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    Sta. Barbara Executive Summary 2021

    Uploaded by

    Jose Maca

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    © All Rights Reserved
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    Sta. Barbara Executive Summary 2021

    Uploaded by

    Jose Maca
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    18 views4 pages

    Sta. Barbara Executive Summary 2021

    Uploaded by

    Jose Maca

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    EXECUTIVE SUMMARY

    A. INTRODUCTION

    The Municipality of Sta. Barbara was created by virtue of Governor General


    Decree/Order dated October 30, 1741. When a substantial number of its residents
    were converted to Christianity, the Dominican missionaries built a church and named
    the place Sta. Barbara De Tolong in 1741. In the course of time, its residents dropped
    its native name Tolong and Sta. Barbara got its name after its Patron Saint.

    At present, it is classified as first-class Municipality located west of Urdaneta


    City, consisting of 29 barangays with a total land area of approximately 6.548 square
    kilometers and a total population of 87,792. The Municipality is headed by the
    Municipal Mayor, Honorable Joel F. Delos Santos, supported by 12 elected officials,
    195 permanent employees, 2 co-terminous, 10 contractuals and 458 job orders.

    B. OPERATIONAL HIGHLIGHTS

    The Municipal Government of Sta. Barbara implemented major infrastructure


    projects and programs funded out of the appropriation of the agency and from outside
    sources which have been completed or accomplished at year-end that boosted its
    social, agricultural and economic growth and delivery of basic services. Among the
    major projects of the agency that were accomplished and completed during the year
    are the following:

    Name of Project/Program/Activity Total Cost (₱) Remarks


    1. Rehabilitation/Improvement of Barangay 8,978,075.07 Completed
    Road, Barangay Cablong, Sta. Barbara,
    Pangasinan
    2. Construction of Farm to Market Road 7,398,066.15 Completed
    Botao-Minien West Roadline (Phase I),
    Barangays Botao-Tebag East-Minien West,
    Sta. Barbara, Pangasinan
    3. Construction of Municipal Isolation 6,996,409.79 Completed
    Facility Building (Phase I) Barangay
    Poblacion Sur, Sta. Barbara, Pangasinan
    4. Construction of One Storey Commercial 6,523,848.63 Completed
    Stall, Poblacion Norte, Sta. Barbara,
    Pangasinan
    5. Concreting of barangay roadline (Sitio 5,246,929.24 Completed
    Pegley) Barangays Malanay and Nilombot,
    Sta. Barbara, Pangasinan

    i
    C. FINANCIAL HIGHLIGHTS

    The financial position, financial performance, and sources and utilization of


    appropriations and obligations of the agency for calendar year (CY) 2021, with
    corresponding figures for CY 2020 are as follows:

    Increase
    2021 2020 % of
    Account (Decrease)
    (₱) (₱) Change
    (₱)
    Assets 1,047,992,503.74 811,361,662.45 236,630,841.29 29.16
    Liabilities 284,753,131.13 124,355,422.39 160,397,708.74 128.98
    Equity 763,239,372.61 687,006,240.06 76,233,132.55 11.10
    Revenue 298,869,378.41 298,756,022.55 113,355.86 0.04
    Expenses 227,190,653.81 233,551,598.57 (6,360,944.76) (2.72)
    Surplus 71,678,724.60 65,204,423.98 6,474,300.62 9.93
    Appropriations 443,598,897.10 448,174,725.47 (4,575,828.37) (1.02)
    Allotments 443,598,897.10 448,174,725.47 (4,575,828.37) (1.02)
    Obligations 350,639,431.83 288,024,540.40 62,614,891.43 21.74
    Balances 92,959,465.27 160,150,185.07 (67,190,719.80) (41.95)

    D. SCOPE OF AUDIT

    The audit covered the operation of the Municipality of Sta. Barbara for CY
    2021. It was conducted to ascertain the fairness of presentation of the financial
    statements, check compliance with existing rules and regulations and determine
    whether management in the implementation of its programs, projects and activities
    has attained its goals and objectives in an economical, efficient and effective manner.

    The audit included analysis of accounts, review of transactions, test of


    compliance with existing laws, rules and regulations, inspection of programs and
    projects, review of operating procedures, interview of officials and employees and
    such other procedures considered necessary under the circumstances.

    E. AUDITOR’S OPINION ON THE FINANCIAL STATEMENTS

    The Auditor rendered a qualified opinion on the fairness of presentation of the


    financial statements due to inclusion of settled salaries and bonuses of officials and
    employees of the Municipality in the Accounts Payable (AP) balance and non-
    deduction thereof from the balance of Cash in Bank account in the amount of
    ₱11,165,222.67 resulting in the overstatement of the balances of both accounts by the
    same amount.

    ii
    F. SUMMARY OF SIGNIFICANT AUDIT OBSERVATIONS AND
    RECOMMENDATIONS

    Part II of the report contains audit observations and recommendations which


    were discussed with the Management during the exit conference conducted on April
    26, 2022. Management comments were incorporated in the report, where
    appropriate. The most significant of which are as follows:

    1. Real Property Tax (RPT) Receivable and Special Education Tax (SET) Receivable
    accounts in an aggregate amount of ₱13,331,703.25 did not coincide with the
    Certified List of Delinquent Real Properties of the Municipality as of December 31,
    2021 totaling ₱1,641,857.02, thus, the accuracy of the accounts and the
    corresponding deferred income accounts could not be relied upon.

    We recommended that Management:

    a. Require the Municipal Assessor to update the Report on Real Property


    Assessment and copy thereof be furnished to the Municipal Treasurer to update
    the RPTAR;

    b. Instruct the Municipal Treasurer to furnish the Municipal Accountant a copy of


    the updated RPTAR to be used for reconciliation of RPT and SET receivables
    presented in the financial statements;

    c. Direct the Municipal Accountant and Municipal Treasurer to reconcile the


    difference noted, and the result of which be the basis of the Municipal
    Accountant to prepare adjusting journal entries to correct the balances of RPT
    and SET Receivables and its corresponding deferred income accounts; and

    d. Require the Municipal Treasurer to revise and update his report on Certified
    List of Tax Delinquencies based on the result of reconciliation with the
    Accounting Office to reflect the actual amount for transparency.

    2. Disposed properties of the Municipalities through public auction were not


    derecognized from the books of accounts which is not in accordance with Section
    82 of IPSAS 17, hence, overstated the balances of PPE and equity accounts
    presented in the financial statements as at December 31, 2021.

    We recommended that Management direct the Municipal Accountant to determine


    the amount to be derecognized and immediately drop from the books of accounts
    to present the accurate balances of PPE and equity accounts in the financial
    statements.

    3. Construction in Progress (CIP) account was overstated by ₱5,867,411.68 due to


    non-transfer of completed projects to the appropriate Property, Plant and
    Equipment (PPE) accounts and error in recording of progress payments also

    iii
    resulted in the understatement of the affected PPE accounts amounting to
    ₱6,584,121.19 and Accounts Payable (AP) account by ₱716,709.51. Likewise,
    non-recognition of completed project amounting to ₱2,075,514.33 resulted in the
    understatement of PPE and AP accounts by the same amount.

    We recommended that Management:

    a. Instruct the Municipal Accountant to prepare adjusting and correcting entries


    on the aforementioned transactions to reflect the correct balances of the affected
    accounts as at December 31, 2021;

    b. Direct the Municipal Engineer to furnish the Municipal Accountant of the


    Quarterly Reports on Government PPAs to inform the Municipal Accountant
    of the existence and status of work accomplished of all on-going infrastructure
    projects;

    c. Instruct the Municipal Accountant to thoroughly record the financial


    transactions in the accounting records to present correct balances of accounts to
    be presented in the financial statements; and

    d. Require the Municipal Accountant to ensure that all on-going infrastructure


    projects are recognized as CIP and that all completed infrastructure projects are
    recognized in the appropriate PPE accounts.

    G. STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT


    RECOMMENDATIONS

    Of the 42 audit recommendations embodied in the 2020 Annual Audit Report


    (AAR), 15 were implemented and 27 were not implemented. In view of their
    significant effects in the financial statements and operations of the agency, the
    unimplemented recommendations were reiterated in this report.

    H. STATUS OF SETTLEMENT OF AUDIT SUSPENSIONS, DISALLOWANCES


    AND CHARGES

    As of December 31, 2021, the suspensions, disallowances and charges of the


    Municipality have zero balances.

    Issuances for
    Balance, Balance,
    CY 2021
    Notices January 1, 2021 December 31, 2021
    NS/ND/NC NSSDC
    (₱) (₱)
    (₱) (₱)
    Suspensions - - - -
    Disallowances - - - -
    Charges - - - -
    Total - - - -

    iv

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