Executive Summary
Highlights of Financial Operations
Shown below are the highlights of financial operations for Calendar Year 2011:
Description Gen. Fund Proper 20% LDF Special Educ. Fund Trust Fund Total
Total Estimated 343,325,078.86 - 9,028,000.00 - 352,353,078.86
Income
Total Actual 308,893,722.43 - 8,232,592.92 - 317126315.35
Collections
Total 364,825,078.86 - 9,028,000.00 - 373,853,078.86
Appropriations
Total Expenditures 185,784,792.54 - 9,116,570.07 - 194,901,362.61
Total Assets 857,405,447.74 184,815,853.37 26,165,711.12 118,063,375.54 1,186,450,388.10
Total Liabilities 179,234,712.49 15,550,839.10 4,767,685.54 86,624,826.24 286,178,063.37
Total Equity 678,170,735.26 169,265,014.59 21,398,025.58 31,438,549.30 900,272,324.73
Current Ratio 3.18:1 - 4.17:1 1:1 -
Debt Equity Ratio 0.05:1 - - - -
Scope of Audit
A financial audit was conducted on the accounts and operations on the City Government of
Tabaco for the Calendar Year 2011. The audit was conducted to ascertain the propriety of the
financial transactions and compliance of the agency to prescribed rules and regulations. It was also
made to ascertain the accuracy of financial records and reports, as well as the fairness of the
presentation of the financial statements.
A value for money audit was also conducted on 20% Local Development Fund,
Procurement, Infrastructure Projects, Credit and Financing and Real Property Taxes. The audit
sought to obtain adequate and appropriate audit evidence as basis for our conclusions on how
management implements selected programs and/or projects with due regards to economy,
efficiency and effectiveness.
Auditor’s Opinion on the Financial Statements
The auditor rendered a qualified opinion on the fairness of the presentation of the financial
statements because the existence and validity of agency’s Property, Plant and Equipment (PPE)
Accounts valued in the books at P 244,118,193.06 or 21% of its total assets could not be
ascertained due to the non-submission of Report on the Physical Count of PPE at year-end, net
unreconciled balance of Due to and Due from Accounts amounting to P4,803,870.92 and the
failure of management to regularly reconcile accounting and treasury records. The inadequacy of
accounting records did not allow the application of alternative audit procedures to determine the
validity and correctness of these accounts.
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Significant Findings and Recommendations
Financial and Compliance Audit
1. Bank reconciliation statements were not updated on a monthly basis and Accounting and
Treasury Records were not regularly reconciled inconsistent with COA Circular No. 96-011
dated October 02, 1996 and Section 189 ( c ) of G.A.A.M. Vol. I, respectively, thus,
correctness of balances of Cash in Vault and Cash in Banks Accounts at year-end could
not be ascertained.
We respectfully recommended for the City Accountant to make follow-up with LBP so that
she could promptly prepare the monthly bank reconciliation statements for all funds and furnish a
copy to the audit team for review together with the proposed Journal Entry Vouchers (JEVs) if any,
in case of adjustments.
Request the City Treasurer to coordinate with the City Accountant for the immediate
reconciliation of the individual balances of these accounts between her cashbook and the general
ledger and make the necessary adjustments thereof. For this purpose the City Accountant is
advised to furnish the City Treasurer, copy of the Bank Reconciliation Statements, DMs/CMs and
all other relevant supporting documents she needs during the reconciliation process.
This is a re-iteration of our prior years’ audit finding and recommendation. Considering the
urgency of this issue and its possible effects on the financial statements and operations of the
agency, we further recommended that concerned LGU official(s) give this matter utmost
preferential attention.
2. The prescribed period of settlement on cash advances particularly for travel purposes and
maintenance and other operating expenses (MOOE), was not strictly enforced by
management, contrary to the provisions of COA Circular No. 97-002 dated February 10,
1997 resulting to existence of unliquidated balances at year-end.
We respectfully recommended the enforcement by management of the settlement of
previously drawn cash advances. The prescribed period of settlement as provided for under
existing rules and regulations is strictly observed, otherwise, stop granting additional or new cash
advance to those who will not comply.
Considering the significance of the amounts particularly those for prior years, we also
recommended stricter sanctions such as withholding of salaries or any amount due them in case of
failure to comply pursuant to the pertinent provision of COA Circular No. 97-002 and/or other
available remedies pursuant to Section 89 and 128 of P.D. No. 1445 otherwise known as the
Government Auditing Code of the Philippines.
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3. Existence of long outstanding receivables and payables amounting to P 1,849,572.19 and
P 25,843,840.59 respectively, insufficiency of its documentation and inadequacy of
disclosures in the financial statements, resulted to possible misstatement of current assets
and liabilities in the financial statements, respectively.
We respectfully recommended that the City Accountant review and recheck the validity
and correctness of claims appearing in the Schedule of Receivables and Payables. Effect the
necessary adjustments or reversions in case of invalid or insufficient claims to reflect the correct
amounts, thus, present a reliable and accurate financial report of the agency.
4. The existence and validity of agency’s Property, Plant and Equipment (PPE) Accounts
valued in the books at P 244,118,193.06 or 21% of its total assets at year-end could not
be ascertained due to the non-submission of Report on the Physical Count of PPE at year-
end required under Section 57 of MNGAS Vol. II for LGUs.
We respectfully recommended for the Inventory and Disposal Committee to hasten the
conduct of physical count of the agency’s property, plant and equipment, the maintenance of
complete subsidiary records by the City Accounting Office, reconciliation of subsidiary records with
property records and submit copy of the Physical Inventory Report to the audit team for review.
5. Due from and Due to Other Funds Accounts in the Consolidated Financial Statements
showed a net unreconciled credit balance of P 4,803,870.92 contrary to sound accounting
practices that reciprocal accounts should be reconciled and eliminated in the Consolidated
Financial Statements at year-end.
We respectfully recommended that the City Accountant immediately reconcile the Due to –
Due from Other Funds Accounts and make the necessary adjustments on the individual fund’s
books including the necessary transfer of funds in the bank as a consequence of the reconciliation.
Eliminate these accounts in the Consolidated Financial Statements upon reconciliation.
Henceforth, periodic reconciliation is recommended in order to avoid similar situation in the future.
6. Payment for the purchase of risograph master and ink amounting to P126,136.22 were
recorded as Prior Year’s Adjustments instead of Accounts Payable Accounts inconsistent
with Section 12 of the MNGAS for LGUs, Vol. I, thus resulting to mis-statement of the
financial statements.
We respectfully recommend for the City Accountant to reconcile the accompanying
Obligation Request No. 200-12-105-08 dated December 29, 2008 which disclosed that the amount
of P 133,276.00 inclusive of VAT were obligated but remains unpaid until August 01, 2011 and
prepare the following Reclassification Journal Entry and furnish the Audit Team a copy thereof for
review.
Accounts Payable ------------------------------------------------- P126,136.22
Prior Year’s Adjustments-------------------------------------------------P126,136.22
To reclassify payments of Accounts Payable erroneously
recorded as PYRs Adjustments.
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7. Payments for monetization of leave credits amounting to P2,553,393.95 were recorded as
Other Personnel Benefits instead of Terminal Leave Benefits Accounts inconsistent with
Section 12 of the MNGAS for LGUs, Vol. I, thus resulting to mis-statement of the financial
statements.
We respectfully recommended for the City Accountant to prepare the following
Reclassification Journal Entry and furnish the Audit Team a copy thereof for review.
Terminal Leave Benefits-------------------------------------------------- P2,553,393.95
Other Personnel Benefits------------------------------------------------- P2,553,393.95
To reclassify payments for Monetization of Leave Credits
erroneously recorded as Other Personnel Benefits.
Henceforth, classify appropriations for both payment of terminal leave and monetization of
leave credits under the Terminal Leave Benefits Account
8. Claims for gasoline, oil and lubricants were processed and consequently paid despite the
lack of the necessary required supporting documents which cast doubt on the validity of
the said claims inconsistent with Section 4(6) of P.D. No. 1445 and pertinent provisions of
COA Circular No. 77-61 dated September 26, 1977 otherwise known as the Manual of
Fuel Consumption of Government Vehicles.
Management is enjoined to observe pertinent rules and regulations on the Utilization of
Government Motor Vehicles pursuant to the COA Circular No. 77-61 dated September 26, 1977
otherwise known as the Manual of Fuel Consumption of Government Vehicles and in the
documentation of claims for payment of Gasoline, Oil and Lubricants (GOL) required under Section
4(6) of P.D. No. 1445.
Management should also consider in the future, the possibility of investing funds for its
fleet of vehicles more particularly the garbage trucks, considering that these assets are being
used under the City Solid Waste Management Program which is very vital public service as its
focus towards environmental protection and sanitation.
9. Various expenses which could be recorded in more appropriate accounts pursuant to
Section 12 of NGAS Vol. I were classified as Other Maintenance and Operating Expenses
(OMOE) thus, resulting to mis-statements of financial statements at year-end.
We respectfully recommended for the City Accountant to make the necessary adjustment/s
to reclassify the various expenses that were recorded as Other Maintenance and Operating
Expenses in order to fairly present the financial statements at year-end. In the future, the City
Accountant should refrain from recording in the OMOE account, expenditures for which specific
accounts have been provided in the NGAS Chart of Accounts. In case the appropriations for
particular expenses are already exhausted, realignments or supplemental budgets may be resorted
to, instead.
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Prepare and present the Budget in accordance with the requirements of Section 317 (b)
(3) of R.A. No. 7160 showing the detailed budgetary requirements containing the brief description
of the programs and projects and the specific activities including desired results together with the
object of expenditures in order to ensure proper charging and to avoid subjective judgment in the
recording of expenses using the account Other Maintenance and Operating Expenses.
10. We have reviewed Contracts/Purchase Orders and supporting documents issued for
various Procurements for CY 2011 and observed the following deficiencies:
a. Some Purchase Orders, Purchase Requests, Request for Quotations, Abstract of
Awards, Delivery Receipts, Inspection and Acceptance Reports were not properly
filled, thereby defeating the purpose for which they were officially designed for a
stronger internal control.
b. The purpose of the requisition was not specific in the Purchase Request and
sometimes when indicated, it was vague or expressed in general terms.
c. Inconsistencies were noted relative to the chronology of events from purchase
request to the award of the contract.
d. Considerable delay were observed from the time purchase requests were
prepared up to the preparation of the requests for quotations and finally the
preparation of purchase orders which rendered said processes inefficient.
e. Purchase orders in connection with procurement chargeable against the funds of
the Sangguniang Panlungsod (SP) were signed by SP Member instead by the City
Mayor who is the Head of the Procuring Entity (HOPE). (GPPB Opinion on Policy
Matter No. PM001-2010 dated January 26, 2010).
f. Purchase Orders and even some contracts were not furnished the audit team
within the reglementary period which is five (5) days after execution or issuance.
Some were furnished the audit team just in time when the claim for payments is
being processed by the Accounting Department which, in both situations,
precludes the audit team to review promptly and inform management of any
deficiencies noted thereon.
g. There were Purchase Orders (POs) in which only the relevant characteristics
and/or performance requirements were specified and did not include the brand
names, which situation may lead to confusion during deliveries and inspections.
With the above observations, we recommended the following course(s) of action in
order to strengthen the internal control system of the agency particularly on the preparation
and approval of procurement documents.
a. Properly fill-up Purchase Orders, Purchase Requests, Request for
Quotations, Abstract of Awards, Delivery Receipts, Inspection and
Acceptance Reports in accordance with its official design and certified
and/or approved by proper agency officials.
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b. Verify the purpose of the requisition in the Purchase Request to facilitate
proper review and accountability as well as in the execution of the object
of the requisition.
c. Observe the chronology of events from purchase request to the award of
the contract as part of the internal control by affixing number and dates on
specific documents as the transaction or events occurred.
d. Observe promptness in the preparation and approval of procurement
documents from purchase request to request for quotations until it
reaches the purchase order to avoid unnecessary delay in order to
improve process efficiency.
e. Purchase orders in connection with procurement chargeable against the
funds of the Sangguniang Panlungsod (SP) should be signed by the City
Mayor who is the Head of the Procuring Entity (HOPE). (GPPB Opinion on
Policy Matter No. PM001-2010 dated January 26, 2010.
f. Furnish Purchase Orders and Contracts the audit team within the
reglementary period of five (5) days after its execution or issuance in order
for the audit team to review promptly and inform management of any
deficiencies noted thereon in order to facilitate immediate corrective
action.
g. Include the brand names together with the specifications of the items
quoted by the supplier in response to the advertised relevant
characteristics and/or performance requirements of the of items needed
by the agency in the Purchase Order to serve as reference during
deliveries and inspection and acceptance by management. Section 18 of
the Revised IRR of R.A. No. 9184 prohibits the use of brand names in the
Purchase Request (PR) and Advertisements in order to give prospective
bidders or suppliers the freedom to quote items in response to the
advertised needs of the Agency with prices most advantageous to the
government.
11. The City Accounting Office failed to maintain special accounts in the General Fund for its
economic enterprise, loans, and development projects as required under Section 313 of
R.A. 7160 and Sections 105, 106 and 110 of the New Government Accounting System
(NGAS) Manual, Vol. I, thus, depriving management and other stakeholders of the
necessary information relative to the financial condition and results of operation of each
special account.
We reiterated the teams previous years’ recommendation for the City Accountant to
maintain a complete set of subsidiary ledgers for the abovementioned Special Accounts in the
General Fund, and to prepare separate financial statements thereof, pursuant to Section 313 of RA
7160 and pertinent provisions of NGAS Manual, Vol. I.
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We also recommended for management to come up with a specific guidelines to be
enacted by the Sangguniang Panlungsod relative to the operations of the City Pasalubong Center
to include among others, the manner of granting seed money for its operating capital, accounting
for inventory, income and expenses, procurement, hiring and compensating employees who will
man the business. Considering that, unlike other public utility and economic enterprise enumerated
above which is a service business, the Pasalubong Center has the nature of a trading and
merchandising business of the City Government, hence it should be registered with the BIR for the
issuance of a separate official receipts to be issued to its customers and clienteles.
We likewise recommended for management to hasten the completion of the City
Integrated Bus Terminal at Barangay Pawa in order to serve the much pressing needs of bus
operator and commuters for a convenient terminal and at the same time augment the revenue of
the City Government from its operations.
12. Management pre-audit activities being part of the agency’s accounting and fiscal control
processes was inadequate, resulting to transactions which were processed and paid even
if not certified or approved by proper officials and not supported with complete
documentary and/or technical requirements.
With the above observations, we recommended the following course(s) of action in order
to strengthen the management pre-audit activities being part of the agency’s accounting and fiscal
control processes:
Direct the City Accountant not to pass in pre-audit, transactions not certified/approved by
proper officials and not supported with complete documentary and/or some other technical
requirements appearing legal and proper.
The use of Checklist of Minimum Supporting Documents per class of transaction is
recommended as a guide of the Processor and Reviewer. Furnish copy of said Checklist the
different Department Heads for their guidance in the documentation of claims emanating from their
respective ends. Strengthen monitoring controls on agency transactions.
13. Had the City prepared and submitted the Procurement Monitoring Report (PMR) required
under Section 12.2 of the IRR of R.A. No. 9184, the Government Procurement Policy
Board (GPPB) could have make use of the data and information contained therein in their
data base and as reference in policy formulation.
We recommended for the Bids and Awards Committee (BAC) to hasten the preparation of
the Procurement Monitoring Report (PMR) for the approval and submission by the Head of the
Procuring Entity (HOPE) in order to comply with the requirements of Section 12.2 of the IRR of
R.A. No. 9184.
14. Numerous vouchers and payrolls for check disbursements and liquidation of cash
advances, respectively were not yet submitted to the Audit Team as required under
Section 7.2.1 (a) of COA Circular No. 2009-006 dated September 15, 2009, thus
prohibiting timely review and examination thereof.
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We recommended to the Honorable City Mayor to create a Committee to conduct an
investigation on the City Accounting and Treasurer’s Offices in order to find out the cause of the
problem as well as to pinpoint accountability regarding these unsubmitted accounts. Appropriate
sanctions pursuant to Section 7.1.2 of COA Circular No. 2009-006 may be commenced for
unjustified failure/refusal of any of these accountable officers to comply with the aforesaid legal
and/or regulatory requirements.
We also recommended that the City Accountant and City Treasurer and all others who
have direct hand in the processing, approval and payment of the transactions to immediately
submit said accounts complete with the necessary supporting documents for us to conduct timely
review thereon. Henceforth, submission of accounts should be done in accordance with the
pertinent provisions of the aforementioned COA Circular.
We recommend further for the two concerned Offices (City Accounting and Treasurer’s
Office) to devise a uniform Record and Monitoring Logbook wherein the Flow of these accounts
could be immediately traced and monitored in order to eliminate the cause of the problem and to
improve the Processing, Recording and Monitoring System being part of the agency’s overall
internal control System.
15. Relevant controls in the granting and utilization of cash advances for PS and MOOE were
observed to be inadequate, thus resulting to control weaknesses thereon.
We therefore respectfully recommended the following courses of action in order to
strengthen the internal control on the granting, utilization and liquidation of cash advances for PS
and MOOE:
1. Support payrolls for RATA with a Certification that the concerned employee did not
used government vehicle, that the amount was used in connection with official
functions and that in case they use government vehicle, their RATA should be
deducted proportionately.
2. Settle first previous cash advances before a new cash advance could be granted.
3. Initial alterations particularly on the dates and amounts in the Official Receipts
(ORs).
4. Use only ORs to acknowledge payments for the purchase of office supplies.
5. Require the individual authorized to received payment of salaries or wages, to affix
his or her signature on the payroll and not the signatures of the payees.
6. Release salaries or wages only to authorized persons and only upon presentation
of valid authorization.
7. Require that ORs for cell cards are dated and names of payor indicated to
determine the persons as well as activity to which it pertains.
8. Only valid transactions chargeable against the cash advance should be attached
as part of the supporting documents to liquidate cash advance. Dates of
supporting documents should reconcile with the date of cash advance.
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9. Disclosed unpaid number of days pertaining to the previous payroll period and
show separately and not include in current payroll period so that the total number
of days do not exceed the 10 days period for every 15th and 30th pay period.
10. The City Government takes appropriate measures to reduce and control the
increasing amount of general services.
16. The Agency’s processes, procedures and controls in the requisitioning, procuring, delivery
and inspection of medicines and drugs as part of its overall internal control is inadequate,
thus leaving no reasonable assurance as to their safety, good quality and efficacy of use.
With the above-noted deficiencies, we respectfully recommended the following
courses of action in order to strengthen the internal control system of the agency
particularly on requisitioning, procuring, delivery and inspection of medicines and drugs:
1. Antibiotics should be supported with Batch Certificate pursuant to R.A. No. 3720
as amended by E.O. No. 175 dated May 22, 1987. In its absence, test analysis by
BFAD should be resorted to in order to ensure its safety, efficacy and good quality.
In no case that retentions and/or warranties be released prior to the results of the
test analysis.
2. The BAC should see to it during the eligibility screening or during the post-
qualification that the winning bidder’s LTO is authentic and valid and that the
individual manufacturer or local distributor in case of foreign drugs as appearing in
the CPR of every medicines delivered reconciles with that of the List of Sources in
the LTO to ensure that the supplier is an authorized wholesaler or distributor.
3. LTO and CPR should be attached in every claim and should be properly
authenticated by the BAC Secretariat based on the originals presented in order to
ensure regularity and validity of documents.
4. Management should designate a permanent employee who has adequate
knowledge and training in the inspection of medicines and drugs, since the
conduct of inspection is not only limited to quantity but most especially to quality of
medicines in order to ensure that the medicines and drugs being procured and
dispensed by the RHU are safe, efficacious and of good quality and most
especially affordable to the ordinary citizen of the community.
Value for Money Audit
17. Had the utilization of the 20% Local Development Fund been fully maximized during
Calendar Year 2011, the constituents could have timely benefited from the socio-economic
development and environmental outcomes from the said programs, projects or activities
(PPA’s) envisioned under the approved Annual Investment Plan.
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We respectfully recommended to the City Government to adhere strictly to JMC No. 2011-
1 dated April 23, 2011, in the appropriation, utilization and prompt implementation of its 20% LDF.
Expenditures that should be charged to this fund should be in accordance with the Local
Development Plan and Annual Investment Program in order to bring optimum benefits to the
constituents of the City Government and in support towards the Philippine Development Plan and
the Medium-Term Public Investment Program.
Valid expenses which do not directly contribute to the attainment of desirable socio-
economic development and environmental management outcomes and nor partake the nature of
investment or capital expenditures should be charged to the General Fund Proper and not against
the 20% Local Development Fund pursuant to the aforementioned JMC.
18. Had the procurement of medical equipment been made within a reasonable time after the
approval of the purchase request, the intended beneficiaries could have availed its
immediate benefits.
We respectfully recommended that management should adopt a reasonable time in the
procurement process particularly those made thru alternative methods moreso, in cases of
emergency in order not to delay the delivery of basic public services more particularly health
services which is a primordial concern of the City Government. In case delay was due to the fault
of the supplier, reasonable liquidated damages should be imposed where necessary.
19. The School Buildings could have been immediately utilized by intended beneficiaries had
the construction were completed within the time frame.
We respectfully recommended that management should address all issues relative to the
unworkable weather conditions within the contract period during the preliminary engineering and
for concerned contractor to bring to the attention of management issues such as presence of
squatters right after the site inspection in order to avoid delay in the construction works and other
related problems that may arise in the future which may results to inefficiencies and uneconomical
government operations.
20. Had the City established the actual Real Property (RPT)/Special Education Tax (SET)
Receivable Accounts at the beginning of the year as required under Section 20 of NGAS
Vol. I, management could have monitored the true and correct RPT and SET receivables
and as basis for an intensified collections of income accruing to the City Government for
the year, thus improving collections efficiency and more development projects beneficial to
the constituents.
We respectfully recommended the following courses of action:
1. The City Assessor should furnish first the City Treasurer with the updated
Assessment Roll (AR) as early as possible in order for the former to update her
Real Property Tax Account Register (RPTAR) as basis for the preparation of the
certified List.
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2. The City Treasurer should furnish the City Accountant with a duly certified list
extracted from her (RPTAR) showing the names of the taxpayers and the amount
due and collectible for the year. This is also useful in monitoring arrearages as
well as benchmark in determining collections efficiency.
3. The City Accountant should establish the actual Real Property/Special Education
Tax Receivable Accounts based on the said certified List at the beginning of the
year by drawing a Journal Entry Voucher (JEV) to record the debit to Real
Property Tax Receivable/Special Education Tax Receivable and crediting Deferred
Real Property Tax Income and Deferred Special Education Tax Income as
required under Section 20 of NGAS Vol. I.
21. The City failed to include in its Annual Local School Board (LSB) Budget for CY 2011
some of the priority items chargeable to Special Education Fund (SEF) as identified in
Section 272 of the Local Government Code (LGC) and DECS-DBM-DILG Joint Circular
No. 01. Likewise, the budget for the year was not equitably distributed among the legally
mandated priorities based on the actual needs of the school beneficiaries.
We respectfully recommended that the City School Board should comply with Section 272
of the Local Government Code and DECS-DBM-DILG Joint Circular No. 01, Series of 1998 in
identifying programs, projects and activities (PPAs) chargeable against the SEF during the
preparation of the City Annual School Board Budget. The Local School Board may also provide the
necessary advice and/or coordination with the Sangguniang on the necessity for the uses of local
appropriations for educational purposes pursuant to Section 99 of the Local Government Code.
22. Payment for the Rehabilitation of the San Antonio Health Center amounting to
P1,476,436.66 were charged against the Philhealth Capitation Fund inconsistent with the
Memorandum of Agreement (MOA) and Outpatient Consultation and /diagnostic Benefit
Package (OPB) Guidelines, thus may result to inefficiency in the utilization of the said fund.
We respectfully recommended that Philhealth Capitation Fund should be utilized solely for
the purpose/s enumerated under the PCF MOA and OPB Guidelines. Henceforth, concurrence of
Philhealth should be secured for items charged which is not among those enumerated above and
in Philhealth Circular No. 161 s. of 2004.
23. Credit and Financing
The only long-term loan entered into by the city government was in Calendar Year 2003
from the Land Bank of the Philippines, Legazpi Branch amounting to P163,790,000.00 which was
used to finance the site development, construction of Supermarket/Mall building, equipment and
the feasibility/market studies.
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The contract was awarded to Liberty Builders and Development Corporation, a Manila
based construction company for a total contract amount of P169,990,378.79 and with the Adjusted
Building Cost of P 168,768,354.82 as of May 2006. The construction was reported to be 100%
completed per Certificate of Final Inspection dated January 30, 2008.
The said mall was already opened for occupancy in 2009 wherein its ground floor was
awarded to Liberty Commercial Center, a Tabaco City-based Corporation and the second floor was
opened to local vendors. At the end of CY 2010, the City Mall is already fully operational.
As of December 31, 2011 the balance of the principal of said loan was P35,833,345.23
and is due to be fully paid on 2013. No other financing activities were entered into by the city
government at year-end.
Gender and Development
The City Government has implemented its Gender and Development Plans and Activities
by mainstreaming among the basic public services on different frontline departments.
Management Compliance with Tax Laws
Management complied with tax laws by withholding applicable tax on compensation,
goods and services and Infrastructure Projects and remitting the same to the Bureau of Internal
Revenue (BIR) on a periodic basis in compliance with the pertinent BIR regulations.
Procurement of Commonly-used Supplies from PS-DBM
The City Government procured some of its commonly-used supplies requirements which
are available at PS-DBM.
Status of Suspensions, Disallowances and Charges as of December 31, 2011
Notice of Suspensions Notice of Disallowances Notice of Charge
P 80,199.96 P 0.00 P 0.00
Status of Implementation of Prior Year’s Audit Recommendations
Out of the forty one (41) prior years’ audit recommendations fourteen (14) or 34% were
implemented, twenty three (23) or 56% were partially implemented and four (4) or 10% were not
implemented.
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