Isabel2022 Audit Report

Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. VIII
ANNUAL AUDIT REPORT
On The
MUNICIPALITY OF ISABEL
Province of Leyte
For the Year Ended December 31, 2022

COMMISSION ON AUDIT
LGS C - Leyte II & Biliran Provinces
Office of the Supervising Auditor
New City Hall, Ormoc City
June 27, 2023
Hon. EDGARDO C. CORDEÑO

Mayor
Province of Leyte
Municipality of Isabel
Sir:
Pursuant to Section 2, Article IX-D of the Constitution of the Republic of the

Philippines and Section 43(2) of Presidential Decree No. 1445, otherwise known as the
“Government Auditing Code of the Philippines,” and in line with this Commission’s efforts
toward informing management on how fiscal responsibility had been discharged, we are
pleased to transmit the report of our Auditors on the audit of the accounts and operations of the
Municipality of Isabel, Leyte for the year ended December 31, 2022.
The audit was conducted to ascertain the propriety of financial transactions and
compliance of the Local Government Unit (LGU) 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 rendered 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 audit observations and recommendations contained in Part II and
those which remain unimplemented as shown in Part III of the attached report be appropriately
acted upon and we will appreciate being informed of the actions taken thereon by submitting
the duly accomplished Agency Action Plan and Status of Implementation (AAPSI) form,
within sixty days upon receipt hereof.
We acknowledge the cooperation and support extended to our Audit Team during the
audit.
Very truly yours,
For the Commission on Audit:
By:
SANTIAGO P. SEÑASE
State Auditor IV
OIC- Supervising Auditor
Copy Furnished:
The Regional Director, DILG, Region VIII, Tacloban City
The Regional Director, BLGF, Region VIII, Tacloban City
COMMISSION ON AUDIT
LGS C - Leyte II & Biliran Provinces
Office of the Supervising Auditor
New City Hall, Ormoc City
June 27, 2023
The Honorable Presiding Officer

and Members of the Sangguniang Bayan
Municipality of Isabel
Province of Leyte
Sirs/Mesdames:
Pursuant to Section 2, Article IX-D of the Constitution of the Republic of the

Philippines and Section 43(2) of Presidential Decree No. 1445, otherwise known as the
“Government Auditing Code of the Philippines,” and in line with this Commission’s efforts
toward informing management on how fiscal responsibility had been discharged, we are
pleased to transmit the report of our Auditors on the audit of the accounts and operations
of the Municipality of Isabel, Leyte for the year ended December 31, 2022.
The audit was conducted to ascertain the propriety of financial transactions and
compliance of the Local Government Unit (LGU) 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 rendered 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.
In our transmittal of even date, we requested the Local Chief Executive to act on
the recommendations contained in the report and to inform this Commission through our
Auditor of the action (s) thereon within sixty days from receipt hereof.
We acknowledge the cooperation and support extended to the Audit Team during the
audit.
Very truly yours,
For the Commission on Audit:
By:
SANTIAGO P. SEÑASE
State Auditor IV
OIC- Supervising Auditor
Copy Furnished:
The Regional Director, DILG, Region VIII, Tacloban City
The Regional Director, BLGF, Region VIII, Tacloban City
EXECUTIVE SUMMARY
Introduction
The Municipality of Isabel is a 1st class municipality in the Province of Leyte,

composed of 24 barangays. The municipal government is composed of 22 operating
departments manned by 133 regular personnel, 12 elected officials, 3 co-terminus, 2
consultants, 2 honorarium based, 9 casuals, 13 contract of service and 377 job order personnel
as of December 31, 2022.
The Municipal Government of Isabel is headed by Mayor Edgardo C. Cordeño and

together with the legislative body composed of eight Sangguniang Bayan Members, aims to
implement programs and projects consistent with its vision of building a better Municipality
for its constituents.
An audit was conducted on the accounts and operations of the Municipality for Isabel
covering transaction from January 01 to December 31, 2022 with particular emphasis on the
audit thrusts required in COA Local Government Sector Unnumbered Memo dated September
14, 2022, which include, among others, Cash and Cash Equivalents, Property, Plant and
Equipment (PPEs) and Financial Liabilities. The audit also covered review of the LGUs
compliance with pertinent provisions on the utilization of the 20% Development Fund and
Local Disaster Risk Reduction and Management Fund, Fund Transfers received by the
Municipality, COVID-19 Vaccination Program, Grants and Donations, and other revenue and
expense accounts.
The audit was conducted to ascertain the propriety of financial transactions, the
accuracy of financial records and reports as well as compliance of the agency with prescribed
rules and regulations. It was also made to ascertain whether the programs as envisioned were
attained in an economical, efficient and effective manner. The audit was conducted in
accordance with International Public Sector Standards on Auditing (IPSSA) that includes
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.
Financial Highlights
The total assets, liabilities, equity, income and expenses for calendar year 2022 as
compared with CY 2021 of the Municipality of Isabel, Leyte, are as follows:
Particulars 2022 2021

Assets ₱ 696,349,681.65 ₱ 686,195,987.54
Liabilities 430,043,521.30 479,965,506.41
Equity 266,306,160.35 206,230,481.13
Income 267,164,100.08 182,302,395.92
Expenses 209,902,508.46 228,885,610.47
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The appropriations, allotments and obligations of the LGU for calendar year 2022 as
compared with CY 2021, including funds received from national government agencies and
funds transferred to other LGUs are as follows:
Particulars 2022 2021

Appropriations ₱ 526,359,216.24 ₱ 262,931,336.50
Allotments 526,359,216.24 262,931,336.50
Obligations 224,233,602.75 213,757,275.94
Funds Received from NGAs 12,869,805.87 11,000,000.00
Funds Transferred to Other 0.00 0.00
LGUs
Independent Auditor’s Report on the Financial Statements
The Auditor rendered a qualified opinion on the combined financial statements of the
Municipality of Isabel, Leyte for the year ended 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
1. Deficiencies were noted in the establishment and keeping of accounts of Real

Property Tax (RPT) and Special Education Tax (SET) Receivables amounting to
₱19,597,979.87 and ₱19,601,300.04, thus, the reported balances of the said
accounts were not fairly stated in the Financial Statements, as well as, impeding
transparency and accountability, which deprived its constituents the right to
information. Meanwhile, the reciprocal accounts for Receivables and Deferred
Credits of Real Property Tax have a variance due to erroneous accounting entries,
resulting in an understatement of Deferred Credit by ₱402,527.74.
We recommended that the Municipal Mayor require the:
a) Municipal Accountant to (i) investigate and expedite substantiation of noted

difference between the recorded RPT Receivable and SET Receivable; (ii) prepare
the necessary adjusting entries to correct the balances RPT Receivable and SET
Receivable account duly supported with documents; and (iii) ensure that the
recorded Receivable reconcile with the records maintained by the MTO and
Assessor’s Office.
b) Municipal Treasurer to (i) Submit to the Municipal Accountant, at the beginning of
the year, a duly certified list showing the name of taxpayers and the amount due and
collectible for the year based on the updated Taxpayer’s index card; (ii) Update the
Taxpayer’s Index Card, and reconcile the same with the records of the Municipal
Assessor; (iii) prepare a certified list of all real property tax delinquencies which
remained uncollected or unpaid for at least one (1) year including reasons for such
non-collection; and (iv) post a notice of the delinquency at the main entrance of the
provincial municipal hall in a publicly accessible and submit such list to the
Sangguniang bayan (SB) on or before December 31 of the year immediately
succeeding the year in which the delinquencies were incurred, and request for
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assistance from the SB in the enforcement of the remedies for collection provided
in RA No. 7160.
We further recommended that the Municipal Mayor direct the officials concerned to
implement other tax collection mechanisms and strategies to encourage delinquent
taxpayers to settle their tax liabilities and increase RPT collections of the Municipality.
2. The existence, completeness and valuation of Inventory account balances as of

December 31, 2022 totaling ₱442,509.00 is unreliable due to: a) non-conduct the
mandatory physical count for CY 2022; b) inventory purchases worth
₱20,144,936.95 were directly recorded as expenses; c) non-moving carry-
forwarded inventory balances; and d) non-maintenance of stock card and supply
ledger card, thus, affecting the fair presentation of the Inventory account in the
financial statements, while, inventories were not safeguarded against possible
errors and irregularities which may cause undue losses to the government.
We reiterated the recommendation, with modification, that the Municipal Accountant

stop the practice of recording immediately to expense account the supplies and
materials procured by the municipality. Recognize expense based on the monthly
Report of Supplies and Materials Issued, supported by duly approved RIS.
We also recommended the MGSO create and maintain updated Stock Cards for each
category of supplies with their respective stock numbers. These Stock Cards should
be reconciled with the RPCI at the end of each year. In addition, the Municipal
Accountant should likewise maintain Supplies Ledger Cards for every stock number
and reconcile them with the Stock Cards of the GSO and the RPCI of the Inventory
Committee. Meanwhile, regular reconciliation of records of both offices is necessary.
Lastly, we recommended that the Municipal Mayor centralize the inventory system,
stockpile manage by the MGSO, if warranted, or require all department heads to
manage the inventories under their custody and prepare the necessary documents to
account for regular issuances of these items.
3. The existence, completeness, valuation and accuracy of the balance of the

Property, Plant and Equipment amounting to ₱577,431,803.63 or 82.92% of the
Total Assets as at yearend is unreliable due to various errors and deficiencies
noted, thus, affecting the fair presentation of the Municipality’s PPE account in
the financial statements.
We recommended that the Municipal Mayor:
a. instruct the Inventory Committee to (i) conduct a comprehensive physical inventory

of PPE owned by the Municipality, identifying the proper classification, individual
identification, status of serviceability, accountability and location thereof; (ii)
prepare and submit a complete RPCPPE to the Municipal Accountant not later than
January 31 of each year, copy furnish the Audit Team; and (iii) prepare and submit
IIRUP together with its supporting documents for disposal of unserviceable
properties;
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b. require the Municipal Accountant to (i) expedite substantiation of recorded
unidentified PPE items based on the result of inventory count as recommended
above; (ii) drop from the PPE account the identified items below the ₱15,000.00
threshold totaling ₱717,242.43; (iv) initiate the proper turn-over of the completed
projects to the respective Barangay-Recipients supported with the properly
accomplished turn-over documents, and effect adjustments in the books; and (v)
maintain and update PPE Ledger Cards for each category of assets and Real
Property Ledger Cards for land; and
c. direct the General Services Officer to take charge in setting up and updating of
Property Cards for proper monitoring, control and accountability of purchased/
acquired and issued PPEs.
Lastly, we recommended that the Municipality exhaust possible remedy to reconcile

the balances of the account and effect the necessary adjustments, as warranted, and
avail the one-time cleansing of the PPE Account and strictly adhere with the provisions
of COA Circular No. 2020-006 dated January 31, 2020 to establish PPE balances that
are verifiable as to existence, condition and accountability.
4. The Account Payable balance of ₱75,029,441.78 as of December 31, 2022 is

overstated by ₱20,987,830.08 due to: a) uncorrected prior years’ discrepancies
with overstatement of ₱19,101,241.68; and b) current year’s deficiencies
overstating the payables account and the corresponding expense account by
₱1,886,588.40 contrary to Section 4 of PD 1445, Section 350 of RA 7160, and
International Public Sector Accounting Standard (IPSAS) 1 and 19, thereby
the accounts in the financial statements are not fairly presented.
We reiterated the recommendation, with modification, that the Municipal

Accountant should:
a. Require all End-User Units to submit all documents for the procurement of
goods and services charged from the current year appropriation, the obligations
of the suppliers having been duly fulfilled, based on the contract, during the
current year, to facilitate the recording of the expenses in the books of accounts
of the municipality;
b. prepare adjusting entry to drop from Accounts Payable account the
unsubstantiated claims as well as to effect corrections on the erroneously
recorded transactions;
c. Record only the accounts payable which were obligated and have complete
supporting documents.
5. The Due to National Government Agencies (NGAs) account totaling

₱14,800,365.39 as of December 31, 2022 includes several unsubstantiated amounts
and/or long outstanding balances, thus affecting the fair presentation of the
account in the year-end Financial Statements, and exposed the said funds to
possible misapplication.
We recommend that the Municipal Accountant:
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a. conduct verification, analysis, and validation of the balances of the Due to NGAs
accounts and effect the necessary adjustments, if warranted, validate status of
programs, projects and activities for which funds were received and maintain
complete records of the same;
b. exhaust possible remedy to reconcile the balances of the account and effect the
necessary adjustments, as warranted; and
c. make representations with identified source agencies for the return of unutilized
balances.
Henceforth, we recommended that the Municipal Mayor mandate the LGU officials
designated as Project-in-Charge to:
a. implement immediately the projects in accordance with the timeframe provided for
in the MOA to maximize the beneficial use of government projects/program and the
eventual return of unused funds, if any;
b. prepare the corresponding reports for each of the completed projects and submit the
same to the Accountant within one month from completion; and
c. report to the Municipal Mayor any project/program which cannot be immediately
implemented for proper disposition or referral to the Source Agency/ies.
Summary of Suspensions, Disallowances and Charges
The LGU has unsettled disallowances and suspensions totaling ₱1,138,987.85 and
₱1,540.771.60, respectively. While no unsettled charges as of December 31, 2022.
Status of Implementation of Prior Years’ Unimplemented Audit Recommendations
Of the 102 audit recommendations embodied in CY 2021 and prior years’ Annual
Audit Reports, only 26 were fully implemented while 76 remained unimplemented.
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TABLE OF CONTENTS
Page
Part I Audited Financial Statements
• Independent Auditor’s Report 1

• Statement of Management’s Responsibility for Financial 4
Statements
• Combined Statement of Financial Position 5
• Combined Statement Financial Performance 6
• Combined Statement of Changes in Net Assets/Equity 7
• Combined Statement of Cash Flows 8
• Statement of Comparison of Budget and Actual Amounts 9
• Notes to Combined Financial Statements 11
Part II Audit Observations and Recommendation 25
Part III Status of Implementation of Prior Years’ Unimplemented 121

Audit Recommendations
Part IV Appendices 156
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PART I
AUDITED FINANCIAL STATEMENTS
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COMMISSION ON AUDIT
Regional Office No. VIII
Candahug, Palo, Leyte
INDEPENDENT AUDITOR’S REPORT
Hon. EDGARDO C. CORDEÑO

Municipal Mayor
Isabel, Leyte
Qualified Opinion
We have audited the financial statements of the Municipality of Isabel, Province of Leyte,
which comprise the Statement of Financial Position as of December 31, 2022, and the
Statement 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 year
then ended, and notes to the financial statements including a summary of significant
accounting policies.
In our opinion, except for the effects of the matters described in the Basis for Qualified
Opinion paragraph, the accompanying financial statements present fairly, in all material
respects, the financial position of the Municipality of Isabel, Leyte as at December 31, 2022,
and its financial performance, its cash flows and its comparison of budget and actual
amounts for the year then ended in accordance with International Public Sector Accounting
Standards (IPSASs).
Basis for Qualified Opinion
The Real Property Tax (RPT) is understated by ₱696,393.28 due to RPT advance payment
erroneously recognized as a collection of the current year, while the Deferred Credits of
Real Property Tax is also understated by ₱402,527.74 due to erroneous accounting entries.
Further, the Inventory accounts totaling ₱442,509.00 is unreliable due to: a) failure to
conduct the mandatory physical count for CY 2022; b) inventory purchases worth
₱20,144,936.95 were directly recorded as expenses, and c) non-moving carry-forwarded
inventory balances. While, the Property, Plant and Equipment (PPE) accounts amounting
to ₱577,431,803.63 as of December 31, 2022 is unreliable due to a) non-conduct of complete
Physical Count of PPE for CY 2022 resulting to a variance of ₱77,929,444.19 between the
accounting records and Report of Physical Count of PPE (RPCPPE), b) undisposed
Unserviceable PPEs amounting at least ₱2,263,246.4 still carried at the books, c)
Approximately ₱55 million of unidentified PPE items, d) inclusion of items costing below
the capitalization threshold of ₱15,000.00 totaling ₱717,242.43, f) Inclusion of properties
costing ₱98,674,311.27 held for use by Barangay Local Governments and f) non-provis ion
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for Depreciation expense of Road Networks, Machinery and Books accounts. Moreover,
the Accounts Payable is overstated by ₱22,922,324.17 due to uncorrected prior years’
discrepancies and current year’s deficiencies. The Due to NGAs also includes several
unsubstantiated amounts and/or long outstanding balances amounting to ₱2,245,010.25.
And lastly, there were erroneous entries of cash advances’ liquidation resulting to the
understatement of Advances for Payroll account by ₱1,778,507.97. Based on the foregoing,
these noted errors and deficiencies affects the fair presentation of the accounts reported in
the Financial Statement.
We conducted our audit in accordance with International Standards of Supreme Audit

Institutions (ISSAIs). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
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. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Key Audit Matters
Except for the matter described in the Basis for Qualified Opinion section, we have
determined that there are no other key audit matters to communicate in our report.
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 IPSASs 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 local government unit’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.
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PART II
AUDIT OBSERVATIONS AND RECOMMENDATIONS
A. Financial Audit
Doubtful RPT and SET Receivables balances
1. Deficiencies were noted in the establishment and keeping of accounts of Real

Property Tax (RPT) and Special Education Tax (SET) Receivables amounting
to ₱19,597,979.87 and ₱19,601,300.04, contrary to the provisions of Presidential
Decree (PD) No. 1445, Republic Act (RA) No. 7160 and the Manual on New
Government Accounting System (MNGAS) for LGUs , thus, the reported
balances of the said accounts were not fairly stated in the Financial Statements,
as well as, impeding transparency and accountability, which de prived its
constituents the right to information. Meanwhile, the reciprocal accounts for
Receivables and Deferred Credits of Real Property Tax have a variance due to
erroneous accounting entries, resulting in an understatement of Deferred
Credit by ₱402,527.74.
1.1. Pertinent provisions of Republic Act (RA) No. 7160, otherwise known as “The Local
Government Code of the Philippines” provides in:
Section 247. Collection of Tax. – The collection of the real property tax with
interest thereon and related expenses, and the enforcement of the remedies
provided for in this Title or any applicable laws, shall be the responsibility if
the city or municipal treasurer concerned. The city or municipal treasurer
may deputize the Barangay treasurer to collect all taxes on real property
located in the Barangay: Provided, That the Barangay treasurer is properly
bonded for the purpose: Provided, further, That the premium on the bond
shall be paid by the city or municipal government concerned. (Emphasis
ours)
Section 254. Notice of Delinquency in the Payment of Real Property Tax. –

(a) When the real property tax or any other tax imposed under this Title
becomes delinquent, the provincial, city or municipal treasurer shall
immediately cause a notice of the delinquency to be posted at the main
entrance of the provincial capitol, or city or municipal hall in a publicly
accessible and conspicuous place in each Barangay of the local government
unit concerned. The notice of delinquency shall also be published once a
week for two (2) consecutive weeks, in a newspaper of general circulation in
the province, city or municipality.
(b) Such notice shall specify the date upon which the tax became delinquent
and shall state that personal property may be destrained to effect
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payment. It shall likewise state that at any time before the destraint of
personal property, payment of the tax with surcharges, interests and
penalties may be made in accordance with the next following Section,
and unless the tax, surcharges and penalties are paid before the
expiration of the year for which the tax is due except when the notice
of assessment or special levy is contested administratively or judicially
pursuant to the provisions of Chapter 3, Title II, Book II of this Code,
the delinquent real property will be sold at public auction, and the title
to the property will be vested in the purchaser, subject, however, to the
right of the delinquent owner of the property or any person having legal
interest therein to redeem the property within one (1) year from the date
of sale.
Section 269. Treasurer to Certify Delinquencies Remaining Uncollected. –

The provincial, city or municipal treasurer or their deputies shall prepare a
certified list of all real property tax delinquencies which remained
uncollected or unpaid for at least one (1) year in his jurisdiction, and a
statement of the reason or reasons for such non-collection or non-payment,
and shall submit the same to the Sanggunian concerned on or before
December thirty-first (31st) of the year immediately succeeding the year in
which the delinquencies were incurred, with a request for assistance in the
enforcement of the remedies for collection provided herein.
1.2. On the other hand, Section 472 (b), Article III of the Code partly provides:
(b) The assessor shall take charge of the assessor's office, perform the duties
provided under Book II of this Code, and shall:
(1) Ensure that all laws and policies governing the appraisal and
assessment of real properties for taxation purposes are properly
executed;
(2) Initiate, review, and recommend changes in policies and objectives,
plans and programs, techniques, procedures and practices in the
valuation and assessment of real properties for taxation purposes;
(3) Establish a systematic method of real property assessment;
(4) Install and maintain a real property identification and accounting
system;
(5) Prepare, install and maintain a system of tax mapping, showing
graphically all property subject to assessment and gather all data
concerning the same;
(6) Conduct frequent physical surveys to verify and determine whether
all real property within the province are properly listed in the
assessment rolls
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1.3. While, Sections 111, 123 and 124 of Presidential Decree (PD) No. 1445 provide that:
Section 111. Keeping of Accounts.
1. The accounts of an agency shall be kept in such detail as is

necessary to meet the needs of the agency and at the same time be
adequate to furnish the information needed by fiscal or control
agencies of the government.
2. The highest standards of honesty, objectivity and consistency

shall be observed in the keeping of accounts to safeguard against
inaccurate or misleading information.
Section 123. Definition of Internal Control. Internal control is the plan of

organization and all the coordinate methods and measures adopted within an
organization or agency to safeguard its assets, check the accuracy and
reliability of its accounting data, and encourage adherence to prescribed
managerial policies.
Section 124. Installation. It shall be the direct responsibility of the agency

head to install, implement, and monitor a sound system of internal control.
1.4. Lastly, Section 20 of the Manual on New Government Accounting System

(MNGAS) for LGU provides the basis and procedures of recording Real Property
Tax/Special Education Tax:
Sec. 20. Basis of Recording Real Property Tax/Special Education Tax .

– Real Property Tax Receivables/Special Education Tax Receivables shall be
established at the beginning of the year based on Real Property Tax Account
Register/Taxpayer’s index card. At the beginning of the year, the Treasurer
shall furnish the Chief Accountant of a duly certified list showing the name
of taxpayers and the amount due and collectible for the year. Based on the
list, the Chief Accountant shall draw a Journal Entry Voucher (JEV) to record
the debit to Real Property Tax Receivable/Special Education Tax Receivable
and crediting to Deferred Real Property Tax Income/Deferred Special
Education Tax Income.
1.5 As of December 31, 2022, the Financial Statements of the Municipality of Isabel
reported RPT and SET Receivable balances amounting to ₱19,597,979.87 and
₱19,601,300.04, respectively. However, the audit revealed various deficiencies in
the establishment and keeping of accounts of RPT/SET Receivables such as:
(a) Absence of certified list of taxpayers and noted difference in the amount due
upon establishing CY 2022 receivables;
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1.5.1 Verification of the Real Property Tax General Ledger for CY 2022 disclosed
the amount of ₱29,853,070.40 recorded on February 2022 to establish/set -up
the RPT and SET Receivables for CY 2022. However, the related Journal
Entry Voucher (JEV) was not supported with a certified list showing the
name of taxpayers and the amount due and collectible for the year prepared
by the Municipal Treasurer instead a report on Collectible Realty Tax for CY
2022 prepared by the Municipal Assessors Office was attached as a basis for
the amount recorded in establishing the collectible for the year.
1.5.2 According to the Municipal Treasurer, she is unaware and unaccustomed to

prepare a certified list showing the name of taxpayers and the amount due
and collectible for year 2022 and submit the same to the Accounting Office
at the beginning of the year. However, the office maintains Real Property
Tax Account Register (RPTAR)/Taxpayer’s index card based on the assessed
value from the Assessor’s Office.
1.5.3 Due to the absence of the aforementioned report from the Municipal
Treasurer, the Audit Team requested the supporting list of the Assessment
Roll furnished by the Municipal Assessor’s Office and made a comparison
with the records in RPTAR. Since the Assessor’s Office main function is to
appraise and assess all real properties within the Municipality as source or
reference in the Real Property Tax Account Register/Taxpayer’s index card
assessed value, thus, the computation of tax collectible should be based on
the latter. However, the Assessor’s Office can only provide the Audit Team
with a real-time Assessment Roll that includes various cancels and additions
after the submission of the report to the Accounting Office. As expected, the
provided report with the total amount did not equate to the total amount of
receivable established for the year. Nevertheless, the sampling comparison
was conducted to RPTAR and Assessment Roll for the identified taxpayer
which revealed that some assessed values exhibited gaps in amount and Tax
Declaration not found in RPTAR. On the other hand, the List of Top 50
Delinquent Taxpayers presented by the Municipal Treasurer matches the
value in the Assessment Roll.
1.5.4 Upon inquiry into the deficiencies noted, the Municipal Treasurer conceded
that reconciliation of the Assessment Roll was made since the last revision,
while, update and/or preparation of individual RPTAR is carried out only
upon payment made by taxpayers.
(b) RPT advance payment erroneously recognized as a collection of RPT

Receivable - ₱696,393.28
1.5.5 During the year, the Municipality has a total RPT gross collection of
₱12,989,124.00, of which ₱11,337,066.52 pertains to the current year,
₱955,664.20 amount paid for prior year and ₱696,393.28 advance payment
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for CY 2023, all were recorded as a deduction of RPT Receivable for CY
2022 and the related income was recognized accordingly.
1.5.6 Meanwhile, RPT Receivable balance in the Financial Statements is

composed of the uncollected tax from prior years and the establishment of
collectibles of the current year, thus, this excludes the RPT of the ensuing
year. Acknowledging the RPT payment for CY2023 as a collection of
receivables in CY 2022 inadvertently misstated the account. Likewise,
recognizing the advance payment as income for the year overstated the
Surplus for CY 2022 by ₱696,393.28. As a consequence, the balances of the
affected accounts as of December 31, 2022 were not fairly presented.
(c) Difference between RPT receivables and SET receivables amounting to

₱3,320.17
1.5.7 Aside from the 1% RPT imposed on real properties within the Municipalit y’s
jurisdiction, the Local Government Code also allowed the Municipality to
levy and collect an additional annual tax of one percent (1%) on the assessed
value of real property which shall exclusively accrue to the Special Education
Fund (SEF). Since both RPT and SET are imposed upon the same object
with the same rate at the same time and equally share in the collection thereof,
the balances of RPT and SET Receivables should naturally be equal.
However, the books of account show RPT and SET Receivable balances of
₱19,597,979.87 and ₱19,601,300.04, respectively, with a difference of
₱3,320.17. Scrutiny of the General Ledger for CY 2022 and prior years’
Annual Audit Reports (AARs) disclosed that the difference existed since CY
2015. Details are presented in Table 1.
Table 1. Comparison between RPT and SET Receivable year end balances
Statement of Financial Position
year end balances
Reference Difference
RPT SET
Receivable Receivable
Annual Audit Report ₱ 6,039,755.84 ₱ 6,042,726.52 ₱ (2,970.68)
(AAR) CY 2015
ARR CY 2016 9,443,423.62 9,446,394.36 (2,970.74
ARR CY 2017 13,129,504.92 13,132,475.65 -2,970.73
ARR CY 2018 15,547,596.74 16,476,592.47 -928,995.73
ARR CY 2019 12,056,692.53 12,059,663.27 -2,970.74
ARR CY 2020 15,392,167.39 15,395,138.13 -2,970.74
ARR CY 2021 17,660,568.67 17,668,787.24 -8,218.57
Financial Statements 19,597,979.87 19,601,300.04 -3,320.17
CY 2022
1.5.8 The Audit Team inquired from the Municipal Accountant for the existence
of such discrepancy from CY 2015 since there was no disclosure and/or
related information reported in the Financial Statement attached to the
29
Annual Audit Report. As the keeper of the accounts of the municipality, the
Municipal Accountant is expected to easily identify the difference
considering that the two Receivable accounts are reciprocal, and that any
transaction/adjustment in RPT receivables should also reflect in the SET
receivables account. However, the Municipal Accountant could not pinpoint
or justify the circumstance of the difference due to the absence of any
financial analysis or comparison of accounts during the Financial Statement
preparation.
(d) List of Delinquent Taxpayers not posted to a conspicuous place
1.5.9 The Audit Team requested the submission of the List of Delinquent
Taxpayers as of December 31, 2022 to confirm the reconciliation of records
for the actual collectibles as against the RPT/SET Receivable balances
recorded in the books, and the Municipal Treasurer was able to provide a
copy of the Top 50 Real Property Tax Delinquent Taxpayers as required by
the Province of Leyte for submission, however, they failed to prepare the
complete List of Delinquent Taxpayer as required by Section 269 of RA
7160. Meanwhile, we noticed that this report was not posted in the Full
Disclosure Board or in a publicly accessible and conspicuous place. As a
consequence, the Municipality and/or offices and its constituents were not
fully knowledgeable of the struggle in collecting delinquent receivables.
1.5.10 The aforementioned deficiencies in the establishment and keeping of accounts

show that the RPT and SET collectibles were not properly substantiated,
monitored, and controlled, thus, the RPT and SET receivables balances as of
yearend is unreliable, while, the non-posting of the List of Delinquent Tax
Payers impede transparency and accountability, depriving its constituents the
right to information.
1.6 Further review of the account balances in the General Fund and Special Education
Fund for the year ended December 31, 2022 showed the following balances of the
RPT Receivable, SET Receivable and Deferred Credits - RPT/SET accounts:
General Fund CY 2022

Real Property Tax Receivable ₱ 19,597,979.87
Deferred Credits - RPT 19,195,452.13
Variance ₱ 402,527.74
Special Education Fund (SEF)

Special Education Tax Receivable ₱ 19,601,300.04
Deferred Credits - SET 19,601,300.04
Variance ₱ 0.00
Net Effect ₱ 402,527.74
1.7 As presented, the RPT/SET Receivable and Deferred Credits-RPT/SET were

recorded to recognize collectibles for RPT at the beginning of the year. These are
30
reciprocal accounts which means that any addition/deduction in one account should
also have a corresponding addition/deduction on the other account. Thus, the
balances should be the same and equal at all times except when receipt of advance
payment of basic RPT and additional levy on the assessed value of real property is
made and the corresponding deferred credits liability account is credited. However,
instead of reflecting the same balances, RPT Receivables and Deferred Credits –
RPT in the General Fund displayed a variance in its balances of ₱402,527.74.
1.8 Perusal of the accounting records disclosed that the variance was due to the
erroneous amount recognized and/or recorded for the Deferred Credit-RPT account,
the amount deducted to the account corresponds to the net amount of discounts and
penalties from the total RPT collections, instead of the gross amount pertaining to
basic tax paid. Nevertheless, at the end of the year, they made adjustments to
properly present the balance for Deferred Credit-RPT account, however, the
adjustment was short of ₱402,527.74. As a result, the fair presentation of the
foregoing account was not fairly stated in the Financial Statement as of yearend.
1.9 We recommended that the Municipal Mayor require the:
a) Municipal Accountant to (i) investigate and expedite substantiation of noted

difference between the recorded RPT Receivable and SET Receivable; (ii)
prepare the necessary adjusting entries to correct the balances RPT/SET
Receivable and Deferred Credit accounts duly supported with documents;
and (iii) ensure that the recorded Receivable reconcile with the records
maintained by the MTO and Assessor’s Office.
b) Municipal Treasurer to (i) Submit to the Municipal Accountant, at the

beginning of the year, a duly certified list showing the name of taxpayers and
the amount due and collectible for the year based on the updated Taxpayer’s
index card; (ii) Update the Taxpayer’s Index Card, and reconcile the same
with the records of the Municipal Assessor; (iii) prepare a certified list of all
real property tax delinquencies which remained uncollected or unpaid for at
least one (1) year; and (iv) post a notice of the delinquency at the main
entrance of the provincial municipal hall in a publicly accessible .
1.10 We further recommended that the Municipal Mayor direct the officials
concerned to implement other tax collection mechanisms and strategies to
encourage delinquent taxpayers to settle their tax liabilities and increase RPT
collections of the Municipality.
1.11 During the exit conference and per written AOM reply, the Municipal Treasurer
explained that records were manually maintained, hence, summary of records was
not prepared though they are confident that discrepancies will be addressed soon as
they are planning to avail the iTax system but for the meantime, they have exerted
effort to currently utilized the MS excel for records to be able to provide the
necessary reports and promised to reconcile the RPTAR with the records of the
31
Municipal Assessor’s Office to arrive at an accurate RPT and promptly submit the
required reports to the Municipal Accountant. Meanwhile, the Municipal
Accountant was able to identify some of the discrepancies and will immediately
draw the necessary adjusting entries, as for the other deficiencies, they will conduct
verification and tracing of records. Further, the Municipal Mayor also explained that
they cannot implement measures to enforce collection without any directives from
the Province of Leyte, while records of delinquency may not be accurate as some
taxpayers prefer to pay directly to the province.
1.12 As a rejoinder, the Audit Team added that records should be accurately and timely
updated, RPTAR should be up-to-date based on the RPT collections of the
Municipality incorporated with the paid RPT directly to the Province of Leyte.
Inaccurate Inventory account
2. The existence, completeness and valuation of Inventory account balances as of

December 31, 2022 totaling ₱442,509.00 is unreliable due to: a) non-conduct the
mandatory physical count for CY 2022; b) inventory purchases worth
₱20,144,936.95 were directly recorded as expenses; c) non-moving carry-
forwarded inventory balances; and d) non-maintenance of stock card and
supply ledger card, contrary to Section 111 of P.D. 1445, Paragraph 44 of the
International Public Sector Accounting Standards (IPSAS 12) and pertinent
provisions of the Manual on National Government Accounting System
(MNGAS) for LGUs, Volumes 1 and 2, thus, affecting the fair presentation of
the Inventory account in the financial statements, while, inventories were not
safeguarded against possible errors and irregularities which may cause undue
losses to the government.
2.1 Section 111 of PD 1445 provides the following guidelines on the keeping of
accounts:
(1) The accounts of an agency shall be kept in such detail as is necessary to meet
the needs of the agency and at the same time be adequate to furnish the
information needed by fiscal or control agencies of the government.
(2) The highest standards of honesty, objectivity and consistency shall be
observed in the keeping of accounts to safeguard against inaccurate or
misleading information.
2.2 Paragraph 44 of IPSAS 12 of the Philippine Public Sector Accounting Standards

(PPSAS) Vol. 1 – Inventories states:
Recognition as an Expense
44. When inventories are sold, exchanged, or distributed, the carrying amount
of those inventories shall be recognized as an expense in the period in
32
which the related revenue is recognized. If there is no related revenue, the
expense is recognized when the goods are distributed or the related service
is rendered. Xxx
2.3 Pertinent provisions of the MNGAS for use of LGUs also provides:
Sec. 51. Purchase of Supplies. – Purchase of supplies and materials for stock
regardless of whether or not they are consumed within the accounting period
shall be recorded as assets using the Inventory account following the Perpetual
Inventory Method. xxx
Sec. 114. Perpetual Inventory Method. – Purchase of supplies and materials

for stock, regardless of whether or not they are consumed within the accounting
period, shall be recorded as inventory following the perpetual inventory method.
Under the perpetual inventory method, an inventory control account is
maintained in the General Ledger on a current basis. In addition, detailed
inventory records are maintained for each inventory item.
Regular purchases shall be coursed thru the inventory account and

issuances thereof shall be recorded as they take place, except those purchased
out of the petty cash fund which shall be for immediate use and for stock in which
case shall be charged immediately to the appropriate expense accounts.
The Chief Accountant shall maintain the perpetual inventory records

comprising of Supplies Ledger Cards (SLC) for each commodity/stock,
Property, Plant and Equipment Ledger Card (PPELC) for each category of plant,
property and equipment and Work, Other Animals and Breeding Stocks Ledger
Card (WOABSLC) for each type of livestock. Such ledger cards shall contain
the details of the property, plant and equipment and livestock account in the
inventory control account in the general ledger.
The General Services Officer or the Municipal Treasurer, as the case

maybe shall likewise maintain stock cards and property cards for supplies;
property, plant and equipment; and work animals in their custody to account for
the receipt and disposition of the same. The balance per stock card/property cards
should always reconcile with the ledger cards of the accounting unit. They should
also reconcile with other property records like Acknowledgement Receipt for
Equipment (ARE). xxx
Sec. 119. Property Records to be Maintained. – The General Services Officer

or the Local Treasurer, as the case maybe, shall number each type of supplies
and maintain Stock Cards per stock number. He shall likewise maintain Property
Cards per category of property, plant and equipment.
Deliveries of supplies or property shall be immediately recorded in the

property records on the basis of the AIR and other supporting documents. The
AIR and other supporting documents shall be forwarded to the Chief Accountant
33
for the preparation of the DV and recording of deliveries in the appropriate ledger
cards.
Sec. 120. Recording of Deliveries of Supplies or Property in the Books of

Accounts. – The Chief Accountant shall maintain Supplies Ledger Cards per
stock number; Property, Plant and Equipment Ledger Cards for each category of
assets; and Real Property Ledger Cards for land.
Upon receipt of the AIR and other supporting documents, the Chief
Accountant shall record the deliveries in the appropriate ledger cards. Upon
completion of the disbursement process pertaining thereto the Chief Accountant
shall prepare the JEV taking up the in the books the procurement made.
Thereafter, the Chief Accountant shall reconcile the JEV with the appropriate
ledger cards.
Sec. 121. Reporting on Issuance of Supplies/materials. – The General

Services Officer or the Local Treasurer, as the case maybe, shall consolidate
weekly the RIS for which supplies and materials were issued using the Summary
of Supplies and Materials Issued (SSMI). The SSMI together with the original
copy of the RIS shall be submitted to the Chief Accountant, who shall compute
cost of supplies issued and ending inventory using the moving average method.
Based on the SSMI, a JEV shall be prepared to record the expenditures using
appropriate expenditure accounts. xxx
Sec. 124. Inventory of Supplies or Property. – The local chief executive shall
require periodic physical inventory of supplies or property. Physical count of
inventory items by type shall be conducted semestrally and reported in the Report
of the Physical Count of Inventories (RPCI). This shall be submitted to the
Auditor concerned not later than July 31 and January 31 of each year for the first
and second semesters, respectively.
Chapter 1 and 2, Volume 2:
xxx
Sec. 11. Supplies Ledger Card (SLC). – The Supplies Ledger Card (Annex
7) is a subsidiary ledger to be maintained by the accounting office for each
type of supplies, crops and other inventory items, to record acquisition,
issuance and disposal. The SLC shall be the basis in filling up the Supplies
Availability Inquiry (SAI).
xxx
Sec. 41. Requisition and Issue Slip (RIS). – The Requisition and Issue Slip
(Annex 33) shall be used to request supplies and materials that are carried in
stock.
34
xxx
Sec. 43. Summary of Supplies and Materials Issued (SSMI). – The

Summary of Supplies and Materials Issued (Annex 35) shall be prepared
weekly by the Supply Officer and shall be used by the Accounting Unit as a
basis in preparing the JEV to record the supplies and materials issued.
Sec. 44. Stock Card (SC). – The Stock Card (Annex 36) shall be used to
record all receipts and issuances of supplies. It shall be maintained by the
Supply and Property Unit for each item in stock.
2.4 As of December 31, 2022, the financial statement of the Municipality of Isabel
reported an Inventory account balance of ₱442,509.00, details are presented in the
following Table.
Table 2: Composition of Inventory account as of December 31, 2022

Balance as of
Inventory Account
December 31, 2022
Inventory Held for Consumption
Office Supplies Inventory ₱ 265,045.00
Medical, Dental and Laboratory Supplies 177,464.00
Inventory
TOTAL ₱ 442,509.00
2.5 Verification of the Inventory accounts as of December 31, 2022 and the inventory
control of the Municipality revealed various deficiencies including drawbacks that
were addressed in the prior year’s audit, however, efforts from the officers and
employees concerned were inadequate, as follows:
a. Non-conduct of Physical Count of Inventories
a.1 The Municipality failed to conduct the mandated semestral physical count
of Inventories, thereby posing difficulty in determining the accuracy and
reliability of the Inventory balance of ₱442,509.00 as reflected in the
financial statements.
a.2 Query with the Municipal General Services Officer (MGSO) disclosed that
they did not conduct physical count of all procured supplies and materials
semi-annually since these were directly released to the requesting office as
the storage area stockpiled unserviceable equipment.
a.3 Conducting a physical inventory count is a crucial step in verifying the

proper custody of assets. Therefore, the Municipality's failure to conduct a
physical count of inventories raises concerns about the accuracy and
existence of the reported balances in the financial statements. This also
35
indicates weaknesses in the internal control of the Municipality, which
could make its assets vulnerable to theft, loss, and wastage.
b. Procurement of supplies and materials outrightly recorded as expense
b.1 The Municipality did not adopt the Perpetual Inventory Method for the
procurement of supplies and materials. This method prescribed that all
regular purchases should be recognized as inventory regardless of whether
or not they are consumed within the accounting period and issuance thereof
shall be recorded as expense. As a result, all supplies and materials
procured in CY 2022 amounting to ₱20,144,936.95 were outrightly
expensed, the aggregate amount per Inventory account presented in Table
3.
Table 3. Procured inventory items in CY 2022 that were outrightly expensed

Expenses Account Amount
Office Supplies Expenses ₱ 4,360,067.85
Accountable Forms Expenses 216,450.00
Medical, Dental and Laboratory Supplies Expenses 1,510,466.93
Fuel, Oil and Lubricants Expenses 8,679,362.09
Other Supplies and Materials Expenses 5,378,590.08
Total ₱ 20,144,936.95
b.2 It should be noted that these commodities are a valuable asset of the agency
necessary in the day-to-day operation which is why the Perpetual Inventory
Method is placed to keep track of the quantity and updates the records
thereof. In the absence of necessary documentation upon issuance or use
of the items and the non-conduct of a periodic physical count, the actual
consumption of inventory items was not appropriately accounted for.
b.3 The Municipal Accountant explained that recognizing supplies and

materials directly as an expense has been the practice ever since, however,
she is committed to implement what is proper and prescribed in the
accounting manual. As a rejoinder, the Annual Audit Report of CY 2021
also discussed and observed the same manner of recognizing Fuel, Oil and
Lubricants, which practice was recommended for discontinuance.
c. non-moving carry-forwarded inventory balances
c.1 Perusal of General Ledger and the available records referring to the
inventory account uncovered inventory balance as of yearend amounting
to ₱442,509.00 were carry-forwarded balances from prior years. It was
found out that Office Supplies Inventory was from 2019, while the Medical,
Dental and Laboratory Supplies Inventory balance was from purchases of
CY 2021, but the physical existence at yearend could not be determined by
36
the officers concerned due to deficiencies noted in paragraph 1.5.a above,
while stock card and supply ledger card were not maintained as discussed
in the succeeding paragraph.
d. Non-maintenance of stock card and supply ledger card
d.1 Upon further examination of the documents and records related to the
procurement of supplies and materials and inventory control, the Audit
Team discovered that neither the General Services Office (GSO) nor the
Accounting Office had maintained the required Stock Card (SC) and
Supply Ledger Card (SLC), respectively. The SC is crucial in supporting
the semi-annual Inventory report prepared by the GSO, while the SLC is
essential for the Accounting Unit to maintain a Subsidiary Ledger for each
type of supply, recording all receipts and issuances.
d.2 In addition, it is necessary to reconcile the inventory of supplies and

materials recorded in the books of accounts with their physical count to
verify their existence. Moreover, maintaining complete and up-to-date
records of these properties through the Stock Card (SC) for the GSO and
Supply Ledger Card (SLC) for the Accounting Office is crucial to support
the General Ledger accounts and confirm the accuracy and validity of the
records.
2.6 In view of the foregoing, the failure to faithfully comply with rules and regulations
in recording, procuring, and handling supplies and materials affected the fair
presentation of the related asset and expense account balances in the Financial
Statement. Likewise, these commodities were not safeguarded against errors,
irregularities, and problems.
2.7 We reiterated the recommendation, with modification, that the Municipal

Accountant stop the practice of recording immediately to expense account the
supplies and materials procured by the municipality. Recognize expense based
on the monthly Report of Supplies and Materials Issued, supported by duly
approved RIS.
2.8 We also recommended the MGSO create and maintain updated Stock Cards
for each category of supplies with their respective stock numbers. These Stock
Cards should be reconciled with the RPCI at the end of each year. In addition,
the Municipal Accountant should likewise maintain Supplies Ledger Cards for
every stock number and reconcile them with the Stock Cards of the GSO and
the RPCI of the Inventory Committee. Meanwhile, regular reconciliation of
records of both offices is necessary.
2.9 Lastly, we recommended that the Municipal Mayor centralize the inventory
system, stockpile manage by the MGSO, if warranted, or require all
37
department heads to manage the inventories under their custody and prepare
the necessary documents to account for regular issuances of these items.
2.10 The Municipal Accountant guaranteed compliance of the audit recommendations as

stated in her AOM reply. On the other hand, during the exit conference, the MGSO
assured actual implementation of the maintenance of Stock Cards and the conduct of
RPCI on the third quarter of CY 2023, while, management and preparation of reports
for inventories will be done and handled by department.
Unreliable Property, Plant and Equipment
3. The existence, completeness, valuation and accuracy of the balance of the

Property, Plant and Equipment amounting to ₱577,431,803.63 or 82.92% of the
Total Assets as at yearend is unreliable due to various errors and deficiencies
noted that are contrary to pertinent provisions of Presidential Decree (P.D.) No.
1445, International Public Sector Accounting Standard (IPSAS) 1 and 17, COA
Circular Nos. 2015-009 and 2020-006, and Chapter 7 of the Manual on New
Governme nt Accounting System (MNGAS) Volume I, thus, affecting the fair
presentation of the Municipality’s PPE account in the financial statements.
3.1 Section 2 of PD 1445 states:
It is the declared policy of the State that all resources of the government shall
be managed, expended or utilized in accordance with law and regulations,
and safeguarded against loss or wastage through illegal or improper
disposition, with a view to ensuring efficiency, economy and effectiveness
in the operations of government. The responsibility to take care that such
policy is faithfully adhered to rests directly with the chief or head of the
government agency concerned.
3.2 Section 79 of PD 1445 also provides:
When government property has become unserviceable for any cause, or is no

longer needed, it shall, upon application of the officer accountable therefor,
be inspected by the head of the agency or his duly authorized representative
in the presence of the auditor concerned and, if found to be valueless or
unsalable, it may be destroyed in their presence. If found to be valuable, it
may be sold at public auction to the highest bidder under the supervision of
the proper committee on award or similar body in the presence of the auditor
concerned or other duly authorized representative of the Commission, after
advertising by printed notice in the Official Gazette, or for not less than three
consecutive days in any newspaper of general circulation, or where the value
of the property does not warrant the expense of publication, by notices posted
for a like period in at least three public places in the locality where the
property is to be sold. In the event that the public auction fails, the property
38
may be sold at a private sale at such price as may be fixed by the same
committee or body concerned and approved by the Commission.
3.3 Section 111 of PD 1445 explicitly states the following guidelines on the keeping of
accounts:
(4) The highest standards of honesty, objectivity and consistency shall be observed
in the keeping of accounts to safeguard against inaccurate or misleading
information.
3.4 Likewise, Paragraph 27 of IPSAS No. 1 on Presentation of Financial Statements

emphasizes that Financial statements shall present fairly the financial position,
financial performance and cash flows of an entity. Fair presentation requires the
faithful representation of the effects of transactions, other events and conditions in
accordance with the definitions and recognition criteria for assets, liabilities, revenue
and expenses set out in IPSASs. The application of IPSASs, with additional
disclosures when necessary, is presumed to result in financial statements that achieve
a fair presentation.
3.5 IPSAS 17 also states that the depreciable amount of an asset shall be allocated on a
systematic basis over its useful life. The depreciation of an asset begins when it is
available for use, i.e., when it is in the location and condition necessary for it to be
capable of operating in the manner intended by management. Depreciation of an
asset ceases when the asset is derecognized. Therefore, depreciation does not cease
when the asset becomes idle or is retired from active use and held for disposal unless
the asset is fully depreciated.
3.6 Issues on the non-establishment of the accuracy of the Property, Plant and Equipment
of government agencies have become recurring on every Annual Audit Reports of
the Commission, such that COA Circular No. 2020-006 dated January 31, 2020 was
instituted, prescribing the Guidelines and Procedures in the Conduct of Physical
Count of PPE, Recognition of PPE Items Found at Station, and Disposition for Non-
existing/Missing PPE Items, for the One-Time Cleansing of PPE Account Balances
of Government Agencies, which partly states, thus:
4.0 ACCOUNTING STANDARDS ON PPE
xxx
4.2 The cost of an item of PPE shall be recognized as asset if, and only if:
39
a. it is probable that the future economic benefits or service potential
associated with the item will flow to the entity;
b. the cost or fair value of the item can be measured reliably;
c. beneficial ownership and control clearly rest with the government;
d. the asset is used to achieve government objectives; and
e. it meets the capitalization threshold of P15,000.
6.0 PROCEDURAL GUIDELINES
xxx
6.3 Reconciliation of inventory count per RPCPPE with property and

accounting records
The Property and Accounting Units shall undertake collaborative

procedures to ensure that all PPEs included in the RPCPPE are duly
recorded in their respective records and the Property Cards (PCs)
maintained by the Property Unit and the PPELCs maintained by the
Accounting Unit are reconciled. The reconciliation shall be completed
within ten (10) days from rendition of the RPCPPPE by the Inventory
Committee.
3.7 Further, Chapter 7 of MNGAS, Volume I provides the maintenance of Property Card
and Equipment Ledger Card, as stated:
xxx
Sec. 119. Property Records to be Maintained. – The General Services Officer

or the Local Treasurer, as the case maybe, shall number each type of supplies
and maintain Stock Cards per stock number. He shall likewise maintain Property
Cards per category of property, plant and equipment.
Deliveries of supplies or property shall be immediately recorded in the

property records on the basis of the AIR and other supporting documents. The
AIR and other supporting documents shall be forwarded to the Chief Accountant
for the preparation of the DV and recording of deliveries in the appropriate ledger
cards.
Sec. 120. Recording of Deliveries of Supplies or Property in the Books of

Accounts. – The Chief Accountant shall maintain Supplies Ledger Cards per
stock number; Property, Plant and Equipment Ledger Cards for each category of
assets; and Real Property Ledger Cards for land.
Upon receipt of the AIR and other supporting documents, the Chief
Accountant shall record the deliveries in the appropriate ledger cards. Upon
completion of the disbursement process pertaining thereto the Chief Accountant
40
shall prepare the JEV taking up the in the books the procurement made.
Thereafter, the Chief Accountant shall reconcile the JEV with the appropriate
ledger cards.
3.8 As of December 31, 2022, the PPE account of the Municipality of Isabel has carrying
amount of ₱577,431,803.63, presented as follows:
Table 4. Composition of the PPE Account.

Addition/ Accumulated Balance, as of
PPE Accounts Acquisition Cost
Adjustments Depreciation 12/31/2022
Land 6,950,785.37 - 6,950,785.37
Land Improvements 3,528,744.38 - (961,908.55) 2,566,835.83
Other Land Improvements 11,042,910.35 - (4,717,452.62) 6,325,457.73
Road Networks 44,808,865.07 2,227,025.15 - 47,035,890.22
Flood Control System 7,343,939.44 11,229,848.98 (1,369,829.18) 17,203,959.24
Water Supply System 126,782,560.08 - (42,837,732.29) 83,944,827.79
Power Supply System 187,190,273.63 - (76,636,004.47) 110,554,269.16
Seaports System 7,653,310.76 1,070,000.00 (1,676,862.05) 7,046,448.71
Parks, Plazas &
30,160,576.27 - (7,445,830.07) 22,714,746.20
Monuments
Other Public Infrastructure
3,823,346.97 - (3,237,885.81) 585,461.16
Assets
Buildings 50,653,303.71 - (16,724,275.87) 33,929,027.84
School Buildings 33,408,754.83 660,671.48 (20,411,539.09) 13,657,887.22
Hospitals and Health
4,987,903.62 - (1,808,331.34) 3,179,572.28
Centers
Markets 74,478,748.76 - (33,399,218.85) 41,079,529.91
Slaughterhouse 1,494,820.10 - (617,154.96) 877,665.14
Other Structures 147,519,666.07 2,529,280.00 (40,518,373.48) 109,530,572.59
Machinery 9,990.00 - - 9,990.00
Office Equipment 8,507,387.95 (642,753.88) (4,539,467.72) 3,325,166.35
ICT Equipment 11,184,472.94 408,319.59 (8,699,912.94) 2,892,879.59
Agricultural and Forestry
9,635,445.00 - (3,198,175.50) 6,437,269.50
Equipment
Communication
1,765,761.08 - (1,226,086.89) 539,674.19
Equipment
Construction and Heavy
10,956,006.00 - (9,935,103.83) 1,020,902.17
Equipment
Disaster Response and
11,544,247.10 - (5,938,269.49) 5,605,977.61
Rescue Equipment
Military and Police
137,350.00 - (57,470.05) 79,879.95
Equipment
Medical Equipment 4,720,495.02 9,000.00 (3,097,095.66) 1,632,399.36
Sports Equipment 284,760.00 - (258,226.26) 26,533.74
Technical and Scientific
3,030,685.00 - (1,321,790.88) 1,708,894.12
Equipment
Other Machineries and
5,323,191.25 273,480.00 (2,366,983.03) 3,229,688.22
Equipment
Motor Vehicles 8,716,070.48 1,000,000.00 (5,004,614.05) 4,711,456.43
Watercrafts 615,280.00 - (351,041.25) 264,238.75
Other Transportation
1,153,140.00 - (158,324.74) 994,815.26
Equipment
Furniture and Fixtures 4,000,484.04 74,740.00 (2,168,887.88) 1,906,336.16
41
Addition/ Accumulated Balance, as of
PPE Accounts Acquisition Cost
Adjustments Depreciation 12/31/2022
Books 95,811.13 - - 95,811.13
Construction in Progress-
2,432,024.16 - - 2,432,024.16
Infra. Assets
Construction in Progress-
Buildings and Other 1,105,831.51 (61,682.60) - 1,044,148.91
Structures
Other Property, Plant and
34,678,020.51 - (2,387,238.87) 32,290,781.64
Equipment
Net Amount ₱861,724,962.58 ₱18,777,928.72 ₱(303,071,087.67) ₱577,431,803.63
3.9 Perusal of relevant records regarding the composition of the subject account revealed
various errors and deficiencies that depart from the foregoing laws, rules and
regulations. The following predicaments have been existing in previous years, but
despite bringing them to the attention of officials concerned, the same still exist,
hence our reiteration, viz:
a. Non-conduct of complete Physical Count of PPE for CY 2022 resulting to a

variance of ₱77,929,444.19 between the accounting records and Report of
Physical Count of PPE (RPCPPE)
a.1 The Municipality failed to completely conduct the mandated annual

physical count of its year-end Property, Plant and Equipment (PPE) with a
net book value of ₱577,431,803.63, thereby posing difficulty in
determining the correctness and reliability of the balances reflected in the
a.2 Physical Count is an indispensable procedure for the following purpose:

a. Ascertain the correctness of the supply and property records of both
Accounting Office and Property Unit against actual items on hand and
their corresponding values;
b. Reconcile with the Accounting and Property Office records on any
discrepancies found;
c. Identify the official or employee responsible in case of loss due to theft,
fire or other casualties;
d. Segregate serviceable PPE from unserviceable PPE;
e. Dispose properly PPE which are found unserviceable and which are
found beyond economic repair and/ or cost repair exceeds the limit of
30% of the acquisition cost of brand new of the same kind of PPE and
eventually drip them from the books of accounts;
f. Determine obsolescence and deterioration due to wear and tear;
g. Examine ownership and authenticity of the Certificate of Land Title;
and
h. Ensure smooth transfer of accountability whenever there is probable or
possible change of local chief executive or department head due to
retirement, re-assignment, resignation, transfer, death or expiration of
term of office.
42
a.3 Failure of the Municipality to conduct complete physical count of PPE
casts doubt as to existence and validity of the recorded amount of PPE and
the related provision for depreciation as presented in the financial
statements. Moreover, the non-conduct of physical count signifies
weakness in the internal control of the Municipality making the assets
susceptible to theft or loss.
a.4 Despite incomplete physical count as at yearend, the Inventory Committee

submitted to the Audit Team last May 22, 2023 a report on PPEs, with a
total of ₱783,795,518.39. Comparison of records maintained by the
Municipal Accountant and the result of the physical count disclosed an
unreconciled variance of ₱77,929,444.19 or 9.04% of the total PPE’s
acquisition cost.
a.5 Moreover, the Inventory Committee revealed that only supplies, equipment
and other PPEs provided per office and/or found at station were validated
and incorporated in the RPCPPE, and although embodied in the report, they
did not include the Land, Land Improvements, Infrastructure Assets, and
Buildings and Other Structures during the conduct of physical count. Of
the said report, other relevant information was lacking such as date of
acquisition, number of years in service and property number.
a.6 Other factors that contributed to the existence of unaccounted variance are
the gaps in the Municipality’s control mechanism, such as:
a. Lack of personnel to assist in the handling, reporting and monitoring of

the Municipality’s properties to allow timely and regular reconciliation
of property and accounting records; and
b. Carry over or inability to fully resolve unreconciled variance from the
previous years, which should form part of the regular control activities
of both property and accounting offices.
b. Undisposed unserviceable PPEs amounting at least ₱2,263,246.48 were still

carried in the books
b.1 We noted in prior year’s audit report the existence of various unserviceable
properties. However, verification with the Municipal Accountant and
Property Custodian disclosed that said properties remain undisposed to date
contrary to Section 79 of PD 1445.
b.2 Comparison between the report of the Inventory Committee and accounting
records uncovered various unserviceable properties still recorded in the
books, with a total cost of ₱1,165,184.48, as shown in below.
PPE Account Acquisition Cost

Office Equipment ₱ 205,306.00
43
PPE Account Acquisition Cost
ICT Equipment 198,604.48
Communication Equipment 99,940.00
Technical and Scientific Equipment 29,950.00
Other Machinery and Equipment 82,484.00
Motor Vehicle 548,900.00
Total ₱ 1,165,184.48
b.3 In addition, there are 27 identified unserviceable properties in the RPCPPE

amounting to ₱1,098,062.00 that the Audit Team were unable to reconcile
from the accounting records due to incompatible description/particulars as
some items were registered in lump, or items found at station but were not
actually recorded in the books. Details are presented in Table 5.
Table 5. Identified unserviceable properties in the RPCPPE

Office Particulars/ Description Amount
Municipal Epson L120 Printer SN: SMXL168471 ₱ 17,000.00
Engineering Computer Desktop Asus CPU 58,330.00
Office SN: 76L80200249
Philippine Computer Desktop 18.5" Monitor 49,950.00
National SN: E7MOAJ1200540
Police
Mayor’s Venetian Blind 28,000.00
Office iPhone 5S 53,490.00
Municipal Desktop Computer SN: M6KY817401796 47,500.00
Heath Office ACER Laptop 48,000.00
SN: NXGFGSPOO3621182507600
Sangguniang ACER Aspire 474 Laptop 62,805.00
Bayan ACER Aspire 474 Laptop 62,805.00
ACER Aspire 474 Laptop 62,805.00
ACER Aspire 474 Laptop 62,805.00
Samsung Galaxy Note 3 (Jet Black) 32gb 43,630.00
SN:359092/05/577017/1
SN:359092/05/790769/7
SN:359092/05/5999340
SN:359092/05/913449/8
SN:359092/05/577907/2
SN:359092/05/413340/4
General Grass Cutter SN:8013786-8013787 50,000.00
Service Office Buggy 35,800.00
Push Cart 9,000.00
COMELEC Epson printer L565 SN: VJLY071351 26,250.00
Acer Computer Monitor 18.5" 8,500.00
SN#MMDA55004610057504202
Isabel Edan ECG machine Model: SE-100 99,500.00
Emergency SN:360332-M16108460003
Hospital EENT diagnostic set 44,000.00
44
Office Particulars/ Description Amount
2 Pulse Oximeter 5,900.00
1 Sphygmomanometer: Pedia 3,450.00
4 Thermometer 392.00
Total ₱ 1,098,062.00
b.4 Although unserviceable PPEs were identified, the prescribed Inventory and
Inspection Report of Unserviceable Properties (IIRUP) was not prepared
by the Inventory Committee for items found unserviceable, obsolete and/or
no longer needed to precede the assessment of proper disposal and
appraisal procedures. The items included in the list should be evaluated to
exclude those PPEs that can still be repaired within reasonable cost. And
since the Committee failed to conduct complete physical count of all
properties, thus, there may be other properties that are unserviceable and
for disposal but still in the possession of the accountable officer,
considering that the accounting records include PPEs from CY 1990s.
b.5 Failure to dispose these unserviceable properties exposed them to various

perils which reduced their recoverable value and deprived the Municipality
of a possible additional income, likewise, these unserviceable properties
that remain recorded in the books overstates the PPE account.
c. Approximately ₱55 million of unidentified PPE items
c.1 Verification of supporting schedules revealed that a total of

₱54,965,430.07 were reported as “unidentified items”. Summary of these
items are presented in Table 6.
Table 6 Consolidated Unidentified PPEs as of December 31, 2022

PPE Accounts Cost
General Fund
Road Networks ₱32,120,848.49
Flood Control System 6,978,018.44
Water Supply System 1,111,326.22
Agricultural and Forestry Equipment 5,784,445.00
Military and Police Equipment 127,400.00
Medical Equipment 3,778,772.91
Furniture and Fixtures 3,975.20
Other Property, Plant and Equipment 4,975,952.98
Special Education Fund
Total ₱ 54,965,430.07
c.2 As per PPE supporting schedules, these unidentified PPEs were lumped
into their PPE subsidiary accounts and were labelled as “various/assorted”
or “unreconciled items”, while those items under the infrastructure assets
45
have “please refer to Registry of Public Infrastructure…” particulars.
Moreover, it was also observed that there was no provision for accumulated
depreciation pertaining to the unidentified PPE item under the Other PPE
account.
c.3 Interview with the Municipal Accountant disclosed that each PPE line item
was previously presented in lumped amount without any description when
he assumed office in 2017. Consequently, the unidentified balances,
remained as is and carried over in the books throughout the years.
Nevertheless, she invoked that her office is will coordinate with the
Property Custodian, GSO and Municipal Engineer regarding the matter and
committed to initiate more efforts to corroborate the said unidentified PPE
items.
d. Inclusion of items costing below the capitalization threshold of ₱15,000.00

totaling ₱717,242.43
d.1 Review of Serviceable PPEs showed that there were items with unit costs
below ₱15,000.00 that were recorded under PPEs, with an aggregate
amount of ₱717,242.43, as presented in Table 7.
Table 7. PPEs costing below P15,000 per unit

Account Title Cost
General Fund
Flood Control System ₱ 10,926.00
Power Supply System 11,600.00
Buildings 9,600.00
School Buildings 8,870.00
Markets 5,240.00
Slaughterhouse 16,081.00
Other Structures 12,745.00
Office Equipment 122,556.00
Technical and Scientific Equipment 5,000.00
Other Transportation Equipment 117,065.00
Other Property, Plant and Equipment 77,840.00
Total ₱ 717,242.43
d.2 Per accounting guidelines, an item whose life extends for more than a year
but costs below ₱15,000.00 should be recorded as inventory upon
acquisition and charged to the expense upon issuance to end-users.
46
Therefore, the cost and corresponding accumulated depreciation of the
items in Table 4 should be dropped from the PPE account and the net book
value should be debited to prior period errors or appropriate expense
account, whichever is applicable. For monitoring, control and
accountability, an Inventory Custodian Slip (ICS) shall be prepared upon
issuance of small tangible items covered by approved Requisition Issue
Slip (RIS).
d.3 As a result, the recorded PPE items with amount below the capitalization
overstate the PPE account in the financial statement by ₱717,242.43.
e. Inclusion of properties held for use by Barangay Local Governments
e.1 Perusal of various completed infrastructure projects, a total of

₱98,674,311.27 were found to be located within the territorial jurisdiction
of the Barangays and are yet to be tuned-over to the respective barangay
officials and be recorded in their respective barangay books. Summary of
these items are shown in Table 8.
Table 8. PPEs to be tuned-over to the respective barangay

Account Title Cost
General Fund
Land Improvements ₱ 3,179,596.26
Other Land Improvements 25,249.00
Road Networks 4,038,945.68
Water Supply System 3,098,834.62
Power Supply System 17,420,176.59
Other Public Infra Assets 547,950.00
Buildings 8,041,467.52
Hospitals and Health Center 699,370.00
Other Structures 41,754,033.66
Watercrafts 299,500.00
Other Land Improvements 44,815.00
Water Supply System 99,890.00
School Buildings 16,534,142.63
Total ₱ 98,674,311.27
e.2 Although these projects were implemented by the LGU, ownership should
be transferred to the barangay concerned. Accordingly, these infrastructure
projects should have been turned over to the respective Barangays upon
47
completion to transfer the responsibility of managing and maintaining the
said projects.
f. Non-provision for Depreciation expense
f.1 We further noted that the Road Networks, Machinery and Books accounts
with acquisition costs of ₱47,035,890.22, ₱9,990.00 and ₱95.811.13,
respectively, have no provisions for depreciation expense and/ or
accumulated depreciation (highlighted in Table 1).
f.2 The Accounting Office acknowledged the omitted misinterpretation of CY

2021 audit observation on the Road Networks account and committed to
correct the same. They likewise agreed to effect necessary adjusting entries
on the depreciation of the abovementioned accounts to establish the correct
balances in the financial statements.
f.3 Consequently, failure to compute and record the depreciation overstates the
Road Networks, Machinery and Books accounts with a corresponding
understatement of the depreciation expense and accumulated depreciation
in CY 2022.
3.10 The foregoing deficiencies cast doubt on the accuracy, existence, valuation and
propriety of the items comprising the PPE account.
3.11 We recommended that the Municipal Mayor:

d. instruct the Inventory Committee to (i) conduct a comprehensive
physical inventory of PPE owned by the Municipality, identifying the
proper classification, individual identification, status of serviceability,
accountability and location thereof; (ii) prepare and submit a complete
RPCPPE to the Municipal Accountant not later than January 31 of each
year, copy furnish the Audit Team; and (iii) prepare and submit IIRUP
together with its supporting documents for disposal of unserviceable
properties;
e. require the Municipal Accountant to (i) expedite substantiation of

recorded unidentified PPE items based on the result of inventory count
as recommended above; (ii) drop from the PPE account the identified
items below the ₱15,000.00 threshold totaling ₱717,242.43; (iv) initiate
the proper turn-over of the completed projects to the respective
Barangay-Recipients supported with the properly accomplished turn-
over documents, and effect adjustments in the books; and (v) maintain
and update PPE Le dger Cards for each category of assets and Real
Property Ledger Cards for land; and
48
f. direct the General Services Officer to take charge in updating of
Property Cards for proper monitoring, control and accountability of
purchased/ acquired and issued PPEs.
3.12 Lastly, we recommended that the Municipality avail the one -time cleansing of
the PPE Account and strictly adhere with the provisions of COA Circular No.
2020-006 dated January 31, 2020 to establish PPE balances that are verifiable
as to existence, condition and accountability.
3.13 During the exit conference, the appointed GSO promised to conduct a complete
physical inventory of all properties belonging to the Municipality. Additionally,
both the Municipal Accountant and GSO assured reconciliation of their records and
hopefully administer the one-time cleansing prescribed by COA Circular 2020-006.
Overstated Accounts Payable
4. The Account Payable balance of ₱75,029,441.78 as of December 31, 2022 is

overstated by ₱20,987,830.08 due to: a) uncorrected prior years’ discrepancies
with overstatement of ₱19,101,241.68; and b) current year’s deficiencies
overstating the payables account and the corresponding expense account by
₱1,886,588.40 contrary to Section 4 of PD 1445, Section 350 of RA 7160, and
International Public Sector Accounting Standard (IPSAS) 1 and 19, thereby
the accounts in the financial statements are not fairly presented.
4.1 Section 4 of Presidential Decree No 1445 states:
Section 4. Fundamental principles. Financial transactions and

operations of any government agency shall be governed by the
fundamental principles set forth hereunder, to wit:
(1) Xxx
Xxx
(5) Disbursements or disposition of government funds or property shall

invariably bear the approval of the proper officials.
(6) Claims against government funds shall be supported with complete

documentation.
Xxx
4.2 Section 350 of R.A. 7160 or the Local Government Code of 1991 provides:
49
Section 350. Accounting for Obligations - All lawful expenditures
and obligations incurred during a fiscal year shall be taken up in the
accounts of that year.
4.3 Paragraph 27 of IPSAS I provides that fair presentation requires the faithful
representation of the effects of the transactions, other events, and conditions in
accordance with the definitions and recognition criteria for assets, liabilities, revenue
and expenses set out in the IPSASs.
4.4 Paragraph 19 (a) of IPSAS 19 also states that:
Provisions and Other Liabilities
19. Xxx
(a) Payables are liabilities to pay for goods or services that have been
received or supplied, and have been invoiced or formally
agreed with the supplier (and include payments in respect of
social benefits where formal agreements for specified amounts
exist); Xxx
4.5 As of December 31, 2022, the Financial Statements of the Municipality of Isabel
reported the Accounts Payable balance under General Fund amounted to
₱75,029,441.78, accumulated over the years and composed of the following:
Table 9. Composition of Accounts Payable as of December 31, 2022

Payables Amount
Year 2018 ₱11,630,598.41
Year 2019 17,069,407.43
Year 2020 14,933,208.70
Year 2021 15,548,919.00
Year 2022 15,847,308.24
Total ₱ 75,029,441.78
4.6 Perusal of the General Ledger, Journals, Itemized List of Accounts Payable for CY
2022 and prior years’ Annual Audit Reports (AARs) revealed uncorrected
discrepancies of prior years’ Accounts Payable and various deficiencies in CY2022
cause by the same dilemma in the prior years’ audit findings, however, the same still
existed as of yearend, as a result the Accounts Payable is overstated by
₱20,807,351.13 and the corresponding expense accounts by the same amount. The
source and details of the overstatement were as follows:
A. Uncorrected Discrepancies from Prior Years – net overstatement of

P19,101,241.68
50
4.6.1 As reported in AAR CY 2021, the Accounts Payable is overstated by
P31,522,390.76 due to inclusion of payables with no documents presented,
recording of various transactions with no valid contracts and uncertain
deliveries, inclusion of transactions not delivered or with questionable
deliveries, erroneous recording of amount payable, and exclusion of various
transactions incurred in 2021 but not yet paid, summarized in Table 10:
Table 10. Summary of Prior Year Discrepancies and Adjustments made in CY 2022
Amount of CY 2022 payment Balance of
Discrepancies Noted
Over/(Under)statement and adjustments Over/(Under)statement
A. Payables with no documents presented (Table 3)
1. Overstatement of CY 2010 to ₱ 27,371,983.45 ₱9,075,268.56* ₱18,296,714.89
2020 payables
2. Overstatement of CY 2021 6,875,245.36 3,345,880.52** 3,529,364.84
payables
Sub-total 34,247,228.81 12,421,149.08 21,826,079.73
B. CY 2021 payables with no valid contracts and uncertain deliveries
3. Unsigned Purchase Orders (POs) 245,057.00 0.00 245,057.00
and Acceptance and Inspection
Reports (AIRs)
4. Unsigned POs but received by the 1,199,216.00 0.00 1,199,216.00
LGU
Sub-total 1,444,273.00 0.00 1,444,273.00
C. CY 2021 transactions not delivered or with questionable deliveries
5. Unsigned and Undated AIRs 805,511.00 0.00 805,511.00
Sub-total 805,511.00 0.00 805,511.00
D. Erroneous recording of amounts of payables
6. Erroneous recording of amounts 182,072.28 0.00 182,072.28
7. Payables recorded twice 59,890.00 0.00 59,890.00
8. Prior years’ transaction recorded 1,080.00 0.00 1,080.00
as Accounts Payable in CY 2021
9. CY 2022 obligations recorded as 10,671.51 0.00 10,671.51
Accounts Payable in CY 2021
Sub-total 253,713.79 0.00 253,713.79
E. Exclusion of various transactions incurred in 2021 but not yet paid
10. Transactions incurred in 2021 but (5,069,692.10) 0.00 (5,069,692.10)
not yet paid
Sub-total (5,069,692.10) 0.00 (5,069,692.10)
F. Erroneous recording of amounts paid in CY 2021
11. Payments that are not equal to the (105,493.74) 0.00 (105,493.74)
payables recorded
12. Payments for transactions from (53,150.00) 0.00 (53,150.00)
prior years that were not recorded
as payable
Sub-total (158,643.74) 0.00 (158,643.74)
Net Overstatement of Accounts ₱ 31,522,390.76 ₱12,421,149.08 ₱ 19,101,241.68
Payable Balance as of 12/31/2021
* Adjustments of ₱9,081,725.56 less ₱78,959 (valid claim) and payment of ₱72,502.00 for CY 2018 payables without documents
** Paid payables in CY2022 of ₱3,307,362.50 plus adjustment for double entries of ₱38,518.02
51
4.6.2 In CY 2022, the accounting office prepared and recorded an adjustment
dropping the payables without documents of prior years’ specifically payables
for CY 2010 to 2017 reducing the overstatement of the Accounts Payable
balance by ₱9,081,725.56. Additionally, CY 2022 the Municipality rendered
payment of payables totaling ₱28,311,902.53, of which ₱24,865,932.03
(Appendix G.1) refers to payments of payables supported with valid documents
while the remaining ₱3,445,970.50 (Appendix G.2) was disbursed to pay those
without supporting documents in CY 2018 to CY 2021.
4.6.3 Meanwhile, payables from CY 2018 to 2021 totaling ₱21,826,079.73 remain

recorded the books despite the absence of documents to prove the validity of
the transaction which consequently overstating the payable s account. Details
presented in Table 11.
Table 11. Payables with no documents presented as of December 31, 2022

Payments
Amount with No Documents payable with no Balance as of
Year Recorded Amount valid documents Presented/ Not documents December 31,
from claimants valid obligations presented (2021- 2022
2022)
CY 2018 ₱13,822,549.41 ₱3,813,729.60 ₱10,008,819.81 ₱1,505,159.15 ₱8,503,660.66
CY 2019 20,237,262.38 14,280,686.85 5,956,575.53 928,584.40 5,027,991.13
CY 2020 27,194,812.76 21,415,091.06 5,779,721.70 1,014,658.60 4,765,063.10
CY 2021 42,445,901.99 35,510,766.63 6,875,245.36 3,345,880.52 3,529,364.84
₱ 103,700,526.54 ₱ 75,020,274.14 ₱ 28,620,362.40 ₱6,794,282.67 ₱21,826,079.73
4.6.4 From the foregoing, the identified discrepancies from prior years which remain
uncorrected in the books of accounts, cumulatively overstates the Accounts
Payable account by ₱19,101,241.68.
B. Erroneous recognition of payment/settlement of various payables -

₱92,585.97
4.6.5 As of December 31, 2022, the Municipality was able to settle its payables
totaling ₱28,311,902.53. Review and analysis of records uncovered the
following errors that affect the Accounts Payable account, to wit:
a) Erroneous recorded amounts between the outstanding payable as against

its settlement made in CY 2022 resulted to a variance of ₱519,463.16,
overstating the payable account.
b) Payment of payables amounting to ₱11,820.00 was not recognized as a
deduction to the Accounts Payable account instead it was recorded as Prior
Year Adjustment.
c) Various transactions amounting to ₱623,869.13 were regarded as payment
of payables in the Check Disbursement Journal recorded as deduction to
the Accounts Payable account, however, these disbursements were not
found in the itemized list of payables as of CY 2021. Consequently,
52
recognition as payment thereof even without an outstanding payable result
in an understatement of the Accounts Payable account by ₱623,869.13.
Table 12. Erroneously recorded in relation to payment of payables as of December 31, 2022
Deduction of
ALOBS Recorded Account Payable Over
Payee
Number Payable account in CY (Understatement)
2022 (payments)
Flaviano C. Centino Jr. 21082911 10,450.00 11,000.00 ₱ (550.00)
Lilt L. Clemena 21114023 1,150.00 900.00 250.00
PEMC 21124525 43,072.37 43,072.34 0.03
LEYECO V 21125427 14,000.00 11,103.26 2,896.74
ABRAHAM ACORDA 21125035 107,216.49 107,220.00 (3.51)
JACQUELINE R. SUSON 21125285 1,698.00 1,497.00 201.00
Various Payroll 21114075- 703,618.45 656,754.45 46,864.00
21114087
Various Payroll 21114114- 143,036.98 143,037.48 (0.50)
21114117
Various Payroll 21114118- 64,280.64 64,280.65 (0.01)
21114119
Various Payroll 21114268- 744,017.00 633,000.00 111,017.00
21114292
Various Payroll 21114363- 652,567.51 695,182.21 (42,614.70)
21114378
Various Payroll 21124626- 623,879.72 645,311.72 (21,432.00)
21124636
Various Payroll 21124645-46; 1,614,170.21 1,633,180.21 (19,010.00)
21124648-57;
21124659-63
Various Payroll 21124664- 477,069.78 474,243.08 2,826.70
21124668
Various Payroll 21124673- 42,621.95 42,612.95 9.00
21124674
Payroll 21124752 7,650.00 28,800.00 (13,500.00)
21124971 4,264.63 4,109.72 154.91
21125314 2,508.00 6,384.00 (3,876.00)
21125425 118,088.00 59,044.00 59,044.00
21124547 403,486.50 6,300.00 397,186.50
Sub-total 519,463.16
Payment of payables recorded to Prior Period Adjustments
No Available Data 20082806 600.00 0.00 600.00
Noel R. Gubalane 20113999 720.00 0.00 720.00
Jeonmira M. Bernales 21103635 2,500.00 0.00 2,500.00
Jenrose A. Limpios 21124512 1,500.00 0.00 1,500.00
Isidro Requitillo 21124526 1,500.00 0.00 1,500.00
Berzabeth Pitao 21124532 1,500.00 0.00 1,500.00
Shilma B. Lariba 21124569 1,000.00 0.00 1,000.00
Leizel L. Villaber 21124606 1,500.00 0.00 1,500.00
Rogelio N. Recto 21124738 1,000.00 0.00 1,000.00
Sub-total 11,820.00
Recorded payment of payables without the transaction set-up as payable in the books
DBP Ormoc Branch 21124751 0.00 404,016.41 404,016.41
PEMC 21125305 0.00 42,892.72 42,892.72
Vivian E. Araneta 21125020 0.00 114,000.00 114,000.00
53
Deduction of
ALOBS Recorded Account Payable Over
Payee
Number Payable account in CY (Understatement)
2022 (payments)
Ma. Jackelyn D. Cerillo 21124681 0.00 500.00 500.00
Roberto A. Simbajon 21020336 0.00 1,860.00 1,860.00
Jeneth Cabonegro 21082801 0.00 1,800.00 1,800.00
Cherrielyn Joyce F. Misa 21126383 0.00 7,500.00 7,500.00
Municipal Treasurer 21125203 0.00 48,000.00 48,000.00
Martins Living Water Refilling 21114120 0.00 2,400.00 2,400.00
Station
Ma. Lisa P. Amson, CPA 21114331 0.00 900.00 900.00
Sub-total (623,869.13)
Net overstatement ₱ (92,585.97)
4.6.6 As seen in Table 12, it is apparent that the settlement of Accounts Payables
account was inadequately monitored and inaccurately updated which
eventually leads to undetected errors affecting the fair presentation of the
outstanding balance thereof. The errors noted resulted in a net
understatement of the Accounts Payable account by ₱92,585.97.
C. CY 2022 Accounts Payable deficiencies – net overstatement of ₱1,886,588.40
4.6.7 At year end, the Municipality established payables for CY 2022 amounting to
₱15,847,308.24. Verification of the existence and validity of payables recorded
and scrutiny of the presented vouchers and supporting documents uncovered
the following deficiencies:
c.1. CY2022 payables without supporting documents and duplication of

recorded payables – ₱ 3,535,502.34
4.6.7.1 Examination of the submitted vouchers and supporting documents

presented at yearend revealed that from the total recorded CY2022
payables, only ₱12,311,805.90 (Appendix G.3) was presented with the
required documents while an amount of ₱3,355,023.39 (Appendix G.4)
have no any documents to substantiate the accuracy of records and
obligation of the Municipality and the remaining amount of ₱180,478.95
(Table 13) was recorded twice or a duplication of recorded payable. It
should be noted that for payables to become valid obligations, supporting
documents should be available to validate their existence, recording of
payables without documents, and uncorrected double entry errors
overstates the payable and the corresponding expenses account by
₱3,535,502.34.
Table 13. CY 2022 payables recorded twice

Amount Account
Supplier ALOBS No.
Code
ABS MARKETING AND 22030608 5 02 03 010
GENERAL MDSE ₱34,185.00
54
ABS MARKETING & 22020487 47,223.95 5 02 03 010
GEN. MDSE
ABS MARKETING AND 22020398 49,470.00 5 02 03 010
GENERAL MDSE
ABS MARKETING AND 22030500 49,600.00 5 02 03 010
GENERAL MDSE
TOTAL ₱ 180,478.95
4.6.7.2 Upon inquiry to the designate personnel of the Accounting Office, she
clarified that their records starting CY 2022 were based on the documents
presented by the Municipal Treasurer’s Office (MTO), however, she
cannot exactly pinpoint the reasons for unsupported records. Further
inquiry was made to the Municipal Treasurer also confirmed that the
complete set of documents not yet paid were borrowed by the Accounting
Office to be recorded and recognize as payables at yearend.
4.6.7.3 The Audit Team commended the efforts of the MTO and Accounting
Office on adopting the previous audit recommendations that recognition of
payables should be based on vouchers with sufficient documents and they
halted the practice of handing-out documents to concerned
suppliers/payees for safekeeping. However, documents for the payables
amounting to ₱5,289,517.48 not presented during audit creates doubt on
the appropriateness of the records and the diligent safekeeping of
documents.
c.2. CY 2022 transactions not yet paid at yearend but were not recorded as
payable– ₱2,444,439.21
4.6.7.4 Further verification of the presented documents revealed 61 vouchers with

valid supporting documents totaling to ₱2,444,439.21 were not included
in the itemized list of payables recognized at yearend, details in Appendix
G.5.
4.6.7.5 These transactions were all incurred in CY2022 but were not yet paid as
of the reporting date. These expenses refer to other maintenance services,
equipment, supplies and fuel procurement in CY 2022 presented with
valid supporting documents upon verification by the Audit Team. Being
valid obligations of the LGU, the corresponding expense and payable
account should have been recorded in the books. The non-recognition of
these transactions resulted to an understatement in the payable account by
₱2,444,439.21.
c.3. Inclusion of transactions with deficient and lacking supporting

documents - ₱888,111.24
4.6.7.6 Scrutiny of the documents presented for the recorded CY2022 payables
revealed various Purchase Orders without signature from Municipal
55
Mayor/authorized representative or the supplier which makes the
agreement without legal binding. Moreover, delivery of services or goods
are questionable due to the absence of signature by the LGU inspector as
proof and attestation of the actual services/goods rendered and/or
delivered. While, we also noted that the BAC Resolution justifying the
adoption of the Alternative Method of Procurement for various supplies
and materials was not signed by Head of the Procuring Entity (HOPE)
which creates uncertainty on the validity of the procurement modality
adopted by the LGU.
4.6.7.7 Payment of transactions without valid or questionable obligations is not

allowed, thus, these should be drop in the books as it overstates the
Accounts Payable account and its corresponding expense account by
₱888,111.24. Details presented in Table 14.
Table 14. CY 2022 Payables with deficient and lacking documents

Alobs
Payee Amount PO AIR BAC Reso
Number
KML MARKETING & 22041046 ₱49,150.00 no AIR
GEN. MDSE. 22051728 not signed by not signed by
49,545.00 supplier LGU
inpector
22062238- not signed by no inspection not approved by
B supplier signed HOPE
49,661.00
represented by
acting mayor
RSO AND SONS 22061942 not signed by not signed by not approved by
BUILDERS AND 49,570.00 supplier LGU HOPE
SUPPLIERS, INC. inpector
22062143 not signed by
49,955.00
supplier
22062141 not signed by not approved by
49,330.00
supplier HOPE
22051729 not signed by not signed by not approved by
49,369.00 supplier LGU HOPE
inpector
49,385.00
supplier
TULING 22062142 not signed by
47,360.00
ENTERPRISES supplier
22062238- not signed by not signed by not approved by
C 22,475.00 supplier LGU HOPE
inpector
49,470.00
supplier
22062238- not signed by no inspection not approved by
A supplier signed HOPE
49,825.00
represented by
acting mayor
22030531 not signed by no inspection
49,460.00
supplier signed
56
Alobs
Payee Amount PO AIR BAC Reso
Number
MED CAPTAIN 22062164- not signed by
30,892.50
MARKETING B supplier
LINGANAY 22062214 not signed by
ENTERPRISES 90,860.00 LGU
inpector
ABS MARKETING 22030763 not signed by
4,944.00
AND GENERAL MDSE supplier
4,990.00
supplier
4,985.00
supplier
4,990.00
supplier
22020488 not signed by no inspection
4,985.00
supplier signed
ISABEL 22030806 not signed by
EDUCATIONAL 4,985.00 supplier
SUPPLY
PEMC 22062181 no inspection
49,079.74
signed
BENECIO 22041216 not signed by
ROSABELLA WATER 700.00 Mun.
REFILLING STATION Administrator
925.00 Mun.
Administrator
JUDEFOOD 22030879 not signed by
16,600.00
CATERING SERVICES Mayor
TOTAL ₱888,111.24
4.7 In summary, the foregoing discrepancies of the prior and current year’s Accounts
Payable results to a net overstatement of ₱20,987,830.08, as shown below:
Amount of
Discrepancies Noted
Over/(Under)statement
Prior Years:
A. Payables with no documents presented ₱21,826,079.73
B. CY 2021 payables with no valid contracts and 1,444,273.00
uncertain deliveries
C. CY 2021 transactions not delivered or with 805,511.00
questionable deliveries
D. Erroneous recording of amounts of payables 253,713.79
E. Exclusion of various transactions incurred in 2021 (5,069,692.10)
but not yet paid
F. Erroneous recording of amounts paid in CY 2021 (158,643.74)
Sub-total 19,101,241.68
Current Year:
1. Erroneous recognition of payment/settlement of (92,585.97)
payables
2. CY 2022 Accounts Payable deficiencies
a) CY 2022 payables without supporting 3,535,502.34
documents and some were recorded twice
57
Amount of
Discrepancies Noted
Over/(Under)statement
b) CY 2022 transactions not yet paid but was not (2,444,439.21)
recorded as payable at year end
c) Inclusion of transactions with deficient and 888,111.24
lacking supporting documents
Sub-total 1,886,588.40
Net Overstatement ₱ 20,987,830.08
4.8 Due to the significant amount and voluminous number of payables the Municipalit y
must settle, adequate control and monitoring of the additions and deductions of
payable account and proper safekeeping of documents should be in place. It is the
responsibility of the Municipal Accountant to ensure that all valid expenditures of
the municipality should be recorded in the year these were incurred, and any portion
thereof which remain unpaid as of yearend, be duly obligated and a payable
recognized in the books of accounts. The recognition of payables with no valid
supporting documents and erroneous recording of amounts payable and payments in
CY 2022 overstates the expense and payable accounts of the municipality by
₱20,987,830.08.
4.9 We reiterated the recommendation, with modification, that the Municipal

Accountant should:
d. Require all End-User Units to submit all documents for the procurement of
goods and services charged from the current year appropriation, the
obligations of the suppliers having been duly fulfilled, based on the
contract, during the current year, to facilitate the recording of the expenses
in the books of accounts of the municipality;
e. prepare adjusting entry to drop from Accounts Payable account the

unsubstantiated claims as well as to effect corrections on the erroneously
recorded transactions;
f. Record only the accounts payable which were obligated and have complete
supporting documents.
4.10 The Municipal Accountant will further initiate investigation on the whereabouts of the
listed payables without documents presented since they have recorded the CY 2022
payables based on vouchers.
Unsubstantiated balance and various errors/ omissions in the Due to NGAs account
5. The Due to National Government Agencies (NGAs) account totaling

₱14,800,365.39 as of December 31, 2022 includes several unsubstantiated
amounts and/or long outstanding balances , contrary to pertinent provisions of
Presidential Decree (P.D.) No. 1445, Paragraph 29(b) of IPSAS 1 and COA
58
Circular No. 94-013, thus affecting the fair presentation of the account in the
year-end Financial Statements, and exposed the said funds to possible
misapplication. Addedly, liquidated damages were not imposed on the
Construction of River Wall project despite the lapse of contract durations,
contrary to pertinent provisions of Presidential Decree (PD) 1445 and the 2016
Revised IRR of Republic Act No. 9184, to the detriment of the government.
5.1 Section 2 of PD 1445 states:
It is the declared policy of the State that all resources of the government shall be
managed, expended or utilized in accordance with law and regulations, and
safeguarded against loss or wastage through illegal or improper disposition, with
a view to ensuring efficiency, economy and effectiveness in the operations of
government. The responsibility to take care that such policy is faithfully adhered
to rests directly with the chief or head of the government agency concerned.
accounts:
information.
5.3 Paragraph 29 (b) of the International Public Sector Accounting Standards (IPSAS) I
states that a fair presentation of financial statements is achieved when an entity
presents information, including accounting policies, in a manner that provides
relevant, reliable, comparable, and understandable information. Information is
reliable when it is free from material error and bias, and can be depended on by users
to represent or could reasonably be expected to represent. Information is material if
its omission or misstatement could influence the decisions of users or assessments
made on the basis of the financial statements.
5.4 COA Circular No. 94-013 dated December 13, 1994 provides the rules and
regulations in the grant, utilization and liquidation of funds transferred to
implementing agencies. This Circular was issued to ensure that:
1. the transfer is properly taken up in the books of both agencies,

2. the transferred funds are used only for the intended purpose, and that
3. proper accounting and reporting is made on the utilization of the funds.
5.5 The Circular further states that: “Within 10 days after the end of the month or agreed
period for the project, the Implementing Agency (IA) shall submit the report on the
utilization of the funds to the Source Agency (SA) for taking up in the books. Any
59
unused/unexpended balance shall be returned by the IA and duly receipted by the
SA. Both the SA and IA are required to maintain subsidiary ledger/records for each
project.”
5.6 Moreover, pertinent provision of Annex E states the contract implementat ion
guidelines for the procurement of infrastructure projects, viz:
xxx
7. Once the project reaches an accomplishment of ninety five (95%) of the

total contract amount, the procuring entity may create an inspectorate team
to make preliminary inspection and submit a punch-list to the contractor in
preparation for the final turnover of the project. Said punch-list will
contain, among others, the remaining works, work deficiencies for
necessary corrections, and the specific duration/time to fully complete the
project considering the approved remaining contract time. This, however,
shall not preclude the procuring entity's claim for liquidated damages.
xxx
8.1. Where the contractor refuses or fails to satisfactorily complete the work
within the specified contract time, plus any time extension duly granted and
is hereby in default under the contract, the contractor shall pay the
procuring entity for liquidated damages, and not by way of penalty, an
amount, as provided in the conditions of contract, equal to at least one tenth
(1/10) of one (1) percent of the cost of the unperformed portion of the works
for every day of delay.
xxx
8.3. To be entitled to such liquidated damages, the procuring entity does not
have to prove that it has incurred actual damages. Such amount shall be
deducted from any money due or which may become due the contractor
under the contract and/or collect such liquidated damages from the
retention money or other securities posted by the contractor whichever is
convenient to the procuring entity.
8.4. In case that the delay in the completion of the work exceeds a time duration
equivalent to ten percent (10%) of the specified contract time plus any time
extension duly granted to the contractor, the procuring entity concerned
may rescind the contract, forfeit the contractor's performance security and
takeover the prosecution of the project or award the same to a qualified
contractor through negotiated contract.
8.5. In no case however, shall the total sum of liquidated damages exceed ten
percent (10%) of the total contract price, in which event the contract shall
automatically be taken over by the procuring entity concerned or award the
60
same to a qualified contractor through negotiation and the erring
contractor's performance security shall be forfeited. The amount of the
forfeited performance security shall be aside from the amount of the
liquidated damages that the contractor shall pay the government under the
provisions of this clause and impose other appropriate sanctions.
xxx
9.1 The procuring entity shall have the authority to suspend the work wholly
or partly by written order for such period as may be deemed necessary, due
to force majeure or any fortuitous events or for failure on the part of the
contractor to correct bad conditions which are unsafe for workers or for the
general public, to carry out valid orders given by the procuring entity or to
perform any provisions of the contract, or due to adjustment of plans to suit
field conditions as found necessary during construction. The contractor
shall immediately comply with such order to suspend the work wholly or
partly.
9.2 The contractor or its duly authorized representative shall have the right to
suspend work operation on any or all projects/activities along the critical
path of activities after fifteen (15) calendar days from date of receipt of
written notice from the contractor to the district engineer/regional
director/consultant or equivalent official, as the case may be.
xxx
10.1 Should the amount of additional work of any kind or other special
circumstances of any kind whatsoever occur such as to fairly entitle the
contractor to an extension of contract time, the procuring entity shall
determine the amount of such extension; provided that the procuring entity
is not bound to take into account any claim for an extension of time unless
the contractor has, prior to the expiration of the contract time and within
thirty (30) calendar days after such work has been commenced or after the
circumstances leading to such claim have arisen, delivered to the procuring
entity notices in order that it could have investigated them at that time.
Failure to provide such notice shall constitute a waiver by the contractor of
any claim. Upon receipt of full and detailed particulars, the procuring entity
shall examine the facts and extent of the delay and shall extend the contract
time completing the contract work when, in the procuring entity's opinion,
the findings of facts justify an extension.
xxx
10.5 Extension of contract time shall be granted for rainy/unworkable days

considered unfavorable for the prosecution of the works at the site, based
on the actual conditions obtained at the site, in excess of the number of
61
rainy/unworkable days pre-determined by the government in relation to the
original contract time during the conduct of detailed engineering and in the
preparation of the contract documents as agreed upon by the parties before
contract perfection, and/or for equivalent period of delay due to major
calamities such as exceptionally destructive typhoons, floods and
earthquakes, and epidemics, and for causes such as non-delivery on time of
materials, working drawings, or written information to be furnished by the
procuring entity, non-acquisition of permit to enter private properties
within the right-of way resulting in complete paralyzation of construction
activities, and other meritorious causes as determined by the Government's
authorized Engineer and approved by the procuring entity. Shortage of
construction materials, general labor strikes, and peace and order problems
that disrupt construction operations through no fault of the contractor may
be considered as additional grounds for extension of contract time provided
they are publicly felt and certified by appropriate government agencies
such as DTI, DOLE, DILG, and DND, among others. The written consent
of bondsmen must be attached to any request of the contractor for extension
of contract time and submitted to the procuring entity for consideration and
the validity of the performance security shall be correspondingly extended.
5.7 Analysis of the Subsidiary Ledgers (SL) disclosed that the LGU again received funds
from NGAs totaling ₱12,869,805.87 for the implementation of programs, projects
and activities. This is in addition to the funds transferred to the LGU in prior years
with an aggregated balance of ₱2,844,354.02 as of December 31, 2021.
5.8 Perusal of the Financial Statements disclosed that the consolidated balance of the
Due to NGAs account totalled ₱14,800,365.39 as of December 31, 2022.
Table 15. Balances of Due to NGAs Account per Fund

Balance as of Utilization/ Balance as of
Fund Additions
12/31/2021 Return to SAs 12/31/2022
General Fund ₱ 1,874,367.82 ₱ 106,603.37 ₱ 482.00 ₱ 1,980,489.19
Trust Fund 969,986.20 12,763,202.50 913,312.50 12,819,876.20
Total ₱ 2,844,354.02 ₱ 12,869,805.87 ₱ 913,794.50 ₱ 14,800,365.39
5.9 Scrutiny of the composition of this account exposed unsubstantiated amounts and/or
non-moving accounts for three (3) years or more, roughly ₱2.3 million (Table 16),
for which some of these balances may refer to unutilized funds or balances of
completed projects subject for return to source agencies or the Bureau of Treasury
(BOTr).
Table 16. Unsubstantiated and/or Long Outstanding Balances as of December 31, 2022
Balance as of
No. Available Data per SL
12/31/2022
General Fund
1 COMELEC ₱1,395.16
62
Balance as of
No. Available Data per SL
12/31/2022
2 Magna Carta 1,339.81
3 Mining Claim 442,660.99
4 Disbursing Fund 1,386.82
5 National Fund 30,659.99
6 D.O.L.E. 754,608.78
7 NAPOLCOM -PLEB 3,784.50
8 LGSEF - Palaro Ng Bayan 10,000.00
9 Fire Code Fees 48.00
10 Scout Jamboree Area VII 136,950.00
11 DA - RFU 8 5,000.00
Sub-total 1,387,834.05
Trust Fund
1 Construction of Municipal Building 5,805.14
2 DA Project 390,250.00
3 Repair & Maintenance of Barangay Roads 21,718.57
4 Financial Aid from DPWH -18,627.00
5 Construction of Public Market 10,969.82
6 Barangay Street Maintenance 882.83
7 Disbursing Funds 1,000.00
8 Barangay Roads & Bridges Maintenance 1,581.16
9 Calamity Relief Assistance 15,000.00
10 Remittance of Mining Claim 23,670.00
Emergency Emp.Ass. Riverbank Stabilization DOLE Employment
11 2,008.98
Assistance for De-clogging open canal Poblacion Isabel Area
12 Livelihood Individual diversified DOLE Project -943.00
13 2014 DILG Salintubig GPBP Project -0.01
14 Repair/Rehabilitation of Isabel Community Hospital -17,377.50
15 COSE 2,749.25
16 Implementation of GPBP along PSU (Day Care Center) 0.00
17 Barangay Livestock Breeding Loan Program 270,000.00
18 KKK GRSP 84,000.00
19 MASO HOG Dispersal Program 42,482.50
20 Techno Gabay Interconnectivity -76.77
21 Fits Center 16,553.08
22 Tissue Cultured Lakatan Banana 2,250.00
23 Brgy. Binog Housing Project 3,279.05
F/A for Diversified Livelihood Project Disadvantages for Women
24 0.10
& Person
Sub-total 857,176.20
Grand Total ₱2,245,010.25
5.10 This audit finding on fund transfers from NGAs that remained relatively idle for
several years has been the subject of the prior year’s audit observation that the
balances comprising the Due to NGAs account were unsubstantiated and were
already existing when the Municipal Accountant assumed Office in 2017.
Regardless, this remained unsubstantiated and/or unreturned to their respective
Source Agencies.
5.11 According to the Municipal Accountant, the lack of previous years’ records hindered
her in identifying the source agency/ies where the funds came from, year of receipt
63
and whether some funds have already been utilized for completed projects without
Fund Utilization Reports (FURs) or the liquidation thereof was inadvertently not
recorded in the books. Even so, she committed to coordinate with the Municipal
Engineer, Municipal Agriculturist, Municipal Social Welfare and Development
Office and other personnel concerned to continue the conduct of reconciliation of
the account against relevant records.
5.12 It is also noteworthy that in the course of our audit and as exhibited in Table 16, we
observed that the account included items with abnormal negative balances
amounting to ₱37,024.28 which were not investigated and adjusted in the books,
thereby casting doubt on the accuracy and reliability of the account.
5.13 In view of the foregoing, the accuracy of the Due to NGAs account balance as of
yearend could not be ascertained, affecting the fair presentation in the Financial
Statements, and the inability of the Municipality to return the remaining balances to
Source Agencies exposed the said funds to possible misapplication.
5.14 On the other hand, we found that although contract duration for the Construction of
River Wall project has lapsed and delays were incurred in completion, the
Municipality still certified/acknowledged completion of the projects and paid the
contractor without imposing liquidated damages. Perusal of the submitted contract
and Subsidiary Ledger of the Due to NGAs account, Table 17 shows the details and
summarizes the timeline of the implementation of the project.
Table 17. Timeline of the project implementation.

Date Particulars Amount
December 15, 2021 Issuance of Notice of Award
December 17, 2021 The Municipality of Leyte entered into an
agreement with Circle Z Ventures &
Development Corporation with a contract
amount of ₱10,979,998.98 and a contract
duration of 199 Calendar Days
December 22, 2021 Issuance and Receipt by the contractor of
Notice to Proceed (date of receipt - no
specified)
February 2, 2022 Payment of partial billing equivalent to 50% ₱4,940,999.54
work accomplishment, under check number
56646832
July 7, 2022 Target Date of Completion of the Project
(without any suspension of work and/ or
extension of contract period)
August 31, 2022 Payment of partial billing equivalent to 65% 1,482,299.86
56646893
October 21, 2022 Payment of partial billing equivalent to 90% 2,470,499.77
56646897
64
December 21, 2022 Payment of final billing equivalent to 100% 988,199.91
56646900
Total ₱ 9,881,999.08
5.15 After thorough review of pertinent transaction documents, we noted that neither
request from the contractor nor approval from the Municipal Mayor on the extension
of contract duration - citing the reason/s for such delay were attached in the
disbursement vouchers.
5.16 We have discussed the said audit deficiency with the Municipal Engineer and he
attested the existence of time extension during the implementation of the project due
to unfavorable weather conditions and was willing to comply with the submission of
the request and approval documents and its supporting records to substantiate such
claim. However, compliance has not been made to date.
5.17 Likewise, in order for the Audit Team to compute the liquidated damages to be
imposed, an Inspection Report or a Punch List as of the target date of completions is
required from the Municipal Engineer to determine the cost of unfinished portion of
the project. However, no inspection and report were made/ available, hence the cost
of the unfinished portion of the project as of the target date of completion cannot be
determined for computation of liquidated damages.
5.18 Failure by the contractor to fully and faithfully comply with its contractual
obligations without valid cause serves as grounds for imposition of liquidated
damages and/or administrative sanctions particularly termination of contracts,
forfeiture of performance security and recommended for blacklisting pursuant to
Sections 68 and 69, and Appendix 17 of the Revised IRR of R.A. 9184.
5.19 The aforementioned conditions manifest inefficiency in project implementat ion

caused by inadequate monitoring and insufficient action on the part of the
Municipality. The failure to impose liquidated damages further increased the
Municipality's vulnerability to potential losses, putting the municipality at a
disadvantage.
5.20 We recommended that the Municipal Accountant:
a. conduct verification, analysis, and validation of the balances of the Due to

NGAs accounts, determine the source agencies and the status of programs,
projects and activities for which funds were received and maintain
complete records of the same;
b. exhaust possible remedy to reconcile the balances of the account and effect
the necessary adjustments, as warranted; and
65
c. make representations with identified source agencies for the return of
unutilized balances.
5.21 Henceforth, the Municipal Mayor mandate the LGU officials designated as
Project-in-Charge to:
a. implement immediately the projects in accordance with the timeframe

provided for in the MOA to maximize the beneficial use of government
projects/program and the eventual return of unused funds, if any;
b. prepare the corresponding reports for each of the completed projects and
submit the same to the Accountant within one month from completion; and
c. report to the Municipal Mayor any project/program which cannot be

immediately implemented for proper disposition or referral to the Source
Agency/ies.
5.22 We also recommended that the Municipal Mayor direct:
a. the Municipal Engineer to strictly adhere to the project duration stipulated

per contract and exercise diligence in the inspection of completed projects
immediately after the reported date of completion to determine whether
projects were completed on time, with considerations to Variation Orders
or Time Extension, if any and ensure that all materials and prescribed
procedures conform with the Program of Work, Detailed Estimates and
Plan; and
b. the Municipal Accountant to impose Liquidated Damages, equal to one-

tenth (1/10) of one percent (1%) of the cost of the unfinished portion of the
project for each day of delay.
5.23 Also, to protect the interest of the government and to prevent further loss and
wastage of government funds and resources, we recommended that the
following measures for future projects of similar nature be undertaken:
a. Strictly monitor implementation of all projects, whether contracts for

infrastructure, goods or consulting services, in accordance with the
approved plans and specifications within the time frame specified in the
contract agreement; and
b. Identify contracts which require appropriate management actions. If so,
impose liquidated damages and/or administrative sanctions particularly
termination of contracts and blacklisting of contractors for failure to
comply with their obligations in accordance with the provisions of Sections
68 and 69, and Appendix 17 of the Revised IRR of R.A. 9184.
66
5.24 In the Exit Conference held on June 22, 2023, attended by the Municipal Mayor and
Department Heads of LGU Leyte, they concurred with the recommendations of the
Audit Team. The Municipal Accountant further committed to formulate remedies on
substantiation of long outstanding and/or unexpended balances.
5.25 On the other hand, the Municipal Engineer justified that the Construction of River
Wall project was not yet completed since a time extension was agreed and approved
due to unfavorable weather conditions, thus extending the completion date. He also
emphasized that, moving forward, they will strictly monitor proper implementation
of all projects funded by National Government Agency/ies - if they are in accord
with the approved plans and specifications within the time frame specified in the
contract agreement and effect appropriate management actions, if necessary.
Unsettled balances, liquidation beyond the prescribed period and erroneous entries of cash
advances
6. Cash advances are granted despite unsettled balances and liquidation beyond
the prescribed period, and Accountable Officers with expired fidelity bond
continued to perform their duties and functions contrary to the provisions of
COA Circular No. 97-002 and Treasurer Circular No. 02-2019 exposing to risks
of unrelieved losses of cash thru defalcations, robbery, and fire might not be
recovered. Moreover, there were erroneous entries of cash advance liquidation
in the books of accounts, contrary to Section 111 of Presidential Decree 1445
resulting in an understatement of Advances for Payroll account by
₱1,778,507.97.
accounts:
information.
6.2 COA Circular 97-002 dated February 10, 1997 modifying COA Circular 90-331,
dated May 30, 1990 provides rules and regulations on the granting, utilization and
liquidation of cash advances, to wit:
4. GRANTING AND UTILIZATION OF CASH ADVANCES
67
4.1 General Guidelines
4.1.1 No Cash advance shall be given unless for a legally specific

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

employee unless the previous cash advance given to him is first settled or
a proper accounting thereof is made.
4.1.3 A cash advance shall be reported on as soon as the purpose for

which it was given has been served.
xxx.
5. LIQUIDATION OF CASH ADVANCES
5.1 The AO shall liquidate his cash advance as follows:
5.1.1 Salaries, Wages, etc. - within five (5) days after each fifteen (15)
day/end of the month pay period.
5.1.2 Petty Operating Expenses and Field Operating Expenses - within

twenty (20) days after the end of the year; subject to replenishment as
frequently as necessary during the year.
5.1.3 xxx.
Failure of the AO to liquidate his cash advance within the prescribed

period shall constitute a valid cause for the withholding of his salary and
the instruction of other sanctions as provided for under paragraphs 9.2
and 9.3 hereof
5.8 All cash advances shall be fully liquidated at the end of each year.
Except for petty cash fund, the AO shall refund any unexpended balance
to the Cashier/Collecting Officer who will issue the necessary official
receipt.
5.9 At the start of an ensuing year, a new cash advance may be granted,
provided that a list of expenses against the previous cash advance is
submitted. However, when no liquidation of the previous cash advance is
received on or before January 20, the Accountant shall cause the
withholding of the AO's salary.
6.3 Moreover, Treasury Circular No. 02-2019 dated April 25, 2019 provides the Revised
Omnibus Regulations Governing the Fidelity Bond of Accountable Public Officers,
stating the following provisions:
68
4.1.2 Every officer, agent, and employee of an LGU whose duties permit
or require possession, custody or control of local government funds
and properties, including but not limited to regional/provinc ia l
governors, city/municipal mayors, provincial/city/municipal/
barangay/sangguniang kabataan treasurers, punong barangays, and
sangguniang kabataan chairperson, including those employed as job
order, contractual and casual employees, shall be accountable and
responsible for said public funds and properties for the safekeeping
thereof and shall be or his/her fidelity insured/bonded.
xxx.
4.3 Accountability of Public Funds – Every officer, agent and employee
accountable for public funds shall be liable for all losses resulting
from the unlawful deposit, use, or application thereof, and for all
losses attributable to negligence in the keeping of such funds.
xxx.
9.0 PENAL CLAUSE
Unjustified failure of an accountable public officer to comply with

the requirements to apply for Fidelity Bond pursuant to this circular
and the PBL shall be subject the responsible official/employee to
applicable criminal, and/or administrative liability under the Revised
Penal Code and PD No. 1445.
6.4 In CY 2022, the Municipality of Isabel granted cash advances to the Disbursing
Officer (DO) totaling ₱54,234,756.97, of which ₱53,544,638.97 appertain to
salaries/wages, honorarium, and the like were recorded in Advances for Payroll
account, and ₱690,118.00 for various Operating Expenses recorded in Advances to
Special Disbursing Officer account.
6.5 Perusal of the records on the grant and liquidation of cash advances authorized to be
expended and dispensed by the DO in CY 2022, records in the Cashbook maintained
by the latter, the reported transactions in General Ledger/Journals by the Accounting
Office and copies of approved Fidelity Bond disclosed various deficiencies, as
follows:
a. Expired fidelity bond
a.1 The DO has an approved Fidelity Bond of ₱750,000.00 with a maximum

accountability of ₱2.5M effective October 6, 2021 to October 5, 2022 under
NL-21-6159 OLR but was only renewed on April 18, 2023, consequently,
within those periods from October 6, 2022 to April 17, 2023 the DO does
not have an existing fidelity bond yet cash advances were continually
granted. We likewise noted that the DO and Municipal Treasurer have the
69
same bond coverage and renewal dates, nevertheless, both continued to
perform their duties and functions despite expiration of their fidelity bonds,
placing the Municipality at a disadvantage when loss of government funds
may arise due to any unforeseen events.
a.2 Upon inquiry, the Municipal Treasurer explained that they took a long time
to process their application using the new online application process of
Fidelity Bond, likewise, approval thereof consumed time than expected is
beyond their control. They have continued their usual work in the
Municipality despite expiration of bonds due to lack of information and
awareness of the consequences and prohibition appertained thereto.
b. Outstanding cash advances exceeded the maximum accountability covered by

the Fidelity Bond
b.1 Verification of the records also disclosed that additional cash advances
were granted despite the presence of unsettled and outstanding balances
and expired fidelity bond, while, related liquidation thereof were not
submitted and/or prepared within the prescribed period and additional cash
advances were granted despite unsettled balances which eventually
increases and accumulates the cash liability of the DO exceeding the
maximum accountability allowed in the applied Fidelity Bond, as shown in
Table 18.
Table 18. Schedule of the Grant and Liquidation of Cash Advances for CY 2022
Cash Advance granted Liquidation Excess
amount from
Outstanding
Period Covered Accumulated P2.5M
Date Amount Balance
CY 2022 Amount maximum
accountability
Jan.1 – Mar 18 ₱ 11,977,621.73 03/30/22 ₱3,905,393.93 ₱8,072,227.80 ₱ 5,572,227.80
Mar 31 1,139,289.87 04/06/22 2,385,963.35 6,825,554.32 4,325,554.32
Apr 13-May 13 4,803,592.48 5/19/22 6,681,296.44 4,947,850.36 2,447,850.36
May 30-June 8 1,852,211.76 06/09/22 3,179,883.08 3,620,179.04 1,120,179.04
6/13/22 229,391.43 3,390,787.61 890,787.61
June 15-June 23 7,116,715.66 6/22/22 39,700.00 10,467,803.27 7,967,803.27
6/27/22 1,918,398.61 8,549,404.66 6,049,404.66
June 30-July15 3,643,545.74 7/19/22 2,148,509.61 10,044,440.79 7,544,440.79
July 26 389,967.57 7/27/22 1,845,469.15 8,588,939.21 6,088,939.21
July 29-Aug 29 1,357,725.59 08/05/22 287,076.33 9,659,588.47 7,159,588.47
08/12/22 7,911,895.31 1,747,693.16
Aug 15 1,981,750.35 8/19/22 1,747,693.16 1,981,750.35
Aug 22-31 1,570,287.45 09/01/22 2,110,350.35 1,441,687.45
09/05/22 52,092.00 1,389,595.45
09/06/22 63,750.00 1,325,845.45
Sept 9-16 2,232,285.34 9/19/22 1,325,845.45 2,232,285.34
Oct 3 3,004,727.25 10/04/22 1,999,729.34 3,237,283.25 737,283.25
10/05/22 232,556.00 3,004,727.25 504,727.25
Oct 13-26 1,286,077.46 11/04/22 3,110,615.25 1,180,189.46
Nov 14 1,278,407.54 11/17/22 1,200,989.46 1,257,607.54
70
Cash Advance granted Liquidation Excess
amount from
Outstanding
Period Covered Accumulated P2.5M
Date Amount Balance
CY 2022 Amount maximum
accountability
Nov 18-Dec 13 7,738,400.71 12/13/22 23,000.00 8,973,008.25
Dec 14 214,232.00 12/14/22 2,911,994.42 6,275,245.83
Dec 27 1,797,894.20 12/27/22 857,562.50 7,215,577.53
Dec 28-29 850,024.27 12/29/22 6,227,093.83 1,838,507.97
TOTAL ₱54,234,756.97 ₱52,396,249.00
b.2 The DO’s practice of handling her cash advances exposes the risk of loss
of funds through misapplication and/or misappropriation, while,
defalcation, shortages, and unrelieved losses beyond the fidelity bond
might not be recovered.
6.6 Moreover, verification of the Report of Disbursement, General Ledger and Cash
Disbursement Journal disclosed delayed submission and liquidation of cash
advances as presented in Table 1, but recognition thereof per accounting records was
done on the same month when the cash advances were released, thus, the books of
account does not reflect the date-based submission of the related liquidat ion.
Consequently, the cash advances granted in December 2022 and submission of the
related Report of Disbursement/Liquidation Report were received in January 2023,
but were recognized as liquidated at yearend, details presented in Table 19:
Table 19. Report of Disbursement received on January 2023

Date received by
Date/s of cash advances Report of Total Amount
Accounting
granted to the DO Disbursement No. Liquidated
Office
Dec. 12-29, 2022 (GF) 100-2022-12A ₱ 1,663,357.35 01/23/2023
Dec. 12-27, 2022 (SEF) 200-2022-12 115,150.62 01/09/2023
Total ₱ 1,778,507.97
6.7 The misleading practice of the Accounting Office in recording of the above
transactions give rise to inaccurate information and balances in the Financial
Statement, as a result the Advances for Payroll account is understated ₱1,778,507.97.
6.8 We recommended that the Disbursing Officer, as well as the other Accountable
Officers timely monitor the effectivity and expiration dates of their respective
fidelity bond and see to it that renewal thereof be made before their expiration.
Henceforth, no Accountable Officer shall be allowed to perform their duties
and responsibilities with expired fidelity bonds.
6.9 We also recommended the Municipal Mayor require the:
a. Disbursing Officer to (i) timely liquidate her cash advances in

accordance with the pertinent rules and regulations, and (ii) reflect
accurate data in the cashbook including the date of liquidation thereof.
71
b. Municipal Treasurer shall ensure that no additional cash advances be
granted to the DO with outstanding balances thereof in accordance with
the provisions of COA Circular No. 97-002 to avoid accumulation of
unliquidated cash advances, and validate that cash advances granted to
DO does not exceed the maximum accountability covered by the fidelity
bond in order to protect the interest of the Municipality.
c. Municipal Accountant to accurately record the transactions as they

occur and prepare the necessary and duly supported adjusting entries
to ensure appropriateness and reliability of financial information of each
account.
6.6 Finally, we recommend strict compliance with the pertinent rules and
regulations in granting and utilization of cash advances provided in COA
Circular No. 97-002 and the bonding requirement in Treasury Circular No. 02-
2019.
6.7 The officials and employees concerned assented to the audit recommendations ,
guaranteed strict compliance on the aforementioned rules and regulations, and
assures timely liquidation accurately recorded in the books.
B. Compliance Audit
Recurring low utilization of the 20% DF and various deficiencies and errors/omissions
noted in the utilization and implementation under the fund
7. In CY 2022, the Municipality yielded a very low implementation rate of 9.18%

or only ₱12,593,259.52 was utilized out of the total appropriations , while
pertinent provisions governing the utilization and implementation of the 20%
Development Fund were not complied with, contrary to Section 287 of the
Republic Act 7160 and DBM-DOF-DILG Joint Memorandum Circular No. 1,
Section 9 of the Department of Budget and Management (DBM) Budget
Circular No. 2022-1, Presidential Decree No. 1445 and COA Circular No. 2012-
003, defeating the purpose for which the funds was created.
7.1 Section 287 of the Republic Act 7160, otherwise known as Local Government Code
of 1994, requires each Local Government Unit (LGU) to appropriate in the annual
budget no less than 20% of its Internal Revenue Allotment (IRA) for development
projects.
7.2 Likewise, DILG-DBM Joint Memorandum Circular No. 2017-1 as amended by

DBM-DOF-DILG Joint Memorandum Circular No. 1, dated November 4, 2020
provides guidelines on the Appropriation and Utilization of the Twenty Percent
(20%) of the Annual Internal Revenue Allotment (IRA) for development projects.
72
7.3 As part of the General Policies prescribed in Section 3 thereof, the JMC emphasized
in Section 3.2 that it is the responsibility of every LGU to observe the following
policies and guideline in the appropriation and utilization of the 20% Development
Fund (DF):
3.2.1 The 20% DF shall be utilized to finance the LGUs' priority development
projects, as embodied in their respective duly approved local
development plans, and medium-term and annual investment programs ,
which should be harmonized with the Regional Development Plan and
the Philippine Development Plan.
3.2.2 The development projects that may be included under the 20% DF shall
be those that are necessary, appropriate, or incidental to efficient and
effective local governance, and those which are essential to the
promotion of the general welfare of the people.
3.2.3 The LGUs shall ensure that the development projects to be funded out of
the 20% DF are well-planned and procurement and implementation
ready.
xxx
3.2.5 The following expenditure items shall not be allowed to be charged

against the 20% DF:
3.2.5.1 Personal Services expenditures, such as salaries, wages, overtime

pay, and other personnel benefits;
3.2.5.2 Administrative expenses, such as supplies, meals, representation,
communication, water and electricity, petroleum products, and
the like;
3.2.5.3 Traveling expenses, whether domestic or foreign;
3.2.5.4 Registration fees and other expenses related to the conduct of and
participation to trainings, seminars, conferences or conventions;
3.2.5.5 Purchase, maintenance or repair of administrative office'
furniture, fixtures, equipment or appliances; and
3.2.5.6 Purchase, maintenance or repair of motor vehicles used for
administrative purposes.
7.4 Section 4 of the DBM-DOF-DILG Joint Memorandum Circular No. 1, dated

November 4, 2020 expressly states: “The responsibility and accountability in
ensuring that the development projects funded under the 20% DF comply with the
guidelines under this JMC and optimally contribute to the attainment of desirable
socio-economic targets and outcomes of the LGU shall rest upon the local chief
executive and other officials concerned.”
73
7.5 Section 9.1 of the Department of Budget and Management (DBM) Budget Circular
No. 2022-1 for the Acquisition, Use, Rental and Replacement of Government Motor
Vehicles provides:
9.0 Policy on the Acquisition of Secondhand/Reconditioned Motor Vehicles
9.1 For purposes of economy and efficiency and to ensure the prudent and
judicious use of government resources, the acquisition of all
secondhand/reconditioned motor vehicles, except for aircraft and seacraft,
regardless of the source of funds and approving authority, shall be
prohibited.
xxx
7.6 Section 2 of P.D. No. 1445 otherwise known as the State Audit Code of the
Philippines explicitly imposes that it is the declared policy of the State that all
resources shall be managed, expended or utilized in accordance with law and
regulations, and safeguarded against loss or wastage through illegal or improper
disposition, with a view to ensuring economy, efficiency and effectiveness in the
operations of the government. The responsibility to take care that such policy is
faithfully adhered to rests directly with the chief or head of the government agency
concerned.
7.7 Section 58 of the same law states that examination and audit of assets shall be
performed with a view of ascertaining their existence, ownership, valuation and
encumbrances as well as the propriety of items composing the respective asset
account, determining their agreement with records, proving the accuracy of such
records, ascertaining if the assets were utilized economically, efficiently and
effectively, and evaluating the adequacy of controls over the accounts.
7.8 Lastly, COA Circular No. 2012-003 was issued last October 29, 2012 for the updated
guidelines on the prevention and disallowance of irregular, unnecessary, excessive,
extravagant and unconscionable expenditures and item 5.1 of Annex B provides
situational cases when to consider illegal expenditures of government funds:
5. Use of public funds for private purposes [Section 4(2) of P.D. No. 1445],
such as:
5. 1 For repair/rehabilitation or construction of multi-purpose building of a

specific cooperative composed of private individuals where the lot and
building subject of improvement are privately owned (COA Decision
No. 2008-127 dated December 24, 2008). xxx
7.9 For CY 2022, the Municipality received its Internal Revenue Allotment (IRA)
amounting to ₱190,615,583.00 where it appropriated ₱38,123,116.60 for the
identified ten priority development programs, projects and activities under its 20%
74
DF. In addition, nine PPAs through Supplemental Budget No. 1 were enacted in
August 22, 2022 from realigned funds and the continuing appropriation from prior
years amounting to ₱98,992.154.28 as contained in their Annual and Supplemental
Investment Plan.
7.10 Verification of the Record of Appropriations and Obligations (RAO) and Utilizat ion
Report as of December 31, 2022 revealed that only ₱12,593,259.52 or 9.18% was
utilized from the current and continuing appropriations for the 20% Development
Fund of the Municipality. Details are presented below.
Supplemental
Source of Funds Appropriation with Reversion/ Utilization Balance
Augmentation
Current
₱38,123,116.60 - ₱4,190,275.15 ₱33,932,841.45
Appropriations
Continuing
98,992,154.28 - 8,402,984.37 90,589,169.91
Appropriations
Total ₱137,115,270.88 - ₱12,593,259.52 ₱124,522,011.36
Percentage 9.18% 90.82%
7.11 The issue on low utilization of the 20% Development Fund has become recurring on
every Annual Audit Reports of LGU Isabel. Validation confirmed that same is true
for CY 2022 that projects were not implemented due to insufficient cash, as these
were used to defray other necessary expenses of the municipality, thus proves that
cash for the Development Fund or 20% of the monthly IRA were not set aside for
such purpose. As a result, the constituents were deprived of the immediate benefits
or facilities that could have been obtained had the development projects have been
promptly implemented. Likewise, economic development may have been hampered
due to failure of the Municipal Government to optimally utilize these funds for
development projects.
7.12 On the other hand, scrutiny of the Annual Budget and Annual Investment Plan (AIP)
uncovered deficiencies and errors/omissions, to wit:
a.) imprecise particulars of identified priority development projects

a.1 We noted that various appropriations under the 20% Development Fund in
CY 2022 and prior years were not specifically identified in the Annual
Budget and AIP. As highlighted in Appendix G.6, only general description
and lump sum amount of the PPAs to be undertaken for the year were
presented, thus, defeated Section 3.2.3 of DBM-DOF-DILG JMC No. 1
that the LGUs shall ensure that the development projects to be funded out
of the 20% DF are well-planned, procurement and implementation-ready.
At the same time, proper monitoring and evaluation of the PPAs
implemented during the year cannot be made immediately.
a.2 The AIP is a tool or guide in the development efforts of every local
government unit. This is not only a listing of projects with a sensible
75
allocation for optimum use of scarce resources but a product of discussions,
recommendations and agreements among members of the Local
Development Council as proof of genuine partnership between the LGU
and its constituents with the end view of uplifting the economic and social
conditions of the people in the locality.
b.) acquisition of secondhand/reconditioned motor vehicle (MV)

b.1 The Audit Team observed that the Municipality appropriated ₱1.2 million
for the acquisition of four (4) Rent-to-Own vehicles intended for garbage
collection and as rescue vehicles from the realigned funds. Analysis of the
Supplemental Budget or Supplemental Investment Plan and respective
contract/lease agreement, exposed that the said vehicles acquired were
reconditioned, hence, a violation to Section 9.1 of the DBM Budget
Circular No. 2022-1 that prohibits the acquisition of all
secondhand/reconditioned motor vehicles.
b.2 Regardless of acknowledgment from the Revised Implementing Rules and

Regulation of Republic Act No. 9184 on lease purchase or rent-to-own as
an alternative mode of acquisition, it is limited only to outright purchase of
brand-new units and acquisition by assembly that may be resorted if: (i)
brand-new vehicles are not available in the locality, or if available, the cost
is prohibitive because of the distance from the nearest market source: or (ii)
the assembled vehicle is deemed more durable as the design and type or
parts used are more suitable to the road condition/ terrain in the locality
such as in remote barangays/ municipalities.
b.3 Justification for this alternative mode, indicating that it is more

advantageous to the government, shall be included in its request for
Authority to Purchase Motor Vehicles (APMV) which is subject for
approval by the Local Chief Executive and from the Secretary of Budget
and Management, if motor vehicles are acquired by assembly.
c.) acquisition of existing Multi-Purpose Building at Brgy. Libertad

c.1 Post-audit of pertinent transaction documents on the acquisition Multi-
Purpose Building at Brgy. Libertad revealed that the said structure was
owned by Engr. Saylito M. Purisima. On top of that, the lot where the
Multi-Purpose Building is erected is owned by National Development
Company (NDC) and use of such property is covered by an undated 20-
year Contract of Usufruct between NDC and the Municipality from
December 14, 2009 to December 14, 2029.
c.2 The acquisition involves an agreed amount of ₱6,200.000.00, for which the
Municipality appropriated ₱2,500,000.00 and ₱3,500,000.00 in CY 2020
and prior years, respectively. As of writing, the Municipality has paid ₱2.5
76
Million under check no. 00076422679, dated February 28. 2022 and an
unreleased three million obligation due to Engr. Purisima.
c.3 It is also noteworthy that 3.5 of the Contract of Usufruct stipulates that
“After the end of the usufruct period, the usufructuary shall have the option
to return the property to its original condition or leave the permanent
improvements to the owner without any obligation on the part of the owner
to reimburse the usufructuary for the cost thereof.” This demonstrates that
the Municipality acquired a property on a lot not owned by them,
concurring to item 5.1 of Annex B of the COA Circular No. 2012-003 that
use of public funds for construction of multi-purpose building where the
lot under usufruct.
7.13 Due to minimal utilization of the subject fund and the non-compliance with DBM-
DOF-DILG Joint Memorandum Circular No. 1 on the implementation of the
identified PPAs, the intended purpose and objectives of creating the Development
Fund which is to achieve the desired socio-economic development of the
constituents, as outlined in the Annual Investment Plan, may not have been attained.
7.14 We recommended that the Municipal Mayor, together with the Municipal
Planning and Development Coordinator, Municipal Engineer and Municipal
Budget Officer:
a. render satisfactory explanation on abovementioned deficiencies and

errors/omissions in the utilization and implementation of the 20%
Development Fund;
b. strictly adhere to Section 287 of the Republic Act 7160 and pertinent
provisions of DBM-DOF-DILG Joint Memorandum Circular No. 1, dated
November 4, 2020 and relevant/applicable law, rules and regulations to
ensure that maximum attainment of desired socio-economic development
and environmental management outcome of the Municipality is achieved
and for the realization of the intended purpose of the fund; and
c. conduct a careful evaluation in preparing Local Development Plan and
Annual/Supplemental Investment Plan, respectively, and to itemize the
PPAs to facilitate proper monitoring and evaluation. Identify, first and
foremost, those considered vital and urgent to the Municipality and include
in the AIP only those that can be implemented during the year through
proper scheduling.
7.15 This audit observation is without prejudice to the issuance of Notice of

Suspension/Disallowance, if warranted.
7.16 Per written reply, the Municipality acknowledges deficiencies, satisfactorily

explained the condition corollary from the previous administration’s identified 20%
EDF PPAs that were currently modified to suit the most urgent need of the
Municipality with their limited resources, further ambiguous PPAs were addressed
77
and resolved in their latest CY2023 budget formulation. Moreover, the LGU ensures
an appropriate investigation and pleaded for a considerable time extension to conduct
a formal resolution on the unwarranted acquisition of Multi-Purpose Building. As
for the rent-to-own reconditioned vehicle, the Local Chief Executive subscribed with
the interpretation of the Audit Team that the lease agreement is considered one of
the alternative modes of procurement. He emphasized that they resorted to the said
scheme considering that the period under audit was a transition period from the
previous administration. He further stressed that the scarcity of funds and the
unavailability of motor vehicle to cater the needs of the municipality, particularly the
Solid Waste Management, which the LGU considered as urgent, prompted the
administration to resort to such scheme. Henceforth, he vowed to strictly observe
the aforementioned specific provisions
7.17 The Audit Team would like to highlight solely the earnest preference of the LGU for
the acquisition of reconditioned MV rather than brand new MV and the necessary
submission of APMV.
Uninsured government assets and properties with the General Insurance Fund
8. Properties amounting to ₱268,931,138.02 were not covered by insurance with

the Government Service Insurance System (GSIS), contrary to pertinent
provisions of Republic Act No. 656 and COA Circular 2018-002, depriving the
municipality of adequate and reliable protection against any damage to or loss
of their properties due to fire, earthquake, storm, flood or other fortuitous
events/casualty.
8.1 Pertinent provisions of RA No. 656, otherwise known as the Property Insurance Law,
prescribes that:
Section 4. Definitions. – For the purposes of this Act –
xxx
(c) “Property” includes vessels and craft, motor vehicles, machineries,

permanent buildings, properties stored therein, or in buildings rented by
the Government, or properties in transit.
xxx
Section 5. Every government, except a municipal government below first

class, is hereby required to insure its properties, with the Fund against any
insurable risk herein provided and pay the premiums thereon, which,
however, shall not exceed the premiums charged by private insurance
companies: Provided, however, That the System reserves the right to
disapprove the whole or a portion of the amount of insurance applied for:
Provided, further, That such property or part thereof as may not be insurable
78
or acceptable for insurance may be insured with any private insurance
company… Xxx
xxx
Section 11. Each government as defined herein shall include in its annual
appropriation the amount necessary to cover the premiums for the insurance
of its properties during each fiscal period and remit the same immediately to
the System as provided in section ten hereof.
8.2 Moreover, COA Circular 2018-002 dated May 31, 2018 was issued on the subject:
“Guidelines prescribing the submission of Property Inventory Form as basis for the
assessment of general insurance coverage over all insurable assets, properties and
interests of the government with the General Insurance Fund of the Government
Service Insurance System.” The said circular was established to assist in the
implementation of the provisions of RA No. 656, as amended, on the insurance and
bonding of risks on insurable government assets and properties with the General
Insurance Fund.
8.3 As of December 31, 2022, the Statement of Financial Position showed insurable
properties owned by the Municipality with a total value of ₱268,931,138.02, to wit:
Table 20. Insurable properties owned by the Municipality

Balance as of
PPE Accounts
12/31/2022
Buildings ₱ 33,929,027.84
School Buildings 13,657,887.22
Hospitals and Health Centers 3,179,572.28
Markets 41,079,529.91
Slaughterhouse 877,665.14
Machinery 9,990.00
Office Equipment 3,325,166.35
Information and Communication
2,892,879.59
Technology Equipment
Agricultural and Forestry Equipment 6,437,269.50
Construction and Heavy Equipment 1,020,902.17
Disaster Response and Rescue Equipment 5,605,977.61
Military and Police Equipment 79,879.95
Medical Equipment 1,632,399.36
Sports Equipment 26,533.74
Technical and Scientific Equipment 1,708,894.12
Other Machineries and Equipment 3,229,688.22
Motor Vehicles 4,711,456.43
Watercrafts 264,238.75
Other Transportation Equipment 994,815.26
Furniture and Fixtures 1,906,336.16
Other Property, Plant and Equipment 32,290,781.64
Total ₱ 268,931,138.02
79
8.4 By definition, “Property” includes vessels and craft, motor vehicles, machineries,
permanent buildings, properties stored therein (i.e., furniture, fixtures, equipment,
supplies and materials, etc.) or in buildings rented by the Government, or properties
in transit, the ownership of which had already been passed to the Municipality.
8.5 Post-audit of pertinent transaction documents and verification conducted on the

insurable properties revealed that only various serviceable motor vehicles, whose
LTO Registrations were also renewed, and those properties/projects under financing
agreement with Development Bank of the Philippines (DBP), namely: Construction
of Integrated Transport Terminal, Construction of Bulk Water Project and Solar
Panel at the Municipal Building were covered with insurance. While other properties
of the Municipality as abovementioned are yet to be insured with the GSIS.
8.6 Moreover, perusal of the Annual/Supplement Budget or any revision thereof

disclosed that, except for motor vehicles and projects financed by DBP, the
Municipality has not appropriated any amount for the insurance of other properties,
8.7 Consequently, the inability of the Municipality to insure its property with the
Property Insurance Fund of the GSIS exposes the government properties to the risk
of not being indemnified for any damage to or loss of their properties arising from
fire, flood, earthquake, storm and/or other force majeure.
8.8 We recommended that the Municipal Mayor direct the:
a. Municipal General Service Officer to determine the LGU properties, with

their correct total cost including any improvement cost, not yet covered by
insurance and facilitate the filing/application for the necessary insurance
coverage of all identified properties with the GSIS under the Property
Insurance Fund to ensure that any loss or damage to the same will be
indemnified by the insurer pursuant to RA No. 656 and COA Circular
2018-02; and
b. Local Legislative Body to include in the appropriation ordinance of the

Municipality the amount necessary for the insurance coverage of LGU
properties.
8.9 In the exit conference, the GSO attested that the Management is currently gathering
data and/or documents needed to start the process of insuring some property/ies and
equipment owned by the Municipality. Likewise, the Municipal Mayor and Budget
Officer assured the Audit Team that insurance coverage of the properties will be
incorporated in the upcoming CY 2024 budget hearing/ preparation.
Numerous procurements made through reimbursement basis
80
9 The Municipality was deprived of competitive procurement when it opted for
reimbursement of various supplies and materials, meals and other maintenance
and operating expenses totaling ₱323,474.83, instead of direct procurement
from suppliers, contrary to Section 48.2 of the Revised Implementing Rules and
Regulations (IRR) of R.A. No. 9184 and COA Circular No. 97-002, which could
result in higher costs, decreased transparency, limited supplier options, and a
potentially compromised procurement process .
9.1 In Section 48.2 of IRR RA 9184, otherwise known as the Government Procurement
Reform Act, states:
In accordance with Section 10 of this IRR, as a general rule, the Procuring

Entities shall adopt competitive bidding as the general method of
procurement and shall see to it that the procurement program allows
sufficient lead time for such competitive bidding. Alternative methods of
procurement shall be resorted to only in highly exceptional cases provided
for in this Rule.
9.2 While, COA Circular No. 97-002, also provides:
Ideally, cash should be handled under the general principles of the imprest
system, to wit:
1. Daily receipts on collections must be deposited intact with the proper

bank.
2. All payments must be made by check.
3. Only payments in small amounts may be made through the petty cash
fund. Replenishment of the petty cash fund shall be equal to the total
amount of expenditures made therefrom.
In practice, however, there are certain instances when it may he very

difficult, impractical or impossible to make payments by check, In such a
case, payments may be made by the disbursing officer in the form of cash
through his cash advance.
9.3 Post-audit of the submitted paid DVs and the supporting documents of the
Municipality of Isabel for the period January to December 2022 revealed numerous
procurements made through reimbursement basis, including receipts from prior
years, by officials and employees totaling P323,474.83 (Appendix G.7). It was
observed that most of the reimbursed expenditures were regular expenses of the LGU
specifically office supplies, medical supplies, drinking water, internet subscription,
and the like. Scrutiny of its supporting documents exposes that the majority of the
disbursements were only supported by DVs, official receipts, Obligation Request
81
and Status, Acceptance and Inspection Reports (AIRs), and attendance sheets for
meals and snacks.
9.4 The reimbursement of expenses was made through alternative method of

procurement specifically shopping and/or small value procurement, even there is no
foreseen contingency nor proof that the procurement of supplies and materials were
not available in the Procurement Service, which the cases are allowing the use of
shopping. Thus, circumvents the conditions on the use of the alternative methods of
procurement, likewise, the act of reimbursing the personnel for the advanced
payment of an item is more an act of payment than an act of procurement contrary
to the above-cited provisions of law.
9.5 Upon inquiry with MGSO, he explained that it has been the practice of the
Municipality to reimburse expenses with an amount limit of P3,000.00 to
immediately address the urgent need for supplies and materials such as sudden
unexpected vehicle or equipment repairs.
9.6 Most of the reimbursed expenses were regular expenditures of the LGU crucial to
the efficient discharge of its government functions that were estimated and
determined during the budget preparation incorporated in the Annual Procurement
Plan, which includes foreseeable emergencies based on historical records, which
should be regularly reviewed and updated. Reimbursement hereof indicates poor
planning and inefficient procurement actions that impede the conduct of proper
procurement procedures in accordance with RA 9184, thus, depriving the
government of competitive procurement.
9.7.1 Municipal Officials and Employees to stop the practice of procuring goods
and services on a reimbursement basis.
9.7.2 Municipal Accountant and the Municipal Treasurer to ensure that all
payments are made by check directly to the creditor to whom the money is
due.
9.7.3 Bids and Awards Committee to strictly adhere to the provisions of IRR RA
9184 on the use of Alternative Methods of Procurement if public bidding is
not feasible.
9.8 We also recommended the Municipal Mayor, through the authorization of the
Sangguniang Bayan, establish a Petty Cash Fund with an amount sufficient to
cover the emergency and petty operating expenses of the Municipality for one
month and appoint a duly bonded Petty Cash Custodian, that will manage and
safeguard the fund in accordance with the rules and regulations of Petty Cash
Fund.
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9.9 The Officials concerned accepted and agreed with the recommendations, as a
resolution Petty Cash Fund will be established and reimbursement will ceased.
Inadequately supported contracts totaling ₱20,044,064.90
10. Contracts funded out of various funds for the procurement of infrastructure
projects and goods totaling ₱20,044,064.90 were not sufficiently documented,
contrary to various provisions of the Revised Implementing Rules and
Regulations of R.A. 9184 and Section 9 of COA Circular 2012 -001, thus, the
veracity of the awarded contracts and payments thereof are doubtful.
10.1 Pertinent provisions of the 2016 Revised Implementing Rules and Regulations of
Republic Act 9184 states:
xxx
7.1 All procurement shall be within the approved budget of the Procuring
Entity and should be meticulously and judiciously planned by the
Procuring Entity. Consistent with government fiscal discipline measures,
only those considered crucial to the efficient discharge of governmental
functions shall be included in the Annual Procurement Plan (APP)…Xxx.
The APP shall include provisions for foreseeable emergencies based on
historical records. In the case of Infrastructure Projects, the APP shall
consider the appropriate timing/phasing of related project activities, such
as, engineering design and acquisition of right-of-way site or location, to
reduce/lower project costs.
7.2. No procurement shall be undertaken unless it is in accordance with the

approved APP, including approved changes thereto. The APP must be
consistent with the duly approved yearly budget of the Procuring Entity
and shall bear the approval of the HoPE or second-ranking official
designated by the HoPE to act on his behalf
xxx
12.1 The Bids and Awards Committee shall have the following functions: (a)
advertise and/or post the invitation to bid/request for expressions of
interest; (b) conduct pre-procurement and pre-bid conferences; (c)
determine the eligibility of prospective bidders; (d) receive and open bids;
(e) conduct the evaluation of bids; (f) undertake post-qualification
proceedings; (g) resolve requests for reconsideration; (h) recommend
award of contracts to the HoPE or his duly authorized representative…Xxx;
and m) perform such other related functions as may be necessary, including
the creation of a Technical Working Group (TWG) from a pool of
technical, financial, and/or legal experts to assist…
xxx
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13.1 To enhance the transparency of the process, the BAC shall, during the
eligibility checking, shortlisting, pre-bid conference, preliminary
examination of bids, bid evaluation, and post-qualification, invite, in
addition to the representative of the COA, at least two (2) observers, who
shall not have the right to vote…
xxx
17.1 The Bidding Documents shall be prepared by the Procuring Entity
following the standard forms and manuals prescribed by the GPPB. The
Bidding Documents shall include the following:
a) ABC;
b) Invitation to Bid/Request for Expression of Interest;
c) Eligibility Requirements;
d) Instructions to Bidders, including scope of bid, documents
comprising the bid, criteria for eligibility, bid evaluation
methodology/criteria in accordance with the Act, and post-
qualification, as well as the date, time and place of the prebid
conference (where applicable), submission of bids and opening of
bids;
e) Terms of Reference, for Consulting Services;
f) Scope of work, where applicable;
g) Plans/Drawings and Technical Specifications;
h) Form of Bid, Price Form, and List of Goods or Bill of Quantities;
i) Delivery Time or Completion Schedule;
j) Form, Amount, and Validity Period of Bid Security;
k) Form, Amount, and Validity of Performance Security and
Warranty; and
l) Form of Contract and General and Special Conditions of Contract.
xxx
32.3 After all bids have been received, opened, examined, evaluated, and
ranked, the BAC shall prepare the corresponding Abstract of Bids. All
members of the BAC shall sign the Abstract of Bids and attach thereto
all the bids with their corresponding bid securities and the minutes or
proceedings of the bidding.
xxx
37.1.6 The BAC, through the Secretariat, shall post within three (3) calendar
days from its issuance the Notice of Award in the PhilGEPS, the website
of the Procuring Entity, if any, and any conspicuous place in the premises
of the Procuring Entity.
xxx
37.2.3 The following documents shall form part of the contract:
a) Contract Agreement;
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b) Bidding Documents;
c) Winning bidder’s bid, including the Eligibility requirements,
Technical and Financial Proposals, and all other
documents/statements submitted;
d) Performance Security;
e) Notice of Award of Contract; and
f) Other contract documents that may be required by existing laws
and/or the Procuring Entity concerned in the Bidding Documents,
such as the construction schedule and S-curve, manpower
schedule, construction methods, equipment utilization schedule,
construction safety and health program approved by the
Department of Labor and Employment, and PERT/ CPM or other
acceptable tools of project scheduling for infrastructure projects
37.4.1 The concerned Procuring Entity shall issue the Notice to Proceed
together with a copy or copies of the approved contract to the successful
bidder within seven (7) calendar days from the date of approval of the
contract by the appropriate government approving authority. All notices
called for by the terms of the contract shall be effective only at the time
of receipt thereof by the successful bidder.
37.4.2 The Procuring Entity, through the BAC Secretariat, shall post a copy of
the Notice to Proceed and the approved contract in the PhilGEPS and the
website of the Procuring Entity, if any, within fifteen (15) calendar days
from the issuance of the Notice to Proceed
xxx
39.1 To guarantee the faithful performance by the winning bidder of its
obligations under the contract in accordance with the Bidding
Documents, it shall post a performance security prior to the signing of
the contract.
xxx
40.1 If the bidder with the LCRB, HRRB, SCRB or SRRB fails, refuses or is
unable to submit the documents required under Section 37.1 of this IRR
or to make good its bid by entering into a contract with the Procuring
Entity or post the required Performance Security within the period
stipulated in this IRR or in the Bidding Documents, the bid security shall
be forfeited and the appropriate sanctions shall be imposed provided in
this IRR and existing laws, except where such failure, refusal or inability
is through no fault of the said bidder
10.2 Moreover, Section 1 of Annex A of the RIRR of RA 9184 provides:
Detailed engineering shall proceed only on the basis of the feasibility or

preliminary engineering study made which establishes the technical viability of
85
the project and conformance to land use and zoning guidelines prescribed by
existing laws. The findings contained in the feasibility study, if undertaken for
the project, shall be examined…Xxx
10.3 Section 3(i) of the same annex specifies:
i) Before prosecuting any project, the necessary program of work shall be

prepared and submitted for approval. In no case shall construction funds be
remitted to field offices or construction work on a project be started before
the program of work is approved, in accordance with existing laws.
No program of work for any project shall be approved without detailed
engineering.
10.4 Lastly, Section 9 of COA Circular No. 2012-001 dated June 14, 2012 enumerates
among others the basic documentary requirements for all types of procurement
through public bidding.
10.5 In CY 2022, the Municipality of Isabel awarded 13 contracts to various contractors

pertaining to the procurement of infrastructure projects and goods funded out of the
20% Development Fund (DF), Capital Outlay appropriations and other funds
totaling ₱20,044,064.90 (Table 21).
Table 21. List of Contracts awarded in CY 2022

Contract
No. Name of the Project Contractor
Amount
1 * Procurement of various processed food for gift ABS Marketing ₱ 498,400.00
pack of all Job Order Personnel and General
Merchandise
2 Landscaping of New Rural Health Unit JCAL M. 799,618.68
Merchandise
3 * Construction of Covered Court and Evacuation Gracel's 2,499,500.00
Center Phase II at Brgy. Tubod Enterprises
4 * Procurement of Services for De-clogging of Maga Construction 249,850.00
Canal at Brgy. Marvel and Supplies
5 Procurement of 2-unit Ventilation System and JV Enterprise 1,197,000.00
Accessories at Multi-Purpose Building at
Brgy. Apale
6 Procurement of Various Medical/ Medicine BAJ 1,611,311.50
Supplies Pharmaceuticals
7 Road Concreting at Brgy Tolingon (255m x 2m Chamicos Builders 995,273.98
x .15m)
8 * Procurement (Rent to Own) of 1 unit Rescue Cebu Titan 537,000.00
Vehicle, 6-wheeler Reconditioned Surplus Surplus, Inc.
Truck
9 * Procurement (Rent to Own) of 2 units Mini Cebu Titan 2,156,000.00
Dump Truck, 6-wheeler Reconditioned Surplus, Inc.
Surplus Truck
10 * Procurement (Rent to Own) of 1 unit Rescue Cebu Titan 2,047,500.00
Vehicle, 6-wheeler Reconditioned Surplus Surplus, Inc.
Truck
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Contract
No. Name of the Project Contractor
Amount
11 * Procurement and Installation of Municipality WJ Builders 2,266,020.00
wide CCTV Surveillance Camera and
Wireless Network
12 * Repair of Market Tiles and Drainage Chamicos Builders 1,193,253.52
13 * Road Concreting at Isabel Public Market Chamicos Builders 3,993,337.22
TOTAL ₱20,044,064.90
* discussed in Paragraph 10.6.3
10.6 Scrutiny of the contracts uncovered deficiencies and non-submission/absence of the

following documents:
a. Non-attachment of Annual Procurement Plan (APP) and/or Project

Procurement Management Plan (PPMP)
10.6.1 The APP is the document that consolidates the various PPMPs submitted by
the various PMOs and end-user units within the Procuring Entity. It reflects
the entirety of the procurement activities that will be undertaken by the
Procuring Entity within the calendar year. The basic content of the plan shall
include the decisions as to the type of contract to be employed, the extent/size
of contract scopes, the procurement methods to be adopted, along with the
expected time schedule for each procurement action.
10.6.2 A review and updating of the individual PPMPs and the APP shall be done
regularly, at least once every six months or as often as may be required by
the HoPE. The review and updating of the PPMPs will be done by the
respective PMO, end-user or implementing units of the procuring entities.
These units may avail of the services of technical experts to review the
individual PPMPs. The updated PPMPs will then be submitted to the BAC
Secretariat for consolidation into an updated APP, which will be subject to
the approval of the HoPE.
10.6.3 Perusal of the presented APPs for CYs 2021 and 2022, we noted that seven
awarded contracts were neither incorporated in the said plan nor a
supplemental/revised APP were executed to update the list of programs,
projects or activities to be undertaken prior to commencement of any public
bidding as prescribed under Section 7 of the Revised IRR of the RA No.
9184, while contracts 3 and 4 in Table 1 could not be validated whether or
not embodied in the plan or not due to unobtained CY 2020 APP.
Consequently, the said projects could not be ascertained if they were properly
planned and implemented within the time frame.
10.6.4 We further uncovered that, regardless of inclusion in the Annual

Procurement Plan, landscaping project in the new Rural Health Unit (item 2
in Table 1) was awarded and partially paid without appropriations in the
Annual/Supplemental Budget or any revision of the budget, contrary to
Section 4(1) of Presidential Decree (PD) 1445 which prohibits the use of
87
public funds unless an appropriation appurtenant thereto had been made,
thus, the transaction departs with the afore-cited law.
b. non-preparation of plans/drawings
10.6.5 Contract for the procurement of infrastructure projects submitted by the

Municipality were not supported with plans/drawings, hence inconsistent
with the provisions of Annex A of the RIRR of RA 9184 that no bidding and
award of contract for Infrastructure Projects shall be made unless the detailed
engineering investigations, surveys and designs, for the project have been
sufficiently carried out and duly approved in accordance with the standards
and specifications prescribed by the HoPE concerned or his duly authorized
representative, pursuant to the recommendation of the end-user or
implementing unit. Consequently, the related expenditures could not be
evaluated if they were properly implemented and/or in accordance with
standards adopted by the Municipality.
c. absence of evidences of invitation to COA and other observers at any stage of

the bidding process
10.6.6 The Audit Team observed that the BAC failed to attach evidences inviting
COA representatives and other observers at any stage of the bidding process
pursuant to Section 13 of the Revised IRR of RA 9184, thus results of
evaluation derived therefrom were doubtful.
10.6.7 It is worth mentioning that, in addition to the representative of the COA, at

least 2 observers, who shall not have the right to vote, are invited to sit in its
proceedings where at least one (1) shall come from a duly recognized private
group in a sector or discipline relevant to the procurement at hand and other
observer shall come from a Non-Government Organization (NGO).
Moreover, observers shall be invited at least five (5) calendar days before the
date of the procurement stage/activity. The absence of observers will not
nullify the BAC proceedings, provided that they have been duly invited in
writing. The Procuring Entities should ensure that the invitation is received
at least five (5) calendar days before each procurement activity. In the event
that a procurement activity has to be postponed, the observers shall be
notified immediately of the change in schedule.
d. non-preparation of Abstract of Bids as Calculated
10.6.8 Bids shall then be ranked in the ascending order of their total calculated bid
prices, as evaluated and corrected for computational errors, and other bid
modifications, to identify the Lowest Calculated Bid. Total calculated bid
prices, as evaluated and corrected for computational errors, and other bid
modifications, which exceed the ABC shall be disqualified.
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10.6.9 Interview with the BAC personnel disclosed that bid opening and bid
evaluation are done simultaneously but unfortunately overlooked the
preparation/inclusion of the Abstract of Bids as Read in the contract.
e. failure to require contractors to provide DOLE approved Construction Safety

and Health Program
10.6.10 As per inquiry with the Municipal Engineer on this omission, he explained
that he was unaccustomed of the inclusion of work item Construction Safety
and Health as pay item for every infrastructure project. Also, the BAC
overlooked to require the winning bidder to submit the DOLE approved
CSHP during the post qualification as provided in Section 34.1 of the
Revised IRR of RA 9184 that the lowest calculated bid/highest rated bid
shall undergo post-qualification in order to determine whether the bidder
concerned complies with and is responsive to all the requirements and
conditions as specified in the bidding documents, instead the BAC only
obliged the winning bidder to render contractor’s CSHP.
10.6.11 Such deficiency is contrary to Item G.2.A.1 of the Procedural Guidelines of

the DOLE DO No. 13, which provides the procedures in the filing and
processing/evaluation of the CSHP. The Contractor-Applicant shall submit
at least two copies of the CSHP (containing provisions that comply with the
minimum requirements of such department order and applicable
requirements indicated in Section F of the Procedural Guidelines) for
evaluation and approval of the DOLE.
10.6.12 The contention that it is the responsibility of the contractor to provide safety
gears for their workers, DPWH D.O. No. 56 s. 2005 provides that the PPEs
shall be provided by the Constructor, and its cost shall be duly quantified
and made part of the overall cost of safety and health (SPL).
10.6.13 The strict implementation of Occupational Safety and Health in the

Construction Industry is contained in a MOA entered into among DOLE-
DPWH-DTI-CMDF, PCAB-DILG-PRC and JAO. In line with this the
DPWH issued D.O. No. 56 s. 2005 which set forth guidelines, rules and
procedures to be followed by all concerned. Likewise, Occupational Safety
and Health pay item is necessary in the implementation of infrastructure
projects regardless of amount.
10.6.14 From the foregoing, due to the absence of the approved CSHP, there is a
possibility that the CSHP submitted by the winning contractor was not
compliant with the requirements of DOLE Department Order No. 13 and
the non-inclusion of Occupational Safety and Health as pay item of the
project convey that there is no assurance that workers of these projects were
adequately protected against occupational risks.
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f. non-posting of Notice of Award, Purchase Order/Contract and Notice to
Proceed
10.6.15 Audit conducted disclosed that the Invitations to Bid were posted in the
PhilGEPS website. However, the postings of the NOA, approved
contract/PO and the NTP in the PhilGEPs website, the website of the
Procuring Entity, if any, and any conspicuous place in the premises of the
Procuring Entity, were not practiced by the BAC, thus, attachment of the
said documents in the submitted contracts or in the Disbursement Vouchers
(DVs) was not adopted by their office.
10.6.16 BAC Secretariat personnel acknowledged this omission and committed to

start posting the said documents in the PhilGEPS website, the website of
the Procuring Entity, if any, and any conspicuous place in the premises of
the Procuring Entity. This is in line with the policy of the Government that
procurement of Goods, Infrastructure Projects and Consulting Services
shall be competitive and transparent, thus, omission by management
prevented the dissemination of information to the public on the procurement
activities of LGU Isabel and transparency of its transactions was not
attained.
10.7 Aside from the foregoing deficiencies, the Audit Team also noted that performance
securities of ten contracts, although within the maximum period of ten (10) calendar
days from the receipt of the Notice of Award (NOA) from the Procuring Entity, were
posted later than the signing of the contract and some were even after the issuance
and receipt of the contractor/supplier of the Notice to Proceed (NTP). Summary of
details is presented below:
Winning Performance Security Date of NTP

Projects NOA
Bidder Date Amount Contract Date
Landscaping of
New Rural JCAL M. 02/07/ 02/14/ 02/10/ 02/14/
₱239,885.60
Health Unit of Merchandise 2022 2022 2022 2022
Isabel
*Procurement of
Services for De- Maga
03/21/ 03/24/ 03/22/ 03/23/
clogging of Construction 74,955.00
2022 2022 2022 2022
Canal at Brgy. and Supplies
Marvel
*Procurement of
2-unit
Ventilation
System and 03/21/ 03/24/ 03/22/ 03/23/
JV Enterprise 359,100.00
Accessories at 2022 2022 2022 2022
Multi-Purpose
Building at Brgy.
Apale
90
Winning Performance Security Date of NTP
Projects NOA
Bidder Date Amount Contract Date
Procurement of
BAJ
Various Medical/ 10/03/ 10/07/ 10/05/ 10/07/
Pharmaceutic 161,131.15
Medicine 2022 2022 2022 2022
als
Supplies
*Road
Concreting at
Chamicos 09/26/ 10/03/ 09/28/ 09/30/
Brgy Tolingon 298,582.19
Builders 2022 2022 2022 2022
(255m x 2m x
.15m)
*Procurement
(Rent to Own) of
1 unit Rescue
Cebu Titan 10/10/ 10/17/ 10/12/ 10/14/
Vehicle, 6- 26,850.00
Surplus, Inc. 2022 2022 2022 2022
wheeler
Reconditioned
Surplus Truck
*Procurement
(Rent to Own) of
2 units Mini
Cebu Titan 10/10/ 10/17/ 10/12/ 10/14/
Dump Truck, 6- 107,800.00
Surplus, Inc. 2022 2022 2022 2022
wheeler
Reconditioned
Surplus Truck
*Procurement
(Rent to Own) of
1 unit Rescue
Cebu Titan 10/10/ 10/17/ 10/12/ 10/14/
Vehicle, 6- 102,375.00
Surplus, Inc. 2022 2022 2022 2022
wheeler
Reconditioned
Surplus Truck
Repair of Market
Chamicos 10/25/ 10/28/ 10/27/ 11/02/
Tiles and 357,976.06
Builders 2022 2022 2022 2022
Drainage
Road Concreting
Chamicos 10/25/ 10/28/ 10/27/ 11/02/
at Isabel Public 1,198,001.17
Builders 2022 2022 2022 2022
Market
Total ₱2,926,656.17
* Performance Securities were posted after the issuance of NTP
10.8 The performance security shall be denominated in Philippine Pesos and posted in
favor of the Procuring Entity in an amount equal to the percentage of the total
contract price. Winning bidders shall post a performance security within a maximum
period of ten (10) calendar days from the receipt of the NOA from the Procuring
Entity and in no case later than the signing of the contract.
10.9 Failure of the successful bidder to comply with the above-mentioned requirement
shall constitute sufficient ground for the annulment of the award and forfeiture of the
bid security, in which event the Procuring Entity shall initiate and complete the post
qualification of the second Lowest Calculated Bid. The procedure shall be repeated
91
until the LCRB is identified and selected for contract award. However, if no bidder
passed post-qualification, the BAC shall declare the bidding a failure and conduct a
re-bidding.
10.10 Contract documents are indispensable documentary evidences of the procurement

process done by the Municipality, supporting the award of the contract, and
ultimately the execution and payment of projects.
10.11 Lastly, we found out that the date of receipt on notices issued by the Municipality to
winning bidders were not provided/specified. Particularly the Notice to Proceed
(NTP) as prescribed in Section 37.4.1 of the Revised IRR of RA 9184, hence,
effectivity date of the contract and basis in computing liquidated damages in case of
delay by the contractor in the performance of the contract could not be ascertained.
10.12 Due to the above circumstances, the conduct of contracts review, the technical
evaluation and inspection, and other necessary auditing procedures could not be fully
undertaken, hence, raising doubts on the propriety and validity of the awarded
contracts and corresponding payments thereof.
10.13 We recommended that the Municipal Mayor instruct the Bids and Awards
Committee (BAC) and Municipal Engineer to:
a.) render satisfactory explanation and/or submit to the Audit Team within
five (5) days, the enumerated lacking documents to prove propriety of the
contracts and validity of the payments thereof. This is without prejudice to
the issuance of Notice of Suspension and/or Disallowance, if warranted; and
b.) strictly adhere with the provisions of the Revised IRR of RA 9184, existing
law, rules and regulations including COA Circulars and latest GPPB
Resolutions to ensure that all awarded contracts are supported with
sufficient and/or appropriate documents and to establish concurrence to
the principles of transparency, competitiveness and public monitoring.
10.14 The Chairman and member of the BAC and Municipal Engineer accepted the audit
team’s recommendations and agreed to promptly comply thereof in the succeeding
project implementation and comprehensive public bidding.
Payments for progress/ final billings without sufficient appropriate supporting documents
11. Progress and Final Payments on infrastructure projects totaling ₱11,266,851.45

were not supported with adequate supporting documents, contrary to Section
4(6) of P.D. 1445 and pertinent provision of COA Circular No. 2012-001, thus
propriety, regularity and validity of the transactions could not be ascertained.
92
11.1 One of the fundamental principles governing government expenditures provided
under Section 4(6) of PD 1445 states that “Claims against Government shall be
supported with complete documentation.”
11.2 Section 9.1.1 of COA Circular No. 2012-001 provides the following revised
documentary requirements for infrastructure projects before any payment is made:
 Letter request from contractors for advance/progress/final payment or

substitution in case of release of retention money
 Common to progress/final payments:
 Statement of Work Accomplished/ Progress Billing

 Inspection Report by the Agency’s Authorized Engineer
 Results of Test Analysis, if applicable
 Monthly Certificate of Payment
 Contractor’s Affidavit on payment of laborers and materials
 Pictures, before, during and after construction of items of work especially
the embedded items
 Photocopy of vouchers of all previous payments
 Certificate of Completion
11.3 In the same circular, Section 9.1.1.4 specifies additional documentary requirements
whenever final payment is made to the contractor:
 As-Built Plans
 Warranty Security
 Clearance from the Provincial Treasurer that the corresponding sand and
gravel fees have been paid
 Copy of turn over documents/ transfer of project and facilities such as motor
vehicle, laptops, other equipment and furniture include in the contract to
concerned government agency.
11.4 In CY 2022, the Municipality of Isabel has been striving hard to best serve its
constituents thru implementation of various programs, projects and activities.
Verification of the Record of Appropriations and Obligations (RAO) or Utilizat ion
Report as of December 31, 2022 and Subsidiary Ledgers revealed that
₱11,266,851.45 was utilized from current and continuing appropriations of 20%
Development Fund (DF), and Fund Transfers from National Government Agencies
(NGAs) for progress/final payments for the implementation of the infrastructure
projects. Details are presented in Table 22.
Table 22. Progress and final payments for the implementation of infrastructure projects
Check
No.
20% DF Appropriation – Current Appropriations
93
Check
No.
11/28/2022 82064397 Chamicos Builders, payment for partial billing 500,125.18
equivalent to 60% accomplishment for the
Road Concreting at Brgy. Tolingon
12/27/2022 82064505 Chamicos Builders, payment for partial billing 1,003,325.97
Road Concreting at the Public Market
12/29/2022 82064506 Chamicos Builders, payment for final billing 333,416.78
Road Concreting at Brgy. Tolingon
Sub-Total ₱ 1,836,867.93
20% DF Appropriation – Continuing Appropriations
11/28/2022 82064396 Maga Construction and Supplies, payment for the 234,234.37
De-clogging of Canal at Brgy. Marvel
Sub-Total ₱ 234,234.37
Fund Transfers from NGAs
02/02/2022 56646832 Circle Z Ventures & Development Corp., 4,597,874.57
payment for partial billing equivalent to 50%
Work Accomplishment for the Construction of
River Wall at Dupong River, Brgy. Marvel
12/21/2022 56646900 Circle Z Ventures & Development Corp., 919,574.92
payment for final billing equivalent to 100%
Sub-Total ₱ 9,195,749.15
Grand Total ₱ 11,266,851.45
11.5 Post-audit of disbursement vouchers disclosed lacking and deficient documents, to

wit:
a.) Statement of Work Accomplished (SWA) – the report attached on each

voucher was prepared by the Municipal Engineering’s Officer. The SWA
should show the amount which the contractor considers itself to be entitled
to, to cover the cumulative value of works it executed to date, based on the
Program of Work, Detailed Estimates and adjustments made for approved
variation orders executed, if any;
b.) Result of Test Analysis – required to ensure that the quality, quantity and
type of construction materials and components supplied by the contractor
conform to specified requirements and eventually, desired workmanship of
the projects;
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c.) Monthly Certificate of Payment – statement prepared by the contractor of the
estimated value of the work executed less the cumulative amount certified
previously by the Procuring Entity;
d.) Contractor’s Affidavit on payment of laborers and materials or Certification
of clearance for equipment rental or lease, labor and materials payments;
e.) Statement of Time Elapsed – prepared for every project so that the details
regarding the implementation of the projects could be determined;
f.) As-Built Plan – reflects all the completed scope of the works within the
contract, as well as changes (Variation Orders/Extra Work/Supplementa l
Works) encountered and necessary for the completion of the project. It shall
be approved by the implementing office and be the basis for final billing of
the contractor; and
g.) Copy of turn over documents/transfer of project and facilities to the recipient
agencies and/or end-users.
11.6 Interview with the Municipal Engineer disclosed that the SWA, Contractor’s
Affidavit, Monthly Certificate of Payment, Statement of Time Elapsed and As-Built
Plan were not required from the contractor, thus, attachment of the said documents
in every billing was not adopted by their office.
11.7 The mandate of the Municipal Accountant is to install and maintain an internal
control audit system in the Municipality. It is one of his duties to review supporting
documents before the preparation of vouchers to determine completeness of
requirements. In other words, by affixing his signature in Box A of the Disbursement
Voucher, which states “Supporting Documents Complete”, it is indeed supported
with the required documents.
11.8 The practice of disbursing government funds despite of incomplete documentation

shows that management is not strictly adhering to the prescribed rules and
regulations on the documentary requirements prior to the disbursement of
government funds.
11.9 The absence of the above-mentioned documents casted doubt on the extent of control
and monitoring undertaken by Management, thus, affected auditorial review as to
accuracy of the reported accomplishments and validity of payments. These lacking
documents might also hamper the conduct of COA technical evaluation and
inspection.
11.10 We recommended that the Municipal Mayor re quire the Municipal Engineer
and Municipal Accountant to:
a.) submit to the Audit Team within five (5) days, the required lacking
documents enumerated above to prove regularity and legality of the
corresponding disbursements. This is without prejudice to the issuance
of Notice of Suspension and/or Disallowance, if warranted;
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b.) ensure that all disbursement vouchers are properly supported with
complete documentation and in no case shall a disbursement be paid
without the necessary supporting documents; and
c.) strictly observe the provisions of the 2016 Revised IRR of RA No. 9184,
COA Circular 2012-001 and relevant/applicable GPPB Resolutions to
ensure adherence to the principles of transparency, competitiveness and
public monitoring.
11.11 During the exit conference, the management guaranteed to adhere with the required
provisions stated in the audit recommendations. Likewise, the Municipal Engineer
committed submission of available documents to the audit team once gathered.
Inadequate control on receipt, distribution and inventory in-kind donations
12. The Municipality did not establish adequate controls in the receipt and
issuances of in-kind donations while these were not disclosed in the Notes to the
Financial Statements, contrary to COA Circular No. 2014-002 as amended by
COA Circular No. 2020-009, thus, in-kind donations were not properly
recorded and accounted for, while accountability over these transactions was
not established and transparency of the transactions were not achieved.
12.1 Pertinent provisions of COA Circular No. 2014-002 provide accounting and
reporting guidelines on the receipt and utilization of in-kind donations, to wit:
Paragraph IV - C. Accounting Guidelines on In-kind Donations from Local

and Foreign Sources:
1. Acknowledgment Receipt for In-Kind Donations for DRRM (Annex D) shall

be issued by the Head of the Agency or his/her authorized representative for
the receipt of in-kind donations.
2. Issuances of donated relief goods for distribution to intended beneficiaries/

end users shall be supported with Issuance Form for In-Kind Donations -
DRRM (Annex E).
xxx
7. In-kind donations other than PPE shall not be recognized in the books of
accounts but shall be recorded in the Registry of Donated Relief Goods for
DRRM to be prepared and maintained by the Property and Supply Unit for
each kind of relief goods using the prescribed format shown in Annex G.
8. Donated relief goods shall be sorted, inventoried/counted and recorded upon

receipt and before repacking. The distribution shall be made immediately,
especially the perishable goods/items.
96
9. The inventories of donated items shall be considered in the determination of
the volume of relief goods to be purchased.
Paragraph V - B. Reporting Guidelines on In-kind Donations. The Donee-

Agency shall prepare monthly reports on the receipt and distribution/ utilization/
issuance of in-kind donations. Separate reports (Annexes N and 0) shall be
prepared for relief goods and PPE based on the Registry of Donated Relief
Goods for DRRM and Property Cards, respectively. The reports shall be
submitted to the OCD, copy furnished the COA Auditor, on or before the 1Oth
day of the ensuing month until all donations are fully consumed/utilized.
Paragraph VI. Inventory and Monitoring of all Procured and Donated

Supplies, Materials, Equipment and Relief Goods
1. The head of the agency shall be primarily responsible for the safeguarding
of all procured and donated supplies, materials, equipment and relief goods
against loss and wastage through illegal or improper disposition, in
accordance with Section 2, Presidential Decree No. 1445.
2. The Property Officer shall prepare and maintain an inventory list of all
procured and donated items (Annexes P, P-1 and P-2) based on the updated
Stock Cards and Property Cards prescribed under Sections 41 and 42,
Volume II of MNGAS.
3. For PPE, issuances shall be covered by Acknowledgment Receipt for

Equipment (ARE), while for small items mentioned in para. IV.A.7, by
Inventory Custodian Slip (ICS).
4. Periodic reconciliation of accounting and property records shall be made and

discrepancy(ies), if any, shall be immediately verified and adjusted.
12.2 Moreover, Paragraph VII -2 in the same circular, provides that all information as to
quantity of received, issued and balance of donated relief goods per category such as
food items, medicines and medical supplies, hygiene kits and others shall be
disclosed in the Notes to the Financial Statements.
12.3 In 2020, as the nation faces difficult times due to the outbreak of the Corona Virus
Disease 2019 (COVID-19), the Commission on Audit issued COA Circular No.
2020-009 that temporarily relaxes certain provisions of the precedent circular in so
far as receipt, recording, distribution, reporting and direct release of donations in-
kind and relief goods to the beneficiaries concerned during the period, without
necessarily disregarding basic controls to ensure that the donations are properly
accounted for.
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12.4 Paragraph II-A of the abovementioned Circular relaxes certain provisions, as
follows:
1. The recording of donations in kind before repacking and distribution is put

on hold during the quarantine. The acknowledgment of the donations in-kind
and accounting of distributions and balances by the recipient agencies will
suffice during the period.
2. To ensure that the aids and donations received by the recipient agencies
during the quarantine are properly accounted for, the recipient agencies shall
be required to submit a Summary/ List of Donations Received, Distributed
and Balances. The Summary/ List should be categorized (i.e. food, medical
supplies, medicines, etc…) and can be submitted within ten (10) working
days after the end of the quarantine, or if the quarantine exceeds three (3)
months, within ten (10) working days after the end of each quarter, supported
with:
(1) Acknowledgment receipts of the donations in-kind;

(2) Proof of receipt by and distribution to the beneficiaries, not necessarily
in the required form; and
(3) Inventory of remaining undistributed items, if any.
3. The costing and recording of the donations will be done after the quarantine
and only the remaining balances shall be costed and recorded in the books or
in the registries.
12.5 This is a reiteration of the prior year’s observation and recommendation, but said
practice is not yet corrected as of date. The observation on in-kind assistance/
donations received by the Municipality from various government agencies, private
individuals and entities in CY 2022 and prior years were still not managed and
recorded in the books or disclosed in the Financial Statements of the Municipality.
12.6 As an alternative source, the Audit Team accessed the Facebook account/page
associated to the Municipality wherein appreciation and gratitude were expressed for
donations received, and we found that the Municipality acknowledged receipt of 1-
set Air Sampler System from Environment Management Bureau (EMB) Region 8
last February 15, 2022.
12.7 Also, validation conducted by the Audit Team last May 26, 2023 as to accuracy and
existence of the Property, Plant and Equipment (PPE) and Inventory accounts at the
Rural Health Unit (RHU) uncovered multiple in-kind donations from Department of
Health (DOH) from CYs 2021 and 2022 based on the presented Requisition and
Issue Slip and Property Transfer Report from the donee with signed receipt by the
RHU Personnel. Table 23 enumerates the donations in-kind received by the
Municipality of Isabel.
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Table 23. Donations received by the Municipality
Date Quan
Item/s Amount
Received tity
undated USB Flash Drive (Micro USB, OTG Dual Interface, 1 ₱ 827.00
64GB)
10/13/2022 Coverall 100 47,320.00
Laboratory Gown 100 5,817.00
Surgical Mask 2,500 5,650.00
10/13/2022 Surgical Mask 3,500 8,540.00
Total ₱ 68,154.00
12.8 In the course of audit, we noted the following deficiencies after the assessment of
the controls employed by the Municipality on the receipt, distribution and
monitoring of in-kind donations:
a.) There was no written policy or guidelines as to the specific office/ department to
receive all in-kind donations on behalf of the Municipality.
b.) In-kind donations were not supported with Acknowledgment Receipts, duly
signed by the Head of the Agency or his authorized representative.
c.) The Summary/ List of Donations Received, Distributed and Balance was not
prepared; and
d.) Inventory of the remaining balance of donated items, if any, was not conducted
and a report thereon was not prepared, which is necessary on the part of the
Municipal Accountant in determining the value of the remaining donations and
its consequent recording or disclosure in the Financial Statements.
12.9 Interview with the Municipal Disaster Risk Reduction Management (MDRRM)
Officer and General Service Officer (GSO) disclosed that they were unaware of the
reportorial requirements of the existing circulars, thus proper documentation for the
said in-kind donations were not prepared. However, the GSO was able to present
deeds of donation of some vehicles and equipment/supplies received by the
Municipality from various donors.
12.10 Analysis of the Deeds of Donation and comparison with the accounting records
exposed 2 unrecorded donations, to wit:
No. Donor Item/s Quantity Amount

1. Provincial Government of Suzuki APV 1 not specified
Leyte, thru Gov. Leopoldo (Mini Rescue
Dominico L. Petilla Vehicle)
2. HelpAge International and Honda XR125L 2 ₱152,400.00
Coalition of Service of the Motorcycle
Elderly (COSE)
12.11 Due to the foregoing, records maintained by the Municipality pertaining to Property
Acknowledgment Receipt (PAR) for issuance of donated PPEs and/or Inventory
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Custodian Slip (ICS) for the issuances of tangible items which costs ₱15,000.00 or
less and have a life of more than a year, if any, were also not prepared.
12.12 Further verification on the financial reports, revealed that the receipt, issuance and
balance of in-kind donations were not disclosed in the Notes to the Financial
Statements for CYs 2020, 2021 and 2022, despite multiple donations received by the
Municipality.
12.13 According to the Municipal Accountant, they were not able to provide itemized
information on in-kind donations as they did not obtain any document and/or reports
from the GSO to support such disclosure.
12.14 Due to these deficiencies and omissions by management, in-kind donations were not
properly recorded and accounted for, thus, accountability over these transactions was
not established and transparency was not achieved.
12.15 We recommended that the Local Chief Executive:
a. issue an Acknowledgment Receipt for In-Kind Donations for DRRM or

his authorized representative for the receipt of in-kind donations.
b. designate the office to receive all in-kind donations who will:
1. establish an inventory management system on receipt, distribution
and/or utilization of in-kind donations,
2. prepare the Summary/ List of Donations Received, Distributed and
Balances every month or every quarter supported by
Acknowledgment Receipts, Proof of Receipt by and Distribution to
the Beneficiaries/ end-users, and Inventory of Remaining Balances,
and
3. submit to the Property Custodian copy of the Acknowledgment
Receipt for donated equipment and other tangible items which costs
P15,000 or less and has a life of more than a year.
c. require the designated Property Custodian or duly appointed GSO to:
1. maintain Stock Cards/ Property Card for all donations in-kind
received and update regularly;
2. maintain Registry of Donated Relief Goods for each kind of
inventory items; and
3. prepare Property Acknowledgment Receipt (PAR) for issuance of
donated PPEs and Inventory Custodian Slip (ICS) for the issuances
of tangible items which costs ₱15,000.00 or less and have a life of
more than a year and are not considered as PPE to establish
accountability over them and furnish the Municipal Accountant with
the PAR and ICS.
100
d. require the departments (MDRRMO, DSWDO and RHU) responsible
for the distribution of relief goods and other supplies to submit Proof of
Receipt by and Distribution to the Beneficiaries/ end-users to the Office
referred to in item b.
12.16 We also recommended that the Municipal Accountant summarize the data from
the documents obtained, compare records with Registry of Donated Relief
Goods maintained by the Property Custodian or duly appointed GSO for check
and balance, and accordingly disclose all necessary information in the Notes to
the Financial Statements.
12.17 The Management was receptive with the recommendations and agreed to take into
consideration the observations noted by the Audit Team for future reference to
achieve transparency and establish accountability.
Hiring of Job Orders
13. The necessity of hiring 377 Job Order (JO) personnel which is equivalent to
68.42% of the Municipality’s total work force, could not be established due to
the absence of clear-cut hiring policies of the Municipality and lack of specific
functions and duties expected from the JO personnel in the contracts, contrary
to Sections 76 of RA No. 7160; CSC Memorandum Circular Nos. 17 and 24,
series of 2002 and corresponding CSC Resolution Nos. 020790 and 021480, thus,
the selection process may be subjective, persons hired may not be qualified,
tasks and functions could be duplicated and unnecessary expenses on wages
may be incurred.
13.1 Sections 76 of Republic Act (RA) No. 7160 provides that:
Every local government unit shall design and implement its own
organizational structure and staffing pattern taking into consideration its service
requirements and financial capability, subject to the minimum standards and
guidelines prescribed by the Civil Service Commission.
13.2 CSC MC No. 17-02 dated June 24, 2002 was issued providing the adoption of Policy
Guidelines for Contract of Services pursuant to CSC Resolution No. 020790 dated
June 5, 2002.
13.3 Under Section 1(a) of the said CSC Resolution, Job Order refers to employment
described as follows:
1. The contract of covers lump sum work or services such as janitorial,

security, or consultancy where no employer-employee relationship exists
between the individual and the government;
101
2. The Job Order covers piece of work or intermittent job or short duration not
exceeding six months and pay is on a daily basis;
3. The contract of services and job order are not covered by Civil Service laws,
rules and regulations, but covered by Commission on Audit rules;
4. The employees involved in the contract or job order do not enjoy the
benefits enjoyed by government employees, such as PERA, ACA, and
RATA.
5. Services rendered hereunder are not considered as government services.
13.4 Corollary thereto, although the Local Government Code of 1991 allows employment
of individuals on a job order basis, Section 4 of CSC Resolution No. 020790
specified individuals who are disqualified from being appointed under job order,
such as those who have previously been dismissed; those covered by nepotism; and
those who are compulsory retired save as to consultancy services.
13.5 Moreover, CSC MC No. 24-02 was issued providing the adoption of Clarificatory
Policy Guidelines on Contract of Services pursuant to CSC Resolution No. 021480,
dated November12, 2002. And paragraph 2 of Section 1(b) of such resolution
expressly states:
A Contract of Service (CoS) or Job Order which does not cover special or
technical skills or where the functions to be performed are clerical or
administrative in nature or where the work is also performed by the regular
personnel of the agency may be entered only when done in the exigency of the
service and it is not feasible for the agency to hire said services under a casual
or contractual appointment.
13.6 Review of the contracts and plantilla of personnel disclosed that Job Orders comprise
68.42% of the total workforce of LGU Isabel. As of December 31, 2022, the
Municipality has total of 551 personnel, composed as follows:
Personnel Number Percentage

Elected Officials 12 2.18%
Permanent/ Regular 133 24.14%
Co-Terminus 3 0.54%
Casual 9 1.63%
Consultant 2 0.36%
Honorarium Based 2 0.36%
Contract of Service 13 2.36%
Job Order 377 68.42%
Total 551 100%
13.7 Based on the above data, the LGU hired 377 JOs or almost 283.46% higher than the
regular personnel. Records showed that the LGU has 150 plantilla positions, 133 of
which were filled leaving only 17 items unfilled. The offices to which the JOs are
assigned is shown in Table 24.
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Table 24. Personnel Complement of LGU Isabel CY 2022
Plantilla No. of
Office Filled Unfilled
Position JOs hired
Municipal Mayor 29 26 3 16
Municipal Vice Mayor 2 2 - 0
Sangguniang Bayan 12 12 - 22
SB Secretary 3 3 - 0
Municipal Administrator 3 3 - 2
Municipal Human Resource Management 6 5 1 3
Municipal Planning & Development 5 5 - 2
Municipal Civil Registrar 3 3 - 1
Municipal General Service 2 2 - 56
Municipal Budget 3 3 - 2
Municipal Accountant 7 6 1 8
Municipal Treasurer 13 11 2 8
Municipal Assessor 6 5 1 6
Municipal Internal Audit Services 3 2 1 2
Municipal Legal 1 - 1 1
Municipal Health 12 12 - 39
Isabel Emergency Hospital 7 3 4 33
Mun. Social Welfare and Development 5 4 1 16
Population Commission 1 1 - 3
Municipal Agriculture 6 4 2 6
Mun. Environment and Natural Resources 2 2 - 11
Municipal Engineer 4 4 - 17
Motorpool 2 2 - 15
Public Market 6 6 - 22
Slaughterhouse 1 1 - 11
Operation Transportation Services 1 1 - 34
Disaster Risk Reduction and Management 5 5 - 22
Municipal Nutrition Action Officer - - - 3
Bureau of Fire Protection - - - 2
Bureau of Internal Revenue - - - 4
Commission on Election - - - 2
Department of Agrarian Reform - - - 1
Department of Interior Local Government - - - 1
Office of the Senior Citizen Affairs - - - 4
Public Employment Service Office - - - 2
Total 150 133 17 377
13.8 Perusal of the records maintained by the HRMO, disclosed that the Municipalit y
adopted policies and/or guidelines on the procedures of hiring Job Order personnel,
thus the rights and obligations of both the Municipality and the JO personnel were
clearly established. Such policies/guidelines include submission of important
personal records to support the Personal Data Sheet (PDS), each applicant will
undergo an interview before hiring and/or employment orientation process once
hired, and the conduct of semestral performance evaluation per office thru Individua l
Performance Commitment and Review (IPCR) which serves as basis for the renewal
of their contracts, thus identities and qualifications are apprehended.
103
13.9 However, the necessity of hiring such number of JOs could not be determined due
to the following deficiencies:
a. The LGU hired Job Order personnel without determining its manpower needs
through preparation of an Organizational Structure and Staffing Pattern Plan.
These documents show the hierarchy within the Municipal Organization,
identify each position and where a certain office reports to within the
management, and establish how the management should operate and obtain its
goals to allow future growth. Because of the absence of such Staffing Pattern
Plan and guidelines, the necessity of hiring such number of JOs could not be
assessed or evaluated.
b. The LGU prepared Job Order Contracts approved by the LCE which state the
designation, pay rate, period covered, funding source and office of deployment,
without taking into consideration the specific lump sum of work or service
(number of hours, quantity and duration) and piece of work or intermittent job
to be performed (required functions, output or deliverables). For this reason,
the task performed for a certain period in the submitted accomplishment
reports could not be validated.
c. 29 Job Orders were utilized as drivers, a function which should only be

delegated to regular employees and 4 JOs were designated as collectors
without official designation and proper bonding, contrary to Section 305 (f) of
R.A. 7160 that states “every officer of the local government unit whose duties
permit or require the possession or custody of local funds shall be properly
bonded, and such officer shall be accountable and responsible for said funds
and for the safekeeping thereof in conformity with the provisions of law.”
It was further noted that some JOs were performing clerical and administrative
functions such as receiving and recording of transactions, checking and
encoding of data, filing of office documents and the like, which are
administrative in nature, and could be done by regular employees.
13.10 Moreover, Part II - No. 12 of the Annual Audit Report for CY 2019 emphasized that
due to the excessive number of JOs hired by the LGU, the wages paid were not in
accordance with the current daily minimum wage prescribed in Regional Tripartite
Wages and Productivity Boards (RTWPBs) for Region 8.
13.11 Validation of its current status revealed that all 377 JOs of the Municipality were
still paid a daily wage below the ₱375.00 daily minimum wage prescribed by the
RTWPBs, thus failed to implement the audit recommendation on limited hiring of
JOs to indispensable functions only and defied the provisions of the Wage Order No.
RB VIII-21. Summary is shown in Table 25.
Table 25. Wage Rates Received by Number of Workers
104
Wage Rate No. of Employees
₱ 500.00 -
350.00 -
300.00 51
250.00 -
228.00 326
Total 377
13.12 Had the LGU facilitated the hiring or filling up the 17 unfilled plantilla positions and
reviewed the actual manpower needs, it could have instead hired additional regular
personnel provided within the PS Limitation and could have avoided hiring
excessive number of Job Order Personnel paid below the prescribed daily minimum
wage. The funds allotted for the employment of additional manpower could have
been programmed and utilized for other basic services that are more responsive to
the need of the people or the constituents.
13.13 We recommended that the Municipal Mayor require the Human Resource and
Management Officer to:
a. review, assess and evaluate the existing manpower, in coordination with

the department heads, to prepare an updated Organizational
Structure/Staffing Pattern Plan so that the ideal number of plantilla
personnel will be established, and submit a report with
recommendations thereon to the Local Chief Executive;
b. limit the hiring of personnel under Job Order contracts to those

extremely necessary and deploy only to offices that are actually in need
of their services; and
c. institute contracts per Job Order and incorporate the number of man
hours, quantity and duration of the work to be performed by the JO
personnel in their respective contracts, and require them to submit
quantified accomplishment reports to support payments of wages.
13.14 The HRMO and her staff agreed to reconsider the existing workforce of the
Municipality and will require every Head of Office to provide job description of all
personnel and validate redundancy of work. They also assured to establish individua l
JO contracts and specify the required functions, output or deliverables, number of
hours, quantity and duration.
LTO registration, use of red plate and “For Official Use Only” marking of government
vehicles
14. Out of the 21 government vehicles, only six have valid LTO registrations
pursuant to pertinent provisions of Republic Act (RA) No. 4136 and
105
Presidential Decree (PD) No. 1445, while 15 have no records of registration,
hence casting doubt on the accuracy, existence, owne rship, and propriety of the
recorded vehicles, and exposing the risk of non-recovery of damages in case of
accidents. Moreover, majority of these government vehicles do not bear the
mandatory government red plates and were not properly marked “FOR
OFFICIAL USE ONLY”, opposing COA Circular No. 75-6 dated November 7,
1975, thus, exposed the Municipality to possible misuse of the government
vehicles.
14.1. Pertinent provisions of RA No. 4136, also known as the “Land Transportation and
Traffic Code”, requires the following:
Section 5. All motor vehicles and other vehicles must be registered.
(a) No motor vehicle shall be used or operated on or upon any public highway
of the Philippines unless the same is properly registered for the current year
in accordance with the provisions of this Act.
(b) Any registration of motor vehicles not renewed on or before the date fixed
for different classifications, as provided hereunder shall become delinquent
and invalid…xxx
Section 8. Schedule of registration fees. - Except as otherwise specifically

provided in this Act, each application for renewal of registration of motor
vehicles shall be accompanied by an annual registration fee…xxx
14.2. Joint Administrative Order No. 2014-01 was likewise issued by the Department of
Transportation and Communication dated June 2, 2014, that establishes the schedule
of fines and penalties for violation of laws, rules and regulations governing land
transportation.
14.3. Sections 102, 123 and 124 of Presidential Decree (PD) No. 1445 provide that:
Section 102. Primary and secondary responsibility
1. The head of any agency of the government is immediately and primarily

responsible for all government funds and property pertaining to his agency.
2. Persons entrusted with the possession or custody of the funds or property

under the agency head shall be immediately responsible to him, without
prejudice to the liability of either party to the government.
xxx
Section 123. Definition of Internal Control. Internal control is the plan of
organization and all the coordinate methods and measures adopted within an
organization or agency to safeguard its assets, check the accuracy any reliabilit y
106
of its accounting data, and encourage adherence to prescribed managerial
policies.
Section 124. Installation. It shall be the direct responsibility of the agency head
to install, implement, and monitor a sound system of internal control.
14.4. Further, Section 5 of COA Circular 75-6 dated November 7, 1975 or the Circular in
Regulating the use of government motor vehicle, aircrafts, and watercrafts which
prescribes the following:
(2) Marking "For Official Use Only" -
All motor vehicles owned by the National Government, its agencies and
instrumentalities, and all local government units including government-owned
or controlled corporations, except those used by the officials enumerated under
No. I hereof, should be plainly marked:
FOR OFFICIAL USE ONLY (3 inches)
under which should be written the corresponding name of the bureau, office,
corporation, provincial, city, municipality, or other local government unit
operating or using the name.
The mark should appear on each side of the motor vehicle. When there
is no sufficient space on each side, the same should appear at the back and on
the front just below the windshield of the motor vehicle. (General Circular No.
59, dated November 20, 1958)…xxx
xxx
(4) Use of Government Plates -
All government motor vehicles shall bear government plates only. In

case of bureaus, offices and agencies maintaining funds for intelligence
purposes, the heads of such bureaus, offices or agencies are hereby requested to
submit a list of security vehicles which may be added to the existing list of
vehicles exempt from using government plates. Only the President, however,
can authorize additional exemptions…xxx
14.5. Audit revealed that the Municipality owned several motor vehicles, which are
utilized for the day-to-day services offered to its constituents. Validation of the LTO
Registration records, as well as inquiry with the General Service Office (GSO) and
Municipal Accountant, disclosed the status of registrations of all government
vehicles as follows:
Table 26. Status of LTO Registration of Government Vehicles as of June 6, 2023
107
No. Description Cost CR. No OR No. Date
Motor Vehicle
1 Nissan Advance - Donated by 65,000.00 No Record of Registration
Miyakaw Ent., Japan presented
2 One (1) unit Kia Ceres Utility Vehicle 378,000.00 No Record of Registration
presented
3 One (1) unit Multi Cab 130,500.00 No Record of Registration
presented
4 Twenty-Four (24) units Suzuki Multi- 359,880.00 No Record of Registration
Cab 12 Valve w/ Canopy Recon, Brand presented
New Tire & Battery used for 24
Barangays
5 One (1) unit Toyota Hi-Lux w/ 4 56,720.00 No Record of Registration
Wheel Drive, Double Cab & 5 speed presented
manual used in municipality
6 KIA Carnival EX SWB 2,154,055.48 No Record of Registration
presented
7 One (1) unit Ambulance-Mitsubishi (L- 1,077,705.00 No Record of Registration
300 Versa Van) presented
8 Two (2) units Multicab Service Vehicle 243,800.00 No Record of Registration
for Mun. Accountant (returned to presented
motorpool and Budget Officer)
9 One (1) unit Pajero V6, VAN Type for 648,500.00 No Record of Registration
Judge Leda Nicol presented
10 * One (1) unit Vehicle KIA Pregio for 546,000.00 10672198-5 0836- 03/13/2023
VM Cherry Dayandayan 0000000
40691
11 One (1) unit GL Grandia (Monotone), 1,880,000.00 267821750 0836- 04/11/2023
12-Seater Van for SB & VM 0000000
42687
12 One (1) unit motorcycle (Honda) CB 60,000.00 No Record of Registration
125 CLES for Mun Slaughterhouse presented
13 One (1) unit Multicab Pick-Up with 258,000.00 No Record of Registration
Canopy 4WD 4speed at Engineering presented
Office
14 One (1) unit Honda TMX 150 Supremo 72,900.00 No Record of Registration
S25-Black presented
15 Two (2) units Ambulance Donated by 400,000.00 No Record of Registration
Pasar Foundation Toyota Hiace and presented
Nissan
Construction and Heavy Equipment
0836-
8554495-5 0000000 04/19/2023
Two (2) units 10-Wheeler Dumptruck
16 2,787,000.00 43381
for LGU-Isabel
No Record of Registration
presented
Disaster Response and Rescue Equipment
0836-
One (1) unit Ambulance donated by
17 866,000.00 13532154-6 0000000 03/17/2023
PCSO
41072
One (1) unit Canter 4WD, Wide Full 0836-
18 Size Japan Ambulance, USA 911 style 1,795,000.00 266281584 0000000 02/13/2023
ambulance body with basic accessories 38757
108
No. Description Cost CR. No OR No. Date
One (1) unit HINO Ranger Rescue No Record of Registration
19 2,795,000.00
Truck for MDRRM presented
Other Transportation Equipment
One (1) unit Boom Truck with Crane No Record of Registration
20 1,000,000.00
Donated by Equator Energy Corp. presented
Not in the Recorded in the Books
0836-
Honda XR125L Motorcycle (2014
21 unknown 224727101 0000000 06/02/2023
Model)
46274
* tagged as unserviceable by the Inventory Committee
14.6. As of writing, only 5 valid LTO registration records out of the 20 vehicles identified
in the PPE account and one unrecorded in the Municipality’s books were presented
to/obtained by the Audit Team.
14.7. As evidenced by Table 26, safekeeping of the records of these motor vehicles’
registration documents were not properly maintained as the Municipality has not
established adequate controls on the renewal of vehicle registrations and non-
submission of 15 motor vehicles’ registration documents cast doubt on the accuracy,
existence, ownership, and propriety of the identified vehicles. It is apparent that such
obligation was overlooked and that failure of the Municipality to ensure LTO
registration of these vehicles consequently exposed users to uncompromising
situations and that the Municipality may be liable in case of accidents arising from
the use of such vehicles.
14.8. The lack of valid registration on government vehicles is an act of disobedience to a

well-established law which is unbecoming of a government agency. The
Municipality should be an exemplar of law adherence to motivate its constituents to
act the same.
14.9. Moreover, validation as to existence conducted by the audit team in June 5, 2023
uncovered that majority of the vehicles owned by the Municipality did not bear
government (red) plates and/ or the “For Official Use Only” marking on the body of
the vehicles (see Appendix G.8), contrary to Items 2 and 4 of Section 5 of the COA
Circular 75-6 dated November 7, 1975. Non-compliance with the regulations on the
use of government vehicles exposes the Municipality to misuse/abuse on the
utilization of its resources pertaining to motor vehicles.
14.10. We recommended that the Municipal Mayor:
a. ensure that all vehicles owned by the Municipality are promptly registered
as government vehicles with the LTO under the name of the Municipality,
include in the annual budget appropriation for the renewal of registration
payment of all vehicles, and registration be made within the period
prescribed by the LTO to avoid payment of pe nalties and other sanctions;
and
109
b. instruct the Property Custodian or Driver of the Motor Vehicle to stop the
operation/use of the vehicles with expired LTO registration.
14.11. We also recommended that the duly appointed GSO:
a. investigate, locate records and submit copies of registration documents for

the 15 motor vehicles;
b. keep the records of registration for all LGU vehicles, monitor their expiry
dates and schedule the annual renewal of LTO registration in coordination
with the Property Custodian or Driver of the vehicle; and
c. evaluate any unserviceable vehicles for possible disposal, and in
coordination with the Municipal Accountant, follow the disposal
procedures unserviceable vehicles, pursuant to pertinent provisions in
COA Circular No. 2020-006.
14.12 The Management acknowledged their lapses on the application for LTO registrations
and warranted that extra effort will be exerted and compliance will be prioritized.
Delayed and/or non-submission of contracts and AIR within the prescribed period
15. Copies of 13 Contracts for procurement of goods and infrastructure projects

involving a total amount of ₱20,044,064.90 were not submitted within five (5)
working days after their perfection and/or approval, contrary to the provisions
of COA Circular No. 2009-001, thus, hindering the prompt review and
evaluation of the transactions and communication of noted deficiencies, if any,
while Acceptance and Inspection Report (AIR) of deliveries of procured items
were not submitted to the Audit Team within 24 hours after acceptance,
contrary to COA Circular 2009-002, thereby impeding actual inspection of
deliveries and immediate detection of deficiencies/defects of the items delivered.
15.1 COA Circular No. 2009-001, dated February 12, 2009 restated and/or amended COA
Circular 87-278 and COA Memorandum 2005-027 as regards submission of copy of
government contracts, purchase orders and their supporting documents to the
Commission on Audit.
15.2 Section 3.1.1 of the said circular requires that within 5 working days from the
execution of contract by the Government or any of its subdivisions, agencies or
instrumentalities, including government-owned and controlled corporations and
their subsidiaries, a copy of said contract and each of all the documents forming part
thereof by reference or incorporation shall be furnished to the Auditor of the agency
concerned.
15.3 Section 3.2.1 further provides that a copy of any purchase order irrespective of
amount, and each and every supporting document, shall within five (5) working days
110
from issuance thereof, be submitted to the Auditor concerned. Within the same
period, the Auditor shall review and point out to management defects and/ or
deficiencies, if any.
15.4 Moreover, COA Circular 2009-002 reinstituted selective pre-audit on Government

Transactions and Section 6.9 clearly states that the Agency is obligated to furnish
the auditor copies of delivery documents within twenty-four (24) hours after
acceptance of deliveries of goods and services, regardless of whether or not the
transaction is subject to pre-audit.
15.5 For CY 2022, review of records disclosed that copies of contracts and its supporting
documents of the 13 procurements of goods and infrastructure projects ranging from
₱249,850.00 to ₱3,993,337.22 and totaling ₱20,044,064.90 were not submitted
within the prescribed period of five working days after their perfection. Delay ranges
from 106 days to 371 days, as shown in Table 27.
Table 27. List of Contracts not submitted within the Prescribed Period.
Date of
Date No. of Days
No. Projects Amount Contract
Submitted Delayed
Agreement
Procurement of
various processed
1 food for gift pack of 498,400.00 01/26/2022 01/31/2023 371
all Job Order
Personnel
Landscaping of New
2 Rural Health Unit of 799,618.68 02/10/2022 01/31/2023 356
Isabel
Construction of
Covered Court and
3 Evacuation Center 2,499,500.00 03/16/2022 01/31/2023 322
Phase II at Brgy.
Tubod
Procurement of
Services for De-
4 249,850.00 03/22/2022 01/31/2023 316
clogging of Canal at
Brgy. Marvel
Procurement of 2-unit
Ventilation System
and Accessories at
5 1,197,000.00 03/22/2022 01/31/2023 316
Multi-Purpose
Building at Brgy.
Apale
Procurement of
6 Various Medical/ 1,611,311.50 10/05/2022 01/31/2023 113
Medicine Supplies
Road Concreting at
7 Brgy Tolingon (255m 995,273.98 09/28/2022 01/31/2023 121
x 2m x .15m)
111
Date of
Date No. of Days
No. Projects Amount Contract
Submitted Delayed
Agreement
Procurement (Rent to
Own) of 1 unit Rescue
8 Vehicle, 6-wheeler 537,000.00 10/12/2022 01/31/2023 106
Reconditioned Surplus
Truck
Own) of 2 units Mini
Dump Truck, 6-
9 2,156,000.00 10/12/2022 01/31/2023 106
wheeler
Truck
Own) of 1 unit Rescue
10 Vehicle, 6-wheeler 2,047,500.00 10/12/2022 01/31/2023 106
Truck
Procurement and
Installation of
Municipality wide not yet 147 and
11 2,266,020.00 12/29/2022
CCTV Surveillance submitted counting
Camera and Wireless
Network
Repair of Market Tiles
12 1,193,253.52 10/27/2022 05/23/2023 208
and Drainage
Road Concreting at
13 3,993,337.22 10/27/2022 05/23/2023 208
Isabel Public Market
TOTAL 20,044,064.90
15.6 As a result, the timely review and initial auditorial examination of the contract and
its supporting documents could not be undertaken, such as compliance with laws,
rules, and regulations on the procurement process as well as the determination of the
reasonableness of the contract cost, thus, deficiencies noted if any, cannot be
promptly communicated to the management.
15.7 Further, the Audit Team observed that the municipality failed to submit to the audit
team, copies of the AIR within 24 hours after acceptance of the delivered items
prepared by the Inspection and Acceptance Committee. Inquiry with the General
Service Officer revealed that such has been the practice of the municipality since it
is not aware that the said notice/report shall be furnished to the Commission on Audit
(COA).
15.8 Thus, the non-submission of AIR within the specified period hindered the timely
validation/verification on the actual existence and evaluation of conformance to
specification of the delivered items by the Audit Team as reference in the post-audit
activities, especially on transactions involving huge amount of money.
112
15.9 We recommended that the Bids and Awards Committee and/or General Service
Officer submit within the reglementary period, copies of perfected contracts
and Purchase Orders (PO) and all the documents forming part thereof by
reference or incorporation, to the Audit Team, as prescribed under COA
Circular No. 2009-001.
15.10 We also recommended that the Inspection and Acceptance Committee

religiously furnish Acceptance and Inspection Report (AIR) to the Audit Team
within 24 hours after the acceptance of the delivered items, pursuant to COA
Circular No. 2009-002.
15.11 The GSO and BAC Secretariat were amenable to the audit observations and
diligently implement the recommendations.
Unsupported disbursements on procurement of supplies and equipment
16. Payments made to suppliers on procurement of supplies and equipment in the

total amount of ₱2,006,985.85 were not supported with the required documents,
contrary to pertinent sections of Presidential Decree (PD) No. 1445, Item B of
COA Circular No. 96-010, COA Circular No. 2012 – 001 and Annex H
Appendix A of 2016 Revised Implementing Rules and Regulations , thus, the
validity and propriety of the payments may not be confirmed.
16.1. Item 6 of Section 4 Fundamental principles of Presidential Decree (PD) 1445 states:
Section 4. Fundamental principles. Financial transactions and operations of

any government agency shall be governed by the fundamental principles set forth
hereunder, to wit:
(6) Claims against government funds shall be supported with complete

documentation.
16.2. Further, Sections 111 of the same decree provides that:
Section 111. Keeping of Accounts.
1. The accounts of an agency shall be kept in such detail as is necessary to meet

2. The highest standards of honesty, objectivity and consistency shall be

observed in the keeping of accounts to safeguard against inaccurate or misleading
information.
113
16.3 In Item B of COA Circular No. 96-010 dated August 15, 1996, provides:
B. Basic data which should invariably appear in the P.O.
1. The existing forms of the purchase order or other contract used by the
agencies may be continued, provided that it shall contain all the
following data or information:
(a) Purchase Order Number

(b) Date of Purchase Order
(c) Complete name of supplier
(d) Complete address of supplier
(e) Information whether the supplier is a manufacturer or exclusive
distributor; registered with SEC, DTI or both
(f) Telephone and fax number of supplier, if any
(g) Date of delivery
(h) Complete item name
(i) Complete detailed item specification, including accessories i.e.,
narrative description, size/dimension/volume, model, use of item,
color, capacity, horsepower, voltage, watts, gauge, kind of
equipment where spare part is to be used whether replacement or
original (for spare parts), part number of spare parts, type and
classification of material, brand new or second hand, etc.
(j) Price (individual unit price; if lot price any document showing the
detailed breakdown of the cost should likewise be submitted)
(k) Unit of measure when it is not universally accepted indicate numbers
or weight, or lineal measure, i.e., if stated as per "roll", indicate the
number of yards/meter per roll; if per "box", state number/pcs.
contents; if per bag how many pounds or kilos
(l) Quantity or number of units
(m) Brand name. If no brand, state "none"
(n) Country of manufacture or origin of item; i.e., local (or RP), or if
foreign origin, specify country.
(o) Terms; i.e., COD, n/30 days, etc.
(p) Mode of procurement; i.e., public bidding, canvass, negotiated sale,
and such other authorized modes. If "repeat order" indicated
previous Purchase Order and date which was used as basis.
(q) Taxes paid by agency; i.e., VAT, etc. If taxes are paid by supplier,
do not indicate.
16.4 Moreover, Section 9.2 of COA Circular 2012-001 dated June 14, 2012 prescribing
the Revised Guidelines and Documentary Requirement for Common Government
Transactions, provides the additional documentary requirements:
Basic Requirements Common to All Purchase under alternative mode
114
 Purchase Order/Letter Order/Contract, duly approved by the official concerned
and accepted by the supplier (date of acceptance must be clearly indicated,
especially when the time or delivery is dependent on or will be counted from
the date of acceptance of the purchase order/letter order/contract)
 Request for purchase or requisition of supplies, materials and equipment, duly
approved by proper authorities
 Original copy of the delivery invoice showing the quantity, description of the
articles, unit and total value, duly signed by the dealer or his representative and
indicating receipt by the proper agency official of items delivered.
 Inspection and acceptance report signed “Inspected by” by the authorized
agency inspector and signed “accepted by” by the authorized end-user to whom
the item was delivered or the property officer if item is for stock.”
 BAC Resolution recommending and justifying to the Head of Procuring Entity
(HOPE) the use of alternative mode of procurement and approval by the HOPE
of the BAC Resolution recommending award of contract.
16.5 Also, Section 9.1.3.1 of the same Circular provides that:

For procurement of drugs and medicines
 Certificate of product registration from Food and Drug Admin. (FDA)

 Certificate of good manufacturing practice from FDA
 Batch Release Certificate from FDA
 If the supplier is not the manufacturer, certification from the
manufacturer that the supplier is an authorized distributor/dealer of the
products/items.
16.6 In addition, Annex “H” Appendix A of the 2016 Revise Implementing Rules and
Regulations prescribes for the documents that the BAC shall require from suppliers,
contractors and consultants for Alternative Methods of Procurement.
115
Alternative Mayor's Professional PhilGEP PCAB NFCC Income/ Omnibus
Modality /Busines License/Curriculu S Reg. License (Infra.) Busines Sworn
s Permit m Vitae Number (Infra.) s Tax Statement
(Consulting Return
Services)
✓
For ABC
I. Direct ✓ ✓
above
Contracting
P500K
(Section 50)
II. Shopping
✓ ✓
[Sec 52.1 (b)]
III. Negotiated
Procurement
xxx
✓ ✓
For ABC For ABC
F. Small Value ✓ ✓ ✓ ✓
above above
Procurement
P500K P50K
(Section 53.9)
16.7 In CY 2022, the Municipality of Isabel purchased various supplies, materials and
equipment for the total amount of ₱2,006,985.85 thru Shopping and Small Value
Procurement, summary presented in Table 28 (details are shown in Appendix G.9).
Table 28. Summary of Procurement of Supplies and Equipment made in CY2022

Nature of Expenditure Amount
Property and Equipment ₱161,198.00
Office Supplies 1,147,562.00
Medicine and Medical Supplies 270,462.60
Other Supplies and Materials 427,763.25
TOTAL ₱2,006,985.85
16.8 Audit of vouchers and its supporting documents, records and reports disclosed the
following deficiencies and lacking documents:
a) The Purchase Orders lacked the necessary information such as:
- brand name
- food menu (for meals and snacks)
- Delivery terms
- Complete detailed item specification, including accessories i.e., narrative
description, size/dimension/volume, model, use of item, color, capacity,
horsepower, voltage, watts, gauge, kind of equipment where spare part is
to be used whether replacement or original (for spare parts), part number
of spare parts, type and classification of material, brand new or second
hand, etc.
- Mode of procurement
- Date accepted by the supplier
116
b) The Acceptance and Inspection Report does not indicate the brand name, PO
number, and date of Inspection.
c) Procurement under the Alternative Method of Procurement was not

supported with Mayor’s/Business Permit, PhilGEPS Registration and
Omnibus Sworn Statement (for ABC above P50,000);
d) Documents to support the procurement of construction materials and repair

of machineries and equipment such as, but not limited to, pre and post repair
inspection report and/or Program of Work indicating the list of materials
needed for the activity and plans/drawings (for construction projects); and
e) The required Certificate of Products Registration from the Food and Drug
Administration (FDA), Certificate of Good Manufacturing from FDA, Batch
Release Certificate from FDA, and Certification from the manufacturer that
the supplier is an authorized distributor of products/items were not attached
to the DV for the procurement of medicines amounting to ₱270,462.60.
f) Not supported with photos of items delivered, as additional evidence of the

received items.
16.9 The procurement of the items in Annex A should be properly controlled and
monitored through the essential information needed in every document required. The
absence of essential information such as the serial number, date prepared, date
received, delivery terms, and date of receipt of the P.O. by the supplier makes the
imposition of the liquidated damages for late delivery difficult and PO without brand
name exposes the Municipality to the risk of receiving items of low cost, poor
quality, and may not be in accord with the specifications and/or needs of the end-
user. Additionally, the absence of the Mayor’s or Business Permit and PhilGEP S
Registration casts doubt on the legitimacy of the supplier.
16.10 Moreover, the absence of the Certificate of Product Registration, Batch Release
Certificate from FDA and Certficate of Distributorship from the manufacturer casts
doubt on the genuineness, quality, and efficacy of the procured medicines.
16.11 The practice of disbursing government funds despite incomplete and deficient
supporting documents is a manifestation that management is not adhering to the
prescribed rules and regulations on the documentary requirements prior to the
disbursement of government funds and an indication that the internal control system
of the Municipality is not properly working.
a) Municipal Accountant to review the completeness of the supporting

documents of the disbursement vouchers before forwarding these to the
Local Chief Executive for approval.
117
b) MGSO/BAC Chairman to ensure submission of complete and
appropriate documentation for Shopping and Small Value Procurement
required in R.A. 9184 with completely filled-out PR, PO and AIR.
16.13 The GSO, Municipal Accountant and the BAC Chairman accepted the
recommendation and ensure strict compliance for all succeeding small value
procurements.
Unstamped “PAID” Disbursement Vouchers (DVs) and supporting documents
17. Paid Disbursement Vouchers (DVs) and their supporting documents lack the
essential information and were not stamped “PAID”, contrary to the pertinent
provisions of COA Circular 92-389 and Section 32 of the Manual on the New
Government Accounting System (MNGAS), Volume II that may facilitate the
possibility of reusing the same documents for another claim and creating
difficulty in identifying, monitoring, and tracking transactions.
17.1 COA Circular 92-389 dated November 3, 1992 modifying COA Circular 81-155,
dated February 23, 1981 provides:
2. Voucher Preparation
xxx
B. The "Voucher No." box shall indicate the number of the voucher in
accordance with COA Circular No. 78-79 dated April 5, 1978, which
prescribes the Voucher Numbering System. The voucher number shall
be indicated on the face of the voucher and on every supporting
document.
xxx
Q. Paid vouchers, including its supporting documents, shall be perforated

and conspicuously stamped Paid by the Cashier. The stamp shall
provide space for the number of the check issued and date of actual
payment, and its size should be 2" X 3".
17.2 In Section 32 of NGAS Manual, Volume II, provides accounting forms and reports
and its specific instructions, states:
Sec. 32. Disbursement Voucher (DV). – The Disbursement Voucher

(Annex 24) shall be used by local government agencies for all money claims. The
number shall be indicated on the DV and on every supporting document of the
claim. The supporting documents shall be listed on the face of the voucher and
in case more space is needed, the back of the DV shall be used.
118
17.3 Post-audit of the submitted paid DVs and the supporting documents of the
Municipality of Isabel for the period January to December 2022 revealed that the
supporting documents were not duly stamped “PAID” and DV serial number was
not indicated in each document, while, Box A-D of DVs do not bear the dates the
officials/employees concerned affixes their signatures on the document.
17.4 An appropriate internal control system for the preparation of documents should be
adopted by the Municipality to achieve the objective of accurate and reliable
financial information and compliance with laws, rules and regulations, which is
crucial in the efficient operation and decision-making of management.
17.5 These observations have been brought up by the Audit Team to the Municipal
Treasurer and explained that she is unaware of these guidelines while conforming to
the same practice of the predecessor.
17.6 In view of the foregoing, DVs and their supporting documents without the
appropriate stamped “paid” consequently risk the possible usage of the same
documents for another claim, and the absence of DV’s essential information creates
difficulty in identifying, monitoring, and tracking transactions
17.7 We recommended that the Municipal Treasurer, as the responsible officer,

ensure that all paid disbursement vouchers and the supporting documents are
properly stamped “PAID”, serially numbered and dates are indicated thereo f.
17.8 Likewise, we recommended that the Municipal Accountant ensure the

completeness of the supporting documents attached to the disbursement
voucher, and that the latter is properly accomplished before forwarding the
same to the LCE for approval.
17.9 Finally, we recommend that the LCE ensure strict compliance by the officials
concerned with the rules and regulations under COA Circular Nos. 92-389 and
78-79, and Volume II of NGAS Manual.
17.10 Both the Municipal Treasurer and Municipal Accountant concurred with the audit
recommendations and ensured strict compliance for subsequent disbursements
thereof.
PART III
STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT

RECOMMENDATIONS
119
Of the 102 audit recommendations embodied in the prior years’ Annual Audit Reports,
only 26 were fully implemented while 76 remained unimplemented.
Management Status of
Ref. Audit Observations Audit Recommendations
Actions Implementation
AAR The existence and We recommended that
CY accuracy of the the Municipal Mayor
2021- Property, Plant and require the Inventory
01 Committee to conduct the
Equipment (PPE)
physical count of PPE in
account with a
accordance with COA
carrying value of Circular 2020-006 and
P594,509,956.61 is instruct the Chairperson
unreliable due to: (a) of the Inventory
the difference of Committee to:
P74,552,041.78
between the balance of 1. prepare and submit to
the Municipal Mayor Not
the General Ledger
for his approval, a Implemented
(GL) and the Report Physical Inventory
on the Physical Count Plan (PIP) indicating Another audit
of Property, Plant and therein the specific observation on
PPEs is discussed
Equipment assignments/duties of in Part II of this
(RPCPPE), (b) the the Committee report.
inclusion of members, cut-off date
and schedule
unserviceable
specifying the dates
properties costing and locations of the
P4,496,566.96 and c) inventory taking
the provision of 10% activities from start up
residual value on the to the targeted
depreciable completion of the
components of the physical inventory;
road network system,
2. conduct the physical Not
contrary to inventory within the Implemented
International Public period identified in the
Sector Accounting PIP and tag all
Standards (IPSAS) 1 counted properties of
and COA Circulars the municipality;
Nos. 2020-006 and
3. categorize the Not
2015-008, thus,
accounted PPE using Implemented
affecting the fair the PPSAS account
presentation of the classification in the
PPE accounts balance RPCPPE and prepare
120
in the Statement of the report within 60
Financial Position as days from the
of December 31, 2021. completion of the
physical inventory and
furnish a copy of the
report to the COA
Team Leader,
Municipal Accountant
and Head of the
Property Unit of the
Municipality.
2. We also recommended
that the Municipal
Accountant:
4. effect the necessary Not

adjusting journal Implemented
entries on the
Depreciation of the
road component
accounts to establish
the correct balances of
the road network
components in the
financial statements;
5. earnestly comply with Not

the required Implemented
maintenance of
subsidiary records for
the roads network
components to
ascertain the
reliability of the PPE
account as presented
in the financial
statements; and
6. in coordination with Not

the General Services Implemented
Officer conduct a
reconciliation of the
PPEs included in the
121
RPCPPE with the
recorded properties in
the books of accounts
of the Municipality
and prepare the
necessary report on
the results of the
reconciliation and
submit to the
Municipal Mayor for
his appropriate action,
in cases of non-
existing/ missing
properties, if any.
7. Finally, we Not
recommended that the Implemented
Municipal Mayor,
together with the
and General Services
Officer, perform the
procedures to account
for non-
existing/missing
properties as a result
of the reconciliation
conducted to facilitate
the disposition of
these items in
accordance with the
provisions of COA
Circular No. 2020-006
to reflect a reliable
balance of the PPE
account in the
Financial Statement.
AAR The Accounts Payable We reiterated our audit No Action
CY account totaling recommendations in CYs Taken.
2021- P97,243,101.79 is 2017 and 2020 with
02 overstated by modification, that the Another audit
P31,522,390.76 due Municipal Accountant: observation on
Accounts Payable
to: (a) the inclusion of is discussed in
payables totaling to
122
P34,247,228.81 8. Prepare adjusting Part II of this Not
without supporting entry to drop from the report. Implemented
documents Accounts Payable
presented;(b) unsubstantiated
recognition of various claims totaling
transactions with no P36,497,012.81;
valid contracts and
uncertain deliveries 9. Require all End-User Not
costing Units to submit all Implemented
P1,444,273.00; (c) documents for the
inclusion of procurement of goods
undelivered and services charged
transactions totaling from the current year
P805,511.00; (d) appropriation to
erroneous recording of facilitate the recording
payable totaling of the expenses in the
P253,713.79; (e) books of accounts of
erroneous recording of the municipality; and
amounts paid in CY
2021 totaling 10. Keep the original file
P158,643.74 resulting of the vouchers and its Not
to understatement; and supporting documents Implemented
(f) exclusion of pertaining to all
various transactions recorded Accounts
incurred in 2021 but Payable until it is paid.
not yet paid totaling
P5,069,692.10, 11. Record only the
contrary to Section 4 accounts payable
of PD 1445, Section which were obligated Not
350 of RA 7160, and and have complete Implemented
International Public supporting
Sector Accounting documents.
Standard (IPSAS) 1
and 19, thereby 12. Stop the practice of
affecting the fair paying prior year’s
presentation of obligations which Not
accounts in the were not recorded as Implemented
financial statements. Accounts Payable.
AAR The reported balance We recommended that
CY of the Local DRRM the Municipal
2021- Fund as of year-end in Accountant:
03 the Notes to Financial
Statements was 13. Record only the Not
understated by accounts payable Implemented
123
P1,129,067.09 due to which were obligated
overstatement of and have complete
reported utilization by documents to support
the same amount, valid claim.
contrary to Appendix
A of the International 14. Review and reconcile Not
Public Sector monthly the LDRRM Implemented
Accounting Standards Fund Utilization
(IPSAS) 1, thereby Reports with the
affecting the reliabilit y accounting records to
of the disclosures ensure proper
reflected in the Notes monitoring of the
to Financial available and utilized
Statements. LDRRM Funds and
reflect reliable
information in the said
report.
15. Coordinate with the Implemented

Municipal Budget
Office to confirm the
proper charging of
disbursements from
the LDRRMF based
on the RAO
maintained by that
office.
16. Ensure that amounts Not

in the Utilization Implemented
Report are correctly
summarized and
reflected in the Notes
to Financial
Statements to provide
a reliable disclosure of
the LDRRM Fund at
the end of the year.
AAR Funds received from 17. We recommended to Fully
CY DBM for the LGSF make the necessary Implemented
2021- project in the amount adjusting entries for
04 of P11 million was not the recording of the
recorded in the Due to Fund transfer from
NGAs account of the DBM to the Trust
124
Trust Fund books, Fund account and
contrary to Section 6 deposit the fund to the
of COA Circular No. Trust fund bank
94-013 and IPSAS 1, account intended for
thus, funds may have the purpose.
been utilized for other
purpose and fairness 18. We also Fully
of the financial recommended that the Implemented
statements was Municipal Accountant
affected. prepare the
Disbursement
Voucher for the return
of the unutilized
amount totaling
P22,270.00 for the
completed projects to
the national
government through
the Bureau of
Treasury and submit
the required
Liquidation Reports to
the funding agencies
concerned.
AAR Various procurement We recommended that
CY for supplies and the Municipal Mayor
2021- materials and require:
05 Personnel Services
expenditures in CY 19. the Municipal Fully
2019 and CY 2020 Accountant to submit Implemented
totaling P2,691,262.87 explanation to the
were not recorded as Audit Team for
expenses in the year paying CYs 2019 and
these were incurred 2020 expenditures
nor were these from CY 2021
recognized as appropriations;
payables as of year-
end, contrary to R.A. 20. require all End-User Not
7160, thereby Units to submit all Implemented
rendering such documents for the
obligations invalid procurement of goods
which cannot be paid charged from the
in the subsequent current year
years. appropriation, the
125
obligations of the
suppliers having been
duly fulfilled, based
on the contract.
21. record all valid claims Not

chargeable against the Implemented
appropriations in the
year the expenses
were incurred in the
books of accounts of
the Municipality and
to recognize payables
for all unpaid
expenditures as of
year-end.
22. We also Not

Municipal Budget
Officer initiate the
enactment of an
Ordinance to make
available the
unexpended
appropriation which
were reverted to the
surplus of the General
Fund should there still
be payment of prior
year’s unpaid
obligations not
recorded as payables,
to avoid the erroneous
charging of prior
years’ expenditures to
the current year’s
appropriation.
AAR Fuel, Oil and We recommended that
CY Lubricants totaling the Municipal Mayor, as
2021- P6,953,880.02 for CY head of the agency:
06 2021 was directly
recognized as outright 23. require the General Fully
expense while a total Services Officer to Implemented
126
amount of submit explanation on
P654,367.75 remain the unaccounted fuel
unaccounted due to (diesel, gasoline and
non-rendition of unleaded gasoline).
reports on fuel This is without
consumption and prejudice to the
official travels issuance of a Notice of
pertaining to previous Disallowance, if
purchases made, warranted.
contrary to Paragraph
44 of the International 24. henceforth, prepare Another audit
Public Sector the Monthly Report of observation is Not
discussed in Part
Accounting Standards Supplies and II of this report. Implemented
(IPSAS 12) and COA Materials Issued
Circular No. 77-61, (MRSMI), duly
thus, affecting the fair supported with
presentation of the properly
Fuel, Oil, and accomplished RIS.
Lubricant Inventory
and expense account 25. instruct all driver Not
in the financial personnel of the Implemented
statements as of municipality to
December 31, 2021 properly accomplish
and regularity of these the Driver’s Trip
expenditures was not Tickets and prepare
ascertained. the report of official
travel monthly and to
submit the same to the
General Services
Officer for the
preparation of the
monthly report of fuel
consumption.
26. We further Another audit Not

recommended that the observation is Implemented
discussed in Part
Municipal Accountant II of this report
stop the practice of
recording
immediately to
expense account the
fuel, oil and gasoline
procured by the
municipality.
127
Recognize expense
based on the monthly
Report of Supplies
and Materials Issued,
supported by duly
approved RIS.
AAR The Municipalit y’s We reiterated our
CY available cash as of previous
2021- December 31, 2021 recommendations that the
07 was onlyMunicipal Treasurer
P17,723,287.67 which should:
is very insufficient to
cover its current 27. prepare a Daily Cash Fully
obligations and Trust Position Report, Implemented
Liabilities totaling segregated by
P103,937,626.24 and mandatory fund (20%
P108,986,031.69, DF, LDRRMF, etc.),
respectively, or a cash and submit the same to
overdraft of
the Municipal Mayor
P212,923,657.93 was
incurred, contrary to to inform him on the
Section 337 of R.A. availability of cash to
No. 7160 and pertinent support checks that he
provisions of the will sign;
Budget Operation
Manual for Local 28. maintain a record on
Government Units estimated and actual Not
(LGUs), collections and the Implemented
thus,thecapability of disbursements
the Municipality to therefrom, to make
deliver basic services sure that such
to its constituents may disbursements will not
be adversely affected.
exceed fifty percent
(50%) of the
uncollected estimated
revenue accruing to
the General Fund.
29. We reiterated the

recommendation that Fully
the Local Finance Implemented
Committee should
convene at least once a
128
month to discuss and
monitor whether the
targeted income is
attained with actual
receipts, and to adjust
cash disbursement
program for the
remaining months,
when necessary, to
prevent the incurrence
of cash overdraft.
30. We also reiterated the

recommendation that Not
the Municipal Implemented
Accountant should
assist the Municipal
Treasurer in
monitoring the Cash
in Treasury and Cash
in Bank balances by
tallying their
respective records
every end of the
month to ensure that
the LGU does not
incur any deficit and
overdraft.
Lastly, we recommended
that the Municipal Mayor
should:
31. through the Local

Finance Committee, Fully
propose a more Implemented
realistic budget,
taking into
consideration, among
others, the shortfall of
collections in the prior
years, full provision
for all statutory and
129
contractual
obligations of the
LGU, without
sacrificing mandatory
appropriations for
developmental
projects and disaster
risk reduction;
32. intensify the LGU’s

revenue collection
efforts, including the Fully
collection of prior Implemented
year’s uncollected
revenues; and
33. together with the

Department Heads,
exercise fiscal Not
restraint and practice Implemented
austerity measures to
conserve the minimal
resources of the LGU,
including the approval
of disbursements to
the most basic, urgent
needs only.
AAR The 20% 34. We reiterate our Another audit Not
CY Development Fund for recommendation that observation on Implemented
20% DF is
2021- CY 2021 totaling P29 the Municipal Mayor discussed in Part
08 million was not and other LGU II of this report.
utilized due to officials submit a
unimplemented PPAs, written explanation
contrary to the why the appropriation
objectives envisioned for the 20% DF was
in the Department of not used to implement
Budget and the programmed 20%
Management (DBM), DF projects and why
Department of was it utilized for
Finance (DOF), other purpose.
Bureau of Local
Government Finance
130
(BLGF) and
Department of Interior
and Local
Government (DILG)
Joint Memorandum
Circular (JMC) No. 1
s. 2020, thereby
depriving the
constituents of the
Municipality of the
benefits that could
have been obtained
from the mandated
developmental
programs and projects.
AAR Of the P12.5 million We recommended that
CY Local Disaster Risk the Municipal Mayor, as
2021- Reduction and Chairman of the
09 Management (DRRM) MDRRM Council,
Fund for CY 2021,
only P3,529,240.09 through the MDRRM
was utilized, while Officer:
P1,505,721.37 was Not
35. Ensure that the PPAs
realigned for non- Implemented
in the MDRRMFIP
disaster purposes,
are specific and
contrary to Republic
aligned with the
Act (RA) No. 10121
NDRRM Plan and the
andDILG MC No.
corresponding
2012-73, thus, the
performance
capacity of the
indicators are definite,
Municipality to
measurable, and
respond to disasters
achievable; and
and calamities was not
enhanced Not
andstrengthened. 36. Monitor and evaluate
the Programs/ Implemented
Projects/ Activities
incorporated in the
MDRRM Plan to
avoid duplication of
programs and identify
projects that can
address the current
state of calamity or
any calamity that may
131
possibly arise. Revise
the Plan, if necessary
and indicate specific
timeframe of
implementation.
37. Include in the Not

LDRRMF Investment Implemented
Plan the PPAs that are
to be undertaken using
the LDRRMF
unexpended balances
in the Trust Fund.
AAR Cash advances for 38. We recommended that Not
CY travel and training the concerned Implemented
2021- were continuously employees submit
10 granted to various within 30 days from
officials even if receipt of the AOM,
previous cash the liquidation reports
advances remain
and its supporting
unliquidated and cash
documents, otherwise,
advances granted to
some of the employees restitute/ return
with special purposes immediately the
were still not amount of their
liquidated, while unliquidated cash
dormant unliquidated advances.
cash advances totaling
P1,621,707.87 We recommended that
remained recorded in the Municipal Mayor:
the books, contrary to
Section 89 of P.D. 39. require the concerned
1445, COA Circular Not
employees to submit Implemented
No. 97-002 and COA within 30 days from
Circular 2016-005, receipt of this report,
resulting in the the liquidation report
accumulation of cash and its supporting
advances totaling documents, otherwise,
P6,128,945.77, the restitute/return
purposes of whic h immediately the
have already been amount of the
served and/or unliquidated cash
settlement could no advance;
longer be ascertained
132
as of December 31, 40. stop the grant of cash Not
2021. advances to officials Implemented
and employees with
outstanding cash
advances;
41. issue a directive to the

Municipal Treasurer Not
to withhold the Implemented
salaries of officials
and employees who
failed to liquidate their
cash advances, based
on the
recommendations of
the Municipal
Accountant, and;
42. file the request for Not

authority to write off Implemented
the dormant
unliquidated cash
advances to the COA
Audit Team Leader
(ATL) and/or
Supervising Auditor
(SA) after exerting
efforts to demand
settlement of the
accounts when the
circumstances would
warrant.
We recommended that
the Municipal
Accountant:
43. demand from the Not

accountable officers Implemented
with unliquidated cash
advances, the
immediate settlement,
refund or submission
of liquidation reports
133
on cash advances in
which purpose have
been served;
44. recommend to the Not

Municipal Mayor the Implemented
withholding of
salaries of the
accountable officers
who continue to fail to
submit their
Liquidation Reports
within the period
prescribed by
regulations;
45. prepare the schedule

of dormant Not
unliquidated cash Implemented
advances by
accountable
officer/debtor/govern
ment entity and by
account, to support the
request for write-off,
after exerting effort to
demand settlement of
the accounts, and;
46. discontinue
processing DVs for Not
grants of additional Implemented
cash advance to
officials and
employees with
unliquidated previous
cash advances to
avoid accumulation
thereof.
47. We also
recommended that the
Municipal Treasurer Not
withhold the salaries Implemented
134
of officials and
employees with
unliquidated cash
advances, as directed
by the Municipal
Mayor.
CY Payables amounting to We reiterated our Another audit
2020 P31,087,632.70 were recommendation in CY observation on
Accounts Payable
AAR recorded in the books 2017 AAR, with is discussed in
Finding without the necessary modification, that the Part II of this
No. 1 supporting documents Municipal Accountant report.
and even if no actual should:
CY claim has been filed,
2017 thus, overstating the 48. prepare adjusting Not
AAR Accounts Payable by entry to drop from Implemented
page no. the same amount, and Accounts Payable
32 related Expenses by unsubstantiated
P5,779,721.70, while claims totaling
CY unpaid expenditures in P31,087,632.70 unless
2012 CY 2020 totaling valid supporting
AAR P12,520,051.21, were documents are
page no. obligated in the RAO presented; and
33 but not recorded as
Accounts Payables by 49. keep the original file
the Municipal of the vouchers and its Not
Accountant due to the supporting documents Implemented
delay in the pertaining to all
submission of recorded Accounts
documents by the Payable until it is paid,
Municipal Budget and stop the practice
Officer which render of paying prior year’s
such obligations obligations which
invalid, pursuant to were not recorded as
R.A. No. 7160 and P.D Accounts Payable.
1445 and IPSAS 1.
50. We further
recommended that the Not
Municipal Budget Implemented
Officer stop the
practice of releasing
DVs to payees or
suppliers and ensure
that all the DVs which
remained unpaid as of
135
yearend, and duly
obligated in the RAO,
are transmitted to the
before the agreed cut-
off date to allow
recording of the same
in the books.
CY The LGU collected in 51. We recommended that Not
2020 advance a total of P25 the LGU should Implemented
AAR million as 2% share of reconcile first with
Findin the gross income of PASAR the latter’s
g No. Philippine Associated tax obligation, with
2 Smelting and Refining due consideration of
Corporation its advance
(PASAR), a PEZA- remittances, in order
registered enterprise that the correct
located in the income be recognized
Municipality of Isabel, and the other deferred
which turned out to credits be adjusted,
have been operating at before making any
a loss, and recorded request for advances
the collections under for its 2% share of the
Other Deferred gross income of
Credits which PASAR.
remained unearned at
yearend, while the 52. We also Not
Other Deferred recommended that the Implemented
Credits account Municipal Accountant
balance is misstated prepare the necessary
by P1,413,230.13 adjusting entry/ies for
contrary to the noted variances
Government and for the recognition
Accounting Manual of the earned portion
for Local Government of the advanced
Units. collections whenever
appropriate.
CY Disbursement 53. We recommended that Fully
2020 Vouchers and the Municipal Mayor Implemented
AAR supporting documents and Municipal
Finding for the cash advances Accountant submit
No. 5 for confidential written justification
expenses totaling why submission to
P1,100,000.00 were COA of the cash
136
CY not submitted to COA advances for
2017 within the prescribed confidential expenses
AAR period, while, was not made within
page additional cash the period prescribed
no. 56 advances were granted in conformity with the
despite non- existing regulations.
CY liquidation of previous
2016 cash advances drawn
AAR contrary to COA,
page DBM, DILG, CGC,
no. 50 DND Joint Circular
No. 2015-01, casting
CY doubt on the
2015 regularity, necessity
AAR and legality of the
page disbursements and
no. 59 understating the
confidential expense
account by
CY P1,100,000.00 in the
2009 year-end financial
AAR statements.
Findin
g No.
2
CY Unrestricted We recommended that
2020 disbursements were the Municipal Treasurer
AAR made despite the non- should:
Finding attainment of
No. 6 estimated income for 54. prepare a Daily Cash Fully
CY 2020 and funds for Position Report, Implemented
CY priority projects and segregated by
2019 mandatory obligations mandatory fund (20%
AAR were used for other DF, LDRRMF, etc.),
purposes that resulted and submit the same to
Finding in the incurrence of the Municipal Mayor
No. 1 cash overdraft to inform him on the
amounting availability of cash to
CY P297,560,574.20 at support checks that he
2017 year end contrary to will sign; and,
AAR Section 337 of
page R.A.7160 and other 55. maintain a record on
no.24 relevant laws and estimated and actual Not
regulations. collections and the Implemented
disbursements
137
CY therefrom, to make
2016 sure that such
AAR disbursements will not
page exceed fifty percent
no. 25 (50%) of the
uncollected estimated
CY revenue accruing to
2015 the General Fund.
AAR
Page 56. We reiterated the
no. 27 recommendation that Fully
the Local Finance Implemented
CY Committee should
2017 convene at least once a
AAR month to discuss and
page monitor whether the
no.27 targeted income is
attained with actual
receipts, and to adjust
cash disbursement
program for the
remaining months,
when necessary, to
prevent the incurrence
of cash overdraft.
57. We also reiterated the

recommendation that Not
the Municipal Implemented
Accountant should
assist the Municipal
Treasurer in
monitoring the Cash
in Treasury and Cash
in Bank balances by
tallying their
respective records
every end of the
month to ensure that
the LGU does not
incur any deficit and
overdraft.
138
Lastly, we recommended
that the Municipal Mayor
should:
58. through the Local Fully

Finance Committee, Implemented
propose a more
realistic budget,
taking into
consideration, among
others, the shortfall of
collections in the prior
years, full provision
for all statutory and
contractual
obligations of the
LGU, without
sacrificing mandatory
appropriations for
developmental
projects and disaster
risk reduction;
59. intensify the LGU’s

revenue collection
efforts, including the
collection of prior
year’s uncollected
revenues; and,
Implemented
60. together with the
Department Heads,
exercise fiscal
restraint and practice
austerity measures to
conserve the minimal
resources of the LGU,
including the approval Not
of disbursements to Implemented
the most basic, urgent
needs only.
CY The targeted projects 61. We recommended that Another audit Not
2020 for 20% Development the Municipal Mayor observation on Implemented
20% DF is
AAR Fund (DF) in CY 2020 and other LGU
139
Finding amounting officials submit a discussed in Part
No. 7 P27,135,953.80 were written justification II of this report.
not implemented by why the appropriation
CY the LGU of Isabel due for 20%DF was not
2019 to the utilization the used to implement the
AAR 20% DF appropriation programmed 20% DF
Finding for other purposes projects and was
No. 8 brought about by its utilized for other
dire financial purposes.
CY condition/cash
2016 overdraft contrary to
AAR DILG-DBM Joint
page Memorandum
no. 35 Circular (JMC) No.
2017-1 dated February
22, 2017 thus, the
LGUs targeted socio-
economic
development and
environmental
outcomes were not
achieved.
CY Only P2,650,596.05 or We recommended that
2020 17% of the the Municipal DRRMO
AAR P16,000,000.00 CY should:
Finding 2020 appropriation for
No. 8 Local Disaster Risk 62. maximize the Not
Reduction and utilization of the Implemented
CY Management Fund LDRRMF by
2019 (LDRRMF) was implementing the
AAR utilized, while PAPs in the LDRRMF
expenses totaling Investment Plan to
Finding P2,376,471.16 were strengthen the
No. 9 charged to prior years’ capability of the
LDRRMF Municipality to cope
CY unexpended balances with adverse effects of
2018 in the Trust Fund disasters and/or
AAR without a revised pandemic, and
Page no Annual Investment
44, Plan approved by the 63. include in their Not
local Sanggunian LDRRMF Investment Implemented
contrary to Section 21 Plan the PAPs that are
CY of RA 10121, Section to be undertaken using
2017 6.5 of the NDRRMC- the LDRRMF
140
AAR DBM-DILG Joint unexpended balances
page no. Memorandum in the Trust Fund.
51 Circular No. 2013-1
dated March 25, 2013 64. We recommended that Not
CY and DBM Local the MPDC prepares a Implemented
2016 Budget Circular No. Supplemental AIP
AAR 124 dated March 26, integrated therein the
page 2020. COVID 19 related
no. 44 PPAs, to be approved
by the Sanggunian, to
legally use the
unexpended balances
and to avoid
disallowance of the
transactions in audit.
CY The procurement of 65. We recommended that Fully
2020 relief goods totaling the MSWDO and Implemented
AAR P7,152,263.16 was not Secretary to the
No. 9 conducted pursuant to Mayor, in-charge of
Government distribution, should
Procurement Policy submit justification on
Board (GPPB) the deficiencies noted
Circular No. 01-2020 in the distribution of
on Emergency relief goods for
Procurement, while Auditor’s evaluation.
the distribution of
relief goods to 66. We also Fully
affected households recommended that the Implemented
during COVID-19 Bids and Awards
pandemic was not Committee (BAC) and
supported with its Secretariat should
complete submit justification
documentation on the deficiencies
contrary to Section 4.6 noted in the
of P.D. No. 1445, procurement of relief
thereby rendering the goods for Auditor’s
propriety of the evaluation. For similar
transactions transaction in the
unreliable. future, we
recommended that the
BAC and its
Secretariat should
comply substantially
the requirement of the
141
laws, rules and
regulations applicable
in the circumstances
to avoid audit
suspension.
CY Submission of the 67. We recommended that Not
2020 necessary outputs/ the LCE requires the Implemented
AAR deliverables or reports consultants for
No. stipulated in the Terminal Operation,
10 Contracts of Service Local Economic
with the consultants Enterprise and Bulk
hired by the LGU for Water and Port
its various local Operation Facilities
economic enterprises submit to the Audit
were not strictly Team their
enforced, hence, the deliverables like the
purpose of hiring these comprehensive
consultants to increase business plan and
LGU revenues were physical report of
not realized and the operations for their
disbursements totaling assigned economic
P3,670,212.50were enterprise or the
suspended in audit. operational plan as
Further, copies of the stipulated in the
contract of service of Contract of Service;
other consultants hired
in other services were 68. We recommended that Not
not submitted to COA. the Local Finance Implemented
Committee prepares
the financial reports
for the economic
enterprise of the LGU
and conduct the semi-
annual financial self-
sufficiency review for
evaluation by the
Municipal Mayor and
Sangguniang Bayan.
CY Disbursements 69. We recommended that Not
2020 totaling P861,987.37 the Municipal Implemented
AAR were approved by the Administrator and
Findin Municipal Secretary to the
g No. Administrator and Mayor should submit
11 Secretary to the Mayor valid justification for
142
who had no authority approving LGU
to approve the same disbursements which
contrary to the GAM were not authorized
for LGUs and through an Executive
Memorandum Order.
Circular No. 03 series
of 2016, resulting in 70. We further Fully
unauthorized recommended that, Implemented
disbursements henceforth, any acts of
approval of LGU
transactions should be
based on a written
authority to avoid
disallowance in audit.
CY Disbursements 71. We recommended that Not
2020 totaling P359,895.00 the Municipal Mayor Implemented
AAR for meals/food should submit
Findin supplies of frontline justification for the
g No. personnel, grant of meal
13 P277,000.00 were allowances in cash to
granted in cash and not aforementioned
supported with Punong Barangays,
complete Watchman and Health
documentation Officer. We also
contrary to Section 4.6 recommended that the
of P.D. No. 1445, BAC and its
Government Secretariat should
Procurement Policy submit to the Auditor
Board (GPPB) for evaluation,
Circular No. 01-2020 justification on the
on Emergency deficiencies noted in
Procurement and the procurement of
DBM LBC No. 125, supplies such as
thereby rendering the instant noodles,
propriety of the crackers, 3n1 coffee
transactions and distilled water.
questionable.
CY Procurement of 72. We recommended that Fully
2020 materials for the Municipal Mayor, Implemented
AAR Construction of the MDRRM Officer
Findin Comfort Rooms for and other officials
g No. Badjao Community, concerned submit
14 the labor for justifications why
Construction of disbursements should
143
Materials Recovery not be disallowed in
Facility (MRF), and audit, for using the
vials of Rabisin for LDRRMF on
Mass Dog Vaccination expenditures which
totaling P215,518.00 were not in related to
were charged to the DRMM purposes.
LDRRM Fund,
contrary to DILG 73. We also
Memorandum recommended that the Fully
Circular No. 2012-73 Municipal Mayor and Implemented
and DILG-DBM Joint other officials
Memorandum concerned utilize the
Circular No. 2013-1, LDRRMF solely and
thus resulting in strictly, for disaster-
irregular expenditures. related activities as
mandated in the
NDRRMC-DBM-
DILG JMC No.
20131.
CY Collectors do not 74. We recommended that Fully
2020 remit their collections the aforementioned Implemented
AAR daily to the collectors should
Findin Liquidating Officer submit explanation/
g No. contrary to P.D. No. justification for the
15 1445 and Local delayed remittance of
Treasury Operations daily collections
Manual (LTOM), thus exposing government
exposing government funds to the risk of
funds to the risk of loss, theft or misuse.
loss, theft or misuse to
the disadvantage of
the municipality.
CY Due to unrecorded 75. We recommended that Fully
2019 transactions caused by the Municipal Implemented
AAR unsubmitted reports Accountant demand
Findin and documents, the from the Municipal
g No. Cash in Bank account Treasurer the
2 balance of P42 million submission of lacking
as of December 31, DVs instead of
2019 was understated retaining the
by P4,143,829.23, transactions as
contrary to PPSAS 1 reconciling items for
and COA Circular No. long period
96-011, thus the actual
144
cash position of the 76. We reiterated our Fully
Municipality in its previous Implemented
depository banks was recommendation that
not accurately the Municipal
presented in the Treasurer submit
financial statements. weekly to the
Accounting Office all
paid disbursement
vouchers with the
supporting documents
for recording in the
books and to avoid
penal sanctions.
77. We further Fully

Municipal Mayor
impose on the
Municipal Treasurer
the pertinent sanctions
prescribed by law for
non-rendition of
accounts if delayed
submission of his
monthly reports
persist.
CY Receivables We recommended that
2019 pertaining to cash the Municipal Mayor:
AAR advances granted in
Findin prior years for travels 78. Direct the Municipal Not
g No. and special purposes Accountant to enforce Implemented
4 amounting to liquidation of cash
P10,314,817.89 as of advances granted in
December 31, 2019 prior years by
remain unliquidated, deducting
unsubstantiated and immediately from the
dormant for several salaries of the
years without any accountable officers
request for write-off, their unliquidated
contrary to COA amounts when
Circular Nos. 97-002 documents are
and 2016-005, thus, available to prove the
the financial incurrence of the
statements included transactions,
145
receivables which no otherwise, impose
longer exist. legal sanctions on the
officials and
employees who refuse
to abide with the
regulations.
79. Direct all officials and

employees to submit Not
Liquidation Reports Implemented
on their cash advance
when the purpose has
been served, and
within the period
prescribed by law
CY Unpaid rentals from We recommended that
2019 tenants of Public the Municipal Treasurer
AAR Market Stalls totaling and the Market
Finding P1,520,690.20 were Supervisor:
No. 5 left unattended and
were not recorded in 80. intensify and prioritize Fully
the books, contrary to the collection of all Implemented
IPSAS 9, thus the overdue receivables
Income and from stall tenants to
Receivable accounts increase the income of
of the LGU were the LGU for
understated by the maintenance of the
same amount while its stalls;
operating funds were
not augmented. 81. furnish the Municipal
Accountant with the Fully
monthly Billing Implemented
Statements of stall
renters so that the
pertinent Receivables
and Income will be
recorded in the books
of the LGU.
82. We recommended that

the Municipal Fully
Accountant record the Implemented
receivables in the
books once copies of
146
billing statements are
received so that the
actual income and
receivable accounts
can be reported in the
CY The balances of RPT 83. update the Another audit Not
2019 and SET Receivables Taxpayer’s Index observation is Implemented
discussed in Part
AAR and the corresponding Card and reconcile II of this report.
Finding Deferred RPT the same with the
No. 6 accounts were not records of the
accurately presented Municipal
CY in the financial
Assessors;
2016 statements of the LGU
AAR as of December 31,
page no. 2019, contrary to 84. prepare a certified
38, CY PPSAS I and pertinent list of all real Not
2014 provisions of RA7160, property tax Implemented
AAR due to erroneous delinquencies which
computation of the remained
amount set-up as uncollected or
receivables and unpaid for at least
recording of one (1) year
collections from Real including reasons for
Property Taxes, which such non-collection,
resulted to a net and;
understatement of
P946,194.38 on the Fully
affected accounts. 85. submit such list to Implemented
the Sangguniang
Bayan on or before
December 31 of the
year immediately
succeeding the year
in which the
delinquencies were
incurred, and request
for assistance from
the SB in the
enforcement of the
remedies for
collection provided
in RA No. 7160.
147
86. prepare the necessary Not
accounting entries to Implemented
adjust the
overstatement of Real
Property Tax/Special
Education Tax
Receivable accounts
and other related
accounts in the
CY The Inventory Report We recommended that
2019 on Road Network the Municipal Engineer
AAR submitted by the and the General Services
Findin Municipal Engineer Officer accomplish the
g No. does not contain following:
7 reliable, complete and
necessary data, does 87. complete the conduct
not include the lot of inventory of the Not
components of the LGU’s local roads; Implemented
road networks, was and prepare an
not reconciled with accurate Inventory of
accounting records Local Roads and
and was not submitte d reconcile with
to DILG, contrary to accounting records,
Section 524 of RA No. and;
7160 and DILG
Memorandum 88. submit the Inventory Not
Circular No. 2011-52. of Local Roads to Implemented
DILG immediately
and every three years
thereafter, without
need for demand from
the said Office.
CY Unutilized funds 89. We recommended that Another audit Not
2019 received from the Municipal observation is Implemented
discussed in Part
AAR National Government Treasurer and the II of this report.
Finding Agencies in prior Municipal Accountant
No. 10 years totaling trace records on the
P13,228,797.05 were unknown balances or
CY not returned to source prepare necessary
2017 agencies since the adjustments, if found
AAR equivalent cash were that these were
page no longer available, improperly recorded
no. 48 contrary to pertinent
148
provisions of PD 1445 under Due to NGAs
and COA Circular 94- account.
013, while balances of
P1,987,336.20 cannot
be substantiated for
lack of records thereby
rendering the
liabilities of the LGU
unreliable.
CY Accomplishments of 90. We recommended that Fully

2019 the LGU on GAD- the Municipal Mayor Implemented
AAR related programs and require all Department
Finding projects in CY 2019 Heads concerned to
No. 11 were very low because implement their
implementation of respective programs
CY activities and projects and projects included
2018 appropriated in the in the LGU’s Annual
AAR GAD Plan and Budget GAD Plan and Budget
Page were not prioritized , duly approved by
no 61 such that the minimum DILG.
allocation of 5% of the
annual appropriations
required in PCW-
DILG-DBM-NEDA
JMC No. 2013-01 was
not complied.
CY Physical count of 91. We recommended that Another audit Not

2018 LGU properties in CY the Inventory observation is Implemented
discussed in Part
AAR 2018 was not Committee complete II of this report.
Page completed and the physical count of
no. reconciled with all properties of the
27, accounting records, Municipality every
CY while unserviceable year, prepare the
2011, Office Equipment and required RPCPPE,
2012, Motor Vehicles were reconcile the same
2015 not requested for with Accounting
AARs disposal, contrary to records and submit the
pertinent sections of reconciled RPCPPE to
PD 1445 and COA.
Paragraph 29(b) of
PPSAS, thus the
existence and
149
accuracy of Property,
Plant and Equipment
with carrying value of
P568,028,580.55
cannot be ascertained.
CY Advances to Officers 92. File with COA a Not
2018 and Employees request for authority Implemented
AAR totaling P6,723,528.62 to write-off cash
Page no as of December 31, advances granted to
38 2018 remain already deceased
unliquidated for 91 Accountable Officers;
CY days to over ten years
2015 because submission of 93. Stop the grant of Not
AAR liquidation reports additional cash Implemented
page were not strictly advances to officials
no. enforced while write- and employees with
38, off of cash advances of previous cash
deceased personnel advances.
CY were not requested,
2014 contrary to pertinent
AAR provisions of COA
page Circular Nos. 97-002
no. 40 and 2012-001, thus,
expense accounts were
CY understated and LGU
2013 funds remain
AAR unaccounted.
page
no. 22
CY Barangay shares from 94. We recommended that Prior years Not
2018 Real Property Tax the Municipal Mayor Barangay Implemented
AAR collected by the and all department shares were
Page no municipality totaling heads exercise not fully
42, CY P12,103,633.69 as of prudence in the remitted as of
2017 December 31, 2018 disbursement of LGU December 31,
AAR were not remitted funds. Limit 2022
quarterly to the disbursements to
CY concerned barangays priority expenditures
2016 contrary to Section only based on the
AAR 271(d) of R.A. 7160, approved Annual
page thus, the cash Budget.
no. 35 therefrom was at risk
of being used by the 95. Prioritize the issuance Not
municipality for other of checks for the Implemented
150
purposes and the remittance of all RPT
barangay constituents shares due to
were deprived of the Barangays concerned.
developmental
projects that could
have been
implemented out of it.
CY The minimum 96. We recommended that Not
2018 requirements for the the Municipal Mayor, Implemented
AAR operation of controlled and other LGU
Page dumpsites were not officials concerned,
no 59 complied by the LGU, accelerate the
contrary to pertinent acquisition of a lot for
provisions of RA No. the municipal sanitary
9003 and its IRR, thus, landfill. If not yet
the environment and available, comply
public health of the strictly with the
constituents were not minimum
adequately protected. requirements in the
operation of the
LGU’s controlled
dumpsite to safeguard
the environment and
health of its
constituents.
CY Delays in the 97. Impose liquidated Another audit Not
2017 completion of fifteen damages on payments observation is Implemented
discussed in Part
AAR (15) projects with to contractors the II of this report.
page contract cost totaling amount equal to at
no. 43 P9,733,557.69 were least one tenth (1/10)
neither supported with of one percent of the
approved time cost of the
extensions nor unperformed portion
imposed liquidated of works for every day
damages contrary to of delay pursuant to
pertinent provisions of Item 8.1 of Annex “E”
the Manual of of the 2016 Revised
Procedures for the IRR of RA No. 9184.
Procurement of
Infrastructure Projects 98. We also
for Local Government recommended Not
Units and Revised Municipal Accountant Implemented
Implementing Rules submit immediately
and Regulations (IRR) the Report of
151
of Republic Act (R.A.) Disbursement and
No. 9184; thus, the Fund Utilization
delivery of intended Reports to the
services to identifiable source
beneficiaries were agencies on all
consequently delayed. completed
programs/projects
including information
on the remittance of
the unused balances.
CY Various 99. We recommended that Not
2014 disbursements an explanation and Implemented
AAR totalling P694,000.67 authority be submitted
page was charged directly by the Municipal
no. 49 to the RPT share of the Accountant for the
barangays charging of the noted
expenditures directly
from the Due to LGUs
– 25% Barangay
Share account of the
LGU.
CY The amount of P655, 100. We recommended Not
2014 577.25 was expended for the refund of the Implemented
AAR for the Study and excessive travelling
page Educational expenses of P167,
no. 51 Tour/Lakbay Aral of 328.00 by the
the Punong Barangays participants of the
in August 2013 and educational tour to
October 2014. Batangas and
Oriental Mindoro.
CY Copies of 101. We recommended Another audit Not

2010 POs/contracts for the that the LCE should observation is Implemented
discussed in Part
AAR delivery of concrete require the officer/s II of this report.
Findin mix, supplies, concerned to strictly
g electrical materials adhere to the
No.5 and showbiz services provisions of COA
totalling P5, Circular No. 2009-
987,246.10 were not 002 and COA
submitted to the Circular 96-010.
concerned auditor
within the prescribed
time contrary to COA
Circular No. 2009,
152
thus preventing the
auditor to review the
Post/contracts and
inform management of
any defects and/or
deficiencies that may
be observed therein.
AAR Ownership of land and 102. The LCE should Not
2007 buildings having a instruct the Implemented
Findin total cost of P14, municipal assessor
g No. 878,078.95 and P98, to coordinate with
1 355,858.41, and to request from
respectively, cannot the municipal
be validated due to the accountant the list of
absence of Certificates all land, buildings
of Titles and the and land
failure of the improvements
municipal assessor’s constructed/acquired
office to effect by the municipality.
accurate information Conduct ocular
in the Declaration of inspection of these
Real Property. properties to validate
Likewise, no DRPs existence, utilizat ion
were issued for Land and condition for
Improvement having a issuance of DRPs for
total cost of P5, correction of
409,309.96 in information thereat.
violation of Sections Preparation and
201 and 202 of RA issuance of DRPs
7160. should be prioritized.
PART IV- APPENDICES
A. Financial Statements by Fund
Statement of Financial Position
153
 General Fund A.1
 Special Education Fund A.2
 Trust Fund A.3
Statement of Financial Performance
 General Fund B.1
 Special Education Fund B.2
 Trust Fund B.3
Statement of Changes in Net Assets-Equity
 General Fund C.1
 Special Education Fund C.2
Statement of Financial Cash Flows
 General Fund D.1
 Special Education Fund D.2
 Trust Fund D.3
Statement of Comparison of Budget and Actual Amount
 General Fund E.1
 Special Education Fund E.2
B. Status of Appropriation, Allotments and Obligation

 General Fund F.1
 Special Education Fund F.2
C. Others
 Accounts Payable with supporting documents paid in CY 2022 G.1
 Accounts Payable without supporting documents paid in CY 2022 G.2
 CY 2022 AP – With Supporting Documents G.3
 CY 2022 AP – Without/ No Supporting Documents Presented G.4
 Transactions incurred in CY 2022 not yet paid at yearend but were
G.5
not recorded as payable (Unrecorded Payables)
 Utilization of the 20% Development Fund G.6
 Expenditures reimbursed by Officials and Employees for CY 2022 G.7
 Municipal vehicles that didn’t bear government (red) plates and/or the G.8
“For Official Use Only” marking
 procured supplies and materials thru shopping and small value
G.9
procurement
Appendix A.1
154
Appendix A.2
155
Appendix A.3
156
Appendix B.1
157
Appendix B.2
158
Appendix B.3
159
Appendix C.1
160
Appendix C.2
161
Appendix D.1
162
Appendix D.2
163
Appendix D.3
164
Appendix E.1
165
166
167
Appendix E.2
168
Appendix G.1
Accounts Payable with supporting documents paid in CY 2022
Payee Obligation No. Amount

CY 2018
ISABEL EDUCATIONAL SUPPLY 18126095 ₱43,495.00
ABS MARKETING & GEN. MDSE. 18104389 4,870.00
ISABEL EDUCATIONAL SUPPLY 18073261 4,980.00
ABS MARKETING AND GEN MDSE 18126089 48,870.00
ISABEL EDUC. SUPPLY 18093824 47,087.00
KML MKTG. & GEN. MDSE. 18051810 46,020.00
KML MKTG. & GEN. MDSE. 18125907 34,900.00
TULING ENTERPRISES 18126140 33,961.50
CY 2019
KML MARKETING & GEN. MDSE. 19094033 49,046.00
LINGANAY ENTERPRISES 19125904 8,394.00
PROS. ERWIN JAMES B. FABRIGA 19093741 5,000.00
KMLMARKETING & GEN. MDSE. 19104524 49,517.00
CY 2020
EDDIE G. AGUSTIN 20125166 2,195.00
ISIDRO C. REQUITILLO 20125163 825.00
TERESITA A. CUBICO 20103501 400.00
169
ONE-STOP RESOLUTION & TRADING CORP. 20093261 20,800.00
ONE-STOP RESOLUTION & TRADING CORP. 20072507 13,500.00
HOTEL MOUSSAKA FUNCTIONS AND RESTAURANT 20125130 19,247.20
RICHARD AGUJAR 20125265 1,800.00
RICHARD AGUJAR 20125297 450.00
MARK JEFFERSON B. SIAO 20125270 3,900.00
VICTORIANO U. MONTANO 20125277 12,150.00
JULIUS M. ESBER 20125272 5,100.00
ALEJANDRO OMPAD 20125284 2,100.00
ALEJANDRO OMPAD 20020486 450.00
ARSE REFILLING STATION 20114269 900.00
LINGANY ENTERPRISES 20125376 29,590.00
JACQUELINE R. SUSON 20124935 1,200.00
MA.LISA P. AMSON,CPA 20114302 275.00
NOEL R. GUBALANE 20082834 480.00
NOEL R. GUBALANE 20082833 1,280.00
CHRISTIAN JASON LIMBO 20125259 2,550.00
RYAN P. LISONDRA 20125278 2,100.00
MA. CINDERELLA BAYOT 20125266 2,400.00
FELICISIMO C. COLON 20125267 2,550.00
GENO PASUHIL 20125060 3,000.00
JERIC P. ROCHE 20125271 6,300.00
JULIUS P. ORTIZ,JR 20125064 1,500.00
GLENN P. DECLARO 20125054 6,900.00
MARVEN SANCHEZ 20125067 750.00
PAQUITO E. LAZO 20125061 2,250.00
ROLITO BALBERO 20125052 1,500.00
DEMPOL B. ERASMO 20125264 1,800.00
ALEXIS ESPENIDO 20125228 2,250.00
JONAS JAN S. JABONETE 20125258 900.00
JONIVIE E. PENINSULA,JR 20125162 2,700.00
EDDIE G. AGUSTIN 20062061 442.00
170
FLORELYN M. CABREROS 20124846 675.00
JENETH S. CABONEGRO 20125279B 450.00
RENEE LAINE S. JABONETE 20125281 300.00
JUANITO L. LEPORADA 20124384 300.00
ROBERTO A. SIMBAJON 20072466 495.00
JANETH A. REQUITILLO 20125229 9,150.00
MELANIE D. LAMOSTE 20125230 9,150.00
LALAINE E. BALERMO 20125004 12,750.00
SAMIE M. GALOS 20103497 800.00
IMELDA BAYOT 20125226 450.00
DIOSDADO TANDO 20124379 300.00
TERESITA A. CUBICO 20103814 2,271.00
MA. JOENALYNN L. RAYANDAYAN 20125062 2,250.00
VICTORIANO U. MONTANO 20125293 4,200.00
CHRISTIAN JASON LIMBO 20125053 750.00
DORTE E. LINGANAY 20125042 450.00
VICKY B. WENCESLAO 20125273 1,500.00
ROGELIO HERMOSO 20124838 600.00
ALEJANDRO OMPAD 20072461 1,350.00
ROBERTO A. SIMBAJON 20124549 1,800.00
ROBERTO A. SIMBAJON 20124553 1,160.00
RICHARD AGUJAR 20125056 320.00
NOEL R. GUBALANE 20113999 720.00
JONATHAN PELIN 20125279 450.00
CY 2021
FLAVIANO C. CENTINO JR. 21082910 22,000.00
FLAVIANO C. CENTINO JR. 21082911 11,000.00
MA. LISA P. AMSON, CPA 21103763 1,500.00
MA. LISA P. AMSON, CPA 21103764 500.00
JKN CAR RENTAL 21041293 45,000.00
ABRAHAM C. ACORDA 21114424 2,300.00
CHEF LYN'S SNACK BAR 21114006 16,665.00
BENECIO ROSABELLA WATER STATION 21103907 3,040.00
BENECIO ROSABELLA WATER STATION 21114236 760.00
MARLITA G. TANTE 21103845 4,448.00
PEMC 21114041 41,929.41
PEMC 21114042 39,290.21
PEMC 21114043 35,180.55
PELAGIO P. GALBAN 21124507 22,000.00
ENGR. ALLAN L. INDOLOS 21124506 22,000.00
JEFRED ENTERPRISES 21114028 39,000.00
171
ALMIRA G. VILLASERAN 21051677 1,200.00
MITZI C. AMODIA 21103904 2,550.00
MITZI C. AMODIA 21113981 5,250.00
EDDIE G. AGUSTIN 21124496 22,709.00
RSO AND SONS BUILDERS AND SUPPLIERS INC. 21124503 49,400.00
RODGIE D. ISADA 21124513 15,000.00
LUCE ENTERPRISES 21124773 48,750.00
PEMC 21124521 45,638.85
PEMC 21124522 45,902.71
PEMC 21124519 44,438.69
PEMC 21124520 45,693.05
FIONA JANISA D. EGARDO 21062104 800.00
MARK VINCENT B. CARBAQUIL 21103597 1,050.00
PROVINCIAL TREASURER OFFICE 21124764 170,000.00
PLDT 21124735 14,000.00
GO ENTERPRISES 21114340 49,596.00
GO ENTERPRISES 21114339 25,979.00
MERCEDITA T. ROSALES 21124776 2,040.00
PEMC 21124980 44,537.85
PEMC 21124525 43,072.34
PEMC 21124786 46,970.04
PEMC 21124783 44,947.30
PEMC 21124785 45,468.75
PEMC 21124784 43,004.92
PEMC 21124524 47,943.37
PEMC 21124523 45,567.88
ANILYN B. MANGUBAT 21093302 1,900.00
GREENWARE CUSTOMIZED SYSTEMS & PC ACCS. 21093443 48,481.00
ALMA C. MAÑOSA 21040977 500.00
LANIE MARJAS 21051406 5,000.00
JEANY CATERING SERVICE/REQUITILLO, RUFFA 21114223 25,000.00
MAE LONGAKIT
MAE LONGAKIT
PEMC 21124789 46,751.79
PEMC 21124790 41,408.84
PEMC 21124787 47,903.15
PEMC 21124788 46,664.21
PEMC 21124791 35,153.86
PEMC 21124981 46,538.23
PEMC 21124982 46,692.11
PELAGIO P. GALBAN 21124775 22,000.00
ENGR. ALLAN L. INDOLOS 21124774 22,000.00
EDDIE G. AGUSTIN 21124769 22,709.00
SJO4 BASILIO S MAULA, JR. 21124533 3,000.00
172
RODGIE D. ISADA 21124988 15,000.00
LEYECO V 21124500 6,587.05
LEYECO V 21124544 13,897.41
LEYECO V 21124543 5,093.45
ROVELSON R. VELMONTE 21124505 58,333.33
ABELARDO T. SALAMAT 21113983 100,000.00
LUVILLISA LEI C. FULLON 21125197 1,500.00
PEMC 21124984 45,417.27
PEMC 21124983 44,437.36
PEMC 21124985 44,917.62
PEMC 21125081 45,506.64
PEMC 21125082 46,409.29
PEMC 21125083 45,428.79
PEMC 21125084 46,125.78
CAITH & I GRILLED AND RESTAURANT 21124842 37,500.00
CAITH & I GRILLED AND RESTAURANT 21124840 15,000.00
MAE LONGAKIT
MAE LONGAKIT
PEMC 21125087 45,740.95
PEMC 21125086 40,843.22
PEMC 21125290 45,725.56
LEYECO V 21124830 5,666.00
LEYECO V 21124932 4,362.60
ALMIRA G. VILLIASERAN 21124792 1,200.00
MERCIDITA T. ROSALES 21125167 840.00
LEYECO V 21124767 7,221.41
LEYECO V 21124770 17,346.96
LEYECO V 21124864 129.91
LEYECO V 21124865 3,792.31
LEYECO V 21125007 34,583.05
LEYECO V 21125439 66,882.62
LEYECO V 21125440 52,768.57
LEYECO V 21124971 4,109.72
NATY GOLO 21124675 5,000.00
PEMC 21125291 49,366.87
PEMC 21125292 47,652.21
PEMC 21125294 46,376.94
PEMC 21125295 47,826.53
PEMC 21125293 47,026.61
MITZI C. AMODIA 21125166 2,850.00
MITZI C. AMODIA 21125193 896.00
173
NATIONAL DEVELOPMENT COMPANY 21124766 10,671.51
IGGY'S HOMETEL 21103627 16,000.00
LEYECO V 21125427 11,103.26
DUNHILL D. DE LEON 21124677 3,450.00
DUNHILL D. DE LEON 21124678 3,300.00
MITZI C. AMODIA 21125164 4,650.00
NARCISA D. TAMPOS 21114357 1,500.00
SHERYL A. PAGADORA 21125178 5,000.00
ATTY. MELINDA C. DOMAEL 21124623 14,600.00
ABRAHAM ACORDA 21125035 107,220.00
FERDINAND A. SERRANO 21093309 3,000.00
JEANY CATERINF SERVICE 21124841 40,000.00
SEBASTIAN CARE PHARMA 21125079 195,678.29
EDDIE G. AGUSTIN 21125163 1,080.00
ELAINE BRILLANTES 21103773 600.00
MICHELE Y. BAJE 21103645 900.00
MEDILYN PAUTAN 21103643 1,800.00
LEYECO V 21125426 5,306.44
CIRILO CAPUYAN 21125098 2,250.00
CIRILO CAPUYAN 21125097 2,250.00
ALEJANDRO OMPAD 21125099 600.00
LILT L. CLEMEÑA 21124540 750.00
LILT L. CLEMEÑA 21124539 1,000.00
INNOVE COMMUNICATIONS,INC. 21093306 1,999.99
ENGR. SAMIE M. GALOS 21125159 1,400.00
JACQUELINE R. YUSON 21124676 3,970.00
MARTINS LIVING WATER REFILLING STATION 21072288 750.00
MARTINS LIVING WATER REFILLING STATION 21041002 810.00
MARTINS LIVING WATER REFILLING STATION 21125008 1,650.00
LILT CLEMEÑA 21125190 1,050.00
LILT CLEMEÑA 21114023 900.00
RUTHLYN P. GORGONIO 21124534 1,110.00
RUTHLYN P. GORGONIO 21114232 4,090.00
174
RUTHLYN P. GORGONIO 21124974 350.00
ALMIRA G. VILLASERAN 21125078 650.00
JACQUILYN M. PARBA 21125413 2,250.00
ELENITA A. TAYO 21124600 750.00
NOELANE JOY L. CAMACHO 21125407 1,400.00
NOELANE JOY L. CAMACHO 21125423 750.00
VIVIAN E. ARANETA SARI-SARI STORE 21124782 4,500.00
REQUITILLO, RHUFFA MAE LONGAKIT 21124849 38,750.00
ANNABEL B. AMODIA 21124777 1,290.00
ARSE PURIFIED DRINKING WATER 21114031 2,820.00
ANNABEL B. AMODIA 21124742 2,670.00
ALDEN A. MARTIN 21103509 3,120.00
PAYROLL 21114072 2,736.00
PAYROLL 21114075-21114087 656,754.45
No available data 21114090-95, 2,041,142.28
21114097-108
No available data 21114109-113 488,798.28
PAYROLL 21114405 4,788.00
PAYROLL 21114406 2,736.00
PAYROLL 21114407 2,736.00
PAYROLL 21114408 2,736.00
PAYROLL 21114409-20 651,981.01
PAYROLL 21114432-34 97,215.00
PAYROLL 21114435-38 336,314.50
PAYROLL 21114439 28,356.50
PAYROLL 21114440-57 1,475,116.50
PAYROLL 21124537 19,570.20
No available data 21124581, 374,000.00
21124583-96
PAYROLL 21124607-22 377,610.18
PAYROLL 21124626-36 645,311.72
PAYROLL 21124637 5,472.00
PAYROLL 21124638 6,072.63
PAYROLL 21124639 2,736.00
PAYROLL 21124640 41,965.52
PAYROLL 21124641 2,508.00
175
No available data 21124645-46, 1,633,180.21
21124648-57,
21124659-63
PAYROLL 21124741 8,524.93
PAYROLL 21124752 28,800.00
PAYROLL 21124798-816 1,493,867.68
PAYROLL 21124817-20 336,314.50
PAYROLL 21124821 46,872.00
PAYROLL 21124824 28,356.50
PAYROLL 21124894-909 656,504.82
PAYROLL 21125050-61 523,008.69
PAYROLL 21125140-54 397,984.83
RATA 21125124 67,500.00
RATA 21125124 67,500.00
RATA 21125342-60 286,200.00
PAYROLL 21124893 2,736.00
PAYROLL 21124910; 637,513.29
21124912-22
PAYROLL 21125071 2,508.00
No available data 21125314 6,384.00
PAYROLL 21125330-41 517,300.24
PAYROLL 21124855 13,000.00
PAYROLL 21124851 93,600.00
PAYROLL 21124852 93,600.00
PAYROLL 21125040 100,000.00
PAYROLL 21125067 118,088.00
PAYROLL 21125068 51,464.88
PAYROLL 21125070 4,000.00
PAYROLL 21125069 28,839.50
PAYROLL 21125318-29 632,823.18
TOTAL ₱ 24,865,932.03
176
Appendix G.2
Account Payables without documents paid in CY 2022
Payee ALOBS no. Amount

CY 2019
Arse Purified Water 19125377 ₱ 1,290.00
Hotel Moussaka Functions and Restaurant 19072934 49,756.00
CY 2020
Aileen T. Cordeño 20093389 350.00
Ligaya E. Hermoso 20082640 1,450.00
Juliet D. Olivar 20125280 450.00
Alejandro Ompad 20072453 450.00
Rosilo C. Carbon 20072457 2,100.00
20072456 450.00
20125282 450.00
Arse Purified Water 20113973 13,680.00
Arse Refilling Station 20072245 780.00
Ella Rea Montebon 20072455 450.00
Bjorn Boyd D. Monforte 20125307 4,632.00
Stephen E. Hermoso 20072454 450.00
Luce Enterprises 20062025 7,740.00
Linganay Enterprises 20125187 37,695.00
Jennifer D. Francisco 20093349 675.00
20093348 500.00
Florelyn M. Cabreros 20125310 360.00
20125309 2,000.00
Romeo Enzo 20125176 750.00
Ike P. Paglinawan 20124386 750.00
Jennifer D. Francisco 20125185 500.00
Juliet D. Olivar 20124387 4,350.00
Teresita A. Cubico 20030786 400.00
Ella Rea Montebon 20103772 2,250.00
Hon. Godfrey T. Alcantara 20103778 450.00
Eliener A. Araño 20124385 450.00
Rosilo C. Carbon 20125225 1,950.00
Imelda Bayot 20072458 450.00
Almira G. Villaseran 20082806 600.00
CY 2021
Roberto A. Simbajon 21020325 1,333.00
21020327 460.00
21020329 1,120.00
21020333 1,325.00
EUTIQUIO L. DELA CERNA 21020489 450.00
JUNARD R. SURIGAO 21030829 900.00
ALR Space Rental and Related Services 21041280 44,800.00
JKN CAR RENTAL 21041292 45,000.00
177
GILBERTO NUÑEZ, JR. 21051368 1,200.00
VICKY B. WENCESLAO 21051374 300.00
EFLEDA C. MAGLA-OY 21072557 45,000.00
21082905 1,400.00
RUTHLYN P. GORGONIO 21083008 384.00
21083009 1,120.00
RANEL LASQUITES 21083059 2,400.00
NIÑO JOHN P. MANTUA 21083060 1,500.00
ANA MARIE S. AZARCON 21093153 32,440.29
No Available Data 21103543 93,838.07
MARILOU D. URGEL 21103543 93,838.07
ARMIDA C. CAMINERO 21103547 50,000.00
JEONAMIRA M. BERNALES 21103552 1,800.00
No Available Data 21103635 200.00
BRIAN KYLLE B. UBUZA 21103642 2,400.00
JOBERT FABRIQUE 21103644 600.00
VILMA M. CONSTANTINO 21103646 900.00
MARTIN'S LIVINGWATER REFILLING STATION 21114120 2,400.00
21114239 2,220.00
LILT L. CLEMEÑA 21114329 1,000.00
21114331 900.00
LILT L. CLEMEÑA 21114422 1,010.00
21114423 985.00
LILT L. CLEMEÑA 21124538 950.00
MARIE FLOR S. VALERIO 21124750 1,500.00
MA LISA P. AMSON, CPA 21124937 740.00
21124975 400.00
21124976 600.00
21124979 240.00
INSP TERESO T TUAZON 21125175 3,000.00
SJ04 BASILIO S MADULA JR 21125179 3,000.00
SHERYL A. PAGADORA 21125180 5,000.00
LEYECO 21125199 27,998.02
178
Delima's Computer Repair and Services 21125204 2,675.00
LEYECO 21125226 14,353.91
CIRILO CAPUYAN 21125227 750.00
EUTIQUIO L. DELA CERNA 21125399 3,300.00
ISABEL WATER DISTRICT 21125455 31,674.90
JACQUELINE R. SUSON 21083111A 2,100.00
179
180
Luvillisa Lei C. Fullon 21125005 30,018.00
TOTAL ₱3,445,970.50
181
Appendix G.3
CY 2022 AP – With Supporting Documents
Payee Alobs Number Amount Account Code

JULIUS CESAR T. MATIGA 22124499 ₱ 2,300.00 5 02 03 990
JACQUILYN M. PARBA 22030824 18,721.85 5 01 04 030
AILEEN T. CORDEÑO 22030827 79,081.58 5 01 04 030
EFLEDA C. MAGLA-OY 22062090 23,810.89 5 01 04 030
DORTE E. LINGANAY 22030554 42,976.73 5 01 04 030
DEBORAH S. ROQUE 22082650 35,500.00 5 01 04 030
ADELINA C PEREZ 22030555 41,095.37 5 01 04 030
PRINCETON V. YAMAS 22051586 91,162.47 5 01 04 030
SWINIE C. YAMAS 22051606 35,043.47 5 01 04 030
CHRISTINA C. CELEDONIO 22051704 20,161.99 5 01 04 030
ANJOLO B. DINOY, JR. 22051780 60,005.94 5 01 04 030
ELEUTERIO C. CARILLO, JR. 22061871 50,001.75 5 01 04 030
LEANDRO V. ALCORROUE 22062085 24,002.37 5 01 04 030
MITZI C. AMODIA 22124182 2,400.00 5 02 01 010
GILBERTO NUNEZ, JR. 22124430 750.00 5 02 01 010
RUTHLYN P. GORGONIO 22124419 1,184.00 5 02 01 010
JEFFIN V. GALOS 22124456 1,784.00 5 02 01 010
PRESCILLA G. OUANO 22124404 1,500.00 5 02 01 010
ALMA M. FLANDEZ 22124418 390.00 5 02 01 010
ATTY. EDGARDO C. CORDEÑO 22124303-A 28,396.00 5 02 01 010
ATTY. JOHANNA CASS A. LICUP 22124420 12,555.00 5 02 01 010
JULIUS CESAR T. MATIGA 22124417 16,735.00 5 02 01 010
NERISSA ZAIRA D. LABORDO, MD 22124405 7,420.00 5 02 01 010
NERISSA ZAIRA D. LABORDO, MD 22124412 7,586.00 5 02 01 010
JEROME G. VILLARIN 22124460 5,850.00 5 02 01 010
JENNIFER C. CATAM-ISAN 22124461 7,500.00 5 02 01 010
DONNA A. MONTALBAN 22124470 450.00 5 02 01 010
GEOFFREY G. ANG 22124471 450.00 5 02 01 010
VENZE S. LIMOSNERO 22124472 450.00 5 02 01 010
NARITO P. ALVAREZ 22124467 450.00 5 02 01 010
JESELLE GAIL L. REASOL 22124502 13,909.60 5 02 01 010
ENRICO P. SOROTE 22124534 404.00 5 02 01 010
ALMA C. MAÑOSA 22124614 4,394.00 5 02 01 010
SAMUEL C. DAYANDAYAN 22124593 2,392.00 5 02 01 010
KEAN FERNAND L. BOCABO 22121610 1,202.00 5 02 01 010
HON. ADAM A. FUENTES 22124655 750.00 5 02 01 010
PAUL VILLANUEVA 22124656 750.00 5 02 01 010
STEVE AÑORA 22124657 750.00 5 02 01 010
ZEKE MITCHOLO T. RAMIREZ 22124168 4,268.00 5 02 01 010
LLORRAINE ROSE S. ALFANTA 22124542 7,500.00 5 02 01 010
ANGIE S.DE LA CRUZ 22124666 1,434.00 5 02 01 010
MITZI C. AMODIA 22124739 2,100.00 5 02 01 010
MITZI C. AMODIA 22124740 2,250.00 5 02 01 010
INNA CHRISTIA H. LUCE 22124738 1,210.00 5 02 01 010
MA. FLORA G. CERO 22124592 2,184.00 5 02 01 010
JENNIFER D. FRANCISCO 22124771 784.00 5 02 01 010
ROBERTO A. SIMBAJON 22124759 1,144.00 5 02 01 010
ALMA C. MAÑOSA 22124732 1,184.00 5 02 01 010
182
MARIA ANTONITA M. BARICUATRO 22124665 750.00 5 02 01 010
ROEL YUSON 22124745 750.00 5 02 01 010
ROEL YUSON 22124746 750.00 5 02 01 010
ETHEL R. CASOLARI 22124664 750.00 5 02 01 010
ALMIRA G. VILLASERAN 22124662 600.00 5 02 01 010
LUVILLISA LEI C. FULLON 22124705 2,998.00 5 02 01 010
JACQUELINE R. SUSON 22124775 4,576.00 5 02 01 010
EDGARDO C. CORDEÑO 22124792 29,520.18 5 02 01 010
EDGARDO C. CORDEÑO 22124795 5,388.00 5 02 01 010
ALMIRA G. VILLASERAN 22114134 1,200.00 5 02 01 010
GLENN FEDERITO M. CERILLO, JR. 22124338 3,860.00 5 02 01 010
HON. ALDEN A. MARTIN 22114048 750.00 5 02 01 010
HON. ALDEN A. MARTIN 22103404 750.00 5 02 01 010
JENNYLYN P. DEQUINO 22124173 750.00 5 02 01 010
GILBERTO NUÑEZ, JR. 22082832 600.00 5 02 01 010
ROEL YUSON 22124459 4,800.00 5 02 01 010
ROEL YUSON 22124477 600.00 5 02 01 010
ROEL YUSON 22124476 1,500.00 5 02 01 010
ROEL YUSON 22124474 2,250.00 5 02 01 010
ROEL YUSON 22124475 1,500.00 5 02 01 010
LORNA F. PEÑEDA 22114081 1,334.00 5 02 01 010
NALYN B. ABORDO 22114085 1,334.00 5 02 01 010
MARLOU I. CALOB 22114086 1,784.00 5 02 01 010
MA. FLORA CERO 22114019 2,834.00 5 02 01 010
PROSERPINA G. LABARDA 22114084 1,334.00 5 02 01 010
EXEQUIEL GALOS JR. 22114135 1,350.00 5 02 01 010
JEFFIN V. GALOS 22114082 1,334.00 5 02 01 010
ELSE R. VELMONTE 22114083 1,334.00 5 02 01 010
DENIEZA N. JUMUAD 22114165 85,518.00 5 02 01 010
ANGIE S. DELA CRUZ 22124288 1,050.00 5 02 01 010
ELENITA A. TAYO 22124169 2,399.00 5 02 01 010
GILBERTO M. NUÑEZ, JR. 22114136 1,500.00 5 02 01 010
ZOSIMO RIOS JR. 22124407 600.00 5 02 01 010
ALBERTO B. LAMOSTE 22114133 600.00 5 02 01 010
EXEQUIEL GALOS 22114132 600.00 5 02 01 010
EXEQUIEL D. GALOS JR. 22114036 450.00 5 02 01 010
DR. RENALYNE D. GARCIA 22103553 900.00 5 02 01 010
DR. RENALYNE D. GARCIA 22103554 750.00 5 02 01 010
ARCELL B. ROJAS 22103562 750.00 5 02 01 010
GLENNFREY A. CENTINO 22103557 150.00 5 02 01 010
GLENNFREY A. CENTINO 22103551 750.00 5 02 01 010
GEOFFREY G. ANG 22103555 600.00 5 02 01 010
SARAH O. ROSALITA 22103561 750.00 5 02 01 010
ROSELYN T. AMANCIO 22103559 600.00 5 02 01 010
SIMEON LARIBA 22103558 600.00 5 02 01 010
ZOSIMO RIOS JR. 22114032 450.00 5 02 01 010
MARCELINO B. ARELLANO JR. 22114031 450.00 5 02 01 010
183
MICHAEL BALORO 22114028 600.00 5 02 01 010
ARMINIDA VELEZ 22114029 450.00 5 02 01 010
ARMINIDA VELEZ 22114030 600.00 5 02 01 010
JEONAMIRA M. BENALES 22114023 434.00 5 02 01 010
GILBERTO M. NUÑEZ JR. 22114033 150.00 5 02 01 010
LUTH DECIO 22114161 750.00 5 02 01 010
LIGAYA E. HERMOSO 22114149 750.00 5 02 01 010
DONNA A. MONTALBAN 22061927 1,350.00 5 02 01 010
LIEZL L. DELANTE 22041074 600.00 5 02 01 010
LIEZL L. DELANTE 22041426 600.00 5 02 01 010
WILFREDO R. BARTOLINI 22041075 600.00 5 02 01 010
CHERRIELYN JOYCE F. MISA 22041263 750.00 5 02 01 010
HAZEL B. DAGTING 22051495 3,994.00 5 02 01 010
ELENITA A. TAYO 22062163 3,634.00 5 02 01 010
ALEJANDRO OMPAD 22061934 2,400.00 5 02 01 010
NERISSA ZAIRA D. LABORDO, MD. 22020427 1,350.00 5 02 01 010
NERISSA ZAIRA D. LABORDO, MD. 22020436 750.00 5 02 01 010
LIEZL L. DELANTE 22061925 600.00 5 02 01 010
ELENITA A. TAYO 22051496 1,534.00 5 02 01 010
TULING ENTERPRISES 22030883 24,885.00 5 02 01 010
MICHELLE Y. BAJE 22062154 784.00 5 02 01 010
VILMA REQUITILLO 22062146 494.00 5 02 01 010
NERISSA ZAIRA D. LABORDO, MD. 22062172 7,860.00 5 02 01 010
JO2 ALLAN R. PEREZ 22124646 3,900.00 5 02 01 010
JO2 ALLAN R PEREZ, ET. AL 22124647 3,450.00 5 02 01 010
MARLITA G. TANTE 22124478 4,066.00 5 02 01 010
RAMIL C. LARIOSA 22124695 660.50 5 02 03 010
MITZI C. AMODIA 22124685 2,070.00 5 02 03 010
MITZI C. AMODIA 22124684 2,931.00 5 02 03 010
TERESITA A. CUBICO 22124741 260.00 5 02 03 010
ALMA C. MAÑOSA 22124677 1,074.00 5 02 03 010
RSO AND SONS BUILDERS AND 22124454 20,104.00 5 02 03 010
SUPPLIERS, INC.
KML MARKETING & GEN. SERVICES 22124668 145,000.00 5 02 03 010
SUPPLIERS, INC.
ABS MARKETING & GEN. MDSE 22020398 49,470.00 5 02 03 010
SUPPLIERS, INC.
184
ONE-STOP RESOLUTION & TRADING CORP. 22124189 2,750.00 5 02 03 010
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
RUTHLYN P. GORGONIO 22124221 570.00 5 02 03 010
PMAJ FLORANDO S. RELENTE 22093281 1,120.00 5 02 03 010
PMAJ FLORANDO S. RELENTE 22093280 2,025.00 5 02 03 010
SUPPLIERS,INC.
HON. ADAM A. FUENTES 22124658 1,805.00 5 02 03 010
NEED INK SALES 22082793 21,600.00 5 02 03 010
ABS MARKETING AND GENERAL MDSE 22030599 13,483.00 5 02 03 010
KML MARKETING & GEN. MDSE. 22041046 49,150.00 5 02 03 010
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
TULING ENTERPRISES 22062238-C 22,475.00 5 02 03 010
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
LUCE ENTERPRISES 22030719 19,900.00 5 02 03 010
SUPPLIERS,INC.
MED CAPTAIN MARKETING 22062164-C 19,038.00 5 02 03 080
MED CAPTAIN MARKETING 22062164-D 7,228.00 5 02 03 080
MED CAPTAIN MARKETING 22062164-A 28,230.00 5 02 03 080
MED CAPTAIN MARKETING 22062164-B 30,892.50 5 02 03 080
MED CAPTAIN MARKETING 22072350 5,212.00 5 02 03 080
185
PEMC 22103620 48,050.60 5 02 03 090
PEMC 22103622 35,760.25 5 02 03 090
PEMC 22103621 31,532.25 5 02 03 090
PEMC 22124490 46,607.06 5 02 03 090
PEMC 22124491 49,221.61 5 02 03 090
PEMC 22124486 49,577.86 5 02 03 090
PEMC 22124487 49,884.29 5 02 03 090
PEMC 22124488 19,550.00 5 02 03 090
PEMC 22124489 47,786.23 5 02 03 090
PEMC 22124485 49,461.24 5 02 03 090
PEMC 22124484 48,250.30 5 02 03 090
PEMC 22124483 48,373.65 5 02 03 090
PEMC 22124492 49,636.65 5 02 03 090
PEMC 22124719 44,456.40 5 02 03 090
PEMC 22124720 49,585.53 5 02 03 090
PEMC 22124718 45,163.90 5 02 03 090
PEMC 22124717 43,546.05 5 02 03 090
PEMC 22124714 49,670.50 5 02 03 090
PEMC 22124715 48,869.20 5 02 03 090
PEMC 22124716 49,923.00 5 02 03 090
PEMC 22124711 49,601.15 5 02 03 090
PEMC 22062173 49,773.66 5 02 03 090
PEMC 22062180 49,309.19 5 02 03 090
PEMC 22062216-F 49,242.28 5 02 03 090
PEMC 22062177 49,370.90 5 02 03 090
PEMC 22062175 49,412.17 5 02 03 090
PEMC 22062176 49,590.96 5 02 03 090
PEMC 22062174 49,312.40 5 02 03 090
SUPPLIERS,INC.
SUPPLIERS, INC.
NERISSA ZAIRA D. LABORDO, MD 22124681 962.00 5 02 03 990
ARCHILLES A. SILVA, DM 22124679 2,172.00 5 02 03 990
FLORDELIZA C. DE LOS SANTOS 22124704 2,420.00 5 02 03 990
SUPPLIERS, INC.
SUPPLIERS, INC.
SUPPLIERS, INC.
SUPPLIERS, INC.
SUPPLIERS, INC.
186
CMBA CONSTRUCTION SUPPLY 22124272-A 4,274.00 5 02 03 990
CMBA CONSTRUCTION SUPPLY 22124411-B 42,464.00 5 02 03 990
CMBA CONSTRUCTION SUPPLY 22124272-C 26,668.00 5 02 03 990
CMBA CONSTRUCTION SUPPLY 22124411-C 6,723.00 5 02 03 990
CHAMICOS BUILDERS 22124411-A 19,304.00 5 02 03 990
CMBA CONSTRUCTION SUPPLY 22124272-B 12,520.00 5 02 03 990
ABRAHAM C. ACORDA 22124696 2,300.00 5 02 03 990
CMBA CONSTRUCTION SUPPLY 22124224 27,442.20 5 02 03 990

LILT L. CLEMEÑA 22103595 1,077.00 5 02 03 990
LILT L. CLEMEÑA 22093277 480.00 5 02 03 990
LILT L. CLEMEÑA 22093278 786.00 5 02 03 990
SHIERBEN JOHN C. JORDA 22114076 7,800.00 5 02 03 990
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
ETHEL COCO LUMBER & MINI HARDWARE 22082791 72,193.00 5 02 03 990
RAMIL C. LARIOSA 22124302 1,550.00 5 02 03 990
LILT L. CLEMEÑA 22124179 1,557.50 5 02 03 990
LINGANAY ENTERPRISES 22062123 41,000.00 5 02 03 990
187
LUZ E. CONCILLADO 22103543 2,960.00 5 02 03 990
ABRAHAM C. ACORDA 22082657 2,300.00 5 02 03 990
VIVIAN E. ARANITA SARI-SARI STORE 22093351 4,500.00 5 02 03 990
VIVIAN E. ARANITA SARI-SARI STORE 22093352 4,500.00 5 02 03 990
SUPPLIERS,INC.
KNC PRINTZ 22051490 31,200.00 5 02 03 990
RHU ISABEL / ZEKE MITCHOLO T. 22051585 1,885.00 5 02 03 990
RAMIREZ
SUPPLIERS,INC.
ISABEL EDUCATIONAL SUPPLY 22030806 4,985.00 5 02 03 990
SUPPLIERS,INC.
SUPPLIERS,INC.
TULING ENTERPRISES 22062238-A 49,825.00 5 02 03 990
KML MARKETING & GEN. MDSE. 22062238-B 49,661.00 5 02 03 990
ABRAHAM C. ACORDA 22124707 2,300.00 5 02 03 990
GERARDO P. EMBOG 22124694 570.00 5 02 03 990
PEMC 22062181 49,079.74 5 02 03 990
ISABEL WATER DISTRICT 22124508 6,191.00 5 02 04 010
ISABEL WATER DISTRICT 22124247 564.00 5 02 04 010
188
LEYECO V 22124433 9,752.01 5 02 04 020
LEYECO V 22124434 3,482.95 5 02 04 020
LEYECO V 22124432 55,219.69 5 02 04 020
LEYECO V 22124450 8,136.83 5 02 04 020
LEYECO V 22124458 3,058.62 5 02 04 020
LEYECO V 22124451 28,651.26 5 02 04 020
LEYECO V 22124452 156.75 5 02 04 020
LEYECO V 22124449 13,416.55 5 02 04 020
LEYECO V 22124447 10,089.95 5 02 04 020
LEYECO V 22124172 35,325.75 5 02 04 020
LEYECO V 22124416 19,765.27 5 02 04 020
LEYECO V 22124413 19,032.34 5 02 04 020
LEYECO V 22124435 26,150.43 5 02 04 020
LEYECO V 22124494 91,013.56 5 02 04 020
LEYECO V 22124495 10,009.61 5 02 04 020
LEYECO V 22124594 37,278.49 5 02 04 020
LEYECO V 22124708 2,458.54 5 02 04 020
LEYECO V 22124737 50,790.69 5 02 04 020
LEYECO V 22124809 6,584.68 5 02 04 020
LEYECO V 22124807 140.87 5 02 04 020
LEYECO V 22124806 21,711.82 5 02 04 020
LEYECO V 22124278 3,474.55 5 02 04 020
LILT L. CLEMEÑA 22124285 2,448.00 5 02 05 030
PLDT 22124462 14,000.00 5 02 05 030
PLDT 22124463 14,000.00 5 02 05 030
ENGR. SAMIE M. GALOS 22051829 1,400.00 5 02 05 030
ROVELSON R. VELMONTE 22030628 58,333.33 5 02 11 990
MARIA SARAH G. LANUGAN 22124659 2,400.00 5 02 13 040
GEOFFREY G. ANG 22124436 360.00 5 02 13 050
DONNA A. MONTALBAN 22124437 800.00 5 02 13 050
RAMIL C. LARIOSA 22124595 400.00 5 02 13 050
MAXICOOL 22072587 3,500.00 5 02 13 050
189
JULIUS CESAR T. MATIGA 22124295 2,110.00 5 02 13 060
ORMOC EVERGREEN TRADING 22124273 19,469.00 5 02 13 060
RIEKI ENTERPRISES 22124274 3,625.00 5 02 13 060
JEFRED ENTERPRISES 22051841 93,350.00 5 02 13 060
SHERYL A. PAGADORA 22072345 5,000.00 5 02 14 060
SHERYL A. PAGADORA 22072569 15,000.00 5 02 14 060
GSIS 22113797 4,170.27 5 02 16 030
NENITA P. IGNACIO 22124213 1,500.00 5 02 99 990
RHIANS SNACK HOUSE 22051674 18,000.00 5 02 99 990
ALR SPACE RENTAL AND RELATED 22041265 48,000.00 5 02 99 990
SERVICES
KAYEMARIES BREAD HAUZ 22124406 7,365.75 5 02 99 990
ANGELITO B. ROJAS 22124336 1,500.00 5 02 99 990
MARILYN C. BARRAL 22124335 1,500.00 5 02 99 990
RONA M. ROJAS 22124290 1,500.00 5 02 99 990
RODYLYN B. LIMPIOS 22124337 1,500.00 5 02 99 990
ISABEL TRANSPORT COOPERATIVE 22113886 13,000.00 5 02 99 990
MARTIN'S LIVING WATER EFILLING 22124426 960.00 5 02 99 990
STATION
STATION
ARSE PURIFIED WATER 22124457 1,975.00 5 02 99 990
RUEL A. MESTERIO 22124425 1,500.00 5 02 99 990
AGNEL C. PANIS 22124424 1,500.00 5 02 99 990
ARIANNE R. BOHOT 22124411 1,500.00 5 02 99 990
RONILO C. POGOY 22124408 1,500.00 5 02 99 990
AUDACIOUS SITE ENTERPRISES 22124468 47,000.00 5 02 99 990
ARSE REFILLING STATION 22124188 960.00 5 02 99 990
RITCHIE S. DU 22114069 1,500.00 5 02 99 990
MELD'Z CATERING SERVICES 22124464 4,800.00 5 02 99 990
RUBY ANNA B. ALFORNON 22124505 1,500.00 5 02 99 990
WENELITA O. AGOT 22124504 1,500.00 5 02 99 990
AVELINA D. POGOY 22124503 1,500.00 5 02 99 990
JUAN V. VILLACORTEZA 22124557 1,500.00 5 02 99 990
GENALYN R. ALITO 22124556 1,500.00 5 02 99 990
ARSE PURIFIED DRINKING WATER 22124529 1,530.00 5 02 99 990
DEBIE B. OLIVEROS 22124528 2,150.00 5 02 99 990
MA. JACKELYN D. CERILLO 22124596 829.00 5 02 99 990
ROSITA I. DAYANDAYAN 22124612 1,500.00 5 02 99 990
190
STATION
DIANE JANE B. SALAS 22124690 3,000.00 5 02 99 990
HENRY B. REVAMONTE 22124678 3,000.00 5 02 99 990
ALMA C. MAÑOSA 22124674 3,000.00 5 02 99 990
ALMA C. MAÑOSA 22124675 1,810.00 5 02 99 990
MARILYN C. BARRAL 22124335 1,500.00 5 02 99 990
JONALYN N.TAPIC 22124683 1,500.00 5 02 99 990
ARCHILLES A. SILVA, DM 22124680 1,657.00 5 02 99 990
ARSE REFILLING STATION 22113880 1,500.00 5 02 99 990
MUNICIPAL TREASURER 22124682 48,000.00 5 02 99 990
ALMA C. MAÑOSA 22124676 3,000.00 5 02 99 990
STATION
NENENG'S FASTFOOD 22124702 10,486.00 5 02 99 990
NENENG'S FASTFOOD 22124701 15,945.00 5 02 99 990
MARTIN'S LIVING WATER EFILLING 22124501 2,700.00 5 02 99 990
STATION
EDDIE G. AGUSTIN 22124643 1,190.00 5 02 99 990
DIVINE WORD HOSPITAL 22124774 104,000.00 5 02 99 990
DIVINE WORD HOSPITAL 22124773 235,000.00 5 02 99 990
STATION
VANIN'S DIGITAL SIGN 22124423 2,020.00 5 02 99 990
STATION
KML MARKETING AND GEN. 22124289 76,000.00 5 02 99 990
MERCHANDISE
SJO1 JELSON Q GALLEGO JR 22114022 3,000.00 5 02 99 990
DANILO C. BASNILLO, SR. 22124219 1,500.00 5 02 99 990
ELVIRA C. FLORES 22103400 1,500.00 5 02 99 990
FE ARELLANO HANVIVATPONG 22114067 11,880.00 5 02 99 990
FE ARELLANO HANVIVATPONG 22114058 45,000.00 5 02 99 990
JOZA V. PAJARES 22114160 600.00 5 02 99 990
JOZA V. PAJARES 22114159 130.00 5 02 99 990
ARCHILLES A. SILVA 22124297 23,750.00 5 02 99 990
KOKIKA'S CATERING SERVICES 22124187 30,000.00 5 02 99 990
JAVIER G. ALEGRE 22124269 1,500.00 5 02 99 990
LIEZEL S. ARAÑO 22124225 1,500.00 5 02 99 990
LILIA A. ESPERAS 22124184 1,500.00 5 02 99 990
MARITES C. ROJAS 22114060 1,500.00 5 02 99 990
JUANITA M. BIORE 22113733 1,500.00 5 02 99 990
191
JUANITA P. TABASA 22114039 1,500.00 5 02 99 990
MARLINDA P. REUSORA 22113806 1,000.00 5 02 99 990
RHEA MAE G. ELIDEROS 22093270 1,500.00 5 02 99 990
RHODORA AÑORA 22124266 1,500.00 5 02 99 990
ERNESTO B. DAYANDAYAN 22124267 1,500.00 5 02 99 990
LENDY LOU S. ROSQUITES 22114087 1,500.00 5 02 99 990
HELEN P. RUTA 22114089 1,500.00 5 02 99 990
RUTH C. ALIPIO 22114088 1,500.00 5 02 99 990
JUN REY B. INOPIQUEZ 22114011 1,500.00 5 02 99 990
ABELYN M. DAYANDAYAN 22114090 1,500.00 5 02 99 990
BERMALIE D. BELARO 22124271 1,500.00 5 02 99 990
ANNABELLA B. ROCHE 22124268 1,500.00 5 02 99 990
AUDACIOUS SITE ENTERPRISES 22124186 22,800.00 5 02 99 990
ERWIN JAMES B. FABRIGA 22093184 3,000.00 5 02 99 990

MARIO O. QUINIT 22093187 3,000.00 5 02 99 990
LORNA P. OBUS-PADES 22093185 3,000.00 5 02 99 990
JOSEPH KIRBY L. CALIPAYAN 22093188 3,000.00 5 02 99 990
MARIA CORAZON S. VERGARA-NARAJA 22093189 3,000.00 5 02 99 990
GIRLIE M. BORREL-YU 22093190 3,000.00 5 02 99 990
MELISSA R. MACAPUGAS 22093186 3,000.00 5 02 99 990
MARIO O. QUINIT 22103567 3,000.00 5 02 99 990
LORNA P. OBUS-PADES 22103566 3,000.00 5 02 99 990
ISABEL TRANSPORT COOPERATIVE 22113935 24,500.00 5 02 99 990
ADVANCE & AUTO PARTS 22103594 2,250.00 5 02 99 990
MA. LISA P. AMSON, CPA 22124279 250.00 5 02 99 990
GILBERTO M. NUÑEZ 22124280 1,800.00 5 02 99 990
JOZA V. PAJARES 22124276 130.00 5 02 99 990
JOZA V. PAJARES 22124277 1,140.00 5 02 99 990
JOZA V. PAJARES 22124275 2,120.00 5 02 99 990
JOZA V. PAJARES 22124177 720.00 5 02 99 990
JOZA V. PAJARES 22124178 930.00 5 02 99 990
ATTY. MELINDA C. DOMAEL 22124296 20,975.00 5 02 99 990
DIANA JANE B. SALAS 22124240 3,000.00 5 02 99 990
MARIO O. QUINIT 22124239 3,000.00 5 02 99 990
LORNA P. UBOS-PADES 22124230 3,000.00 5 02 99 990
LORNA P. UBOS-PADES 22124237 3,000.00 5 02 99 990
MARIO O. QUINIT 22124227 3,000.00 5 02 99 990
192
RUTHLYN P. GORGONIO 22124221 450.00 5 02 99 990
SJO1 JELSON Q. GALLEGO JR 22124272 3,000.00 5 02 99 990
DENIEZA N. JUMUAD 22103640 1,500.00 5 02 99 990
MARTIN'S LIVINGWATER REFILLING 22103634 900.00 5 02 99 990
STATION
BENECIO ROSABELLA WATER REFILLING 22041216 700.00 5 02 99 990
STATION
BENECIO ROSABELLA WATER STATION 22030873 575.00 5 02 99 990
ARSE PURIFIED WATER 22113934 750.00 5 02 99 990
PHILIPPINE RED CROSS LEYTE CHAPTER 22103605 13,000.00 5 02 99 990
CHEF LYN'S SNACK BAR 22030868 1,600.00 5 02 99 990
MARTIN'S LIVINGWATER REFILLING 22103399 2,160.00 5 02 99 990
STATION
STATION
STATION
MARTIN'S LIVINGWATER REFILLING 22103593 750.00 5 02 99 990
STATION
JENNIFER D. FRANCISCO 22124772 2,130.00 5 02 99 990
ATTY. MELINDA C. DOMAEL 22051500 16,450.00 5 02 99 990
BENECIO ROSABELLA WATER STATION 22030913 1,450.00 5 02 99 990
JUDEFOOD CATERING SERVICES 22030879 16,600.00 5 02 99 990
JUDEFOOD CATERING SERVICES 22030880 7,500.00 5 02 99 990
MA. LISA P. AMSON, CPA 22051787 600.00 5 02 99 990
STATION
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
193
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
STATION
STATION
STATION
EDDIE G. AGUSTIN 22124537 22,709.00 5 02 99 990
PMAJ EDGARDO Z DE ASIS 22062329 3,000.00 5 02 99 990
DANMAR LIGHT AND AUDIO 22051779 7,000.00 5 02 99 990
STATION
REQUITILLO, RHUFFA MAE LONGAKIT 22051717 40,000.00 5 02 99 990
FLORDELIZA C. DE LOS SANTOS 22124703 816.00 5 03 03 080
PEMC 22124723 49,541.40 5 02 03 090
PEMC 22124729 49,227.90 5 02 03 090
PEMC 22124724 48,553.00 5 02 03 090
22124727 49,279.30 5 02 03 090
PEMC 22124726 45,492.41 5 02 03 090
PEMC 22124722 34,725.20 5 02 03 090
PEMC 22124730 34,512.95 5 02 03 090
PEMC 22124728 49,597.96 5 02 03 090
PEMC 22124725 48,945.60 5 02 03 090
PEMC 22124712 47,621.90 5 02 03 090
PEMC 22124721 33,306.93 5 02 03 090
PEMC 22124713 48,710.15 5 02 03 090
ABRAHAM C. ACORDA 22124699 2,300.00 5 02 03 990
194
ABRAHAM C. ACORDA 22124697 2,300.00 5 02 03 990
NEED INK SALES AND SERVICES 22093006 37,800.00 5 02 03 010
ARSE PURIFIED DRINKING WATER 22072364 2,340.00 5 02 99 990
ZEKE MITCHOLO T. RAMIREZ,RN 22124515-A 1,684.00 5 02 01 010
JOZA V. PAJARES 22124794 761.00 5 02 99 990
JOZA V. PAJARES 22124796 941.00 5 02 99 990
ANA MARIE S. AZARCON 22061971 32,440.00 5 01 04 030
SAMUEL C. DAYANDAYAN 22124593 2,392.00 5 02 01 010
ALMA C. MAÑOSA 22124614 4,394.00 5 02 01 010
RIZAMAY N. MANCAO 22124663 600.00 5 02 01 010
RIUTHLYN P. GORGONIO 22051499 334.00 5 02 01 010
SUPPLIERS,INC.
BAJ PHARMACEUTICALS 22124710 768,720.00 5 02 03 080
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
SUPPLIERS,INC.
LEYECO V 22124414 2,060.16 5 02 04 020
LEYECO V 22124415 7,170.00 5 02 04 020
BAIZO VEHICLE REPAIR SERVICES 22062169 8,280.00 5 02 13 060
BAY WALK PENSION AND FOOD SPOT 22124496 14,100.00 5 02 99 990
WT COLON SCRAP TRADING 22113903 10,000.00 5 02 99 990
ALR SPACE RENTAL AND RELATED 22113810 3,500.00 5 02 99 990
SERVICES
195
ABRAHAM C. ACORDA 22124698 2,300.00 5 02 03 990
TOTAL TRANSCRIPTION SOLUTIONS INC. 22124709 10,380.00 5 02 99 990
(TTSI)
TOTAL ₱12,311,805.90
196
Appendix G.4
CY 2022 AP – Without/no Supporting Documents Presented

MANUEL P. CONSTANTINO 22062134 ₱ 55,000.00 5 01 04 030
MARILOU D. URGEL 22061915 25,000.00 5 01 04 030
CATALINA C. DAFFON 22030594 100,000.00 5 01 04 030
NIQUITA E. TERO 22041266 25,000.00 5 01 04 030
MELONA E. CERILLO 22030495 36,000.00 5 01 04 030
MARIA FLOR C. DAYANDAYAN 22061968 24,002.37 5 01 04 030
REFELINA Y. BAJE 22030512 100,000.00 5 01 04 030
ALMA C. MAÑOSA 22124610 1,202.00 5 02 01 010
JOSEPHUS MATTHEW M. MORFE 22020426 1,350.00 5 02 01 010
RADNIE BALDADO 22030906 3,000.00 5 02 01 010
ISIDRO REQUITILLO 22062155 925.00 5 02 01 010
ISIDRO REQUITILLO 22062145 494.00 5 02 01 010
ELENITA TAYO 22062007 3,734.00 5 02 01 010
JO2 ALLAN R. PEREZ 22124645 2,400.00 5 02 01 010
JO2 ALLAN R. PEREZ 22124644 6,150.00 5 02 01 010
PEMC 22062178 49,787.96 5 02 03 090
PEMC 22062216-G 49,649.94 5 02 03 090
PEMC 2203024 48,967.74 5 02 03 090
PEMC 22062179-B 47,898.45 5 02 03 090
PEMC 22062173-B 49,647.44 5 02 03 090
PEMC 22061961-A 49,381.58 5 02 03 090
PEMC 22062173-A 49,325.67 5 02 03 090
PEMC 22061920-C 49,917.08 5 02 03 090
PEMC 22062179-A 49,541.13 5 02 03 090
PEMC 22062180-C 49,372.85 5 02 03 090
PEMC 22061920-B 30,871.39 5 02 03 090
PEMC 22061921-C 49,719.75 5 02 03 090
PEMC 22062174-B 49,387.78 5 02 03 090
PEMC 22062175-A 49,659.45 5 02 03 090
PEMC 22062176-A 46,386.21 5 02 03 090
PEMC 22061920-A 29,919.64 5 02 03 090
PEMC 22061921-A 49,832.56 5 02 03 090
PEMC 22061961-B 49,453.06 5 02 03 090
PEMC 22062181-A 38,837.59 5 02 03 090
PEMC 22062181-B 33,269.75 5 02 03 090
PEMC 22062180-B 47,670.43 5 02 03 090
PEMC 22062180-A 48,782.09 5 02 03 090
PEMC 22061921-B 49,290.63 5 02 03 090
PEMC 22062174-A 49,707.30 5 02 03 090
PEMC 22062175-B 48,303.12 5 02 03 090
197
PEMC 22062177-A 48,988.23 5 02 03 090
PEMC 22062176-B 48,622.13 5 02 03 090
PEMC 22062177-B 47,828.33 5 02 03 090
PEMC 22062178-B 47,970.87 5 02 03 090
PEMC 22061948-A 49,546.18 5 02 03 090
PEMC 22062217-B 49,277.63 5 02 03 090
PEMC 22062020-C 49,365.04 5 02 03 090
PEMC 22062020-A 44,154.24 5 02 03 090
PEMC 22062020-B 49,427.86 5 02 03 090
PEMC 22062128-B 46,043.69 5 02 03 090
PEMC 22061948-B 49,407.74 5 02 03 090
PEMC 22061948-C 49,752.37 5 02 03 090
PEMC 22061915-A 49,721.43 5 02 03 090
PEMC 22062178-A 48,849.77 5 02 03 090
PEMC 22062217-A 46,026.23 5 02 03 090
PEMC 22001915-B 49,467.09 5 02 03 090
PEMC 22062128-A 49,993.87 5 02 03 090
PEMC 22062128-C 47,435.85 5 02 03 090
ADVANCE AUTO & TRUCK PARTS 22124692 1,750.00 5 02 03 990
No available data no data 1,564.00 5 02 03 990
ABRAHAM C. ACORDA 22124696 12,745.00 5 02 03 990
RSO AND SONS BUILDERS AND SUPPLIERS,INC. 22030798 49,950.00 5 02 03 990
TERESITA CUBICO 22072349 1,746.00 5 02 03 990
LEYECO V 22124431 77,506.62 5 02 04 020
INNOVE COMMUNICATION INC. 22041128 1,496.83 5 02 05 030
NATIONAL DEVELOPMENT COMPANY 22114163 133,446.54 5 02 99 990
VICTORIANO B. TOLEDO 22114070 1,500.00 5 02 99 990
LOURLYNN ME V. EMPAS 22124255 2,000.00 5 02 99 990
RENANTE M. PANCHO 22093230 2,000.00 5 02 99 990
J AND M WATER REFILLING STATION 22062135 8,060.00 5 02 99 990
TOTAL ₱3,355,023.39
198
Appendix G.5
Transactions incurred in CY 2022 not yet paid at yearend but

were not recorded as payable (Unrecorded Payables)
Date OB/R # PAYEE PARTICULARS Amount

To Payment of purified
Martin's Living Water
1 12/29/2022 22124804 water RHU office (Nov- ₱2,160.00
Refilling Station
Dec 2022)
Martin's Living Water To Payment of purified
2 12/29/2022 22062178 1,350.00
Refilling Station water (GSO)
Martin's Living Water To Payment of purified
3 06/29.2022 22062182 1,200.00
Refilling Station water (April-June 2022)
To Payment for Diesel ,
4 06/29.2022 22062178 PEMC Fuel and Extra Gasoline 49,787.96
(May 18-19, 2022)
To Payment of Bus
Rental for the 3 days
Isabel Transport
5 11/28/2022 22114125 workshop Seminar 72,000.00
Cooperative
(Madison park hotel
Tacloban City)
To Payment of allowance
6 12/31/2022 21125120 PMAJ Florando S. Relente 3,000.00
(Oct. 2021)
To Payment of 2 units
KML Marketing and Gen.
7 02/08/2022 22020227 Aircondition (splt type 119,900.00
MDSE.
USE MSWDO)
To payment of 1 unit
KML Marketing and Gen. executive Chair and 2
8 05/01/2022 22051485 29,970.00
MDSE. units Computer printers,
(RHU)
To payment of various
RSO and SONS
supplies (MDRRMO
9 02/29/2022 22030909 BUILDERS AND 48,950.00
Covid 19 Quick
SUPPLIERS INC.
Response)
To payment of office
10 03/09/2022 22030610 supplies and other 49,465.00
MDSE.
supplies ( D.A. Office)
To payment of office
11 03/17/2022 22030807 supplies and other 48,370.00
MDSE.
supplies ( PNP Office)
199
To Payment of 1 unit
ABS MARKETING AND Carrier Airconditioner
12 02/28/2022 22020490 124,750.00
GEN. MDSE. Flor Standing 3tons.
(Mun. Treasurer's Office)
To payment of lunch and
JEANY CATERING
snacks (during
SERVICES/REQUITILLO,
13 03/09/2022 22030621 reskbakuna kasanga NB 40,000.00
RHUFFA MAE
BIDA (jan. 05 & 07,
LONGAKIT
2022
22062216
14 06/30/2022 PEMC Fuel and Extra Gasoline 48,967.74
-E
(May 09-10, 2022)
15 06/08/2022 22 06064 TULING ENTERPRISES 79,825.00
supplies (ALS office)
16 05/27/2022 22 05061 TULING ENTERPRISES 100,760.00
supplies (DepED office)
ISABEL EDUCATION
17 03/01/2022 22 03016 Computer printer 4 in 1 49,960.00
SUPPLY
(ALS office)
ABS MARKETING AND Computer Laptop (Deped
18 03/08/2022 22 03025 119,900.00
GEN. MDSE. district supervisor & ALS
Dist. Coordinator))
To payment of 3 units
19 03/21/2022 22 03028 steel cabinets 4 drawer 44,985.00
MDSE.
(DepEd office)
20 03/21/2022 22 03030 Computer printer (Deped 39,960.00
MDSE.
district Office)
KML Marketing and Gen. split type Aircondition
21 03/21/2022 22 03029 119,900.00
MDSE. (Deped district clinic and
Dental clinic)
22 03/01/2022 22 03015 TULING ENTERPRISES split typr Aircondition 44,990.00
(Deped district OFFICE)
23 03/01/2022 22 03017 TULING ENTERPRISES DESKTOP Computer 49,980.00
(Deped district OFFICE)
To Payment of 8 sets
24 03/08/2022 22 03024 folding Bed w/ beddings 49,800.00
MDSE.
(DepeD district office)
25 06/02/2022 22061890 TULING ENTERPRISES Laptop core i3 for use of 39,950.00
POPCOM office
KML Marketing and Gen. Airconditioner 2 HP
26 02/21/2022 22020412 42,750.00
MDSE. window type (
PESO/Admin. Office )
200
27 12/29/2022 22124754 PEMC Fuel and Extra Gasoline 49,641.90
(Nov 07-11, 2022)
22124764-
A
Dec. 1-13, 2022)
(Nov. 1-4, 2022)
(Dec. 16-31, 2022)
(Nov. 12-25, 2022)
22124762
-A
(Nov. 12-22, 2022)
22124764
33 12/29/2022 PEMC Fuel and Extra Gasoline 583.20
-B
(Dec. 13-21, 2022)
22124762
-A
(Dec. 01-30, 2022)
22124764
-B
(Dec. 02-13, 2022)
(Nov. 12-18, 2022)
(Nov. 04-07, 2022)
22124764-
C
(Dec. 17-23, 2022)
39 12/29/2022 22124791 KP GASOLINE STATION Fuel and Extra Gasoline 37,906.88
(Dec. 13-15, 2022)
(Dec. 01-13, 2022)
(Dec. 03-06, 2022)
(Dec. 06-09, 2022)
(Dec. 09-10, 2022)
201
(Dec. 12-13, 2022)
(Nov. 19-21, 2022)
(Nov. 21-24, 2022)
(Nov. 24-26, 2022)
(Nov. 26-29, 2022)
(Nov. 29-30, 2022)
(Nov. 16-19, 2022)
(Oct. 16-31, 2022)
(Nov. 08-15, 2022)
(Nov. 01-07, 2022)
(Oct. 01-15, 2022)
55 12/29/2022 22124767 RPM GAS STATION Fuel and Extra Gasoline 19,412.00
(Jul. 05 - Sept 30, 2022)
(Oct. 01 - 15, 2022)
(Oct. 16 - 31, 2022)
(Nov. 01 - 15, 2022)
(Nov. 16 - 30, 2022)
22124765
60 12/29/2022 RPM GAS STATION Fuel and Extra Gasoline 18,883.65
-B
(Dec. 01 - 15, 2022)
202
Purchased of materials
61 06/28/2022 22062166 Linganay Enterprises for Municipal building 45,000.00
Offices
TOTAL ₱ 2,444,439.21
Appendix G.6
Utilization of the 20% Development Fund
Program / Projects Supplemental

No. Appropriation Utilization Balance
/ Activities w/ Realignment
Current Appropriation
Construction of
1 1,000,000.00 - 995,273.98 4,726.02
Local Road
Purchase of 3 units
2 Thermo-Scanner 35,000.00 (35,000.00) - -
with Tri-pod
Purchase of
Reagents and Kits
3 1,000,000.00 (1,000,000.00) - -
for Covid-19
Testing
Installation of
7.5HP Submersible
Solar Pumping
4 6,800,000.00 (6,800,000.00) - -
System for Water
System at Brgy.
Bantigue
Installation of
7.5HP Submersible
Solar Pumping
5 6,800,000.00 (6,800,000.00) - -
System for Water
System at Brgy.
Puting Bato
Installation of
7.5HP Submersible
Solar Pumping
6 6,800,000.00 (6,800,000.00) - -
System for Water
System at Brgy.
Anislag
Installation of
7.5HP Submersible
Solar Pumping
7 6,800,000.00 (6,800,000.00) - -
System for Water
System at Brgy.
Cangag
Installation of
8 7.5HP Submersible 6,800,000.00 (6,800,000.00) - -
Solar Pumping
203
System for Water
System at Brgy.
Antipolo
Installation of 2
units Ventilation
System and
9 1,200,000.00 - 1,197,000.00 3,000.00
Accessories at
Multi-Pupose
Building
Other necessary
10 Covid-19 related 888,116.60 (888,116.60) - -
PPAs and Expenses
Road Concreting of
the Isabel Public - 4,120,000.00 1,198,001.17 2,921,998.83
Market
Repair of Public
Market - Tiles and - 1,200,000.00 - 1,200,000.00
Drainage
Construction of
- 20,000,000.00 - 20,000,000.00
Isabel Food Park
Tourism Promotion
Programs and - 2,000,000.00 - 2,000,000.00
Projects
Agricultural/
Livelihood
- 3,000,000.00 - 3,000,000.00
Programs and
Projects
Lease to Own:
SB a.) 2 Garbage
Collection Vehicles
#1
(6 wheeler, 4
Cylinder Mini
Dump Truck)
- 1,200,000.00 800,000.00 400,000.00
b.) Rescue Vehicle
(6 wheeler, 6
Cylinder Drop Side/
Forward)
c.) Rescue Vehicle

(6 wheeler, 4
Cylinder Bongo Elf)
Construction of
- 1,000,000.00 - 1,000,000.00
Central MRF
Construction and
Concreting of - 1,500,000.00 - 1,500,000.00
Pathways
Solar Street Lights - 1,903,116.60 - 1,903,116.60
Sub-total 38,123,116.60 - 4,190,275.15 33,932,841.45
Continuing Appropriation
Rehabilitation of
1 1,644.89 - - 1,644.89
Streetlights and
204
Other Public
Structure
Beautification of
2 56,671.07 - - 56,671.07
Isabel Baywalk
Solar Powered at 24
3 12,096.76 - - 12,096.76
Barangays
Installation and
Electrical Wirings
4 68,409.61 - - 68,409.61
of Generator Set at
IEH
Installation of 15
Units Pedestal for
5 133,681.00 - - 133,681.00
Streetlights at Bulk
Water
Embankment and
Riprapping of
6 1,135.59 - - 1,135.59
Community Fish
Landing
Installation of
Streetlighting
7 1,038,883.23 - - 1,038,883.23
System (Solar
Powered)
Improvement of
Brgy. Hall (Stairs
8 40,085.00 - - 40,085.00
and Flooring at
Brgy. Mahayag)
Road Concreting
(Leading to Public
9 1,260.00 - - 1,260.00
Cemetery at Pingag,
Matlang)
Riprapping at Water
Impounding Dike
10 300.00 - - 300.00
(Banahaw
Bulkwater)
Construction Of
11 Concrete Post (4 1,452.39 - - 1,452.39
pcs.)
2 Units Comfort
12 Room with One 199,996.68 - - 199,996.68
Septic Tank
Installation of
Streetlighting of 24
13 7,553,650.00 - - 7,553,650.00
Brgys. (Solar
Powered)
Land Development
14 1,201,031.13 - - 1,201,031.13
7,000sqm. (Phase 1)
Acquisition/
Construction of
Covered Court and
15 3,500,000.00 - 3,000,000.00 500,000.00
Evacuation Center
at Barangay
Libertad
205
Road Concreting
16 (Brgy. Antipolo-San 5,319,758.01 - - 5,319,758.01
Francisco)
Construction of
17 Pathway at Pasil, 45,225.00 - - 45,225.00
Matlang
Lot Acquisition by
18 LGU for Brgy. 8,850.00 - - 8,850.00
Antipolo
Road Opening and
Installation of Pipe
19 16,946.00 - - 16,946.00
Culvert (Matlang
Cemetery)
Purchase of Medical
20 1,000,000.00 - - 1,000,000.00
Supplies
Installation of
21 Streetlighting Solar 22,000,000.00 - - 22,000,000.00
Powered
Construction of
22 Facilities for PWD 512.62 - - 512.62
and Senior Citizen
Construction of
23 Material Recovery 500,000.00 - - 500,000.00
Facility (MRF)
De-clogging of
24 250,000.00 - 168,750.00 81,250.00
Canal
Construction of
25 33,833.00 - - 33,833.00
Local Road
Purchase of Medical
26 Equipment Dialysis 3,000,000.00 - - 3,000,000.00
Machine
Installation if
27 Streetlighting Solar 18,500,953.80 - - 18,500,953.80
Powered
Acquisition/
Construction of
Covered Court and
28 2,500,000.00 - 2,500,000.00 -
Evacuation Center
at Barangay
Libertad
Acquisition/
Construction of
29 Covered Court and 2,500,000.00 - 2,500,000.00 -
Evacuation Center
at Barangay Tubod
De-clogging of
30 500,000.00 - 234,234.37 265,765.63
Canal
Purchase of
31 25,505,778.50 - - 25,505,778.50
Medicines
Purchase of Garbage
32 3,500,000.00 - - 3,500,000.00
Truck
Sub-total 98,992,154.28 - 8,402,984.37 90,589,169.91
Total 137,115,270.88 - 12,593,259.52 124,522,011.36
206
Percentage 9.18% 90.82%
Appendix G.7
List of Expenditures reimbursed by Officials and Employees for CY 2022
Check Amount
Nature of Payment
Date No. Payee
02/09/2022 1777671 Roberto A. Simbajon Reim Philhealth Accreditation Fee 3,000.00
02/09/2022 1777672 Roberto A. Simbajon Reim Laboratory Salad Cups 495.00
02/09/2022 1777673 Roberto A. Simbajon Reim Medical Supplies 2,160.00
02/09/2022 1777676 Roberto A. Simbajon Reim Oxygen Medical 2,228.01
02/09/2022 1777694 Lilt L. Clemeña Reim Various Supplies used for Repair 925.00
02/09/2022 1777695 Lilt L. Clemeña Reim Various Supplies used for Repair 650.00
02/09/2022 1777696 Lilt L. Clemeña Reim Hydraulic Hose for Repair 2,220.00
02/09/2022 1777697 Lilt L. Clemeña Reim Oxygen Tank 500.00
02/09/2022 1777698 Lilt L. Clemeña Reim Various Supplies 785.00
Reim Various Supplies Replacement of Check
02/09/2022 1777717 Almira G. Villaseran 1,320.00
1777677
02/09/2022 1777718 Almira G. Villaseran Reim Meals Replacement of Check 1777678 1,210.00
03/14/2022 1777786 Ma. Lisa P. Amson CPA Reimbursement Stamp Mail Services 275.00
03/14/2022 1777787 Ma. Lisa P. Amson CPA Reimbursement Various Materials 454.00
Reimbursement Purified Drinking Water-December
03/14/2022 1777788 Ma. Lisa P. Amson CPA 500.00
2020
03/14/2022 1777789 Ma. Lisa P. Amson CPA Reimbursement Purified Drinking Water-July 2020 500.00
03/14/2022 1777793 Noel R. Gubalane Reimbursement Tarpaulin 720.00
03/14/2022 1777794 Noel R. Gubalane Reimbursement Tarpaulin 480.00
03/14/2022 1777795 Noel R. Gubalane Reimbursement Tarpaulin 1,280.00
Reim Cleaning of Aircon Replacement of Check #
03/16/2022 1777800 Gerardo P. Embog 550.00
1777799
03/16/2022 1777801 Gerardo P. Embog Reim Cleaning of Aircon 1,500.00
03/17/2022 1777804 Mitzi C. Amodia Reim of Electrical Supplies and Snacks 4,764.00
03/17/2022 1777805 Mitzi C. Amodia Reim of Various Supplies 2,128.00
03/17/2022 1777806 Mitzi C. Amodia Reim of Maintenance and Servicing of Aircon 2,700.00
03/14/2022 1777785 Eddie G. Agustin Reim Electrical Supplies 442.00
03/16/2022 1777797 Jennifer D. Francisco Reim Meals Accommodation September 22, 2020 675.00
03/16/2022 1777798 Jennifer D. Francisco Reim Purified Water May-August 2020 500.00
03/17/2022 1777850 Wilfredo R. Bartolini Reim Cleaning of Aircon 700.00
03/14/2022 1777790 Florelyn M. Cabreros Reim Bearing and Fan Belt 360.00
03/14/2022 1777791 Florelyn M. Cabreros Reim Purified Drinking Water 675.00
03/14/2022 1777792 Florelyn M. Cabreros Reim Labor for Repair of Water Pump 2,000.00
03/14/2022 1777796 Ma. Jackelyn D. Cerillo Reim Cellphone Load 500.00
04/22/2022 1777911 Lilt L. Clemeña Reim Various Supply for Repair of Ambulance 950.00
207
Check Amount
Nature of Payment
Date No. Payee
04/22/2022 1777912 Lilt L. Clemeña Reim of Oxygen Tank Refill 1,000.00
04/22/2022 1777913 Lilt L. Clemeña Reim Various Supply for Repair of Ambulance 985.00
Reim Various Supply for Repair of RESCUE
04/22/2022 1777914 Lilt L. Clemeña 1,010.00
Vehicle
Reim of PULSE Oximeter and AAA Battery-
04/22/2022 1777915 Lilt L. Clemeña 644.75
MDRRM
04/22/2022 1777916 Roberto A. Simbajon Reim Medicine Supplies-IEH 1,860.00
04/22/2022 1777917 Roberto A. Simbajon Reim Medical Supplies-IEH 460.00
04/22/2022 1777918 Roberto A. Simbajon Reim of Water Repair-IEH 1,333.00
04/22/2022 1777919 Roberto A. Simbajon Reim Medical Supplies-IEH 1,325.00
04/22/2022 1777920 Roberto A. Simbajon Reim of Philhealth-IEH 1,120.00
04/22/2022 1777921 Roberto A. Simbajon Reim Medical Supplies-IEH 1,830.00
04/22/2022 1777922 Roberto A. Simbajon Reim of Urine Collector-IEH 495.00
04/22/2022 1777923 Roberto A. Simbajon Reim Medicine and Medical Supplies-IEH 825.00
04/22/2022 1777924 Roberto A. Simbajon Reim of Medical Oxygen-IEH 450.00
04/22/2022 1777898 Noelane Joy L. Camcho Reim Medical Supplies RHU 1,413.50
04/22/2022 1777904 Ruthlyn P. Gorgonio Reim 1 pc Tarpaulin -DA 384.00
Reim Internet Subscription December 2021
04/22/2022 1777907 Ma. Lisa P. Amson, CPA 1,500.00
Accounting Office
Reim Drinking Water August 2021 Accounting
04/22/2022 1777908 Ma. Lisa P. Amson, CPA 500.00
Office
Reim Drinking Water December 2021 Accounting
04/22/2022 1777909 Ma. Lisa P. Amson, CPA 740.00
Office
Reim Internet Subscription November 2021
04/22/2022 1777910 Ma. Lisa P. Amson, CPA 1,500.00
Accounting Office
Reim Drinking Water December 2021 Replacement
04/22/2022 1777926 AR. Florelyn M. Cabreros 475.00
of Check # 1777925
04/22/2022 1777927 AR. Florelyn M. Cabreros Reim Drinking Water November 2021 325.00
04/22/2022 1777928 AR. Florelyn M. Cabreros Reim Drinking Water May 2021 550.00
04/22/2022 1777929 AR. Florelyn M. Cabreros Reim Drinking Water August 2021 625.00
04/22/2022 1777930 AR. Florelyn M. Cabreros Reim Drinking Water February 2021 375.00
04/22/2022 1777931 AR. Florelyn M. Cabreros Reim Drinking Water January 2021 450.00
04/27/2022 1777960 Jennifer D. Francisco Reim Drinking Water September-December 2021 500.00
04/29/2022 1778000 Noel R. Gubalane Reim Accountable Forms 610.00
04/29/2022 1778012 Jeonamira M. Bernales Reim 1 Set of Sliding Window 1,800.00
04/27/2022 1777946 Samie M. Galos Reim Cleaning of 1 Split Type Air Conditioner 800.00
04/27/2022 1777947 Samie M. Galos Reim Cleaning of 1 Split Type Air Conditioner 800.00
04/27/2022 1777958 Jennifer D. Francisco Reim Drinking Water August 2021 500.00
04/27/2022 1777959 Jennifer D. Francisco Reim Drinking Water September-December 2021 500.00
04/27/2022 1777933 Almira G. Villaseran Reim Meals February 14, 2022 1,615.00
04/27/2022 1777934 Almira G. Villaseran Reim Various Supplies 439.00
04/27/2022 1777948 Ramil C. Lariosa Reim Printing of LGU LOGO 505.00
04/27/2022 1777949 Ramil C. Lariosa Reim Repair of Grass Cutter 480.00
04/27/2022 1777957 Jacqueline R. Suson Reim Internet Connection Sept 16-Oct 15, 2021 1,700.00
04/27/2022 1777967 Teresita A. Cubico Reim Various Materials 2,175.00
04/27/2022 1777935 Almira G. Villaseran Reim Internet October 2021 1,200.00
04/27/2022 1777936 Almira G. Villaseran Reim Internet April 2021 1,200.00
04/27/2022 1777944 Engr. Samie M. Galos Reim Internet May 2021 1,400.00
04/27/2022 1777945 Engr. Samie M. Galos Reim Internet April 2021 1,400.00
04/27/2022 1777952 Almira G. Villaseran Reim Internet Meals February 8, 2022 765.00
04/27/2022 1777961 Teresita A. Cubico Reim of 20 Bottles of Mineral water 400.00
Reim of 20 Bottles of Mineral water-December
04/27/2022 1777962 Teresita A. Cubico 400.00
2020
Reim of 20 Bottles of Mineral water-November
04/27/2022 1777963 Teresita A. Cubico 400.00
2020
04/27/2022 1777964 Teresita A. Cubico Reim of 20 Bottles of Mineral water-June 2021 400.00
208
Check Amount
Nature of Payment
Date No. Payee
04/27/2022 1777965 Teresita A. Cubico Reim of 20 Bottles of Mineral water-January 2021 400.00
04/27/2022 1777966 Teresita A. Cubico Reim of Various Meals 2,271.00
04/27/2022 1777956 Jacqueline R. Suson Reim Internet Connection Sept 16-Oct 15, 2021 1,698.00
04/27/2022 1777938 Isidro C. Requitillo Reim Drinking Water July-December 2021 700.00
04/27/2022 1777939 Eddie G. Agustin Reim Carpentry and Office Supplies-OSCA 216.00
04/27/2022 1777940 Eddie G. Agustin Reim of Documents sent to LBC-OSCA 1,080.00
04/29/2022 1778008 Julius A. Ignacio Reim of Repair & Rewinding of Siren Motor 500.00
06/27/2022 1778046 MITZI C. AMODIA Reimbursement-Various Supplies-MTO 1,404.00
Reimbursement-Meals of PNP Escort-Tacloban
06/27/2022 1778047 MITZI C. AMODIA 1,770.00
City
06/27/2022 1778048 MITZI C. AMODIA Reimbursement-LBC Mailing Expenses 794.00
06/29/2022 1778071 Julius A. Ignacio Reimbursement Meter Transfer-RHU 2,500.00
09/02/2022 1778133 Nerissa Zaira D. Labordo,MD Reimbursement Supplies-RHU 1,590.00
09/02/2022 1778134 Nerissa Zaira D. Labordo,MD Reimbursement of Accreditation Fee 2,000.00
09/02/2022 1778135 Nerissa Zaira D. Labordo,MD Reimbursement of Meals-July 23,2022 750.00
09/02/2022 1778145 Roberto A. Simbajon Reimbursement-Medical Supplies-IEH 750.00
09/02/2022 1778147 Roberto A. Simbajon Reimbursement-Medical Supplies-IEH 1,800.00
09/02/2022 1778149 Roberto A. Simbajon Reimbursement-Medical Supplies-IEH 1,160.00
09/02/2022 1778150 Roberto A. Simbajon Reimbursement-Change 2 Tires-IEH 240.00
09/02/2022 1778136 Joza V. Pajares Reimbursement of Meals-August 2, 2022 980.00
09/02/2022 1778137 Joza V. Pajares Reimbursement of Various Supplies-Mayor's Office 595.45
09/02/2022 1778138 Edmar A. Rojas Reimbursement of Hotel Accomodation of PDEA 600.00
09/02/2022 1778139 Donna A. Montalban Reimbursement of Mineral Water-POPCOM 480.00
09/02/2022 1778140 Donna A. Montalban Reimbursement One Set Clutch Master-IEH 1,800.00
Reimbursement-Meals During Tourism Alliance-
09/09/2022 1778173 Jeselle Gail L. Reasol 2,600.00
July 27,2022
reimbursement-meals of pnp escort-nov. to
09/02/2022 1778143 LUVILLISA LEI C. FULLON 897.00
dec.2021
reimbursement-meals expenses with dti provincial
09/09/2022 1778180 JENNIFER D. FRANCISCO director 1,570.00
09/09/2022 1778168 MA.LISA P. AMSON,CPA reimbursement-servicing/repair, 2 units aircon 2,500.00
09/09/2022 1778169 MA.LISA P. AMSON,CPA reimbursement-purified drinking water-jan.2022 350.00
09/09/2022 1778170 MA.LISA P. AMSON,CPA reimbursement-purified drinking water-feb.2022 550.00
09/09/2022 1778171 MA.LISA P. AMSON,CPA reimbursement-maintenance of 2 units aircon 1,200.00
09/09/2022 1778172 MA.LISA P. AMSON,CPA reimbursement-notarial fee 1,669.00
09/09/2022 1778174 RAMIL C. LARIOSA reimbursement-repalcement of thermostat 1,200.00
09/09/2022 1778175 RAMIL C. LARIOSA reimbursement-tarpaulin at gso 270.00
09/09/2022 1778176 EDDIE G. AGUSTIN reimbursement-documents sent to lbc 205.00
09/09/2022 1778177 EDDIE G. AGUSTIN reimbursement-installation of sliding window 1,500.00
ARCH. FLORELYN M.
09/09/2022 1778178 reimbursement-sliding glass cover of the fdp board 2,500.00
CABREROS
09/20/2022 1778186 DONNA A. MONTALBAN reimbursement-water bacteriology sample-ieh 1,950.00
09/20/2022 1778188 DIANA JANE B. SALAS reimbursement of tarp printing(ela) 480.00
MA. JACKELYN D.
09/02/2022 1778141 CERILLO reimbursement-one pc. wreath-aug. 29,2022 2,000.00
MA. JACKELYN D.
09/02/2022 1778142 reimbursement-one pc. wreath-aug. 29,2022 2,000.00
CERILLO
09/21/2022 1778203 JACQUELINE R. SUSON reimbursement of drinking water-mnao 1,375.00
09/21/2022 1778204 JACQUELINE R. SUSON reimbursement of internet connection-mnao 1,497.00
09/21/2022 1778205 ALMIRA G. VILLASERAN reimbursement of travel-november 11-12,2021 1,820.00
09/21/2022 1778206 ALMIRA G. VILLASERAN reimbursement of meals-feb. 15,2022 2,980.00
09/21/2022 1778207 ALMIRA G. VILLASERAN reimbursement of travel-jan. 27,2022 1,200.00
209
Check Amount
Nature of Payment
Date No. Payee
09/21/2022 1778208 ALMIRA G. VILLASERAN reimbursement of meals-menro 985.00
09/21/2022 1778209 ALMIRA G. VILLASERAN reimbursement of travel-tacloban city 1,500.00
reimbursement for various supply for repair and
09/21/2022 1778198 LILT L. CLEMENA 750.00
maintenance of navarra
reimbursement for various supply for repair and
09/21/2022 1778199 LILT L. CLEMENA 1,000.00
maintenance of mitsubishi
09/21/2022 1778200 LILT L. CLEMENA reimbursement for nissan navarra 1,000.00
reimbursement for various supply for repair &
09/21/2022 1778201 LILT L. CLEMENA 976.00
maintenance of rescue vehicle
reimbursement multi stamp and survey measuring
09/21/2022 1778202 LILT L. CLEMENA 5,000.00
tape
09/21/2022 1778210 TERESITA A. CUBICO reimbursement of various materials 1,036.00
09/21/2022 1778211 TERESITA A. CUBICO reimbursement of 20 bottles mineral water-feb.2022 400.00
reimbursement of 20 bottles mineral water-
09/21/2022 1778212 TERESITA A. CUBICO 400.00
sept.2021
reimbursement of 20 bottles mineral water-
09/21/2022 1778213 TERESITA A. CUBICO 400.00
nov.2021
09/21/2022 1778214 TERESITA A. CUBICO reimbursement of 20 bottles mineral water-apr.2021 400.00
09/21/2022 1778215 TERESITA A. CUBICO reimbursement of various materials 933.00
LALAINE RUBY S.
09/26/2022 1778222 reimbursent of travel 1,065.00
JABONETE
LALAINE RUBY S.
09/26/2022 1778223 reimbursent of travel 2,934.00
JABONETE
LALAINE RUBY S.
09/26/2022 1778224 reimbursent of tarpaulin printing 420.00
JABONETE
09/09/2022 1778181 ENGR.SAMIE M. GALOS reimbursement-internet load-october 2021 1,400.00
09/09/2022 1778182 ENGR.SAMIE M. GALOS reimbursement-internet load-august 2021 1,400.00
09/09/2022 1778183 ENGR.SAMIE M. GALOS reimbursement-internet load-february 2022 1,400.00
09/09/2022 1778184 ENGR.SAMIE M. GALOS reimbursement-internet load-april 2022 1,400.00
reimbursement of cleaning of 2 air conditioning
10/05/2022 1778225 LUVILLISA LEI C. FULLON 3,900.00
unit
10/05/2022 1778226 NILO INOCELLAS reimbursement of meals expenses 1,330.00
LALAINE RUBY S.
10/19/2022 1778246 reimbursement of travel expenses 1,334.00
JABONETE
LALAINE RUBY S.
10/19/2022 1778247 reimbursement in fabrication of office table-mpdo 2,914.00
JABONETE
JEONAMIRA M.
10/19/2022 1778251 reimbursement for snacks-aug. 18,2022 2,350.00
BERNALES
JEONAMIRA M.
10/19/2022 1778252 reimbursement for cleaning aircon-ias office 500.00
BERNALES
10/19/2022 1778255 ALMA C. MANOSA reimbursement of meal expenses-sept.21,2022 3,000.00
10/19/2022 1778258 ROBERTO A. SIMBAJON reimbursement of power supply-mbo 650.00
MA. JACKELYN D.
10/19/2022 1778239 reimbursement of office supplies-hrmo 1,096.00
CERILLO
10/19/2022 1778244 DONNA A. MONTALBAN reimbursement of accreditation fees-rhu 2,000.00
10/19/2022 1778245 DONNA A. MONTALBAN reimbursement of ac servicing-ieh 800.00
NERISSA ZAIRA D. reimbursement of supplies for resbakuna
10/19/2022 1778253 704.25
LABORDO,MD vaccination
10/19/2022 1778256 RAMIL C. LARIOSA reimbursement of spare parts for garbage compactor 990.00
10/19/2022 1778257 RAMIL C. LARIOSA reimbursement of materials for maintenance section 807.60
10/19/2022 1778248 ARCHILLES A. SILVA, DM reimbursement of stamps-admin.office 400.00
10/19/2022 1778249 ARCHILLES A. SILVA, DM reimbursement of photopaper-admin. office 420.00
10/19/2022 1778263 LILT L. CLEMENA reimbursement of various supply for repair 1,150.00
10/21/2022 1778278 NOEL R. GUBALANE reimbursement of stamps and ink-lcr 700.00
10/21/2022 1778304 MA. LISA P. AMSON,CPA reimbursement of drinking water-nov.2021 900.00
20/21/2022 1778305 MA. LISA P. AMSON,CPA reimbursement of drinking water-sept.2021 500.00
10/21/2022 1778306 MA. LISA P. AMSON,CPA reimbursement of lbc express 200.00
10/21/2022 1778307 GERALDINE B. SACAY reimbursement of travel-june22,2022 750.00
10/21/2022 1778308 GERALDINE B. SACAY reimbursement of travel-july 15,2022 848.00
210
Check Amount
Nature of Payment
Date No. Payee
10/24/2022 1778312 GILBERTO NUNEZ, JR. reimbursement of travel-aug.23,2022 750.00
10/24/2022 1778313 GILBERTO NUNEZ, JR. reimbursement of travel-july 29 & aug.9,2022 300.00
10/24/2022 1778314 GILBERTO NUNEZ, JR. reimbursement of travel-july 12,2022 600.00
10/24/2022 1778315 ALMIRA G. VILLASERAN reimbursement of wifiload aug.2021-menro 1,200.00
10/24/2022 1778316 ALMIRA G. VILLASERAN reimbursement of wifiload july 2021-menro 1,200.00
10/24/2022 1778317 ALMIRA G. VILLASERAN reimbursement of travel-june 21,2022 750.00
10/24/2022 1778319 ALMIRA G. VILLASERAN reimbursement of meals for emb 650.00
10/24/2022 1778320 ENGR. SAMIE M. GALOS reimbursement of internet load-july 2021 1,400.00
10/24/2022 1778321 ENGR. SAMIE M. GALOS reimbursement of internet load-june 2021 1,400.00
10/24/2022 1778322 ENGR. SAMIE M. GALOS reimbursement of internet load-sept.2021 1,400.00
10/24/2022 1778323 SF01 EUSEMIEL C. GALOS reimbursement of clutch pressure-bfp 4,060.00
10/24/2022 1778324 SF01 EUSEMIEL C. GALOS reimbursement of battery-bfp 4,050.00
reimbursement of repair and maintenance-
10/24/2022 1778326 GERARDO P. EMBOG 950.00
ambulance-mdrrm
AR. FLORELYN M.
10/24/2022 1778340 reimbursement of drinking water-feb.2022 450.00
CABREROS
AR. FLORELYN M.
10/24/2022 1778341 reimbursement of travel 480.00
CABREROS
10/24/2022 1778330 TERESITA A. CUBICO reimbursement of mineral water-june 2022 400.00
10/24/2022 1778331 TERESITA A. CUBICO reimbursement of mineral water-april 2022 400.00
10/24/2022 1778332 TERESITA A. CUBICO reimbursement of mineral water-july 2022 400.00
10/24/2022 1778333 TERESITA A. CUBICO reimbursement of mineral water-march 2022 400.00
10/24/2022 1778334 TERESITA A. CUBICO reimbursement of mineral water-may 2022 400.00
10/24/2022 1778335 TERESITA A. CUBICO reimbursement of printer ink 1,560.00
10/24/2022 1778336 TERESITA A. CUBICO reimbursement of varoius materials 1,418.00
10/24/2022 1778337 TERESITA A. CUBICO reimbursement of varoius materials 920.00
10/24/2022 1778338 TERESITA A. CUBICO reimbursement of varoius materials 640.00
10/24/2022 1778339 TERESITA A. CUBICO reimbursement of office supply 1,657.00
10/21/2022 1778291 MITZI C. AMODIA reiimbursement of various expenses 1,155.80
10/21/2022 1778292 MITZI C. AMODIA reimbursement of a/c maintenance-mto 3,600.00
10/21/2022 1778293 MITZI C. AMODIA reimbursement of various office supplies-mto 550.00
10/24/2022 1778325 JULIUS A. IGNACIO reimbursement of water pump-ieh 1,719.00
11/23/2022 1778366 JOZA V. PAJARES reimbursement of snacks-mdrrmc-nov.1,2022 755.00
11/23/2022 1778367 JOZA V. PAJARES reimbursement of snacks for itfa-sept.27,2022 1,470.00
reimbursement of office supplies-mayor's
11/23/2022 1778369 JOZA V. PAJARES 1,178.00
conference room
reimbursement of snacks conference meeting-
11/23/2022 1778368 JOZA V. PAJARES 2,896.00
sept.19,2022
11/23/2022 1778370 JOZA V. PAJARES reimbursement of snacks for itfa-oct.6,2022 1,608.00
reimbursement of snacks for employees gen.
11/23/2022 1778371 JOZA V. PAJARES 1,256.00
assembly-oct.4,2022
reimbursement of office supplies-mayors
11/23/2022 1778372 JOZA V. PAJARES 961.00
conferenve room
11/23/2022 1778373 JOZA V. PAJARES reimbursement of sending doc. to cebu 205.00
11/23/2022 1778374 LILT L. CLEMENA reimbursement of supplies-rhu 2,975.00
11/23/2022 1778375 LILT L. CLEMENA reimbursement of supplies-rhu 2,880.00
11/23/2022 1778376 DONNA A. MONTALBAN reimbursement of brake shoe for ambulance-ieh 1,600.00
11/23/2022 1778382 JACQUELINE R. SUSON reimbursement of meals & snacks during rnet 2,995.00
11/23/2022 1778360 ARCHILLES A. SILVA,DM reimbursement of electrical supplies 2,700.00
reimburement of snacks for itfa committee-
11/23/2022 1778360 ARCHILLES A. SILVA,DM 1,375.00
oct.18,2022
11/23/2022 1778381 JACQUELINE R. SUSON reimbursement snacks during pnet 2,400.00
meals for the drive of rented van for sagip mata
mission
12/15/2022 1778404 MITZI C. AMODIA trimming and ribbons-ibpls 2,928.90
12/15/2022 1778409 MITZI C. AMODIA meals during stage preparation-ibpls 720.00
211
Check Amount
Nature of Payment
Date No. Payee
reimbursement of snacks for itfa committee-
11/23/2022 1778361 ARCHILLES A. SILVA,DM 650.00
oct.26,2022
reimbursement of snacks for tourism council
11/23/2022 1778362 ARCHILLES A. SILVA,DM 980.00
meeting-nov.10,2022
reimbursement of travel expenses for med. mission-
oct.5-8,2022
11/23/2022 1778383 MITZI C. AMODIA reimbursement of various office supplies-mto 2,570.00
11/23/2022 1778384 MITZI C. AMODIA reimbursement of various office supplies-mto 1,085.00
11/23/2022 1778385 MITZI C. AMODIA reimbursement of various materials for repair-mto 1,450.00
11/23/2022 1778386 SHIERBEN JOHN C. JORDA tarpaulin & plaque 1,337.63
12/16/2022 1778436 JACQUELINE R. SUSON aircon repair 1,500.00
12/16/2022 1778440 GERARDO P. EMBOG meals-speakers/trainors-nov.8-11,2022 1,565.00
12/16/2022 1778445 RAMIL C. LARIOSA various materials 1,214.00
12/16/2022 1778446 RAMIL C. LARIOSA various materials 1,021.00
12/15/2022 1778400 ARCHILLES A. SILVA,DM snacks during seal of good local governance 1,665.00
12/15/2022 1778401 ARCHILLES A. SILVA,DM stamp and ink-admin office 380.00
12/15/2022 1778402 ARCHILLES A. SILVA,DM snacks during meeting for lgu christmas party 660.00
12/15/2022 1778403 ARCHILLES A. SILVA,DM diesel to convey cda r-8 personnels-nov.3,2022 2,526.30
12/15/2022 1778404 ARCHILLES A. SILVA,DM snacks during orientation-nov.10,2022 529.00
12/16/2022 1778433 FLORELYN M. CABREROS various supplies-market office 1,303.00
12/16/2022 1778435 JACQUILYN M. PARBA used for laptop upgrade-rhu 3,000.00
12/16/2022 03/17/6769 MA. LISA P. AMSON,CPA elastoseal-accounting office 650.00
12/16/2022 1778444 MA. LISA P. AMSON,CPA various supplies-accounting office 2,676.00
MA. JACKELYN D.
12/16/2022 1778421 wreath of late clotilde alcantara 2,500.00
CERILLO
NERISSA ZAIRA D.
12/16/2022 1778424 snacks during doh monitoring-oct.25,2022 488.00
LABORDO,MD
NERISSA ZAIRA D.
12/16/2022 1778425 supplies-rhu 1,374.00
LABORDO,MD
12/16/2022 1778426 DONNA A. MONTALBAN snacks during blst-ieh 3,000.00
12/16/2022 1778427 DONNA A. MONTALBAN ac repair/services-doctors quarter 1,000.00
12/16/2022 1778441 GERARDO P. EMBOG various expenses 1,960.00
12/16/2022 1778442 GERARDO P. EMBOG repair maintenance of rescue vehicle 1,718.00
12/21/2022 1778459 MITZI C. AMODIA snacks-during blessing of lgu vehicles 2,000.00
12/21/2022 04/03/6769 MITZI C. AMODIA meals during ibpls meeting-nov.29,2022 996.00
TOTAL P 323,474.83
212
Appendix G.8
Municipal vehicles that didn’t bear government(red) plates

and/ or the “For Official Use Only” marking
213
214
Appendix G.9
List of procured supplies and materials thru shopping and

small value procurement
Check Gross
Date Payee Purpose
No. Amount
02/21/2022 76422652 Isabel 1 Unit Air conditioner Terminal ₱40,000.00
Educational Office
Supply
03/14/2022 76422780 LUCE Various Supplies and Materials 46,235.00
Enterprises Can-Andan
04/07/2022 76422886 Various Supplies Mayor's Office 36,572.00
04/07/2022 76422885 Bond Paper and Photo Paper- 23,925.00
Mayor's Office
04/18/2022 76422943 Various Office Supplies Legal 18,000.00
Office
04/18/2022 76422932 Sebastian Care Medicines and medical Supplies 183,937.60
Pharma
04/20/2022 76422950 Tuling Cealing Fan 18"{Blade) 5 Units- 30,000.00
Enterprises IEH
215
Check Gross
Date Payee Purpose
No. Amount
04/22/2022 76422970 LUCE Various Supplies and Materials- 38,730.00
Enterprises Brgy. Cangag
04/26/2022 76422971 Various Office Supplies 43,500.00
05/05/2022 76423009 Photocopier Supplies-Mayor's 46,450.00
Office
05/05/2022 76423008 Various Office Supplies-Mayor's 46,812.00
Office
09/22/2022 82064114 RSO and SONS Various office supplies-Market 26,649.00
Builders and Office
09/22/2022 82064115 Suppliers INC. Various office supplies-IAS 15,940.00
09/22/2022 82064116 Various office supplies-Mayor’s 41,202.00
Office
09/22/2022 82064117 Various office supplies-GSO 9,134.00
09/22/2022 82064118 Various office supplies-LCR 11,909.00
09/22/2022 82064119 Various supplies-maintenance 19,710.00
09/26/2022 82064122 Desk name plates 11 SB 49,940.00
Legislative office
09/26/2022 82064123 Various office supplies-Vice 11,149.00
Mayor’s Office
10/11/2022 82064156 Various supplies and materials- 34,092.25
Inaugural Party
10/14/2022 82064188 Materials for rehab/repair of 48,184.00
Vice Mayor’s Office
10/12/2022 82064165 Office supplies- SB 51,737.00
10/14/2022 82064172 ABS Marketing Weighing Scale MENRO 9,950.00
and General
Merchandise
10/14/2022 82064174 RSO and SONS Office supplies-PNP 18,120.00
10/14/2022 82064175 Builders and Office supplies-DA 20,535.00
10/14/2022 82064176 Suppliers INC. Office supplies-MNAO 17,695.00
10/14/2022 82064177 Office supplies-MENRO SWM 11,325.00
10/14/2022 82064178 Office supplies-HRMO 27,115.00
10/14/2022 82064179 Office supplies-MTO 49,830.00
10/14/2022 82064180 Office supplies-MSWD 19,538.00
10/14/2022 82064181 Office supplies-MAO 37,859.00
10/14/2022 82064182 Office supplies-MBO 19,483.00
11/15/2022 1778355 MedCaptain Supplies and Medicines for 86,525.00
Marketing Sagipmata Project
11/16/2022 82064337 RSO and SONS Office supplies-IEH 81,143.00
11/16/2022 82064338 Builders and Office supplies-Assessor 31,765.00
11/16/2022 82064339 Suppliers INC. Office supplies-MDRRMO 4,195.00
11/16/2022 82064340 Office supplies-RHU 43,747.00
11/16/2022 82064344 CPU Power Supply-OSCA 1,498.00
216
Check Gross
Date Payee Purpose
No. Amount
11/16/2022 82064345 Split Type Air conditioner-Vice 119,750.00
Mayor’s Office
12/20/2022 82064458 LUCE Materials Purchase- 49,802.00
Enterprises Repair/Rehab of Session Hall
12/20/2022 82064467 Materials Purchase for Repair of 19,743.00
CR at GNRC
12/20/2022 82064468 Materials Purchase for Garbage 40,441.00
Collectors
12/20/2022 82064469 Materials Purchase for GNRC 5,195.00
Male CR
12/20/2022 82064460 RSO and SONS Office supplies -MENRO 8,175.00
12/20/2022 82064461 Builders and Various Supplies-Senior 6,286.00
Suppliers INC. Citizen’s Office
12/20/2022 82064462 Office Supplies-BAC Office 19,657.00
12/20/2022 82064463 Office Supplies -PESO Office 4,175.00
12/20/2022 82064465 Office Supplies -MEO 24,076.00
12/20/2022 82064466 Office Supplies -MEO 61,279.00
12/20/2022 82064475 Various Supplies - Maintenance 39,119.00
12/20/2022 82064476 Office Supplies-Accounting 20,252.00
Office
12/20/2022 82064473 Office Supplies -Slaughter 23,220.00
House Office
12/20/2022 82064474 Office Supplies-LCR Office 20,315.00
12/20/2022 82064478 Office Supplies-HRMO 27,450.00
12/21/2022 82064484 Office Supplies -DILG 14,402.00
12/21/2022 82064485 Office Supplies -MTO 49,895.00
TOTAL ₱2,006,985.85
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Republic of the Philippines

ANNUAL AUDIT REPORT

For the Year Ended December 31, 2022

June 27, 2023

Hon. EDGARDO C. CORDEÑO

Pursuant to Section 2, Article IX-D of the Constitution of the Republic of the

For the Commission on Audit:

June 27, 2023

The Honorable Presiding Officer

Pursuant to Section 2, Article IX-D of the Constitution of the Republic of the

Very truly yours,

For the Commission on Audit:

The Municipality of Isabel is a 1st class municipality in the Province of Leyte,

The Municipal Government of Isabel is headed by Mayor Edgardo C. Cordeño and

Particulars 2022 2021

Particulars 2022 2021

Independent Auditor’s Report on the Financial Statements

Summary of Significant Observations and Recommendations

1. Deficiencies were noted in the establishment and keeping of accounts of Real

We recommended that the Municipal Mayor require the:

a) Municipal Accountant to (i) investigate and expedite substantiation of noted

2. The existence, completeness and valuation of Inventory account balances as of

We reiterated the recommendation, with modification, that the Municipal Accountant

3. The existence, completeness, valuation and accuracy of the balance of the

We recommended that the Municipal Mayor:

a. instruct the Inventory Committee to (i) conduct a comprehensive physical inventory

Lastly, we recommended that the Municipality exhaust possible remedy to reconcile

4. The Account Payable balance of ₱75,029,441.78 as of December 31, 2022 is

We reiterated the recommendation, with modification, that the Municipal

5. The Due to National Government Agencies (NGAs) account totaling

We recommend that the Municipal Accountant:

Summary of Suspensions, Disallowances and Charges

Status of Implementation of Prior Years’ Unimplemented Audit Recommendations

Part I Audited Financial Statements

• Independent Auditor’s Report 1

Part II Audit Observations and Recommendation 25

Part III Status of Implementation of Prior Years’ Unimplemented 121

Part IV Appendices 156

AUDITED FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT

Hon. EDGARDO C. CORDEÑO

Basis for Qualified Opinion

We conducted our audit in accordance with International Standards of Supreme Audit

Key Audit Matters

Auditor’s Responsibilities for the Audit of Financial Statements

AUDIT OBSERVATIONS AND RECOMMENDATIONS

Doubtful RPT and SET Receivables balances

1. Deficiencies were noted in the establishment and keeping of accounts of Real

Section 254. Notice of Delinquency in the Payment of Real Property Tax. –

Section 269. Treasurer to Certify Delinquencies Remaining Uncollected. –

Section 111. Keeping of Accounts.

1. The accounts of an agency shall be kept in such detail as is

2. The highest standards of honesty, objectivity and consistency

Section 123. Definition of Internal Control. Internal control is the plan of

Section 124. Installation. It shall be the direct responsibility of the agency

1.4. Lastly, Section 20 of the Manual on New Government Accounting System

Sec. 20. Basis of Recording Real Property Tax/Special Education Tax .

1.5.2 According to the Municipal Treasurer, she is unaware and unaccustomed to

(b) RPT advance payment erroneously recognized as a collection of RPT