CamiguinProv2018 Audit Report
CamiguinProv2018 Audit Report
CamiguinProv2018 Audit Report
COMMISSION ON AUDIT
Regional Office No. X
J.V. Seriña Street, Carmen, Cagayan de Oro City
We are pleased to transmit the Annual Audit Report on the audit of the Province of
Camiguin, for Calendar Year 2018 in compliance with Section 2, Article IX-D of the
Philippine Constitution and Section 43 of Presidential Decree No. 1445, otherwise known
as the Government Auditing Code of the Philippines.
The audit was made to: (a) ascertain the level of assurance that may be placed on
management’s assertions on the financial statements; (b) recommend agency
improvement opportunities; and (c) determine the extent of implementation of prior
year’s unimplemented audit recommendations.
The audit was conducted in accordance with International Standards of Supreme Audit
Institutions and we believe that it provided reasonable basis for the audit results.
We expressed a qualified opinion on the fairness of presentation of the financial
statements of the Province of Camiguin for the year 2018 due to the following
exceptions:
1. Non-reconciliation of General Ledger (GL) with bank statements and
cashbook maintained by the Provincial Treasurer, contrary to Sec 181(c)
Volume I of the Government Accounting and Auditing Manual (GAAM),
casts doubt on the validity and reliability of the consolidated balance of Cash
in Bank (CIB) account of P213,522,526.51 appearing in the financial reports
as of year-end.
2. The Due from NGAs, Due from GOCCs, Due from LGUs, and Due from
NGOs/POs accounts under the GENERAL FUND totaling P7,419,661 as of
December 31, 2018 remained uncollected, long outstanding and non-moving,
thereby affecting the fair presentation of the financial statements and
depriving the Provincial Government of the beneficial use of such funds had
these receivables been collected.
3. The recorded amount of the Road Network account as at year-end under the
General Fund totaling P218,604,477, could not be ascertained due to the
failure of the Provincial Government to keep and maintain a Local Road
Inventory and Road Map, and a Report on the Physical Count of the Road
Network System, and reconcile the same with the Registry of Public
Infrastructures, as required under COA Circular No. 2015-008 dated
November 25, 2015, thus, affecting the fair presentation of the account in the
financial statements.
4. The Due to NGAs account amounting to P125,828,668.49 as of December 31,
2018 included non-moving and long outstanding accounts totaling
P22,696,910.93, thereby affecting the fair presentation of the financial
statements.
5. The Bail Bonds Payable account, totaling P1,386,373.01 as of August 31,
2018, was erroneously recorded and included under the Guaranty Deposits
Payable account during the conversion of account balances in view of the
implementation of the enhanced eNGAS/eBudget Version 2.0, thereby
affecting the fair presentation of the financial statements.
The above and other observations, together with the recommended courses of action
which were discussed by the Audit Team with you and other officials of the Provincial
Government in an exit conference on February 22, 2019, are discussed in detail on Part II
of the Report.
We acknowledge the support and cooperation that you and your Staff extended to the
Audit Team which facilitated the completion of this Report.
C
D
R
Copy furnished:
Agency sign-off:
______________________________ ____________
Name and Position of Agency Officer Date
Note: Status of Implementation may either be (a) Fully Implemented, (b) Ongoing, (c) Not Implemented, (d) Partially Implemented, or (e) Delayed
Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. X
Cagayan de Oro City
ON THE
PROVINCE OF CAMIGUIN
March 9, 2019
ATTY. CELSO L. VOCAL
Regional Director
COA - Regional Office No. 10
Cagayan de Oro City
Sir:
In compliance with Section 2, Article IX-D of the Philippine Constitution and
pertinent provisions of Presidential Decree No. 1445, otherwise known as the
Government Auditing Code of the Philippines, we audited the accounts and operations of
the Province of Camiguin, for the year ended December 31, 2018.
The audit was conducted to ascertain the propriety of the financial transactions
and determine the extent of compliance of the agency 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 presentations of the financial statements.
Our attached report consists of four parts, Part I - Audited Financial Statements,
Part II - details of our significant Observations and Recommendations which were
discussed with concerned management officials and staff during the exit conference
conducted on February 22, 2019, Part III - Status of Implementation of Prior Years’
Audit Recommendations, and Part IV - Appendices.
There is reason to believe that the financial statements are not free of
misstatements which, however, are not material enough to conclude that the financial
condition of the Province of Camiguin as of December 31, 2018 and the results of its
operations are not fairly presented.
V
Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. 10
Cagayan de Oro City
EDGARDO P. MELENDEZ
Supervising Auditor
Audit Group-A, Province of Misamis Oriental and Camiguin
COA - Regional Office No. 10
Cagayan de Oro City
The audit was conducted to ascertain the propriety of the financial transactions
and determine the extent of compliance of the agency 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 presentations of the financial statements.
Our attached report consists of four parts, Part I - Audited Financial Statements,
Part II - details of our significant Observations and Recommendations which were
discussed with concerned management officials and staff during the exit conference
conducted on February 22, 2019, Part III - Status of Implementation of Prior Years’
Audit Recommendations, and Part IV – Appendices.
There is reason to believe that the financial statements are not free of
misstatements which, however, are not material enough to conclude that the financial
condition of the Province of Camiguin as of December 31, 2018 and the results of its
operations are not fairly presented.
INTRODUCTION
FINANCIAL HIGHLIGHTS
The income of ₱501,342,403 collected during the year was sourced from the
following:
Special
General Trust
Particulars Education Total
Fund Fund
Fund
Share from IRA P 461,690,759 P 461,690,759
Service and Business Income 20,474,352 P 4,577 20,478,929
Other Income 8,531,147 - 8,531,147
Tax Revenue 6,040,837 4,600,731 10,641,568
Total P 496,737,095 P - P 4,605,308 P 501,342,403
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OPERATIONAL HIGHLIGHTS
SCOPE OF AUDIT
The audit covered the operations of the Provincial Government of Camiguin for
the year ended December 31, 2018. The objectives of the audit are to ascertain the
fairness of the presentation and reliability of the accounts and assessing the accounting
principles used and significant estimates made as well as evaluating the overall financial
position and results of its operations, to determine whether the programs, projects and
activities for the year were attained in an efficient, economical and effective manner. We
also conducted compliance audit to check the validity and propriety of transactions and
adherence to pertinent laws, rules and regulations.
2. The Due from NGAs, Due from GOCCs, Due from LGUs, and Due from
NGOs/POs accounts under the GENERAL FUND totaling P7,419,661 as of
December 31, 2018 remained uncollected, long outstanding and non-moving,
thereby affecting the fair presentation of the financial statements and
ii
depriving the Provincial Government of the beneficial use of such funds had
these receivables been collected.
3. The recorded amount of the Road Network account as at year-end under the
General Fund totaling P218,604,477, could not be ascertained due to the
failure of the Provincial Government to keep and maintain a Local Road
Inventory and Road Map, and a Report on the Physical Count of the Road
Network System, and reconcile the same with the Registry of Public
Infrastructures, as required under COA Circular No. 2015-008 dated
November 25, 2015, thus, affecting the fair presentation of the account in the
financial statements.
1. Special Accounts in the General Fund for the operation of Hospitals and other
Economic Enterprises including Development Projects funded from the share of
the LGU in the IRA were not maintained and the related financial statements
were not separately prepared, contrary to Section 313 of RA. No.7160 and
Sections 105 to 110 of NGAS Manual of LGUs Volume I, thus, depriving the users
the information that could have been used for monitoring and decision-making.
iii
2. Warranty Security against structural defects and structural failures for the
completed projects were not enforced as required under the 2016 Revised IRR of
R.A. No. 9184, thus, the interest of the local government unit is not fully protected
in case the contractors do not perform their responsibilities in accordance with
their approved contract for infrastructure projects.
We recommend that Management require all payments for registrations fees for
seminars, meetings and conventions, including other payments and contributions
to various leagues and federations of local elective officials be supported with
government prescribed official receipts or AF No. 51.
iv
We recommend that Management put into priority the utilization of the facility,
allocate budget for the purchase of the necessary equipment in order to serve the
purpose of the project.
Monitoring and validation of the actions taken by the management relative to the
implementation of prior years’ audit recommendations disclosed that of the twenty-seven
(27) audit recommendations embodied in the prior years’ Annual Audit Report, four (4)
were fully implemented, seventeen (17) were partially implemented and six (6) were
unimplemented.
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TABLE OF CONTENTS
IV - APPENDICES 117-144
PART I
Qualified Opinion
We have audited the financial statements of the Provincial Government of Camiguin, which
comprise the statement of financial position as of December 31, 2018 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 section of our report, the accompanying financial statements present fairly, in all
material respects, the financial position of the Provincial Government of Camiguin as at
December 31, 2018, 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.
As discussed in Part II of this report, non-reconciliation of General Ledger (GL) with bank
statements and cashbook maintained by the Provincial Treasurer casts doubt on the validity
and reliability of the consolidated balance of Cash in Bank (CIB) account of
P213,522,526.51; the Due from NGAs, Due from GOCCs, Due from LGUs, and Due from
NGOs/POs accounts under the GENERAL FUND totaling P7,419,661 as of December 31,
2018 remained uncollected, long outstanding and non-moving; the recorded amount of the
Road Network account as at year-end under the General Fund totaling P218,604,477, could
not be ascertained due to the failure of the Provincial Government to keep and maintain a
Local Road Inventory and Road Map, and a Report on the Physical Count of the Road
Network System, and reconcile the same with the Registry of Public Infrastructures; the Due
to NGAs account amounting to P125,828,668.49 as of December 31, 2018 included non-
moving and long outstanding accounts totaling P22,696,910.93; and the Bail Bonds Payable
account, totaling P1,386,373.01 as of August 31, 2018, was erroneously recorded and
included under the Guaranty Deposits Payable account during the conversion of account
balances in view of the implementation of the enhanced eNGAS/eBudget Version 2.0.
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 the International Public Sector Accounting Standards and for
such internal control as management determines is necessary to enable the preparation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Those charged with governance are responsible for overseeing the Provincial Government’s
financial reporting process.
Our objectives are to obtain reasonable assurance whether the financial statements as a whole
are free from 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 the 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.
COMMISSION ON AUDIT
By:
2
Republic of the Philippines
PROVINCE OF CAMIGUIN
Mambajao, Camiguin
3
PROVINCIAL GOVERNMENT OF CAMIGUIN
Combined Statement of Financial Position
As of December 31, 2018
(With Comparative Figures of CY 2017)
4
PROVINCIAL GOVERNMENT OF CAMIGUIN
Combined Statement of Financial Performance
For the Year Ended December 31, 2018
(With Comparative Figures of CY 2017)
5
PROVINCIAL GOVERNMENT OF CAMIGUIN
Combined Statement of Changes in Net Assets/Equity
For the Year Ended December 31, 2018
(With Comparative Figures of CY 2017)
2018 2017
6
PROVINCIAL GOVERNMENT OF CAMIGUIN
Combined Statement of Cash Flows
For the period Ended December 31, 2018
(With Comparative Figures of CY 2017)
Note 2018 2017
Cash Flows from Operating Activities
Cash Inflows
Collection from taxpayers 14,606,828 7,719,844
Share from Internal Revenue Allotment 461,690,759 430,382,037
Receipts from business/service income 10,999,167 26,143,165
Interest Income 2,013 5,724,679
Other Receipts 235,689,462 186,995,418
Adjustments (58,801,185) -
Total Cash Inflows 664,187,044 656,965,143
Cash Outflows
Payment of expenses 58,467,596 -
Payments to suppliers and creditors 118,230,236 165,365,498
Payments to employees 228,099,737 137,695,007
Interest Expenses 5,588,694 5,172,229
Other Payments 67,595,413 -
Adjustments 87,928
Total Cash Outflows 478,069,604 308,232,734
Net Cash Flows from Operating Activities (26) 186,117,441 348,732,409
Cash Flows from Investing Activities
Cash Inflows
Collection of Principal on loans to other entities (22,599,706) 141,650,722
Total Cash Inflows (22,599,706) 141,650,722
Cash Outflows
Purchase/Construction of Investment Property (415,895) (747,218)
Purchase/Construction of Property, Plant and Equipment 285,690,740 267,786,711
Grant of loans 690,000
Total Cash Outflows 285,964,845 267,039,493
Net Cash Flows from Investing Activities (308,564,550) (125,388,771)
Cash Flows from Financing Activities
Cash Inflows
Proceeds from Loans 38,118,725 -
Total Cash Inflows 38,118,725 -
Cash Outflows
Payment of loan amortization 13,853,469 -
Total Cash Outflows 13,853,469 -
Net Cash Flows from Financing Activities 24,265,256 -
Total Cash Provided by Operating, Investing and
Financing Activities (34,332,647) 223,343,638
Add: Cash at the Beginning of the Year 539,019,596 315,675,955
Cash Balance at the End of the Year 504,686,949 539,019,596
(See accompanying Notes to Financial Statements)
7
Province of Camiguin
Statement of Comparison of Budget and Actual Amounts
For the Year Ended December 31, 2018
8
Social Welfare
Personal Services 3,251,257 3,472,154 (220,897) 3,310,154 162,000
Maintenance & Other
Operating Expenses 31,452,795 18,742,315 12,710,480 16,907,964 1,834,352
Capital Outlay 130,000 1,481,010 (1,351,010) 1,173,598 307,413
Economic Services
Personal Services 34,492,480 30,814,524 3,677,956 26,174,718 4,639,806
Maintenance & Other 68,5 (17,08 62,97 5,5
Operating Expenses 51,476,257 61,944 5,687) 2,191 89,754
Capital Outlay 320,000 401,084,000 (400,764,000) 906,690 400,177,310
Other Purposes:
Debt Service
Financial Expenses 11,925,000 12,915,000 (990,000) 11,331,445 1,583,555
Amortization 20,384,615 20,384,615 - 16,640,704 3,743,912
20% Development Fund
Maintenance & Other 3,9 5,1 (1,21 5,1
Operating Expenses 33,687 52,000 8,313) 07,048 44,952
Capital Outlay 68,016,458 72,943,898 (4,927,440) 53,579,542 19,364,355
Others 5%
Maintenance & Other
Operating Expenses 12,875,441 12,875,441 - 12,875,441 -
Capital Outlay 12,550,000 12,550,000 - 11,451,560 1,098,440
Total Current Appropriations 507,232,127 980,250,449 (473,018,323) 500,267,290 479,983,159
Continuing Appropriations
(Capital Outlay )
General Public Services 12,218,553 12,218,553 - 3,417,390 8,801,163
Social Services & Social 1,1 1,1 3 7
Welfare 12,393 12,393 - 44,050 68,343
Economic Services 42,523,306 41,523,306 1,000,000 22,515,174 19,008,131
Total Continuing Appropriations 55,854,252 54,854,252 1,000,000 26,276,615 28,577,637
1,035,104,70
Total Appropriations 563,086,378 1 (472,018,323) 526,543,904 508,560,797
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Provincial Government of Camiguin
NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2018
Local Government of Camiguin was created by virtue of Republic Act No. 4669 dated June
18, 1966. The island province lies ten kilometers off the north coast of the province of Misamis
Oriental and 54 kilometers southeast of Bohol island. The pear-shaped island covers an area of
291.87 square kilometers. The total population of the Province of Camiguin in 2007 was estimated
to be 81,293 persons. The over-all objective of the provincial government is Productivity in
economic development, Partnership among stakeholders, and Reinforced basic services delivery for
the Continuity of Progress in the island province.
Vision: Camiguin, a prime tourist destination with sustainable socio economic growth and
effective management of all resources, while preserving the dignity and high moral values of the
populace.
For 2019, on its 50th Camiguin Foundation Day celebration on January 7, 2019, under the
administration of Prov.’l. Governor Maria Luisa D. Romualdo, the following remained to be
the 10 Point Priority Development Thrusts of Camiguin Province:
Food Sufficiency Program is the major thrust, in order to liberate the people of Camiguin from
poverty, sickness and hunger and thus enable everyone to share the “continuity of progress” we’re
all working for.
For the year 2018, Camiguin Provincial Government, despite of its income classification as a 5 th
class province, has judiciously, responsibly and prudently managed its limited resources in
implementing its various development plans, programs and projects. With the continued financial
support from the Office of the Hon. Congressman Xavier Jesus D. Romualdo, and in coordination
with the National Government Agencies, the Local Government of Camiguin has accomplished
much and made CY 2018 a very fruitful year for all “kamiguingnons”.
10
Note 2 – Basis of Financial Statement Presentation
3.2 Consolidation
Special accounts are maintained under the General Fund for the following
specific purposes it operates:
Other accounts with specific purpose/s whose fund is jointly sourced out
from general fund and other government agencies (NGAs, LGUs, GOCCs,
NGOs) and which are mandated, per Memorandum of Agreement (MOA)/
Sanggunian Panlalawigan Resolution, to be separately accounted under the
Trust Fund book of accounts, are the following:
The province has not yet entered in a joint venture business/interest, though in
the establishment, operation and maintenance of some of its tourism facilities,
a Memorandum of Agreement (MOA) is entered into with the barangay and
municipality where the specific facility is located, for terms and conditions on
11
its improvement, operation, maintenance and the share of the local income
form part of the revenue of the local government unit booked up under the
General Fund.
The province recognizes revenues from taxes and fines when the event occurs
and the asset recognition criteria are met.
Rendering of services
The province recognizes revenue from rendering services upon actual receipt
of income and by reference to the stage of completion when the outcome of
transaction can be estimated reliably. To the extent that there is a related
condition to the uncertainty of full collection, a deferred credit is recognized
instead of revenue (Hospital fees collectible from PHIC).
Interest income
Rental Income
Rental income recognized in the books are proceeds from Lease Contract for
usage of government facilities and heavy equipment and the revenue/receipts
accrue to the General Fund.
12
3.6 Property, plant and equipment
All property, plant and equipment are stated at cost less accumulated
depreciation and impairment losses. Cost includes expenditure that is directly
attributable to the acquisition of the items. When significant parts of property,
plant and equipment are required to be replaced at intervals, the province
recognizes such parts as individual assets with specific useful lives and
depreciates them accordingly. Likewise, when a major inspection is
performed, its cost is recognized in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. All other
repair and maintenance costs are recognized in surplus or deficit as incurred.
Where an asset is acquired in a non-exchange transaction for nil or nominal
consideration the asset is initially measured at its fair value.
Depreciation on assets is charged on a straight –line basis over the useful life
of the asset. Depreciation is charged at rates calculated to allocate cost or
valuation of the asset less any estimated residual value over its remaining
useful life.
Cash and cash equivalents comprise cash on hand and cash at bank, deposits
on call and highly liquid investments with an original maturity of three
months or less, which are readily convertible to known amounts of cash and
are subject to insignificant risk of changes in value. For the purpose of the
consolidated statement of cash flows, cash and cash equivalents consist of
cash and short-term deposits as defined above, net of bank overdrafts.
3.8 Inventories
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3.10 Borrowing Cost
The annual budget is prepared on the modified cash basis, that is, all planned
costs and income are presented in a single statement to determine the needs of
the LGU. As a result of the adoption of the Modified cash basis for budgeting
purposes, there are basis, timing or entity differences that would require
reconciliation between the actual comparable amounts and the amounts
presented as a separate additional financial statement in the statement of
comparison of budget and actual amounts. Explanatory comments are
provided in the notes to the annual financial statements; first, the reasons for
overall growth or decline in the budget are stated, followed by details of
overspending or underspending on line items.
Details for the difference from Original with Final Budget (under General
Fund) of Php 473,018,322.85 were additional fund sources of Supplemental
Budget from: CY 2017 Surplus Php 39,018,322.85, reversion of continuing
appropriation of Php 1,000,000.00 and LBP Borrowings of Php
433,000,000.00 while Difference from Final Budget/Estimates of Income with
Actual Income Earned for the period of Php 11,767,154.24 represent the
unrealized estimated income from local sources.
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Income:
Funding Sources for Supplemental Budget not reflected as Income in the
Statement of Financial Performance:
a) Surplus, Dec. 31, 2017 Php 39,018,323
b) Reversion of Continuing Appropriation 1,000,000
40,018,323
The province operates two (2) tourism facilities: Soda Water Park at Bura,
Catarman and Sto. Nino Cold Spring Resort at Sto. Nino Catarman, in
coordination with concerned LGUs and covered with a Memorandum of
Agreement for the specific duties and obligations of related parties and its
profit sharing scheme, in accordance with the Revenue Code: 60% for
Operational Expenses, 20% for the province and 15% for the Barangay and
5% for the Municipality concerned.
There were no events occurred after the reporting date that would require
disclosures or adjustments on the financial statements of the Province.
2018 2017
Cash on Hand
Cash - Local Treasury 2,469,942 1,945,467
Petty Cash Fund 114,072 40,525
Cash Equivalents
Cash In Bank - LCCA - Time Deposits 288,573,029 248,569,049
504,686,949 539,019,596
Petty Cash operates under Imprest system. The balance is closed at the start of the
ensuing year.
Cash in bank earns interest based on the prevailing bank deposit rates.
Cash in Bank deposit in Foreign Currency existed for the purpose of receiving
donations from foreign donors during the occurrence of Typhoon Nanang which hit
Camiguin on Nov. 1, 2001. The amount remained unchanged up to present.
15
Short-term time deposits are made for varying periods, depending on the immediate
cash requirements of the LGU and earn interest at the respective short-term deposit
rate. These are High Yield Savings (HYS) balances of December 31, 2018, details as
follows:
Upon deposit to HYS account, the bank updates the LGU passbook for interest
income and its corresponding tax. Submission of passbook to the bank is made
monthly for reconciliation purposes.
Time Deposit in High Yield Savings (HYS) is made when there is an excess of cash
for LGU operation and to be withdrawn whenever needed, after a short notice, at
most three days before withdrawal, is given to the bank. Interest income from these
deposits, net of tax accrue to the general fund.
Note 5 - Investments
2018 2017
Financial Assets – Others
Guarantee Deposits 172,910 172,910
The Province has not yet entered in an investment in joint venture, though in the
establishment, operation and maintenance of some of its tourism facilities, a
Memorandum of Agreement (MOA) is entered into with the barangay and
municipality where the specific facility is located, for terms and conditions on its
improvement, operation, maintenance and the share of the local income form part of
the revenue of the local government unit booked up under the General Fund.
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Note 6 – Receivables
2018 2017
6.1 Loans and Receivable Accounts
Accounts Receivable 1,019,441 1,019,441
Loans Receivable- Others 21,536,084 21,545,321
22,555,525 22,564,762
85.5% of the accounts receivable or approximately P828,530.83 are aged 2-10 years.
This amount represents old accounts and some are due from clients for utilization of
heavy equipment and others are old balances which remained outstanding in the
books.
2018 2017
SAIL I – (Spanish Assistance for Integrated
Livelihood) 10,139,749 10,153,891
PNPL – (Plant Now Pay Later Program) 7,460,744 7,425,982
Other National Agencies 3,935,591 3,965,448
21,536,084 21,545,321
When SAIL Program Phase I to III was terminated in 1996, the SAIL Office turned
over the assets and accounts were transferred to the Province and booked up under
Trust Fund. The Loans Receivable-SAIL 1, reduced by minimal collections from
beneficiaries, has remained outstanding up to present.
The Plant Now Pay Later (PNPL) initially funded from local sources in 1999, is a
continuing livelihood program now funded by its loan repayments.
Loans Receivables–Other NGAs are livelihood programs released for the following
purpose:
2018 2017
Livelihood Program 1,892,856 1,930,714
Seedlings Program 127,200 127,200
Fertilizer Loan Program 223,750 223,750
KKK Loan Proponents 450,998 450,998
Pagkain ng Bayan 451,258 451,258
SPDA-Livelihood Program 116,820 108,820
SMEs- One Town One Product 389,007 389,007
CCRMP Livelihood Program 206,900 206,900
DOLE Fertilizer Loan 76,801 76,801
3,935,591 3,965,448
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2018 2017
6.2 Inter-Agency Receivables
Due from NGAs 5,091,910 3,407,659
Due from GOCCs 510,467 510,467
Due from LGUs 4,411,688 4,154,956
10,014,065 8,073,082
Hospital bills of patients due from PHIC (GOCC) are recorded as deferred credits and
remained as unearned income until collected.
2018 2017
6.3 Intra-Agency Receivables
Due from Other Funds 7,153,185 7,631,335
2018 2017
6.4 Advances
Advances for Payroll 6,382 -
Advances to Officers & Employees 311,596 251,150
317,978 251,150
2018 2017
6.5 Receivables-Others
Due from NGOs/POs 8,316,237 8,316,237
Other Receivables 95,986 95,859
Receivables-Disallowances/Charges 218,162 454,466
8,630,385 8,866,562
DENR released fund to the Province, covered with a MOA for the implementation of
the Project: Sustainable Coral Reef Eco-System Program, contracted by
Sangkalikasan Inc.
Note 7 – Inventories
2018 2017
7.1 Inventory Held for Sale
Merchandise Inventory - 372,695
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Merchandise inventory are Pharmacy stocks at hospital for sale and whose proceeds
is kept as a Revolving Fund as Trust Account in the General Fund.
2018 2017
7.1 Inventory Held for Consumption
Accountable Forms, Plates and Stickers 584,301 746,959
Accountable forms are purposely held for consumption by operating units of the
provincial government and at times, only facilitates use by other LGUs per their
request, issued at cost plus a minimal mark-up. The proceeds is remitted in the
Revolving Fund for the purpose and booked up as Trust Account in the General
Fund.
2018 2017
Advances to Contractors 3,110,466 22,584,588
Other Prepayments 9,836 9,836
3,120,302 22,594,424
Other prepayments are made to PS-Sub-Depot of DBM stationed within the premises
of the Provincial Capitol, for stocks/supplies ordered which are required to be paid
prior to delivery.
2018 2017
Investment Property – Land 94,484 94,484
Investment Property – Building 4,538,956 4,538,956
Accumulated Depreciation – Investment
Property – Building (3,131,688) (2,678,388)
1,501,752 1,955,052
Cost of land and building for investment properties served as tourism facilities which
income from usage (rentals and fees) accrue to the general fund and the cost for the
operation and maintenance either charged from portion of the income or integrated
with the expenses of the general fund. The following are the tourism facilities and its
respective collected income:
2018 2017
Katibawasan Falls ( Gross ) 956,686 1,020,335
Soda Water Park at Bura ( 20% share ) 553,271 548,498
Walkway to Old Volcano ( donations ) 232,119 148,924
Old Church Ruins ( donations ) 173,380 164,083
Sto. Nino Cold Spring Resort (20% share ) 1,261,607 1,140,010
Cong PPR Sport Center 229,723 285,712
19
3,406,786 3,307,562
20
Accumulated Depreciation - Watercrafts (585,648) (495,432)
Furniture and Fixtures 3,092,554 2,782,579
Accumulated Depreciation - Furniture and Fixtures (1,107,701) (888,518)
Books 77,503 77,503
Accumulated Depreciation - Books (76,820) (76,820)
Construction in Progress - Land Improvements 2,292,821 35,598,579
Construction in Progress - Infrastructure Assets 15,356,528 98,165,411
Work/Zoo Animals 430,000 430,000
Other Property, Plant and Equipment 15,533,203 14,080,447
Accumulated Depreciation - Other Property, Plant and (5
Equipment ,755,899) (5,305,340)
1,162,386,357 843,985,264
The Province measured the residual value of all items of property, plant and
equipment but does not expect a residual value of these assets, because these will be
utilized for their entire economic lives and do not have a significant scrap value.
During the current financial year, the province reviewed the estimated useful lives
and residual values of property, plant and equipment, where appropriate.
2018 2017
Breeding stocks 5,994,706 5,994,706
Note 12 – Liabilities
2018 2017
12.1 Financial Liabilities
Accounts Payable 50,927,491 44,949,198
Due to Officers and Employees 7,600 7,600
Loans Payable - Domestic 239,605,577 217,839,505
290,540,668 262,796,303
Trade payables are non-interest bearing and are normally settled on 60- day terms.
Due to Officers and Employees are withheld amount awaiting submission of
requirements.
21
Loans Payable – Domestic are loans availed from Land Bank of the Philippines thru
its credit line facility of Php 265 million approved last September 4, 2015 to finance
the concreting of twenty-one (21) provincial roads as a support to agriculture and
tourism industry of Camiguin. . The term of the loan was 15 years with 2 years grace
period on the principal repayment. It bears a variable interest rate of 4.5% per annum,
subject to quarterly repricing, covered with promissory notes and are secured by
assignment of Internal Revenue Allotment of the Province. Interest Expense related
to bank loan amounts to Php 11,043,394 for CY2018 and Php 5,172,229 for CY
2017.
In CY2018, the Province of Camiguin availed additional loan from Land Bank of the
Philippines thru its new credit line facility in the amount of P433Million approved
last November 26, 2018 to finance the acquisition of heavy equipment and for the
construction of Provincial Capitol Building. The borrowing interest rate depends on
the prevailing interest rate at the time of availment and covered with promissory notes
and is secured by assignment of Internal Revenue Allotment of the Province. No loan
release yet from the LBP as of December 31, 2018.
2018 2017
12.2 Inter-Agency Payables
Due to BIR - 1,204,850
Due to GSIS - 1,132,410
Due to PAG-IBIG - 128,251
Due to PHIL-HEALTH - 50,096
Due to NGAs 125,828,668 245,715,438
Due to GOCCs 315,573 315,573
Due to LGUs 25,797,734 25,395,727
151,941,975 273,942,345
Remittances of withheld taxes and premiums made in the ensuing month. Due to
Other NGAs and LGUs are balances of fund for on-going project/programs for
specific purposes under Trust Fund account. p
2018 2017
12.3 Intra-Agency Payables
Due to Other Funds 3,284,974 1,951,788
2018 2017
12.4 Trust Liabilities
Disaster Risk Reduction and
Management (DRRM) Fund 16,858,942 19,446,001
Guaranty/Security/Deposits Payable 11,950,950 17,846,489
28,809,892 37,292,490
22
DRRM Fund CY 2015 balance is transferred to Trust Fund DRRM Fund after Dec.
31, 2015. Guaranty/Security/Deposits payable are performance bond placed by the
contractor to guarantee the actual delivery of goods or services per contract or order
and Retention Deposit retained from the contractor’s billing for recoupment and
release in full upon satisfactory completion of the project.
2018 2017
12.5 Deferred Credits/Unearned Income
Other Deferred Credits 1,833,821 572,548
This is Contra asset account of Due from GOCCs representing uncollected hospital
bills for PHIC patients and beginning balance of old accounts.
2018 2017
Other payables 69,900,711 51,472,734
Balances of fund for Special accounts in the general fund are Revolving Funds for:
Drugs, Medicines & Medical Supplies, Accountable Forms, Diesel Fuel in Overhead
Tank, including funds for other receipts with specific purposes, Professional
(Physicians) Fees, Stale Checks and others.
2018 2017
Tax Revenue – Individual and Corporation
Professional Tax 13,425 -
Tax Revenue- Property
Real Property Tax – Basic 3,221,074 2,293,989
Special Education Tax 4,600,731 3,208,801
Real Property Transfer Tax 452,993 439,353
Tax Revenue- Goods and Services
Amusement Tax 32,635 26,550
Franchise Tax 246,198 271,371
Tax on Delivery Trucks and Vans 113,700 121,340
Tax on Sand and Gravel 1,959,141 1,349,718
Printing and Publication 1,671 -
Tax Revenue-Others
Other Taxes - 8,723
Share from National Taxes
Share Internal Revenue Collection 461,690,759 430,382,037
472,332,327 438,101,881
23
2018 2017
Service Income
Permit fees 298,900 291,860
Clearance & Certificates Fees 126,970 120,086
Inspection Fees 280,975 264,929
Occupation Tax 45,975 73,000
Other Service Income 424,380 296,205
Business Income
Rent Income 1,582,878 1,766,289
Hospital Fees 15,188,254 21,179,688
Interest Income 2,467,054 2,161,136
Fines & Penalties-Business Income 63,543 -
Miscellaneous Income 8,531,147 5,714,651
29,010,076 31,867,844
2018 2017
Grants and Donations in Cash 213,111,754 181,981,002
This account is the total amount utilized from the Trust Fund releases during the year
and equivalent to the amount of operating expenses reported under various
programs/projects implemented for the period of P12,751,363.86 and the CY 2014
PDRRM Fund of P12,054,236.07, transferred and remained unspent at the end of the
year.
2018 2017
Personnel Services
Salaries and Wages-Regular 88,848,793 86,862,897
Salaries and Wages-Casual/Contractual 34,365,842 24,295,749
Other Compensation
Personal Economic Relief Allowance 8,975,058 8,991,725
Representation Allowance 1,823,600 1,925,024
Transportation Allowance 1,823,600 1,925,0244
Clothing/Uniform Allowance 2,244,000 1,870,000
Subsistence, Laundry & |Quarter Allowance 3,094,026 2,851,952
Honoraria 1,719,271 600,350
Hazard Pay 15,000 24,000
Productivity Incentive Allowance 716,500
Overtime and Night Pay 740,6767 112,400.00
Year end Bonus 12,675,7667 13,133,701
Cash Gift 10,500.00 1,859,00
Personnel Benefit Contribution
Retirement and Life Insurance 10,271,479 9,377,752
24
Pag-IBIG Contribution 1,712,380 1,563,802
Phil-Health Contribution 1,040,478 832,675
Employees Compensation Insurance
Premiums 435,192 429,732
Other Personnel Benefit
Terminal Leave Benefits 5,912,869 3,990,769
Other Personnel Benefits 20,240,917 6,606,874
196,665,946 167,253,426
2018 2017
Travelling Expenses
Travelling Expenses – Local 8,860,281 9,394,439
Travelling Expenses – Foreign - 487,500
Training and Scholarship Expenses
Training expenses - 14,000
Supplies and Materials Expenses
Office Supplies Expenses 4,918,329 4,908,841
Accountable Forms Expenses 190,160 171,085
Animal/Zoological Expenses 4,643,639 1,550,305
Food Supplies Expenses 14,448,950 16,018,458
Drugs and Medicines Expenses 5,251,918 3,220,067
Medical, Dental & Lab Supplies Expenses 11,608,835 9,638,602
Fuel, Oil & Lubricants Expenses 10,235,984 7,550,197
Agricultural & Marine Supplies Expenses 40,880 182,424
Textbooks and Instructional Materials Expenses - 3,200
Military, Police and Traffic Supplies Expenses - 8,100
Other Supplies & Materials Expenses 10,894,433 6,554,299
Utility Expenses
Water Expenses 685,402 266,943
Electricity Expenses 12,809,088 11,437,076
Communication Expenses
Postage and Deliveries 34,668 8,608
Telephone expenses 423,389 1,324,694
Internet Expenses 107,825 117,338
Cable, Satellite, Telegraph & Radio Expenses - 2,520
Awards/Rewards and Prizes
Awards/Rewards expenses 1,036,400 1,660,050
Confidential, Intelligence Expenses
Confidential expenses 3,500,000 7,702,500
Intelligence Expenses 3,500,000 7,702,500
93,190,179 89,923,746
25
2018 2017
Consultancy Services 560,000 -
Other Professional Services 734,734 -
1,294,734 -
Professional Services is choreographer fee and legal services for payment of notarial
services.
2018 2017
Repair and Maintenance – Building & Other Structures 13,175 170,882
Repair & Maintenance – Machinery & Equipment 4,316,618 5,425,840
Repair & Maintenance – Transportation Equipment 3,491,244 3,046,903
Repair & Maintenance – Other, Property, Plant & Equipment 20,100 14,800
7,841,137 8,658,425
Note 21 – Transfers
2018 2017
Transfers of Unspent Current Year DRRM
Funds to the Trust Funds 9,239,065 6,059,322
2018 2017
Taxes, Duties & Licenses 526,236 599,924
Fidelity Bond Premiums 203,164 157,114
Insurance expenses 344,682 420,667
1,074,082 1,177,705
2018 2017
Advertising expenses 2,224,024 511,890
Printing & Publication expenses 11,400 40,000
Rent expenses 471,960 288,132
Membership Dues and Contributions to Organizations 240,231 613,555
Subscription expenses 118,994 136,462
Donations 4,901,668 9,732,183
Representation expenses 715,997 107,952
Transportation & Delivery expense 72,763 137,518
Interest Expenses 11,043,394 4,465,889
Bank Charges 290,051 706,340
Other Maintenance & Operating Expenses 44,287,476 30,656,867
64,377,958 47,396,787
26
Note 25 – Non-Cash Expenses
2018 2017
Depreciation and Amortization
Depreciation – Investment Property 47,024 -
Depreciation – Land Improvements 45,867 44,817
Depreciation – Infrastructure Assets 2,944,295 -
Depreciation – Buildings and Other Structures 8,843,451 7,786,746
Depreciation – Machinery and Equipment 19,296,496 17,483,968
Depreciation – Transportation Equipment 757,738 -
Depreciation – Furniture, Fixture and Book 80,854 6,519
Depreciation – Other Property, Plant &
Equipment 450,559 644,357
32,466,284 25,966,406
27
PART II
FINANCIAL AUDIT
Cash
Section 181 (c) of the GAAM Vol. I provides that the accountable officer shall
reconcile the book balance with the cash on hand daily. He shall foot and close the books
at the end of each month. The accountable officer and the Accountant shall reconcile their
books of accounts at least quarterly.
Review of the financial statements (FS) of 2018 showed that the Cash in Bank
account showed a total balance of P213,522,526.51, broken down as follows:
Funds FS Balance
General Fund (GF) P12,014,050.34
20% Development Fund (DF) 63,849,206.17
Special Education Fund (SEF) 5,231,973.61
Trust Fund (TF) 132,427,296.39
Total P 213,522,526.51
However, the CIB account balances under SEF and TF cannot be compared with
the balances of the cash book maintained by the Provincial Treasurer in view of the
ongoing updating of the cash book by the latter.
29
Moreover, records of this office showed that the bank reconciliation statements as
of year-end are still pending for submission, thereby casting doubt on the validity and
correctness of the financial statement balance for the said accounts.
Recommendations
Management Response
The Official Provincial Accountant and the Office Provincial Treasurer are
currently still on the process of reconciling its records pertaining to cash balances for GF
and TF bank accounts.
The conduct bank reconciliation at year-end could not be taken up at year-end due
to late delivery of bank statement by the LBP, which usually delivered 30 days after the
end of the month. This is the main cause of late preparation bank reconciliation statement
and its corresponding adjustments for reconciling items. Because of this, the Provincial
Accountant is instructed to negotiate LBP to address this matter.
Receivables
2. The Due from NGAs, Due from GOCCs, Due from LGUs, and Due from
NGOs/POs accounts under the GENERAL FUND totaling P7,419,661.34 as
of December 31, 2018 remained uncollected, long outstanding and non-
moving, thereby affecting the fair presentation of the financial statements
and depriving the Provincial Government of the beneficial use of such funds
had these receivables been collected.
27. Financial statements shall present fairly the financial position, financial
performance, and cash flows of an entity. Fair presentation requires the
30
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.
Receivable accounts in the financial statements such as Due from NGAs, Due
from GOCCs, Due from LGUs, and Due from NGOs/POs represent the amounts due
from various government entities, private organizations and individuals. The accounts are
used to record advances and/or fund transfers for implementation of projects authorized
by law.
Item 6.1 of COA Circular No. 2016-005 dated December 19, 2016 provides that
all government entities shall conduct regular monitoring and analysis of receivable
accounts to ensure that these are collected when these become due and demandable and
that cash advances and fund transfers are liquidated within the prescribed period
depending upon their nature and purpose.
Item 7.4 further provides that the Accountant shall prepare an aging of dormant
receivables, unliquidated cash advances, and fund transfers on a quarterly basis to support
the request for write-off, and indicate in the remarks column the existence of the
applicable conditions, as follows:
The Trial Balance under the GENERAL FUND as of December 31, 2018 reported
the following receivable accounts:
Verification of records disclosed that the above receivable accounts in the General
Fund were recorded in various years. Some of the accounts were already existing as early
31
as August 2006 as beginning balances when the Province first implemented the eNGAS.
(Please See Appendix 4).
Some of the outstanding accounts qualify for write-off per COA Circular No.
2016-005. It is therefore advised that the Management file the request for authority to
write-off the subject dormant receivable accounts supported by the following documents:
o Other justifications, like in the case of request for write off due to loss of
documents, the circumstances of the loss should be stated in the letter
request
The presence of long outstanding receivables in the General Fund under the
accounts Due from NGAs, Due from GOCCs, Due from LGUs, and Due from
32
NGOs/POs affected the fair presentation of the financial statements as they are long
overdue for liquidation of the funds released.
33
Recommendations
a. Prepare an aging schedule of all individual accounts composing the Due from
NGAs, Due from GOCCs, Due from LGUs, and Due from NGOs/POs
accounts and determine if settlement and collectability can still be ascertained;
b. Determine the extent of implementation of the projects for which these funds
were released to concerned individuals or entities and demand liquidation
thereof;
Management Comments
Article II, Section 23 of the Philippine Constitution provides that the State shall
encourage non-governmental, community-based, or sectoral organizations that promote
the welfare of the nation.
Section 34 of R.A. No. 7160, or the Local Government Code, institutionalized the
partnership of these organizations and the local government units (LGUs), in line with the
above constitutional provision. However, to provide control and guidance in the release
and utilization of such funds, promote transparency and accountability, including
monitoring of the implementation of the projects funded out the funds granted, COA
Circular No. 2007-001 dated October 25, 2007 has been issued.
34
Section 4 of COA Circular No. 2007-001 provides the following guidelines:
Section 4.5.3 of the above circular further states that the project shall be covered
by a MOA which shall embody the terms of reference such as:
b. Systems and procedures to implement the project such as, but not limited to,
the procurement of goods and services by the NGO/PO and their distribution
which should be documented and coordinated through the LGU officials;
e. Specific period to liquidate the funds granted to the NGO/PO, with the LGU;
h. Institution of legal action by the LGU against the defaulting NGO/PO which
fails to complete a project covered by MOA, and in any of its cases, its
subsequent disqualification from applying for another project in any other
government organization;
35
Section 2.2 of COA Circular No. 2012-001 dated June 14, 2012 provides for the
documentary requirements in the implementation and liquidation of fund transfers
released to NGOs/POs, which includes the following:
o Final fund utilization report, indicating the summary of expenses and the
status report of accomplishments, certified by the accountant, approved by the
President/Chairman of the NGO/PO and verified by the internal auditor or
equivalent official of the GO;
o Pictures of implemented projects;
o Inspection report and certificate of project completion issued by the GO
authorized representative;
o O.R. issued by the granting GO acknowledging return by the NGO/PO of any
unutilized/excess amount of cash advance, including interest , if any;
o Liquidation Report
Paragraph IV, Section 23 of DOLE Department Order No. 137-14 series of 2014
which provides for the guidelines in the implementation of the DOLE Integrated
Livelihood and Emergency Employment Programs (DILEEP), states that all fund releases
shall be covered by the appropriate MOA and shall be in accordance with COA rules and
regulations, and that all fund liquidations shall be in accordance with the provisions of
COA Circulars No. 2007-001 and 2012-001.
Records disclosed that the Province granted and released funds to Tagdo Cultured
Mushroom Producers intended to enhance the mushroom production to accommodate the
demand of the customers in Camiguin taken from the funds downloaded from DOLE, as
detailed hereunder:
36
6. SP Resolution No. 51
series of 2015 granting
authority to Hon. Jurdin
Jesus M. Romualdo to
enter into MOA with
DOLE;
7. Project Proposal with
supporting documents.
Recommendation
Management Comments
The Province called a meeting with the chairman of the Association of Tagdo
Cultured Mushroom Producers, Ms. Marites Villagracia, last February 8, 2019. During
the meeting, she manifested that the project was already completed and inspected by the
DOLE Camiguin and all the documents pertaining to utilization of the funds were
submitted to DOLE. She promised to retrieve the sad report and hand it to the Province.
4. The recorded amount of the Road Network account as at year-end under the
General Fund totaling P218,604,477.03, could not be ascertained due to the
failure of the Provincial Government to keep and maintain a Local Road
Inventory and Road Map, and a Report on the Physical Count of the Road
Network System, and reconcile the same with the Registry of Public
Infrastructures, as required under COA Circular No. 2015-008 dated
November 25, 2015, thus, affecting the fair presentation of the account in the
financial statements.
37
The Manual on the New Government Accounting System for LGUs provides that
completed public infrastructures which include roads are recorded in the Registry of
Public Infrastructure and disclosed in the Notes to Financial Statements and are not
charged with any depreciation. But with the adoption of PPSAS and issuance of COA
Circular No. 2015-008 dated November 25, 2015, infrastructure assets which include
road networks shall be taken up as Property, Plant and Equipment (PPE). The annual
consumption of their service potential and loss of value through depreciation and
impairment shall also be recognized.
2. Public Infrastructures include among other the Road Network System. This may
be composed of: (a) Road Lot; (b) Road Pavement; (c) Drainage and Slop
Protection Structures; and (d) Other Miscellaneous Structures.
4. Initial cost for road networks shall include costs initially incurred in acquiring
the asset and other cost items necessary to bring the asset into use.
5. Regular maintenance necessary for the upkeep of the road network system such
as re-gravelling, asphalt overlay, patching, etc., shall be recognized as repairs
and maintenance.
6. An item of the road network system which qualifies for recognition as an asset
shall be measured at its cost. In case a road network component has no available
cost, the depreciated replacement cost shall be used. Depreciated replacement
cost is the present value of the remaining service potential of an asset. The
replacement cost of an asset is the cost to replace the asset’s gross service
potential depreciated to reflect the asset in its used condition.
7. The LGU should conduct an inventory of the local roads under its
jurisdiction, and reconcile the list of inventory per local road inventory report
and road map with those recorded in the Registry of Public Infrastructure.
8. Segregate the cost of each component of the local roads and compute
separately its depreciation taking into consideration the initial cost and useful
life.
38
The transitory provisions of the above Circular provides that the complete
recognition of the account Local Road Network in the books of accounts shall be made
within the period of four (4) years, at the following targets:
Records showed that the Provincial Accounting Office (PACCO) recognized all
(100%) of the road projects previously recorded in the Registry of Public Infrastructure
as of December 31, 2016 totalling P124,860,667.77 as Property, Plant and Equipment
(PPE),in compliance with the requirement of the above-cited COA Circular, as per the
following Journal Entry Vouchers (JEVs):
Further verification also showed that the subsidiary records for the Road
Networks account were incomplete, as the Local Road Network Ledger Card did not
contain the complete description of each project under the said account. No detailed
description such as: (1) Type of Road, whether PCCP/Asphalt/or Gravel; (2) Location;
(3) Length; (4) Width; and (5) Thickness, for pavement. Also, no breakdown of the
components of the road network system was provided, such as: (a) Road Lot; (b)
Pavement; (c) Drainage and Slope Protection Structures; and (d) Other Miscellaneous
Structures.
Without of the required conduct of inventory of the local road networks and its
reconciliation with the registry and the absence of complete description and cost
segregation of the road components of each of the local roads may result to inaccurate
financial data, hence affecting the correct valuation of the Road Network account as at
year-end.
Recommendations
a. Require the Provincial General Services Officer (PGSO) to render at the end
of each accounting period a Report on Local Road Network of the Province,
39
and keep a complete Local Road Network Property Card for all roads and its
components;
b. Require the Inventory Committee to prepare and submit the Report on the
Physical Count of the Road Network System following the required format
prescribed in COA Circular No. 2015-008;
c. Require the Provincial Engineer to assess and evaluate the projects recorded
in the Road Network account and provide the Provincial Accountant and the
PGSO a complete detailed description and costs segregation of the road
components indicating specific measurements of surface type, maintenance
costs, initial costs incurred or valuation, date of completion, location, and
other necessary data; and
d. Require the Provincial Accountant and the PGSO to reconcile its Road
Network records in order to present an accurate, reliable and correct valuation
of the Road Network account.
Management Comments
Liabilities
Section 112 of P.D. No. 1445, or the State Audit Code of the Philippines,
provides that each government agency shall record its financial transactions and
operations conformably with generally accepted accounting principles and in accordance
with pertinent laws and regulations.
40
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, income and expenses set out in PPSAS. The
application of PPSAS, with additional disclosures when necessary, is presumed to result
in financial statements that achieve a fair presentation.
The Due to NGAs account in the financial statements represent the amounts
received by the Provincial Government from various national government agencies. The
account is used to record the receipt of funds for delivery of goods/services as authorized
by law, fund transfers from NGAs for implementation of specific programs or projects
and other inter-agency transactions.
The Due to NGAs account as of December 31, 2018 reported a total amount of
P125,828,668.49. Verification of its subsidiary ledger (SL) disclosed the that twenty-four
(24) accounts totaling P4,002,055.95 under the Trust Fund were not moving for more
than twelve (12) years and were already existing as beginning balances on August 2006
when the Province first implemented the eNGAS. No transactions were noted since then.
[See Annex A].
The presence of long outstanding payable accounts under the Due to NGAs account
affected the fair presentation of the financial statements as they are long overdue for
liquidation.
Recommendations
a. Locate the MOA/Trust Agreements with the source agencies and review the
terms and conditions corresponding to the funds received and determine if the
specific programs or projects were already implemented, goods/services were
delivered, liquidation of funds were already submitted and received by the
source agencies, and liabilities were already settled for proper adjustments in
the books of accounts. Further, return to the source agency or remit to the
Bureau of Treasury any unused or unexpended balance if so stipulated in the
MOA/Trust Agreement;
41
Payable account during the conversion of account balances in view of the
implementation of the enhanced eNGAS/eBudgetVersion 2.0, thereby
affecting the fair presentation of the financial statements.
Section 113 of the Presidential Decree No. 1445 provides that “the chart of
accounts for government agencies shall be prescribed by the Commission of Audit and
shall be so designed as to permit agency heads to review their activities according to
selected areas of responsibility; x xx provide for a wider range of analytical information
designed for use in management audit or legislative review x xx”.
In connection to the foregoing, COA Circular No. 2015-009 prescribes the use of
the Revised Chart of Accounts for Local Government Units (RCALGU) in recording and
reporting the financial transactions of LGUs while COA Circular No. 2016-004 provides
“a uniform instruction in the implementation of the Chart of Accounts x xx”.Annex A of
the latter provides the Matrix on the Conversion of Accounts, including the conversion of
the following accounts:
Comparative review of the consolidated Trial Balances as of August 31, 2018 and
September 1, 2018disclosed that the Bail Bonds Payable account was erroneously
omitted in the above JEVs. Verification revealed that the same was recorded under the
Guaranty/Security Deposits Payable. The accounts were presented in the Trial Balances
as follows:
Balance, Balance,
Aug 31, 2018 Sept 1, 2018
ALL FUNDS
Guaranty/Security Deposits Payable P 8,615,187.07 P 10,001,560.08
Bail Bonds Payable 1,386,373.01 0.00
TOTAL P10,001,560.08 P 10,001,560.08
42
The Schedules of Guaranty/Security Deposits Payable per fund as of September 1,
2018 are annexed to this memorandum. (Please see Appendix 5)
Moreover, the accounting records show that the transactions pertaining to the
omitted liability account were subsequently recorded under the Guaranty/Security
Deposits Payable.
Recommendations
b. Ensure faithful adherence to the use of the RCALGU to achieve fair presentation
of the financial statements.
Special Accounts
7. Special Accounts in the General Fund for the operation of Hospitals and
other Economic Enterprises including Development Projects funded from the
share of the LGU in the IRA were not maintained and the related financial
statements were not separately prepared, contrary to Section 313 of R.A. No.
7160 and Sections 105 to 110 of NGAS Manual of LGUs Volume I, thus,
depriving the users the information that could have been used for monitoring
and decision-making.
Section 313 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, provides that Local Government Units shall maintain special
accounts in the general fund for the following:
(b) Loans, interests, bond issues, and other contributions for specific purposes;
and
(c) Development projects funded from the share of the local government unit
concerned in the internal revenue allotment and such other special accounts
which may be created by law or ordinance. Receipts, transfers, and
expenditures involving the foregoing special accounts shall be properly taken
up thereunder. Profits or income derived from the operation of public utilities
and other economic enterprises, after deduction for the cost of improvement,
43
repair and other related expenses of the public utility or economic enterprise
concerned, shall first be applied for the return of the advances or loans made
therefor. Any excess shall form part of the general fund of the local
government unit concerned.
Section 105 of NGAS Manual of LGUs Volume I also provides that Local
government units shall maintain special accounts in the General Fund for public utilities
and other economic enterprises, loans, interests, bond issues, and other contributions for
specific purposes; and development projects funded from the share of the local
government concerned from the internal revenue collections and development of national
wealth and such other special accounts which may be created by law or ordinance.
Accounting procedures for the operation of the special accounts are adopted in
order to:
44
SPECIAL ACCOUNT SUB-CODE
Cemetery 17
20% Development Fund 18
80% Share from Energy Sources 19
Share from Development of National Wealth 20
Loans 21
Interests 22
Bond Issues 23
Profits or income derived from the operation of public utilities and other
economic enterprises, after deduction of the cost of improvement, repair and other related
expenses of the public utility or economic enterprises concerned, shall first be applied for
the return of the advances or loans made therefor, any excess shall form part of the
general fund of the local government unit concerned.
At the end of the year, post-closing trial balance shall be prepared for each special
account. Also, the following financial statements shall be prepared:
These reports shall form part of the schedules of the General Fund trial balance.
The purpose of which is to provide information useful for decision making, and to
demonstrate the accountability of the entity for the resources entrusted to it by:
o Providing information about how the entity financed its activities and met
its cash requirements;
45
Currently, the Province of Camiguin has been operating two (2) hospitals,
namely: The Camiguin General Hospital in Mambajao and the Catarman District
Hospital in the Municipality of Catarman. As of September 30, 2018, revenue from
Hospital Fees totalled P12,294,988.65. Hospital Fees rank the second highest source of
revenue for the Province.
Verification of accounting records and prior years’ financial reports disclosed that
the financial statements, with regards to the operation of hospitals, economic enterprises,
and development projects funded from LGU share in IRA (20% Development Fund) have
not been prepared and provided. Subsidiary ledgers for Hospital Fees per hospital and
financial information such as assets, liabilities and expenses incurred could not be readily
determined.
Further, sub-codes for Hospital Fees were not provided to account for the actual
or specific medical fees or services rendered. This information would have facilitated the
assessment on the correctness and reasonableness of fees being collected.
The absence of the financial statements deprived users the access of vital financial
information that is valuable for decision making and effective monitoring to ensure
efficient and sustainable operation of the Province’s hospitals. The said financial
information would also serve as basis for management to identify areas of improvement
in the services rendered.
Recommendation
Management Comments
The Financial Statements of 20% Development Fund was not regularly prepared
mainly because the old eNGAS installed in the Provincial Accounting Office has no
feature to create special accounts in the General Fund. However, this is now possible with
the new version of eNGAS installed last September 2018 in the Office of the Provincial
Accountant which is equipped with a new feature that can create various special accounts
46
in the General Fund. In fact, the Provincial Accounting Office already made an
adjustment to separate the 20% Development Fund transactions from General Fund.
For the creation of special accounts for CGH & CDH, as of this time, this is not
possible considering that it has no ordinance yet from the Legislative branch to create the
two hospitals as an economic enterprise. However, our Lady Governor endorses your
recommendation to the Finance Committee for further study and evaluation for possible
creation of Hospital Economic Enterprise.
COMPLIANCE AUDIT
8. Development Projects under the 20% LDF with a total cost of P39,285,400.00
remained unimplemented as of December 31, 2018, causing the funds to be
idle and unproductive and preventing the Local Government from achieving
timely delivery of basic services to intended beneficiaries.
Section 2 of Presidential Decree No. 1445 provides that 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.
DILG-DBM Joint Memorandum Circular No. 2017-1 dated February 22, 2017,
entitled “Updated Guidelines on the Appropriation and Utilization of the 20% of the
Annual Internal Revenue Allotment (IRA) for Development Projects” provides that all
development projects utilized shall contribute to the attainment of desirable socio-
economic development and environment management outcomes of the LGU, and shall
partake the nature of investment or capital expenditures.
47
3. Concreting of Owakan-Luwan Road (Phase I) 5,000,000.00 Unimplemented
4. Construction of Owakan-Luwan Road (Phase II) 2,000,000.00 Unimplemented
5. Construction of Alangilan-Butay Road 3,000,000.00 Unimplemented
6. Construction of Sandayong-Lawan Road 1,000,000.00 Unimplemented
7. Equity of the Province to various FMR Projects 4,000,000.00 Realligned-SB3
8. Construction of Transport Terminal (Tricycle, 3,000,000.00 Unimplemented
Jeepney, Motorcycle or Habalhabal
9. Construction of Cell 2 1,300,000.00 Unimplemented
10. Improvement/Completion of Hospital
Facilities: 50,000.00 Unimplemented
- Completion of Laundry House 50,000.00 Unimplemented
- Rehabilitation of Waste Disposal Area 100,000.00 Unimplemented
- Construction of OPD Toilet for PWD 200,000.00 Unimplemented
- Relocations of Dental Room/Clinic 100,000.00 Unimplemented
- Construction of DOTS Clinic 50,000.00 Unimplemented
- Rehabilitation of Nurses’s Station 50,000.00 Unimplemented
- Rehabilitation of Drainage System
2018 11. Public Health Development: 620,400.00 Unimplemented
- Medical Equipment for Inter Local Health
Zone
12. Rehabilitation of FITS Center/Multi-Purpose 1,000,000.00 Unimplemented
Building
13. Provincial Economic Enterprise Infra Support 2,000,000.00 Unimplemented
Facilities (Business/Commercial Center)
14. Provincial Economic Enhancement Program
- Completion/Improvement of PEED Office 1,000,000.00 Unimplemented
- Purchase of 1 unit latest model Photocopier 300,000.00 Unimplemented
15. Tourism Development and Infrastructure:
- Rehabilitation of Historical Sites 1,700,000.00 Unimplemented
- Photo Gallery 400,000.00 Unimplemented
- Improvement of Tourism Infrastructure 900,000.00 Unimplemented
Projects
16. Camiguin Solid Waste, Sanitary Landfill
Management:
- Maintenance/Operation of Sanitary Landfill 1,700,000.00 Realigned-
- Supplies and Materials 130,000.00 Construction of
- Purchase of 1 unit 6-wheeler Dumptruck 1,600,000.00 Cell 2
17. Counterpart/Support to NIA Irrigation Project 2,000,000.00 Unimplemented
18. Multi-Sectoral Environmental Protection
Program:
- Surveillance Patrol Inputs/Protective Gears 500,000.00 Unimplemented
& Accessories/Agriculture and Marine
Equipment
- Repair of Patrol 215,000.00 Unimplemented
Boats/Accessories/Agriculture and Marine
Equipment
TOTAL UNIMPLEMENTED PROJECTS P39,285,400.00
AND PROGRAMS ===========
48
Delay in the implementation of the above programs and projects deprived the
intended beneficiaries of the benefits due them, hence, contributed to the failure of the
local government in achieving timely delivery of desirable social, economic and
environmental outcomes as envisioned.
Recommendation
Procurement
Section 114 of COA Circular No. 92-386 dated October 20, 1992, provides that
purchases made by the local government units must be inspected and verified by their
authorized inspector for conformity with specifications in the Purchase Order.
Inspection of deliveries was conducted by the audit team on July 2, 2018 at the
Camiguin General Hospital, Mambajao, Camiguin as shown in the following summary:
214-C June 18, June 18, 15 C.D. June 28, JB Pharma & DR 4370 Partially
2018 2018 2018 Trade Center delivered
and inspected
based on PO and
DR.
297-B June 18, June 18, 15 C.D. June 28, JB Pharma & DR 4373 Fully delivered
49
2018 2018 2018 Trade Center and inspected
based on PO and
DR.
164-B June 18, June 18, 15 C.D. June 29 JB Pharma & DR 4372 Fully delivered
2018 2018 and July Trade Center and inspected
2, 2018 based on DR
only.
164-A June 20, June 22, 15 C.D. June 29, Phil Sales Fully delivered
2018 2018 2018 Pharmawealth Invoice and inspected
Inc. (SI) 27579 based on SI only
168-A June 20, June 22, 15 C.D. June 29, Phil SI 27581 Fully delivered
2018 2018 2018 Pharmawealth and inspected
Inc. based on SI
only.
297-A June 20, June 22, 15 C.D. June 29, Phil SI 27582 Partially
2018 2018 2018 Pharmawealth delivered and
Inc. inspected based
on SI only
214-A June 20, June 22, 15 C.D. June 29, Phil SI 27578 Partially
2018 2018 2018 Pharmawealth delivered and
Inc. inspected based
on SI only.
Note: The matching of the delivered items with the items specified in Purchase Orders 164-B, 164-A, 168-
A, 297-A, and 214-A was performed after pulling out the P.Os. from the office records.
Based on the above inspection, the following were noted by the audit team:
P.O. 168-B (A) Items delivered not of the same (1) Ranitidine (Ranitac) delivered instead of Ranitidine
brand as specified in P.O. (Raniphil) or generic Ranitidine as specified in the P.O.
However, supplier’s DR indicated Ranitidine
(Raniphil).
P.O. 214-C (B) Partial delivery Pending delivery of 33 bottles of D5 Water 500ml
(C) Items delivered not of the same (1) Dexamethazone (Mohsidex) delivered instead of
brand as specified in P.O. Dexamehazone (Ondex) as specified in the P.O.
However, supplier’s DR indicated Dexamethazone
(Ondex).
50
P.O. 214-A (E) Partial delivery Pending deliveries of the ff:
(1) 30 ampules of Atropine sulfate (Atropan)
(2) 50 bottles of Mannitol (Renimax)
Based on inquiry with the Pharmacist, Ms. Lalaine Mabolo,it was disclosed that
they allow and accept deliveries of items which are not of the same brand specified in the
Purchase Orders as long as the brands are with generic equivalent.
Recommendation:
Return the items that do not conform with the PO and require the supplier to
replace the same.
Management Comments
We confirmed that our authorized inspector in the person of Ms. Maria Isabel A.
Flores has duly inspected and verified the delivered goods with specifications in the P.O.
However, it did come to the mind of the former to question the irregularity of some
delivered drugs as to specs, i.e. brand name does not coincide for reason that the end user
represented by Ms. Lalane Mabolo stood no question on it;
The aforementioned medications are not actually first class quality-brand drugs,
however during the Post-qualification process the end user identified them as somehow
the better brand-name with a plus factor which has the lowest responsive bid among
bidders. Hence, Ms. Mabolo accepted the delivered drugs even if they did not conformed
to specs of P.O. for reason that said drugs are the counterpart-brand names.
JB Pharma and Trade Center certified that the price of the counterpart brand drugs
at present time is the same. (Please see attached letter of Mr. Jesse Aumada of JB Pharma
& Trade Center with supporting documents of Certificate of Product Registration with
FDA Philippines).
51
The end-user is consciously aware in the event we return the delivered drugs and
require the winning supplier to deliver the brand drugs it would take more time of waiting.
Thus, CGH would suffer more. In fact, CGH pharmacy has waited since January 2018 up
to the time of deliveries (June 28, 2018) until the time the Bidding Process is
consummated. These medications are badly needed in the pharmacy. Our patients are
deprived of lack of drugs.
It is believed that the end user cannot blame solely the irregularity of delivery of
winning bidders for reason that LGU-Camiguin thru BAC Office encountered delays in
making the P.0. Pharmaceutical Suppliers or Distributors usually have to observe the 2-
month validity and expiry date of branded drugs least they may encounter stocks-drain or
increase of price.
Based on the foregoing reasons, it is hoped that the COA Audit Team may
reconsider our inconsistencies in the observation of COA Circular No. 92-386, sec. 114.
However we attest that in no instance the Local Government Unit has not exercised its
rights to be always at the advantage side over and above the suppliers. We take note it is
the first time to happen in delivery of medications, the specifications did not conform with
the P.O. However, we would like to assure you that this irregularity will not be tolerated in
ensuring procurements.
Section 18 of the Revised Implementing Rules and Regulations (IRR) of R.A. No.
9184 provides that specifications for the procurement of goods shall be based on relevant
characteristics and/or performance requirements. Reference to brand names shall not be
allowed except for items or parts that are compatible with the existing fleet or equipment
of the same make and brand, and to maintain the performance, functionality and useful life
of the equipment.
52
Imprvt of purchase of a total station
Mahayahay- (surveying instrument).
Talimonos-
Minsua Rd
811169 PACC Philippine Payment of 1 250,000.00 KALSADA Procurement documents
dated O 410 Duplicator's unit FUND CY referred to the model name
6/6/18 Inc multifunction 2016 - MP C2004exSP of the
colour copier Const/Impvt Gestetnerbrand for the
MP of purchase of a multifunction
C2004exSP Binunsaran - colour copier.
Campana
Road
Total 622,146.4
4
Moreover, the items procured did not form part of an existing fleet or equipment
of the same make and brand nor used to maintain the performance, functionality, and
useful life of the equipment.
Specifying the brand names effected the immediate and absolute exclusion of
other suppliers of the above items who may have the same or better specifications but
lower prices and of different brands.
The failure of the Bids and Awards Committee (BAC) to check and verify the
procurement documents and the officials concerned to comply with the provisions of
Section 18 of RA 9184 is a violation of the law itself hence the procurement of the
above-mentioned were considered as irregular expenditures, and will be disallowed in
audit.
Recommendations
1. Instruct BAC upon receipt of the to check and verify the Purchase Requests,
Requests for Quotation, and Abstracts of Quotation shall check and verify
whether the items requested specify or with reference to brand names. If so,
return the same to the office concerned for correction and modification; and
2. Instruct BAC and the concerned officials to strictly comply with Section 18 of
the Revised IR of the R.A. 9184 particularly on the prohibition of reference to
brand names to ensure a more competitive bidding and that the prices and
quality of items availed of are the most advantageous to the government.
Management Comments
This has reference with your Audit Observation Memorandum (AOM), bearing
AOM No. 2018-001-401 (18) dated October 26,2 018 regarding the Procurement of
various goods amounting to P622,146.44 made with reference to brand names contrary to
Section 18 of the Revised IRR of the Republic Act No. 9184 (Government Procurement
Reform Act).
53
We respect the observation of your good office and admit our deficiencies/errors
committed concerning the procurements you cited in your AOM. Truly, we are not
familiar of the technical specifications of the units/items, thus we verified the matter to
the end user. Per verification made, the end user said it has no intention to put the brands
but only the specifications of the units/items unknowing that the models, which were
included in the specifications will point out and lead to a brand.
We regret this much and we seek the indulgence of your office to consider the
imperfection as humans. Rest assured that henceforth, we will strictly adhere to the
provision of the above-cited Memorandum.
11. Warranty Security against structural defects and structural failures for the
completed projects were not enforced as required under the 2016 Revised
IRR of R.A. No. 9184, thus, the interest of the local government unit is not
fully protected in case the contractors do not perform their responsibilities in
accordance with their approved contract for infrastructure projects
Section 62 (b) of R.A. No. 9184 provides that for the procurement of
infrastructure projects, the contractor shall assume full responsibility for the contract
work from the time project construction commenced up to a reasonable period as defined
in the IRR taking into consideration the scale and coverage of the project from its final
acceptance by the government and shall be held responsible for any damage or
construction of works except those occasioned by force majeure. The contractor shall be
fully responsible for the safety, protection, security, and convenience of his personnel,
third parties, and the public at large, as well as the works, equipment, installation and the
like to be affected by his construction work and shall be required to put up a warranty
security in the form of cash, bank guarantee, letter of credit, Government Service
Insurance System bond, or callable surety bond.
Section 62.2 of the 2016 Revised IRR of R.A. No. 9184 provides that for the
procurement of Infrastructure Projects, the following warranties shall be made:
62.2.2. One (1) year from project completion up to final acceptance or the
defects liability period.
54
62.2.2.1. The contractor shall undertake the repair works, at his own
expense, of any damage to the infrastructure on account of the use of
materials of inferior quality, within ninety (90) days from the time
the HoPE has issued an order to undertake repair. In case of failure
or refusal to comply with this mandate, the Procuring Entity shall
undertake such repair works and shall be entitled to full
reimbursement of expenses incurred therein upon demand.
Section 62.2.3.3 further provides that to guarantee that the contractor shall
perform his responsibilities as prescribed in Section 62.2.3.1(a) of this IRR, it shall be
required to post a warranty security in accordance with the following schedule:
55
confirmed or authenticated by a Universal
or Commercial Bank, if issued by a foreign
bank.
Moreover, Section 9.1.1.4 of COA Circular No. 2012-001 dated June 14, 2012,
prescribing the revised guidelines and documentary requirements for common
government transactions, listed Warranty Security as one of the documentary
requirements for final payment of infrastructure projects.
During the year, the following projects were completed and payments for the final
billings were made as follows:
Actual
Amount of
Source of date of
Name of Projects Contractor Project Cost Final Date Paid
Fund Completio
Payment
n
UNDER CONTRACT WITH JEJOR’S CONSTRUCTION CORP.:
1. Const. of Camiguin 2017 20% Jejor’s 9,985,627.29 March 1, 1,851,091.43 3/2/2018
Sports Complex LDF Construction 2018
Swimming Pool and Corp.
Facilities (Phase-IV)
UNDER CONTRACT WITH SHEEN-SHEEN CONSTRUCTION:
2. Construction of TF-Perf. Sheen- 6,999,977.99 November 256,128.49 1/25/2018
Youth Welfare Home Challenge Sheen 8, 2017
Building Fund Const.
3. Construction of 2017 20% Sheen- 2,707,775.12 January 16, 246,955.59 5/24/2018
Dumaligpe-Lita- LDF Sheen 2018
Tampunay Road, Const.
Catarman
56
4. Construction of 2017 20% Sheen- 2,739,858.03 January 15, 1,048,179.82 5/24/2018
Bolos-Bacnit- LDF Sheen 2018
Bugang Road, Sagay Const.
5. Completion of 2017 20% Sheen- 590,707.07 November 560,852.91 2/6/2018
Bamboo Shared LDF Sheen 6, 2017
Service Facility, Const.
Mambajao
6. Concreting of Sitio 5% Sheen- 5,865,436.86 May 27, 2,562,681.56 9/4/2018
Minocol Road, LDRRMF Sheen 2018
Sagay, Camiguin Const.
7. Upgrading/ 2017 Sheen- 12,862,089.3 May 30, 584,610.43 9/13/2018
Concreting of Datag- CMGP Sheen 7 2018
Kanangkaan Road, Const.
Mambajao,
Camiguin
8. Upgrading/ 2017 20% Sheen- 1,938,437.99 March 8, 9,261.08 -
Concreting of Anito- LDF Sheen 2018
Maubog Road, Const.
Mambajao,
Camiguin
UNDER CONTRACT WITH JAPUZ-JANSOL ENTERPRISES:
9. Upgrading/ 2017 Japuz-Jansol 13,846,439.5 June 9, 8,965,569.63 10/11/2018
Concreting of San CMGP Enterprises 8 2018
Isidro-TaokTaok
Road, Mahinog,
Camiguin
UNDER CONTRACT WITH UKC BUILDERS INC.:
10. Const./Impv’t of 2015 GF UKC 2,765,174.61 June 6, 1,877,417.96 12/29/2017
Sabang Beach Builders Inc. 2016
Road, Catarman
11. Const./Impv’t of 2015 GF UKC 4,651,685.96 February 1,302,654.66 12/29/2017
Benoni Lagoon Builders Inc. 28, 2017
Circumferential
Road, Mahinog
12. Const./Impv’t of 2015 GF UKC 53,420,466.7 June 30, 35,355,820.80 12/29/2017
Centro Sagay- Builders Inc. 8 2017
Malingin Road,
Sagay
13. Const./Impv’t of 2015 GF UKC 7,397,687.36 August 19, 1,516,661.96 12/29/2017
Benoni-San Miguel Builders Inc. 2017
Road, Mahinog
14. Const./Impv’t of 2015 GF UKC 29,874,289.7 August 15, 25,491,737.24 12/29/2017
Agoho-Catubli- Builders Inc. 5 2017
Catibac Road,
Mambajao
15. Const./Impv’t of 2015 GF UKC 2,381,981.11 November 839,344.11 12/29/2017
Tupsan Pequeno- Builders Inc. 15, 2016
Mapa Road,
Mahinog
16. Const./Impv’t of 2015 GF UKC 3,294,206.63 May 1, 2,424,720.92 12/29/2017
Timayog-Lawigan Builders Inc. 2017
Road, Catarman
17. Const./Impv’t of 2015 GF UKC 34,170,338.7 May 15, 28,028,190.38 12/29/2017
Tangaro- Builders Inc. 5 2017
Guinsangol Road,
57
Catarman
18. Const./Impv’t of 2015 GF UKC 13,071,658.7 October 3,440,772.35 12/29/2017
Bonbon-Bolangon Builders Inc. 9 10, 2016
Road, Catarman
19. Const./Impv’t of 2015 GF UKC 26,085,690.0 January 10, 17,588,263.93 12/29/2017
Alga-Tibacjao- Builders Inc. 8 2017
Kilaa Road,
Catarman
20. Const./Impv’t of 2015 GF UKC 10,772,430.7 July 31, 10,772,430.70 12/29/2017
Magting-Cabaling Builders Inc. 0 2017
Road, Mambajao
21. Const./Impv’t of 2015 GF UKC 4,671,951.99 December 835,901.54 12/29/2017
Compol-Mainit Builders Inc. 10, 2016
Road, Catarman
22. Const./Impv’t of 2015 GF UKC 4,603,019.61 December 2,301,298.64 12/29/2017
Catibac-Lampuyao Builders Inc. 10, 2016
Road, Catarman
23. Const./Impv’t of 2015 GF UKC 7,979,501.68 May 1, 6,528,747.83 12/29/2017
Yumbing-Basiao Builders Inc. 2017
Road, Mambajao
24. Const./Impv’t of 2015 GF UKC 6,310,155.49 December 1,048,179.93 12/29/2017
Maac-Cabuan- Builders Inc. 15, 2016
Cantaan Road,
Guinsiliban
25. Const./Impv’t of 2015 GF UKC 4,746,572.28 January 17, 2,564,564.20 12/29/2017
Aguran-Subucan- Builders Inc. 2017
Cuna Road, Sagay
26. Const./Impv’t of 2015 GF UKC 19,666,136.8 December 12,332,638.94 8/8/2018
Bugang-Bacnit Builders Inc. 3 5, 2016
Road, Sagay
27. Const./Impv’t of 2015 GF UKC 9,053,326.60 November 1,680,016.10 8/8/2018
Centro Catarman- Builders Inc. 22, 2016
Manduao Road,
Catarman
28. Const./Impv’t of 2015 GF UKC 2,009,590.90 April 21, 410,620.02 8/8/2018
Centro Sagay- Builders Inc. 2016
Bacnit Road, Sagay
We commend the Management for its continuous efforts to improve the quality of
life of the constituents of the Province though timely accomplishments of the above-
mentioned projects.
58
In effect, the interest of the government is not fully protected in case of structural
defects and/or failure of the infrastructure projects.
Recommendation:
Management Comments
The Province currently follows the old practice of requiring surety bond instead of
warranty security from the contractors upon completion of the projects and after the
issuance of the certificate of final acceptance of the project. These documents are
requirements for withdrawal of their retention money. We are not fully aware of the
provision of section 62.2 of the revised IRR of RA9184 for procurement of infrastructure
projects with the warranty security requirement to guarantee the cost of the project if
there are structural defects and/or failure of the completed infrastructure projects.
With your observation at hand, the Provincial Engineer and the Provincial
Accountant are instructed that all on-going and completed infrastructure projects that
have not yet billed for final payment as of this writing will be required to post warranty
security in accordance of the abovementioned provision of law.
COA Circular No. 94-013 dated December 13, 1994 provides for the rules and
regulations in the grant, utilization and liquidation of funds transferred to implementing
agencies. As defined therein, “projects” to be implemented by the implementing agencies
refer to the undertaking, whether construction work, research or training program,
computer engagement or other authorized activities which an agency shall prosecute or
implement in favor or in behalf of another agency. Pertinent provisions of above circular
are the following:
Section 4.1 The Source Agency (SA) shall enter into an agreement with the
Implementing Agency (IA) for the undertaking by the latter of the
59
project of the former. The agreement shall provide for the
requirements for project implementation and reporting.
Section 4.5 A separate subsidiary record for each account shall be maintained
by the IA whether or not a separate bank account is opened.
Section 4.6 Within ten (10) days after the end each month/end of the agreed
period for the Project, the IA shall submit the Reports of Checks
Issued (RCI) and the Report of Disbursement (RD) to report the
utilization of the funds.
Section 4.7 The SA shall draw a Journal Voucher to take up the reports/
liquidation.
Section 4.9 The IA shall return to the SA any unused balance upon completion
of the Project.
Records disclosed that during the year, the Provincial Government transferred
funds to DepEd-Division of Camiguin covered by two (2) separate Disbursement
Vouchers under JEV Nos. 2018-07-000109 dated July 25, 2018 and 2018-11-000027
dated November 14, 2018, recorded as “Due from NGAs”. The funds transferred were
intended for procurement of various facilities and equipment, construction or
improvement works of entrance gates of identified schools and comfort rooms of the
Division Office, educational research, and for various authorized activities for sports
development as embodied in the 2018 Annual SEF Budget of the Province. Details of
which are herein provided.
60
- Other General Services 900.00
- Awards 160,000.00
- Other MOE 23,000.00
3. WORKBOOKS, LEARNING MODULES, INSTRUCTIONAL
MATERIALS
FOR OPEN HIGH SCHOOL PROGRAM 84,000.00
4. PROVISION FOR INTERNET CONNECTIVITY OF THE 100,000.00
DIVISION OFFICE
5. EDUCATIONAL RESEARCH
- Other Professional Fees 116,000.00
- Travelling Expenses 12,930.00
- Training Expenses 27,000.00
- Office Supplies and Materials 4,550.00
- Semi-Expendable Expenses 14,000.00
- Other Supplies and Materials 11,000.00
- Postage and Courier Services 4,000.00
CAPITAL OUTLAY:
1. Open High School Equipment 16,000.00
2. Construction/Improvement of Entrance Gate Perimeter Fence in
six (6)
Identified schools
- Mahinog Central School 50,000.00
- Kugita Integrated School 50,000.00
- Camiguin National High School 50,000.00
- Sagay Central School 50,000.00
3. Improvement/Construction of Comfort Rooms in Division
Office 400,000.00
4. Surplus (for Sports Materials and Equipment) 100,500.24
Sub-Total 2,084,280.24
GRAND TOTAL P2,834,980.24
Documents showed that the transfer was made as per request from the Office of
the Schools Division Superintendent addressed to the Honorable Governor of the
Province intended for various activities in the Division Office.
Recommendations:
We recommend that Management execute a memorandum of agreement with the
DepEd-Division of Camiguin covering the transfer of SEF funds in compliance with
COA Circular No. 94-013 dated December 13, 1994.
We also recommend that the Provincial Accountant demand the liquidation of the
funds transferred during the year amounting to P2,834,980.24 and further require the
DepEd-Division of Camiguin, as the Implementing Agency, to submit the required
61
documents to report the utilization of the funds transferred on a monthly basis, also in
compliance with the above COA Circular.
Management Comments
It has been a practice of the Province not to grant SEF fund transfer to DepEd if
the previous transfer of fund has not yet liquidated/submitted a utilization report duly
verified by the Division COA auditor. In CY2018, this policy was consistently
implemented. We appreciate your initiative and recommendation and we will definitely
implement it for CY2019 SEF transactions.
13. The Provincial Government thru the Local School Board has not allocated
funds from the 2018 Annual SEF Budget for the ECCD Program as required
under Section 7(b) of R.A. No. 10410 known as the Early Years Act of 2013
and DepEd-DBM-DILG Joint Circular No. 1, series of 2017, or the Revised
Guidelines on the Use of the Special Education Fund.
Republic Act. No. 10410 has been enacted to recognize the age from zero (0) to
eight (8) years as the first crucial stage of educational development of which the age from
zero (0) to four (4) years shall be the responsibility of the Early Childhood Care and
Development (ECCD) Council. The responsibility to help develop children in the
formative years between age five (5) to eight (8) years shall be with the Department of
Education (DepED).
The State shall institutionalize a National System for Early Childhood Care and
Development (ECCD) that is comprehensive, integrative and sustainable, that involves
multi-sectoral and interagency collaboration at the national and local levels among
government; among service providers, families and communities and among the public
and private sectors, nongovernment organizations; professional associations and
academic institutions. The System shall promote the inclusion of children with special
needs, provide for reasonable accommodation and accessible environments for children
with disabilities and advocate respect for cultural and linguistic diversity, including the
use of Filipino Sign Language as the visual language of the deaf community. It shall be
anchored on complementary strategies for ECCD that include service delivery for
children from age zero(0) to four (4) years, educating parents and caregivers, encouraging
the active involvement of parents and communities m ECCD programs, raising awareness
about the important efforts thatimprove the quality of life for young children and
families.
Section 7 (b) of RA No. 10410, otherwise known as the "Early Years Act of
2013", provides that Local Government Units shall include allocations from their Special
Education Fund (SEF)and Gender and Development Fund in addition to other local
funds to be utilized forthe ECCD Program.
62
the policies and guidelines on the use and purpose of the SEF. It was issued to ensure a
more strategic and efficient utilization of resources for priority programs and projects
which would complement, as well as reinforce, the budgeting priorities at the difference
levels of decision-making.
Section 4.1.7 of the above Joint Circular provides for the allowable expenses
chargeable against the SEF which include funding for the ECCD Program, particularly
for the following purposes:
4.1.7.1 Direct services related to the implementation of the ECCD program, such
as salaries/allowances of locally hired Child Development Teachers and/or
Day Care Workers, etc.;
4.1.7.4 Provision of facilities for the conduct of the ECCD Program; and
The allocation, however, for the above expenditure items shall be net of the
budgetary provision for the same or related items(s) in the budget for the DepEd
and the ECCD Council, as the SEF only complements and reinforces the budgeting
priorities at the different levels of decision-making.
Section 5.2 of the same Joint Circular further provides that the LSB in each
province, city, or municipality shall be responsible for the preparation and approval of the
annual budgetary requirements of the public schools based on the DepEd-approved
School Improvement Plant (SIP) and Division Education Development Plant (DEDP)in
the implementation of ECCD Program, kindergarten, elementary and secondary,
formal and non-formal education programs, chargeable to their respective SEFs.
Records disclosed that during the year, the Provincial Government thru the Local
School Board formulated and approved the AIP for CY 2018 of the SEF amounting to
P3,130,000.00 programmed for the following projects and activities:
63
Division Office
5. Educational Research 200,000.00 200,000.00
6. Construction/Improvement of Entrance 350,000.00 350,000.00
Gate and Perimeter Fence of 6
identified schools
7. Improvement/Construction of Comfort 400,000.00 400,000.00
Rooms in the Division Office
8. Speech Laboratory 25,000.00 175,000.00 200,000.00
TOTAL 1,979,000.00 1,151,000.00 3,130,000.00
Further, Supplemental Budget No. 1for the SEF for CY 2018 was also approved
providing for the amount ofP1,140,500.24 also programmed for the following projects
and activities:
Documents showed that no allocations were made from the SEF intended for the
implementation of ECCD Programs as required in the above rules and regulations.
Verification, however, of the 2018 Annual Budget of the General Fund revealed
that activities of the Province for the ECCD were incorporated in the social welfare
programs of the Social Welfare Department along with the activities for youth welfare,
elderly/PWD programs/ family and community welfare programs.
As a result of the failure to provide allocation for ECCD Program, the SEF
Budget was not able to fill the funding gap in the needs of all the public schools covered
by the Province, since the corollary budget allocation must be complementary to the
budget of the national programs.
Recommendation:
We recommend that Management thru the Local School Board include allocation
from SEF funds, in addition to other local funds to be utilized for the ECCD Program, in
compliance with R.A. No. 10410 known as the Early Years Act of 2013 and DepEd-
DBM-DILG Joint Circular No. 1, series of 2017, or the Revised Guidelines on the Use of
the Special Education Fund.
Management Comments
The undersigned forwarded your observation to the DepEd for their comment. On
the other hand the Provincial Budget Officer is instructed to set RA No. 10410 as one of
the conditions in the review of the SEF Annual and Supplemental Budget.
64
Local Disaster Risk and Reduction Management Fund (LDDRMF)
14. The unutilized amount after five (5) years of the LDRRMF
totalingP1,973,737.31previously transferred to the Special Trust Fund were
not reverted back to the General Fund to be made available for other social
services contrary to Section 21 of R.A. No. 10121 or the Philippine Disaster
Risk Reduction and Management Act and Section 5.1.13 of COA Circular
No. 2012-002 dated September 12, 2012.
Section 21 of R.A. No. 10121 or the Philippine Disaster Risk Reduction and
Management Actprovides that unexpended LDRRMF shall accrue to a special trust fund
solely for the purpose of supporting disaster risk reduction and management activities of
the LDRRMCs within the next five (5) years. Any such amount still not fully utilized
after five(5) years shall revert back to the general fund and will be available for other
social services to be identified by the local sanggunian.
Section 5.1.13 of COA Circular No. 2012-002 dated September 12, 2012 also
provides that the unutilized balance of the LDRRMF shall be available for use in the
disaster risk reduction and management activities as provided in the LDRRMFIP within
the next five years. Any unutilized amount after five years shall be reverted back to the
unappropriated surplus of the General Fund and shall be made available for the social
services after subsequent enactment by the local sanggunian.
Records showed that the Provincial Government transferred annually all the
unexpended/unobligated balance of the Quick Response Fund (QRF) and the DRRMF-
MOOE for the year to the Special Trust Fund under the account “Trust Liability-DRRM”
in the Trust Fund Books for the purpose of supporting DRRM activities within the next 5
years.
Verification, however, of the subsidiary ledger (SL) of the “Trust Liability-
DRRM” account disclosed that after the lapse of five (5) years, the unutilized LDRRMF
amount previously transferred to the Special Trust Fund for the years CY 2011 to CY
2013 totaling P4,160,998.12 were not reverted back to the General Fund, as summarized
hereunder:
Schedule of Trust Liabilities - DRRMF
As of December 31, 2018
Had the unutilized amount been reverted back to the unappropriated surplus of the
General Fund, the fund could have been made available for other social services to be
after subsequent enactment by the Sangguniang Panlalawigan.
65
Recommendation
We recommend that Management revert back to the General Fund the amount of
LDRRMF identified to be unutilized after 5 years in order to be made available for other
social services subject for enactment by the Sangguniang Panlalawigan pursuant to the
above cited rules and regulations.
(a) Provincial Disaster Risk Reduction and Management Fund Plan for CY 2018
included expenditures which are not related to the implementation of DRRM
Programs totaling P1,708,029.93.
Section 21 of Republic Act No. 10121, or the Philippine Disaster Risk Reduction
and Management Act states that not less than five percent (5%) of the estimated revenue
from regular sources shall be set aside as the LDRRMF to support disaster risk
management activities such as, but not limited to, pre-disaster preparedness programs
including training, purchasing of life-saving rescue equipment, supplies and medicines,
for post-disaster activities, and for the payment of premiums on calamity insurance.
Section 4.2 of COA Circular No. 2012-002 dated September 12, 2012 also
provides that the appropriated funds for LDRRM shall be used to support disaster risk
management activities, such as but not limited to pre-disaster preparedness activities,
post-disaster activities and other related activities including payment of premiums on
calamity insurance.
Further, Section 4.4 of the same Circular provides that other maintenance and
operating expenditures, and other capital outlay requirement of the LDRRMO or
BDRRMC in the implementation of DRRM programs shall be charged to the LDRRMF
subject to the provisions of JMC of NDRRMC-DBM-DILG No. 2013-1 and COA
Circular No. 2012-002.
66
Review of the LDRRM Work and Financial Plan for CY 2018 disclosed that the
projects and activities do not directly relate to DRRM programs:
Appropriated
Ref No. Programs/Projects/Activities
Amount
Preparedness Component
1.11 PDRRMC Operations Mgt.
- Supplies and Materials P438,029.00
- Repair/Maintenance of PDRRM Light Rescue
Vehicles and Communications Equipment 200,000.00
- Repair/Maintenance of BantayDagat Rescue Patrol 100,000.00
Boat 850,000.93
- Gasoline/Oil/Other Services
Prevention and Mitigation Component
2.1 Conduct of traffic law enforcement & purchase of TLE 120,000.00
Equipage
TOTAL P0029.93
In addition, review of the submitted Report on the Sources and Utilization of the
LDRRMF for the year ended December 31, 2018 revealed that the following
implemented programs, projects, and activities were not found in the LDRRM Plan for
CY 2018, contrary to Section 5.1.3 of the COA Circular No. 2012-002:
Section 5.1.3 of the COA Circular No. 2012-002 dated September 12, 2012,
states that:
(b) Prior year’s unexpended balances of the DRRMF which were transferred to the
Special Trust Fund were utilized for expenses totaling P2,079,43.45 despite its
non-inclusion in the LDRRMFIP of previous years.
67
Section 5.1.2 and 5.1.15 of the COA Circular No. 2012-002 dated September 12,
2012, states that:
Appropriated
Programs/Projects/Activities
Amount
Purchase of one unit Bulldozer P 17,000,000.00
Purchase of life saving Rescue and Communication Equipment 262,853.07
Purchase of DRRM Communication Equipment 500,000.00
Purchase of Generator Set 1,500,000.00
Multi-Sectoral Environmental Protection Program/Project 1,200,000.00
Community-Based Monitoring System Support Program 1,000,000.00
Concreting of Tacangon-Puntod Road 4,000,000.00
TOTAL P 25,462,853.07
68
The unexpended balances of the LDRRMF may be released and
utilized for new expenditure items upon the submission of a revised
AIP, as approved by the local sanggunian and the Local Chief
Executive (LCE) upon recommendation of the LDRRMC in
accordance with the approved LDRRMP.
Recommendations
We recommend that Management stop the practice of incorporating expenditure
programs in the LDRRMF Plan which are not related to the implementation of DRRM
Programs. Budgetary requirements for the maintenance and other operating expenses and
capital outlay of the Office of the PDRRMO should be sourced from the General Fund of
the Province pursuant to Section 4.3 of NDRRMC-DILG-DBM-CSC Joint Memorandum
Circular No. 2014-1 dated April 4, 2014.
Management Comments
16. Registration fees and other contributions totaling P408,000.00 paid by the
Provincial Government of Camiguin to League of Provinces of the
Philippines (LPP), Provincial Board Members League of the Philippines
(PMBLP), and Philippine Councilor’s League (PCL), for attendance to
conventions, conferences and other contributions were not issued with
government prescribed official receipts.
Section 68of Presidential Decree (PD) 1445 provides that no payment of any
nature shall be received by a collecting officer without immediately issuing an official
receipt in acknowledgement thereof. The receipt may be in a form of postage, internal
revenue or documentary stamps and the like, officially numbered receipts, subject to
proper custody, accountability and audit.
Department of Justice Opinion No. 41, series of 1995 dated May 5, 1995 has
ruled, referring to the query of one of the organized leagues and federations of local
elective officials, particularly on the issue on rates of seminar/registration fees to be
collected, that all leagues organized by elective officials are considered as government
institutions/organizations, being an association, federation, league or union created by
69
law or authority of law, whose members are either appointed or elected government
officials. Further, Supreme Court rulings in Bito-Onon vs. Fernandez, et al., G.R. No.
139813, dated January 31, 2001, and in National Liga n gmga Barangay, et al., vs.
Paredes, et al., G.R. No. 130775, dated September 27, 2004 adopted the above DOJ
Opinon. In this regard, Commission on Audit has issued Resolution No. 2011-014 dated
December 13, 2011, declaring all local government leagues of elective officials as
government organization and subject to the audit jurisdiction of the Commission on
Audit.
Our audit of the disbursements of the Provincial Government of Camiguin for the
Calendar Year 2018 disclosed that registration fees and other contributions totaling
P408,000.00 paid to League of Provinces of the Philippines (LPP), Provincial Board
Members League of the Philippines (PMBLP) and Philippine Councilor’s League (PCL),
for attendance to conventions, conferences and other contributions were not issued with
government prescribed official receipts.
Details of these registrations fees paid for attendance to seminars and conventions
of the Provincial Vice Governor and members of the Sangguniang Panlalawigan, as well
as other payments/contributions of the Provincial Governor which were issued with
customized official receipts are shown as follows:
League’s
Check No. Check Date Particulars Amount Official Receipt
No.
LBP#882485 Jan. 19, 2018 Payment for the production of LPP P 168,000.00 LPP Inc. O.R.
Calendar for CY2018 No. 2862
LBP#883635 Apr. 10, 2018 Registration Fee for Provincial 23,000.00 PBMLP Inc.
Board Members League of the O.R. No. 18986
Phils. (PBMLP) 28th National
Convention at Mandaue City,
Cebu on April 24-27, 2018
LBP#883636 Apr. 10, 2018 Registration Fee for Provincial 17,000.00 PBMLP Inc.
Board Members League of the O.R. No. 18987
Phils. (PBMLP) 28th National
Convention at Mandaue City,
Cebu on April 24-27, 2018
LBP#883637 Apr. 10, 2018 Registration Fee for Provincial 17,000.00 PBMLP Inc.
Board Members League of the O.R. No. 18991
Phils. (PBMLP) 28th National
Convention at Mandaue City,
Cebu on April 24-27, 2018
LBP#883638 Apr. 10, 2018 Registration Fee for Provincial 17,000.00 PBMLP Inc.
Board Members League of the O.R. No. 18990
Phils. (PBMLP) 28th National
Convention at Mandaue City,
Cebu on April 24-27, 2018
70
League’s
Check No. Check Date Particulars Amount Official Receipt
No.
LBP#883639 Apr. 10, 2018 Registration Fee for Provincial 17,000.00 PBMLP Inc.
Board Members League of the O.R. No. 18989
Phils. (PBMLP) 28th National
Convention at Mandaue City,
Cebu on April 24-27, 2018
LBP#883675 Apr. 11, 2018 Registration Fee for Provincial 17,000.00 PBMLP Inc.
Board Members League of the O.R. No. 18988
Phils. (PBMLP) 28th National
Convention at Mandaue City,
Cebu on April 24-27, 2018
LBP#883726 Apr. 13, 2018 Registration Fee for Provincial 17,000.00 PBMLP Inc.
Board Members League of the O.R. No. 18992
Phils. (PBMLP) 28th National
Convention at Mandaue City,
Cebu on April 24-27, 2018
LBP#884608 June 7, 2018 Financial Assistance to Philippine 115,000.00 PCL Local
Councilor’s League-Camiguin Chapter
Chapter for Medical Mission and O.R. No. 68866
other activities
TOTAL P 408,000.00
==========
Recommendation
We recommend that Management require all payments for registrations fees for
seminars, meetings and conventions, including other payments and contributions to
various leagues and federations of local elective officials be supported with government
prescribed official receipts or AF No. 51.
Management Comment
The undersigned indorsed your observation to the office of the Vice Provincial
Governor for their information and appropriate action. A letter reply dated March 6,
2019, duly signed by LPP Executive Director Sandra T. Paredes, addressed to Gov.
Romualdo, contained the following justifications raised why the LPP or the other leagues
are issuing BIR-registered receipts instead of the government prescribed official receipts:
o The LPP was neither created nor organized by any law. It has no charter or
organic law duly passed by congress. It is duly registered with the Securities
and Exchange Commission (SEC) as a non-stock and non-profit corporation;
o The funds raised by the LPP and other leagues do not go neither to the National
Treasury nor to local funds or to any government funds. The funds raised by
71
the leagues are private funds used to support or supplement its activities as a
venue or a forum to ventilate issues that affect its members;
o The LPP and other leagues exist and function by virtue of their respective
Constitution and By-Laws approved by their respective National Executive
Board (NEB), ratified by all its members, and submitted to SEC;
o The BIR-registered official receipts issued by LPP and other leagues have been
duly accepted by other government agencies, including COA in other regions
and other NGOs and private funding institutions.
Auditor’s Rejoinder
Further, the Supreme Court rulings in Bito-Onon vs. Fernandez, et al., G.R. No.
139813, dated January 31, 2001, and in National Liga ng mga Barangay, et al., vs.
Paredes, et al., G.R. No. 130775, dated September 27, 2004, adopted the DOJ Opinion
No. 41, series of 1995, dated May 5, 1995, which opined that the Liga ng mga Barangay
is a government organization, being an association, federation, league, or union created
by law or by authority of law, whose members are either appointed or elected
government officials. Furthermore, the Commission on Audit has resolved, thru COA
Resolution No. 2011-014 dated December 13, 2011, that the Leagues of the LGUs and
the Leagues and Federation of Local Elective Officials shall be subject to the audit
jurisdiction of the COA.
Thus, being a government organization, the LPP is required and mandated to issue
government prescribed official receipts, consistent with Section 68 of P.D. No. 1445,
which provides that no payment of any nature shall be received by a collecting officer
without immediately issuing an official receipt in acknowledgement thereof.
72
17. Net take home pay of some employees was far below the minimum net pay
required under the Section 48 of the Republic Act (RA) No 10964 or the
General Appropriations Act (GAA) of 2018, thus defeating the purpose of
maintaining sufficient amount for subsistence among the employees
concerned that affected the continuous efficiency on the delivery of basic
service.
In no case shall the foregoing deductions reduce the employee’s monthly net take
home pay to an amount lower than Five Thousand Pesos (P5,000).” [Emphasis
provided]
Review of payroll vouchers for November 2018 disclosed that 89 officers and
employees received net take home pay below five thousand pesos (P5,000.00) contrary to
the above-cited provision of the GAA.
It was noted that the Management permitted these officials and employees to
contract loans with the government and private lending institutions which contributed to
the reduction their net take home pay.
In effect, the employees may have less interest in their work in maintaining the
required efficiency in the delivery of basic services considering the less pay they received
at the end of each pay period, thus, defeating the purpose of maintaining sufficient amount
for subsistence among the employees concerned.
73
Refrain from signing loan applications if the mandated net take home pay of the
employee is below P5,000.
Ensure that the net take home pay of all employees does not fall below P5,000 by
strictly following the order of preference concerning authorized deductions provided for
under Section 48 of the General Provisions of the GAA.
Management Comment
The Province adopted the policy of maintaining employees net take home pay of
P3,000.00. Now that there was already a new regulation in the GAA, we will effect and
implement immediately the required P5,000.00 net take home pay of all Capitol
employees. Further, the Provincial Accountant is instructed to refrain from signing
employees' loan applications if the mandated net take home was not observed.
Infrastructure Projects
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.
Records showed that the Province has implemented various infrastructure projects
sourced from local funds and funds transferred from different National Government
Agencies (NGAs). Verification of the status report of government
projects/programs/activities as of September 30, 2018 disclosed that four (4) projects
were still on-going and its implementation were suspended due to various reasons. The
four projects are described below:
74
Date Physical
Source of Program Status/
Name of Projects Started Accomplishmen
Fund Amount Remarks
t
1. Rehab./Improvement Non-Office 2,500,000.00 11/16/2015 93.00% Suspended
of Road of CY2015
SitioBinunsaran,
Brgy. Poblacion,
Mambajao
2. Rehab./Concreting of Non-Office 3,000,000.00 3/7/2016 35.00% Suspended
Road of CY2016
SitioBinunsaran,
Brgy. Poblacion,
Mambajao
3. Construction of 20% LDF 2,000,000.00 11/6/2017 95.00% Suspended
Owakan-Luwan CY2017
Road
4. Development and DENR Fund 1,510,200.00 3/1/2018 73.00% Suspended
Improvement of
Tuasan&Binangawa
n Falls
The implementation of the project should have considered the site or right-of-way
acquisition plans during detailed engineering as stated in Annex A of the 2016 Revised
IRR of R.A. No. 9184.The project, currently, has a physical accomplishment of 95%.
The project is sourced from the DENR Fund and implemented by Administration.
It was started on March 1, 2018 with a target date of completion of 90 calendar days.
However, up to present, the project is still on-going with an actual physical
accomplishment of 73%, as per report submitted. Per information gathered, the
implementation is currently under suspension but no documents were furnished to the
audit team by the Provincial Engineering Office.
Further evaluation of the above projects, and as noted during the inspection
conducted, there were no signboards and/or billboards which contain the relevant detailed
information of the projects posted/displayed on the location.
Section 2.2.1 of COA Circular No. 2013-003 dated January 30, 2013, which
prescribes the Guidelines on Information and Publicity on Programs/Projects/Activities
(PPA) of Government Agencies provides that all government agencies, or the
implementing unit, office or division as the case may be, shall notify the public of their
PPA through posting of relevant detailed information on signboards, blackboards,
whiteboards, posters, tarpaulins, streamers, electronic boards or similar materials not
exceeding 3 feet by 2 feet, in conspicuous places within the agency premises, and in the
venue where the PPA is located or carried out. This requirement applies to all PPAs,
regardless of amount or source of funds.
Recommendations
76
We recommend that Management require the Provincial Engineer and/or the
Project In-charge to fast track the implementation of the above project so that the
provision of facilities for which the funds were intended could be afforded to the public.
Further, we recommend that prior to prosecution of projects, Management should first
settle the issue of road right-of-way problem so as not to affect its full implementation.
Management Comments
Telecommunications Services
77
serving its purpose of upgrading and improving telecommunications services
and providing dedicated internet access of the Provincial Government.
Section 2 of Presidential Decree No. 1445 provides that 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 project was envisioned to provide dedicated internet access for non-latency
sensitive internet applications at an efficient cost.
78
SP Resolution No. 67, series of 2014 Sept. 12, 2014
(Authority of Gov. JJ Romualdo to accept
the Proposal of the PLDT and to enter into
contract
Notice of Award April 20, 2015
Contract Agreement April 28, 2015
Notice to Proceed April 30, 2015
Acceptance and Submission of Turn-over August 1, 2016
Documents
Certification of SCS System Warranty August 10, 2016
Review of the documents disclosed that the Infra Component of the project has
already been paid as per details described below:
79
Ocular inspection on the facility by the Technical Services Office personnel of
COA Regional Office No. 10 revealed that all components of the project were installed
and the one (1) year internet connection are delivered and conformed to the agency
specification. However, the project was not functional as of to date. The project remained
idled and not maintained, thus a waste of government resources if not put into use. It
could have improved the telecommunications infrastructure of the Province and could
have provided fast and reliable internet service of both the Provincial Capitol and the
Camiguin General Hospital.
Per information from the Provincial Accountant, the facility remained idled and
not functional due to damaged UPS.
Recommendations:
We recommend that Management put into priority the utilization of the facility,
allocate budget for the purchase of the necessary equipment in order to serve the purpose
of the project.
Management Comments
Last year CY2018, the project remained unused due to defect of UPS caused by
fluctuation of electricity due to successive blackouts. With the assistance of PLDT
technical team the said UPS was repaired &restored to its good condition and they also
informed us that the said UPS have built in already with AVR; however, during the test it
was found out that one of the cable chord were missing/misplaced and without it the active
devices, attached to the server computer, could not perform to its 100% functionality.
PLDT assumed responsibility of the misplaced cable and assured the province for its
replacement and they promised to extend their technical assistance to make the iGate-Life-
lnternet Gateway Service and Structured Cabling System Project operational.
With regards to the maintenance of the said project, the Province already
appropriated last year CY2018 in the amount of P2,467,000.00 of which P165,713.72 was
spent and the balance of P2,301,286.28 was placed in the continuing appropriation
earmarked for the iGate connection and renewal of active devices software licenses.
OTHERS
(a) It shall be the duty of every employer, private or public, to set aside and
remit the contributions required under this Act in accordance with a
mechanism determined by the Board of Trustees;
(b) Every employer required to set aside and remit such contributions as
prescribed under this Act shall be liable for their payment, and nonpayment
shall further subject the employer to a penalty of 3% per month of the
amounts payable from the date the contributions fall due until paid.
Section 3(a), Rule VII of the IRR of R.A. No. 9679 further provides that all
employers shall remit to the Fund their contributions and the contributions of their
covered employees as well as the latter’s loan amortizations or payments to the Fund, as
provided for under Section 2 of this Rule, when applicable, within fifteen (15) days from
the date the same were collected unless another period is previously agreed upon between
the employer and the Fund, or within such periods as the Fund may prescribe otherwise.
(a) Xxx the employer shall deduct each month from the monthly salary or
compensation of each employee the contribution payable by him in
accordance with the schedule prescribed in the rules and regulations
implementing this Act;
(b) Each employer shall remit directly to the GSIS the employee’s and
employer’s contributions within the first ten (10) days of the calendar month
to which the contributions apply. Xxx
Review of the sampled payroll and the sampled remittances of contributions for
November 2018 revealed that the Provincial Government of Camiguin failed to timely
remit the contributions of the calendar month to which the contributions apply. In
addition, it was also found that there were remittances without withholding from the
salary of the covered employees, as shown below:
81
Aug. 92.49
Sept. CGH IPANAG, ALMA L. - - JEV-2018-11-002161 916914 179.20
Oct. 179.20
Sept. VILLADORES, JOEFREY - - 156.95
PGSO JEV-2018-11-002161 916914
Oct. B. 168.16
PSWD RAYOS, NYKOLSHA - - 304.68
JEV-2018-11-002161 916914
O MAE C
Xxx
Covered employees and employers shall contribute to the Fund based on the
monthly compensation of covered employees as follows:
Employees earning not more than ₱1,500.00 per month – one percent (1%);
Employees earning more than ₱1,500.00 per month – two percent (2%)
All employers – two percent (2%) of the monthly compensation of all covered
employees.
Review of the Province’s sampled payroll revealed that the monthly HDMF (Pag-
IBIG) contributions and remittances were computed at 2% of the basic salary of
employees which were in excess of the required employer’s/government share. It has also
been noted that each employee contributed also at 2% of the individual’s monthly basic
salary, as shown below:
Pag-IBIG contribution
Basic
Name Office Position As per Payroll As mandated
Salary
PS GS PS GS
SILVA, NANCY Admin HRMO IV 46,974.00 939.48 939.48 100.00 100.00
GRACE L
DEL BANDO, TITO PACCO PROVINCIAL 73,686.00 1,473.72 1,473.72 100.00 100.00
ANTHONY ACCOUNTANT
82
Under R.A. No. 9679, the maximum monthly compensation to be used as the
basis in computing the employer’s and employee’s share is only P5,000.00 and not the
current monthly basic salary of personnel.
Thus, it can be deduced from the above provision of law that the maximum
monthly contribution to be deducted from the employee and the employer’s share should
not exceed P100.00, which is 2% of the maximum limit of P5,000.00 provided by law, as
properly interpreted by the Commission on Audit under COA Decision No. 2013-160
dated October 10, 2013.
83
In effect, the Provincial Government incurred over remittance of HDMF (Pag-
IBIG) premium contributions of employer’s share, resulting to additional expenses. The
savings on such expenditures could have been used to fund other priority projects of the
Province. The over deduction from covered employees also affected the computation of
withholding tax on compensations.
Recommendations:
Management Comments
Un-remitted Premiums:
Name of Employee Remarks
Dichos, Michelle Late enrolled in the GSIS system due to lack of
membership requirements
Naman, Magnolia Late enrolled in the GSIS & PhilHealth system due to lack of
membership requirements
Maestrado, Jaime Late enrolled in the GSIS system due to lack of membership
requirements
Salvani, Lucile Late erolled in the PhilHealth system due to lack of membership
requirements
84
001533/1536 dtd Oct. 2018 and October
payroll as per JV No. 2018-11-001990 dtd
Nov. 2018
Villadores, Joefrey B. Pag-IBIG premiums was deducted from
DV 1st claim of salary as per JV No. 2018-
10-001852 dtd Oct. 2018 and October
payroll as per JV No. 2018-10-001545 dtd
Oct. 2018
21. Despite prior year’s recommendations, the GAD Plan and Budget (GPB)
included non-GAD related programs, projects and activities (PPAs)
amounting to ₱27,197,000.00, while the GAD Accomplishment Report (GAD
AR) included PPAs amounting to ₱3,894,108.64, not included in the DILG-
endorsed GPB, contrary to provisions of the PCW-DILG-DBM-NEDA Joint
Memorandum Circular (JMC) No. 2013-01, as amended by Joint
Memorandum Circular No. 2016-01, thus, defeating the purpose of
addressing gender issues towards gender equality and women’s
empowerment.
(a) Inclusion of non-GAD related PPAs amounting to ₱27,197,000.00 in the total GPB.
“In identifying GAD PPAs, LGU shall at all time give priority to those that will
address emerging and/or continuing issues and concerns on:
(a) Provision of basic services and facilities to protect and fulfill women’s human
rights, including their right to protection from all forms of violence;
(b) Women’s economic empowerment, including women’s participation in
economic governance;
(c) Participation in local governance and decision-making; and
(d) Other provisions of the MCW.”
“Guide in Completing the GPB Form for Provinces, Cities and Municipalities:
85
List under this column the priority gender issue identified through the LGU’s
review of its flagship or regular programs, analysis of sex-disaggregated data
or relevant information that surface the unequal situation of women and men.
xxx
xxx
7. The following expenses CAN NOT be charged to the GAD budget UNLESS
they are justified as clearly addressing a specific gender issue:
(a) Physical, mental and health fitness activities, including purchase of
supplies, materials, equipment and information dissemination materials;
(b) Social, rest and recreation activities; and
(c) Religious activities and implementation of cultural projects.”
Review of the GPB of the Province for 2018 revealed that the Provincial
Government of Camiguin set aside ₱57,424,810.00 or 11.29% of the total budget
amounting to ₱508,508,826.50. However, evaluation of the GPB revealed the following
PPAs that do not address specific issues related to Gender and Development last year are
still included this year among other additional non-GAD PPAs:
86
Approved
GAD Activity
Budget
Hospital Services and Development of Health Facilities
Purchase of office and medical equipments 200,000.00
Repair of hospital building, purchase of plumbing fixtures and
electrical supplies 100,000.00
Purchase of Solid Waste 150,000.00
Income Generating and Livelihood Projects
Conduct trainings/orientation; Production of quality planting
materials to support food security; Monitoring of livelihood projects. 35,000.00
Employment of women and men for additional income assign at
different agricultural projects; Support to Nutrition Program. 6,173,000.00
Aid to Individual Crises Situation
Provision of Emergency Assistance and other AICS Programs 1,950,000.00
One shot assistance 2,824,000.00
Priority Social Infra Support Project
Conduct consultation and information campaigns, participate
meetings in aid of legislation and provide support to urgent needs of
the constituents. 1,650,000.00
Physical Fitness and Sports Development
Conduct training, sports development and other related ball games
and leagues; Aid to various sports activities and competitions or 1,500,000.00
tournaments. 485,000.00
Kiddie Summer Escapade 737,000.00
1st Youth Summit
Improvement of Camiguin Sports Complex Fence and Grandstand 10,000,000.00
PWD ABILYMPICS 799,000.00
Healthy Lifestyle and Management of Health Risk
Executive check-up for employees ages 40 and above and for
employees below ages 40 with high risk factors. 264,000.00
Provision of health promotional logistics and supplies, and
Information Educational Campaign (IEC). 330,000.00
Total 27,197,000.00
(b) Inclusion of PPAs amounting to ₱3,894,108.64 in GAD AR that are not included in
the DILG-endorsed GPB.
87
Moreover, Item 2 of Section 4.1.C.7 of JMC 2016-01 provides that the LGUs
through their LCEs shall inform the concerned DILG Office in writing if there are
changes in the DILG endorsed GPB and/or if there is a need to implement additional
PPAs relevant to current gender issues or GAD related undertakings. The concerned
DILG Office, in turn, shall acknowledge receipt of the adjusted GPB and shall inform the
LGU if the GAD PPAs or activities in the adjusted GPB are in accordance with the JMC,
as amended.
Review of the GPB and GAD AR of the Province for CY 2018 revealed the
following PPAs not included in the DILG endorsed GPB:
Actual Cost
Objective/GAD activity
Expenditure
1 Sustained institutionalized health and emergency management system
from the barangay up to the hospital. / Coordination meeting. 487,000.00
2 Integrated health promotion and advocacy strategies in different health
programs. /Coordination meeting. 121,000.00
3 Provincial Plant Nursery Development and Plant Tissue Propagation:
Maintenance of two (2) nurseries and maintenance of 75,000 pieces of
plant materials. 1,412,966.99
4 To provide and deliver quality medical care to hospital patients
through improved health facilities. /Improvement of CDH facilities. 395,989.44
5 To provide and deliver quality medical care to hospital patients
through improved health facilities./2 Generator set 209,290.00
6 Health protection and prevention to improve the reproductive health
outcomes among children, youth & adolescent./Coordination
meeting/Family Planning 469,387.00
7 Healthy Lifestyle and management of health risk by reduced of
lifestyle diseases, institutionalization of health and Emergency
Management System from the barangay to the hospital and integration
of health promotion and advocacy strategies in different health
programs. /Coordination meeting, trainings and seminars. 798,475.21
Total 3,894,108.64
Recommendations
2. Explain in writing the inclusion of PPAs in GAD AR that are not previously
included in the DILG-endorsed GPB. If the same has been communicated
with the DILG, furnish COA copy of said communication;
88
3. Strictly observe the guidelines in GAD planning and budgeting that will
recognize the fundamental equality of women and men before the law and
institute an enabling environment at the local level that will ensure gender-
responsive governance; and
89
SUMMARY OF TOTAL SUSPENSIONS, DISALLOWANCES AND CHARGES
For calendar year 2018, we have issued two (2) Notices of Suspension, and four
(4) Notices of Disallowance as summarized below:
Notices of
Particular
Suspension Disallowance Charge
Summary of Audit Suspensions,
Disallowances and Charges as
of December 31, 2017* 929,147.83 2,228,816.09 0.00
Add: Issuances 26,990 3,498.00 0.00
Less: Settlement 133,776.83 282,200.00 0.00
Balance, December 31, 2018 820,863.00 1,950,114.09 0.00
*Note: The 2017 balance of Disallowances is adjusted to reinstate erroneously omitted ND amounting to
1,441,584.00 on appeal.
90
PART III
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
AAR 1. The Due We recommended that The Provincial Partially Partial
2017 from NGAs, Management require Accounting implemented liquidations/
Due from the Provincial Office is on the adjustments
GOCCs, Due Accounting Office to: process of were made to
from LGUs, ascertaining the Due from
Due from Other a. Prepare an aging source, date of NGOs/POs and
Funds and Due schedule of all the transaction of Due from Other
from individual accounts Due from NGAs, Funds accounts.
NGOs/POs composing the Due GOCCs, LGUs,
accounts under from NGAs, Due Other Funds & However, no
the Trust Fund from GOCCs, Due NGOs/POs adjustments
included long from LGUs, Due from accounts to were made to
outstanding Other Funds and Due facilitate the Due from
accounts from NGOs/POs aging NGAs, Due
amounting to at accounts and preparation. from GOCCs,
least determine if and Due from
P8,403,145 or settlement/collectabili We will send LGUs accounts.
98% of the total ty can still be again demand
as of December ascertained; letters to
31, 2017 individuals/entiti
affecting the b. Determine the es/
fair extent of agencies of the
presentation of implementation of the said accounts
the financial projects for which the reiterating
statements. funds were released to submission of
concerned their liquidation
beneficiaries and reports.
demand liquidation of
the funds;
has been
remitted and
implemented as
d. Revisit the MOA per Agency
entered into between Action Plan
the Provincial reported in AAR
Government of 2016.
Camiguin and the
NGOs/POs for the
specified mode of There’s a partial
liquidation for the liquidation of
funds released and Due from
implement the agreed NGOs/POs of
liquidation procedure Sangkalikasan
otherwise, require for Producer
the return of the funds Cooperative for
if the funds have not the sustainable
been used for the Coral reef eco-
intended purpose; system
management
project
(SCREMP) in the
amount of
P6,884,500.00 of
w/c 2,250,000.00
was already
booked as
liquidation. The
balance of
P4,634,500 was
already recorded
as per JEV No.
2017-12-001444
dated Dec. 01,
2017. The
residual
unliquidated
balance was still
pending up to
now awaiting
approval of the
e. Identify those revised work and
accounts which are financial plan
already aged 10 years from DENR-
and over and prepare PAWB
for the necessary
90
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
documents to support
the request for write-
off pursuant to COA A personnel shall
Circular No. 2016- be assigned to the
005 dated December task of retrieving
19, 2016, as old records, aged
warranted; and 10 years and over
to facilitate the
submission of
request for write-
f. Draw out the off pursuant to
necessary journal existing COA
entries to record the Circular.
remittance/liquidation
of funds that are due
from other funds and
other adjustments, and
furnish COA with the
JEV.
It is further
recommended that the
Provincial Accounting
Office conduct regular
monitoring of the
status of the individual
(subsidiary ledger)
accounts composing
the trial balance
(general ledger)
account.
AAR 2. The Loans We recommended that The Provincial Partially Ongoing
2017 Receivable- Management require Accounting implemented reconciliation of
Others under the Provincial Office & the records between
the Trust Fund Accounting Office to: Provincial PACCO and
amounting to Agriculture PAO.
P21,545,321 as a. Prepare an Office are now
of December aging schedule of all on the process of There are still
31, 2017 the individual reconciling their negative/
included records as to abnormal
accounts composing
negative balances of loans balances as of
balances the Loans receivable year-end.
amounting to Receivable-Others account and
P2,638,106 and account and determine its
non-moving determine if collectability as
accounts settlement/collectabili well as
91
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
c. Identify those
accounts which are
already aged 10 years
and over and prepare
for the necessary
documents to support
the request for write-
off pursuant to COA
Circular No. 2016-
005 dated December
19, 2016;
d. Provide
allowance for
impairment to reflect
the recoverable
amount of the loans
receivable; and
JEV shall be
drawn for the
proper
classification of
PPE accounts
based on the
validated PEO
c. Draw out the report
necessary journal
entries to reclassify Regular
the completed projects coordination with
and furnish COA with DepEd shall be
the JEV. done by PACCO
and PEO of the
provincial
government
We further whenever there
recommended that are infra projects
Management direct the implemented by
Provincial DepEd.
Engineering Office to
immediately
93
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
d. Designate a focal
person who would be
responsible in
monitoring the status
of project
implementation of
funds transferred from
source agencies, be it
an NGA, a GOCC or
an LGU; and
It is further
recommended that the
Provincial Accounting
Office conduct regular
monitoring of the
status of the individual
(subsidiary ledger)
95
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
accounts composing
the trial balance
(general ledger)
account.
AAR 5. The Due to We recommended that Partially There were no
2017 Officers and Management require implemented more negative
Employees, the Provincial balances under
Due to GOCCs, Accounting Office to: Due to Other
and Due to Funds.
Other Funds a. Close the Due to Continue in
accounts under Officers and retrieving the However, no
the Trust Fund Employees account source documents adjustments
as of December which involves for the GOCCs were made to
31, 2017 accounts of personnel old balances; Due Due to Officers
included long who are already to Officers and and Employees,
outstanding retired and/or employees and Due to
accounts deceased; account and The GOCCs
amounting to Transfer of Due accounts.
P78,209 b. Review the source to Other funds
affecting the transactions of the for the necessary
fair Due to GOCCs adjustments of
presentation of account and identify the accounts.
the financial the personnel whose
statements. salaries were deducted Subsidiary
with the subject GSIS Ledgers for these
contributions so that accounts should
subsequent remittance be regularly
to the GSIS will be updated.
appropriately
posted/reflected to the
paying GSIS member;
It is further
recommended that the
Provincial Accounting
Office conduct regular
monitoring of the
status of the individual
(subsidiary ledger)
accounts composing
the trial balance
(general ledger)
account.
AAR 6. The We recommended that Partially Adjustments
2017 Accounts Management require implemented were made to
Payable under the Provincial some negative
the Trust Fund Accounting Office to: balances. Non-
amounting to moving
P908,504 as of a. Prepare an aging Continue to accounts remain
December 31, schedule of all the retrieve the unadjusted.
2017 included individual accounts vouchers and
negative composing the other supporting
balances Accounts Payable documents to
amounting to account; facilitate the
P19,072 and preparation of
non-moving aging schedule.
accounts b. Contact the
amounting to suppliers to confirm Communicate
P392,859 thus, the amounts which the with identified
affecting the LGU is still liable to suppliers for
fair pay; confirmation of
presentation of their accounts
the account in c. In the absence of
the Financial any possible claims, Prepare a
Statement. determine which Statement of
accounts the purposes Accounts Payable
for which the funds after
were created were consideration of
already accomplished accounts which
and revert these no longer have
accounts payable to valid claimants.
the unappropriated
surplus of the general
fund pursuant to
Section 98 of
97
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
PD1445;
c. Prepare the
necessary journal
entries to record the
refund and/or
forfeiture of the bonds
payable and furnish
COA with the JEV.
It is also recommended
that the Provincial
Accountant enjoin all
the staff in the
Provincial Accounting
Office to exercise due
care in
identifying/selecting
99
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
the appropriate
subsidiary ledger
account to post
transactions to the
individual subsidiary
ledger.
It is further
recommended that the
Provincial Accounting
Office conduct regular
monitoring of the
status of the individual
(subsidiary ledger)
accounts composing
the trial balance
(general ledger)
account.
AAR 9. Verification We recommended that Partially Two (2)
2017 of cash Management: implemented accountable
accounts of the officers were
Provincial a. Allow only duly Strictly still not bonded
Government of bonded officers to implement the during the
Camiguin collect money for the policy for only conduct of cash
disclosed that: government or apply bonded officers examinations in
(1) Seven proper bonding of be 2018. Moreover,
accountable additional designated allowed/authorize a casual
officers were collecting officers d to collect employee, also
not bonded in pursuant to Treasury money for the not bonded, was
accordance Circular No. 02-2009; government. allowed to
with law; (2) perform
Collections/cas b. Increase the fidelity collecting
h advances of bond of accountable Require the functions.
eight officers whose increase of
accountable collections require a fidelity bond of
officers greater accountability; accountable
exceeded their officers
maximum commensurate to
accountability; their
and (3) Five c. Require accountability
accountable accountable officers
officers were to remit their Strict compliance
delayed in the collections daily to to daily
remittance of the Provincial remittance of
collections, Treasurer; and collections to the
contrary to Provincial
100
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
101
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
AAR 11. The We recommended that Fully Executive Order
2017 designation of the Provincial implemented 04-2018 was
the composition Governor: issued stating
of the Bids and the designation
Awards a. Reconstitute the Issue Executive of the
Committee is Bids and Awards Order for the Re composition of
not in Committee with the organization/Rec the Provincial
accordance Provincial Governor onstitution of BAC.
with the 2016 designating the Bids and Awards
Revised IRR of Chairperson and Vice- Committee
RA 9184. Chairperson; and
102
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
AAR 13. The Annual We recommended that Not AIP 2018
2017 Investment Management: implemented included
Plan of the expenditure
Provincial a. Submit written Submitted items not
Government of explanation/justificatio explanations chargeable
Camiguin for n on the inclusion of based on the against the 20%
CY 2017 programs, projects and Progress DF: supplies and
included activities amounting to Monitoring materials,
programs, P17,086,952 in the Report of Internal petroleum
projects and Annual Investment Audit Service products and
activities Plan that are not /Unit ( IAS/U) other admin
amounting to among the dated Oct. 18, expenses in the
P17,086,952 development projects 2017, and has operation of
that are not chargeable against the formed part of sanitary landfill,
among the 20% Development the Management animal/ostrich
development Fund otherwise, Comments in the breeding
projects realign and properly AAR 2017. centers, and
chargeable recognize the dairy
against the 20% disbursements under development
Development their appropriate project;
Fund; and class/nature; purchase of
disbursed admin office
P4,061,831 for b. Submit written equipment for
expenditure justification/explanatio PEED Office;
items which are n on the inappropriate training and
not allowed to charging of travelling
be charged disbursements expenses and
against said amounting to office supplies
Fund in P4,061,831 for under Youth
violation of expenditure items Welfare
DILG-DBM which are not allowed Program.
Joint to be charged against
Memorandum said Fund; and
Circular No.
2017-01 thus, c. Carefully examine
depriving the forthcoming
constituents of transactions to be
the benefits of charged against the
socio-economic 20% Development
development Fund before
and approving any
environmental disbursements, and
management strictly observe the
outcomes. guidelines and
regulations for the
utilization of the said
103
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
Fund pursuant to
DILG-DBM Joint
Memorandum
Circular No. 2017-1
to avoid sanctions.
AAR 14. The We recommended that Partially Non-reversion
2017 unexpended Management: implemented to the General
Local Disaster Fund of the
Risk Reduction a. Revisit the Reviewed the unexpended
and MOA/Trust DA program of DRRM-MOOE
Management Agreement with the works with LGU funds for CY
Fund Department of accomplishments 2011-2013.
(LDRRMF) of Agriculture, Region X and effected the Reiterated in
prior years have on the treatment of the refund of the AOM No. 2018-
not been fully unutilized funds balance for 024-101 .
utilized to transferred in CY remittance to DA
support disaster 2016; region X.
risk reduction
and Transferred the
management b. Request enactment unexpended
activities of the by balance of
Province within theSangguniangPanlal CY2011 &
the next five a-wigan for the CY2012 DRRM
years pursuant reversion of the Funds to the
to COA DRRM funds for CY General Fund
Circular No. 2011 and CY 2012 to through
2012-002. the unappropriated enactment of SP
surplus of the General resolution
Fund to be made
available for other
social services of the
Province pursuant to
COA Circular No.
2012-002;
journal entries to
correct the erroneous
entries made, and
furnish COA with the
JEV; and
governance.
AAR 20. The We recommended that Partially Technical
2017 Provincial Management: implemented evaluation
Government of reports of
Camiguin a. Conduct thorough Follow the completed
failed to planning of the conduct of a infrastructure
consider the programs, projects thorough projects for
appropriate and activities to be planning of PPAs 2018 revealed
timing/phasing implemented and/or to be that the
of related constructed to implemented, completion of
project mitigate unnecessary with special the
activities inconvenience to the consideration on Concreting/Impr
pursuant to public; the appropriate ovement of
Section 7.1 of timing/phasing of Centro
the 2016 b. Prepare a standard related activities, Catarman-
Revised IRR of checklist of work such as Manduao Road
RA 9184 thus, items for common and engineering was delayed by
delaying the recurring projects to design and 49 calendar days
completion of ensure that all the acquisition of with an 8%
seventeen (17) basic and necessary road right of way negative
road projects work items for site or location in slippage.
amounting to programs and projects order to
P236,211,924 to be implemented reduce/lower
causing undue and/or constructed are project costs in
inconvenience included; and all of our future
to the public infrastructure
from prolonged c. In the case of road projects
work Infrastructure
suspension due Projects, consider the
to road right-of- appropriate
way problem. timing/phasing of
related project
activities, such as,
engineering design
and acquisition of
right-of-way site or
location, to
reduce/lower project
costs pursuant to
Section 7.1 of the
2016 Revised IRR of
RA 9184.
AAR 21. Delayed We recommended that Fully Suspended
2017 completion of Management: implemented projects were
seven (5) road completed in
projects a. Conduct thorough IAS/U to 2018.
110
Status of Auditor’s
Management
Ref. Observation Recommendations Implement- Validation
Action
ation Result
115
PART IV
APPENDICES
PART IV - APPENDICES
2018 2017
ASSETS
Current Assets
Cash and Cash Equivalents
Cash Local Treasury 2,357,788 1,620,952
Petty Cash 107,072 33,525
Cash in Bank - Local Currency , Current Account 75,863,256 140,466,674
Cash in Bank - Foreign Currency, Current Account 7,379 7,379
Cash in Bank - Local Currency, Time Deposits 274,073,029 234,069,049
352,408,524 376,197,579
Investments
Guaranty Deposits 146,910 146,910
146,910 146,910
Receivables
Accounts Receivable 1,019,441 1,013,441
Due from National Government Agencies 2,178,415 1,508,869
Due from Government-Owned and/or Controlled
Corporations 310,467 310,467
Due from Local Government Units 3,666,102 3,495,286
Due from Other Funds 7,011,205 6,984,450
Advances for Payroll 6,382 52,640
Advances for Officers and Employees 139,614 1,249,937
Receivables - Disallowances/Charges 215,062 -
Due from Non-Government Organizations/People's
Organizations 1,249,937 92,952
Other Receivables 92,719 381,466
15,889,344 15,095,147
Inventories
Accountable Forms, Plates and Stickers 584,301 746,959
584,301 746,959
Prepayments and Deferred Charges
Advances to Contractors 37,748 19,326,105
37,748 19,326,105
Total Current Assets 369,066,827 411,512,700
LIABILITIES
Current Liabilities
Financial Liability
Accounts Payable 49,794,238 43,896,545
Loans Payable - Domestic 239,605,577 217,839,505
289,399,815 261,736,054
Inter-Agency Payables
Due to BIR - 926,300
Due to GSIS - 1,132,410
Due to PAG-IBIG - 128,251
Due to PHILHEALTH - 50,096
Due to Other NGAs 910,032 910,032
Due to Other GOCCs 287,074 287,074
Due to LGUs 2,130,498 1,714,511
3,327,604 5,148,674
Intra-Agency Payables
Due to Other Funds 37,515 615,915
37,515 615,915
Trust Liabilities
Guaranty/Security Deposits Payable 2,298,485 11,068,706
2,298,485 11,068,706
Deferred Credits/Unearned Income
Other Deferred Credits 1,833,821 572,548
1,833,821 572,548
Total Current Liabilities 296,897,240 279,141,896
Non-Current Liabilities
Financial Liabilities
Other Payables
Other Payables 60,557,382 44,782,374
Total Non-Current Liabilities 60,557,382 44,780,374
TOTAL LIABILITIES
NET ASSETS/EQUITY
Government Equity 1,072,291,671 612,637,662
Prior Period Adjustments (2,076,181) 87,224,700
Net Income 99,886,780 126,438,290
1,170,102,270 826,300,652
2018 2017
Revenue
Tax Revenue 6,040,838 4,511,043
Share from Internal Revenue Collections 461,690,759 430,382,037
Service and Business Income 20,474,352 26,143,165
Other Income 8,531,147 5,714,651
Total Revenue 496,737,096 466,750,897
2018 2017
Balance at January 1, 2018 826,300,652 612,637,662
Add (Deduct)
Change in Accounting Policy - -
Prior Period Errors 31,553,856 87,224,700
Restated Balance 857,854,508 699,862,362
Add (Deduct) Changes in net assets/equity during the year
Surplus (Deficit) for the period 99,886,780 126,438,290
Adjustment of net revenue recognized directly in net assets/equity 212,360,982 -
2018 2017
Cash Flows from Operating Activities
Cash Inflows
Collection from taxpayers 11,064,409 4,511,043
Share from Internal Revenue Allotment 461,690,759 430,382,037
Receipts from business/service income 10,999,167 26,143,165
Interest Income - 5,714,651
Other Receipts 25,510,030 -
Adjustments (60,040,937)
Total Cash Inflows 449,223,428 466,750,897
Cash Outflows
Payment of expenses 40,177,652 -
Payments to suppliers and creditors 70,844,164 61,821,030
Payments to employees 195,121,013 136,517,906
Interest Expense 5,588,694 5,172,229
Other Expenses 39,944,630 -
Adjustments 87,928 -
Total Cash Outflows 351,764,081 203,511,165
Net Cash Flows from Operating Activities 97,459,347 263,239,732
Cash Flows from Investing Activities
Cash Inflows
Collection of Principal on loans to other entities (22,599,706) 141,650,722
Total Cash Inflows (22,599,706) 141,650,722
Cash Outflows
Purchase/Construction of Investment Property (415,895) 747,218
Purchase/Construction of Property, Plant and Equipment 187,179,052 (215,339,724)
Total Cash Outflows 186,763,157 (214,592,506)
Net Cash Flows from Investing Activities (209,362,863) (72,940,784)
Cash Outflows
Payment of loan amortization 13,853,469 -
Total Cash Outflows 13,853,469 -
Net Cash Flows from Financing Activities 24,265,256 -
Total Cash Provided by Operating, Investing and
Financing Activities (23,789,054) 190,297,948
Add: Cash at the Beginning of the year 376,197,579 185,899,631
Cash Balance at the End of the Year 352,408,525 376,197,579
Appendix 2-A
Receivables
Due from National Government Agencies 2,834,980 1,820,275
Due from Local Government Units 181,366 95,451
3,016,346 1,915,726
Prepayments and Deferred Charges
Other Prepayments 2,037 2,037
2,037 2,037
Total Current Assets 8,250,357 5,421,777
NET ASSETS/EQUITY
Government Equity 7,909,253 5,873,722
Prior Period Adjustments (1,750,453) (1,119,407)
Net Income 4,545,303 3,154,937
10,704,103 7,909,253
TOTAL LIABILITIES AND NET ASSETS/EQUITY 10,885,768 8,082,300
Appendix 2-B
2018 2017
Revenue
Tax Revenue 4,600,731 3,208,800
Service and Business Income 4,577 10,028
Total Revenue 4,605,308 3,218,828
2018 2017
Balance at January 1, 2018 7,909,253 5,873,722
Add (Deduct)
Change in Accounting Policy - -
Prior Period Errors 1,750,453 (119,407)
Restated Balance 6,158,800 4,754,315
Add (Deduct) Changes in net assets/equity during the year
Surplus (Deficit) for the period 4,545,303 3,154,939
Balance at December 31, 2017 10,704,103 7,909,253
Appendix 2-D
2018 2017
Cash Flows from Operating Activities
Cash Inflows
Collection from taxpayers 3,542,419 3,208,800
Interest Income 2,013 10,028
Other Receipts 891,926 -
Adjustments 2,564 -
Total Cash Inflows 4,438,922 3,218,828
Cash Outflows
Payments to suppliers and creditors 626,682 1,559,329
Other Expenses 2,084,280 -
Total Cash Outflows 2,710,962 1,559,329
Net Cash Flows from Operating Activities 1,727,960 1,659,499
Cash Flows from Investing Activities
Net Cash Flows from Investing Activities - -
Cash Flows from Financing Activities
Net Cash Flows from Financing Activities - -
Total Cash Provided by Operating, Investing and
Financing Activities 1,727,960 1,659,499
Add: Cash at the Beginning of the year 3,504,014 1,844,515
Cash Balance at the End of the Year 5,231,974 3,504,014
Appendix 3-A
2018 2017
Current Assets
Cash and Cash Equivalents
Cash Local Treasury 112,154 272,738
Petty Cash 7,000 7,000
Cash in Bank – Local Currency, Current Account 132,427,296 144,538,265
Cash in Bank – Local Currency, Time Deposits 14,500,000 14,500,000
147,046,450 159,318,004
Investments
Guaranty Deposits 26,000 26,000
26,000 26,000
Receivables
Loans Receivable – Others 21,536,084 21,545,321
Due from National Government Agencies 78,515 78,515
Due from Government-Owned and/or Controlled
Corporations 200,000 200,000
Due from Local Government Units 564,219 564,219
Due from Other Funds 141,980 646,885
Advances for Officers and Employees 171,982 198,510
Due from Non-Government Organizations/People's
Organizations 7,066,300 7,066,300
Other Receivables 3,267 32,667
Receivables-Disallowances/Charges 3,100 73,000
29,765,446 30,376,016
Inventories
Merchandise Inventory - 372,695
- 372,695
LIABILITIES
Current Liabilities
Financial Liability
Accounts Payable 959,457 908,504
Due to Officers and Employees 7,600 7,600
967,057 916,104
Inter-Agency Payables
Due to BIR - 278,549
Due to Other NGAs 124,918,637 244,805,407
Due to Other GOCCs 28,498 28,498
Due to LGUs 23,667,235 23,681,217
148,614,370 268,793,671
Intra-Agency Payables
Due to Other Funds 3,247,459 1,303,356
3,247,459 1,303,356
Trust Liabilities
Trust Liabilities Disaster Risk Reduction and Management
Fund 16,858,942 19,446,000
Guaranty/Security Deposits Payable 9,652,465 6,777,784
26,511,407 26,223,784
Total Current Liabilities 179,340,294 297,236,915
Non-Current Liabilities
Other Payables
Other Payables 9,335,460 6,695,975
9,335,460 6,695,975
2018 2017
Revenue
Grants and Donations - 181,981,002
Total Revenue - 181,981,002
2018 2017
Cash Flows from Operating Activities
Cash Inflows
Other Receipts 209,287,506 186,995,418
Adjustments 1,237,190 -
Total Cash Inflows 210,524,696 186,995,418
Cash Outflows
Payment of expenses 18,289,944 -
Payments to suppliers and creditors 46,759,391 101,985,139
Payments to employees 32,978,724 1,177,101
Other Expenses 25,566,503 -
Total Cash Outflows 123,594,562 103,162,240
Net Cash Flows from Operating Activities 86,930,134 83,833,178
Cash Flows from Investing Activities
Cash Outflows
Purchase/Construction of Property, Plant and Equipment 98,511,687 52,446,988
Grant of Loans 690,000 -
Total Cash Outflows 99,201,687 52,446,988
Net Cash Flows from Investing Activities (99,201,687) (52,446,988)
Group
10303010-01-001-001 NATIONAL AGENCIES
Name :
Code Description Amo
10303010-01-001-001-TEMP0985 CAMIGUIN-BSP 226
10303010-01-001-001-TEMP1034 DOT-DEPT. OF TOURISM REGION X 350
10303010-01-001-001-TEMP0624 DTI-CAMIGUIN 30
10303010-01-001-001-TEMP0265 NORTHERN MINDANAO TOURISM COUNCIL 200
Total 806
Group
10303010-01-001-003 BARANGAY
Name :
10303010-01-001-003-TEMP0083 BT-ANITO, MAMBAJAO 4
Total 4
Group
10303010-01-001-004 SCHOOLS
Name :
10303010-01-001-004-TEMP1035 GUINSILIBAN CENTRAL SCHOOL-IGNACIO DANCALAN 5
10303010-01-001-004-TEMP1036 GUINSILIBAN NATL. HIGH SCHOOL-EVELYN PACTURAN 20
10303010-01-001-004-TEMP0813 MAHINOG NATIONAL HIGH SCHOOL 30
10303010-01-001-004-TEMP1038 TUPSAN NAT'L HIGH SCHOOL 1
10303010-01-001-004-TEMP1039 YUMBING ELEMENTARY SCHOOL 22
10303010-01-001-004-TEMP1040 YUMBING NATIONAL HIGH SCHOOL 15
Total 93
Group
10303010-01-001-005 OTHERS
Name :
10303010-01-001-005-TEMP1037 SRINSP MANUEL V. UAYAN, BFD 10
Total 10
Group
10303010-01-002 VARIOUS NGAS
Name :
1ST NBI NORTHEASTERN MINDANAO REGIONAL OFFICE-
10303010-01-002-TEMP1041 10
X(NEMRO)
10303010-01-002-TEMP1042 CHERRY FE ESTANILLA 20
10303010-01-002-TEMP1043 DEPARTMENT OF EDUCATION 27
10303010-01-002-TEMP0951 DSWD-X 200
10303010-01-002-TEMP1044 JOHN C. CAGAS 70
10303010-01-002-TEMP1045 MARIFE S. MABALE 18
10303010-01-002-TEMP1046 MICHAEL MELCHOR S. PONFERRADA-BFP 25
10303010-01-002-TEMP1047 REYNAN CAGAS 11
10303010-01-002-TEMP1048 RTC-PACE 10
Total 391
Group
10303010-01-003 ACCOUNTABLE FORMS
Name :
10303010-01-003-TEMP0332 BUREAU OF INTERNAL REVENUE 91
10303010-01-003-TEMP0962 NATIONAL PRINTING OFFICE 707
Total 798
Group
10303010-01-004 PLEASES,INC-CAMIGUIN
Name :
10303010-01-004-TEMP1049 PERSONNEL ENHANCEMENT PROGRAM 55
Total 55
Group
10303010-01-005 COMELEC
Name :
10303010-01-005-TEMP1050 ATTY. ALELI A. DAYO-RAMIREZ 20
Total 20
Grand Total 2,178
Appendix 4-B
110
Appendix 4-C
111
10303030-01-002-TEMP1402 LGU-MAMBAJAO (SK) 36,000.00 recorded June, July 2009
10303030-01-002-TEMP0786 LGU-MAMBAJAO DIESEL 1,364,211.12
10303030-01-002-TEMP1527 LGU-MAMBAJAO RPT (59,767.44)
10303030-01-002-TEMP1372 LGU-SAGAY 247,755.80
10303030-01-002-TEMP0256 MTO-CATARMAN 7,875.29
Total 2,216,425.09
112
Appendix 4-D
Group Name :
139-Rodeo 20th Masbate National Rodeo Finals ( Alex Jaya, Catarman) 10,000.00
139-bug-ong AURELEFE L. MACAS, Bug-ong - aid to fiesta sports activities 2013 8,000.00
139-TES Aurelia Moradas - 1st Grand Alumni Homecoming of Tupsan Elem. School 5,500.00
139-Panghiawan Brgy. Capt. PANGHIAWAN, Cat. (Generosito Bentong, Sr.) 50,000.00
139-Tagdo Brgy. Treas.- Tagdo for Repair Day Care Center 15,500.00
139-Pandan'14 Brgy. Treas.-Pandan financial assistance for various cultural activities 2014 10,000.00
139-Mainit Brgy. treasurer Mainit, Catarman 7,000.00
139-01 BSP Camiguin 102,737.00
139-BSPbldg. BSP Treasurer aid for construction of BSP building 70,000.00
139-Balintunga BT - financial assistance for Demo Farm at Balintunga, Mahinog 12,000.00
139-Lawigan BT-Lawigan, Catarman for sports & cultural activities of the brgy 5,000.00
139-comelec COMELIC Employees Association (CCEA) 30,000.00
139-Vianney Const'n. of St. John Marie Vianney sub-parish church 7,500.00
139-ELCO ELCO INTERNATIONAL CORP. (printing Camiguin Map) 35,000.00
ELDA PACTO - Tupsan aid to Tupsan National High School 46th Foundation
139-Tupsan 3,100.00
Anniversay on July 26, 2013
ERLINDA ACERO financial assistance to Orgn. of Bonbon Natl. Hi-Sch.
139-BNHS 10,000.00
drum & lyre corps.
Evelyn B. Pacturan aid to Guin. Nal. Hi-Sch. Parent Teacher Assn. for
139-GNHSPTA 5,000.00
Foundation Day Celebration
139-Itum FELY SUMALPONG- Itum as aid for chapel improvement 8,000.00
139-HRDOT Franquilino Linda - Human Right Desk Operation Training/Workshop 5,000.00
GAREE BACSIN of Sagay Central School for financial assistance for School
139-GAREE 10,000.00
1st grand alumni homecoming
139-Gerry Gerry M. Cabalang 50,000.00
139-PNP-Crame Guillermo Galolo Cimacio 10,000.00
139- IRA BERMUDO - Anito aid to Race director of 3rd Gov.JJ Lanzones Festival
12,000.00
FestivalRun2013 run for 34th Camiguin Lanzo
Jobert Salingay, Tupsan Elem. Sch. financial assistance for 2013 Youth for
139-YES-O 10,000.00
Environment School Org'n.
JOE RYAN MANALO - financial assistance for 43rd Military Intelligence
139-4THMIB 10,000.00
Company for year end party
JOVITA ABUCAYON-Pob. Mahinog as aid for MNHS II Nutrition month
139-jovita 3,000.00
celebration on July 19, 2013
LEAGUE OF THE PHILS. for financial assistance for production cost of LPP
139-LPP 168,000.00
Calendar
139-Senior LEONISA LUMAYAG Butay, Guinsiliban - Senior Citizen Organization 3,000.00
139- Ma. Luisa de la Fuente Romualdo as aid to Committee on Mutya sa
4,000.00
MayorRomualdo Buahanan Beauty Seach of Mambajao
139- MA. LUISA DE LA FUENTE ROMUALDO as aid to Committee on Mutya sa
38,000.00
MayorMambajao buahanan Beauty Search of LF'13 of M
139-Kalipi Maria Carus - Kalipi Federation of Pob. Mambajao 1,500.00
113
139-MCTC- Mary B. Labadan of MCTC Mahinog as financial assistance for 25th Silver
10,000.00
Mahinog Anniversary & Gen. Assembly
139-IRA Municipal Tourism Council of Balbagon 5,000.00
139-tourism Municipal Tourism Council of Mahinog 31,000.00
NESTOR E. TONGOL-Alangilan Sagay aid to Vice Mayor's League
139-tongol 15,000.00
Camiguin Chapter for several activities
139-Coast Phil. Coast Guard Auxiliary 1007.3 Div. of Camiguin on Holy Week 2013 39,000.00
Philippine League of Secretaries to the Sanguninn Inc. (Grace Nieves B.
139-Pleases 55,000.00
Veloso)
139- PNP SPO1 Leny Y. Bana for volleyball tournament on Annual Womens
10,000.00
womensmonth Month celebration
Ramel C. Bana, Mambajao aid for Training of trainers for Police Detective
139-pnpcrame 5,000.00
Course at Camp Crame QC
139-Bohol Raul Bohol-Agoho Rural Waterworks assn. 20,000.00
139-camiguintour Rene Bajuyo - Camiguin tourism association 20,000.00
139-response Response 143 Panaad 2013 (Ramil Bayucot) 3,500.00
139-Rizalie Rizalie Navarro as aid to HPTA Guin. Central School renovation 2,000.00
139-SK-TULI SKPF of Camiguin for Operation Tuli 2013 66,000.00
SOSPESLAO U. TABUAN - Binaliwan, Mahinog aid for Banana Planting
139-MAO 38,500.00
Campaign
STALIN BAGUIO for financial assistance for First Worshipful Master Patrick
139-NMPSA 10,000.00
Yamba Cup at NMPSA
Summer Camp Training & Advance ROTC Academic Phase Training at
139-ROTC 10,000.00
CDO ( Lee Marc Paga)
139- TERESITA CHAN-Agoho as aid for Mambajao Fiesta night presentation on
30,000.00
LIGANGBRGY. Sept. 3, 2013
139-United United People's Organization, Maac Guinsiliban 30,000.00
139-football VER GAYRAMON - Umycco, Mambajao for Camiguin Football Club for CDO 10,000.00
139-Football- VER GAYRAMON- Upper Poblacion, Mambajao for financial assistance to
11,100.00
LF'13 Football League of 34th Camiguin
139-cayatDIDM WILFREDO CAYAT aid for Seminar Workshops on e-Projects DIDM 20,000.00
WILFREDO PALACI CAYAT for financial assistance for Glock Challenge
139-Cayat-Glock 20,000.00
Competition at Camaman-an Firing
139-gabutan Willy Gabutan 35,000.00
139-financial-
Joesa S. Silagan 15,000.00
silagan
139-SKPF-001 SK - Guinsiliban 20,000.00
Grand Total 1,249,937.00
114
Appendix 5-A
Group
Name :
20401040-01-001 GUARANTY DEPOSITS PAYABLE
Group
20401040-01-002 PERFORMANCE/BIDDERS/BAIL BONDS PAYABLE
Name :
115
Appendix 5-B
Group
Name :
20401040-01-001 GUARANTY DEPOSITS PAYABLE
Group
Name :
20401040-01-002 PERFORMANCE/BIDDERS/BAIL BONDS PAYABLE
116
20401040-01-002-TEMP0350 KINGS AUTO SUPPLY 100.00
20401040-01-002-TEMP0346 M & E TRADELINES 5,000.00
20401040-01-002-TEMP0249 MARBEN ENTERPRISES 7,200.00
20401040-01-002-TEMP0344 MARSMAN & CO. 2,555.30
20401040-01-002-922-305-658 MBC GAS & SERVICE STATION 2,579.93
20401040-01-002-000-280-681- MEDICAL CENTER TRADING
1,645.00
000 CORPORATION
20401040-01-002-004-723-572-
MEDICOTEK INC., 3,700.00
005
20401040-01-002-TEMP0342 METRO DRUG 4,804.59
MITSUBISHI CDO/FAST AUTOWORLD
20401040-01-002-TEMP0255 6,000.00
PHILS.
20401040-01-002-TEMP0353 MR. CONCRETE BUILDERS 2,123.34
20401040-01-002-TEMP0351 MSP BUILDERS 100.00
20401040-01-002-000-058-64A MULTIMED INDUSTRIES, INC. 1,242.00
20401040-01-002-004-451-545-
NEWLIFE MEDICAL DISTRIBUTOR INC. 500.00
000
20401040-01-002-740-103-793-
PETRON FILLING STATION (4,422.00)
105
20401040-01-002-002-304-673-
PHIL. PHARMAWEALTH, INC. 30,544.63
001
20401040-01-002-271-826-392-
RDT ENTERPRISES 10,483.10
000VAT
20401040-01-002-TEMP0354 RECTAN WOOD PRODUCTS 1,000.00
20401040-01-002-392-245-000 RG MEDITRON 5,400.00
20401040-01-002-074-103-793-
SHEEN-SHEEN CONSTRUCTION 37,245.00
075NV
20401040-01-002-006-427-931 SL LABLINE CO. 1,558.10
20401040-01-002-TEMP0946 TEE ENTERPRISES 262,341.43
20401040-01-002-TEMP1420 THE PHAMEDIC CORPORATION 591,250.00
20401040-01-002-TEMP0359 TRADERS 3,100.00
20401040-01-002-TEMP0352 TRANSCRAFT TRANSPORT 20,500.00
20401040-01-002-000-063-471-
UNITED LABORATORIES INC. 3,300.00
000
20401040-01-002-158-687-663 VIMIGO TRADING 8,237.00
Total 1,379,323.11
Grand Total 7,830,734.05
117