1,000,000.00 1,000,000.00
101-17-11-2795 Construction/Improvement of road at Brgy. Gregorio Ivy Construction 1,000,000.00 1,000,000.00
101-17-11-2796 Construction/Improvement of road at Brgy. Lallana Ivy Construction 1,000,000.00 1,000,000.00
101-17-11-2797 Construction/Improvement of road at Roguel St. Brgy. Luciano Ivy Construction 1,000,000.00 1,000,000.00
101-17-07-1615 Construction/Concreting of Bayog road at Brgy. Lapidario Ivy Construction 800,000.00 800,000.00
101-17-07-1614 Construction/Rehabilitation of open canal at TMNCHS Dalebo Construction 1,000,000.00 1,000,000.00
101-17-07-1611 Construction/Opening of new road at Saluysoy-Pulido to West Plain Road at Brgy. San Agustin C.S. Ramos Construction 4,500,000.00 4,500,000.00
101-17-04-06 (C) Opening/Construction of new road at TEZDA to Talisayan Road, City Park Phase 4 N and J Construction 4,200,000.00 4,200,000.00
101-17-04-05 (C) Improvement/Concreting of Naic St. at Brgy. Osorio Dalebo Construction 1,600,000.00 1,600,000.00
101-16-10-2525 National Greening Program P 14,810.00 14,810.00
101-16-09-2397 Construction of Police Outpost Dalebo Construction 500,000.00 500,000.00
Sub-total 27,486,953.18 514,810.00 - 28,001,763.18

General Fund Proper

101-16-08-1865 Delivery of 5 units motorcycle New Line Trading 299,500.00 299,500.00
101-16-12-3553 Rent expenses Mayo Trece Integrated Waste Management 1,600,000.00 1,600,000.00
101-15-12-3736 Various obligation D. Bragais/ECPAC/PLDT etc. 235,108.04 235,108.04
401-09 Repairs and maintenance of infrastructure assets Ava Jaeden Trading and Construction 343,000.00 280,000.00 623,000.00
401-10 CIP - buildings and other structures Ivy Construction/Dalebo Construction 1,300,000.00 1,300,000.00
401-11 Training and travelling expenses, Membership dues PAGSO, World Trip Business Center 29,540.00 24,000.00 53,540.00
401-12 Drugs and medicine expense New Line Trading . 49,146.00 49,146.00
401-13 Repairs and maintenance of machinery and equipment Southwind, Ref and Aircon, Multibiz/ECPAC - 144,200.00 144,200.00
401-14 Repairs and maintenance of building and other structure Dalebo Construction 812,500.00 812,500.00
401-15 Advertising Southern Sparkle News and Publishing 78,000.00 78,000.00
401-16 Subsidy to other NGAs J. Manguiat, Y. Penales, F. Apay, C. Dario - 17,350.00 17,350.00
401-17 Office equipment New Line Trading/GMCP Trading 3,607,768.00 3,607,768.00
401-18 Furniture and fixtures New Line Trading/JCAM House of Curtains 1,003,473.60 38,000.00 1,041,473.60
401-19 Motor vehicles Toyota Pasong Tamo 3,800,000.00 3,800,000.00
Sub-total 10,974,281.60 2,452,196.00 235,108.04 13,661,585.64

City Market
101-17-12-3165 Repairs and Maintenance - Government Vehicles GMCP Trading 10,245.00 10,245.00
101-17-12-3195 Repairs and Maintenance - Old Public Market IVY Construction 390,000.00 390,000.00
Sub-total 400,245.00 - - 400,245.00

City Slaughter
101-17-10-2521 Firewood N and J Construction 104,670.00 104,670.00
Sub-total 104,670.00 - - 104,670.00

Special Education Fund

221-17-08-17 Construction of administration building Ava Jaeden trading and construction 5,960,000.00 5,960,000.00
221-17-12-55 Office supplies New Line Trading 149,980.00 149,980.00
Sub-total 6,109,980.00 - - 6,109,980.00

Total P 45,076,129.78 P 2,967,006.00 P 235,108.04 P 48,278,243.82

118
 Annex 8
AAR Page No. 53

City Government of Trece Martires

Schedule of Officials who were granted Additional Cash Advances despite Non-Settlement of Previous Cash Advances
For Calendar Year 2017

GRANT LIQUIDATION

Date Amount Date

Granted Amount Purpose Liquidated Liquidated

Melandres De Sagun-City Mayor

4/4/2017 P 2,187,000.00 Confidential Expenses P 2,187,000.00 08/31/2017
11/8/2017 7,600.00 Pleb Summit, 8/2-3/2017 and 8/24-25/2017 7,600.00 08/31/2017
08/30/2017 1,093,500.00 Confidential Expenses 1,093,500.00 12/29/2017
12/15/2017 1,093,500.00 Confidential Expenses 1,093,500.00 12/29/2017

Alberto Ararao - City Planning and Development Officer

3/5/2017 40,000.00 28th Annual National Convention, 5/22-26/2017 29,755.00 12/29/2017
10/23/2017 2,800,000.00 TMC Pasaya 2017 2,800,000.00 12/19/2017

Marianne V. Colorado - City Budget Officer

11/17/2017 1,200,000.00 Workshop of City Government 1,200,000.00 12/29/2017
12/22/2017 525,000.00 Palarong Panlungsod 2017 525,000.00 12/29/2017

Diomedes C. Bragais - City Accountant

6/12/2017 300,000.00 31st Anniversary of Social Club 300,000.00 12/29/2017
12/22/2017 250,000.00 Capability Development Training 250,000.00 12/29/2017

Ma. Lilibeth Baral - ICO - City Treasurer

01/31/2017 25,600.00 2017 Planning and Target Setting Conference, 02/7-9/2017 22,764.00 7/3/2017
2,836.00 7/3/2017
2/2/2017 36,600.00 PHALTRA National Convention 35,128.00 7/3/2017
1,472.00 7/3/2017
08/15/2017 1,100,000.00 2017 Team Building Activity 1,100,000.00 12/19/2017
08/22/2017 18,800.00 2017 Mid-Year Assessment 18,800.00 09/22/2017
11/10/2017 91,160.00 Annual Investment Program Formation 10/11-13/2017 91,160.00 10/20/2017
3/11/2017 22,400.00 Training on Basic Operation on Local Treasury 22,400.00 7/12/2017
12/15/2017 2,200,000.00 Year-End Assessment and Evaluation 2,200,000.00 12/29/2017

119
 Annex 9
AAR Page No. 54

City Government of Trece Martires

Schedule of Cash Advances with Delayed Liquidation
For Calendar Year 2017

GRANT LIQUIDATION
Due Date
Amount Date per COA
Date Granted Payee/AO Amount Purpose Liquidated Liquidated Circular Time Gap
Cash Advance for Travelling (5.1.3 of COA Circular 97-002)
04/06/2017 Ronnel I. Blanco P 49,790.00 3rd Local Legislation Enhancement Seminar, P 49,790.00 05/31/2017 05/27/2017 4
April 25-27,2017
08/02/2017 Carlito Aure 38,000.00 Seminar on People's Law Enforcement 38,000.00 12/15/2017 09/24/2017 82
Board, August 23-25, 2017
01/30/2017 Alberto S. Ararao 41,100.00 13th CBMS Network Phil. National 41,100.00 04/26/2017 04/02/2017 24
Conference, March 1-3, 2017
05/03/2017 Alberto S. Ararao 40,000.00 28th Annual Convention of League of Local 29,755.00 12/29/2017 06/25/2017 187
Planning and Development Coordinators of
the Phils. Inc., May 22-26, 2017
07/03/2017 Rona A. Bago 171,264.00 1st Legislator's Summit, July 10-12, 2017 170,664.00 09/05/2017 08/11/2017 25
600.00 09/07/2017 08/11/2017 27
03/15/2017 Cornelio L. de Sagun 20,700.00 2017 Provincial Congress, March 21-23, 20,700.00 10/20/2017 04/30/2017 173
2017
04/26/2017 Rebecca R. Noceda 21,200.00 24th Annual Conference, May 9-11, 2017 21,200.00 06/22/2017 06/10/2017 12
11/13/2017 Ma. Cecilia C. Tejedor 2,500.00 14th Basic Course and 5th Provincial Post 2,500.00 12/29/2017 12/17/2017 12
Graduate Course in Pediatric Cardiology,
Nov. 16-17, 2017
04/04/2017 Alexander C. Lubigan 52,990.00 3rd Local Legislation Enhancement Seminar, 52,990.00 05/31/2017 05/27/2017 4
April 25-27,2017
07/28/2017 Ana Katrina Limbo 15,300.00 Basic Intravenous Therapy Training, 15,300.00 12/29/2017 08/27/2017 124
July 26-28, 2017

Total 452,844.00 442,599.00

Cash Advance for Special Purpose and Time Bound Activity (COA Circular No. 2012-004)
04/06/2016 Raymund Eguillos 675,000.00 Palarong Panlungsod 2016, April 26 to 675,000.00 04/30/2017 06/11/2016 323
May 22, 2017
10/23/2017 Alberto S. Ararao 2,800,000.00 TMC Pasaya 2017, October 28, 2017 2,800,000.00 12/19/2017 11/17/2017 32
08/15/2017 Ma. Lilibeth F. Baral 1,100,000.00 Team Building, August 25-26, 2017 1,100,000.00 12/19/2017 09/15/2017 95

Total 4,575,000.00 4,575,000.00

Grand Total P 5,027,844.00 P 5,017,599.00

120
 Annex 10
AAR Page No. 57
City Government of Trece Martires
Schedule of Delinquent Real Property Taxes
As of December 31, 2017

Tax Due
Period Special Education
Location Delinquent General Fund Fund Total
Barangays
1 Aguado 1980-2017 P 3,144,687.96 P 2,034,533.10 P 5,179,221.06
2 Cabezas
Proper 1997-2017 514,397.03 359,337.90 873,734.93
La Paz Subd. 1996-2017 1,072,447.61 731,808.42 1,804,256.03
Sherwood Hills Subd. 2001-2017 1,596,162.52 1,074,029.88 2,670,192.40
Sherwood/La Paz
Holdings/Fil-Estate 1998-2017 96,429,100.01 41,834,080.26 138,263,180.27
99,612,107.17 43,999,256.46 143,611,363.63
3 Cabuco
Proper 1980-2017 97,126,257.50 55,227,892.94 152,354,150.44
Asian/Don Bosco 1999-2017 351,932.99 236,545.65 588,478.64
La Trinidad Subd. 1996-2017 972,012.32 666,601.46 1,638,613.78
Solar/WGH I 2007-2017 78,224.25 52,575.17 130,799.42
Solar/WGH II 2011-2017 110,570.31 73,713.54 184,283.85
98,638,997.37 56,257,328.76 154,896,326.13
4 Conchu
Proper 1985-2017 7,418,876.24 4,406,117.65 11,824,993.89
Adelina Subd. 1997-2017 1,601,453.94 1,110,068.03 2,711,521.97
Satellite Subd. 2010-2017 25,251.10 16,744.14 41,995.24
9,045,581.28 5,532,929.82 14,578,511.10
5 De Ocampo
Proper 1991-2017 15,281,666.06 6,762,446.60 22,044,112.66
Cityland 1987-2017 2,207,622.60 1,538,471.14 3,746,093.74
Moldex 2011-2017 7,739.37 5,159.58 12,898.95
Metro Index 1998-2017 103,804.90 72,106.61 175,911.51
Regina Classic 1998-2017 91,556.28 62,409.09 153,965.37
Regina Executive 1996-2017 522,248.11 361,683.12 883,931.23
18,214,637.32 8,802,276.14 27,016,913.46

6 Gregorio
Proper 1980-2017 638,350.86 431,101.52 1,069,452.38
Heritage 1996-2017 2,480,251.83 1,043,464.61 3,523,716.44
3,118,602.69 1,474,566.13 4,593,168.82
7 Hugo Perez
Proper 1994-2017 16,404,206.85 8,584,233.98 24,988,440.83
1998-2017 298,952.11 199,301.63 498,253.74
16,703,158.96 8,783,535.61 25,486,694.57
8 Inocencio
Proper 1983-2017 5,618,713.92 2,749,351.52 8,368,065.44
Sampaguita-Asiatic 2006-2017 183,380.09 122,253.40 305,633.49
Sampaguita-Ayala 2006-2017 129,692.37 86,461.59 216,153.96

121
 Tax Due
Period Special Education
Location Delinquent General Fund Fund Total
Reginaville-PH I 1998-2017 227,302.81 154,422.88 381,725.69
Reginaville-PH II 2003-2017 135,812.19 90,541.35 226,353.54
St. Joseph 2004-2017 332,767.13 221,844.48 554,611.61
Tradition-PH I 1995-2017 103,426.81 70,873.64 174,300.45
Tradition-PH II 1998-2017 99,572.51 69,327.38 168,899.89
6,830,667.83 3,565,076.24 10,395,744.07
9 Lallana
Proper 1994-2017 542,917.95 373,032.73 915,950.68
Sherwood Hills 1998-2017 22,862,819.07 15,431,071.10 38,293,890.17
23,405,737.02 15,804,103.83 39,209,840.85
10 Lapidario
Proper 1980-2017 3,851,649.45 2,642,051.56 6,493,701.01
Capitol Hills Subd. 1994-2017 21,822,152.99 14,686,951.22 36,509,104.21
25,673,802.44 17,329,002.78 43,002,805.22
11 Luciano 1980-2017 1,289,838.78 1,038,831.81 2,328,670.59
12 Osorio
Proper 1980-2017 3,358,081.06 2,804,520.98 6,162,602.04
Summerfield 1999-2017 325,248.22 239,322.54 564,570.76
3,683,329.28 3,043,843.52 6,727,172.80
13 San Agustin
Proper 1980-2017 21,518,539.83 14,187,805.22 35,706,345.05
Transville 1994-2017 164,602.99 112,959.44 277,562.43
West Plain 1999-2017 866,729.29 581,866.89 1,448,596.18
Grand Krausville 2009-2017 34,380.28 22,920.08 57,300.36
Goldcrest 2009-2017 49,366.29 32,910.66 82,276.95
Quintana 2011-2017 38,664.75 25,776.50 64,441.25
22,672,283.43 14,964,238.79 37,636,522.22
Total P 332,033,431.53 P 182,629,522.99 P 514,662,954.52

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 Annex 11
AAR Page No. 58
City Government of Trece Martires
Utilization of 20% Development Fund
As of December 31, 2017

Program/Project/
Activity
Description Appropriation Obligation Balance
Current
Current
Appropriation
Appropriation
Social Development
1. Construction of City Government Center-Bahay Pag-Asa
Phase 3 at Brgy. Gregorio P 6,000,000.00 P 5,994,355.72 P 5,644.28
2. Construction of Multi-purpose hall @ Brgy. Osorio 7,000,000.00 - 7,000,000.00
3. Construction/Improvement of City Hall Building
a. Installation of Lift/Escalator for PWD at City Hall 1,000,000.00 - 1,000,000.00
Sub-total 14,000,000.00 5,994,355.72 8,005,644.28
Economic Development
Construction/Opening of New Road/Circumferential Road
4. Saluysoy-Pulido-West Plain Road 4,500,000.00 4,498,008.44 1,991.56
5. Tres Cruses-Governador Drive 1,000,000.00 - 1,000,000.00
6. Creencia Road to San Agustin-Luciano Bypass Road 2,000,000.00 - 2,000,000.00
7. P-12 to Thirteen Martyrs Ave. 800,000.00 - 800,000.00
8. Construction of New Road @ various barangays
a. Improvement/Concreting of Road Dumpsite at Brgy.
De Ocampo 2,500,000.00 - 2,500,000.00
b. Construction/Rehabilitation/Improvement of Feeder
Road at Brgy. Aguado 1,000,000.00 - 1,000,000.00
c. Construction/Rehabilitation/Improvement of Road at
Purok 1 and 2 at Brgy. Cabezas 1,000,000.00 - 1,000,000.00
d. Construction/Rehabilitation/Improvement of Road at
Purok 2&3 at Brgy. San Agustin 1,000,000.00 - 1,000,000.00
e. Construction/Rehabilitation/Improvement of Farm to
Market Road at Brgy. Conchu 1,000,000.00 - 1,000,000.00
f. Construction/Rehabilitation/Improvement of Road of
Calle Mendoza at Brgy. Inocencio 1,500,000.00 - 1,500,000.00
g. Construction/Rehabilitation/Improvement of Road at
Dasmariñas Road, Brgy. Osorio 1,500,000.00 - 1,500,000.00
h. Construction/Rehabilitation/Improvement of Road at
Purok 4 and 5 at Brgy. Hugo Perez 1,500,000.00 - 1,500,000.00
i. Construction/Rehabilitation/Improvement of Road at
Brgy. Lapidario 1,000,000.00 - 1,000,000.00
j. Construction/Rehabilitation/Improvement of Road at
Purok 3 at Brgy. Gregorio 1,000,000.00 - 1,000,000.00
k. Construction/Rehabilitation/Improvement of Road at
Purok 6 at Brgy. Lallana 1,000,000.00 - 1,000,000.00
l. Construction/Rehabilitation/Improvement of Farm to
Market Road at Roguel Street at Brgy. Luciano 1,000,000.00 - 1,000,000.00
9. Opening/Construction of NewRoad -
a. TESDA to Talisayan Road/City Park Phase V 3,000,000.00 - 3,000,000.00
b. Construction of concrete bridge 10,000,000.00 - 10,000,000.00
10. Acquisition/Expropriation of road right of way 1,847,423.60 - 1,847,423.60
11. Construction of open canal @various barangays 2,000,000.00 - 2,000,000.00
12. Construction/rehabilitation of open canal at TMCNHS 1,000,000.00 995,846.61 4,153.39
13. Construction/Improvement/Repair/Rehabilitation/Concreting
of Bayog Road at Brgy. Lapidario 800,000.00 796,708.13 3,291.87

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 Program/Project/
Activity
Description Appropriation Obligation Balance
14. Opening/Construction/Improvement of Farm to Market Road
at Brgy. Aguado (Phase I) 1,000,000.00 - 1,000,000.00
Sub-total 42,947,423.60 6,290,563.18 36,656,860.42
Environmental Management
15. Purchase of Dump Truck 1,500,000.00 - 1,500,000.00
16. Solid Waste Management
a. Purchase of Equipment for Waste Recycling 3,500,000.00 - 3,500,000.00
b. Construction of Central Recovery Facility/Transfer
Station 1,500,000.00 1,497,515.20 2,484.80
c. Construction of Central Recovery Facility @ various
barangays 1,500,000.00 - 1,500,000.00
17. Additional Fund for the construction of meat processing plant 1,000,000.00 - 1,000,000.00
Sub-total 9,000,000.00 1,497,515.20 7,502,484.80

Loan Repaymant
18. Loan Repayment 20,000,000.00 14,632,837.25 5,367,162.75
Sub-total 20,000,000.00 14,632,837.25 5,367,162.75
Total Current Appropriation 85,947,423.60 28,415,271.35 57,532,152.25

Continuing Appropriation
CY 2016
Social Development
1. Construction of Convention Center at City College, Brgy.
Luciano (P2) 6,000,000.00 - 6,000,000.00
2. Local Poverty Reduction Action Team (LPRAT) Projects
(City Counterpart)
a. Supplemental Feeding 1,575,368.00 - 1,575,368.00
b. National Greening Program 172,560.00 172,560.00
c. Provision of Doctor 2,211,072.00 - 2,211,072.00
d. Construction/Improvement of BHS 1,000,000.00 - 1,000,000.00
e. Equiping of BHS 5,270.00 - 5,270.00
3. Construction of Police Outpost at Brgy. Conchu 500,000.00 - 500,000.00
4. Repair/Construction/Installation of Deepwell at various
barangays 4,672.00 - 4,672.00
Sub-total 11,468,942.00 - 11,468,942.00
Economic Development
5. Construction of Bridge Connecting Brgy. Gregorio and Brgy.
De Ocampo 20,000,000.00 - 20,000,000.00
6. Construction/Opening of New Road/Circumferential Road
a. Saluysoy-Pulido-West Plain Road 3,000,000.00 2,992,700.74 7,299.26
b. Tres Cruses-Governador Drive 2,000,000.00 - 2,000,000.00
c. Creencia Road to San Agustin-Luciano Bypass Road 3,000,000.00 - 3,000,000.00
d. P-12 to Thirteen Martyrs Avenue 500,000.00 497,132.81 2,867.19
e. TESDA to Talisayan Road/City Park Phase IV) 4,200,000.00 - 4,200,000.00
7. Acquisition/Expropriation of Road Right of Way 3,079,556.80 - 3,079,556.80
8. Construction of Open Canal at various barangays 7,320.00 - 7,320.00
9. Construction/Improvement/ Repair/Rehabilitation/
Concreting of Roads at various barangays
a. Purok 13, Brgy. San Agustin (Concrete Reblocking) 3,662.45 - 3,662.45
b. Brgy. Aguado (Concrete Reblocking) 1,750,000.00 1,747,425.20 2,574.80
Sub-total 37,540,539.25 5,237,258.75 32,303,280.50
Loan Repaymant
10. Loan Repayment 504,477.65 504,477.65 -
Sub-total 504,477.65 504,477.65 -
Total 49,513,958.90 5,741,736.40 43,772,222.50

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 Program/Project/
Activity
Description Appropriation Obligation Balance
CY 2015
Social Development
1. Construction/Improvement of Multi-Purpose Hall-Brgy.
Conchu 2,393.92 - 2,393.92
2. Continuation/Construction of Health Center -Barangay
Osorio 78,196.79 - 78,196.79
3. Local Poverty Reduction Action Team (LPRAT) Projects
(City Counterpart) 1,402,426.87 1,402,426.87
4. Construction of Convention Center at City College 5,735,000.00 - 5,735,000.00
5. Improvement of City Hall Building 8,000,000.00 - 8,000,000.00
6. Improvement of Perimter fence at City Hall Compound Phase 1 3,670.98 3,670.98
Sub-total 15,221,688.56 - 15,221,688.56
Economic Development
7. Construction/Improvement /Repair/Rehabilitation /Concreting
of Roads of various barangays:
a. Barangay Aguado (Concrete Reblocking) 1,981.86 - 1,981.86
b. Barangay De Ocampo (Concrete Reblocking) 3,002.02 - 3,002.02
c. Barangay Lapidario-Bayog Road (Concrete Reblocking) 2,686.01 - 2,686.01
d. Dasmariñas Street, Barangay Osorio 1,600,000.00 1,587,250.28 12,749.72
8. Opening /Construction of New Road (TESDA to Talisayan
Road/City Park) 2,203.46 - 2,203.46
9. Construction of Open Canal at various barangays:
a. Barangay Luciano 1,807.62 - 1,807.62
b. Barangay De Ocampo 800,000.00 - 800,000.00
c. Barangay Osorio 500,000.00 - 500,000.00
d. Barangay Lallana 2,145.89 - 2,145.89
10. Additional fund for the Improvement of Welcome Arc at
Barangay Hugo Perez 1,000,000.00 - 1,000,000.00
11. Establishment of Organic Farm (Agri-Eco) 902,000.00 - 902,000.00
Sub-total 4,815,826.86 1,587,250.28 3,228,576.58
Environmental Management
12. Solid Waste Management (Construction of MRF at various
barangays) 1,200,000.00 - 1,200,000.00
13. Rehabilitation/Maintenance /Improvement of Paliguang
bayan at Barangay De Ocampo 2,453.76 - 2,453.76
14. Payment of Loan 389,456.96 389,456.96 0.00
Sub-total 1,591,910.72 389,456.96 1,202,453.76
Total 21,629,426.14 1,976,707.24 19,652,718.90

CY 2014
Social Development
1. Construction/Improvement of Multipurpose Hall at Brgy.
Aguado (Phase II) 1,250.67 - 1,250.67
2. Construction of Fire Station 3,650.49 - 3,650.49
3. Purchase of Lot for school sites 2,000,000.00 - 2,000,000.00
Sub-total 2,004,901.16 - 2,004,901.16
Economic Development
4. Construction/Improvement /Repair/Rehabilitation /Concreting
of Roads of various barangays:
a. Barangay Aguado (Concrete Reblocking) 1,790.82 - 1,790.82
b. Barangay Gregorio (Concrete Reblocking) 1,613.60 - 1,613.60
c. Barangay De Ocampo (Concrete Reblocking) 2,141.66 - 2,141.66
d. Barangay Luciano-Lapidario Road (Asphalt Overlay) 1,472.96 - 1,472.96
e. Barangay Osorio (Concreting) 2,452.16 - 2,452.16
5. Construction of Open Canal at various barangays 2,110.92 - 2,110.92

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 Program/Project/
Activity
Description Appropriation Obligation Balance
6. Improvement of Welcome Arc @ Brgy. Hugo Perez (Phase II) 2,000,000.00 - 2,000,000.00
7. Improvement of TMC Public Market at Brgy. San Agustin 2,017.66 - 2,017.66
8. Opening/construction of new road (City Park/City Plaza) 2,629.76 - 2,629.76
9. Loan Repayment of development projects 6,771.95 - 6,771.95
Sub-total 2,023,001.49 - 2,023,001.49
Environmental Management
10. Agricultural Development (Purchase of Tractor Implements) 6,000.00 - 6,000.00
11. Construction of BIOGAS @ slaughterhouse compound at
Brgy. San Agustin 10,050.00 - 10,050.00
Sub-total 16,050.00 - 16,050.00
Total 4,043,952.65 - 4,043,952.65
CY 2013
Social Develoment
1. Construction of Barangay Hall at Brgy. Aguado 1,140.31 - 1,140.31
2. Construction of Barangay Health Center at Brgy. Osorio
(Phase 2) 1,388.45 - 1,388.45
3. Survey and Preparation of Site Development Plan at TMC
Cemetery, TMC Memorial Park at Brgy. Aguado 15,000.00 - 15,000.00
4. Construction/Improvement of Development Center 2nd Floor,
One-Stop Shop Building 3,235.34 - 3,235.34
Sub-total 20,764.10 - 20,764.10
Economic Development
5. Improvement of welcome arc @ Brgy. Hugo Perez (Phase I) 2,183.82 - 2,183.82
6. Const./Improvement/Concreting of Road at Brgy. Aguado -
Brgy. Road (Concrete Reblocking) 1,540.80 - 1,540.80
7. Const./Installation of streetlights at Trece-Indang Road, Brgy
San Agustin - Luciano Section 2,798.40 - 2,798.40
8. Concrete Reblocking at Brgy. Cabezas - Lallana Road 1,431.20 - 1,431.20
9. Construction and widening of San Agustin-Luciano By-pass
Road 4,436.72 - 4,436.72
Sub-total 12,390.94 - 12,390.94
Total 33,155.04 - 33,155.04
CY 2012
Social Development
1. Acquisition of lot for multi-purpose hall at Brgy. Aguado 550,000.00 - 550,000.00
Sub-total 550,000.00 - 550,000.00
Economic Development
2. Construction/Installation of Deepwell at various barangays 1,050.00 - 1,050.00
Sub-total 1,050.00 - 1,050.00
Total 551,050.00 - 551,050.00
Total Continuing Appropriation 75,771,542.73 7,718,443.64 68,053,099.09

Grand Total P 161,718,966.33 P 36,133,714.99 P 125,585,251.34

126
 Annex 12
AAR Page No. 60
City Government of Trece Martires
List of Projects that could not yet be Implemented
As of December 31, 2017

Program/Project/
Activity
Description Appropriation Remarks
Current Appropriation
1. Installation of Lift/Escalator for PWD at City Hall P 1,000,000.00 Insufficient allocation of
fund
2. Creencia Road to San Agustin-Luciano Bypass Road 2,000,000.00 Road right of way
ownership claimed by
different persons.
3. Construction/Rehabilitation/Improvement of Road of Calle 1,500,000.00 Implemented by DPWH
Mendoza at Brgy. Inocencio
4. TESDA to Talisayan Road/City Park Phase V 3,000,000.00 Road Right of Way
under negotiation
5. Opening/Construction/Improvement of Farm to Market Road 1,000,000.00 No identified location
at Brgy. Aguado (Phase I)
6. Construction of Central Recovery Facility @ various 1,500,000.00 No identified location
barangays by the barangay
Sub-total 10,000,000.00
Continuing Appropriation
CY 2016
7. Construction of Convention Center at City College, Brgy. 6,000,000.00 Problem on ownership
Luciano (P2) for the proposed
location
8. Construction of Police Outpost at Brgy. Conchu 500,000.00 Suspended indefinitely
due to availability of site

9. Construction of Bridge Connecting Brgy. Gregorio and Brgy. 20,000,000.00 To be implemented by

De Ocampo DPWH
10 Opening/Construction of New Road (TESDA to Talisayan 4,200,000.00 Hold temporarily.
Road/City Park Phase IV) Negotiation with the
road right of way is on
going
Sub-total 30,700,000.00
CY 2015
Social Development
11. Construction of Convention Center at City College 5,735,000.00 Problem on ownership
for the proposed
location

Total P 46,435,000.00

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 Annex 13
AAR Page No. 69

City Government of Trece Martires

Sample of Erasable Books Distributed to Day Care Children
For Calendar Year 2017

128
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 Annex 14
AAR Page No. 79
City Government of Trece Martires
Schedule of Programs and Projects Without Specific Gender Issues
For Calendar Year 2017

Gender Issue GAD Objective GAD Activity GAD Budget Actual Expenditure
Client Focused
Enhancing the quality education of To nurture pre-schoolers for their Provision of Early Childhood Care
the most vulnerable disadvantage 3- physical, emotional, social and & Development Activities
4 years old children through cognitive development in
Comprehensive Early Childhood preparing them for their formal
Care & Developemtn schooling
P 2,399,250.00 P 1,992,300.00
To augment financial resources of Provision of medical, burial and
families for their medical, burial transportation assistance
expenses and transportation
assistance
Disadvantaged/marginalized and
15,100,000.00 6,361,910.00
indigent families in need of social
To provide the health needs of Orientation on Philhealth
services
indigent families in the City Programs and benefits, payment
of premiums of indigent families

1,500,000.00 1,500,000.00
Special Program for Employment
of Students (SPES)
400,000.00 370,224.00
Lack of financial resources to Sunong Dunong Program to
To provide access to education
pursue their education and develop Persons with Disabilities
and skills development training
skills 319,500.00 319,500.00
Provisions of free instructional
materials to public day care,
elementary and high school 8,000,000.00 7,999,405.00
Poor access to basic health care Deployment of 55 BHWs to
services of indigent families different barangays
To make basic health services
2,000,000.00 1,750,000.00
accessible to the community
Lack of awareness of existing Deployment of 43 BNS to
especially to indigent families
health program and health services different barangays
2,000,000.00 1,322,500.00
Limited access to livelihood To provide additional income to
programs and opportunities indigent families Provision of Capital Assistance 500,000.00 500,000.00
Provision of Livelihood Skills
Training 500,000.00 500,000.00
Total P 32,718,750.00 P 22,615,839.00

132