Republic of the Philippines

COMMISSION ON AUDIT
Regional Office No. VIII

AUDIT REPORT

ON

BARANGAY JUBASAN
(Barangay)

INOPACAN
(Municipality)

LEYTE
(Province)

For the Years Ended December 31, 2020 to December 31, 2022
 REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
REGIONAL OFFICE NO. VIII
LGAS C – Leyte II and Biliran Province
Provincial Satellite Auditing Office (PSAO)
Baybay City, Leyte

July 17, 2023

HON. PEDRO L. AUSTERO

Punong Barangay
Barangay Jubasan
Inopacan, Leyte

Dear Punong Barangay Austero:

We are pleased to transmit the report of our Auditor on the results of his audit on
the accounts and operations of Barangay Jubasan, Inopacan, Leyte, for the years ended
December 31, 2020, 2021 and December 2022 pursuant to Section 2, Article IX-D of the
Constitution of the Philippines, and Section 43(2) of Presidential Decree (PD) No. 1445,
otherwise known as the Government Auditing Code of the Philippines.

The audit was conducted to ascertain the propriety of financial transactions and
compliance of the barangay to prescribed rules and regulations. It was also made to
ascertain the accuracy of the financial records and reports, as well as the fairness of the
presentation of the financial statements.

The Auditor render a qualified opinion on the fairness of the presentation of the
financial statements due to the audit exceptions noted as indicated in the Independent
Auditor’s Report.

We request that the recommendations contained in Part II and those which remain
unimplemented in Part III of the attached report be acted upon immediately. We will
appreciate being informed of the action(s) taken thereon by submitting the duly
accomplished Agency Action Plan and Status of Implementation report.
 We acknowledge the cooperation and support extended to the Audit Team during
the audit by the officials and staff of Barangay Cabulisan and the Municipal Accountant’s
Office of Inopacan, Leyte.

Very truly yours,

For the Commission On Audit

By:

SANTIAGO P. SEÑASE
State Auditor IV
OIC-Supervising Auditor

Copy furnished:

The Honorable Mayor, Inopacan, Leyte

The Sangguniang Bayan, Inopacan. Leyte
The Regional Director, COA, Region VIII, Candahug, Palo, Leyte
 Barangay Jubasan
Municipality of Inopacan
Province of Leyte

AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION

Audit Observations and Recommendations
For Calendar Year 2022 and Prior Years
As of ________________

Agency Action Plan Reason

Target for
Action
Implementation Status of Partial /
Audit Persons Taken /
Audit Date Imple Delay /
Ref Recommend- Action / Dept. Action
Observations ment- Non-
ations Plan Responsi To Be
ation Implem
-ble From To Taken
ent-
ation

Agency Signing Officer: Date __________________

________________________________
Punong Barangay

Note: Status of Implementation may either be (a) Fully Implemented, (b) On-going, (c) Not Implemented,
(d) Partially Implemented, or (e) Delayed
 EXECUTIVE SUMMARY

Introduction

Barangay Jubasan is an upland barangay of Inopacan located 3 kilometers from

the town itself. It has inhabited by 950 people from 215 household. It has total land area
of 192 hectares with a population density of 4.9 hectares or 49/10 hectares. It main
source of livelihood is agricultural/farming.

An audit was conducted on the accounts and operations of Barangay Jubasan,

Inopacan, Leyte, for CY 2020, CY 2021, and CY 2022 with particular emphasis on cash
and property, plant and equipment accounts, utilization of the 20% Development Fund,
Barangay DRRM Fund and fund transfers and compliance with laws and regulations.

The audit was conducted in accordance with laws and applicable generally
accepted auditing standards. The audit included examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statements presentation. Verification, analysis of
accounts, and such other procedures considered necessary were conducted by the team
during the audit.

Financial Highlights

The barangay’s assets, liabilities and equity as of December 31, 2022 and income
and expenses, in comparison with that in CYs 2020 and 2021, are as follows:

Account 2022 2021 2020

Assets 5,224,878.12 4,021,519.74 3,871,667.60
Liabilities 55,605.03 21,418.70 24,129.90
Equity 5,169,273.09 4,000,101.04 3,847,537.70
Income 3,235,924.65 2,353,569.47 2,160,533.00
Expenses 2,066,158.60 1,596,567.35 1,361,516.58

Appropriations, obligations and the remaining balances for calendar year 2022 in
comparison with CYs 2021 and 2020 are tabulated hereunder:

Particulars 2022 2021 2020

Appropriations 3,235,924.65 2,359,569.47 2,160,533.00
Allotments 3,235,924.65 2,359,569.47 2,160,533.00
Obligations 1,924,932.73 1,488,384.79 1,361,516.58
Balance 1,310,991.92 871,184.68 799,016.42
Funds Received from Other Agencies
NGAs
 LGUs
Independent Auditor’s Report on the Financial Statements

The Auditor rendered a qualified opinion on the accompanying financial

statements of the Barangay Jubasan, Inopacan, Leyte as of December 31, 2022 due to the
exceptions as stated in the Independent Auditor’s Report and as discussed in Part II of the
report.

Summary of Significant Observations and Recommendations:

In addition to the exceptions cited above, the significant audit observations with
the corresponding recommendations were as follows:

1. The disclosure in the Notes to Financial Statements pertaining to the

LDRRMF lacks the necessary details and not in the prescribed format
provided in COA Circular No. 2012-002 dated September 12, 2012, thus
significant information of value to users of financial statements was not
provided.

We recommended that the Barangay Bookkeeper and Municipal Accountant

disclose in the succeeding Notes to Financial Statements balances of the
LDRRFM using the format provided in annex D of COA Circular 2012-002.

2. Prior year’s unexpended DRRMF were not transferred to the Special Trust
Fund nor was included in the LDRRMF Investment Plan for CYs 2020, 2021,
and 2022, contrary to Sections 4.4 and 5.1.2 of COA Circular 2012-002, thus,
the funds were left idle in the bank and the objectives of providing the fund
for its purpose may not have been attained.

We recommended that the Barangay Kagawad who is the Chairman of the

Committee on Appropriation (CCA), provide breakdown of the ₱323,666.83
₱252,795.01 BRRM Fund unexpended balance as of December 31, 2022 which
should only include the unexpended balances for the past 5 years.

We also recommended that the Municipal Accountant thru her Designated

Bookkeeper record the prior year’s unused BDRRM Fund as Trust Liabilities
under Special Trust Fund, based on the amount provided by the CCA.

Further, we recommend that the Punong Barangay, as Chairman of the LDRRM

Council, identify the project/s to be funded from the unexpended BDRRM Fund
of previous years, incorporate the same in the LDRRMF Investment Plan and
implement the project/s to fully equip the Barangay and its residents in times of
disasters.
Summary of Total Suspensions, Disallowances and Charges

The Barangay has no unsettled suspension, disallowance and charges as of

December 31, 2022.

Status of Implementation of Prior Years’ Unimplemented Audit Recommendations

Of the 47 audit recommendations contained in the CY 2017-2019 and prior years’

Audit Report on Barangay, 14 were fully implemented while 11 remained not
implemented.
 TABLE OF CONTENTS

Page
No.
PART I - Audited Financial Statements

Independent Auditor’s Report 1

Statement of Management’s Responsibility for 3
Financial Statements
Statement of Financial Position 4
Statement of Changes in Net Assets/Equity 6
Statement of Financial Performance 7
Statement of Cash Flows 8
Statement of Comparison of Budget and Actual Amounts 11
Notes to Combined Financial Statements 16

PART II - Audit Observations and Recommendations 21

PART III - Status of Implementation of Prior Years’ Audit

Recommendations 36
 Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. VIII
Candahug, Palo, Leyte

INDEPENDENT AUDITOR’S REPORT

Hon. Pedro L. Austero

Punong Barangay
Barangay Jubasan
Inopacan, Leyte

Qualified Opinion

We have audited the financial statements of Barangay Jubasan, Inopacan, Leyte which
comprise the Statement of Financial Position as of December 31, 2020, December 31,
2021 and December 2022 and the Statements of Financial Performance, Statement of
Changes in Net Assets/Equity, Statement of Cash Flows and Statement of Comparison of
Budget and Actual Amounts for the years then ended, and notes to the financial
statements including a summary of significant accounting policies.

Basis for Qualified Opinion

Cost of completed project charged to 20% Development Fund amounting to ₱592,674.00

still remained in Construction in Progress (CIP) – Infrastructure Assets, thus the affected
account balances in the financial statements are deemed unreliable. Cost of Labor for
construction of pathway and road concreting totaling ₱123,000.00 charged to 20%
Development fund were erroneously recorded as Repairs and Maintenance-Infrastructure
assets instead of Road Network, thus Road Network account was understated by
₱123,000.00 while Repairs and Maintenance-Infrastructure Assets account was
overstated by the same amount as at year-end. And, the distribution of various relief
goods to the families/household affected by calamities charged to the Local Disaster Risk
Reduction Management Fund amounting to ₱46,964.00 were erroneously recorded as
Food Supplies Expense instead of Welfare Goods for Distribution upon initial recording
and Welfare Goods Expense upon distribution, thus the accounts Welfare Goods Expense
and Food Supplies Expense were misstated as at year end.

We conducted our audit in accordance with the International Public Sector Standards of
Auditing (IPSSA). Our responsibility under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

1
We are independent of the agency in accordance with the ethical requirements that are
relevant to our audit of the financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.

Responsibilities of Management and those Charged with Governance for the Financial
Statements

Management is responsible for the preparation and fair presentation of these financial
statements in accordance with generally accepted accounting principles and for such
internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or
error.

Those charged with governance are responsible for overseeing the barangay’s financial
reporting process.

Auditor’s Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free of material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.

For the Commission On Audit

By:

MA. SHIELA T. ELMIDO

State Auditor II
OIC- Audit Team Leader

July 17, 2023

2
3
 Republic of the Philippines
Barangay Jubasan
Inopacan, Leyte
Combined Statement of Financial Position
As at December 31, 2022
(With the Comparative Figures for CY 2020 & 2021)

2022 2021 2020

ASSETS
CURRENT ASSETS
Cash and Cash 2,48 1,7 1,52
Equivalents 2,914.89 44,355.99 2,173.14
Investments
RECEIVABLES
Receivables 8,378.73 8,793.73 5,584.73
Inventories
Prepayments and Deferred
Charges - - -
2,49 1,7 1,52
Total Current Assets
1,293.62 53,149.72 7,757.87
NON-CURRENT ASSETS
Investments
Receivables
Investment Property
Property, Plant and 2,73 2,2 2,34
Equipment 3,584.50 68,370.02 3,909.73
Biological Assets
Intangible Assets - - -
Total Non-Current 2,73 2,2 2,34
Assets 3,584.50 68,370.02 3,909.73
TOTAL ASSETS 5,224,878.12 4,021,519.74 3,871,667.60

LIABILITIES
CURRENT LIABILITIES
1 1
Financial Liabilities
3,560.00 13,560.00 5,892.00
Inter-Agency Payables 22,169.48 7,358.70 8,237.90
Intra-Agency Payables

4
 Trust Liabilities
Deferred
Credits/Unearned Income - - -
Total Current Liabilities 35,729.48 20,918.70 24,129.90
NON-CURRENT LIABILITIES
Financial Liabilities
Other Payables 19,875.55 500.00 -
Total Non-Current
Liabilities 19,875.55 500.00 -
TOTAL LIABILITIES 55,605.03 21,418.70 24,129.90
NET ASSETS/EQUITY
Total Net Assets/Equity 5,169,273.09 4,000,101.04 3,847,537.70
TOTAL LIABILITIES AND 5,22 4,0 3,87
EQUITY 4,878.12 21,519.74 1,667.60

5
 Republic of the Philippines
Municipality of Inopacan,Province of Leyte
BARANGAY Jubasan
STATEMENT OF CHANGES IN NET ASSETS/EQUITY
For the Period Ended December 31, 2022
(With Comparative Figures for CY 2020&2021)

GENERAL FUND - 100

Accumulated Accumulated Accumulated

Surpluses/(Deficits) Surpluses/(Defi Surpluses/(Defi
cits) cits)
2022 2021 2020
Balance at January 1, 2022 4,000,101.04 3,847,537.70 3,048,521.28
Add (Deduct)
Change in Accounting
Policy
Prior Period Errors (600.00) (2,200.00)
Restated Balance 3,999,501.04 3,845,337.70 3,048,521.28
Add (Deduct) Changes in net
assets/equity during the year
Adjustment of net revenue
recognized directly in net (608,2
assets/equity 6.00 38.78)
Surplus (Deficit) for the period 1,169,766.05 763,002.12 799,016.42
Total recognized revenue and 154,7 799,01
expenses for the period 1,169,772.05 63.34 6.42
Balance at December 31, 2022 5,169,273.09 4,000,101.04 3,847,537.70

6
 Republic of the Philippines
Province of Leyte
Municipality of Inopacan
Barangay JUBASAN
Combined Statement of Financial Performance
For the Year Ended December 31, 2022
(With Comparative Figures for CY 2020 and 2021)

REVENUE 2022 2021 2020

Tax Revenue 71,305.65 41,545.47 -
Share from Internal Revenue 3, 2,163,
Collections (IRA) 021,135.00 735.00 2,020,884.00
Other Share from National Taxes
Service and Business Income
Shares, Grants and Donations
Gains
Other Income 143,484.00 148,289.00 139,649.00
Total Revenue 3,235,924.65 2,353,569.47 2,160,533.00

Less: Current Operation Expenses

Personal Services 1,308,633.00 1,146,394.00 967,216.83
Maintenance and Other Operating
Expenses 616,299.73 341,990.79 394,299.75
Financial Expenses
Total Direct Costs
Non- Cash Expenses 141,225.87 108,182.56 -
Current Operating Expenses 2,066,158.60 1,596,567.35 1,361,516.58
Surplus(Deficit) from Current Operation 1,169,766.05 757,002.12 799,016.42
Add (Deduct) :
Total Transfers, Assistance and 6,
Subsidy from 000.00 -
Total Transfers, Assistance and
Subsidy to - - -
Surplus (Deficit) for the period 1,169,766.05 763,002.12 799,016.42
Total Gains
Net Other Non- Operating Income/(Losses) - - -
Surplus(Deficit) for the period 1,169,766.05 763,002.12 799,016.42

7
 Republic of the Philippines
Municipality of Inopacan, Province of Leyte
Barangay Jubasan

COMBINED CASH FLOW STATEMENT

For the Period Ended December 31, 2022
(With the Comparative Figures for CY 2020 &2021)

Note 2022 2021 2020

Cash Flows from Operating
Activities
Cash Inflows
Collection from taxpayers 71,305.65 41,545.47
Share from Internal Revenue 2,163,7 2,0
Allotment 3,021,135.00 35.00 20,884.00
Receipts from business/service 148,2 1
income 143,484.00 89.00 39,649.00
Interest Income
Dividend Income
Other Receipts 457,350.49 172,918.06
Total Cash Inflows 3,235,924.65 2,810,919.96 2,333,451.06
Cash Outflows
Payment of expenses
Payments to suppliers and creditors 616,299.73 1,596,567.32 1,361,516.58
Payments to employees 1,308,633.00 341,990.79 967,216.86
Interest Expense
Other Expenses
Total Cash Outflows 1,924,932.73 1,938,558.11 2,328,733.44
Net Cash Flows from Operating 1,310,991.92 872,361.85 4,717.62
Activities
Cash Flows from Investing
Activities
Cash Inflows
Proceeds from Sale of Investment
Property
Proceeds from Sale/Disposal of
Property, Plant and
Equipment

8
 Proceeds from Sale of Non-
Current Investments
Collection of Principal on loans to
other entities
Total Cash Inflows
Cash Outflows
Purchase/Construction of
Investment Property
Purchase/Construction of Property, 650,1
Plant and Equipment 572,433.02 79.00
Investment
Purchase of Bearer Biological
Assets
Purchase of Intangible Assets
Grant of Loans
Total Cash Outflows 572,433.02 650,179.00
Net Cash Flows from Investing ( (650,1
Activities 572,433.02) 79.00)
Cash Flows from Financing
Activities
Cash Inflows
Proceeds from Issuance of Bonds
Proceeds from Loans
Total Cash Inflows
Cash Outflows
Payment of Long-Term Liabilities
Retirement/Redemption of debt
securities
Payment of loan amortization
Total Cash Outflows
Net Cash Flows from Financing
Activities
Total Cash Provided by Operating,
Investing and
Financing Activities 738,558.90 222,182.85 4,717.62
Add: Cash at the Beginning of the 1,744,355.99 1,522,173.14 1,517,455.52
year
Cash Balance at the End of the 2,482,914.89 1,744,355.99 1,522,173.14
Year

9
 Republic of the Philippines
PROVINCE OF LEYTE
Municipality of Inopacan
Barangay Jubasan

Statement of Comparison of Budget and Actual Amounts

For the Year Ended December 31, 2022
(In thousands of Pesos)

Differe
nce
Origin Actual Difference
N Budgeted Amounts
al and Amounts Final
Particulars ot
Final Budget and
es
Budget Actual

Original Final
Revenue
A
. Local Source
1. Tax Revenue
Tax Revenue- 1 7
a. Property 5,000.00 15,000.00 - 1,305.65 56,305.65
Tax Revenue-
b. Goods and Services
c. Other Local Taxes
1 7
Total Tax Revenue 5,000.00 15,000.00 - 1,305.65 56,305.65
2. Non-Tax Revenue
a. Service Income
b. Business Income
Other Income and 14 14
c. Receipts 0,000.00 140,000.00 - 3,484.00 3,484.00
Total Non-Tax 14 14
Revenue 0,000.00 140,000.00 - 3,484.00 3,484.00
B
. External Sources
Share from the
National Internal 3,00 3,000,000.0 3,0
1. Revenue 0,000.00 0 21,135.00 21,135.00
2. Share from GOCCs
Other Shares from
3. National Tax
Share from
a. Ecozone

10
 Differe
nce
Origin Actual Difference
N Budgeted Amounts
al and Amounts Final
Particulars ot
Final Budget and
es
Budget Actual

Original Final
b. Share from EVAT
C Share from
. National Wealth
Share from
Tobacco Excise
d. Tax
4. Other Receipts
Grants and
a. Donations
Other Subsidy
b. Income
Inter-Local
5. Transfer
Capital/ Investment
6. Receipts
Sale of Capital
a. Assets
Sale of Capital
b. Assets
Proceeds from
c. Collections Loans
C Receipts from
. Borrowings
Total Revenues and
Receipts 3,15 3,155,000.0 3,2
Expenditures 5,000.00 0 - 35,924.65 80,924.65
General Public Services
(
1,19 1,197,624.0 1,3 126,633.92
Personnel Services 7,624.00 0 - 24,257.92 )
Maintenance and Other 79 58
Operating Expenses 4,126.00 794,126.00 7,749.73 206,376.27

Capital Outlay - - - -
Education
Personnel Services
Maintenance and Other
Operating Expenses
Capital Outlay
Health, nutrition and

11
 Differe
nce
Origin Actual Difference
N Budgeted Amounts
al and Amounts Final
Particulars ot
Final Budget and
es
Budget Actual

Original Final
Population Control
Personnel Services
Maintenance and Other
Operating Expenses
Capital Outlay
Labor and Employment
Personnel Services
Maintenance and Other
Operating Expenses
Capital Outlay
Housing and Community
Development
Personnel Services
Maintenance and Other
Operating Expenses
Capital Outlay
Social Services and
Social Welfare
Personnel Services
Maintenance and Other
Operating Expenses
Capital Outlay
Economic Services
Personnel Services
Maintenance and Other
Operating Expenses
Capital Outlay
Other Purposes:
Debt Service
Financial Expenses
Amortization
15 10
LDRRMF 7,750.00 157,750.00 - 5,583.35 52,166.65
Maintenance and Other
Operating Expenses
Capital Outlay
60 53
20% Development Fund 0,000.00 600,000.00 - 9,807.00 60,193.00
Maintenance and Other

12
 Differe
nce
Origin Actual Difference
N Budgeted Amounts
al and Amounts Final
Particulars ot
Final Budget and
es
Budget Actual

Original Final
Operating Expenses
Capital Outlay
Share from National
Wealth
Maintenance and Other
Operating Expenses
Capital Outlay
Allocation for Senior
Citizens and PWD
Maintenance and Other
Operating Expenses
Capital Outlay
Others
Personnel Services
Maintenance and Other
Operating Expenses
Capital Outlay
Continuing
Appropriations(Capital
Outlay)
General Public
Services
Education
Health, Nutrition
and Population
Control
Labor and
Employment
Housing and
Community
Development
Social Services and
Social Welfare
Economic Services

2,74 2,749,500.0 2,5

Total 9,500.00 0 - 57,398.00 192,102.00
(
Surplus (Deficit) for 2,74 67 111,177.35
the period 9,500.00 405,500.00 - 8,526.65 )

13
14
 Republic of the Philippines
Province of Leyte
MUNICIPALITY OF INOPACAN
Barangay Jubasan
-o0o-

NOTES TO FINANCIAL STATEMENTS

I- General/Agency Profile
> Barangay Jubasan is an upland barangay of Inopacan located 3
kilometers from the town itself . It has inhabited by 950 people from 215
household. It has total land area of 192 hectares with a population density of
4.9 hectares or 49/10 hectares. It main source of livelihood is
agricultural/farming.

II Basis of Financial Statement

- Presentation
> The financial statements have been perpared in accordance with the
Generally Accepted State Accounting Principles and Standards.

III
- Significant Accounting Policies
> The agency uses the accrual basis of Accounting. All expenses incurred
are reported in the Financial Statements in the period to which they relate. Income
is on accrual basis except for transaction where accrual basis is impractical or
when other methods are required.

> Payable account are recognized and recorded in the book of accounts
only upon acceptance of goods/inventory/other assets and rendition of services to
the agency.

> Accounts were reclassified to conform with the Revised Charts of

Accounts prescribed under the New Government Accounting System which was
implemented effective January 1, 2003 per COA Circular No. 2003-001 dated
June 17, 2003.

IV
- Correction of Fundamental Errors

15
 > Fundamental errors of prior years are corrected using the prior Year's
adjustment account, errors affecting the current year's operations are corrected to
the current year's accounts.

V
- CASH

> This account is broken down

as follows:

CASH 2022 2021 2020

Cash Local Treasury 9,342.00 10,348.50 200.00
Petty Cash Fund 3,735.40 3,735.40 3,735.40
Cash in Bank- Local Currency, 2,469,837.4 1,730,272.0 1,518,237.7
Current Account 9 9 4
2,482,914.8 1,744,355.9 1,522,173.1
TOTAL 9 9 4

Receivables
2022 2021 2020
Real Property Tax Receivables 5,584.73 5,584.73 5,584.73
Due From Other Fund
Payroll Fund
Accounts Receivables 36.00 36.00
Advances to Officers and Employees 2,758.00 3,173.00
TOTAL 8,378.73 8,793.73 5,584.73
VI PLANT, PROPERTY AND
- EQUIPMENT

PLANT, PROPERTY AND

EQUIPMENT 2022 2021 2020
Land 52,500.00 52,500.00 52,500.00
Electrification, Power & Energy
Structures
1,167,056.3 1,167,056.3 1,167,056.3
Buildings 3 3 3
(382,402.10
Accumulated Depreciation-Buildings (426,750.24) )
Flood Control 55,681.35
Accumulated Depreciation-Flood
Control (1,763.24)

16
 Other Structures 81,400.00 40,600.00 40,600.00
Accumulated Depreciation-Other (
Structures (7,080.67) 3,214.17)
Office Equipment 137,530.40 137,530.40 122,530.40
Accumulated Depreciation-Office ( (11
Equipment 119,253.88) 6,403.88)
Information and Communication 6 3
Technology Equipment 114,720.00 7,570.00 9,000.00
Accumulated Depreciation-ICT (46,288.59) (24,491.79)
Furniture and Fixtures 39,704.00 39,704.00 39,704.00
Accumulated Depreciation-Furniture (3
and Fixtures (34,575.57) 4,575.57)
Medical, Dental and Laboratory
Equipment 43,000.00 7,000.00 7,000.00
Accumulated Depreciation-Medical (
Equipment (6,080.00) 1,995.00)
Communication Equipment 29,000.00 29,000.00 29,000.00
Accumulated Depreciation- (1
Communication Equipment (22,040.00) 6,530.00)
Oher Property, Plant & Equipment 241,721.00 191,819.00
Accumulated Depreciation-Other (
Property Plant and Equipment 106,372.91)
1,031,607.0
Road Networks 0 654,700.00
Accumulated Depreciation-Road (6
Networks (94,864.06) 2,196.50)
Disaster Response and Rescue
Equipment 13,935.00 13,935.00
Accumulated Depreciation-Disaster
Response and Rescue Equipment (1,875.42) (551.59)
Artesian Wells, Reservoirs, Pumping
Station and Conduits
Irrigation, Canals and Laterals
Construction in Progress- 59
Infrastructure Assets 592,674.00 2,674.00
Construction in Progress-Road
Networks 654,700.00
2,733,584.5 2,159,909.1 2,343,909.7
TOTAL 0 3 3

VI
I- CURRENT LIABILITIES

17
 LIABILITIES 2022 2021 2020
Due to Officers and Employees
Due to BIR 22,169.48 7,358.70 8,237.90
Due to LGUs 13,560.00 13,560.00 15,892.00
Other Payables 19,875.55 500.00
TOTAL 55,605.03 21,418.70 24,129.90

VI
II
- GOVERNMENT EQUITY

GOVERNMENT EQUITY 2022 2021 2020

a. Portion of Property, Plant and 2, 2,15 2,34
Equipment 733,584.50 9,909.13 3,909.73
b. Equity set aside to finance capital
projects with
appropriations provided in the
previous years-
(Continuing Appropriations)
c. Portion of reciprocal account of
inventories
d. Portion of reciprocal account of
Receivables- Disallowances and
Charges 8,378.73 8,793.73 5,584.73
e. Equity allocated to settle existing 2 2
obligations 55,605.03 1,418.70 4,129.90
2,371,704.6 2,418,218.2
f. Available for Operation 5 6 674,896.92
(608,238.78
g. Prior Years' Adjustments ) 799,016.42
5, 4,00 3,84
TOTAL 169,273.09 0,101.04 7,537.70

IX
- INCOME

TAX REVENUE 2022 2021 2020

Real Property Tax Basic 71,305.65 41,545.47
TOTAL 71,305.65 41,545.47

18
 GENERAL INCOME 2022 2021 2020
Clearance and Certification Fees 30,807.50 38,375.50 18,833.00
Waterworks System Fees 105,097.50 106,318.50 117,366.25
Other Business Income 7,579.00 3,595.00 3,449.75
TOTAL 143,484.00 148,289.00 139,649.00

OTHER GENERAL INCOME 2022 2021 2020

Toll and Terminal Fees
3, 2,16 2,02
Internal Revenue Allotment 021,135.00 3,735.00 0,884.00
Subsidy from LGU 6,000.00
3, 2,16 2,02
TOTAL 021,135.00 9,735.00 0,884.00

X
- EXPENDITURES

PERSONAL SERVICES 2022 2021 2020

Productivity Incentive Allowance 55,000.00 55,000.00 46,585.00
Other Bonuses and Allowances 44,209.00 70,191.00
1,036,492.0
Honoraria 0 887,492.00 820,290.58
Cash Gift 55,000.00 55,000.00 55,000.00
Year End Bonus 117,932.00 78,711.00 45,341.25
Philhealth Contributions
1,308,633.0 1,146,394.0
TOTAL 0 0 967,216.83

MAINTENANCE AND OTHER

OPERATING EXPENSES 2022 2021 2020
Traveling Expenses 34,756.00 25,145.00 27,087.00
Training Expenses 15,000.00 2,000.00
Office Supplies Expenses 34,250.00 23,122.00 22,832.00
Electricity Expenses 47,305.48 39,207.75 31,391.95
Membership Dues and Contribution
to Organizations 4,000.00 4,000.00 4,000.00

19
Accountable Forms Expenses 6,400.00 6,900.00 3,600.00
Auditing Services 1,000.00 1,000.00 1,000.00
Food Supplies Expenses 81,237.00 115,262.04 74,063.40
Other Supplies & Materials 77,235.00 43,000.00 23,390.00
Drugs and Medicines Expenses 15,000.00 10,000.00
Repair & Maintenance
2
Electrification, Power & Energy
2,967.00
Structures
R and M - Other Structure 44,674.00 97,557.00
Medical, Dental and Laboratory 3
Supplies Expenses 0,195.00
R and M-Infrastructure 157,646.00 62,970.00
Repair & Maintenance Artesian 2
wells, Reservoir & Pumping Stations 1,532.00
R & M - Land Improvements 68,700.00
R & M - Office Building
R & M Hospital & Health Center
Repair & Maintenance Road,
highways and Bridges
Fidelity Bond Premiums 7,950.75 3,690.00 7,065.00
Other Maintenance and Operating 2
Expenses 21,145.50 7,694.00 5,619.40
TOTAL 616,299.73 341,990.79 394,299.75

NON FINANCIAL EXPENSES 2022 2021 2020

Depreciation-Infrastructure Assets 34,430.80 22,660.67
Depreciation-Buildings and Other 4
Structures 48,214.64 3,305.63
Depreciation-Machinery and
Equipment 35,565.63 16,398.39
Depreciation-Furniture, Fixtures and
Books (34,575.57) 7,543.76
Depreciation-Other Property, Plant 1
and Equipment 23,014.80 8,274.11
TOTAL 106,650.30 108,182.56

FINANCIAL EXPENSES 2022 2021 2020

Bank Charges
TOTAL

20
Notes to Local Disaster Risk Reduction
Management Fund (LDRRMF)

The LDRRMF represents the amount set aside by the Barangay Local
Government Unit to support it's disaster risk management activities pursuant to
R.A No.10121, otherwise known as the Philippine Disaster Risk Reduction and
Management Act of 2010.The amount available and utilized as December
31,2022 totaled P375,236.60 and 292,004.37 utilization, respectively, broken
down as follows

Particulars Amount
2020 2021 2022
Beginning Balance 240,434.60 226,554.58 271,500.18
Current Appropriation 102,150.00 115,336.60 157,750.00
Actual Expenses 116,030.02 70,391.00 105,583.35
Balance as of year-end 226,554.58 271,500.18 323,666.83

List of Expenses
Expenses 2020 2021 2022
Foods Supplies A. Dedal 51,393.60
PPE ST. Jude Thaddeus Drugstore 19,387.20
Quarantine Isolation 20,291.43
Labor Quarantine Isolation 5,550.00
Bir remittance 2,211.90
Bir remittance 737.30
Bir remittance 957.14
Bir remittance 191.43
Alcohol 1,845.56
Bir remittance 87.05
Bir remittance 17.41
Isolation 12,644.29
Bir remittance 596.43
Bir remittance 119.28
Food expense 46,964
Food expense 9,492
DRRM supplies 13,935
Payrolo Labor(riprap flood control) 24,400
JSC hardware(flood control) 31,281.35

21
Yourtech CCTV camera &
electronics 49,902

TOTAL 70,391.00 105,583.35

22
 PART II

AUDIT OBSERVATIONS AND RECOMMENDATIONS

A.Financial Audit

Overstated of Construction-in Progress under 20% Development Fund

1. Cost of completed project charged to 20% Development Fund amounting to

₱592,674.00 still remained in Construction in Progress (CIP) – Infrastructure
Assets contrary to COA Circular No. 2015-009 dated December 1, 2015, and
Philippine Public Sector Accounting Standards, thus the affected account
balances in the financial statements are deemed unreliable.

1.1. COA Circular No. 2015-009 dated December 1, 2015 prescribed the Revised
Chart of Accounts for LGUs to conform with the adoption of the Phil. Public
Sector Accounting Standard (PPSAS).

Construction in Progress-Infrastructure Assets

1-07-10-020
Debit

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.

1.2. The Philippine Application Guidance (PAG) to Philippine Public Sector

Accounting Standards (PPSAS) 17 provides the guidelines on the recognition of
depreciation, methods of depreciation, determination of depreciable amount,
residual value and useful life of PPE. PAG 3 provides the following guidelines on
initial recognition of depreciation: Depreciation of an asset begins when it is
available for use as when it is in the location and condition necessary for it to be
capable of operating in the manner intended by management. For simplicity and
to avoid proportionate computation, depreciation shall be for one month if the
PPE is available for use on or before the 15 th of the month. However, if the PPE is
available for use after the 15th of the month, depreciation shall be for the
succeeding month.

1.3. Review of implementation of projects funded by the 20% Development Fund of

the Barangay revealed that projects already completed with a total amount of
₱592,674.00 were not reclassified to its proper PPE account .Details shown in
table 1.

23
 Table 1. List of completed projects with amounts that still remained in CIP
Project Date Particulars Amount
Construction of Evacuation 4/23/2021 Labor ₱ 58,850.00
Center Phase II 5/26/2021 Labor 4,650.00
6/11/2021 Materials 215,690.00
Subtotal Evacuation Center Phase II 279,190.00
Concreting of Pathway 9/20/2021 Materials 39,000.00
9/20/2021 Labor 16,550.00
Subtotal Pathway 55,550.00
Construction of Evacuation 9/28/2021 Labor 55,300.00
Center Phase III 10/12/2021 Materials 186,900.00
11/3/2021 Materials 5,734.00
12/1/2021 Labor 10,000.00
Subtotal Evacuation Center Phase III 257,934.00
Total ₱ 592,674.00

1.4. Since the aforementioned completed projects which still form part of the CIP
accounts at year end were not reclassified to the appropriate PPE, depreciation
expense was not also recognized during the year these were utilized. Depreciation
needs to be provided because an asset is bound to undergo wear and tear over a
period of time. The working capacity and effectiveness of the asset is reduced due
to passage of time.

1.5. The above-noted omissions of the Municipal Accountant resulted in

misstatements of some PPE accounts and Depreciation Expenses, thus, affecting
their fair presentation in the financial statements as of December 31, 2022.

1.6. We recommend that the Municipal Accountant prepare the Journal Entries
to reclassify the noted CIP - Infrastructure Assets to its proper PPE account.

1.7. Moving forward, we recommend that the Municipal Accountant recognize

the appropriate depreciation expense of the LGU’s assets from the time these
are acquired or completed.

1.8. Comment

Erroneous recording of Repairs and Maintenance Expense

2. Cost of Labor for construction of pathway and road concreting totaling

₱123,000.00 charged to 20% Development fund were erroneously recorded
as Repairs and Maintenance-Infrastructure assets instead of Road Networks,
contrary to COA Circular No. 2015-009 dated December 1, 2015, thus Road

24
 Network account was understated by ₱123,000.00 while Repairs and
Maintenance-Infrastructure Assets account was overstated by the same
amount as at year-end.

2.1. COA Circular No. 2015-009 dated December 1, 2015 prescribed the Revised
Chart of Accounts for LGUs to conform with the adoption of the Phil. Public
Sector Accounting Standard (PPSAS). On recording of assets and expense, the
following accounts were prescribed to be used by LGUs:

Road Networks
1-07-03-010
Debit

This account is used to record the cost incurred in the purchase or

construction or fair value, if acquired through donation or transfers without
cost, of roads, highways and bridges, railways, subways, and other road
network facilities such as footbridge, traffic lights and road signages for
public use. Credit this account for the derecognition of the carrying amount
of the replaced portion

Subsidiary ledgers shall be maintained for each road and each component of
the road
Repairs and Maintenance-Infrastructure Assets
5-02-13-030
Debit

This account is used to record the cost of repairs and maintenance on road
networks; sewer systems; water supply systems; power supply systems;
communication networks; seaport systems; airport systems; parks, plazas,
monuments; and other infrastructure assets.

Subsidiary ledger: 01 - Road Networks 02-Flood Control System 02 -

Sewer Systems 03 - Water Supply systems 04 - Power Supply Systems 05 -
Communication Networks 06 - Seaport Systems 07 - Airport Systems 08 -
Parks, Plazas, Monuments 99 - Other Infrastructure Assets

2.2. Audit of disbursements charged to the 20% Development fund revealed that labor
cost for completed projects amounting ₱123,000.00 was erroneously recorded as
Repairs and Maintenance-Infrastructure Assets as follows:

25
 Table 2. Labor cost of Capitalizable Projects erroneously recorded as Repairs and
Maintenance-Infrastructure Assets
Project Date Check No. Particulars Amount
Construction of Pathway 9/1/2022 577892 Labor ₱ 35,100.00
Road Concreting 12/16/2022 638944 Labor 87,900.00
Total ₱ 123,000.00

2.3. Due to erroneous recording of the above capitalizable labor cost, the Road
Networks account was understated by ₱123,000.00 while Repairs and
Maintenance-Infrastructure Assets was overstated by the same amount as at year
end.

2.4. We recommended that the Municipal Accountant make correcting entry to

record the above labor cost amounting to ₱123,000.00 to the Road Network
account.

2.5. Comment

Erroneous recording for Distribution of Relief/Welfare Goods

3. The distribution of various relief goods to the families/household affected by

calamities charged to the Local Disaster Risk Reduction Management Fund
amounting to ₱46,964.00 were erroneously recorded as Food Supplies
Expense instead of Welfare Goods for Distribution upon initial recording and
Welfare Goods Expense upon distribution, contrary to COA Circular No.
2015-009 dated December 1, 2015, thus the accounts Welfare Goods Expense
and Food Supplies Expense were misstated as at year end.

3.1. COA Circular No. 2015-009 dated December 1, 2015 prescribed the Revised
Chart of Accounts for LGUs to conform with the adoption of the Phil. Public
Sector Accounting Standard (PPSAS). On recording of expenses, the following
accounts were prescribed to be used by LGUs:

Welfare Goods for Distribution

1-04-02-020
Debit

This account is used to record the cost of goods for distribution to people
affected by calamities/disasters/ground conflicts such as canned goods,
blankets, mats, kitchen utensils, flashlights and other similar items. Credit this
account for issuance to end-users, transfers or write-down.
Welfare Goods Expenses

26
 5-02-03-060
Debit

This account is used to record the cost of goods issued/distributed to people

affected by calamities/disasters/ground conflicts such as canned goods,
blankets, mats, kitchen utensils, flashlights and other similar items. This also
includes the cost of food served to people affected by
calamities/disasters/ground conflicts.
Food Supplies Expense
5-02-03-050
Debit

This account is used to record the cost of food issued to hospital/rehabilitation

patients, jail inmates and the like.

3.2. Audit of disbursements in CYs 2020-2022 disclosed that the Barangay procured a
total of ₱46,964.00 goods for distribution paid from the BDRRMF. Details on the
purchase of various relief goods are as follows:

Table 3. Food Items and Other Relief Goods

Check
Date Relief Goods Amount
No.
10 Sacks of Rice
577797 12/26/21 834 pcs. noodles ₱46,964.00
310 can corned beef
3 packs plastic

3.3. Perusal of the entries made by the bookkeeper on the issuances of the above relief
goods revealed that they were erroneously recorded as Food Supplies Expense
instead of Welfare Goods for Distribution upon initial recording and Welfare
Goods Expense upon distribution.

3.4. The erroneous entry of expense resulted in an overstatement of Food Supplies

Expense by ₱46,964.00 and an understatement of the Welfare Goods Expense by
the same amount.

3.5. We recommended that the Bookkeeper record the issuances of relief goods
under the account Welfare Goods Expense rather than Food Supplies
Expense.

Disclosure of LDRRMF to the Notes to FS

27
4. The disclosure in the Notes to Financial Statements pertaining to the
LDRRMF lacks the necessary details and not in the prescribed format
provided in COA Circular No. 2012-002 dated September 12, 2012, thus
significant information of value to users of financial statements was not
provided.

4.1. COA Circular 2012-002 dated September 12, 2012 was issued to prescribe
accounting and reporting guidelines for the LDRRMF of LGUs (including
BLGUs) and NDRRMF given to LGUs and Receipts from other sources.

4.2. Whereas, Section 5.1.16 of the same Circular states “The amount and details of
the unexpended balance of LDRRMF shall be discussed in the Notes to Financial
Statements”. A sample of disclosure was attached as Annex D of the same
circular as shown below:

Annex D
Notes to the Financial Statements

Note____. Local Disaster Risk Reduction Management Fund (LDRRMF)

The LDRRMF represents the amount set aside by the LGU to support it's
disaster risk management activities pursuant to R.A No.10121, otherwise known
as the Philippine Disaster Risk Reduction and Management Act of 2010.The
amount available and utilized during the year totaled ₱_________ and
₱_________ , respectively, broken down as follows:

Amount
Particulars
Available Utilized Balance
Current Year Appropriation:
Quick Response Fund
₱ ₱ ₱
(QRF)
Mitigation Fund (MF)
MOOE
Capital Outlay
Total
Continuing Appropriation: ₱ ₱ ₱
Special Trust Fund
CY 20___ ₱ ₱ ₱
CY 20___
CY 20___
CY 20___

28
 Amount
Particulars
Available Utilized Balance
CY 20___
Total
Total ₱ ₱ ₱

4.3. Review on disclosure made on the Notes to Financial Statements of the LDRRMF
of the barangay disclosed that it was not in the prescribed format as provided in
Annex D of COA Circular No. 2012-002 as it only shows in lump-sum the
available, utilized and balances from previous years unexpended and current
appropriations.

4.4. The Notes failed to discuss in detail the balances under current years
appropriations under 30%QRF and 70%Mitigation Fund and the detailed
breakdown of the unexpended prior years balances which should have given
additional value to the financial statements.

4.5. We recommended that the Barangay Bookkeeper and Municipal Accountant

disclose in the succeeding Notes to Financial Statements balances of the
LDRRFM using the format provided in annex D of COA Circular 2012-002.

4.6. Comment

Incomplete LDRRMF Investment Plan

5. Prior year’s unexpended DRRMF were not transferred to the Special Trust
Fund nor was included in the LDRRMF Investment Plan for CYs 2020, 2021,
and 2022, contrary to Sections 4.4 and 5.1.2 of COA Circular 2012-002, thus,
the funds were left idle in the bank and the objectives of providing the fund
for its purpose may not have been attained.

5.1. Section 4.4 of COA Circular 2012-002 states “The unexpended LDRRMF shall
accrue to a special trust fund solely for the purpose of supporting disaster risk
reduction and management activities of the Local Disaster Risk Reduction
Management Council (LDRRMC) within the next five years. The LDRRMCs
shall decide on the use of the unexpended balance of LDRRMF which shall
be incorporated in the Local Disaster Risk Reduction Management Fund
Investment Plan.”

5.2. Whereas, Section 5.1.2 of the same circular states, “A LDRRMFIP for the DRRM
program shall be prepared annually. It shall present the 30% allocation for QRF
in lump sum and the allocation for disaster mitigation, prevention and

29
 preparedness with details as to projects and activities to be funded. The
LDRRMFIP shall also include a separate caption, the list of projects and
activities charged to the unexpended LDRRMF of previous years.”

5.3. Upon examination of the LDRRMF Investment Plan attached to the Annual
Budget, it was observed that the LDRRMF Investment Plan only included the
items/activities intended to be undertaken/procured out of the current year’s
budget. Also, it was noted that in every Supplemental Budget, a separate
LDRRMF Investment Plan was prepared to identify how the additional funds will
be used, but none was made for the unexpended balances of prior years.

5.4. The Barangay Local Government had a balance of ₱240,434.60 out of its prior
year’s LDRRM as of December 31, 2019 but the Statement of Financial Position
of the barangay showed a Trust Liabilities balance of zero denoting that the
portion of ₱240,434.60 which represented the unused 70% Mitigation Fund-
MOOE and 30% QRF was not recorded under Trust Liability – DRRM and was
not transferred to the Special Trust Fund. The same observations were noted for
CYs 2020, 2021, and 2022. Consequently, the unexpended balances of prior
years’ cannot be used in the absence of the LDRRMFIP which should have
indicated the PPAs for which said prior years’ balances will be used for.

5.5. While it is true that the BDRRM Council will decide on the use of the
unexpended balance of LDRRMF, the same should be reflected in the
LDRRMFIP. Moreover, the continued non-utilization of the unexpended
LDRRMF from previous years left the funds idle in the bank instead of using the
fund to improve the LGU’s capability on disaster mitigation, prevention and
preparedness.

5.6. We recommended that the Barangay Kagawad who is the Chairman of the
Committee on Appropriation (CCA), provide breakdown of the ₱323,666.83
BRRM Fund unexpended balance as of December 31, 2022 which should
only include the unexpended balances for the past 5 years.

5.7. We also recommended that the Municipal Accountant thru her Designated
Bookkeeper record the prior year’s unused BDRRM Fund as Trust
Liabilities under Special Trust Fund, based on the amount provided by the
CCA.

5.8. Further, we recommended that the Punong Barangay, as Chairman of the

LDRRM Council, identify the project/s to be funded from the unexpended
BDRRM Fund of previous years, incorporate the same in the LDRRMF
Investment Plan and implement the project/s to fully equip the Barangay and
its residents in times of disasters.

30
5.9. Comment

31
 PART III

STATUS OF IMPLEMENTATION OF PRIOR YEARS’ UNIMPLEMENTED

AUDIT RECOMMENDATIONS

Of the 47 audit recommendations embodied in the previous Audit Reports of the

Barangay, 15 were fully implemented, seven were partially implemented and 14 are still not
implemented.

Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
CY The existence and valuation We recommended that the
2017- of the Property, Plant and Punong Barangay:
2019 Equipment (PPE) account 1.) Request the Barangay (1)Not
ARB amounting to ₱1,624,609.73 Bookkeeper and the Implemented
Part IIas of December 31, 2019 Municipal Accountant, to
No. 1 could not be ascertained due provide the Inventory
to unreconciled difference of Committee with the
₱909,265.16 between the detailed list of properties
RPCPPE and accounting recorded in the books so
CY records and absence of that the latter can reconcile
2015- property records, contrary to the same with their
2016 COA Circular No. 92-386 RPCPPE. Any variance
ARB thus, the Property, Plant and that will remain should be
Observ Equipment account as of located, otherwise, the
ation December 31, 2019 remain barangay officials shall be
No. 1 unreliable. held liable for losses of
properties.
CY 2.) Require the Designated (2)Not
2012- Barangay Property Implemented
2014 Custodian to prepare and
ARB maintain Property Cards
Observ (PCs) of all PPEs to
ation include data on the
No. 1, quantity, condition, date of
2 and acquisition, and acquisition
Part III cost and;
3.) Request the Barangay (3)Not
Bookkeeper and the Implemented
Municipal Accountant to
maintain the Property

32
 Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
Ledger Cards and reconcile
the same with the PCs of
the Designated Barangay
Property Custodian.
CY Depreciation of assets under We recommended that the
2017- Property, Plant and Municipal Accountant (4) (4)Not
2019 Equipment (PPEs) compute the Accumulated Implemented
ARB amounting to ₱1,572,109.73 Depreciation for each
Part II were not computed and depreciable asset of the
No. 2 deducted from the cost of the Barangay from date of
assets, contrary to Philippine acquisition to current year
Public Sector Accounting by preparing a lapsing
Standard (PPSAS) 17 thus, schedule and (5) prepare (5)Not
the carrying value of the PPE the necessary correcting Implemented
and the report non-cash entries.
expenses in the financial
statements of the Barangay
as of December 31, 2019
were not accurately
presented.
CY The Barangay Treasurer did (6) We recommended that (6)Not
2017- not deposit the full amount the Barangay Treasurer Implemented
2019 of collections and on time, deposit the full amount of
ARB contrary to Section 334(a) of collections at the
Part II RA No. 7160, and other Barangay’s authorized
No. 3 existing rules and government depository
regulations, thus exposing bank within five (5) days
CY barangay funds to risk of loss from receipts thereof or at
2015- thru misuse or least once a month to avoid
2016 misappropriation. administrative sanctions.
ARB
Observ
ation
No. 2

CY
2012 –
2014
ARB

33
 Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
Observ
ation
No. 4
CY The balance of Cash in (7) We recommended that (7)Not
2017- Treasury account as of the Barangay Treasurer and Implemented
2019 December 31, 2019 in the the Municipal Accountant
ARB books of the Municipal reconcile their respective
Part II Accountant was not records in order to detect
No. 4 reconciled with the records errors and effect the
of the Barangay Treasurer, necessary corrections to
contrary to Section 111(2) of arrive at a reliable and
PD 1445, thus errors were correct balance of the Cash
not detected and the accuracy in Treasury account.
of the reported balance is
unreliable.
CY The Barangay’s local income We recommended that the
2017- barely increased in Calendar Punong Barangay and
2019 Years 2017 to 2019 due to other Barangay Officials (8)Not
ARB the inaction of the officials to (8) enact ordinances that Implemented
Part II enact ordinances to will increase barangay
No. 5 maximize their revenue revenues and (9) monitor (9)Not
raising power as mandated in its implemented in order to Implemented
the Republic Act No. 7160, collect more funds for the
thus, funds to finance various Barangay.
activities/programs for
development of the Barangay
and its operational needs
were not enhanced.
CY Unremitted taxes have We recommended that the
2017- accumulated to ₱5,073.14 as Barangay Treasurer: (10) (10)Not
2019 of December 31, 2019, remit the amount of Implemented
ARB contrary to BIR Revenue ₱5,073.14 immediately and
Part II Memorandum Circular No. present to the Audit Team
No. 6 23-2012 dated February 14, proof of such remittance;
2012 and Revenue and (11) remit to the (11)Not
CY Regulation No. 1093, thus Bureau of Internal Revenue Implemented
2015- exposing the Barangay (BIR) the exact amount of
2016 Officials to possible taxes withheld and strictly
ARB penalties while the fund is at within the prescribed due

34
 Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
Observ risk of unauthorized use. date to avoid penalties.
ation
No. 8
CY Only ₱750,882.00 were We recommended that the
2017- utilized out of the Punong Barangay (12) (12)Not
2019 ₱1,344,091.14 appropriations implement all projects Implemented
ARB of the 20% Development listed in the Annual
Part II Fund for CYs 2017-2019 Investment Plan funded by
No. 7 was utilized since the related the 20% DF of the
projects in the Annual Barangay so as to provide
Investment Plan (AIP) were social, economic and
not implemented, contrary to environmental benefit to its
Item 5, DILG Memorandum residents and improve the
Circular No. 2011-1 thus, quality of life in the
socio-economic and barangay.
environmental benefits that
could improve the quality
life of the constituents were
not attained.
CY The Barangay disbursed We recommended that the
2017- ₱49,920.00 only or 31% of Punong Barangay (13) (13)Not
2019 the ₱162,855.00 LDRRMF implement fully the Implemented
ARB Mitigation Fund appropriated activities in LDRRMFIP
Part II in CY 2017, 2018 and 2019 and (14) utilize the 70% (14)Not
No. 8 due to non-implementation mitigation fund in Implemented
of programs listed in the accordance with the
LDRRM Investment Plan, purpose in order to equip
contrary to Section 21 of RA the Barangay Officials and
101211, thereby limiting the its constituents the skill
readiness of the Barangay to and knowledge to prepare
safeguard its constituents in and manage disasters.
times of calamity.
CY Purchased of two lots We recommended that the
2017- totaling to ₱80,000.00 for Punong Barangay and
2019 expansion of Multi-Purpose Barangay Treasurer (15) to (15)Not
ARB Building and Construction of immediately complete the Implemented
Part II Reservoir were not supported necessary supporting
No. 9 with the necessary documents for the lot
supporting documents as purchase and (16) submit (16)Not

35
 Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
called for in Section 13 of to the Audit Team after Implemented
COA Circular 2012-001 completion.
dated June 14, 2012, thus
regularity and legality of the
transactions cannot be
confirmed.
CY Electric bills of the Barangay (17) We recommended that (17)Not
2017- Hall totaling to ₱21,709.19 the SK Chairman prepare a Implemented
2019 were paid from the SK funds list of activities/programs
ARB in CY 2017, contrary to for the development of the
Part II Section 1 and 2 of Rule 5, youth.
No. 10 Implementing Rules and
Regulations of RA No.
10632 and RA No. 9340,
thereby reducing the funds
allotted for enhancement and
empowerment of the youth.

CY Disbursements the We recommended that the

2017- implementation of Punong Barangay and
2019 infrastructure projects in Barangay Treasurer: (18) (18)Not
ARB Calendar Years 2017, 2018 submit the necessary Implemented
Part II and 2019 totaling supporting documents for
No.11 ₱885,212.60 were not each Disbursement
supported were not Voucher for infrastructure
supported with the necessary projects to avoid audit
supporting documents, suspensions and (19) (19)Not
contrary to Section 4 of PD coordinate with the Implemented
1445 and Sections 9.1.1 of Municipal Engineer for the
COA Circular 2012-001, submission of the said
thus validity of the documents to the Audit
transactions, verification of Team.
the status of the project and
its completion could not be
confirmed.
CY The barangay officials did We recommended that the
2015- not strive to increase Punong Barangay and
2016 collection of revenues other barangay officials (20)Not
ARB through strict (20) discuss, (21) plan and Implemented

36
 Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
Observ implementation of existing (22) design (21)Not
ation ordinances or enactment of activities/programs that Implemented
No. 3 new ones using their revenue will increase barangay (22)Not
raising powers per Republic revenues, (23) enact Implemented
CY Act No. 7160, thus, funds to appropriate ordinances and (23)Not
2012 – finance various (24) monitor its Implemented
2014 activities/programs for implementation in order to (24)Not
ARB development of the barangay collect more funds for the Implemented
Observ and its operational needs barangay.
ation were not enhanced.
No. 8
CY Disbursements amounting to (25) We recommended that The (25)Implemented
2015- ₱151,296.60 which are not the barangay officials Barangay
2016 among the Youth refrain from using the SK has
ARB Development Programs and funds for expenses which prepared
Observ Projects were paid from the are not related to Youth Annual
ation 10% SK Fund, contrary to Development. Investment
No. 4 the Implementing Rules and Plan for the
Regulations of Republic Act SK Fund for
No. 10632 thus, the sole CYs 2017,
purpose of Youth 2018 and
Development programs and 2019.
projects were not attained.
CY The Local Disaster Risk We recommended that the The fund
2015- Reduction Management members of the Barangay was
2016 Fund (LDRRMF) for the past Jubasan Disaster Risk utilized.
ARB two (2) years was utilized for
Reduction and
Observ expenses amounting to (26)Not
ation ₱80,246.00 which were not Management Council (26) Implemented
No. 5 disaster-related, contrary to ensure that proper and
COA Circular 2012-002, and efficient utilization of the
DILG Memorandum Circular LDRRMF, particularly the
No. 2012-73 thereby limiting 70% allocation with details
the capacity and readiness of as to projects and activities
the barangay in responding (27)Not
to be funded. Further, (27)
to disasters and in assisting Implemented
the constituents in times of enhance implementation of
calamity. programs which are highly As of CY 2022,
responsive to the areas of only a minimal

37
 Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
the LDRRM Plan. amount of the
fund was utilized
by the Barangay.

The same
observation is
discussed in Part
II of this audit
report.

CY The Solid Waste We recommended that the Together

2015- Management Plan of the Punong Barangay together with the
2016 Barangay on preserving and with the Barangay Kagawad assistance
ARB protecting the environment should (28) formulate Solid of the
(28)Not
Observ was not formulated, contrary Waste Management Plan for Municipalit
Implemented
ation to RA NO. 9003 or the Solid their barangay to include: y of
(29)Not
No. 6 Waste Management Act of strictly (29) enforce and (30) Inopacan
Implemented
2000, thus, the environment intensify the information through its
(30)Not
and health of its citizens campaign on the no-littering different
Implemented
were not adequately policy among the residents; departments
protected. , planning
(31) adopt effective projects (31)Not
and
and programs to support the Implemented
evaluation
LGUs in ecological solid
of the
waste management program;
Barangay’s
and (32) strictly comply with SWMP and
all other prescribed (32)Not
actions
procedures and guidelines Implemented
were
under RA No. 9003. conducted.
Materials
Recovery
Facility
were also
established.
CY The barangay did not (33) We recommended that (33) Implemented
2015- appropriate any amount for the Punong Barangay create a
2016 the implementation of Local Council for the
ARB programs, projects and Protection of Children which The Barangay has
Observ activities for the protection already

38
 Status of
Implementation
Ref. Audit Observations Recommendations Managemen and Reason for
t Action Partial/Non-
Implementation
ation of children, contrary to will develop, identify and appropriated/attrib
No. 7 Republic Act No. 9344 and implement the programs, uted amounts
DILG Memorandum Circular projects and activities using equivalent to 1%
No. 2012-120, thus for LCPC since CY
the said fund pursuant to RA
2020.
children’s rights within the 9344.
barangay was not instituted
and strengthened.

CY The Barangay Bookkeeper (34) We recommended that (34)Implemented

2015 - was not able to prepare and Municipal Accountant strictly
2016 submit the Bank require the Barangay
ARB Reconciliation Statements, Bookkeeper to submit the
Observ required under Section 74 of same to the Audit Team.
ation PD 1445 and Section 3.2 of
No. 9 COA Circular No. 96-011,
thereby the accuracy and
CY reliability of the Cash in
2012- Bank balance in the
2014 Financial Statements of the
Arb Barangay amounting to ₱
Observ 691,030.00 as of December
ation 31, 2016 could not be
No. 3 ascertained.
and
Part III
CY The barangay paid the We recommended that the
2012- amount of ₱10,000.00 for the Barangay (35) submit
2014 Liga ng mga Barangay authority from the National (35)Not
ARB Annual Dues in excess of the Implemented
Executive Board for the
Observ amount set by the National ₱10,000.00 annual dues in
ation Liga Executive Board of excess of the prescribed
No. 9 ₱2,000.00 per year as amount of ₱2,000.00 found in No copy of such
prescribed in article XIII, the Constitution and By-Laws authority was
Section 2 of the New of the Liga ng mga Barangay submitted to the
Constitution and By-Laws of sa Pilipinas. Non-submission Audit Team.
the Liga ng mga Barangay sa
of the same will result to
Pilipinas.
disallowance in post-audit,

39